08/09/2016 BBC Business Live


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This is Business Live from BBC News with Ben Thompson and Sally Bundock.


The Tech giant launches the iPhone 7 to much fanfare over its features,


but is it enough to revive slowing sales?


Live from London, that's our top story on Thursday 8th September.


Apple's new iphone7 has been revealed.


It will be water resistant, have a long battery life,


Is it enough to put the shine back on Apple's core business? We will


find out. Also in the programme: US firm


Liberty Media confirms it's buying racing business Formula 1


in an 8 billion dollar deal, ending years of speculation


about ownership of the company. Could a little American and let's


bring back the punters to the global brand?


And ahead of a meeting of the European Central Bank,


Today sees the bank's first policy decision since the Bank of England


Toasting to future success - we get the inside track on a booze


business that's trying to turn the company behind Lambrini


The boss of Halewood Wines and Spirits will be here to offer


Today we want to know, headphone jack or no headphone jack?


Is Apple right to ditch the traditional connecter?


Is the new iPhone enough to boost sales for Apple?


So many of you have been in touch already. You know what to do.


Keep your comments coming in about this story.


We start in San Francisco, where Apple has unveiled its latest


It's water resistant, with a faster processor and better


camera, more memory and improved battery life.


The big change - which was widely rumoured in advance -


is that Apple is ditching the traditional headphone socket,


to encourage buyers to invest in expensive


Apart from that - say the critics - it's the same old formula,


As of this summer Apple has sold more than a billion iPhones since it


launched the first model almost a decade ago.


But iPhone sales are starting to slow.


Sales have actually fallen for the last two quarters.


In the three months to June, they were down 15% on last year.


The smartphone market is slowing down - but Apple is also losing


market share to cheaper versions from Chinese manufacturers.


And it has failed to come up with new types of product


Apple hopes new versions of its watch - also


announced on Wednesday - will boost sales.


But some say boss Tim Cook is failing to keep up


the pace of innovation set by his predecessor,


Then there is the growing scrutiny of the company's tax affairs -


culminating in a $14.5 billion demand from the EU last week.


We'll be talking about some of this in a moment.


First, our Tech reporter Dave Lee was at the iPhone 7 launch and has


So, here we have it, the new iPhone seven. This one is in one of the new


colours they have brought out. There is better camera technology. But the


main thing everybody will notice is that for the first time there is no


headphone jack on the device. This has made it easier for them to make


it more water resistant. Of course, there is no where to stick your


headphones. You have a couple of choices. Choice number one is to


have headphones that go into the lightning port. You may have used


that to charge your phone in the past. Or there is a little adapter


that can change normal headphones to go in there as well. It is a little


bit ugly. They have not brought it out here and I think that is the


reason why, it doesn't look great. These are their new wireless


airports. They look very much like the old earphones without wires.


They pop into your ears. They connect directly to your phone. They


promise it is much simpler than using Bluetooth. I find Bluetooth


very difficult. These will retail at $159, which I think puts them a bit


at risk of someone coming up to you and pinching them straight out of


your ear. We the CF that happens. This is Apple's big development for


its new life seven. -- we will see if that happens.


Alex Wood, editor in chief of technology publication,


I'm already thinking about air pod earrings. A whole new line! Alex,


give us your thoughts on this. Social media is chatting about this.


Some people are really miffed about the jack. Some think, I am not going


to get another Apple phone. It is too expensive. Social media is an


interesting place to start. Apple's Twitter account leaked the news


ahead of its own announcement. That is interesting. Normally such a


slick presentation. Overall my personal feeling is it is a


revolutionary but not revolutionary. A couple of fixes here and there. --


evolutionary. Nothing particularly new and exciting. When it comes to


the headphone jack, you will not be able to physically plug it in. You


will need a Bluetooth headset. In some respects it means maybe the


battery can be bigger, longer battery life. But Apple is known for


doing things like this. It says it is a bold move. If you look at their


laptops, they got rid of the CD drive early. It is pre-empting the


way things are going even though it may be difficult for users in the


first place? I agree. People will struggle with it initially. The


battery on headphones is not that good. You are looking at maybe for


her five hours usage at best. I have got this line of things I have to


charge when I get home in the evening. That is a frustrating


future. Apple is keen to expand in India and other big emerging


markets. Many say the phone is too expensive for that. In a few weeks


they are launching a system where you can pay for your phone directly


through Apple. You don't have to have the carriers involved so much.


