Browse content similar to 27/07/2016. Check below for episodes and series from the same categories and more!
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His is Business Live from BBC News with Ben Thompson | :00:10. | :00:12. | |
Charging into the future as Tesla goes ga-ga for giga. | :00:13. | :00:15. | |
The electric car pioneer will shortly open its $5 billion | :00:16. | :00:18. | |
So the question is - are we now on the edge | :00:19. | :00:22. | |
Live from London, that's the story we're getting | :00:23. | :00:28. | |
electrified about today on the 27th of July. | :00:29. | :00:46. | |
Powering the future - we get a sneaky peaky | :00:47. | :00:49. | |
inside this massive building, Telsa's new $5 billion giga-factory. | :00:50. | :00:54. | |
It's going to make hundreds of thousands of batteries | :00:55. | :00:57. | |
and could even help to change the way you power your home. | :00:58. | :00:59. | |
Also in the programme Germany's biggest bank - | :01:00. | :01:01. | |
Deutsche Bank - has posted a proft, but only just. | :01:02. | :01:04. | |
The banking giant made 20 million euros for the second | :01:05. | :01:06. | |
quarter, 796 million for the same period last year. | :01:07. | :01:09. | |
For those that are quick with their maths that's a 97% | :01:10. | :01:12. | |
Also in the programme - do you ever get the feeling | :01:13. | :01:24. | |
you could be doing something more worthwhile | :01:25. | :01:26. | |
Later, we'll speak to a man who left his job as a global | :01:27. | :01:30. | |
director at the technology giant Ericsson to become a minister | :01:31. | :01:32. | |
As Hillary Clinton becomes the first female nomination for president, we | :01:33. | :01:45. | |
want to know if there are any other glass ceilings you would want to see | :01:46. | :01:50. | |
women break through. You can contact us. | :01:51. | :01:57. | |
It might sound like something from a science fiction movie, | :01:58. | :02:02. | |
but this week the Giga factory was unvailed. | :02:03. | :02:06. | |
The gigantic building will produce batteries for electric car pioneer | :02:07. | :02:08. | |
It will produce parts for the range of cars and home energy storage | :02:09. | :02:16. | |
Currently only 16% of the final factory is finished and operational. | :02:17. | :02:23. | |
The completed structure will have the world's | :02:24. | :02:25. | |
largest footprint at 5.8 million square feet. | :02:26. | :02:31. | |
You could fit around 100 football fields inside it and it's longer | :02:32. | :02:33. | |
than the height of the Burj Khalifa - that's the world's | :02:34. | :02:36. | |
Tesla says the $5 billion factory will help it cut battery | :02:37. | :02:45. | |
The company needs the factory to produce batteries | :02:46. | :02:51. | |
for the half-million electric vehicles that it's hoping to be | :02:52. | :02:54. | |
But those lofty ambitions are still some way off. | :02:55. | :03:00. | |
Tesla delivered just 50,580 vehicles last year. | :03:01. | :03:05. | |
The company has also never made a profit, | :03:06. | :03:09. | |
reporting a net loss of $889 million last year. | :03:10. | :03:13. | |
However if they can get it right, the factory could help Tesla | :03:14. | :03:17. | |
transform battery technology, which has consistently lagged behind | :03:18. | :03:19. | |
Our North America Technology reporter Dave Lee has been | :03:20. | :03:24. | |
taking a look around the brand new Giga factory. | :03:25. | :03:26. | |
They call Reno the biggest little city in the world. But there is | :03:27. | :03:40. | |
nothing little about this. The Giga factory spans 3,000 acres and around | :03:41. | :03:45. | |
a thousand construction workers are working seven days a week to finish | :03:46. | :04:01. | |
it. When Elon Musk set out his new plans, he said he needs more | :04:02. | :04:07. | |
batteries. Much of the factory is still secret. But they wanted to | :04:08. | :04:11. | |
show the world that they're raring to go and bosses say the factory is | :04:12. | :04:19. | |
