09/01/2017 BBC Business Live


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09/01/2017

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This is Business Live from BBC News with Jamie Robertson

:00:00.:00:12.

This is Business Live from BBC News with Jamie Robertson

:00:13.:00:15.

Fiat Chrysler says it will invest a billion dollars

:00:16.:00:18.

in the United States as the Detroit Motor

:00:19.:00:20.

Live from London, that's our top story on Monday 9th, January.

:00:21.:00:39.

The Detroit Motor Show is underway, and the world's car-makers

:00:40.:00:42.

are looking to try to steer the way ahead, amid big changes

:00:43.:00:45.

Plus, we look back at the birth of a revolutionary product -

:00:46.:00:50.

it's ten years since the launch of the iPhone.

:00:51.:00:58.

The markets. The markets in the UK are starting up and the markets in

:00:59.:01:07.

Asia depressed, not a huge amount of movement.

:01:08.:01:08.

And we'll be getting the inside track on how

:01:09.:01:10.

crowd-funding is changing the way that solar energy projects

:01:11.:01:13.

It is ten years on from the launch of the iPhone,

:01:14.:01:23.

we want to know what you think will be the next game-changer?

:01:24.:01:25.

Let us know - just use the hashtag #BBCBizLive.

:01:26.:01:36.

Over the next few days, the world's car makers will be

:01:37.:01:41.

taking the wraps off their latest products at the Detroit Motor show.

:01:42.:01:45.

The car seems more popular than ever - an estimated 75 million

:01:46.:01:49.

were sold last year, but 2017 is already beginning

:01:50.:01:53.

to look like a big year of change for the industry.

:01:54.:01:58.

Not least because more of them are looking to invest

:01:59.:02:00.

In the last few hours Fiat Chrysler has said it will put $1 billion

:02:01.:02:08.

into two US factories, which will create 2000

:02:09.:02:10.

The incoming President Donald Trump has been piling pressure

:02:11.:02:13.

on carmakers to make the vehicles they sell in the US in the US.

:02:14.:02:18.

Meanwhile the traditional business model of the industry is changing

:02:19.:02:20.

with the disruption coming from the technology firms.

:02:21.:02:24.

Google, Apple and Uber are pushing innovations like driverless

:02:25.:02:27.

And that will also mean more electric cars.

:02:28.:02:34.

Global warming and pollution are just two of the reasons

:02:35.:02:38.

many of the established players are focusing their

:02:39.:02:40.

In particular there are concerns about diesel engines

:02:41.:02:43.

with cities including Paris, Mexico City, Madrid and Athens

:02:44.:02:48.

all planning to introduce some kind of ban over the next decade

:02:49.:02:51.

And then there is the prospect of a free trade era slowing down -

:02:52.:02:58.

that's why Fiat Chrysler is investing in the US,

:02:59.:03:02.

with Donald Trump threatening several leading manufacturers

:03:03.:03:04.

with tariffs for building cars in Mexico.

:03:05.:03:14.

Thank you. Talking through the key issues facing the motor industry.

:03:15.:03:24.

Earlier I spoke to the boss of Rolls-Royce. Talking through some of

:03:25.:03:32.

the issues which is interesting because Rolls-Royce has not launched

:03:33.:03:37.

itself in a major way yet into the electric car industry and it is

:03:38.:03:42.

something I grilled him about, but when it came to other issues, as

:03:43.:03:46.

well, we talked about the situation with regards to the car industry in

:03:47.:03:52.

general and where things are headed. Hopefully we will get the view of

:03:53.:04:04.

Karel Williams. At first, another story that was big in business. It

:04:05.:04:13.

was the issue with regards to the US, the President-elect, Donald

:04:14.:04:19.

