:00:00. > :00:08.This is Business Live from BBC News with Ben Thompson and Sally Bundock.
:00:09. > :00:14.The Tech giant launches the iPhone 7 to much fanfare over its features,
:00:15. > :00:19.but is it enough to revive slowing sales?
:00:20. > :00:38.Live from London, that's our top story on Thursday 8th September.
:00:39. > :00:42.Apple's new iphone7 has been revealed.
:00:43. > :00:45.It will be water resistant, have a long battery life,
:00:46. > :00:55.Is it enough to put the shine back on Apple's core business? We will
:00:56. > :00:57.find out. Also in the programme: US firm
:00:58. > :00:59.Liberty Media confirms it's buying racing business Formula 1
:01:00. > :01:02.in an 8 billion dollar deal, ending years of speculation
:01:03. > :01:07.about ownership of the company. Could a little American and let's
:01:08. > :01:08.bring back the punters to the global brand?
:01:09. > :01:11.And ahead of a meeting of the European Central Bank,
:01:12. > :01:15.Today sees the bank's first policy decision since the Bank of England
:01:16. > :01:20.Toasting to future success - we get the inside track on a booze
:01:21. > :01:23.business that's trying to turn the company behind Lambrini
:01:24. > :01:29.The boss of Halewood Wines and Spirits will be here to offer
:01:30. > :01:36.Today we want to know, headphone jack or no headphone jack?
:01:37. > :01:38.Is Apple right to ditch the traditional connecter?
:01:39. > :01:41.Is the new iPhone enough to boost sales for Apple?
:01:42. > :01:55.So many of you have been in touch already. You know what to do.
:01:56. > :01:57.Keep your comments coming in about this story.
:01:58. > :02:00.We start in San Francisco, where Apple has unveiled its latest
:02:01. > :02:04.It's water resistant, with a faster processor and better
:02:05. > :02:07.camera, more memory and improved battery life.
:02:08. > :02:11.The big change - which was widely rumoured in advance -
:02:12. > :02:14.is that Apple is ditching the traditional headphone socket,
:02:15. > :02:17.to encourage buyers to invest in expensive
:02:18. > :02:24.Apart from that - say the critics - it's the same old formula,
:02:25. > :02:30.As of this summer Apple has sold more than a billion iPhones since it
:02:31. > :02:34.launched the first model almost a decade ago.
:02:35. > :02:37.But iPhone sales are starting to slow.
:02:38. > :02:40.Sales have actually fallen for the last two quarters.
:02:41. > :02:44.In the three months to June, they were down 15% on last year.
:02:45. > :02:48.The smartphone market is slowing down - but Apple is also losing
:02:49. > :02:52.market share to cheaper versions from Chinese manufacturers.
:02:53. > :02:56.And it has failed to come up with new types of product
:02:57. > :03:02.Apple hopes new versions of its watch - also
:03:03. > :03:05.announced on Wednesday - will boost sales.
:03:06. > :03:08.But some say boss Tim Cook is failing to keep up
:03:09. > :03:10.the pace of innovation set by his predecessor,
:03:11. > :03:15.Then there is the growing scrutiny of the company's tax affairs -
:03:16. > :03:19.culminating in a $14.5 billion demand from the EU last week.
:03:20. > :03:27.We'll be talking about some of this in a moment.
:03:28. > :03:30.First, our Tech reporter Dave Lee was at the iPhone 7 launch and has
:03:31. > :03:44.So, here we have it, the new iPhone seven. This one is in one of the new
:03:45. > :03:49.colours they have brought out. There is better camera technology. But the
:03:50. > :03:56.main thing everybody will notice is that for the first time there is no
:03:57. > :04:01.headphone jack on the device. This has made it easier for them to make
:04:02. > :04:04.it more water resistant. Of course, there is no where to stick your
:04:05. > :04:08.headphones. You have a couple of choices. Choice number one is to
:04:09. > :04:11.have headphones that go into the lightning port. You may have used
:04:12. > :04:17.that to charge your phone in the past. Or there is a little adapter
:04:18. > :04:21.that can change normal headphones to go in there as well. It is a little
:04:22. > :04:24.bit ugly. They have not brought it out here and I think that is the
:04:25. > :04:30.reason why, it doesn't look great. These are their new wireless
:04:31. > :04:36.airports. They look very much like the old earphones without wires.
