06/01/2016 BBC Business Live


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This is Business Live from BBC News with Ben Thompson and Aaron


Top technology firms unveil their latest gadgets


for our cars, but is it enough to push their profits into top gear?


Live from London, that's our top story on Wednesday, 6th January.


Car manufacturers are also making moves to bring more tech


The latest innovations are being highlighted at the big


Consumer Electronics Show in Las Vegas.


Also in the programme, North Korea says it has successfully


We'll cross live to our Asia business hub to see how


It is day three of the trading year and the volatility continues and we


will find out if the volatility in January is going to set the tone for


the rest of the year. We'll get the inside track


on how public transport is reshaping our cities


in an effort to cut pollution, and boost economic growth cities


are spending record amounts But can they keep up


with soaring demand? As reports suggest Twitter


is about to ditch its 140 character limit, we want to know -


will longer tweets ruin, Boss Jack Dorsey hints that future


tweets could be as long as 10,000 characters, so let us


know, good or bad? But please keep it brief please.


Use the hashtag BBCBizLive. Technology gets smaller


and smaller every year, but the future, apparently


could be much bigger. As the Consumer electronics Show


kicks off in Las Vegas later, it's the car makers that


are stealing the headlines But rather than hand over control


of the new gadgets and gismos to tech companies, car markers


are doing it themselves, In an attempt to link apps


to the car dashboard, Google has developed


the Android Auto whilst Apple But on the eve of the CES opening,


Toyota has decided to snub Instead it plans to use a technology


originally developed by rival Ford Ford has said Google


and Apple's offerings will be available in its 2017


models but it will also Reportedly Peugeot, Honda and Mazda


are all investigating whether they should adopt


the SDL standard or go Martyn Briggs leads the Mobility


team at Frost and Sullivan Good to see you. Aaron running


through the issues there and what, I think, is so important is the way


this divide is opening up. Previously everyone has been


embracing the tech giants and say make your technology make our


industry easier. The car firms are saying, we welcome you, but to a


certain extent. We are not going to give away too much of our technology


to let you come in and steal the lead. Traditionally car companies


have been worried that they will lose the touch point with their


customer, the H MI, the machine interface, they have realised they


are not the dominant players anywhere with regards to consumer


electronics and that's why they are at the CES in Las Vegas this week.


They know you want to use your smartphone in the vehicle and they


need to adapt. Google and Apple have their platforms already. Car firms


are concerned if they prioritise one, you're going to end up with one


smartphone that you have to choose that for the vehicle. Of course,


vehicle manufacturing is a mass market game. They want to provide


services for everyone. What's the slippery slope, I suppose, that


those manufacturers are worried about, at the moment we are talking


about in car entertainment, music systems and navigation systems, but


there will be a time when we are talking about robotic cars and


automatic vehicles and all of that thing and then we are getting into


the meat of a car, the way it works and that's what they are not willing


to hand over? Indeed. There is short-term and long-term issues to


that. The short-term is that I guess, initially they need to make a


lot of partnerships to make this happen. They need to make the right


decisions today and as cars become more autonomous, the kind of


partnerships they are making today to give away data on the vehicle,


they are not sure whether they are safe to use these services in the


vehicle itself and they have got to make sure firstly, it is safe for


the customers and secondly, it is making the long-term business


decisions that are right for the company. Google and Apple are


reported to make their own autonomous vehicle. Can I just jump


in here? Is it reasonable to think in the next few years this is going


to happen? The attitude of us, right, the driver, I mean, we're


happy to get into an aluminium tube or a plane and 80% of the flight is


controlled by computers. We are uneasy about our cars being, you


know, driven not by us! In the short-term, yes. There is so many


uncertainties at the moment regards to regulation and of course, the


consumer acceptance of this, but in the long-term, it is coming and you


know, there is already some semi autonomous features, parking the


vehicles and the most interesting thing that's happened this week is


that GM with their investment in Lift a ride sharing company, a ride


hailing company like Uber means they have said publicly this will lead to


partnerships around autonomous vehicles and it is the first time


they have made an announcement and it is getting a lot of buzz in the


industry. Yes, one we will watch closely. Martyn, thank you.