Trump, moving to push US car manufacturing, stopping them

:04:20.:04:22.

basically moving manufacturer to Mexico or the decreasing

:04:23.:04:27.

manufacturing in Mexico and back into the US. We got an expert view

:04:28.:04:35.

on that. It is plus 6% worldwide what we have achieved, a good year,

:04:36.:04:39.

in the light of considerable events in markets worldwide so 6% is great,

:04:40.:04:48.

over 4000 cars, a great achievement. We will let you get away with that

:04:49.:04:51.

but you solve most of your cars in the United States. The biggest

:04:52.:04:59.

market. After that you saw a 25% rise in sales in the UK. The UK has

:05:00.:05:04.

been a good market for us last year. Plus 25%. The car market in total

:05:05.:05:09.

was strong. Why was the U:K.'s strong in 2016 for you? You see high

:05:10.:05:16.

net worth individuals in the UK and they are our target groups. The

:05:17.:05:22.

economic climate was not bad in this way and for that reason we have seen

:05:23.:05:27.

good business. When it comes to the industry and changes we have talked

:05:28.:05:33.

about, the Donald Trump effect, technology, the likes of Google and

:05:34.:05:37.

Apple getting involved. Where do you see yourselves in the future? Some

:05:38.:05:42.

argue you have not necessarily moved with the times as quickly, for

:05:43.:05:47.

example, electric, you were slow to get a head-on. We are in a different

:05:48.:05:53.

segment, we are not a traditional automotive recess. We are a luxury

:05:54.:06:02.

business. Our clients do not need a Rolls-Royce to go from a to B. They

:06:03.:06:06.

have several cars. They will not accept compromises on charging

:06:07.:06:14.

times, stuff like that. More people want environmentally friendly

:06:15.:06:19.

vehicles that will get them there may be by plugging in as opposed to

:06:20.:06:27.

using old fuel. We presented last year the vision car, which is full

:06:28.:06:33.

autonomous driving, fully electric and that is how we see Rolls-Royce.

:06:34.:06:38.

Where will we be able to drive one of those? The next ten years,

:06:39.:06:43.

definitely. He was that? You got it wrong stop I didn't get it wrong.

:06:44.:06:50.

That was the boss of Rolls-Royce. We know who he is. I have interviewed

:06:51.:06:55.

him many times. However, I was told we would run somebody else we spoke

:06:56.:07:01.

to earlier. We have spoken to a lot of people about the Detroit motor

:07:02.:07:02.

show. Let's move on. Two senior Samsung executives have

:07:03.:07:06.

been questioned as part of the corruption probe surrounding

:07:07.:07:09.

South Korea's impeached It's reported that they're

:07:10.:07:11.

being treated as witnesses. The electronics giant is accused

:07:12.:07:17.

of giving large donations to non-profit foundations operated

:07:18.:07:21.

by a close confidante of Ms Park, allegedly in exchange for political

:07:22.:07:24.

support for a controversial merger. US authorities have arrested

:07:25.:07:26.

a Volkswagen executive who faces charges of conspiracy to defraud -

:07:27.:07:35.

this according to Oliver Schmidt led

:07:36.:07:38.

Volkswagen's regulatory The report suggests he was arrested

:07:39.:07:41.

on Saturday by FBI officials. If confirmed, Mr Schmidt

:07:42.:07:48.

could become the most senior Volkswagen employee to face criminal

:07:49.:07:52.

investigations relating Venezuela's president,

:07:53.:07:57.

Nicolas Maduro, has announced a 50% It's the fifth increase in the last

:07:58.:08:01.

year and is supposed to help Venezuelans,

:08:02.:08:06.

who are struggling to cope with hyper-inflation

:08:07.:08:08.

which is estimated to be around The opposition says Mr Maduro

:08:09.:08:10.

is responsible for an economic crisis which has been engulfing

:08:11.:08:15.

the oil rich country We will talk about cars. We have

:08:16.:08:17.

managed to establish a link. Karel Williams is a professor

:08:18.:08:32.

at Alliance Manchester This is the guest we intended to

:08:33.:08:41.

speak to at the beginning of the programme. Thanks for joining us. We

:08:42.:08:47.

have mentioned the challenges facing the car industry. From your point of

:08:48.:08:52.

view what is the big issue? There are three big issues. First, free

:08:53.:08:56.