around two years ahead of schedule. Welcome to the factory. I believe we | :04:20. | :04:24. | |
are on track to meet the half million in 2018. Long-term it will | :04:25. | :04:29. | |
make sense to have a Giga factory in Europe and one in China. Proeblt one | :04:30. | :04:38. | |
in India. -- probably one in India. Mr Musk has to answer safety | :04:39. | :04:43. | |
concerns about the cars. Last month it was revealed the auto function | :04:44. | :04:47. | |
was being investigated to see if it was responsible for the death of a | :04:48. | :04:56. | |
driver. Do you have any regrets about rolling out autopilot? No, I | :04:57. | :05:00. | |
think we did the right thing. We have the internal data to know that | :05:01. | :05:08. | |
we improved the people's safety. Not just in fatalities, but in injuries. | :05:09. | :05:19. | |
It is partly the enthusiasm of Elon Musk that keeps investors | :05:20. | :05:23. | |
interested. The success of this will make or break him. 3,000 acres. | :05:24. | :05:30. | |
Dr Peter Harrop, a leading expert on electric vehicles | :05:31. | :05:32. | |
Great to have you with us in the studio. Let's start with this. When | :05:33. | :05:42. | |
it is up and running and completed, it will be a big space, a lot of | :05:43. | :05:48. | |
batty, it is Gos to make the half a -- it is good to make the batteries | :05:49. | :05:56. | |
or the cars, the cars are whizz bang, but the batteries let it down. | :05:57. | :05:59. | |
Are they improving the batteries? Yes, absolutely. But they have to | :06:00. | :06:04. | |
take a risk on a risk. All the battery companies and there are ones | :06:05. | :06:09. | |
putting in more capacity than Tesla and they have to take a lis bg to | :06:10. | :06:15. | |
get your -- risk to get your car to have a battery and be affordable and | :06:16. | :06:21. | |
run for many hundreds of miles, not one hundred miles, that is what we | :06:22. | :06:25. | |
want, they have to change the chemistry of the battery and they | :06:26. | :06:29. | |
have to change what they're doing while their running to produce more | :06:30. | :06:32. | |
and they have to produce more, but they have to change the nature of | :06:33. | :06:37. | |
the battery. Do you mean different chemicals? Yes, it is like making a | :06:38. | :06:43. | |
different battery. On the run they're changing what they're | :06:44. | :06:46. | |
making, Tesla is among others doing that. It has the backing of a | :06:47. | :06:56. | |
gorilla called pan sonic. So there is a massive battle between the east | :06:57. | :07:02. | |
Asians to become the biggest in batteries. This is just part of a | :07:03. | :07:11. | |
bigger picture around the world, the actual battery industry is growing | :07:12. | :07:18. | |
very fast. It is huge. In China, which is largely protected, the | :07:19. | :07:26. | |
market, BYD is huge and is in a sense copying BYD in making | :07:27. | :07:30. | |
excellent vehicles and battery, but it will do it better and we have LG | :07:31. | :07:37. | |
in Korea putting in capacity all over the world, not just America. | :07:38. | :07:43. | |
And so on. So there is a battle of giants. We called it the potential | :07:44. | :07:48. | |
start of electrical revolution and changing the way we consume all of | :07:49. | :07:53. | |
the things we do. Everything is batteries and freeing us from power | :07:54. | :07:57. | |
points. That is a substantial change that could change how we do things? | :07:58. | :08:01. | |
It is true and it is happening all at once. You have getting big | :08:02. | :08:06. | |
batteries in ships and boats. They're in the bus passing you. That | :08:07. | :08:11. | |
BYD I mentioned is one of the biggest in electric buses and they | :08:12. | :08:18. | |
use more batteries in car in value. So they're coming in so fast that we | :08:19. | :08:23. | |
are as analysts have quite a challenge in predicting whether | :08:24. | :08:28. | |
