27/07/2016 BBC Business Live


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His is Business Live from BBC News with Ben Thompson


Charging into the future as Tesla goes ga-ga for giga.


The electric car pioneer will shortly open its $5 billion


So the question is - are we now on the edge


Live from London, that's the story we're getting


electrified about today on the 27th of July.


Powering the future - we get a sneaky peaky


inside this massive building, Telsa's new $5 billion giga-factory.


It's going to make hundreds of thousands of batteries


and could even help to change the way you power your home.


Also in the programme Germany's biggest bank -


Deutsche Bank - has posted a proft, but only just.


The banking giant made 20 million euros for the second


quarter, 796 million for the same period last year.


For those that are quick with their maths that's a 97%


Also in the programme - do you ever get the feeling


you could be doing something more worthwhile


Later, we'll speak to a man who left his job as a global


director at the technology giant Ericsson to become a minister


As Hillary Clinton becomes the first female nomination for president, we


want to know if there are any other glass ceilings you would want to see


women break through. You can contact us.


It might sound like something from a science fiction movie,


but this week the Giga factory was unvailed.


The gigantic building will produce batteries for electric car pioneer


It will produce parts for the range of cars and home energy storage


Currently only 16% of the final factory is finished and operational.


The completed structure will have the world's


largest footprint at 5.8 million square feet.


You could fit around 100 football fields inside it and it's longer


than the height of the Burj Khalifa - that's the world's


Tesla says the $5 billion factory will help it cut battery


The company needs the factory to produce batteries


for the half-million electric vehicles that it's hoping to be


But those lofty ambitions are still some way off.


Tesla delivered just 50,580 vehicles last year.


The company has also never made a profit,


reporting a net loss of $889 million last year.


However if they can get it right, the factory could help Tesla


transform battery technology, which has consistently lagged behind


Our North America Technology reporter Dave Lee has been


taking a look around the brand new Giga factory.


They call Reno the biggest little city in the world. But there is


nothing little about this. The Giga factory spans 3,000 acres and around


a thousand construction workers are working seven days a week to finish


it. When Elon Musk set out his new plans, he said he needs more


batteries. Much of the factory is still secret. But they wanted to


show the world that they're raring to go and bosses say the factory is


around two years ahead of schedule. Welcome to the factory. I believe we


are on track to meet the half million in 2018. Long-term it will


make sense to have a Giga factory in Europe and one in China. Proeblt one


in India. -- probably one in India. Mr Musk has to answer safety


concerns about the cars. Last month it was revealed the auto function


was being investigated to see if it was responsible for the death of a


driver. Do you have any regrets about rolling out autopilot? No, I


think we did the right thing. We have the internal data to know that


we improved the people's safety. Not just in fatalities, but in injuries.


It is partly the enthusiasm of Elon Musk that keeps investors


interested. The success of this will make or break him. 3,000 acres.


Dr Peter Harrop, a leading expert on electric vehicles


Great to have you with us in the studio. Let's start with this. When


it is up and running and completed, it will be a big space, a lot of


batty, it is Gos to make the half a -- it is good to make the batteries


or the cars, the cars are whizz bang, but the batteries let it down.


Are they improving the batteries? Yes, absolutely. But they have to


take a risk on a risk. All the battery companies and there are ones


putting in more capacity than Tesla and they have to take a lis bg to


get your -- risk to get your car to have a battery and be affordable and


run for many hundreds of miles, not one hundred miles, that is what we


want, they have to change the chemistry of the battery and they


have to change what they're doing while their running to produce more


and they have to produce more, but they have to change the nature of


the battery. Do you mean different chemicals? Yes, it is like making a


different battery. On the run they're changing what they're


making, Tesla is among others doing that. It has the backing of a


gorilla called pan sonic. So there is a massive battle between the east


Asians to become the biggest in batteries. This is just part of a


bigger picture around the world, the actual battery industry is growing


very fast. It is huge. In China, which is largely protected, the


market, BYD is huge and is in a sense copying BYD in making


excellent vehicles and battery, but it will do it better and we have LG


in Korea putting in capacity all over the world, not just America.


And so on. So there is a battle of giants. We called it the potential


start of electrical revolution and changing the way we consume all of


the things we do. Everything is batteries and freeing us from power


points. That is a substantial change that could change how we do things?