trade with Mexico after President Trump. Secondly, the mobility

:08:57.:09:03.

revolution, autonomous cars, and third, diesel cake. If you put them

:09:04.:09:09.

together it is a perfect storm for the motor industry. Trade, of all

:09:10.:09:15.

the things we buy, the car is possibly the most complex in terms

:09:16.:09:19.

of the way it is put together. If you have a hurricane in Thailand it

:09:20.:09:24.

can disrupt a production line in Dagenham. If you have a more

:09:25.:09:29.

protectionist world, Mr Trump perhaps in the US, and other regimes

:09:30.:09:33.

around the world, what happens? It is an interesting question. A formal

:09:34.:09:39.

public position of the industry is tell us the rules and we will adopt.

:09:40.:09:47.

-- adapt. If we look at it more broadly there is an important issue

:09:48.:09:51.

that an industry like the American assembly industry is heavily

:09:52.:09:54.

dependent on cheap imported components from Mexico. 40% of

:09:55.:09:59.

components in US assemble cars come from Mexico. What the industry will

:10:00.:10:05.

hope is President Trump makes noises about assembly but does not disrupt

:10:06.:10:10.

the supply chain arrangements. What if he does? He seems to be a man

:10:11.:10:16.

with a mission. It is an interesting question, the whole thing about

:10:17.:10:19.

President Trump is there is ambiguity. He is between his

:10:20.:10:26.

midwest, Westervelt voters and his Cabinet of billionaires and exactly

:10:27.:10:30.

how he pitches it I do not know. Assembly in Mexico will be frowned

:10:31.:10:39.

upon -- west belt. A reordering of the supply chain, I rather doubt.

:10:40.:10:41.

Thanks. China's ruling communist party has

:10:42.:10:44.

introduced tougher rules for it's corruption investigators

:10:45.:10:47.

after anti-corruption staff were put Steven McDonald is in Beijing. Tell

:10:48.:11:05.

us more. China has half a million anti-corruption investigators

:11:06.:11:09.

answering the call from the president to go after those who are

:11:10.:11:14.

seen to have behaved corruptly within the Communist Party. Now, to

:11:15.:11:18.

some extent, the spotlight is turned on them with new rules. How they

:11:19.:11:23.

investigate people, how they conduct surveillance. And that is because

:11:24.:11:31.

7900 of these investigators are said to have been punished in some way,

:11:32.:11:39.

and 17 of them have been investigated for having committed

:11:40.:11:44.

their own corruption. This is about the party trying to shore up public

:11:45.:11:51.

faith in this anti-corruption drive. Thanks. An interesting story. China,

:11:52.:11:57.

it would seem, on its own mission when it comes to clamping down on

:11:58.:12:03.

corruption. It comes in waves. There is always a clamp-down in corruption

:12:04.:12:10.

in China. Every few months. We can talk to Richard Hunter about the

:12:11.:12:14.

markets. Good morning. Nice to see you. We are talking about markets on

:12:15.:12:22.

the rise. The FTSE, near all-time highs. It is about anticipation. The

:12:23.:12:28.

two things we are looking forward to in 2017 of the ramifications of when

:12:29.:12:33.

the President elect becomes president, at the end of next week,

:12:34.:12:38.

and after we have triggered Article 50, to see how the UK economy will

:12:39.:12:42.

be affected, which as we have seen from the data, it has not been so

:12:43.:12:50.

far. There has been an effect in the sense Theresa May, and impacts with

:12:51.:12:58.

what she says on her plans. This is one of the major reasons we saw such

:12:59.:13:05.

a rise from the FTSE 100 last year which is good news for the market.

:13:06.:13:13.

Up to 85% of earnings for FTSE 100 companies come from overseas are the

:13:14.:13:17.

weaker pound turbochargers our own market. The American market is going

:13:18.:13:23.

ahead in anticipation of the boost Donald Trump will give to the

:13:24.:13:29.

economy. It has been contradictory tale. Some are doing well and some

:13:30.:13:32.

having a hard time Christmas was not back good. It was against a soft

:13:33.:13:40.

