:00:00. > :00:12.This is Business Live from the BBC with Sally Bundock and Ben Thompson.
:00:13. > :00:15.Iran's Hasan Rouhani signs billions of dollars worth of contracts
:00:16. > :00:19.in Rome - just weeks after sanctions were lifted.
:00:20. > :00:21.Live from London, that's our top story on Tuesday
:00:22. > :00:41.Rome is just the start of Rouhani's state visit -
:00:42. > :00:48.with European businesses eager to get in on the action -
:00:49. > :00:52.with more deals due to be signed this week.
:00:53. > :01:01.Steep losses on the markets in China and there are falls across Asia
:01:02. > :01:11.as investors worry about the price of oil.
:01:12. > :01:18.Look at the impact that is having in Europe. Heavy losses across the
:01:19. > :01:19.board. We will talk you through the winners and losers.
:01:20. > :01:21.And have you ever considered what goes into making
:01:22. > :01:25.We'll get the inside track on the industry from a firm that
:01:26. > :01:27.designs the hardware used in millions of mobile devices.
:01:28. > :01:30.And as the boss of the Marriott hotel chain says top bosses
:01:31. > :01:32.SHOULDN'T be applauded for getting by on little sleep.
:01:33. > :01:34.He calls it a "misplaced show of toughness".
:01:35. > :01:38.So we want to know - can you function on less
:01:39. > :01:57.Iran's President, Hasan Rouhani is in Rome - and and has signed
:01:58. > :02:00.billions of dollars worth of contracts - on his first official
:02:01. > :02:09.It comes just weeks after sanctions were lifted following a deal
:02:10. > :02:16.Italian officials say agreements worth $18 billion
:02:17. > :02:25.They include an Italian firm building a 2,000 kilometre
:02:26. > :02:28.pipeline, a steel agreement worth more than $5 billion
:02:29. > :02:29.and a joint venture called Persian Metallics.
:02:30. > :02:32.Later in the week in Paris - President Rouhani is expected
:02:33. > :02:35.to finalise a deal with Airbus to buy 114 new planes -
:02:36. > :02:41.Over the weekend, Iran signed a trade an energy pact with China
:02:42. > :02:54.I am joined by Nicholas Niksadat, Correspondent for BBC Persian.
:02:55. > :03:09.Welcome. The issue is this apparent gold rush. This rich by European
:03:10. > :03:13.firms into Iran because it is a big untapped market, it has been closed
:03:14. > :03:21.for so long. Where do we think the majority of deals will be signed in
:03:22. > :03:26.the early days? I am sorry, I didn't catch that final part of your
:03:27. > :03:31.question. Where will the deals be signed, in which industries, in the
:03:32. > :03:40.early days? Where will the biggest deals be signed? Of course there is
:03:41. > :03:43.a bit of everything. Only yesterday, 13 deals with different Italian
:03:44. > :03:47.companies were signed. Some of them you just mentioned. Some will be
:03:48. > :03:52.signing more deals, they are expected to sign more deals. For
:03:53. > :03:58.example, the Italian mining giant signed a contract worth 5.7 billion
:03:59. > :04:06.euros. More than $6 billion. They will be signing another contract
:04:07. > :04:12.with another Iranians mining entity. There is an infrastructure. Rail as
:04:13. > :04:20.you mentioned, high-speed rail lines. Modernising some of the
:04:21. > :04:25.already existing rail lines. Ports. An Italian chip-making giant based
:04:26. > :04:33.in Genoa, they signed another deal. The president made it clear they
:04:34. > :04:41.want to give more privileged to the sectors such as export, shipping,
:04:42. > :04:44.aviation, and Iran has a very ageing civilian aircraft fleet. That is
:04:45. > :04:50.maybe something they will be discussing in Paris because of our
:04:51. > :04:59.boss. Then again, we have other sectors. -- Airbus. A lot of sectors
:05:00. > :05:02.recovered and today there will be a huge business forum where the
:05:03. > :05:06.Iranians delegate, which is comprised of about 120 people, will
:05:07. > :05:14.be meeting with about 500 Italian big industry directors or investors
:05:15. > :05:19.to further explore possibilities. Briefly, the issue is about it being
:05:20. > :05:23.a two way relationship. What's doing about the intentions of the
:05:24. > :05:27.president when it comes to who he wants to work with. The Italians are
:05:28. > :05:34.in focus, but what other indications do we have about whereas and who
:05:35. > :05:37.else deals will be done with? There is a lot of competition. There are
:05:38. > :05:46.many sectors where Italy and their neighbours France will be competing.