there will be a famine or a feast. There could be a shortage, despite | :08:29. | :08:33. | |
this, it is an amazing thing to say, there could be a shortage and other | :08:34. | :08:37. | |
people are putting in Giga factories. Thank you. Some other | :08:38. | :08:43. | |
stories for you today. Deutsche Bank posted a net | :08:44. | :08:48. | |
profit of $22 million for the second quarter - | :08:49. | :08:51. | |
substantially lower than the $875m for the same period last year, | :08:52. | :08:53. | |
as low interest rates and volatile The bank has lost around 40% | :08:54. | :08:56. | |
of its market value this year as concerns mount about its capital | :08:57. | :09:01. | |
position and $14 billion in fines But the 15% fall in | :09:02. | :09:04. | |
sales wasn't as bad as Apple sold 40.4 million iPhones | :09:05. | :09:20. | |
in its third quarter, Demand for the tech giant's flagship | :09:21. | :09:23. | |
product has been slowing faced with increased | :09:24. | :09:31. | |
competition from rivals, slowing economic growth and users | :09:32. | :09:32. | |
hanging onto existing Twitter has reported its slowest | :09:33. | :09:34. | |
growth in quarterly revenues since floating on the stock | :09:35. | :09:44. | |
market in 2013. The company is facing tough | :09:45. | :09:48. | |
competition from other social media platforms, | :09:49. | :09:52. | |
including Instagram and Snapchat. But it wasn't all bad | :09:53. | :09:59. | |
news, the number of and that's an important | :10:00. | :10:01. | |
gauge for advertisers. Twitter attracted 313 million | :10:02. | :10:04. | |
users over the month, Asian markets got another | :10:05. | :10:06. | |
boost on reports that Japanese Prime Minister Shinzo Abe | :10:07. | :10:16. | |
is to announce a new stimulus Measures are likely to include | :10:17. | :10:19. | |
spending by national and local governments, | :10:20. | :10:32. | |
as well as loan programmes Mariko Oi is in Singapore and has | :10:33. | :10:34. | |
the rest of the details. We would need. Let me ask you this, | :10:35. | :10:44. | |
here they are, throwing the kitchen sink at this economy, more money | :10:45. | :10:49. | |
going down the gurgleer and many will say what Japan needs is | :10:50. | :10:58. | |
structural reforms. Indeed. As you say, some critics would argue extra | :10:59. | :11:02. | |
money being printed is not going to directly help people to spend money, | :11:03. | :11:09. | |
which what is Japan's economy needs and the local and national | :11:10. | :11:13. | |
government spending money would help big businesses, but not ordinary | :11:14. | :11:18. | |
consumers. But even though we have been anticipating a stimulus measure | :11:19. | :11:24. | |
to be announced, the size of it is so huge that Japanese markets | :11:25. | :11:34. | |
reacted positively, ending the day hay -- higher and people expect the | :11:35. | :11:39. | |
central bank to be under more pressure to announce further | :11:40. | :11:47. | |
stimulus tomorrow. While we have got you, let's talk about Nintendo, it | :11:48. | :11:54. | |
has been in the news with Pokemon, but it has come out with not great | :11:55. | :12:00. | |
numbers, but the numbers are backward looking. Pock Monday will | :12:01. | :12:07. | |
have the -- Pokemon will have the influence going forward. Yes the | :12:08. | :12:12. | |
figures are for between April and June. But the company had worned | :12:13. | :12:22. | |
investors that the huge success of Pokemon would not impact this | :12:23. | :12:27. | |
result. So investors expected that. They hope the Pokemon will be able | :12:28. | :12:32. | |
to bring in more money and the company still expects to make money | :12:33. | :12:35. | |
for the full year. Good stuff. Thank you. Here are the numbers. | :12:36. | :12:47. | |
The Nikkei in Tokyo ending higher, boosted by reports of that | :12:48. | :12:50. | |
28 trillion yen economic stimulus package to reflate | :12:51. | :12:51. | |