Christmas last year. There seems to be a chasm opening up between online

:13:41.:13:46.

retailers and physical presence retailers. Clicks and mortar. I see,

:13:47.:13:53.

people who straddle both will stop in terms of figures last week, the

:13:54.:13:59.

outlook was guarded, although they are famous for that and it is

:14:00.:14:03.

important we get a big names coming through this week to get a more

:14:04.:14:06.

balanced picture of whether it was a good Christmas but the UK consumer

:14:07.:14:12.

could start to be trench, depending on the actual outcome of Brexit when

:14:13.:14:17.

it happens. Good to see you. Nice to have

:14:18.:14:21.

someone in the studio. Things do not go wrong! He is coming back later.

:14:22.:14:29.

We will meet a company trying to end energy poverty through the help of

:14:30.:14:39.

crowdfunding. First, in the UK we have lots of news about the banking

:14:40.:14:40.

sector. The Government has sold a further 1%

:14:41.:14:41.

in Lloyds Banking group. Our business editor Simon Jack is in

:14:42.:14:56.

the newsroom. It is not the government which owns the biggest

:14:57.:14:58.

stake at the moment, it is somebody else? It was bound to happen.

:14:59.:15:03.

Because the government has slowly sold off its original 41% stake it

:15:04.:15:11.

got back in 2008 overtime. Although it is a significant milestone, it is

:15:12.:15:16.

no longer the biggest shareholder in Lloyds Bank, which passes to

:15:17.:15:21.

Blackrock, the US financial group. Selling shares slightly below the

:15:22.:15:25.

price they bought in at all those years ago, but they have pretty much

:15:26.:15:31.

broken even and return some 17.5 billion of the original 20 billion

:15:32.:15:36.

put into it. It is a moment to recognise the fact noise bank has

:15:37.:15:41.

done a good job in cleaning up its act and turning itself into quite a

:15:42.:15:46.

boring UK-based retail bank. It was a simpler proposition to fix than

:15:47.:15:51.

RBS, the other bank in which the government owns a massive state.

:15:52.:15:53.

RBS, the contrast is stark. We still own 73% of that and eight

:15:54.:16:01.

years on the bank is still losing money and it is actually looking

:16:02.:16:04.

right down the barrel perhaps as early as this week of another

:16:05.:16:09.

whopping fine, this time from the US Department of Justice over those

:16:10.:16:15.

mis-sold sub-prime mortgages. If we get a $10 billion fine, the bank

:16:16.:16:20.

will think that's a good result. It was a more complicated proposition

:16:21.:16:23.

than Lloyds to fix. It was a global bank. On some measures it was the

:16:24.:16:30.

biggest bank in the world with tentacles just about everywhere.

:16:31.:16:34.

Lloyds is on the right track, RBS, a long time before we see much of that

:16:35.:16:38.

money back that we put in nearly eight years ago. OK, Simon, thank

:16:39.:16:42.

you very much indeed. Simon Jack there, our business editor.

:16:43.:16:47.

There is a lot about that story on our website. Something we haven't

:16:48.:16:51.

mentioned so far, even though we have dedicated quite a bit of the

:16:52.:16:55.

programme to it, it is BMW, they are telling us that they are determined

:16:56.:17:00.

to build their plant in Mexico despite the fact that Ford, Fiat and

:17:01.:17:04.

others have gone back on that decision. BMW ploughing ahead with

:17:05.:17:12.

building a plant in Mexico, contrary to president-elect's, Donald

:17:13.:17:13.

Trump's, favourite policies. Our top story, Fiat Chrysler says it

:17:14.:17:17.

will invest $1 billion in the United States

:17:18.:17:22.

as the Detroit Motor A quick look at how

:17:23.:17:26.

markets are faring. London up. Just a bit. Meaning, you

:17:27.:17:38.

know, it keeps going on and on, doesn't it? This whole record rally

:17:39.:17:43.

as it were. Very close to all-time highs. Not quite there. We have got

:17:44.:17:48.

another 30 or 40 points before we get there.