:05:47. > :05:51.For example, oil and gas industry. Italy has been traditionally strong,
:05:52. > :05:56.but it was made clear they do not want to limit themselves to this
:05:57. > :06:00.area of cooperation with Iran. We have the Italian giant and Ben Total
:06:01. > :06:09.in France. The automotive industry, where Italy can maybe be stronger in
:06:10. > :06:12.luxury car, where as France has quite a substantial experience in
:06:13. > :06:16.Iran already before the sanctions. Obviously, choosing Italy and France
:06:17. > :06:21.has not been a coincidence. Iran has made it very clear that Italy has
:06:22. > :06:25.had a positive attitude towards Iran. It helps Italy a lot that it
:06:26. > :06:30.was not a member of the Security Council. Therefore, it was not that
:06:31. > :06:34.hostile and couldn't be. Traditionally, Italy has been quite
:06:35. > :06:41.mild toward a lot of middle eastern countries, including Iran. Perhaps
:06:42. > :06:45.because of its needs. We can think about Germany, as well. At times
:06:46. > :06:48.when Italy was not Iran's first European partner, Germany was the
:06:49. > :06:54.first. Italy and Germany together accounted for 60% of the trade with
:06:55. > :06:55.Iran. I would not leave Germany outside, either. Thank you very
:06:56. > :07:01.much. Ford is shutting down
:07:02. > :07:03.all its operations in The US car giant holds less than 2%
:07:04. > :07:07.market share in both It began operations in Japan more
:07:08. > :07:12.than four decades ago but has struggled to compete
:07:13. > :07:16.against Japanese rivals. Instead, it will focus on China
:07:17. > :07:34.where sales hit a record An official investigation into how
:07:35. > :07:39.money appeared in the Malaysian Prime Minister's account has
:07:40. > :07:43.concluded it was a gift. It has caused months of political scandal
:07:44. > :07:47.in Malaysia, but the eternal general was satisfied there was no criminal
:07:48. > :08:04.wrongdoing -- Attorney General. Rising passenger numbers in easyJet,
:08:05. > :08:09.up by 8.1%, and capacity is growing. It is laying on more planes, but
:08:10. > :08:12.there is still concern about its cost per seat. That is a crucial
:08:13. > :08:16.indicator for the airline about how much it is costing them to fly
:08:17. > :08:24.people. That is falling slightly, but EasyJet says it expects profits
:08:25. > :08:31.to be fully in line. Sharm el Sheikh is a key destination. Paris is also
:08:32. > :08:36.important. Shares opened down 3% today off the back of that is news.
:08:37. > :08:42.Plenty of details that on an update from Dixons carphone. We will talk
:08:43. > :08:46.about that later. That is the merger of the mobile phone retailer and the
:08:47. > :08:49.PC maker. Both industries that are struggling, but they suggest that
:08:50. > :08:54.they are turning things around despite closure of some stores. That
:08:55. > :09:00.is to refocus our business. Not just to focus on phones or PCs.
:09:01. > :09:02.There have been big falls again on the markets in Shanghai.
:09:03. > :09:14.I feel like we have been here before. Why today? This is of course
:09:15. > :09:19.all about sentiment. The markets are feeding off each other and in
:09:20. > :09:23.particular of course feeding off the declining oil prices. That is what I
:09:24. > :09:28.think started the market of lower. It was down about 2% at lunchtime.
