hello, you are with business slide from bbc news with sally bunged up and then thompson. not the end they we re and then thompson. not the end they were looking for, google‘s parent company sees its shares fall despite a rise in sales. we are live in london, tuesday the 5th of february. advertisers continued to flock to google despite the privacy problems but investors are worried about rising costs. also another big warning on the trade war, a un trade body says it is america raises ta riffs body says it is america raises tariffs on chinese goods there will be massive implications for the global economy. markets in europe up and running, you can see headed higher apart from spain. we will talk you through the winners and losers. and we will talk about taking on the big boys with

high—speed internet considered an essential day six service we will meet the founder of one of the uk's smaller broadband providers about keeping up but the competition. and as google reports a rise in sales we wa nt to as google reports a rise in sales we want to look could you cope without google? the search engine, maps, photos and phones, could you do a google detox? let us know. use the hash tag. a warm welcome. as you send us comments about the google detox let me fill you in on how they doing in terms of money they are making. are earning big spending big, that seems to be the takeaway from the parent company alphabet, even though the internet giant saw a massive jump in sales wall street investors were not happy. disappointment, shares down

396 in happy. disappointment, shares down 3% in after hours trading on concerns about rising costs. looking at the full year revenues 2018 jumping 23%, an enormous figure, look at that figure. advertisers increasing their spending to reach consumers online. that almost $31 billion was pre—tax profit. the ad sales per google dry the rest of the company rising 20%. that is the three months to december. as with facebook, google is at narrowly targeted because it collect so much data on all of us. that has got off the bed into a lot of trouble in europe. it was fined $57 million in france for failing to disclose to users how the data is collected across all the services. it's the largest penalty to date under the eu privacy law known as general data protection regulations. but it

wasn't that that spooked investors it was the bumper profits come with a high price, more spending on things like data centres, cloud engineers and more marketing. thank you.jim engineers and more marketing. thank you. jim edwards, founding editor of the business news website business insider and hejoins the business news website business insider and he joins us the business news website business insider and hejoins us now. let's pick up on the theme that sally ended with, spending, google spending a lot of money and that what —— that is what has dented the figures. the underlying revenue growth was solid, the underlying business is still completely on fire. it's an incredibly healthy company, they delivered an increase in profits. but investors didn't like it and they sent stock down, counterintuitively, it looks as if they are getting —— spending more money to get where they are going, capital expenditure up, they lost money on the non—core stuff, not to

do with search, the experimental stuff like self driving cars. they are working harder to get the results they get under the investors area results they get under the investors are a little worried. working harder to get the same results and spending more i assume, if you look at these figures. yes, capital expenditure -- expenditure went up and research and development went up on that indicates that the court search business has been cranking for nearly 20 years. google eventually will need a new needle moving product on top of that, the revenues are in the region of 140 billion a year, if you want to add revenue to that you will need a business to add billions of dollars a year, it's not easy to find new businesses of that size, the fact they are spending more money is an indicator of how ha rd more money is an indicator of how hard it is to find those businesses. there is a temptation to think they might be saturated but all the things we want from google bidding and it's a similar problem for apple, and all of the tech firms, to come up with a new thing and have

research and development in the pipeline to deliver that for us. research and development in the pipeline to deliver that for usm feels saturated in places like london and new york and los angeles and hong kong. but there are large stretches of africa and asia where most of the population is still not online, nigeria for instance, i was talking to a colleague from lagos last week and he told me nigeria has a population of 190 million people, 40% of whom do not have broadband. from the global position google look at that and they think we still have at that and they think we still have a ways to go. looking to different markets where that growth may come. let's touch on data briefly, we heard from the chief executive talking about the firm doing a lot more to give people control over their data in this year. what would that look like? you might be asked for in terms of permission of you login toa for in terms of permission of you login to a google service to agree to more stuff, you will get more of the pop—up on news that you have to click and make them go away before

you use the service. they tend to make the service is more inconvenient and annoying, one more click to get through, a lot of regulation will be buried in terms and services, the thing you go through and scrawled and look at and click i agree, no one reads them. it's a very minor speed bump on google's roads. ifi said it's a very minor speed bump on google's roads. if i said compliance is nothing else, but at least it looks like good headlines and they are looking to the criticisms levelled at them. big companies like google and apple love regulations because it's harder for google and apple love regulations because it's harderfor smaller competitors to enforce them, it's easy for google to enforce them, they love regulations like this. jim, nice to see you and thanks for explaining everything. let's look at other stories in the news, earnings out, bpb oil giant, annual profits more than doubling. the company reported underlying replacement cost profit of purple $7 billion compared