Some of the other stories making the news.


Activity in China's services sector grew at the slowest pace in 17


months in December, according to new data.


China's services sector has been one of the few bright spots


in the economy over the last year, helping to offset the slump


Changes to Twitter could be on the way.


The site's co-founder and boss has hinted that it may lift


the 140 character limit, to allow much longer tweets.


It's reported the social networking site may now allow users to tweet up


the 140 character limit, to allow much longer tweets.


It's reported the social networking site may now allow users to tweet up


Chinese tech giant Huawei has just posted its latest set of numbers


Strong smartphone sales led to revenue jumping by 70% last year


with sales topping $20 billion worldwide.


The firm said it shipped 108 million phones in 2015,


attributing the growth to strong sales in China and Western Europe.


The company's growth figures come as it launched its latest flagship


We have been asking for your comments on Twitter. We have got a


lot already. It is mixed your view on whether it is good news or bad


news for the social networking site. I want to take you to the Business


Live page. Two stories that caught our attention this morning. Shares


in the UK chip designer has fallen. Apple reported that it might cut


back production of the latest iPhone during the quarter. Firms that


supply parts of it understandably worried. Their shares down this


morning. News from the European Central Bank in an era where we are


talking about the cost of borrowing rising perhaps in America.


Certainly, the Fed Reserve firing the starting gun to raise interest


rates there and speculation about when the UK may follow suit, Europe


keen to point out low interest rates are there to stay until inflation


starts to rise. We had inflation yesterday, the European, pretty much


the same. Pretty flat. US jobs numbers this Friday. That's a key


indicator for any decision. Again, another decision from the US Fed on


whether it will continue to raise rates.


Let's return to one of our breaking stories this morning -


news that North Korea says it has successfully tested a hydrogen bomb


which, if confirmed, would be its fourth nuclear


Mariko Oi is at our Asia Business hub in Singapore.


What impact has this had on the financial markets?


The biggest impact has been on the South Korea market. Not even before,


not even waiting for the official confirmation by the State news


agency in North Korea just after that man-made earthquake was


detected, the South Korea markets started to fall sharply and shares


ended the day in the red. That's despite the authorities reassuring


investors that this would have very limited impact on the markets and


the economy. One sector bucking the trend is the companies making


defence products and their shares have been surging. I should say


though that the markets reacted in a similar manner following previous


nuclear tests by North Korea, but the impact was weak at most. As for


other regional markets, Japan's Nikkei fell after this potential


nuclear test in North Korea. Good on you, we will talk to you soon. I'm


ready to go. I have got a new battery in!


The Nikkei in Tokyo down again, for a third straight session,


as exporters were hit by a strong yen after North Korea said it


In fact all of this compounded by the worries about China's economy


It's all happening - not a great start to


We'll find out shortly if this volatile January will set the tone


Europe keeping its eyes very closely on the China story.


And also Beijing today announcing it will not lift that trading ban


That was supposed to be lifted this Friday,


Let's head over and find out what should be making the business


America's Central Bank raised interest rates for the first time in


nearly a decade. Investors lob looking for clues about the path of


future rate rises. On the jobs front, we will get the ADP national


employment report and it is forecast to reveal US employers added 198,000


jobs in December. This is ahead of the official monthly jobs report


which is due out this Friday and Monsanto releases results. The


agriculture giant is expected to report a 16% drop in sales. Among


the problems, foreign currency swings and falling prices.


Tom Stevenson is Investment Director at Fidelity Worldwide Investments


First week of January and the markets not doing anything exciting.