:09:29. > :09:32.The story of the afternoon has been one that we have seen before on the
:09:33. > :09:37.Shanghai stock exchange. Too many times over the last six months or
:09:38. > :09:45.so. That is the spectre of panic. Panic simply feeding into panic. Of
:09:46. > :09:47.course what is going on, the markets, the oil price may have
:09:48. > :09:52.started it, but it begins to have very little bearing when investors
:09:53. > :09:57.simply want out. The real thing that is driving that kind of sentiment is
:09:58. > :10:04.the wider concerns over the Chinese economy. The slowdown in group. The
:10:05. > :10:08.manager in expected slowdown that the market had supposedly placing,
:10:09. > :10:13.will it be faster and more prolonged than expected? We have had a few
:10:14. > :10:16.indicators. Energy consumption, freight volumes, over the past few
:10:17. > :10:20.weeks, that have led some to suggest that is what we are seeing. A more
:10:21. > :10:23.prolonged and faster slowdown in growth. That is probably what is
:10:24. > :10:32.spooking investors today. Thank you. Let's look at the markets. Japan
:10:33. > :10:38.closing over 2%. Hong Kong down 2.5%. Wall Street never bodes well
:10:39. > :10:49.for a session in Asia the morning after. Looking at the Europe now,
:10:50. > :10:54.this all follows through. The oil price is falling. Brent crude down
:10:55. > :10:59.nearly 3% below $30 per barrel. That doesn't help London. The Japanese
:11:00. > :11:04.yen very much in favour and the gold price is going up, as well. What
:11:05. > :11:10.will happen on Wall Street? Apple reports its earnings and share
:11:11. > :11:13.price has taken a beating. Investors will be looking at the numbers to
:11:14. > :11:21.decipher how quickly iPhone sales are slowing. The strong US dollar is
:11:22. > :11:26.expected to crimp Proctor and Gamble sales. The company has been cutting
:11:27. > :11:30.down the number of products it sells to try to concentrate on higher
:11:31. > :11:41.margin brands. Also a drop in seat prices is partly to blame for
:11:42. > :11:46.Dupont. An economic front, look out for the latest housing data and the
:11:47. > :11:49.board 's consumer index which will show if Americans are feeling
:11:50. > :11:50.rattled by the latest stock market fluctuations.
:11:51. > :11:52.Joining us is Richard Dunbar, Investment Director
:11:53. > :12:03.We are here again. It is like Groundhog Day. Markets in China are
:12:04. > :12:11.falling, European markets opening like that. Why? Markets are still
:12:12. > :12:15.focusing on the Chinese economy. The prospects for the US economy. And on
:12:16. > :12:20.what the oil price, if anything, is telling us about what is going on in
:12:21. > :12:24.the global economy. That is leading to rather skittish markets. Is its
:12:25. > :12:28.telling us something? We have talked about this a lot and clearly it
:12:29. > :12:31.tells us that story of slowing demand, particularly in China, but
:12:32. > :12:37.there are just as is getting out of step. It is just fear that is making
:12:38. > :12:42.the oil price fall significantly and concern rather than solid evidence.
:12:43. > :12:46.We know that with markets anyway, but nonetheless, either two really
:12:47. > :12:50.in line? You can pull textbooks off-the-shelf and they will tell you
:12:51. > :12:55.that falling oil prices are positive for global growth. At the moment,
:12:56. > :12:58.the negative side of the oil price, from Saudi Arabia, Brazil, Africa,
:12:59. > :13:02.you see me to the problem that the falling oil price is causing. You
:13:03. > :13:05.don't see the benefits. Millions of people around the world are paying a
:13:06. > :13:09.lot less for their gasoline than they were six months ago. You are
:13:10. > :13:13.perhaps interviewing fewer people who are seeing that benefit.
:13:14. > :13:17.Hopefully the time we will see that country. Richard will be back very
:13:18. > :13:21.soon to talk about some of the other stories out there. The Federal
:13:22. > :13:23.reserve begins its two day meeting and deliberations.
:13:24. > :13:26.Still to come: We take them for granted, but what goes
:13:27. > :13:29.We'll get the inside track on the technology that
:13:30. > :13:34.And why firms are battling it out control the power in your pocket.
:13:35. > :13:38.You're with Business Live from BBC News.
:13:39. > :13:40.Young people are now spending more time online
:13:41. > :13:45.An annual survey tracking children's viewing habits found five
:13:46. > :13:48.to 16-year-olds use the internet for around three hours a day -
:13:49. > :13:57.The research agency Childwise described it as a "landmark change"
:13:58. > :14:00.Our Technology Correspondent Rory Cellan-Jones has more.