:04:37. > :04:41.They pop into your ears. They connect directly to your phone. They
:04:42. > :04:48.promise it is much simpler than using Bluetooth. I find Bluetooth
:04:49. > :04:52.very difficult. These will retail at $159, which I think puts them a bit
:04:53. > :04:57.at risk of someone coming up to you and pinching them straight out of
:04:58. > :05:02.your ear. We the CF that happens. This is Apple's big development for
:05:03. > :05:03.its new life seven. -- we will see if that happens.
:05:04. > :05:05.Alex Wood, editor in chief of technology publication,
:05:06. > :05:22.I'm already thinking about air pod earrings. A whole new line! Alex,
:05:23. > :05:26.give us your thoughts on this. Social media is chatting about this.
:05:27. > :05:31.Some people are really miffed about the jack. Some think, I am not going
:05:32. > :05:39.to get another Apple phone. It is too expensive. Social media is an
:05:40. > :05:44.interesting place to start. Apple's Twitter account leaked the news
:05:45. > :05:48.ahead of its own announcement. That is interesting. Normally such a
:05:49. > :05:51.slick presentation. Overall my personal feeling is it is a
:05:52. > :05:58.revolutionary but not revolutionary. A couple of fixes here and there. --
:05:59. > :06:02.evolutionary. Nothing particularly new and exciting. When it comes to
:06:03. > :06:07.the headphone jack, you will not be able to physically plug it in. You
:06:08. > :06:09.will need a Bluetooth headset. In some respects it means maybe the
:06:10. > :06:16.battery can be bigger, longer battery life. But Apple is known for
:06:17. > :06:22.doing things like this. It says it is a bold move. If you look at their
:06:23. > :06:26.laptops, they got rid of the CD drive early. It is pre-empting the
:06:27. > :06:32.way things are going even though it may be difficult for users in the
:06:33. > :06:38.first place? I agree. People will struggle with it initially. The
:06:39. > :06:46.battery on headphones is not that good. You are looking at maybe for
:06:47. > :06:50.her five hours usage at best. I have got this line of things I have to
:06:51. > :06:54.charge when I get home in the evening. That is a frustrating
:06:55. > :06:59.future. Apple is keen to expand in India and other big emerging
:07:00. > :07:02.markets. Many say the phone is too expensive for that. In a few weeks
:07:03. > :07:05.they are launching a system where you can pay for your phone directly
:07:06. > :07:11.through Apple. You don't have to have the carriers involved so much.
:07:12. > :07:16.That is the big story in the UK. In the US they have run this programme
:07:17. > :07:20.for a number of years. Essentially you pay around ?33 per month and you
:07:21. > :07:24.are effectively higher purchasing the phone. Every year you can
:07:25. > :07:30.upgrade. Instead of paying the money to your carrier, you would be paying
:07:31. > :07:36.the money directly to Apple. I think that is a really big change.