At this stage, it's just speculation, and it's unclear how | :12:52. | :12:55. | |
much will be actually be spent to directly boost growth. | :12:56. | :12:57. | |
In the UK, we get the first look at UK GDP | :12:58. | :13:00. | |
That mainly covers the period running up to the EU referendum - | :13:01. | :13:04. | |
the three months to the end of June - but it could crucially give us | :13:05. | :13:07. | |
a sense of whether the UK economy is entering Brexit negotiations | :13:08. | :13:10. | |
and the upheaval of its departure from a position of economic strength | :13:11. | :13:13. | |
We're expecting a figure between 0.3% and 0.5%. | :13:14. | :13:16. | |
More on that in a moment, first Samira has the details about | :13:17. | :13:19. | |
The Fed is likely to keep interest rates unchanged and policy makers | :13:20. | :13:30. | |
want to reconcile positive data with a slow down in global growth. | :13:31. | :13:36. | |
Several companies will report earnings, including Facebook and | :13:37. | :13:41. | |
coca cola. Facebook is the world's largest social media service and it | :13:42. | :13:51. | |
has been on a great run. Now Facebook is developing and investing | :13:52. | :13:57. | |
in solutions for photo sharing and virtual reality. Coca cola, sales in | :13:58. | :14:06. | |
America and Europe are expected to have remained strong and what | :14:07. | :14:11. | |
investors will be keen to hear about is any impact from Britain's vote to | :14:12. | :14:22. | |
leave the EU. Thank you. We are joined by a guest. Tom, the let's | :14:23. | :14:32. | |
start with Arm, the chip-maker, the UK chip-maker, it has been in the | :14:33. | :14:38. | |
news, a Japanese bank buying them for billions. But they're doing | :14:39. | :14:42. | |
well. They have announced second quarter profits. Two things jump | :14:43. | :14:48. | |
out, one is how profitable the business is, 270 million pounds of | :14:49. | :14:53. | |
seams resulting in 130 million of profits. That is a fantastic margin | :14:54. | :15:00. | |
and the second thing is if you add up the profits, soft bank is paying | :15:01. | :15:06. | |
40 times the annual profits. But the pound has fallen, to soft bank it is | :15:07. | :15:18. | |
cheap. It is a fascinating story to create these businesses, no we know | :15:19. | :15:23. | |
that we are selling them off. Let's talk about GDP figures. We are | :15:24. | :15:30. | |
expecting a snapshot but not the whole story for Brexit. These are | :15:31. | :15:37. | |
until the end of June so we have a little bit but actually be is | :15:38. | :15:40. | |
referred to a world that no longer exists. We expect around 0.5% | :15:41. | :15:45. | |
growth, a fraction better than it was in the first quarter. But what | :15:46. | :15:55. | |
matters is what happens after. Something we will talk about, I'm | :15:56. | :15:57. | |
sure. From "communication" | :15:58. | :15:57. | |
to "congregation". Later in the programme we speak | :15:58. | :15:58. | |
to a man who left his job with the telecoms giant Ericsson | :15:59. | :16:02. | |
to pursue a very different You're watching business live from | :16:03. | :16:04. | |
BBC News. Britain's third-largest | :16:05. | :16:11. | |
housebuilder, Taylor Wimpey, has published posted a 12 percent | :16:12. | :16:12. | |
rise in first-half pre-tax profits The company said it was too | :16:13. | :16:16. | |
soon to see how the June 23 Brexit vote would affect | :16:17. | :16:25. | |
the housing market in the months ahead, but so far there had been no | :16:26. | :16:28. | |
noticeable change in demand. Andrew Walker is in our business | :16:29. | :16:43. | |
newsroom. No noticeable change yet but the yet is the crucial thing. It | :16:44. | :16:49. | |
was quite a robust performance. About a quarter of ?1 billion worth | :16:50. | :16:54. | |
of profit. But look what happened to the share price. We've got this | :16:55. | :17:02. | |
decline. It has bounced back significantly but we're still | :17:03. | :17:04. | |
