27/07/2016

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:00:10. > :00:12.His is Business Live from BBC News with Ben Thompson

:00:13. > :00:15.Charging into the future as Tesla goes ga-ga for giga.

:00:16. > :00:18.The electric car pioneer will shortly open its $5 billion

:00:19. > :00:22.So the question is - are we now on the edge

:00:23. > :00:28.Live from London, that's the story we're getting

:00:29. > :00:46.electrified about today on the 27th of July.

:00:47. > :00:49.Powering the future - we get a sneaky peaky

:00:50. > :00:54.inside this massive building, Telsa's new $5 billion giga-factory.

:00:55. > :00:57.It's going to make hundreds of thousands of batteries

:00:58. > :00:59.and could even help to change the way you power your home.

:01:00. > :01:01.Also in the programme Germany's biggest bank -

:01:02. > :01:04.Deutsche Bank - has posted a proft, but only just.

:01:05. > :01:06.The banking giant made 20 million euros for the second

:01:07. > :01:09.quarter, 796 million for the same period last year.

:01:10. > :01:12.For those that are quick with their maths that's a 97%

:01:13. > :01:24.Also in the programme - do you ever get the feeling

:01:25. > :01:26.you could be doing something more worthwhile

:01:27. > :01:30.Later, we'll speak to a man who left his job as a global

:01:31. > :01:32.director at the technology giant Ericsson to become a minister

:01:33. > :01:45.As Hillary Clinton becomes the first female nomination for president, we

:01:46. > :01:50.want to know if there are any other glass ceilings you would want to see

:01:51. > :01:57.women break through. You can contact us.

:01:58. > :02:02.It might sound like something from a science fiction movie,

:02:03. > :02:06.but this week the Giga factory was unvailed.

:02:07. > :02:08.The gigantic building will produce batteries for electric car pioneer

:02:09. > :02:16.It will produce parts for the range of cars and home energy storage

:02:17. > :02:23.Currently only 16% of the final factory is finished and operational.

:02:24. > :02:25.The completed structure will have the world's

:02:26. > :02:31.largest footprint at 5.8 million square feet.

:02:32. > :02:33.You could fit around 100 football fields inside it and it's longer

:02:34. > :02:36.than the height of the Burj Khalifa - that's the world's

:02:37. > :02:45.Tesla says the $5 billion factory will help it cut battery

:02:46. > :02:51.The company needs the factory to produce batteries

:02:52. > :02:54.for the half-million electric vehicles that it's hoping to be

:02:55. > :03:00.But those lofty ambitions are still some way off.

:03:01. > :03:05.Tesla delivered just 50,580 vehicles last year.

:03:06. > :03:09.The company has also never made a profit,

:03:10. > :03:13.reporting a net loss of $889 million last year.

:03:14. > :03:17.However if they can get it right, the factory could help Tesla

:03:18. > :03:19.transform battery technology, which has consistently lagged behind

:03:20. > :03:24.Our North America Technology reporter Dave Lee has been

:03:25. > :03:26.taking a look around the brand new Giga factory.

:03:27. > :03:40.They call Reno the biggest little city in the world. But there is

:03:41. > :03:45.nothing little about this. The Giga factory spans 3,000 acres and around

:03:46. > :04:01.a thousand construction workers are working seven days a week to finish

:04:02. > :04:07.it. When Elon Musk set out his new plans, he said he needs more

:04:08. > :04:11.batteries. Much of the factory is still secret. But they wanted to

:04:12. > :04:19.show the world that they're raring to go and bosses say the factory is

:04:20. > :04:24.around two years ahead of schedule. Welcome to the factory. I believe we

:04:25. > :04:29.are on track to meet the half million in 2018. Long-term it will

:04:30. > :04:38.make sense to have a Giga factory in Europe and one in China. Proeblt one

:04:39. > :04:43.in India. -- probably one in India. Mr Musk has to answer safety

:04:44. > :04:47.concerns about the cars. Last month it was revealed the auto function

:04:48. > :04:56.was being investigated to see if it was responsible for the death of a

:04:57. > :05:00.driver. Do you have any regrets about rolling out autopilot? No, I

:05:01. > :05:08.think we did the right thing. We have the internal data to know that

:05:09. > :05:19.we improved the people's safety. Not just in fatalities, but in injuries.