:07:37. > :07:42.Interesting. Nice to see you. Keep your comments coming in. Jim says
:07:43. > :07:47.you cannot have a waterproof phone if you have got their hole for
:07:48. > :07:48.headphones. Another says the next version will have a headphone jack
:07:49. > :07:51.back. In other news: US firm Liberty Media
:07:52. > :07:54.will take control of Formula One The firm will take over
:07:55. > :07:58.the stake currently held Bernie Ecclestone will remain
:07:59. > :08:04.as chief executive, but Chase Carey, vice-chairman of 21st Century Fox,
:08:05. > :08:09.will become its new chairman. Liberty Media already has stakes
:08:10. > :08:12.in other sport and entertainment firms, including the Atlanta
:08:13. > :08:18.Braves baseball team. Australian carriers Quantas
:08:19. > :08:20.and Virgin Australia have told customers not to use or charge
:08:21. > :08:22.Samsung's Galaxy Note This come after faulty batteries
:08:23. > :08:28.in the new smartphone have caused Samsung, the world's largest
:08:29. > :08:32.smartphone maker, said last week it was suspending sales
:08:33. > :08:37.of its latest flagship mobile device and recalling 2.5 million
:08:38. > :08:39.units shipped globally. The electric car
:08:40. > :08:42.manufacturer, Tesla, says its autopilot system was not
:08:43. > :08:45.to blame for a crash in the Netherlands that
:08:46. > :08:48.left one man dead. Tesla Motors says the Model S car
:08:49. > :08:51.was travelling at more than 155 kilometers per hour,
:08:52. > :08:54.and that logs show its autopilot system was not engaged at any
:08:55. > :08:58.point during the journey. Tesla's semi-autonomous vehicles
:08:59. > :09:00.have been under scrutiny since Shares in Nintendo have soared
:09:01. > :09:12.after the Japanese gaming giant and Apple announced that
:09:13. > :09:15.an exclusive Super Mario game will be available
:09:16. > :09:24.on iPhones later this year. Also, Pokemon Go will be on the new
:09:25. > :09:27.Apple watch. Our very own super-Mariko
:09:28. > :09:38.is in Singapore. Nintendo is on a roll. I cannot
:09:39. > :09:45.believe you just called me that! That is what we would call an old
:09:46. > :09:54.man's joke in Japan. Super Mario is the gaming character the Japanese
:09:55. > :09:57.Prime Minister Rob -- Prime Minister... It is a new game that
:09:58. > :10:02.will be available just ahead of Christmas. Shares in Nintendo
:10:03. > :10:07.jumping by as much as 18%, ending the day 13% higher. We have been
:10:08. > :10:12.talking about the valuation of Nintendo surging ever since the
:10:13. > :10:16.launch of Pokemon Go. A very popular smartphone game. Today's news is
:10:17. > :10:19.helping that. It is quite a turnaround for a company which has
:10:20. > :10:25.been criticised in the past for being too slow in getting into the
:10:26. > :10:29.smartphone gaming market. It is also a win- win for Apple. Pokemon Go
:10:30. > :10:39.will become available on the apple's watch. Apple is hoping it can ride
:10:40. > :10:43.on Pokemon's popularity. Good stuff. Thank you. That was actually my
:10:44. > :10:49.joke, so I take the blame for the old man joke! A quick look at the
:10:50. > :10:57.numbers. The Nikkei had a pretty dreadful session. It pretty dreadful
:10:58. > :11:01.date for the market in Tokyo. This is what the market in Hong Kong did.
:11:02. > :11:07.That is the close of the Dow Jones. I want to show you what Europe is
:11:08. > :11:11.doing. An important day for the ECB. Its policy meeting later today. Not
:11:12. > :11:14.expecting a huge amount of chains. This is the first real policy
:11:15. > :11:21.meeting since the Bank of England voted to cut rates last month. -- a
:11:22. > :11:25.huge amount of change. Things looking pretty steady so far in
:11:26. > :11:28.early trading. We will keep an eye on what happens ahead of that
:11:29. > :11:29.meeting. We will talk more about that a moment.
:11:30. > :11:31.And Samira Hussain has the details about what's ahead
:11:32. > :11:41.On Thursday, America's largest book-seller will be recording
:11:42. > :11:45.earnings. Sales at Barnes and Noble have fallen for the last seven
:11:46. > :11:53.quarters as consumers move away from hard books in favour of e-book. Book
:11:54. > :11:58.stores are trying to attract customers into their stores. Barnes
:11:59. > :12:03.and Noble is expanding the kinds of merchandise they sell, including
:12:04. > :12:10.toys and craft kits. We will see later today if that is helping the
:12:11. > :12:15.book sellers. Also happening on Thursday, unemployment benefit
:12:16. > :12:18.numbers. Analysts believe the number of Americans filing for unemployment
:12:19. > :12:23.benefits may have increased by 2000. This comes after the commerce
:12:24. > :12:28.Department reported last week that job creation in the US slipped in
:12:29. > :12:30.August, adding just 151,000 new jobs.
