:00:00. > :00:08.This is Business Live from BBC News, with Aaron Heslehurst and Sally
:00:09. > :00:13.The internet of things is set to wire up our world -
:00:14. > :00:16.at the world's biggest wireless industry show,
:00:17. > :00:20.the big auto makers are connecting our cars to cyberspace.
:00:21. > :00:44.Live from London, that's our focus on Tuesday 23rd February.
:00:45. > :00:46.The annual Mobile World Congress is underway in Barcelona -
:00:47. > :00:51.it's the biggest trade show for the global wireless industry
:00:52. > :00:54.where another trend is emerging, car bosses mingling with tech geeks.
:00:55. > :00:56.Forget engine size and air con ? today,
:00:57. > :01:05.Also in the programme: The world's biggest mining company,
:01:06. > :01:08.BHP Billiton, suffers huge losses as the global
:01:09. > :01:11.commodity slump hits it very hard indeed - our team in Asia
:01:12. > :01:18.And markets in Europe are headed in the wrong direction yet again -
:01:19. > :01:24.We will talk you through the winners and losers.
:01:25. > :01:30.And we'll be getting the inside track on ceramics.
:01:31. > :01:33.But think less of old English pottery and more cutting-edge
:01:34. > :01:37.Modern ceramics helps both heart surgeons and drug abusers -
:01:38. > :01:41.we'll tell you how later in the show.
:01:42. > :01:44.Connected cars - are you turned on by smart, driverless cars or does
:01:45. > :01:47.the thought of apps that control your car scare the living
:01:48. > :02:12.It's the highlight of the mobile industry's calendar -
:02:13. > :02:15.the annual Mobile World Congress in Barcelona.
:02:16. > :02:20.One of the trends grabbing attention is auto giants mingling
:02:21. > :02:28.It used to be that car buyers would care about engine size
:02:29. > :02:31.and air-con, but today it's all about in-built smart technology
:02:32. > :02:38.for safety, entertainment and connectivity.
:02:39. > :02:43.So in 2020, three in four cars will come with integrated
:02:44. > :02:45.connectivity - that's around 69 million cars,
:02:46. > :02:51.according to the automotive security firm Giesecke Devrient.
:02:52. > :02:55.With every year that goes by, analysts say the car is already
:02:56. > :02:57.becoming part of the internet of things.
:02:58. > :02:59.Germany's auto industry alone is expected to pump $12 billion
:03:00. > :03:13.In fact, under new European Union laws, from 2018 all cars and light
:03:14. > :03:16.vans in Europe must be fitted with a device
:03:17. > :03:22.It's designed to cut road deaths by 10% a year.
:03:23. > :03:27.But who'll foot the bill for all this?
:03:28. > :03:30.Will you add your car as a "device" to your existing phone bill,
:03:31. > :03:50.And then there's training - sales people could spend hours
:03:51. > :03:51.teaching people like me, the not-so tech savvy,
:03:52. > :03:53.how to use their car's advanced technology.
:03:54. > :03:55.Technology correspondent Rory Cellan-Jones is in Barcelona
:03:56. > :04:10.Good to see you. I see a car behind you. Yesterday, interviewed on our
:04:11. > :04:14.programme, the CEO of forward was unveiling a new SUB full of all of
:04:15. > :04:18.this tech, and they have tripled their interest in technology, so I
:04:19. > :04:23.wonder if this highlights the threat of the big tech global players, the
:04:24. > :04:30.threat to the traditional car-makers?
:04:31. > :04:34.Very good to be with you. Before I turn to cars, I just want you to
:04:35. > :04:38.meet a friend of mine who tells us a bit about something, this is an
:04:39. > :04:41.animatronic dog, part of the Internet of things that we are
:04:42. > :04:49.talking about. Wake up, fella. He is wearing a collar with a cheap
:04:50. > :04:53.sensor, and this is what is driving this revolution, the internet of
:04:54. > :04:55.things. Everything in our lives is going to be connected to the
:04:56. > :05:02.Internet over the next five years or so, which includes not just dogs but
:05:03. > :05:07.cars. At this show, you have not just got the mobile phone makers and
:05:08. > :05:13.networks, you have now got the car companies. This particular car is
:05:14. > :05:16.being demonstrated by the mobile network AT It has got a SIM card
:05:17. > :05:23.in it, more and more cars will have a SIM card, they will effectively
:05:24. > :05:27.become mobile phones. Last year in America 50% of all new cars sold had
:05:28. > :05:31.a connection to the Internet, it will become common. What does it
:05:32. > :05:34.give you? This one has a mobile hotspot, you can connect to the
:05:35. > :05:42.car... But your microphone back on! It
:05:43. > :05:51.dropped off somewhere! It was after you strangled the robotic dog!