:14:01. > :14:02.In an age when tablets and smartphones give us instant
:14:03. > :14:06.access to all kinds of viewing material, our media habits
:14:07. > :14:11.But it is children who may be showing us what the future looks
:14:12. > :14:14.The Childwise survey of 5- to 16-year-olds shows
:14:15. > :14:18.they are watching an average of 2.1 hours of traditional TV a day.
:14:19. > :14:23.But that has been overtaken by the three hours they spend online.
:14:24. > :14:27.That may be because two thirds of them now own a tablet computer.
:14:28. > :14:30.And YouTube is top of the list of their favourite websites.
:14:31. > :14:34.Children are moving away from watching linear television.
:14:35. > :14:39.They are watching television when they want to watch it,
:14:40. > :14:42.where they want to watch it, so on tablets and on-demand services
:14:43. > :14:48.But there is still a place for children to watch television
:14:49. > :14:49.with their families, on the weekends, sort
:14:50. > :14:55.In just a few years, children have got used to playing
:14:56. > :15:00.We asked these young visitors to the London Toy Fair
:15:01. > :15:05.When you're on your phone, you can text, and can get in contact
:15:06. > :15:08.with your friends, and you can watch TV.
:15:09. > :15:13.With the telly, you can't play games, and there's,
:15:14. > :15:18.like, not a lot of options what you can do.
:15:19. > :15:21.Children are still watching plenty of television.
:15:22. > :15:23.But in the touchscreen era, they are demanding greater control
:15:24. > :15:43.I want to take you to this story that's in The Telegraph. You will
:15:44. > :15:47.know Slough doesn't have the best reputation for perhaps being a town
:15:48. > :15:52.that you would want to go to or a city, but The Telegraph says it is
:15:53. > :15:56.the UK's new start-up hub. It has been the king of new businesses for
:15:57. > :16:01.the last five years, but Northampton is eyeing its crown. For start-ups,
:16:02. > :16:06.for new business to be a place that attracts you, it is growing its
:16:07. > :16:10.corporate presence by 29%. It is really close to Heathrow. Well,
:16:11. > :16:11.that's one of the benefits, clearly. And it is very close to London as
:16:12. > :16:18.well. Well, there you go. You're watching Business Live.
:16:19. > :16:30.Our top story: Iran raes president is doing his
:16:31. > :16:33.tour. He is in Rome and he is heading to Paris tomorrow. We're
:16:34. > :16:38.keeping track of what he is up to and who is getting the big business
:16:39. > :16:43.offers. The gold rush begins for European firms who are eyeing up
:16:44. > :16:44.opportunities in Iran and what it could mean for them. We will keep
:16:45. > :16:49.you posted as the deals are signed. We might take them for granted,
:16:50. > :16:52.but what about the businesses who make a living from designing
:16:53. > :16:54.and making the parts Imagination Technologies
:16:55. > :17:00.is a UK-based firm which designs the hardware used inside billions
:17:01. > :17:02.of mobiles devices for brands including Apple, Intel,
:17:03. > :17:05.LG, Samsung and Sony. It has more than 1,700 staff -
:17:06. > :17:08.80% of those are engineers. It doesn't make the hardware itself,
:17:09. > :17:10.but instead licences Imagination is also known for it's
:17:11. > :17:23.successful digital radio It has sold more than five million
:17:24. > :17:28.units around the world. Sir Hossein Yassaie,
:17:29. > :17:35.chief executive of Imagination Lovely to see you. Thank you for
:17:36. > :17:40.coming in. We will talk about Pure in a minute because there is all
:17:41. > :17:45.sorts of stories out there about its future. But let's just start with
:17:46. > :17:48.your company and what you do because when we were chatting earlier, I
:17:49. > :17:53.thought it was very interesting how you talked about why you decided to
:17:54. > :17:58.licence, as opposed to make the chips. It was a strategic choice
:17:59. > :18:04.sometime ago, wasn't it? It was 15 or 20 years ago and being in the UK,
:18:05. > :18:07.it was quite clear to me that the revolution will come from silicon
:18:08. > :18:12.and being a chip maker required a massive capital. The question is how
:18:13. > :18:16.do you achieve the same thing and the influence and then the licensing
:18:17. > :18:20.is a better model and very suited to the UK as you can see our friends in
:18:21. > :18:27.Cambridge do a similar thing. It works for both of us. It was a
:18:28. > :18:31.really great idea at the time? Unusual because, you know, licensing
:18:32. > :18:36.technology wasn't really a normal thing 20, or 15 years ago, but it is
:18:37. > :18:39.now, for us, being able to use the know how and the capability here
:18:40. > :18:45.without requiring massive capital was the basis of starting this path.