:12:31. > :12:36.Joining us is Trevor Greetham, from Royal London Asset Management
:12:37. > :12:46.Samir mentioning their that more data is out today about the jobs
:12:47. > :12:50.market in the US. We have got the ECB holding its monthly meeting.
:12:51. > :12:53.What are your thoughts about what it might do? There is a split opinion
:12:54. > :12:59.as to whether anything will be announced today are whether the ECB
:13:00. > :13:04.wait until December to see what is happening in the UK economy. We have
:13:05. > :13:08.had a big plunge in business surveys after Brexit and now quite a big
:13:09. > :13:11.bounce back. They may want to wait and see. They can do is extend the
:13:12. > :13:16.length of time they are buying government bonds for, by more bonds
:13:17. > :13:21.from indebted countries like Italy, and by more bonds with negative
:13:22. > :13:24.yields. It is not very appealing. You have to think that Monetary
:13:25. > :13:36.Policy Committee reaching limits. We need fiscal policy as well. We have
:13:37. > :13:42.the US economy doing one thing. We see the UK doing its own thing. And
:13:43. > :13:46.Europe doing its own thing. There was a point when everybody was in
:13:47. > :13:52.the same boat and now we see diverging policies and economies?
:13:53. > :13:55.Yes. One of the things America did write to come out of the financial
:13:56. > :14:03.crisis was to support the economy with fiscal stimulus. Obama said he
:14:04. > :14:06.needed to support the economy. They got their economy moving pretty
:14:07. > :14:11.quickly. Elsewhere, in Europe and in the UK, we cut government spending,
:14:12. > :14:15.but all the pressure on the central banks. We need some fiscal spending
:14:16. > :14:21.too. We will get it in the Autumn Statement. Japan is interesting. In
:14:22. > :14:27.two weeks, Japan may be doing the same thing. Crucially, the central
:14:28. > :14:32.banks, keeping interest rates so low they inflate away the debt. Thank
:14:33. > :14:34.you, Trevor. You will be back looking through some of the stories
:14:35. > :14:34.in the papers. How do you turn around
:14:35. > :14:38.a company that lost its fizz? The boss of Halewood wines
:14:39. > :14:41.and spirits did just that, ransforming the company
:14:42. > :14:42.behind brands including Lambrini Crabbie's.
:14:43. > :14:47.He's with us a little later. You're watching Business
:14:48. > :14:52.Live from the BBC. Dixons Carphone,
:14:53. > :14:54.Britain's biggest consumer electricals and mobile phone
:14:55. > :14:57.retailer, has reported a 4% rise in quarterly sales, and said it
:14:58. > :14:59.had seen no real impact from the vote to leave
:15:00. > :15:04.the European Union in June. The results come as
:15:05. > :15:07.the firm looks to cash in on new smartphones launched
:15:08. > :15:12.by Apple, Samsung and LG. Theo Leggett is in
:15:13. > :15:21.our London newsroom. It is an interesting one. We have
:15:22. > :15:25.seen the firms come together. They have cornered the market as far as
:15:26. > :15:31.consumer electricals in the UK are concerned. Things are looking up?
:15:32. > :15:36.Yes, they are doing well. Sales of 4%. Revenue is 9%. This company is
:15:37. > :15:41.facing a number of challenges, first of all from the consequences of
:15:42. > :15:44.exit. In particular the fall in the pound. A lot of what this company
:15:45. > :15:51.sells is imported. They are losing money. The hint of a consumer
:15:52. > :15:55.downturn would affect them. They say that has not happened. There are
:15:56. > :15:59.other challenges. For example, Amazon. There has been a battle on
:16:00. > :16:04.pricing between Amazon and Dixons carphone. Dixons has kept its prices
:16:05. > :16:07.low. The signs are at the moment it is working. There has been good
:16:08. > :16:20.demand for certain types of consumer products.