:05:52. > :05:56.Yes, cars will be full to the boot with technology. Let me ask you
:05:57. > :06:06.about five G, I'm still getting my head around 4G, but tell us about
:06:07. > :06:09.five G? A lot of talk about 5G year. At this place, where 70,000 people
:06:10. > :06:14.are trying to use networks at the same time, a bit of 3G would be
:06:15. > :06:18.excellent! It is still a way off, five years or so, but already a big
:06:19. > :06:23.debate about it. Mark Zuckerberg was on stage last night and raised an
:06:24. > :06:27.interesting question, 5G is supposedly all about the internet of
:06:28. > :06:31.things, about connecting things to the Internet, and making it better
:06:32. > :06:35.for people who have already got the Internet to get connected. He is
:06:36. > :06:38.billions of people around the world billions of people around the world
:06:39. > :06:43.who have not even got any kind of Internet connection? A bit of a call
:06:44. > :06:46.to the industry there, he got a round of applause for that. There is
:06:47. > :06:51.a certain amount of controversy over how we roll out these networks,
:06:52. > :06:54.whether we make sure everybody has got some connection before we make
:06:55. > :06:57.sure that my dog can go online as well.
:06:58. > :07:04.You go and play with your dog, we will talk to you soon!
:07:05. > :07:08.Yes, it is on, you can take it off now!
:07:09. > :07:10.You would expect our technology Guru to keep the microphone on!
:07:11. > :07:14.He is still listening! Leaders from some of Britain's
:07:15. > :07:19.biggest companies say that leaving the European Union would threaten
:07:20. > :07:21.jobs and put the UK's Bosses from 36 FTSE 100
:07:22. > :07:28.companies, including BT, Marks Spencer and Vodafone,
:07:29. > :07:35.signed a letter published in The Times newspaper saying
:07:36. > :07:38.an EU exit would deter However, those supporting a Brexit
:07:39. > :07:43.say that leaving would cut "unnecessary" regulation
:07:44. > :07:46.and costs, boosting growth. The founder of Microsoft,
:07:47. > :07:49.Bill Gates, has told the Financial Times that
:07:50. > :07:51.Apple should be forced to co-operate with the FBI's request to disable
:07:52. > :07:53.the security software on an iPhone used by one
:07:54. > :07:56.of the San Bernardino killers. His view is at odds with many
:07:57. > :07:59.of the key players within the tech industry, and yesterday
:08:00. > :08:01.Facebook's chief executive, Mark Zuckerberg, said he was
:08:02. > :08:05.sympathetic to Apple's position. Lower oil prices has helped Qantas
:08:06. > :08:08.post a record underlying pre-tax profit of $665 million
:08:09. > :08:12.for the six months to December. The result is the best first-half
:08:13. > :08:15.profit in the Australian Despite the positive numbers,
:08:16. > :08:23.shares in the company fell by 5% in morning trading, in part
:08:24. > :08:35.due to a recent spike The flying kangaroo, that is right
:08:36. > :08:39.up your alley! We will talk more about that later.
:08:40. > :08:43.I was going to say something but thought I had better not!
:08:44. > :08:47.Let's talk about what aircraft need, and that is airports. Heathrow, used
:08:48. > :08:51.to be the biggest airport in the world in terms of international
:08:52. > :08:56.passenger numbers, Dubai has overtaken that, but profits are up
:08:57. > :09:04.well, up 22%. Heathrow reported the rise in its annual profits, made
:09:05. > :09:09.?223 million. I was going to say times that by 1.5, but given the
:09:10. > :09:12.drop in the pound, I don't think that is right.