:18:46. > :18:48.On that issue of know how and knowledge, we talk there about 80%
:18:49. > :18:54.of your staff are qualified engineers and we have made a lot of
:18:55. > :18:57.this skills shortage of people not necessarily having the right skills
:18:58. > :19:03.or the right jobs. How do you find the market? Can you get the people
:19:04. > :19:07.to do the hi-tech jobs? The skill is a megaissue. The way we've worked
:19:08. > :19:11.around it, we are working closely with the universities at the very
:19:12. > :19:15.early stage. We go to schools and try to encourage young people to
:19:16. > :19:18.pick up the electronics as a subject and through that, we get what we
:19:19. > :19:22.need, it is a very difficult subjectment we also are a global
:19:23. > :19:26.company. If you can't get what we need in the UK, we have gone to
:19:27. > :19:30.Poland and other places. I prefer to be based in the UK because having
:19:31. > :19:33.engineers in one place is much more effective, but we've done a
:19:34. > :19:38.combination of UK and overseas through that. We are talking about
:19:39. > :19:42.obviously smart devices, smartphones, etcetera, we have all
:19:43. > :19:45.got them and everyone is using multiple devices, it would seem, for
:19:46. > :19:49.you, it is a gift, but the internet of things is an area that you're
:19:50. > :19:53.moving into a significant way which is seen as the next big thing, isn't
:19:54. > :20:00.it? Of course. I think really if you look at the mobile phone, the focus
:20:01. > :20:02.on them has been, you know, communication, internet access,
:20:03. > :20:06.etcetera, but with the technology it is now possible to take the
:20:07. > :20:12.technology to other major areas such as healthcare, we have seen wearable
:20:13. > :20:16.devices, etcetera, we've prepared technologies that will drive the
:20:17. > :20:21.deployment of advanced solutions in healthcare and in energy management,
:20:22. > :20:25.etcetera. And it is very much moving away from not just the thing you've
:20:26. > :20:29.got in your pocket. This is to do with the internet of things. It is
:20:30. > :20:33.about these devices that are connected to the internet and it
:20:34. > :20:37.means that so much of what we do now, will be controllable or
:20:38. > :20:41.governed by by the internet? Everyone talks about it, but when
:20:42. > :20:48.you ask people what it is, 90% of people can't tell you what it is. So
:20:49. > :20:51.what we've done here. We have a collection of technologies. This is
:20:52. > :20:55.really different sensors, a temperature sensor, this is a
:20:56. > :21:00.switch, this is, you know, a different kind of sensor, so you can
:21:01. > :21:03.build modules like this and district them around the home and this is a
:21:04. > :21:08.central hub that can control the system and you can begin to do all
:21:09. > :21:11.the normal things that you expect in either healthcare or energy
:21:12. > :21:16.management, etcetera. The phone would still be a major element. It
:21:17. > :21:21.will still be controlling a loft these devices, etcetera, but we see
:21:22. > :21:25.this as a big megatrend coming up. We have been told we have got to
:21:26. > :21:28.leave it there which a shame. Not least the fact that you're from Iran
:21:29. > :21:31.which is extremely interesting, but I will get into big trouble if I ask
:21:32. > :21:37.you another question. So we will move on. No problem. Thank you for
:21:38. > :21:43.coming in. We really appreciate it. We have been asking for your tweets.