That is the big story in the UK. In the US they have run this programme


for a number of years. Essentially you pay around ?33 per month and you


are effectively higher purchasing the phone. Every year you can


upgrade. Instead of paying the money to your carrier, you would be paying


the money directly to Apple. I think that is a really big change.


Interesting. Nice to see you. Keep your comments coming in. Jim says


you cannot have a waterproof phone if you have got their hole for


headphones. Another says the next version will have a headphone jack


back. In other news: US firm Liberty Media


will take control of Formula One The firm will take over


the stake currently held Bernie Ecclestone will remain


as chief executive, but Chase Carey, vice-chairman of 21st Century Fox,


will become its new chairman. Liberty Media already has stakes


in other sport and entertainment firms, including the Atlanta


Braves baseball team. Australian carriers Quantas


and Virgin Australia have told customers not to use or charge


Samsung's Galaxy Note This come after faulty batteries


in the new smartphone have caused Samsung, the world's largest


smartphone maker, said last week it was suspending sales


of its latest flagship mobile device and recalling 2.5 million


units shipped globally. The electric car


manufacturer, Tesla, says its autopilot system was not


to blame for a crash in the Netherlands that


left one man dead. Tesla Motors says the Model S car


was travelling at more than 155 kilometers per hour,


and that logs show its autopilot system was not engaged at any


point during the journey. Tesla's semi-autonomous vehicles


have been under scrutiny since Shares in Nintendo have soared


after the Japanese gaming giant and Apple announced that


an exclusive Super Mario game will be available


on iPhones later this year. Also, Pokemon Go will be on the new


Apple watch. Our very own super-Mariko


is in Singapore. Nintendo is on a roll. I cannot


believe you just called me that! That is what we would call an old


man's joke in Japan. Super Mario is the gaming character the Japanese


Prime Minister Rob -- Prime Minister... It is a new game that


will be available just ahead of Christmas. Shares in Nintendo


jumping by as much as 18%, ending the day 13% higher. We have been


talking about the valuation of Nintendo surging ever since the


launch of Pokemon Go. A very popular smartphone game. Today's news is


helping that. It is quite a turnaround for a company which has


been criticised in the past for being too slow in getting into the


smartphone gaming market. It is also a win- win for Apple. Pokemon Go


will become available on the apple's watch. Apple is hoping it can ride


on Pokemon's popularity. Good stuff. Thank you. That was actually my


joke, so I take the blame for the old man joke! A quick look at the


numbers. The Nikkei had a pretty dreadful session. It pretty dreadful


date for the market in Tokyo. This is what the market in Hong Kong did.


That is the close of the Dow Jones. I want to show you what Europe is


doing. An important day for the ECB. Its policy meeting later today. Not


expecting a huge amount of chains. This is the first real policy


meeting since the Bank of England voted to cut rates last month. -- a


huge amount of change. Things looking pretty steady so far in


early trading. We will keep an eye on what happens ahead of that


meeting. We will talk more about that a moment.


And Samira Hussain has the details about what's ahead


On Thursday, America's largest book-seller will be recording


earnings. Sales at Barnes and Noble have fallen for the last seven


quarters as consumers move away from hard books in favour of e-book. Book


stores are trying to attract customers into their stores. Barnes


and Noble is expanding the kinds of merchandise they sell, including


toys and craft kits. We will see later today if that is helping the


book sellers. Also happening on Thursday, unemployment benefit


numbers. Analysts believe the number of Americans filing for unemployment


benefits may have increased by 2000. This comes after the commerce


Department reported last week that job creation in the US slipped in


August, adding just 151,000 new jobs.