You have got interesting figures about how this will shape out for


the year. In your crystal ball, looking at what January means, a


dire January, and how it will shape up for the rest of the year. There


is an old adage about January setting the tone for the rest of the


year. So I went back and had a look to see whether it actually worked. I


went back until the start of the FTSE 100 which was 30 years ago now


and in that period, 19 out of 30 times the FTSE 100 has risen in


January and in 15 of those 19 times, it has continued to rise between


February and December. It looks more than just chance and so it is a


guide, but interestingly when it goes the other way, when the market


falls in January, then it is much less clear cut. It is a coin toss as


to whether it works. What will it take to turn around the fortunes? We


are looking at the year and there is not a lot to get excite abouted it,


we are talking about maybe interest rates creeping up in the US, a


slowdown in China, there is nothing for us to get our teeth into, to


think that 2016 is an exciting year for the markets? There is always


stuff to worry about and plainly, there is lots to worry about, we


have got the Middle East and North Korea, that's a problem, but if you


look at the general outlook, if you look at the alarm bells that would


normally ring towards the top end of the market, you know, things of


sentiment, interest rates, earnings growth, most of them are not ringing


at the moment. Yes, I think, you know, we are at the back end of this


bull market. We have been going for six years now. This is a maturing


bull market, but I don't think it is over yet. Briefly, going back to


China. That seems to be the key focus. Beijing announcing today they


will suspend lifting this ban which was supposed to be on Friday.


Beijing is more interested in economic growth than really the


stock market. If Beijing is between a rock and a hard place it has to be


careful as to what it does to help its markets, right? I think they


were probably stung a bit last year. I think they thought we will go into


the stock market, we can prop up the stock market and they are realising,


actually it is more difficult. It doesn't work. So yes, I mean, this


latest announcement suggests that they are still trying to under pin


the market, but I think they will probably back off and concentrate


more on economic growth. OK, Tom, great stuff, thank you. You


know the routine, you will be back, taking a look at some of the papers


with us. Thank you very much. Keeping growth on track as cities


expand, how can they keep up with growing demand


for buses and trains? We'll speak to one expert


about the role public transport You're with Business


Live from BBC News. The decorations are down,


the cards have been recycled and it's time for the retailers


to tell us how Christmas Yesterday, there were disappointing


figures from Next, and this morning Overall sales were up


over 5% in the six weeks to January, with a big rise


in people shopping online. Sir Charlie Mayfield is Chairman


of the John Lewis Partnership. What we are seeing is the way


customers are shopping More sales online, but shops


have a really important A lot of our customers are not


just shopping online, a lot are going to our shops first


to have a look at products Some are going online first and then


going into the shops to buy there. A big strength for us is we have


both of those channels has paid real dividends for us


over this Christmas. Simon Jack has the figures -


how have the markets been reacting? It's privately held, owned by the


employees, so no share price reaction. A pretty good performance


at the department stores with sales up 5%. It also owns Waitrose where


sales were down 1.4%. It sounds bad, but consider food prices are


falling, a 1.4% decline is not bad, especially compared to the


competition. He mentioned getting the clicks and bricks mix right. He


said Black Friday was primarily an online affair. Christmas was a bit


of both. The Christmas clearance sales saw a strong store turnout.


John Lewis look like they have got that mix right.


bid for Argos owner Home Retail has been rejected -


Home Retail Group's shares closed up 41%, while Sainsbury's fell 5%.


Try to take on the online rivals. They want to have a multichannel


offering. Argos, potentially with city centre stores and click and


collect, it offers that choice. The markets were a surprise, Sainsbury's


coming to buy Home Retail Group. Shares up 40%. Home Retail Group


turned the offer down and Sainsbury is now have until February two to


come back with an improved offer. -- until February the 2nd.


You're watching Business Live - our top story - the world's top tech


firms unveil their latest moves to try to integrate their devices


into our cars, as the consumer electronics show gets underway


Full coverage from the team there, and full coverage on the website of


the announcements made there. In many parts of the world,


cities have become real economic They produce 80 per cent


of the world's output - and more than half the planet's


population lives there. It's thought that in ten years' time


80% of the world's middle classes will be living in cities in Africa,


China, India and a handful of other Keeping people moving will be


a major priority if cities So do cities need to invest more


in public transport? It's thought that capital investment


in the sector can spark economic activity worth up to four times


the initial investment. Alain Flausche is Secretary General


of the International Association of Public Transport and he joins me


now from our Brussels bureau. Welcome to the programme. Here's the


challenge. Given that the Paris climate agreement recently, can you


grow public transport systems around the world while keeping within those


agreed emissions targets? Good morning. I think the first thing, as


you know, the national commitment today wouldn't leaders to the -1.5


degrees which is the target. If we want to reach those targets then we


have to develop public transportation. Transport is one of


the big emitters of CO2. Private transport is a large part of this.