:09:13. > :09:19.A lot of stories on the website as ever. Migrant Labour so important
:09:20. > :09:24.for horticulture, this was discussed on BBC Radio Cornwall today. An NFU
:09:25. > :09:28.conference kicking off in Birmingham today, talking about the importance
:09:29. > :09:30.of migrant labour to economic growth, such a hot topic with the
:09:31. > :09:36.Brexit debate ongoing in the UK. Brexit debate ongoing in the UK.
:09:37. > :09:38.190 days until the referendum. We are counting!
:09:39. > :09:48.Count every day. Digging itself into a bit
:09:49. > :09:51.of a hole - mining giant BHP Billiton sees its first loss
:09:52. > :09:55.in more than 16 years. It reported a net loss amounting
:09:56. > :09:58.to a whopping $5.7 billion for the six months to
:09:59. > :10:00.the end of December. Sharanjit Leyl is in
:10:01. > :10:06.Singapore for us. Nice to see you. Tell us more about
:10:07. > :10:10.the HP, because no surprise it has had a bad time but these losses are
:10:11. > :10:15.significant? They are, huge half-year losses.
:10:16. > :10:20.Along with that, the company has issued dire warnings that weak
:10:21. > :10:24.commodity prices will continue. Other comparison, the firm made a
:10:25. > :10:29.profit of nearly the same amount that it has lost this time, over $5
:10:30. > :10:34.billion, for the same period in the previous year, so what a change a
:10:35. > :10:37.year makes. Of course there was more bleak news for shareholders because
:10:38. > :10:44.BHP has cut its interim dividend pay-out from 62 cents a share to
:10:45. > :10:49.just 16 cents, which is part of its long held policy of increasing or
:10:50. > :10:54.maintaining dividend payments. BHP is warning the period of weak
:10:55. > :11:03.commodity prices and higher volatility would be prolonged as a
:11:04. > :11:07.slowdown in China's economy slows down demand for these commodities.
:11:08. > :11:15.It is not just BHP, all mining companies are in the same boat. But
:11:16. > :11:18.their shares closed 6.2% higher in Sydney as traders forecast a better
:11:19. > :11:20.second half, but that is set against the context of it falling nearly 50%
:11:21. > :11:31.in the past 12 months. Thank you. Let's show you the
:11:32. > :11:36.markets in Asia, hopefully the numbers will appear over my
:11:37. > :11:42.shoulder! Japan closed down by a bad .5% today, market across Asia had a
:11:43. > :11:47.pretty tough session, though BHP Billiton's shares were up 2.6%.
:11:48. > :11:52.Europe headed slightly lower as well. What is the difference today?
:11:53. > :11:56.Oil prices going down again, safe havens like the Japanese yen are
:11:57. > :12:00.back in favour. The nerves are back for the financial market around the
:12:01. > :12:04.world. We cannot show you the numbers now... There you go, you can
:12:05. > :12:10.see them on the screen. I don't know if they are the latest, so let's
:12:11. > :12:13.ignore those now and hand you to New York for a look ahead at what is
:12:14. > :12:17.happening in the US. US investors can look forward to a
:12:18. > :12:23.detailed snapshot of the help of the housing sector on Tuesday. The index
:12:24. > :12:28.measures the price of homes in the 20 major real estate markets. It is
:12:29. > :12:32.forecast to show prices rising 6% compared with a year ago. Also out
:12:33. > :12:37.is the measure of how many existing home sales are taking place in the
:12:38. > :12:43.US, and the number is likely to have fallen slightly to a rate of just
:12:44. > :12:56.over 5.3 million sales per year. But that is still higher than it was for
:12:57. > :12:58.all of 2015, so between them the two reports should encourage investors
:12:59. > :13:01.that the housing recovery is still on, and, if that was not enough, a
:13:02. > :13:02.big home-builder puts out its earnings, which are expected to show
:13:03. > :13:17.a healthy rise in revenue. I wanted to help you out and draw
:13:18. > :13:21.the arrow, pointing down, in red! Let's get rid of those numbers, the
:13:22. > :13:24.technology is not working! The internet of things has gone
:13:25. > :13:34.down! Rory jinxed the entire show! Let's talk about the pound,
:13:35. > :13:37.yesterday had steep falls, but everyone we were talking to
:13:38. > :13:43.yesterday, on my other programmes on BBC world News, it was not down off