to 62 billion a year before. bp made 3.2 billion payments that year because of the oil spill incidents. the small german airline germania has filed for bankruptcy and says it will stop flying immediately. it's blamed rising fuel prices and the strong us dollars. the airline carried about 4 million passengers last year. its problems reflect similar struggles for low—cost airlines across europe. canada's larger script or currency exchange says it is unable to access tens of million dollars worth because it's tens of million dollars worth because its founder died without disclosing his passwords. it's not been able to secure crypto urgency deserves, search old cotton died in december at the age of 30, his widow said the laptop on which he carried out the company buzz that business was encrypt it and she did not know the password recovery key. let's

talk about that story a little later and the obligations of that the entire industry. but in the meantime... a leading trade body at the united nations has weighed in on the us—china trade war. an official at the un conference on trade and development has said the implications would be massive for the global economy if the spat escalates. monica miller is watching this story for us from our asia business hub in singapore. monaco, probably an understatement, the indications could be massive it down like that escalates and eve ryo ne down like that escalates and everyone is waiting to see if it is resolved goes the other way. absolutely, this deadline to strike a deal is 23 days away and as many people are anxious, the united nations as you mentioned, the conference of trade and development says the applications for the entire international trading system with the massive but they particularly pointed to the pipeline from many companies at this continues, here in asia, especially east asia,

projecting a contraction of $160 billion, it will be hit the hardest. president trump has said this tactic in particular to make america great again, the un report disagrees, and found the us firms he thinks will get more business will pick up about 6% of the $250 billion in chinese exports subject to us tariffs. the study found european exports will grow by $70 billion. monica, thank you. sorry! sorry! iwas told it was ben andi you. sorry! sorry! iwas told it was ben and i did not listen. let's talk about the markets. most of the markets in asia are shut, lunar new year, happy holidays for those not at work, china, singapore, hong kong close, japan opening today and australia was open, ignore that numberfor today, australia was open, ignore that number for today, hong kong australia was open, ignore that numberfor today, hong kong was closed. panasonic a big loser out

with earnings, the earnings not so bad that the outlook for the year ahead, warning about it and the impact on its business, the us china trade war and panasonic is on us. let's look at europe quickly, bp a big winner, we mentioned the earnings coming in stronger, doubling the previous school year is earnings, that will help the ftse 100 today, shell shares also up. chip suppliers struggling. some warning about the year ahead. in london, some good news on the high street. 100 hmv stores to be saved and sunrise records is giving it a new lease of life. our business correspondent theo liggett has the latest. what are we hearing? you might recall a ten day went into administrationjust might recall a ten day went into administration just after christmas, bad christmas trading period but this came at the culmination of a

long period of decline the company which sells a lot of physical goods like cbd -- dbds which sells a lot of physical goods like cbd —— dbds and cds, but this business is declining because people prefer business is declining because people p refer to business is declining because people prefer to buy online and stream. sunrise records has a history in this, it went from being a very small chain in canada to being canada's largest chain by taking over hmv canada which like the company he was owned by hill call. it's trying the same trick again but why? the business strategy that the owner of sunrise records is trying to put in place is to make a chain of stores act more like a lot of local stores. giving better customer service, catering for a local paste, encouraging people to use final, that kind of thing, a different kind of business model. thank you so much, that's the latest on hmv. tom stevenson has joined

tom stevenson hasjoined us, let's look at the numbers. we are in february january seems like a long time away. thank goodness that is gone. january was an encouraging market for investors. we had a dreadful fourth quarter last year, the markets falling sharply, we had a great bounce injanuary, sometimes happens, especially after the scale of the fort that we had. we are now in limbo, the good january was a reflection of what the federal reserve is doing, reining back its tightening of monetary soap box —— policy but it reflects the good earnings from companies and in a way that was a sugar rush from the donald trump hacks cuts and we are looking forward, expectations for the first quarter of this year are considerably more subdued, in fact people expect earnings to fall year on year in the first quarter. are

you fastening your seat belt, what are you thinking in terms of what your clients should be doing? it's a balance, the markets fell so far in the fourth quarter that they became attractively priced, that was true in the uk but also in the us. while it's bounced back injanuary it's by no means clawed back all the losses from the fourth quarter. it is a balance, yes expectations are probably lower but the valuations are more attractive. lunar new year celebrations start in earnest today across asia and china in particular, the pig is mass of this year, apparently, more kids tuning into pet pig. a great addition success story. indeed. 3 billion people on the move, china virtually comes to a halt for a week. china is a very interesting situation at the moment, com pletely interesting situation at the moment, completely driven by the trade war that's what you didn't mention, one of the really big uncertainties at the moment, we need to see resolution for that for china to

