:00:07. > :00:12.This is Business Live from BBC News with Aaron Heslehurst
:00:13. > :00:17.Tesla unveils its car for the masses but can the Model 3 take
:00:18. > :00:22.Live from London, that's our top story on Friday,
:00:23. > :00:44.Will it be able to entice the masses into embracing electric cars?
:00:45. > :00:48.We'll be looking at what Tesla's new car will up against.
:00:49. > :00:50.We'll be looking at what Tesla's new car is against.
:00:51. > :00:51.Also in the programme.
:00:52. > :00:53.China's Anbang suddenly abandons its bidding war
:00:54. > :00:56.for Starwood Hotels in the US - bringing Marriott one step closer
:00:57. > :00:58.to becoming the biggest hospitality group in the world.
:00:59. > :01:00.And we'll have all the latest from the markets.
:01:01. > :01:02.Asia sours as Japanese companies are as pessimistic
:01:03. > :01:10.about their fortunes as they have been for four years.
:01:11. > :01:12.Plus, from backroom startup to $600 billion titan.
:01:13. > :01:14.Yes, today Apple celebrates its 40th birthday.
:01:15. > :01:18.We meet the co-founder who sold his 10%
:01:19. > :01:22.stake in the company just 12 days after he helped set it up
:01:23. > :01:30.So we want to know - have you ever made a catastrophic
:01:31. > :01:37.business decision or just a decision you regret?
:01:38. > :01:39.We would be here all day if you had to hear mine.
:01:40. > :01:46.Let us know just use the hashtag #BBCBizLive.
:01:47. > :01:54.We start with the world of electric cars - and a hugely important day
:01:55. > :01:59.In the last few hours, it has unveiled this -
:02:00. > :02:01.its big hope for the future - called the Model 3.
:02:02. > :02:11.Up until now, Tesla has made expensive electric cars for wealthy
:02:12. > :02:13.drivers who can afford a price tag of $75,000 and up.
:02:14. > :02:17.But at less than half the price - the Model 3 is Tesla's attempt
:02:18. > :02:19.to get more of us to ditch petrol and diesel
:02:20. > :02:21.and bring electric motoring to a far wider market.
:02:22. > :02:25.Tesla's been very successful as a niche manufacturer,
:02:26. > :02:31.but if it wants to sell cars to the mass market,
:02:32. > :02:35.it will have to take on the big established names.
:02:36. > :02:37.Many of them are now offering full electric cars.
:02:38. > :02:39.Let's remind you of what it's up against.
:02:40. > :02:41.Nissan's Leaf was the first mass-market plug-in
:02:42. > :02:55.It's one of the cheapest, at the equivalent of $29,000.
:02:56. > :02:57.Last year it sold more than 43,000 cars
:02:58. > :03:01.Just over year ago BMW entered the fray with this -
:03:02. > :03:08.It's a fair bit more expensive - but still managed to sell almost
:03:09. > :03:11.Other big carmakers have been
:03:12. > :03:14.plugging into the market with electric versions of their best
:03:15. > :03:19.selling cars - like the Ford Focus Electric or the VW E-Golf.
:03:20. > :03:23.Jim Holder is an editorial director at Haymarket,
:03:24. > :03:25.the publishing group which owns What Car magazine.
:03:26. > :03:34.An appropriate guest. Obviously, this all comes down, I'm assuming as
:03:35. > :03:40.a layman, to the battery, the quality of it. I know Tesla and Elon
:03:41. > :03:47.musk, the owner has invested something like $5 billion into
:03:48. > :03:52.the... The Geiger factory. 250 miles is not too shabby. If you look at
:03:53. > :03:55.cars like the Leaf and the Golfer we have just seen, they have a range of
:03:56. > :03:58.120 mile so he's looking at doubling the mileage of what is a
:03:59. > :04:04.comparatively affordable car on battery power. I don't know whether
:04:05. > :04:10.to go down the line but this is make or break for Tesla -- that this is.