:13:44. > :13:47.the back of hard economic fact, it is just uncertainty? That is exactly
:13:48. > :13:52.what it is. If you look at the last month and a half, if you went into
:13:53. > :13:56.the start of February, it was into interest rate differentials, nothing
:13:57. > :13:59.more complicated than that. Three polls at the start of February said
:14:00. > :14:03.there was a possibility that we could have an exit, and the
:14:04. > :14:07.sentiment towards the pound changed. If you look at this week, the
:14:08. > :14:10.announcement about the special deal from David Cameron came out before
:14:11. > :14:14.the close of markets on Friday, sterling was upon the back of that,
:14:15. > :14:19.so the referendum date was not the key. Only one thing happened, Boris
:14:20. > :14:24.Johnson's announcement and how that changed the odds. That is the Mayor
:14:25. > :14:28.of London, for our worldview was. You can see the changing odds on the
:14:29. > :14:32.bookies people's websites, that is what caused the unrest, people don't
:14:33. > :14:37.know what it means, it is as simple as that. What is interesting, as
:14:38. > :14:41.well, the pound fell significantly against the dollar yesterday, it has
:14:42. > :14:45.not fallen today, gone up a little bit, but multi-year lows for the
:14:46. > :14:50.dollar, but the euro is weak as well, and is fairly weak because if
:14:51. > :14:56.the UK were to leave it is not good for the European Union either?
:14:57. > :14:59.Precisely, and it was very noticeable yesterday, sterling was
:15:00. > :15:06.low against the dollar but it was not making it back with the highs
:15:07. > :15:10.against the euro, you were getting a knock-on effect. It could be down to
:15:11. > :15:14.the trade relations, or it could be a belief that populist parties will
:15:15. > :15:19.be whacked on the back of the referendum, and it has a unknown
:15:20. > :15:23.consequences within Europe. With the currency market, it has another
:15:24. > :15:27.knock-on consequence, which is that there are fewer things for people to
:15:28. > :15:32.buy into as a safe haven. Look at today, the strength of the yen, if
:15:33. > :15:37.there is an untoward consequence of this, it but the bank of Japan in a
:15:38. > :15:40.difficult position. Negative deposit rates and yet the yen is
:15:41. > :15:46.strengthened, it is astonishing. On that bright note... I always like to
:15:47. > :15:52.cheer you up! You will come back to take us through the papers later on.
:15:53. > :15:56.We are talking ceramics and for you that may conjure up
:15:57. > :15:59.images of an old English industry from centuries gone by,
:16:00. > :16:02.but we'll be speaking to the boss of materials technology firm
:16:03. > :16:04.Lucideon, that is reinventing a centuries old material
:16:05. > :16:12.You're with Business Live from BBC News.
:16:13. > :16:22.It's like the Duracell bunny, it's the debate that goes on and on,
:16:23. > :16:26.and this morning 36 business leaders from some of Britain's biggest
:16:27. > :16:28.companies have come out backing the campaign to remain
:16:29. > :16:36.They are warning that a vote to exit will threaten jobs
:16:37. > :16:40.Simon Jack is in the business newsroom.
:16:41. > :16:45..15am Simon, we were expecting this to happen today. It is in the Times
:16:46. > :16:50.newspaper. Tell us who is on the list? Well, at first sight it is an
:16:51. > :16:55.impressive list, you have got the Chairman of BT, BP, Shell, Goldman
:16:56. > :16:58.Sachs, so a long list of powerful companies which employs tens of
:16:59. > :17:04.thousands of people, but in a way, it is a list of the usual suspects.
:17:05. > :17:07.36 of the FTSE 100 have signed it. That begs the question, 64 haven't
:17:08. > :17:11.signed it and that's for a variety of reasons. Some will be leaning
:17:12. > :17:16.towards going out and others won't have had a board meeting yet to
:17:17. > :17:23.decide what posture their company will take. Legal and General is
:17:24. > :17:26.expected to sign it. They are having a board meeting later this week
:17:27. > :17:33.where they have got to decide, whether they are out, in, neutral.
:17:34. > :17:49.Other companies won't want to sign something like this for fear of
:17:50. > :17:52.annoying customers. So plenty of reasons why they haven't signed it.