:05:20. > :05:23.It is partly the enthusiasm of Elon Musk that keeps investors

:05:24. > :05:30.interested. The success of this will make or break him. 3,000 acres.

:05:31. > :05:32.Dr Peter Harrop, a leading expert on electric vehicles

:05:33. > :05:42.Great to have you with us in the studio. Let's start with this. When

:05:43. > :05:48.it is up and running and completed, it will be a big space, a lot of

:05:49. > :05:56.batty, it is Gos to make the half a -- it is good to make the batteries

:05:57. > :05:59.or the cars, the cars are whizz bang, but the batteries let it down.

:06:00. > :06:04.Are they improving the batteries? Yes, absolutely. But they have to

:06:05. > :06:09.take a risk on a risk. All the battery companies and there are ones

:06:10. > :06:15.putting in more capacity than Tesla and they have to take a lis bg to

:06:16. > :06:21.get your -- risk to get your car to have a battery and be affordable and

:06:22. > :06:25.run for many hundreds of miles, not one hundred miles, that is what we

:06:26. > :06:29.want, they have to change the chemistry of the battery and they

:06:30. > :06:32.have to change what they're doing while their running to produce more

:06:33. > :06:37.and they have to produce more, but they have to change the nature of

:06:38. > :06:43.the battery. Do you mean different chemicals? Yes, it is like making a

:06:44. > :06:46.different battery. On the run they're changing what they're

:06:47. > :06:56.making, Tesla is among others doing that. It has the backing of a

:06:57. > :07:02.gorilla called pan sonic. So there is a massive battle between the east

:07:03. > :07:11.Asians to become the biggest in batteries. This is just part of a

:07:12. > :07:18.bigger picture around the world, the actual battery industry is growing

:07:19. > :07:26.very fast. It is huge. In China, which is largely protected, the

:07:27. > :07:30.market, BYD is huge and is in a sense copying BYD in making

:07:31. > :07:37.excellent vehicles and battery, but it will do it better and we have LG

:07:38. > :07:43.in Korea putting in capacity all over the world, not just America.

:07:44. > :07:48.And so on. So there is a battle of giants. We called it the potential

:07:49. > :07:53.start of electrical revolution and changing the way we consume all of

:07:54. > :07:57.the things we do. Everything is batteries and freeing us from power

:07:58. > :08:01.points. That is a substantial change that could change how we do things?

:08:02. > :08:06.It is true and it is happening all at once. You have getting big

:08:07. > :08:11.batteries in ships and boats. They're in the bus passing you. That

:08:12. > :08:18.BYD I mentioned is one of the biggest in electric buses and they

:08:19. > :08:23.use more batteries in car in value. So they're coming in so fast that we

:08:24. > :08:28.are as analysts have quite a challenge in predicting whether

:08:29. > :08:33.there will be a famine or a feast. There could be a shortage, despite

:08:34. > :08:37.this, it is an amazing thing to say, there could be a shortage and other

:08:38. > :08:43.people are putting in Giga factories. Thank you. Some other

:08:44. > :08:48.stories for you today. Deutsche Bank posted a net

:08:49. > :08:51.profit of $22 million for the second quarter -

:08:52. > :08:53.substantially lower than the $875m for the same period last year,

:08:54. > :08:56.as low interest rates and volatile The bank has lost around 40%

:08:57. > :09:01.of its market value this year as concerns mount about its capital

:09:02. > :09:04.position and $14 billion in fines But the 15% fall in

:09:05. > :09:20.sales wasn't as bad as Apple sold 40.4 million iPhones

:09:21. > :09:23.in its third quarter, Demand for the tech giant's flagship

:09:24. > :09:31.product has been slowing faced with increased

:09:32. > :09:32.competition from rivals, slowing economic growth and users

:09:33. > :09:34.hanging onto existing Twitter has reported its slowest

:09:35. > :09:44.growth in quarterly revenues since floating on the stock

:09:45. > :09:48.market in 2013. The company is facing tough

:09:49. > :09:52.competition from other social media platforms,

:09:53. > :09:59.including Instagram and Snapchat. But it wasn't all bad

:10:00. > :10:01.news, the number of and that's an important

:10:02. > :10:04.gauge for advertisers. Twitter attracted 313 million

:10:05. > :10:06.users over the month, Asian markets got another

:10:07. > :10:16.boost on reports that Japanese Prime Minister Shinzo Abe

:10:17. > :10:19.is to announce a new stimulus Measures are likely to include

:10:20. > :10:32.spending by national and local governments,

:10:33. > :10:34.as well as loan programmes Mariko Oi is in Singapore and has

:10:35. > :10:44.the rest of the details. We would need. Let me ask you this,

:10:45. > :10:49.here they are, throwing the kitchen sink at this economy, more money