:04:11. > :04:13.But apparently, those who have already put down a $1000 deposit on
:04:14. > :04:19.the car which does not come out until the end of 2017, there's about
:04:20. > :04:23.135,000 people who are already waiting for this car. I'm wondering
:04:24. > :04:29.if this model will be, for Tesla, what the iPhone is to Apple. I think
:04:30. > :04:33.it could be, it is a make or break our for Tesla. They have spent huge
:04:34. > :04:38.sums of money to get where they are now. -- make or break car. This car
:04:39. > :04:43.has come out and in 24 hours has sold more vehicles, more deposits,
:04:44. > :04:47.?135,000 than some established car-makers can make any year. If
:04:48. > :04:50.Tesla wants to break into the mainstream and take on the biggest
:04:51. > :04:54.players, this car has to be successful. While we have you, I'm
:04:55. > :04:59.interested in this idea about the battery. No one has really cracked
:05:00. > :05:03.it yet, have they? I guess I wonder whether the market is developing so
:05:04. > :05:07.quickly that actually, they won't? Really what we should be doing is
:05:08. > :05:11.not buying these cars but leasing them. They have the battery issue
:05:12. > :05:15.and they can sort out the problem. We get the next new shiny thing
:05:16. > :05:19.every three years when we traded in. I think that's a really good point
:05:20. > :05:22.and it interesting that this car is still 18 months away from being
:05:23. > :05:24.driven by anyone and battery technology will have moved on
:05:25. > :05:29.substantially again by the time it is delivered. For lots of electric
:05:30. > :05:32.car buyers, we are seeing them leasing them and we are also seeing
:05:33. > :05:35.that the second-hand value of electric cars is very low because
:05:36. > :05:39.the technology is moving on so quickly. Leasing is definitely a way
:05:40. > :05:45.ahead for the industry. Great to see you. I had an interesting point!
:05:46. > :05:51.Leasing is a very smart idea. Thanks, Jim. Have a great weekend.
:05:52. > :05:53.Jim Holder from Haymarket publishing, there.
:05:54. > :05:59.Activity in China's factories expanded in March for the first time
:06:00. > :06:01.in nine months - according to official data known
:06:02. > :06:09.Some analysts say it's evidence that government stimulus measures
:06:10. > :06:12.are starting to reinvigorate the Chinese economy,
:06:13. > :06:18.which last year grew at its weakest rate in a quarter of a century.
:06:19. > :06:21.Staying with China - the telecoms giant Huawei says
:06:22. > :06:24.profits were up more than a third last year after the strongest
:06:25. > :06:32.Its network equipment division is benefiting from the adoption
:06:33. > :06:34.of fourth generation mobile services across China.
:06:35. > :06:36.It also became the first Chinese company to sell more
:06:37. > :06:45.than 100 million smartphones in a year in 2015.
:06:46. > :06:56.It is number three behind Apple and Samsung.
:06:57. > :07:04.Skinny jeans, this is your story. Are you a big fan? I could not get
:07:05. > :07:08.into them! We are telling you about this
:07:09. > :07:12.because the creative director of YSL, credited with creating the
:07:13. > :07:17.look, has apparently left the French fashion label after four years. He
:07:18. > :07:36.was also behind women wearing tuxedos, YSL, that 1970s look. When
:07:37. > :07:39.where they doing that? Isola Rob -- Yves Saint-Laurent started the trend
:07:40. > :07:44.for women wearing tuxedos. The Chinese insurance firm
:07:45. > :07:49.Anbang has unexpectedly abandoned its $14 billion takeover
:07:50. > :07:53.offer for Starwood Hotels, ending a three-week
:07:54. > :08:04.bidding war with Marriott. Starwood owns 900 hotels across the
:08:05. > :08:05.world and the boss is on the show on Monday.
:08:06. > :08:17.Tell us more. No one was really expecting this to happen and big
:08:18. > :08:20.news for Marriot. This really was a surprise move. Late on Thursday, a
:08:21. > :08:25.statement was released saying that market considerations had caused
:08:26. > :08:32.Anbang to pull the plug on their $14 billion cash bid. Would. Anbang has
:08:33. > :08:36.tried to buy this company three times before, unsuccessfully.