:17:53. > :17:57.They will probably get another letter in the next few days. Hey,
:17:58. > :18:02.Sim, how effective are the letters? Well, it is a good question. You
:18:03. > :18:06.think, "Who cares what the senior executives think?" Businesses can't
:18:07. > :18:12.vote, but they have got a voice. In the last election, a letter of this
:18:13. > :18:16.nature had a bit of an effect on Ed Miliband's economic credibility and
:18:17. > :18:19.could have cost him. As I say, they may not be that effective. People
:18:20. > :18:23.may not take notice of what Chief Executives think, but this won't be
:18:24. > :18:29.the last letter we see in a national newspaper on this subject!
:18:30. > :18:34.Thank you so much, Simon Jack there. A store that's just been breaking.
:18:35. > :18:40.Standard Chartered reported a $1.5 billion loss. That's a pre-tax
:18:41. > :18:45.annual loss compared to a profit of 4.2 billion the year before. This is
:18:46. > :19:05.a bank that's very Asia-focussed and therefore is having a tough time.
:19:06. > :19:11.We are A car that can make a cup of tea and keep the kids under control.
:19:12. > :19:15.That's the type of car I want! We are talking ceramics
:19:16. > :19:21.and for you that may conjure up Now when you think of ceramics,
:19:22. > :19:24.does fine bone china come to mind? Stoke on Trent in Britain's Midlands
:19:25. > :19:27.is still famous for its pottery, but there's more
:19:28. > :19:29.to it than tableware. Today, ceramics is a material
:19:30. > :19:31.at the cutting edge Used in heart surgery, aerospace
:19:32. > :19:34.and nuclear industries too. Material company Lucideon was born
:19:35. > :19:36.out of the pottery industry in the 1940s, but is hoping to put
:19:37. > :19:40.Stoke on Trent back on the map with high-tech and innovative use
:19:41. > :19:42.of materials like ceramics. The company was originally funded
:19:43. > :19:45.by the UK government and the ceramics industry but it
:19:46. > :19:47.became a fully commercial operation in the late 1980s when
:19:48. > :19:49.the government pulled Lucideon still does research
:19:50. > :19:53.and development and its materials technologies go to support
:19:54. > :19:54.industries from healthcare For instance, it makes
:19:55. > :20:01.biodegradable stents for heart surgery
:20:02. > :20:04.and ceramic coated hips. Lucideon, which has operations
:20:05. > :20:07.in the UK, US and partners in Asia, employs some 200 scientists,
:20:08. > :20:09.engineers and commercial analysts. Group sales for 2015 were ?16
:20:10. > :20:11.million or nearly ?23 million. Tony Kinsella who has been the boss
:20:12. > :20:30.for the last 10 years Welcome Tony. Good morning. You
:20:31. > :20:33.provided us with a picture and everything there. It is great to
:20:34. > :20:38.have you in. It is an incredible story and it is a story that
:20:39. > :20:42.highlights the evolution, the need of evolution for certain industries
:20:43. > :20:45.and companies. Funding was withdrawn, you have gone commercial,
:20:46. > :20:52.it has become a success, what's the secret? Talent. Need. We were forced
:20:53. > :20:58.to either die or live. So we invested in some raw talent. We
:20:59. > :21:01.talked to our customers, that's the big thing about innovation,
:21:02. > :21:05.invention is great, but what's the point of invention if there isn't a
:21:06. > :21:07.need. Invention is not cheap and quite often you have to invest for
:21:08. > :21:11.sometime before you reap the rewards? Absolutely, Sally. That's
:21:12. > :21:17.the other side of the innovation chain. I see great investment in
:21:18. > :21:19.investment, echo sphere by the UK Government for instance, really
:21:20. > :21:25.great, but there have too much supply and not enough demand. The
:21:26. > :21:28.big issue we see is what about the Chief Executives are demanding unowe
:21:29. > :21:36.vation and want to renew their industry. I go and talk to CEOs in
:21:37. > :21:41.the UK and what I hear is, "Tony, am I the first?" I go to the States and
:21:42. > :21:45.the guys say, "Tony, am I the first buddy?" They want to be first mover
:21:46. > :21:50.and that's a completely change of culture. Does that make it difficult
:21:51. > :21:55.then? To have a great focus in the UK if you're dealing with a
:21:56. > :21:59.mentality. Why not just ship it, I don't want to take business away
:22:00. > :22:05.from the UK, why not ship it to the US? A great place to be and we have
:22:06. > :22:09.set-up a new place in North Carolina where the infrastructure, the
:22:10. > :22:15.mentality, the culture is all about innovation and money and drive, but
:22:16. > :22:19.the technology, the technologyist and the academic support is here in
:22:20. > :22:23.the UK. We are still a brilliant world leader in invention. The UK
:22:24. > :22:27.Government has done a great, great job. We are now number two on the
:22:28. > :22:32.global index for innovation around the world. Number two. Behind
:22:33. > :22:35.Sweden. So your passion is clearly, the
:22:36. > :22:39.innovation, it is the invention, it is that brilliance that you're
:22:40. > :22:42.talking about, but you're really passionate about Stoke-on-Trent in
:22:43. > :22:46.particular and the fact that you want it to become a hub, you want
:22:47. > :22:51.more financing to come to that area. Just talk us through that? It has
:22:52. > :22:55.been the centre of materials. It has transformed materials for hundreds
:22:56. > :23:00.of years. That's what it was built around, Wedgwood, so we have had
:23:01. > :23:03.invention, but it transformed coal to power for the steel industry.