Public transport has the advantage of being extremely efficient in


terms of CO2 emissions. The job for the years to come is to convince


governments they should keep investing in public transport and,


to some extent, restrict using private cars in cities. A valid


point, but another challenge, in your job your organisation is to


promote public transport systems around the world. With what we are


reading, 20 years ago 80% of the world's middle classes lived in OECD


nations. In 20 years' time they were believing in China, India, Asia,


Africa and Latin America. Many of those people will want to buy a car.


-- they will be living in. The car is some thing of a status symbol.


But our job is to convince governments that what happened in


Beijing, in Delhi, miserable lives because of the conditions, it's


because they've got too many cars. The only way to make their cities


attractive and liveable is to develop public transport. The


Chinese have understood this. In Beijing and Shanghai they have been


making a new metro line every other year. In India they are still


in India is doing it. In Delhi, I in India is doing it. In Delhi, I


have been there a futile and is, and on one day the level of fine


particles was about ten times the authorised level. The Supreme Court


in India issued a judgment saying to the state of India they had to take


further measures. We are heading more in that direction and we will


over the next few months and years. Just to talk about the capacity


issues. Looking at many developed cities around the world like Paris


and London, they are struggling with larger and growing populations. But


the infrastructure has been in place for decades. How do you deal with


that demand for extra infrastructure and capacity when you are dealing


with age old infrastructure will around an environment that is not


conducive to putting in extra rail lines and bus routes, because cities


are already very congested? I agree it's a challenge. But some well


backed people have said the Western world misses about 1000 billion in


investment in infrastructure. We need to go that way. Looking at the


infrastructure, it looks expensive, in terms of the money, but looking


at the wider economic benefits in investment, you can see it's the


only way to continue keeping growing cities and making them liveable and


wealthy. Looking at the example of Crossrail, for instance, you might


remember the best advocate for Crossrail, the first Crossrail, and


already the second, was the business community. I'm so sorry, we are


running out of time, but we appreciate your input. Thank you for


joining us. But luck with public transport around the world. Tom will


be back with us to talk about the papers. It's all about Twitter in


the business pages. Twitter might soon ditched the 140 character limit


to allow 10,000 character posts. Really? It's a pretty appalling


thought. The beauty of Twitter is that it's short and snappy, it


forces people to attempt to say something witty and sharp. 10,000


characters, as if there wasn't enough information on the Internet,


we will drown in it. So many people get in touch, one viewer says that


the 140 characters is part of the novelty. Who needs another Facebook?


Paul says it's good to be concise, who needs these massively long and


dribbling tweets. Many people pointing to the politicians will


stop brevity is great when politicians treat, and if it's not


140 characters they will take advantage. It was the unique selling


point. Twitter does have a problem though. You only have to look at my


twitter, none of my children are on twitter, but I am. They don't want


to target people like me, they want to get to the younger generation and


are failing to do that. We are told the younger generation wants text


speak, brevity, has a short attention span. So this would fly in


the face of that. You would think so, but the short attention span is


catered for better by Instagram and that's where they are going. Bad


driving and how insurers plan. I had to re-ensure this year, and they


offered cheaper rates if I put a box in my car. The technology involved


in cars, this can be used to monitor what we do. It does sound great, and


these things are presented as a consumer benefit, put the box in


your car and we'll cut the cost of insurance. But the flip side is a


massive intrusion into our privacy. We are giving away huge amounts of


information about how we live our lives. I don't like that. I don't


even like insurers! They are so nasty sometimes. That's it from


business life today and we will have more throughout the day.


Only six days into the month and parts of Scotland have had their


wettest January on record. Clouds gathering out of the


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