:17:49.:17:51.

For many of us, a reliable power supply is something

:17:52.:17:53.

We turn on the fridge or the TV and it just works.

:17:54.:17:59.

But for many others it's a very different story,

:18:00.:18:01.

the International Energy Agency says 1.2 billion people around the world

:18:02.:18:04.

One crowd-investment platform hoping to change this is called Trine.

:18:05.:18:15.

It was launched in February and with the help of 500 investors,

:18:16.:18:18.

the business has already funded eight solar energy projects

:18:19.:18:20.

access to electricity but the company says its platform

:18:21.:18:23.

could help millions more around the world.

:18:24.:18:25.

Sam Manaberi is the Founder and CEO of Trine.

:18:26.:18:33.

Nice to see you, Sam. So next month you are a year old. Yes, thank you

:18:34.:18:41.

for having me. Just tell us about why you launched this nearly a year

:18:42.:18:48.

ago. What gave you the idea? It all started with solar and finance

:18:49.:18:53.

because financing of solar takes away the upfront cost, the burden of

:18:54.:18:58.

that. As long as you can sell solar power cheaper than competing fuels,

:18:59.:19:02.

solar will win. Where did you get the idea? You're based in... In

:19:03.:19:08.

Gothenburg. You are talking about solar energy for lots of people in

:19:09.:19:14.

sub-Saharan Africa. If you come from the side of solar financing, you see

:19:15.:19:19.

this problem, 1.2 billion people, that's one in five people that are

:19:20.:19:24.

using Kerr roe sown and diesel and you want to have a solution to that

:19:25.:19:31.

problem and if you want to fund it, crowdfunding. So where are you

:19:32.:19:37.

getting your investors from, are they northern European investors or

:19:38.:19:39.

are they from everywhere? They are from 20 European countries so far.

:19:40.:19:43.

We are live in all the EAA countries, here in the UK, with a

:19:44.:19:48.

licence, yeah. What kind of return are you offering? Somewhere between

:19:49.:19:55.

5% and 7% currently. And the funds are lent on to the entrepreneurs in

:19:56.:20:02.

southern Africa? These are solar entrepreneurs that do the

:20:03.:20:04.

installation and they need working capital to scale their business. But

:20:05.:20:08.

what are you charging them? We charge them somewhere between 10%

:20:09.:20:13.

and 16%. That's a lot. That's a lot. You have to be competitive for us as

:20:14.:20:17.

well and so we are, otherwise they wouldn't use us. Yes, we are in the

:20:18.:20:21.

market place with a competitive rate. You are the financial aspect,

:20:22.:20:25.

you don't provide the panels, you don't fix it and put it up and set

:20:26.:20:28.

it up and connect people to electricity? Exactly. They do that.

:20:29.:20:33.

How do you make sure they are not ripping off their customers in Kenya

:20:34.:20:36.

for example? Right. That's an interesting place to start. These

:20:37.:20:43.

are really, the crowd investors and the solar entrepreneurs, they are

:20:44.:20:46.

the heroes of our business. They have track records. They have done

:20:47.:20:50.

impact. They know how it works. It is not a question about ripping

:20:51.:20:54.

anybody off. But we have to take your word for it, don't we? You can

:20:55.:20:59.

see and follow the projects digitally. You are there. You can

:21:00.:21:04.

fly to the place if you want to. It is not this generic band of

:21:05.:21:08.

products. It is specific and you can follow it almost on a day by day

:21:09.:21:13.

basis. Isn't there a moral problem you have got western investors

:21:14.:21:23.

making 5% to 12% return on the back of entrepreneurs paying interest on

:21:24.:21:26.

their funds? I don't think so at all. I think that business is

:21:27.:21:32.

sustainable and it is proven itself over the test of time. So as long as

:21:33.:21:39.

the market, these are markets where mobile phone charging could cost

:21:40.:21:44.

between 30 and $50 per kilowatt hour, whereas we pay, you know, 20

:21:45.:21:52.

cents in our part of the world. To really compare interest rates to

:21:53.:21:57.

here in Europe or Sweden or London doesn't work. It is a different

:21:58.:22:01.

game. Sam, we are going to have to leave it there which is a shame

:22:02.:22:04.

because there is so much more to talk about. We will keep an eye on

:22:05.:22:08.

how it goes. It's perhaps hard to imagine these

:22:09.:22:13.

days a world without smart phones But today marks an important event

:22:14.:22:16.

in the history of technology with the launch of the original

:22:17.:22:20.

