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