:08:37. > :08:39.According to reports, a lot of the reasons why this has fallen through
:08:40. > :08:44.is because there are questions over how they are going to finance the
:08:45. > :08:47.deal. $14 billion in cash, basically they are an insurance company with
:08:48. > :08:50.divisions in many other types of businesses but that is still a lot
:08:51. > :08:54.of cash to come up with and they need to see concrete proof before
:08:55. > :09:00.they go ahead. It is good news for Marriot, as you said because it is
:09:01. > :09:03.going to pay ?13.3 billion -- billion to take over Starwood to
:09:04. > :09:07.become the world's biggest hotel group with more than 1 million rooms
:09:08. > :09:12.but investors did not seem to cheered as chairs in both Starwood
:09:13. > :09:15.and Marriot fell 5% overnight. -- as shares.
:09:16. > :09:18.The Nikkei and the Topix in Asia sunk after a very negative report
:09:19. > :09:20.coming out about the mood amongst big Japanese corporates.
:09:21. > :09:23.The strong yen is making it very difficult for those stimulus
:09:24. > :09:24.measures from Shinzo Abe to take effect.
:09:25. > :09:25.Emerging-market stocks were retreating.
:09:26. > :09:29.Basically, it's profit-taking after a fairly good recovery.
:09:30. > :09:37.This is how Europe is opening up.
:09:38. > :09:39.Not so great, the Footsie down yet again.
:09:40. > :09:42.We've got lots of PMI data coming out from Europe over the course
:09:43. > :09:49.Michelle Fleury in New York has the details.
:09:50. > :09:55.Wall Street is awaiting the latest monthly jobs report from the US
:09:56. > :10:01.Labor Department. America's economy is expected to have added around
:10:02. > :10:06.200,000 jobs in March. This is modestly lower than separate's
:10:07. > :10:10.number of around 240,000. No changes forecast for the unemployment rate
:10:11. > :10:14.which is at an eight-year low. All of this points to a healthier
:10:15. > :10:18.picture at least on the labour markets. For investors, there's
:10:19. > :10:25.another number in the report that they will be paying close attention
:10:26. > :10:29.to, average hourly wages, to see any signs of wage inflation. On the
:10:30. > :10:32.earnings front, the once ubiquitous BlackBerry is expected to report
:10:33. > :10:36.another loss in its fourth quarter. The company is struggling to rebuild
:10:37. > :10:40.its business model as consumers have moved onto other smartphones from
:10:41. > :10:41.those running on android software to the iPhone.
:10:42. > :10:51.Joining us is Lawrence Gosling, editor-in-chief of Investment Week.
:10:52. > :10:59.Good to see you, happy Friday. Staying on the jobs numbers, are we
:11:00. > :11:04.at a point now where the focus was on the US jobs number every month
:11:05. > :11:10.but not so much focus on the number now. Should we be looking more for
:11:11. > :11:12.wage growth and productivity and inflation? Absolutely, we are
:11:13. > :11:15.getting to this point like we said a couple of years ago, where the
:11:16. > :11:18.Federal Reserve will be comfortable when the on implement number fell to
:11:19. > :11:23.a certain level. We have been there for a few months. There's a think
:11:24. > :11:31.all the participation rate which is behind the official numbers... I can
:11:32. > :11:34.talk to Victoria about this! Fine, you do that. That another key
:11:35. > :11:38.measure but you are right, wage growth and we are expecting to see
:11:39. > :11:41.some wage growth above the rate of inflation which is one of the
:11:42. > :11:47.reasons why the market is back talking about interest-rate hikes,
:11:48. > :11:51.potentially. Did we explain... The participation rate is at its lowest
:11:52. > :11:55.since 1978, I believe, in the US. It essentially means that it is not
:11:56. > :11:59.that people are not out there looking for jobs. People have just
:12:00. > :12:02.given up searching so although we have a low unemployment rate, an
:12:03. > :12:05.eight-year low, the situation is that people have just given up.
:12:06. > :12:11.There's a whole swathe of the middle of the US that is pretty
:12:12. > :12:14.disillusioned with the jobs market. Senior citizens have decided to
:12:15. > :12:18.retire early, maybe women who have gone out of the workforce because of
:12:19. > :12:21.modernity and perhaps students coming out who think they will go
:12:22. > :12:28.travelling instead or study bit more. Once that slows down, we get
:12:29. > :12:32.closer to full employment. And then we see wage growth begin to kick off
:12:33. > :12:36.and inflation becoming an issue in the US. About time. We are not going
:12:37. > :12:39.to get into the China factory numbers but we will pick that up
:12:40. > :12:40.when we talk to you in the newspapers.