Apple iPhone. It wasn't the first

:22:21.:22:22.

smartphone but it could be Our correspondent Rory Cellan-Jones

:22:23.:22:24.

was at the original launch of the product in San Francisco

:22:25.:22:29.

and here's part of his So here it is, the shiny

:22:30.:22:32.

new iPhone just unveiled here. It can go on the internet,

:22:33.:22:38.

you can do your e-mail, you can play music and video

:22:39.:22:42.

and you can even make phone calls. So why so much excitement

:22:43.:22:45.

about this device? Just who would queue up at 7am

:22:46.:22:47.

on the streets of San Francisco? Apple's devoted fans, that's who,

:22:48.:22:50.

determined to find out One wants to know the latest

:22:51.:22:52.

Mac products as soon Inside, the man who has revived

:22:53.:23:00.

the company he founded was not We're going to make some

:23:01.:23:06.

history together today. After creating the iPod,

:23:07.:23:12.

the must-have gadget of the past decade,

:23:13.:23:13.

Steve Jobs has spent years wondering It's a sleek device controlled

:23:14.:23:16.

by a touch-screen and it is supposed to bring Apple's design

:23:17.:23:23.

and computing skills Good morning.

:23:24.:23:25.

How can I help you? Yes, I would like to order 4,000

:23:26.:23:30.

lattes to go, please. No, just kidding!

:23:31.:23:32.

Wrong number, thank you. You might think it is

:23:33.:23:35.

just another new phone, but the Apple fans were almost

:23:36.:23:37.

hysterical with excitement. Ten years ago that was Steve Jobs

:23:38.:23:54.

the then boss of Apple. Does that bring back memories? Ten years. I

:23:55.:23:59.

have still resisted. You haven't got one? I have got some Apple stuff,

:24:00.:24:06.

but not the Apple phone. Presumably you have got an android device? I

:24:07.:24:12.

do. What is the next big one? The way we're going, it looks like

:24:13.:24:16.

driverless cars could be the thing of the future particularly I'm

:24:17.:24:21.

thinking in terms of freight, you know, a long desert distances rather

:24:22.:24:26.

than urban. Just to illustrate what a game changer this, it is on the

:24:27.:24:38.

front page of Arab News today. Appleholics celebrate as the iPhone

:24:39.:24:48.

turns ten. One individual spent $50,000. He

:24:49.:24:53.

describes himself as an Appleholic! You can do so much else on it. Rory

:24:54.:25:00.

has written a piece on BBC online which is interesting. He says in the

:25:01.:25:04.

past, before this time ten years ago, phones were basically for

:25:05.:25:07.

calling people. They're not, they are hardly that now. Calling and the

:25:08.:25:13.

odd text. Not even a photo. I remember a strategy piece 20 years

:25:14.:25:15.

ago saying it wouldn't be long before you could live your life

:25:16.:25:19.

without moving from your house because the way the internet was

:25:20.:25:22.

moving on. The fact of the matter is, of course, providing that you

:25:23.:25:27.

have got a hand-set with you, there aren't too many things that you

:25:28.:25:32.

can't do without it. Thank you Richard. We have heard

:25:33.:25:37.

from you, of course, which is something we hope to do on Business

:25:38.:25:42.

Live. Luke says the game changer will be the self driving car.

:25:43.:25:51.

Hello. If your weekend was anything like mine, you probably sat looking

:25:52.:26:14.

at the mild face of winter, laden skies, visibility not that great, a

:26:15.:26:19.

bit of rain in the forecast too. Well, we have

:26:20.:26:20.