:16:21. > :16:27.The euro is prompted sales of flat screen televisions. Pokemon go has
:16:28. > :16:32.benefited them as well because they have been selling a lot of telephone
:16:33. > :16:37.chargers. All these factors are playing into it and it seems at the
:16:38. > :16:42.moment the company is doing pretty well. But these are first-quarter
:16:43. > :16:46.results and only about half of that quarter was after the European vote
:16:47. > :16:51.came through, so we will have to wait to see if there is a
:16:52. > :16:59.longer-term effect after the next of quarters. You have got until
:17:00. > :17:05.November to save up to buy me distress. It is an auction in Los
:17:06. > :17:11.Angeles. It is Marilyn Monroe's press that she wore when she sang
:17:12. > :17:15.happy birthday to JFK in 1963. She had to be sewn into the stress.
:17:16. > :17:20.You are expecting me to stump up $2 million?
:17:21. > :17:27.It is definitely worth it. We have to so Ben into his suits before we
:17:28. > :17:35.present Business Life. Rossmore on our website as always.
:17:36. > :17:40.Our top story: The technology giant Apple has unveiled the new iPhone 7
:17:41. > :17:43.and the big change is the lack of a traditional headphone socket.
:17:44. > :17:46.Apple said its lightning connector could be used instead,
:17:47. > :17:53.which would make room for other components.
:17:54. > :18:00.A lot of you getting in touch with us.
:18:01. > :18:04.You have been very vocal and I am trying to find positive tweets, but
:18:05. > :18:10.I am struggling. You are annoyed about the Jack going, it is too
:18:11. > :18:13.expensive. Samsung's telephone has a headphone
:18:14. > :18:22.socket and it is still water and dust proof.
:18:23. > :18:26.One positive, it means better waterproof telephones. Clearly you
:18:27. > :18:31.drop your telephone in the water. A quick look at how
:18:32. > :18:39.markets are faring. And now let's get the inside
:18:40. > :18:41.track on the state of Worldwide we are spending more
:18:42. > :18:45.on drinks, both soft drinks In 2016 the sector was estimated to
:18:46. > :18:56.be worth about 2 billion US dollars. When we say we, we mean all of us,
:18:57. > :19:03.you watching as well. In the UK the largest independent
:19:04. > :19:05.drinks manufacturer and distributor It was founded in 1978 on Merseyside
:19:06. > :19:09.and now makes both alcoholic It exports to more than 50 countries
:19:10. > :19:13.with a turnover in excess Stewart Hainsworth
:19:14. > :19:18.is the Chief Executive of Halewood International,
:19:19. > :19:29.he's with us now. And a few beverages as well. If you
:19:30. > :19:35.can see him behind the bottles. Let's start with the fact that this
:19:36. > :19:39.has been quite a turnaround for you. It was an existing company and you
:19:40. > :19:43.came in and you were tasked with reviving its fortunes. Where do you
:19:44. > :19:47.start? With every turnaround you have to analyse what is going well
:19:48. > :19:52.and what is going bad and determine what you are going to do is to set
:19:53. > :19:56.the strategy and bring the company together. What did you have to do in
:19:57. > :20:02.this instance? A lot of the brands people will know and be aware of and
:20:03. > :20:08.have drunk and used, but it is a tough market to be in. What did you
:20:09. > :20:12.have to do? It is a family company, a medium-size business with assets
:20:13. > :20:16.across the world. Part of the problem was we did not have a group
:20:17. > :20:21.strategy and that is where I started. I devised a group strategy
:20:22. > :20:25.to think about building Halewood for the future. The obvious one was to
:20:26. > :20:31.move up the margin ladder and invest into spirits, which is what we have
:20:32. > :20:34.done. The company did not have a global chief Executive when you
:20:35. > :20:41.join. It was managing without one for some five years. Mr Halewood
:20:42. > :20:45.died in 2010 and the business had tried to manage individual countries
:20:46. > :20:50.by the board which was not working. It was in a mess when you arrive?