:12:41. > :12:54.We meet the co-rounder who sold his 10%
:12:55. > :13:03.as the new National Living Wage comes into effect for those aged
:13:04. > :13:10.But could it mean job cuts, or even rising prices?
:13:11. > :13:17.Emma Simpson has been taking a look for Sheffield.
:13:18. > :13:21.They know all about low pay in this city. The jobs landscape has changed
:13:22. > :13:29.since the heyday of the steel industry. These days, too many
:13:30. > :13:32.people are earning too little. Chloe gets ?6.81 an hour, working
:13:33. > :13:36.part-time in a nursing home. I've got childcare and bills to pay for,
:13:37. > :13:41.making sure he is fed and warm. Making sure he is dressed. It is
:13:42. > :13:47.tough, yeah, and every penny is accounted for. How much difference
:13:48. > :13:51.will an extra ?30 per month make to you? It will make a big difference
:13:52. > :13:56.to me and Oliver. It will make a massive difference. What will you
:13:57. > :14:01.spend it on? Oliver, mainly. We are going in there, are we? She's off to
:14:02. > :14:08.work, dropping her son at nursery on the way. Hi, Oliver. It is thought
:14:09. > :14:11.almost a third of Sheffield's workers will benefit from the new
:14:12. > :14:13.National Living Wage ever the next four years, more than any other
:14:14. > :14:19.major UK city. Nursery worker Carly will earn around an extra ?900 per
:14:20. > :14:23.year. Financially, it means I will be able to sort myself out with my
:14:24. > :14:27.debts and things and hopefully be able to start being able to treat
:14:28. > :14:32.myself to a bit extra. Do you want me to fasten it up? But the owner is
:14:33. > :14:37.worried where the money is coming from. It's a lot of money to a small
:14:38. > :14:41.business like mine that is just set up. I'm going to struggle. I can't
:14:42. > :14:45.get rid of staff because I need the ratios for the amount of children we
:14:46. > :14:50.have got. I can't even get rid of staff so it has to be all the toys
:14:51. > :14:54.and the equipment. Anita is not the only employer grappling with how to
:14:55. > :15:00.pay the new living wage. This is the biggest change to low pay in years.
:15:01. > :15:03.It will benefit millions of workers but it is not clear how businesses
:15:04. > :15:06.will react and what the impact will be.
:15:07. > :15:14.A quick look at a couple of stories that are breaking now and this one
:15:15. > :15:17.is Sainsbury's bid for Home Retail Group has been approved, the board
:15:18. > :15:23.has formally recommended a takeover offer which values the company at
:15:24. > :15:24.about ?1.2 billion. Not a surprise, a 74% premium on the share price
:15:25. > :15:41.today. Our top story, Tesla has unveiled
:15:42. > :15:46.its much anticipated model three electric car, the lowest cost
:15:47. > :15:49.vehicle they have released to date. Staying with technology, there has
:15:50. > :15:53.been a lot going on this week. The FBI was able to break into the
:15:54. > :16:03.iPhone belonging to the San Bernardino gunman, ending a big
:16:04. > :16:05.battle with Apple. And Microsoft tried to restart their online
:16:06. > :16:07.experiment in artificial intelligence. It did not quite go so
:16:08. > :16:13.well. Rory Cellan-Jones is here. Glasses at the ready. Victoria, you
:16:14. > :16:19.know why she is wearing glasses, she has got a dodgy infection in her
:16:20. > :16:26.eye. It is to shield you all. There is maybe nothing even in conveyor.