looking at a share price that is 25% below where it was in the | :17:05. | :17:11. | |
referendum. Investors are concerned this would be exposed if there were | :17:12. | :17:19. | |
any wider fallout. But as you mentioned the chief executive says | :17:20. | :17:21. | |
so far there has been no discernible impact. There is a period further | :17:22. | :17:28. | |
into the future where it will come through. I want to speak about one | :17:29. | :17:43. | |
of the biggest pharmaceutical companies, GlaxoSmithKline. The CEO | :17:44. | :17:50. | |
was warning about Brexit and earlier they said, guess what, Brexit was | :17:51. | :17:57. | |
not that bad, we will invest ?270 million in UK sites. Indeed. Three | :17:58. | :18:05. | |
sites in the UK. This company tells you a very different story about the | :18:06. | :18:08. | |
aftermath of the vote. Here we have the price going up. That partly | :18:09. | :18:16. | |
reflects the fact that pharmaceutical companies are seen as | :18:17. | :18:22. | |
defensive investment. People would still get sick, they would still | :18:23. | :18:27. | |
need their products. A lot of their earnings are in foreign currencies | :18:28. | :18:31. | |
when you factor in the fall in sterling that makes the profit worth | :18:32. | :18:39. | |
more. Good stuff as always. Thank you very much. Here are the details | :18:40. | :18:51. | |
on this story. You are watching business live and news of the | :18:52. | :19:00. | |
GigaFactory. It's the home of electric vehicle | :19:01. | :19:06. | |
giant Tesla as the firm promises to transform how we power our cars, | :19:07. | :19:08. | |
our cities and our lives. And the new $5 billion giga-factory | :19:09. | :19:11. | |
will be at the heart of it. We've been for a sneak peak - | :19:12. | :19:14. | |
you can watch that again, 3000 acres, that is what it will | :19:15. | :19:22. | |
cover. A quick look at the numbers for you. Looking pretty optimistic. | :19:23. | :19:28. | |
Stimulus rumours helping boost the numbers from Japan. We will get the | :19:29. | :19:33. | |
GDP figure and we will watch it closely. | :19:34. | :19:38. | |
American central bank is meeting today. It is a big week. | :19:39. | :19:44. | |
Have you ever spared a thought for the men and women who keep | :19:45. | :19:47. | |
The men and women who work on cargo ships and vessels | :19:48. | :19:51. | |
They spend weeks at sea, away from home, in strange | :19:52. | :19:54. | |
and unfamiliar places and increasingly face threats | :19:55. | :19:57. | |
Shipping is by far the most common method of moving | :19:58. | :20:02. | |
90 per cent of all of the products used worldwide are | :20:03. | :20:07. | |
The Sailors Society is a charity which provides | :20:08. | :20:11. | |
the world's 1.5 million seafarers with services | :20:12. | :20:14. | |
Many of those stationed at sea will find themselves away from home | :20:15. | :20:18. | |
for between 9 to 12 months at a time. | :20:19. | :20:23. | |
The organisation's chief executive is Stuart Rivers. | :20:24. | :20:38. | |
Paint a picture of what it's like at sea for some of these sailors you | :20:39. | :20:45. | |
help out. The dependency we have on the sea, we are supporting a | :20:46. | :20:53. | |
merchant fleet of 70,000 ships, if you imagine the people on those | :20:54. | :21:03. | |
ships are away from home for 9-12 months, facing bad weather, piracy, | :21:04. | :21:09. | |
terrorism, when they come into port, quite often they just want a | :21:10. | :21:12. | |
friendly face and someone to talk to who is going to understand the | :21:13. | :21:15. | |
problems they face on a day-to-day basis. They cannot always come into | :21:16. | :21:22. | |
port. I've spent a lot of time in the Middle East and it is easy to | :21:23. | :21:26. | |
see ships anchored outside of port because they have no cargo. The | :21:27. | :21:30. | |
people shipping that don't necessarily know who is on their | :21:31. | :21:36. | |