:21:44. > :21:47.The head of Marriott Hotels has been talking about the perceived wisdom
:21:48. > :21:54.of people who say, "I survive on three or four hours a night of
:21:55. > :21:58.sleep." We have had a tweet saying, "For over seven years, I have only
:21:59. > :22:02.had four to five hours sleep, but still manage to function better than
:22:03. > :22:08.other people." Other people may disagree with you. That's what I
:22:09. > :22:14.get, four to five hours sleep. Another viewer says, "I can function
:22:15. > :22:19.on three hours. Do that for a couple of days, it depends on the events
:22:20. > :22:26.and how busy I am." How many hours sleep a night do you get? Normally
:22:27. > :22:31.four or five. Go on, but... If I do three or four hours for five days, I
:22:32. > :22:37.need an eight hours to recover from it. Power through the week and have
:22:38. > :22:42.a binge on sleep. You must do, the power sleep which is a 20 minute
:22:43. > :22:46.sleep now and then. I learned that from the Japanese. You and I should
:22:47. > :22:50.write a book. It would be a best seller!
:22:51. > :22:53.Philips, the Dutch maker of LED lights and medical scanners,
:22:54. > :22:55.has reported core fourth quarter earnings ahead of expectations,
:22:56. > :22:57.but the company issued a cautious outlook for 2016.
:22:58. > :22:59.Earlier, the company's chief executive Frans van Houten explained
:23:00. > :23:15.Let's look at the year. We ended well. We saw 15% order intake growth
:23:16. > :23:22.in healthcare overall 4% growth in health technology. Led lighting grew
:23:23. > :23:27.26%. I think that's a rewarding number and our operational
:23:28. > :23:33.profitability ended at 11.9% which was a 13% improvement. So we do see
:23:34. > :23:39.that Phillips is gaining traction, the accelerate programme is working
:23:40. > :23:45.well and then as you mentioned, we had a setback on luminar which was
:23:46. > :23:56.disappointing after we thought back in April we constructed a good
:23:57. > :24:01.transaction. Let's look at what the business
:24:02. > :24:05.pages have. Richard is back. South China Morning Post. People living
:24:06. > :24:10.around the world always think their city is the most expensive. Hong
:24:11. > :24:16.Kong is the most expensive market in the world for the sixth year in a
:24:17. > :24:20.row? Hong Kong is 20 times average earnings. This snap was taken in
:24:21. > :24:24.September. So with what we have seen going on in China, in commodity
:24:25. > :24:27.prices in the global economy, I suspect this maybe a peak in Hong
:24:28. > :24:31.Kong, but nevertheless, it is a dynamic, exciting economy and that,
:24:32. > :24:36.those house prices would reflect that. I thought Singapore might pip
:24:37. > :24:39.it to the post, but clearly, Hong Kong, holding that title and it is
:24:40. > :24:46.not necessarily a good title to have, is it? Well, it's not. 19
:24:47. > :24:55.times earnings? It is 19 times the average residents erchtion.
:24:56. > :25:01.Residents earnings. Let's get your take on this, the boss of Marriott
:25:02. > :25:04.Hotels saying you have got to have at least seven-and-a-half hours
:25:05. > :25:10.sleep a night. He is proud of that and he thinks those who boast they
:25:11. > :25:16.have less, they are not really being honest? It is really a badge of
:25:17. > :25:20.honour. Margaret Thatcher had four hours a night. It is seen as a badge
:25:21. > :25:24.of honour and it is interesting there is some push back from one of
:25:25. > :25:28.the senior executives. It is a hotel executive so she is keen that people
:25:29. > :25:32.use her product to increase their amount of sleep!
:25:33. > :25:36.It is that move about work-life balance, getting better balance when
:25:37. > :25:40.it comes to what we do at work and what we do at home and the paternity
:25:41. > :25:44.leave and maternity leave. Business should not be cut and dry, it is
:25:45. > :25:48.about having a balance and that makes you a better person or a
:25:49. > :25:52.better business leader. You can see that in the high time industries
:25:53. > :25:55.that we are trying to make it more attractive to bring people in.
:25:56. > :26:00.Richard, nice tows. That's it from us. We will see you very soon, same
:26:01. > :26:07.place, same time tomorrow. Thank you for your company. Bye-bye.
:26:08. > :26:14.Good morning. Remember the record snow that was across the United
:26:15. > :26:17.States over the weekend? That same weather system has been charging
:26:18. > :26:21.across the Atlantic. It is this area of cloud here and it is showing its
:26:22. > :26:22.hand in the UK. But it has