:23:04. > :23:08.Coal to power for the Potteries, that's why the Potteries were there
:23:09. > :23:12.because of coal. And then clay for obviously potteries. So it is a
:23:13. > :23:17.centre of transforming materials. We're looking to get an advanced
:23:18. > :23:23.materials, innovation research and commercialisation centre and the
:23:24. > :23:28.commercialisation is the key. Will you get it? We're looking for the UK
:23:29. > :23:34.Government to be innovative in funding. We want money for start-up
:23:35. > :23:37.and we want them out. Let's fund it ourselves, let's be independent and
:23:38. > :23:41.let's be commercial. Let the Government take a stake, take equity
:23:42. > :23:46.and take risk, we don't want to be on the Government list of funding,
:23:47. > :23:51.but give us a help, part of the Northern powerhouse and really do
:23:52. > :23:56.something that's focussed on materials and transformation. I've
:23:57. > :24:02.got to wrap it up unfortunately. In or out of Europe? Out. I believe in
:24:03. > :24:04.democracy. He believes in democracy. Interesting, we will take you
:24:05. > :24:08.through the business pages soon. In a moment we'll take a look
:24:09. > :24:12.through the Business Pages but first here's a quick reminder of how
:24:13. > :24:17.to get in touch with us. The Business Live page is where you
:24:18. > :24:21.can stay ahead with all the day's breaking business news. We will keep
:24:22. > :24:24.you up-to-date with insight and analysis from the BBC's team of
:24:25. > :24:30.editors around the world and we want to hear from you too, get involved
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:24:51. > :24:57.Simon is back. Let's start with Qantas, the
:24:58. > :25:00.national carrier, Alan Joyce, an Irish chap, the CEO, a lot of people
:25:01. > :25:05.wanted his head because the airline was in such trouble. The turn
:25:06. > :25:09.around? Yeah, look back to where we were 12 months and where the oil
:25:10. > :25:16.price was and look where the oil price is now!
:25:17. > :25:19.Given there has been a slowdown in the Asian economy, that would have
:25:20. > :25:22.been a drag on Qantas and given the fact that there has been problems
:25:23. > :25:25.within the Australian economy as a result, you would have thought that
:25:26. > :25:29.that would have been an issue. So you have got to believe that the
:25:30. > :25:35.major shift is the fact that we have gone from $120 to $35. I think it is
:25:36. > :25:40.a good thing. One of the things I love is the shift in the oil price
:25:41. > :25:45.is making people to talking about non-stop flights to Australia. It is
:25:46. > :25:50.great that the shift is opening up. The airline world to do some radical
:25:51. > :25:57.new things. Simon, we're out of time. We
:25:58. > :25:59.appreciate it though. That's it. More business throughout the rest of
:26:00. > :26:08.the day. We will see you tomorrow. Bye-bye.
:26:09. > :26:14.Winter weather conditions remain in control across the United Kingdom.
:26:15. > :26:19.Cold yes, but actually plenty of sunshine. Cold because we've got a
:26:20. > :26:21.northerly flow around high pressure to the west of us and low pressure