move forward. tom, thank you. you will be back. lots more to come. keeping up with the competition. we'll speak to one of the uk's smaller broadband providers about keeping up with the competition. you're with business live from bbc news. we got this far without mentioning the b word. brexit. theresa may is expected to use a trip to northern ireland today to offer reassurances that the government will find a way to deliver brexit that honours its commitment to avoid a hard border with the republic of ireland. but what does it mean for businesses in northern ireland. steph mcgovern is in a factory in co. down which makes hi—tech bicycle lights. hello from county down, we can see

all the guys here. they make the hardware for a technology we take for granted, everything they make your includes things like hard work that monitors your dog's health to smart lights that will not only light up the road when you ride your bike but collect lots of data as well. it was invented by irene and her husband philip. you are a tech company and you use these guys to make your products. tell us what are the things you're worried about at the things you're worried about at the moment because the tech industry is one that is growing. yes, at sea sense we are an innovative company and we have to access the best skills available, we recruit hardware and software engineers amongst many, to be able to find that pull in northern ireland is already small, i'm concerned if we turn off some of the access into europe, accessing those skills, we already have european staff in the team so i wonder what would happen if we are not able to access them.

funding is an issue, we access the european regional development fund and we're not sure if they will be replicated exactly so the uncertainty is difficult for business right now. on certainty is the word that creeps in every time. thank you so much, irene says this isa thank you so much, irene says this is a business that is growing, the industry doing well, as a whole, the tech industry is growing three times faster than the rest of the economy with something like £184 billion but it's one that is worried about what they are going to do when the lead they are going to do when the lead the european union and the access of skills. that's it from me here in ballynahinch. steph mcgovern out and about gauging how companies are doing in this environment. a quick look at the business life page, that's all the stories we cannot fit your‘re watching business live —

our top story — google's parent company alphabet has reported another big jump in revenues but its shares have fallen over investors concerns about it's rising costs. we asked you the start of the programme whether you could cope without google in your life, so many responses. can i mentionjust one? trevor says google maps, lost with them, lost without them! just one comment. we will talk more about those. use the hash tag and we will discuss them at the end of the programme. the quest for ever faster service and streaming movies and music put increasing pressure on the firms that have wide internet can choose. a recent poll in the uk found around 90% of adults use the internet pretty regularly. it's an industry dominated by the big four,

bt, virgin media, talk talk and sky if you are in the uk. those firms account for around 95% of the market but there are smaller service providers out there and they make a virtue of the smaller size to provide more personal service. 0ne is zen internet founded in watched ale in 1995, one of the few independents still going. if scotla nd independents still going. if scotland hundred and 27,000 business and residential customers around the uk and the company employs 500 people in rochdale and the north—west of england. it has the highest unemployment rate in the uk. let's talk to richard tang, chairman and founder of the company. 0r let's talk to richard tang, chairman and founder of the company. or an breath. it started in a pub, you we re breath. it started in a pub, you were having a drink with your brother. ayes born and bred. i asked my brother down do you think the internet will take off and he said yes. i said do you fancy starting an isp and he said go on, then. but how can one do that? cast your mind back

to 95, nobody used the internet, it was a techie thing, starting and isp was a techie thing, starting and isp was pretty easy, if you thousands pounds, some modems, a wooden shelf to put it on, phone lines. your brother is a bit of a boffin. he is a real brain. he is the one that set it up, the infrastructure. he is an academic and he is currently an academic and he is currently an academic still and he said i will set up the network for you but i have no interest in business. so he left and he left me to grow the business. let's compare what you created in 95 to what you have today. we talked about the demand for streaming, music download, that sort of thing, clearly it's almost an entirely different internet. absolutely, the superfast back in 95 was 28 point date kilobytes per second, compared to what selling today, 12,000... a

second, compared to what selling today, 12,000. .. a lot ofjargon, slow down. what are you talking about? alter fast. the slow down. what are you talking about? alterfast. the ultrafast services we are selling today are 12,000 times faster than the fastest service we were selling 23 years ago. but how do you do, how do you remain in business because you were there in the beginning but the big four have caught up, bt, sky, virgin, the names, big brands, huge pots of money, they've been in business a long time. then, a small player but you are still there and lots of customers, making a lot of money. we are growing and doing really well, in any market there is an opportunity for a niche player and that's what we've been that the majority of our history. i think in any market there is a niche with people who will pay a little bit more with the best service, or personal service. and i think also, the philosophy of business which we

illustrate by the fundamental objectives, happy staff, happy customers, happy suppliers, people first, money second approach, gives us first, money second approach, gives usa first, money second approach, gives us a real good long—term success. first, money second approach, gives us a real good long-term success. we saw some of your 500 staff in rochdale, an area with pretty high unemployment, you are a big employer. all well and good, the fa ct employer. all well and good, the fact that you can put stuff first and you look after your stat but you need to make money and pay them, or the two mutually exclusive? not at all. one of the big problems with the capitalist society we all live in today is that the focus on money, so much focus on money means people, organisations make short—term decisions hampered with us, we are thinking we want long—term, loyal staff and customers, we make the right decisions for the long—term, we have a lot of pressure from shareholders to do otherwise. long—term, i think it's ironically for kisumu and people first gives us