Joining us is Trevor Greetham, from Royal London Asset Management


Samir mentioning their that more data is out today about the jobs


market in the US. We have got the ECB holding its monthly meeting.


What are your thoughts about what it might do? There is a split opinion


as to whether anything will be announced today are whether the ECB


wait until December to see what is happening in the UK economy. We have


had a big plunge in business surveys after Brexit and now quite a big


bounce back. They may want to wait and see. They can do is extend the


length of time they are buying government bonds for, by more bonds


from indebted countries like Italy, and by more bonds with negative


yields. It is not very appealing. You have to think that Monetary


Policy Committee reaching limits. We need fiscal policy as well. We have


the US economy doing one thing. We see the UK doing its own thing. And


Europe doing its own thing. There was a point when everybody was in


the same boat and now we see diverging policies and economies?


Yes. One of the things America did write to come out of the financial


crisis was to support the economy with fiscal stimulus. Obama said he


needed to support the economy. They got their economy moving pretty


quickly. Elsewhere, in Europe and in the UK, we cut government spending,


but all the pressure on the central banks. We need some fiscal spending


too. We will get it in the Autumn Statement. Japan is interesting. In


two weeks, Japan may be doing the same thing. Crucially, the central


banks, keeping interest rates so low they inflate away the debt. Thank


you, Trevor. You will be back looking through some of the stories


in the papers. How do you turn around


a company that lost its fizz? The boss of Halewood wines


and spirits did just that, ransforming the company


behind brands including Lambrini Crabbie's.


He's with us a little later. You're watching Business


Live from the BBC. Dixons Carphone,


Britain's biggest consumer electricals and mobile phone


retailer, has reported a 4% rise in quarterly sales, and said it


had seen no real impact from the vote to leave


the European Union in June. The results come as


the firm looks to cash in on new smartphones launched


by Apple, Samsung and LG. Theo Leggett is in


our London newsroom. It is an interesting one. We have


seen the firms come together. They have cornered the market as far as


consumer electricals in the UK are concerned. Things are looking up?


Yes, they are doing well. Sales of 4%. Revenue is 9%. This company is


facing a number of challenges, first of all from the consequences of


exit. In particular the fall in the pound. A lot of what this company


sells is imported. They are losing money. The hint of a consumer


downturn would affect them. They say that has not happened. There are


other challenges. For example, Amazon. There has been a battle on


pricing between Amazon and Dixons carphone. Dixons has kept its prices


low. The signs are at the moment it is working. There has been good


demand for certain types of consumer products.


The euro is prompted sales of flat screen televisions. Pokemon go has


benefited them as well because they have been selling a lot of telephone


chargers. All these factors are playing into it and it seems at the


moment the company is doing pretty well. But these are first-quarter


results and only about half of that quarter was after the European vote


came through, so we will have to wait to see if there is a


longer-term effect after the next of quarters. You have got until


November to save up to buy me distress. It is an auction in Los


Angeles. It is Marilyn Monroe's press that she wore when she sang


happy birthday to JFK in 1963. She had to be sewn into the stress.


You are expecting me to stump up $2 million?


It is definitely worth it. We have to so Ben into his suits before we


present Business Life. Rossmore on our website as always.


Our top story: The technology giant Apple has unveiled the new iPhone 7


and the big change is the lack of a traditional headphone socket.


Apple said its lightning connector could be used instead,


which would make room for other components.


A lot of you getting in touch with us.


You have been very vocal and I am trying to find positive tweets, but


I am struggling. You are annoyed about the Jack going, it is too


expensive. Samsung's telephone has a headphone


socket and it is still water and dust proof.