:10:50. > :10:58.going down the gurgleer and many will say what Japan needs is

:10:59. > :11:02.structural reforms. Indeed. As you say, some critics would argue extra

:11:03. > :11:09.money being printed is not going to directly help people to spend money,

:11:10. > :11:13.which what is Japan's economy needs and the local and national

:11:14. > :11:18.government spending money would help big businesses, but not ordinary

:11:19. > :11:24.consumers. But even though we have been anticipating a stimulus measure

:11:25. > :11:34.to be announced, the size of it is so huge that Japanese markets

:11:35. > :11:39.reacted positively, ending the day hay -- higher and people expect the

:11:40. > :11:47.central bank to be under more pressure to announce further

:11:48. > :11:54.stimulus tomorrow. While we have got you, let's talk about Nintendo, it

:11:55. > :12:00.has been in the news with Pokemon, but it has come out with not great

:12:01. > :12:07.numbers, but the numbers are backward looking. Pock Monday will

:12:08. > :12:12.have the -- Pokemon will have the influence going forward. Yes the

:12:13. > :12:22.figures are for between April and June. But the company had worned

:12:23. > :12:27.investors that the huge success of Pokemon would not impact this

:12:28. > :12:32.result. So investors expected that. They hope the Pokemon will be able

:12:33. > :12:35.to bring in more money and the company still expects to make money

:12:36. > :12:47.for the full year. Good stuff. Thank you. Here are the numbers.

:12:48. > :12:50.The Nikkei in Tokyo ending higher, boosted by reports of that

:12:51. > :12:51.28 trillion yen economic stimulus package to reflate

:12:52. > :12:55.At this stage, it's just speculation, and it's unclear how

:12:56. > :12:57.much will be actually be spent to directly boost growth.

:12:58. > :13:00.In the UK, we get the first look at UK GDP

:13:01. > :13:04.That mainly covers the period running up to the EU referendum -

:13:05. > :13:07.the three months to the end of June - but it could crucially give us

:13:08. > :13:10.a sense of whether the UK economy is entering Brexit negotiations

:13:11. > :13:13.and the upheaval of its departure from a position of economic strength

:13:14. > :13:16.We're expecting a figure between 0.3% and 0.5%.

:13:17. > :13:19.More on that in a moment, first Samira has the details about

:13:20. > :13:30.The Fed is likely to keep interest rates unchanged and policy makers

:13:31. > :13:36.want to reconcile positive data with a slow down in global growth.

:13:37. > :13:41.Several companies will report earnings, including Facebook and

:13:42. > :13:51.coca cola. Facebook is the world's largest social media service and it

:13:52. > :13:57.has been on a great run. Now Facebook is developing and investing

:13:58. > :14:06.in solutions for photo sharing and virtual reality. Coca cola, sales in

:14:07. > :14:11.America and Europe are expected to have remained strong and what

:14:12. > :14:22.investors will be keen to hear about is any impact from Britain's vote to

:14:23. > :14:32.leave the EU. Thank you. We are joined by a guest. Tom, the let's

:14:33. > :14:38.start with Arm, the chip-maker, the UK chip-maker, it has been in the

:14:39. > :14:42.news, a Japanese bank buying them for billions. But they're doing

:14:43. > :14:48.well. They have announced second quarter profits. Two things jump

:14:49. > :14:53.out, one is how profitable the business is, 270 million pounds of

:14:54. > :15:00.seams resulting in 130 million of profits. That is a fantastic margin

:15:01. > :15:06.and the second thing is if you add up the profits, soft bank is paying

:15:07. > :15:18.40 times the annual profits. But the pound has fallen, to soft bank it is

:15:19. > :15:23.cheap. It is a fascinating story to create these businesses, no we know

:15:24. > :15:30.that we are selling them off. Let's talk about GDP figures. We are