:16:27. > :16:36.Starting with Tesla, you have spoken with Elon musk. Business make or
:16:37. > :16:39.break? Absolutely. I met him in Los Angeles and in the background were
:16:40. > :16:43.various cars draped in black sheets and I presume one of them was the
:16:44. > :16:48.model three. I asked him about that car and he said it was vital to his
:16:49. > :16:52.mission. He has a messianic vision of sustainable transport. He says we
:16:53. > :16:56.will not be able to do it unless they had an affordable car. What he
:16:57. > :17:03.did not say is and I will go bust if I don't get one out there. It is a
:17:04. > :17:08.good-looking thing. It is an extraordinary business, but always
:17:09. > :17:12.teetering on the edge of disaster. Moving on to talk about Microsoft,
:17:13. > :17:16.they had their development conference today and they were
:17:17. > :17:26.bleating -- they will be releasing these automated chat bots, but will
:17:27. > :17:31.be behaved this time? The idea is that if you are an Sky, you will
:17:32. > :17:37.have one of these chatbots in the background and it will be picking up
:17:38. > :17:41.travel plans and data, and it will say, would you like to book a hotel
:17:42. > :17:45.there? But what we know is that the current experiment went very badly
:17:46. > :17:50.wrong very quickly. Because there are some very bad people on the
:17:51. > :18:00.internet. It was like putting a five enrolled in the playground with
:18:01. > :18:06.teenagers. Wasn't it smoking a joint or something? It started saying, I
:18:07. > :18:10.am sorry, I am drunk, and it all went terribly wrong. A big day for
:18:11. > :18:14.Apple and we will explain that shortly but while we're talking
:18:15. > :18:21.about Apple, the FBI and the old iPhone case, it has got Apple a bit
:18:22. > :18:26.worried. I was talking earlier this week about how do we score this
:18:27. > :18:32.battle? It is a one all draw. Apple have not had to right at the
:18:33. > :18:37.software that the FBI demanded, but the FBI have apparently cracked the
:18:38. > :18:42.iPhone on their own, allegedly with an Israeli company. The problem with
:18:43. > :18:46.Apple is that they do not know how that was done and theoretically they
:18:47. > :18:50.have a problem because out there are hundreds of millions of people with
:18:51. > :18:54.iPhone is not quite knowing whether they are secure or not. There are
:18:55. > :19:01.these type of lapses of security all the time, and they are shared. There
:19:02. > :19:04.is a culture of sharing what you know about vulnerabilities so that
:19:05. > :19:10.they can be fixed but the FBI is not going to share with Apple. And once
:19:11. > :19:15.they have done it, I presume if another case arises, and the FBI
:19:16. > :19:23.wants to get into the phone... I don't think it is the case. It was
:19:24. > :19:28.this particular model, the 5C that they have cracked. It is not clear
:19:29. > :19:32.but it is unlikely that more advanced phones could be cracked in
:19:33. > :19:37.the same way. But we're looking at a fog of uncertainty. And we certainly
:19:38. > :19:47.don't know what forms terrorists are carrying. It is not just iPhones. It
:19:48. > :19:52.is obviously not. The other key thing is that the FBI and other
:19:53. > :19:57.authorities around the world will want to re-examine the case against
:19:58. > :20:01.encryption, which Apple and the technology industry is so keen to
:20:02. > :20:15.defend. Great stuff as always, Rory. Have a great weekend.
:20:16. > :20:18.40 years ago today three young men founded a computer company
:20:19. > :20:25.in an apartment in Mountain View California.
:20:26. > :20:28.The rest, as they say, is history - Apple is now worth $600 billion.
:20:29. > :20:31.We all know the story of the late Steve Jobs.
:20:32. > :20:34.The nerdier among us will also know about the flamboyant Steve Wozniak.
:20:35. > :20:37.But there is a reason few can name the third co-founder of Apple.
:20:38. > :20:39.Ronald Wayne was the man behind the famous logo,
:20:40. > :20:43.but sold his 10% stake early on for a few hundred dollars,
:20:44. > :20:46.in what proved to be one of the most expensive decisions in history.
:20:47. > :20:56.Dave Lee went to speak to him and found he had few regrets.