One positive, it means better waterproof telephones. Clearly you


drop your telephone in the water. A quick look at how


markets are faring. And now let's get the inside


track on the state of Worldwide we are spending more


on drinks, both soft drinks In 2016 the sector was estimated to


be worth about 2 billion US dollars. When we say we, we mean all of us,


you watching as well. In the UK the largest independent


drinks manufacturer and distributor It was founded in 1978 on Merseyside


and now makes both alcoholic It exports to more than 50 countries


with a turnover in excess Stewart Hainsworth


is the Chief Executive of Halewood International,


he's with us now. And a few beverages as well. If you


can see him behind the bottles. Let's start with the fact that this


has been quite a turnaround for you. It was an existing company and you


came in and you were tasked with reviving its fortunes. Where do you


start? With every turnaround you have to analyse what is going well


and what is going bad and determine what you are going to do is to set


the strategy and bring the company together. What did you have to do in


this instance? A lot of the brands people will know and be aware of and


have drunk and used, but it is a tough market to be in. What did you


have to do? It is a family company, a medium-size business with assets


across the world. Part of the problem was we did not have a group


strategy and that is where I started. I devised a group strategy


to think about building Halewood for the future. The obvious one was to


move up the margin ladder and invest into spirits, which is what we have


done. The company did not have a global chief Executive when you


join. It was managing without one for some five years. Mr Halewood


died in 2010 and the business had tried to manage individual countries


by the board which was not working. It was in a mess when you arrive?


There were positive things, the quality of the business in terms of


liquid and production was clearly there. It was missing a strategy and


that is what we needed to do. We came in and envisaged that spirits


would provide a longer term strategy in terms of margin and we make


decisions and recruited a new talent team to come in and pushed the


business forward. How was it when you arrived on the scene? It had


been trying to run itself without a global CEO for some time and the


founder had died and they got rid of senior management before you showed


up. I would imagine it was in a difficult place, that the staff and


those working for you were in a difficult position. As in any of


these businesses when you do a turnaround people are apprehensive


about what is going to happen, where their jobs are going and what is the


future. You have to settle people down and recruit very quickly.


Luckily because I came from the drinks industry I had people I knew


and could bring in very quickly to settle things down. There was no


operations director or finance director, so I was doing a few rolls


together for the first few months. Within six months I had a team in


place and we moved the business forward. You talk about the


strategy, but it strikes me that a lot of things you have to do are to


decide what you are not going to do, stopping brands and things like


that. What did you do in this case? The biggest one is obviously


Crabbies, a well-known brand around the world. It is in more than 53


countries. The court constituent is that it is a ginger fermented


product. What had happened in the past is it had moved away from that


core offering and gone into flavoured because of the flavoured


side of the market. They decided they wanted to be a part of that and


it was not really what Crabbies was. We stopped that and went back to the


core qualities of the product. It takes six weeks to produce this


product, so it is a long process and a quality product. There is a lot


more we would love to discuss, but thank you so much for coming in.


All the best. And just to say there is nothing in these mugs.


Just tea and coffee. First a quick reminder of how you can get in touch


with us. The businesslike page is where you can stay ahead with all


the breaking business ease. We will keep you up-to-date with insight and


analysis on the BBC's team of editors right around the world. Get


involved on the web page. We are also on Twitter and Facebook.


Getting cut, today you have not held back. Lots of opinions coming in


about Apple. Let's talk about the fact that Formula one has been


snapped up. Liberty Media is to buy Formula one, paying about ?3.3


billion. I am finding it for you on the tablet. Trevor has returned to


give us his take on this. Bernie Ecclestone, who is 86, staying in


position as the boss. For three more years, continuity. Clearly they need


in young, fresh blood. John Malone is a youngster of 75. $4.4 billion,


it is one of the biggest takeovers in sport. Formula one, how big an


event is it these days? As it's still got that grab that it had


years ago? It has a global brand appeal. It is followed in lots of


countries around the world. The deal was worth $8 billion because they


took on $4 billion of debt. It still has appeal, but what they are


struggling with is getting through to younger audiences. My 11-year-old


build an electric go-kart and younger audiences are not so keen on


clouds of blue smoke that go up when the races are on. We have to talk


about Lego. It is so popular. They are trying to stop Americans buying


any more bricks. Is that protection? Maybe Donald Trump is trying to


build his wall with Lego bricks. Sally and I have got six boys


between us. And we know about Lego demands. Well not between us. On


that note, just to clarify you do not add them together.


See you soon, goodbye.


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