a great formula for long—term financial success. richard briefly, because time is tight, provision in the uk, so much discussion and debate about prop brand —— broadband provision, people in rural areas, that discussion. it's a constant challenge, we are constantly upgrading the network, not a day goes by and the challenge in the uk because of the geographic, is huge. luckily, we are finding faster and faster ways to get data down the old copper wires that be put in the ground 50—60 years ago and that will continue. we are also deploying fibre all the way to people's comes and premises which gives you unlimited download for the future. it's a constant challenge to keep up. richard, really nice to see you, good luck with the dog, thanks for your time. good luck with the dog, thanks for yourtime. —— good luck with the dog, thanks for your time. —— good luck with it all. the amount of businesses that start

with those conversations over a pint! as we told, many market shut today and in the days ahead the lunar new year, in many parts of asia, the tradition of giving out red envelopes is important. they are often full of money but how do you do it? tom is with us in the studio. listening to richard there, talking about the show is historic, ikea changing their business model. what they are looking to do is discussing they are looking to do is discussing the idea of leasing parameters you do not go and buy it and throw it away, the point behind this is trying to make ikea more sustainable, talking about leasing to businesses, which makes a lot of sense, the chair and use it on you might want for sense, the chair and use it on you might wantfora sense, the chair and use it on you might want for a year and you change circumstances, you want a different type of chair, you handed out. the article here is about leasing kitchens which i think makes less

sense because it fitted kitchen, if you have taken a kitchen out and replaced it, what you take out is not worth brain much at all. intriguing to see how they are thinking of doing it with kitchens but the idea of making things more sta ble but the idea of making things more stable —— sustainable by using them again, good idea. could you do a google detox? 9096 of the internet is a waste of time but the 10% you use, you cannot do without. google maps, couldn't do without. i must admit i do rely on maps. there are other providers of maps. annabel says google is god, i thought we establish that tenuous ago. jason says i only use it because it's popular, i couldn't care less. who makes it. another view it says i am using dragonfly a quick search engine, surprisingly easy. see you soon. engine, surprisingly easy. see you soon. goodbye. good morning. a ratherfrosty start

to the date. for many of us rather foggy as well. but the fog lifting and clearing, staying quite cloudy for many of us. some rain moving eastwards. some brighter skies this morning across the east, look towards the atlantic, this big area of low pressure, swirl of cloud gradually moving in. winning some outbreaks of rain this morning across parts of northern ireland, that will spread into western scotland, northwest england and wales and the south—west. ahead of that, cloud increasing after a fairly bright start in the and east. the wind increasing especially around the west as the rain pushes in. temperatures rise today 6—8d in the east, turning increasingly mild in the west, highs of 9—12d. the rain continuing to spread northwards

and south eastwards, heavy rain at times through the night, cloud lingering in the south—east, relatively mild night, temperatures no lower than 2—8d, frost free start to wednesday. some rain across the far south—east of england, pepping up far south—east of england, pepping up as the day goes on, quite cloudy in the south—east corner. show is moving into western scotland and northern ireland, falling snow over higher ground. northern ireland, falling snow over higherground. in northern ireland, falling snow over higher ground. in between largely dry, sunny spells, temperatures around 9—11d. through the night into thursday the rain in the south—east, heavy at times, this weather front moving east bringing snow mainly over at the higher ground in scotla nd over at the higher ground in scotland and through the pennines. into thursday than snow to content that, moving away towards the east, the rain clearing from the south—east, for many on thursday a dry day, quite blustery, showers moving into the west. maximum temperatures down a little bit,

7-10d. that's temperatures down a little bit, 7—10d. that's about the average for this time of year. in the end of the week, this area of low pressure ramping up in the atlantic, pushing its way in, indicative of strong winds by friday and on to the start of the weekend. increasingly windy, the risk of gale force winds for some, without some rain but staying relatively mild. goodbye. you're watching bbc news at 9 with me annita mcveigh — the headlines... four children have died during the night in a house fire in stafford. three other people are injured. we will have the latest on that breaking story in a moment. theresa may will go to northern ireland to try to reassure people she can reach a brexit deal that avoids a hard border with the republic. eight peope died and more than 30 are injured in a fire in a paris apartment block — a woman has been arrested. the hmv chain is saved

from administration — with 1500 people keeping theirjobs — but 27 stores will close. actor liam neeson sparks a race row after saying he once wanted to kill a random black person after someone close to him was raped. ministers warn that harmful online images are so widespread they've become normalised and threaten action against social media firms failing to protect children.