:20:57. > :21:03.Steve Jobs have this focus. Once he got an idea in his head, that was
:21:04. > :21:06.it. And you never wanted to be between him and where they wanted to
:21:07. > :21:12.go. He would wind up with footprints on your forehead. This is the
:21:13. > :21:17.contract that I personally typed up. He regarded me as something of a
:21:18. > :21:21.minor mental. Because I was somewhat more diplomatic than he was. There
:21:22. > :21:27.was a problem he was having at that time with Steve was a hack. I said,
:21:28. > :21:35.come over the house and we will have a chat. -- Steve Wozniak. It took me
:21:36. > :21:39.just an hour to explain that you cannot do that with a business
:21:40. > :21:44.enterprise. OK, fine, he bought into that and he understood. At that
:21:45. > :21:48.moment, Steve Jobs said, we will form a company and 12 days later, I
:21:49. > :21:54.went down to the registrar's office and had my name taken off the
:21:55. > :21:58.contract. Jobs and Wozniak did not have to nickels to rub together. I
:21:59. > :22:02.had a house, a bank account and a car and I was reachable. Months
:22:03. > :22:09.later I get a letter in the mail with a cheque for $1500. And the
:22:10. > :22:12.letter says, all you have got to do is sign away every possible interest
:22:13. > :22:18.you could have in the Apple Computer company, and the check is yours.
:22:19. > :22:24.Well, I figured that I had already done that and as far as I was
:22:25. > :22:31.concerned, it was found money. So I went ahead and signed. People will
:22:32. > :22:36.watch this and say, surely as Ron is about to go to sleep he must often
:22:37. > :22:41.think of what could have been with Apple. Do you? I knew what would
:22:42. > :22:46.have been if I had stayed with the company. I would have wound up
:22:47. > :22:49.heading a very large documentation department at the back of the
:22:50. > :22:55.building, shuffling papers for the next 20 years of my life and that
:22:56. > :22:58.was not the future I saw for myself. Lawrence is back to take a look at
:22:59. > :23:06.the papers. Enchanted gardening tweets. I was asking if anyone had
:23:07. > :23:12.any regrets. I wish I had invested in Apple and Microsoft in the 80s. I
:23:13. > :23:18.said so to the husband but he was not seeing the potential. Thanks for
:23:19. > :23:22.that. Hubby, you shouldn't let her invest. Let's talk through the
:23:23. > :23:35.papers. This is the front page of the Economist. This is all about the
:23:36. > :23:40.president of China, comparing his power to Mao and saying that we had
:23:41. > :23:45.not seen a more powerful or cultish figure in China since then. What are
:23:46. > :23:53.your thoughts on this? It is fascinating because when the
:23:54. > :23:57.president came to power, the cult of Mao, was one of the things he was
:23:58. > :24:01.talking about. And yet ironically, he has spent the last five years in
:24:02. > :24:06.particular, there has been a famous video viewed by 300 million people
:24:07. > :24:11.of uncle Xi, as he called, dancing with his wife in a way that is very
:24:12. > :24:17.reminiscent of German mark, and some of the antics you see in North
:24:18. > :24:21.Korea. He has developed this cult of the personality. In many ways, he
:24:22. > :24:30.has got stronger as he has failed to tackle some of these issues,
:24:31. > :24:33.including eroding corruption. It is fascinating, the way that the
:24:34. > :24:37.Economist has presented the image, it is very much like one of the old
:24:38. > :24:48.images of Mao that we remember. Talking about eroding corruption,
:24:49. > :24:56.one place that they have not tackle this, to segue... It is the
:24:57. > :24:58.pharmaceutical industry. The crackdown on the fake drugs that the
:24:59. > :25:10.average Chinese person needed. And that brings us to this story. GSK
:25:11. > :25:18.wants to relax intellectual copyright. GSK, there are many
:25:19. > :25:21.countries around the world that cannot afford to buy their drugs.
:25:22. > :25:27.They have said that they are not going to have the same licensors,
:25:28. > :25:30.and if it does, what it will do is give a cheap licence to a local
:25:31. > :25:36.drugs manufacturer. Those drugs can go on sale in those countries at a
:25:37. > :25:40.more affordable cost. But crucially it does not include China, India or
:25:41. > :25:45.Brazil, so what difference will this make? You could say that was a
:25:46. > :25:50.double standard. Those three countries have got huge parts of
:25:51. > :25:56.their population that need these cheap generic drugs. Have a great
:25:57. > :25:59.weekend. We will wrap it up. That is it from us. Plenty more business
:26:00. > :26:10.news throughout the day. Have a great weekend. Bye-bye.
:26:11. > :26:15.After the last few days, which have been pretty settled because of a
:26:16. > :26:20.ridge of high pressure, we're seeing a change to the weather, a
:26:21. > :26:21.significant change. This area of low pressure sending out a weather