:20:51. > :20:54.There were positive things, the quality of the business in terms of
:20:55. > :21:00.liquid and production was clearly there. It was missing a strategy and
:21:01. > :21:05.that is what we needed to do. We came in and envisaged that spirits
:21:06. > :21:09.would provide a longer term strategy in terms of margin and we make
:21:10. > :21:13.decisions and recruited a new talent team to come in and pushed the
:21:14. > :21:18.business forward. How was it when you arrived on the scene? It had
:21:19. > :21:22.been trying to run itself without a global CEO for some time and the
:21:23. > :21:26.founder had died and they got rid of senior management before you showed
:21:27. > :21:32.up. I would imagine it was in a difficult place, that the staff and
:21:33. > :21:35.those working for you were in a difficult position. As in any of
:21:36. > :21:38.these businesses when you do a turnaround people are apprehensive
:21:39. > :21:44.about what is going to happen, where their jobs are going and what is the
:21:45. > :21:47.future. You have to settle people down and recruit very quickly.
:21:48. > :21:51.Luckily because I came from the drinks industry I had people I knew
:21:52. > :21:56.and could bring in very quickly to settle things down. There was no
:21:57. > :22:00.operations director or finance director, so I was doing a few rolls
:22:01. > :22:03.together for the first few months. Within six months I had a team in
:22:04. > :22:10.place and we moved the business forward. You talk about the
:22:11. > :22:14.strategy, but it strikes me that a lot of things you have to do are to
:22:15. > :22:19.decide what you are not going to do, stopping brands and things like
:22:20. > :22:22.that. What did you do in this case? The biggest one is obviously
:22:23. > :22:29.Crabbies, a well-known brand around the world. It is in more than 53
:22:30. > :22:33.countries. The court constituent is that it is a ginger fermented
:22:34. > :22:37.product. What had happened in the past is it had moved away from that
:22:38. > :22:43.core offering and gone into flavoured because of the flavoured
:22:44. > :22:48.side of the market. They decided they wanted to be a part of that and
:22:49. > :22:52.it was not really what Crabbies was. We stopped that and went back to the
:22:53. > :22:57.core qualities of the product. It takes six weeks to produce this
:22:58. > :23:02.product, so it is a long process and a quality product. There is a lot
:23:03. > :23:08.more we would love to discuss, but thank you so much for coming in.
:23:09. > :23:17.All the best. And just to say there is nothing in these mugs.
:23:18. > :23:23.Just tea and coffee. First a quick reminder of how you can get in touch
:23:24. > :23:29.with us. The businesslike page is where you can stay ahead with all
:23:30. > :23:33.the breaking business ease. We will keep you up-to-date with insight and
:23:34. > :23:40.analysis on the BBC's team of editors right around the world. Get
:23:41. > :23:53.involved on the web page. We are also on Twitter and Facebook.
:23:54. > :24:02.Getting cut, today you have not held back. Lots of opinions coming in
:24:03. > :24:07.about Apple. Let's talk about the fact that Formula one has been
:24:08. > :24:13.snapped up. Liberty Media is to buy Formula one, paying about ?3.3
:24:14. > :24:19.billion. I am finding it for you on the tablet. Trevor has returned to
:24:20. > :24:24.give us his take on this. Bernie Ecclestone, who is 86, staying in
:24:25. > :24:29.position as the boss. For three more years, continuity. Clearly they need
:24:30. > :24:37.in young, fresh blood. John Malone is a youngster of 75. $4.4 billion,
:24:38. > :24:46.it is one of the biggest takeovers in sport. Formula one, how big an
:24:47. > :24:50.event is it these days? As it's still got that grab that it had
:24:51. > :24:55.years ago? It has a global brand appeal. It is followed in lots of
:24:56. > :25:04.countries around the world. The deal was worth $8 billion because they
:25:05. > :25:07.took on $4 billion of debt. It still has appeal, but what they are
:25:08. > :25:15.struggling with is getting through to younger audiences. My 11-year-old
:25:16. > :25:20.build an electric go-kart and younger audiences are not so keen on
:25:21. > :25:28.clouds of blue smoke that go up when the races are on. We have to talk
:25:29. > :25:34.about Lego. It is so popular. They are trying to stop Americans buying
:25:35. > :25:44.any more bricks. Is that protection? Maybe Donald Trump is trying to
:25:45. > :25:49.build his wall with Lego bricks. Sally and I have got six boys
:25:50. > :25:57.between us. And we know about Lego demands. Well not between us. On
:25:58. > :26:00.that note, just to clarify you do not add them together.
:26:01. > :26:06.See you soon, goodbye.