:15:31. > :15:37.expecting a snapshot but not the whole story for Brexit. These are

:15:38. > :15:40.until the end of June so we have a little bit but actually be is

:15:41. > :15:45.referred to a world that no longer exists. We expect around 0.5%

:15:46. > :15:55.growth, a fraction better than it was in the first quarter. But what

:15:56. > :15:57.matters is what happens after. Something we will talk about, I'm

:15:58. > :15:57.sure. From "communication"

:15:58. > :15:58.to "congregation". Later in the programme we speak

:15:59. > :16:02.to a man who left his job with the telecoms giant Ericsson

:16:03. > :16:04.to pursue a very different You're watching business live from

:16:05. > :16:11.BBC News. Britain's third-largest

:16:12. > :16:12.housebuilder, Taylor Wimpey, has published posted a 12 percent

:16:13. > :16:16.rise in first-half pre-tax profits The company said it was too

:16:17. > :16:25.soon to see how the June 23 Brexit vote would affect

:16:26. > :16:28.the housing market in the months ahead, but so far there had been no

:16:29. > :16:43.noticeable change in demand. Andrew Walker is in our business

:16:44. > :16:49.newsroom. No noticeable change yet but the yet is the crucial thing. It

:16:50. > :16:54.was quite a robust performance. About a quarter of ?1 billion worth

:16:55. > :17:02.of profit. But look what happened to the share price. We've got this

:17:03. > :17:04.decline. It has bounced back significantly but we're still

:17:05. > :17:11.looking at a share price that is 25% below where it was in the

:17:12. > :17:19.referendum. Investors are concerned this would be exposed if there were

:17:20. > :17:21.any wider fallout. But as you mentioned the chief executive says

:17:22. > :17:28.so far there has been no discernible impact. There is a period further

:17:29. > :17:43.into the future where it will come through. I want to speak about one

:17:44. > :17:50.of the biggest pharmaceutical companies, GlaxoSmithKline. The CEO

:17:51. > :17:57.was warning about Brexit and earlier they said, guess what, Brexit was

:17:58. > :18:05.not that bad, we will invest ?270 million in UK sites. Indeed. Three

:18:06. > :18:08.sites in the UK. This company tells you a very different story about the

:18:09. > :18:16.aftermath of the vote. Here we have the price going up. That partly

:18:17. > :18:22.reflects the fact that pharmaceutical companies are seen as

:18:23. > :18:27.defensive investment. People would still get sick, they would still

:18:28. > :18:31.need their products. A lot of their earnings are in foreign currencies

:18:32. > :18:39.when you factor in the fall in sterling that makes the profit worth

:18:40. > :18:51.more. Good stuff as always. Thank you very much. Here are the details

:18:52. > :19:00.on this story. You are watching business live and news of the

:19:01. > :19:06.GigaFactory. It's the home of electric vehicle

:19:07. > :19:08.giant Tesla as the firm promises to transform how we power our cars,

:19:09. > :19:11.our cities and our lives. And the new $5 billion giga-factory

:19:12. > :19:14.will be at the heart of it. We've been for a sneak peak -

:19:15. > :19:22.you can watch that again, 3000 acres, that is what it will

:19:23. > :19:28.cover. A quick look at the numbers for you. Looking pretty optimistic.

:19:29. > :19:33.Stimulus rumours helping boost the numbers from Japan. We will get the

:19:34. > :19:38.GDP figure and we will watch it closely.

:19:39. > :19:44.American central bank is meeting today. It is a big week.

:19:45. > :19:47.Have you ever spared a thought for the men and women who keep

:19:48. > :19:51.The men and women who work on cargo ships and vessels

:19:52. > :19:54.They spend weeks at sea, away from home, in strange

:19:55. > :19:57.and unfamiliar places and increasingly face threats

:19:58. > :20:02.Shipping is by far the most common method of moving

:20:03. > :20:07.90 per cent of all of the products used worldwide are

:20:08. > :20:11.The Sailors Society is a charity which provides

:20:12. > :20:14.the world's 1.5 million seafarers with services

:20:15. > :20:18.Many of those stationed at sea will find themselves away from home

:20:19. > :20:23.for between 9 to 12 months at a time.

:20:24. > :20:38.The organisation's chief executive is Stuart Rivers.