It is true and it is happening all at once. You have getting big


batteries in ships and boats. They're in the bus passing you. That


BYD I mentioned is one of the biggest in electric buses and they


use more batteries in car in value. So they're coming in so fast that we


are as analysts have quite a challenge in predicting whether


there will be a famine or a feast. There could be a shortage, despite


this, it is an amazing thing to say, there could be a shortage and other


people are putting in Giga factories. Thank you. Some other


stories for you today. Deutsche Bank posted a net


profit of $22 million for the second quarter -


substantially lower than the $875m for the same period last year,


as low interest rates and volatile The bank has lost around 40%


of its market value this year as concerns mount about its capital


position and $14 billion in fines But the 15% fall in


sales wasn't as bad as Apple sold 40.4 million iPhones


in its third quarter, Demand for the tech giant's flagship


product has been slowing faced with increased


competition from rivals, slowing economic growth and users


hanging onto existing Twitter has reported its slowest


growth in quarterly revenues since floating on the stock


market in 2013. The company is facing tough


competition from other social media platforms,


including Instagram and Snapchat. But it wasn't all bad


news, the number of and that's an important


gauge for advertisers. Twitter attracted 313 million


users over the month, Asian markets got another


boost on reports that Japanese Prime Minister Shinzo Abe


is to announce a new stimulus Measures are likely to include


spending by national and local governments,


as well as loan programmes Mariko Oi is in Singapore and has


the rest of the details. We would need. Let me ask you this,


here they are, throwing the kitchen sink at this economy, more money


going down the gurgleer and many will say what Japan needs is


structural reforms. Indeed. As you say, some critics would argue extra


money being printed is not going to directly help people to spend money,


which what is Japan's economy needs and the local and national


government spending money would help big businesses, but not ordinary


consumers. But even though we have been anticipating a stimulus measure


to be announced, the size of it is so huge that Japanese markets


reacted positively, ending the day hay -- higher and people expect the


central bank to be under more pressure to announce further


stimulus tomorrow. While we have got you, let's talk about Nintendo, it


has been in the news with Pokemon, but it has come out with not great


numbers, but the numbers are backward looking. Pock Monday will


have the -- Pokemon will have the influence going forward. Yes the


figures are for between April and June. But the company had worned


investors that the huge success of Pokemon would not impact this


result. So investors expected that. They hope the Pokemon will be able


to bring in more money and the company still expects to make money


for the full year. Good stuff. Thank you. Here are the numbers.


The Nikkei in Tokyo ending higher, boosted by reports of that


28 trillion yen economic stimulus package to reflate


At this stage, it's just speculation, and it's unclear how


much will be actually be spent to directly boost growth.


In the UK, we get the first look at UK GDP


That mainly covers the period running up to the EU referendum -


the three months to the end of June - but it could crucially give us


a sense of whether the UK economy is entering Brexit negotiations


and the upheaval of its departure from a position of economic strength


We're expecting a figure between 0.3% and 0.5%.


More on that in a moment, first Samira has the details about


The Fed is likely to keep interest rates unchanged and policy makers


want to reconcile positive data with a slow down in global growth.


Several companies will report earnings, including Facebook and


coca cola. Facebook is the world's largest social media service and it


has been on a great run. Now Facebook is developing and investing


in solutions for photo sharing and virtual reality. Coca cola, sales in


America and Europe are expected to have remained strong and what


investors will be keen to hear about is any impact from Britain's vote to


leave the EU. Thank you. We are joined by a guest. Tom, the let's


start with Arm, the chip-maker, the UK chip-maker, it has been in the


news, a Japanese bank buying them for billions. But they're doing


well. They have announced second quarter profits. Two things jump


out, one is how profitable the business is, 270 million pounds of


seams resulting in 130 million of profits. That is a fantastic margin


and the second thing is if you add up the profits, soft bank is paying


40 times the annual profits. But the pound has fallen, to soft bank it is


cheap. It is a fascinating story to create these businesses, no we know


that we are selling them off. Let's talk about GDP figures. We are


expecting a snapshot but not the whole story for Brexit. These are


until the end of June so we have a little bit but actually be is


referred to a world that no longer exists. We expect around 0.5%


growth, a fraction better than it was in the first quarter. But what


matters is what happens after. Something we will talk about, I'm


sure. From "communication"