ship. You end up with sailors on ships that are empty, without food | :21:37. | :21:45. | |
or water or communication. Absolutely. The society are involved | :21:46. | :21:50. | |
in situations where ships have been abandoned, perhaps the owner has | :21:51. | :21:54. | |
filed for bankruptcy and the crew have been left to drift without the | :21:55. | :21:58. | |
essentials like food and water to keep them going. You are a charity | :21:59. | :22:08. | |
that supports the business that greases the wheels of the global | :22:09. | :22:11. | |
economy but you still need to be funded. What is this about? Coming | :22:12. | :22:21. | |
to that in a moment? We are very well supported by the industry | :22:22. | :22:25. | |
itself and we work closely with shipping companies. When we hit | :22:26. | :22:30. | |
points of recession and there are points on the shipping industry, | :22:31. | :22:36. | |
that has an effect on our income. We are in the process of diversifying | :22:37. | :22:40. | |
that income and we are launching our own brand of coffee, sourced from | :22:41. | :22:44. | |
countries where we are working to support seafarers. This gives us the | :22:45. | :22:49. | |
opportunity to say, you might not be able to afford to donate to us but | :22:50. | :22:55. | |
by coffee. Thank you so much for coming in and best of luck. Really | :22:56. | :23:04. | |
great charity. In a moment we will look through the business pages but | :23:05. | :23:09. | |
first, here is a reminder of how you can get in touch with us. | :23:10. | :23:16. | |
We will keep you up-to-date with all the latest details with insight and | :23:17. | :23:22. | |
analysis from the BBC's team around the world. We want to hear from you | :23:23. | :23:27. | |
as well. Get involved on the web page. You can find us on Facebook, | :23:28. | :23:39. | |
BBC business news. We are there were you need to know. Tom is back. I am | :23:40. | :23:51. | |
going to bleed that drive. This paper, the 19 most productive | :23:52. | :23:58. | |
countries in the world. A new study? This looks at GDP per capita and | :23:59. | :24:01. | |
compares it with how many hours on average people work in those | :24:02. | :24:06. | |
countries. They pitted together and you end up with a positivity index. | :24:07. | :24:12. | |
-- productivity. Some of the countries we don't think that | :24:13. | :24:15. | |
productive like Italy and Spain are in the top 16 in the world. By | :24:16. | :24:19. | |
global standards they are pretty productive. The other end of the | :24:20. | :24:25. | |
table, we have Luxembourg at the top of the table, that tells us more | :24:26. | :24:37. | |
about the type of industry in that country, financial services are | :24:38. | :24:40. | |
relatively small in numbers, but they add huge value. Between number | :24:41. | :24:48. | |
one and number two, 45 points in Luxembourg. It is a crazy | :24:49. | :24:56. | |
difference. It is a reflection of the industry, which Luxembourg | :24:57. | :25:04. | |
obviously focuses on. UK comes one place behind Iceland. Bit of a fever | :25:05. | :25:11. | |
there. We will not delve weakly into that. And Australia is number three | :25:12. | :25:17. | |
on the list! The most productive English-speaking nation in the | :25:18. | :25:23. | |
world. If it is so productive, go back there... I wish! I want to talk | :25:24. | :25:31. | |
about this one. If you commute to work on a bike, how about this? You | :25:32. | :25:37. | |
cycle within the bass and pave the privilege. This seems like one of | :25:38. | :25:43. | |
more ludicrous idea. You pay $30 for the privilege of getting tired on | :25:44. | :25:49. | |
the bus. It keeps you away from the weather but you still get your keep | :25:50. | :25:55. | |
fit regime. Thank you very much. One of the producers said he would do | :25:56. | :26:01. | |
that. It says a lot about him! Thank you for your company today. We will | :26:02. | :26:04. | |
do it all again tomorrow. Goodbye. | :26:05. | :26:08. |