:20:39. > :20:45.Paint a picture of what it's like at sea for some of these sailors you

:20:46. > :20:53.help out. The dependency we have on the sea, we are supporting a

:20:54. > :21:03.merchant fleet of 70,000 ships, if you imagine the people on those

:21:04. > :21:09.ships are away from home for 9-12 months, facing bad weather, piracy,

:21:10. > :21:12.terrorism, when they come into port, quite often they just want a

:21:13. > :21:15.friendly face and someone to talk to who is going to understand the

:21:16. > :21:22.problems they face on a day-to-day basis. They cannot always come into

:21:23. > :21:26.port. I've spent a lot of time in the Middle East and it is easy to

:21:27. > :21:30.see ships anchored outside of port because they have no cargo. The

:21:31. > :21:36.people shipping that don't necessarily know who is on their

:21:37. > :21:45.ship. You end up with sailors on ships that are empty, without food

:21:46. > :21:50.or water or communication. Absolutely. The society are involved

:21:51. > :21:54.in situations where ships have been abandoned, perhaps the owner has

:21:55. > :21:58.filed for bankruptcy and the crew have been left to drift without the

:21:59. > :22:08.essentials like food and water to keep them going. You are a charity

:22:09. > :22:11.that supports the business that greases the wheels of the global

:22:12. > :22:21.economy but you still need to be funded. What is this about? Coming

:22:22. > :22:25.to that in a moment? We are very well supported by the industry

:22:26. > :22:30.itself and we work closely with shipping companies. When we hit

:22:31. > :22:36.points of recession and there are points on the shipping industry,

:22:37. > :22:40.that has an effect on our income. We are in the process of diversifying

:22:41. > :22:44.that income and we are launching our own brand of coffee, sourced from

:22:45. > :22:49.countries where we are working to support seafarers. This gives us the

:22:50. > :22:55.opportunity to say, you might not be able to afford to donate to us but

:22:56. > :23:04.by coffee. Thank you so much for coming in and best of luck. Really

:23:05. > :23:09.great charity. In a moment we will look through the business pages but

:23:10. > :23:16.first, here is a reminder of how you can get in touch with us.

:23:17. > :23:22.We will keep you up-to-date with all the latest details with insight and

:23:23. > :23:27.analysis from the BBC's team around the world. We want to hear from you

:23:28. > :23:39.as well. Get involved on the web page. You can find us on Facebook,

:23:40. > :23:51.BBC business news. We are there were you need to know. Tom is back. I am

:23:52. > :23:58.going to bleed that drive. This paper, the 19 most productive

:23:59. > :24:01.countries in the world. A new study? This looks at GDP per capita and

:24:02. > :24:06.compares it with how many hours on average people work in those

:24:07. > :24:12.countries. They pitted together and you end up with a positivity index.

:24:13. > :24:15.-- productivity. Some of the countries we don't think that

:24:16. > :24:19.productive like Italy and Spain are in the top 16 in the world. By

:24:20. > :24:25.global standards they are pretty productive. The other end of the

:24:26. > :24:37.table, we have Luxembourg at the top of the table, that tells us more

:24:38. > :24:40.about the type of industry in that country, financial services are

:24:41. > :24:48.relatively small in numbers, but they add huge value. Between number

:24:49. > :24:56.one and number two, 45 points in Luxembourg. It is a crazy

:24:57. > :25:04.difference. It is a reflection of the industry, which Luxembourg

:25:05. > :25:11.obviously focuses on. UK comes one place behind Iceland. Bit of a fever

:25:12. > :25:17.there. We will not delve weakly into that. And Australia is number three

:25:18. > :25:23.on the list! The most productive English-speaking nation in the

:25:24. > :25:31.world. If it is so productive, go back there... I wish! I want to talk

:25:32. > :25:37.about this one. If you commute to work on a bike, how about this? You

:25:38. > :25:43.cycle within the bass and pave the privilege. This seems like one of

:25:44. > :25:49.more ludicrous idea. You pay $30 for the privilege of getting tired on

:25:50. > :25:55.the bus. It keeps you away from the weather but you still get your keep

:25:56. > :26:01.fit regime. Thank you very much. One of the producers said he would do

:26:02. > :26:04.that. It says a lot about him! Thank you for your company today. We will

:26:05. > :26:08.do it all again tomorrow. Goodbye.