to "congregation". Later in the programme we speak


to a man who left his job with the telecoms giant Ericsson


to pursue a very different You're watching business live from


BBC News. Britain's third-largest


housebuilder, Taylor Wimpey, has published posted a 12 percent


rise in first-half pre-tax profits The company said it was too


soon to see how the June 23 Brexit vote would affect


the housing market in the months ahead, but so far there had been no


noticeable change in demand. Andrew Walker is in our business


newsroom. No noticeable change yet but the yet is the crucial thing. It


was quite a robust performance. About a quarter of ?1 billion worth


of profit. But look what happened to the share price. We've got this


decline. It has bounced back significantly but we're still


looking at a share price that is 25% below where it was in the


referendum. Investors are concerned this would be exposed if there were


any wider fallout. But as you mentioned the chief executive says


so far there has been no discernible impact. There is a period further


into the future where it will come through. I want to speak about one


of the biggest pharmaceutical companies, GlaxoSmithKline. The CEO


was warning about Brexit and earlier they said, guess what, Brexit was


not that bad, we will invest ?270 million in UK sites. Indeed. Three


sites in the UK. This company tells you a very different story about the


aftermath of the vote. Here we have the price going up. That partly


reflects the fact that pharmaceutical companies are seen as


defensive investment. People would still get sick, they would still


need their products. A lot of their earnings are in foreign currencies


when you factor in the fall in sterling that makes the profit worth


more. Good stuff as always. Thank you very much. Here are the details


on this story. You are watching business live and news of the


GigaFactory. It's the home of electric vehicle


giant Tesla as the firm promises to transform how we power our cars,


our cities and our lives. And the new $5 billion giga-factory


will be at the heart of it. We've been for a sneak peak -


you can watch that again, 3000 acres, that is what it will


cover. A quick look at the numbers for you. Looking pretty optimistic.


Stimulus rumours helping boost the numbers from Japan. We will get the


GDP figure and we will watch it closely.


American central bank is meeting today. It is a big week.


Have you ever spared a thought for the men and women who keep


The men and women who work on cargo ships and vessels


They spend weeks at sea, away from home, in strange


and unfamiliar places and increasingly face threats


Shipping is by far the most common method of moving


90 per cent of all of the products used worldwide are


The Sailors Society is a charity which provides


the world's 1.5 million seafarers with services


Many of those stationed at sea will find themselves away from home


for between 9 to 12 months at a time.


The organisation's chief executive is Stuart Rivers.


Paint a picture of what it's like at sea for some of these sailors you


help out. The dependency we have on the sea, we are supporting a


merchant fleet of 70,000 ships, if you imagine the people on those


ships are away from home for 9-12 months, facing bad weather, piracy,


terrorism, when they come into port, quite often they just want a


friendly face and someone to talk to who is going to understand the


problems they face on a day-to-day basis. They cannot always come into


port. I've spent a lot of time in the Middle East and it is easy to


see ships anchored outside of port because they have no cargo. The


people shipping that don't necessarily know who is on their


ship. You end up with sailors on ships that are empty, without food


or water or communication. Absolutely. The society are involved


in situations where ships have been abandoned, perhaps the owner has


filed for bankruptcy and the crew have been left to drift without the


essentials like food and water to keep them going. You are a charity


that supports the business that greases the wheels of the global


economy but you still need to be funded. What is this about? Coming


to that in a moment? We are very well supported by the industry


itself and we work closely with shipping companies. When we hit


points of recession and there are points on the shipping industry,


that has an effect on our income. We are in the process of diversifying


that income and we are launching our own brand of coffee, sourced from


countries where we are working to support seafarers. This gives us the


opportunity to say, you might not be able to afford to donate to us but


by coffee. Thank you so much for coming in and best of luck. Really


great charity. In a moment we will look through the business pages but


first, here is a reminder of how you can get in touch with us.


We will keep you up-to-date with all the latest details with insight and


analysis from the BBC's team around the world. We want to hear from you


as well. Get involved on the web page. You can find us on Facebook,


BBC business news. We are there were you need to know. Tom is back. I am


going to bleed that drive. This paper, the 19 most productive


countries in the world. A new study? This looks at GDP per capita and


compares it with how many hours on average people work in those


countries. They pitted together and you end up with a positivity index.


-- productivity. Some of the countries we don't think that


productive like Italy and Spain are in the top 16 in the world. By


global standards they are pretty productive. The other end of the


table, we have Luxembourg at the top of the table, that tells us more


about the type of industry in that country, financial services are


relatively small in numbers, but they add huge value. Between number


one and number two, 45 points in Luxembourg. It is a crazy


difference. It is a reflection of the industry, which Luxembourg


obviously focuses on. UK comes one place behind Iceland. Bit of a fever


there. We will not delve weakly into that. And Australia is number three


on the list! The most productive English-speaking nation in the


world. If it is so productive, go back there... I wish! I want to talk


about this one. If you commute to work on a bike, how about this? You


cycle within the bass and pave the privilege. This seems like one of


more ludicrous idea. You pay $30 for the privilege of getting tired on


the bus. It keeps you away from the weather but you still get your keep


fit regime. Thank you very much. One of the producers said he would do


that. It says a lot about him! Thank you for your company today. We will


do it all again tomorrow. Goodbye.


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