26/10/2016 BBC Business Live

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

The competition takes a bite out of Apple.

The tech giant s annual revenue has fallen for the first

Live from London, that's our top story on the 26th of October.

Bruising results for apple as the darling of Silicon Valley

gets squeezed by the competition Posting a 19% fall in profits.

Women are on their way to being paid as much as men, in 2186!

We'll be telling you why equal pay is thought

And China's currency the Yuan has sunk to a six-year low.

Will the world s second biggest economy benefit from the drop.

Touker Suliman, the multimillionaire entrepreneur and star of Dragons Den

will be joining us in the studio to give us the inside track

Let us know what you think about Apple. Have they peaked?

Could there be a problem with Apple's core?

The world's biggest tech company has reported its results for the last

year and they don't make for pleasant reading.

It's the first time since 2001 that the darling of Wall Street has

posted a fall in annual revenues ending one of the hottest

Apple's sales in 2016 came in at were over $215 billion it's

a huge number but nonetheless a fall of 8% compared to the year before.

And the company also reported a fall in iPhone sales for the third

quarter in a row for investors it's key as the iPhone is

In the last three months Apple sold more than 45 million iPhones,

that is better than expected and remember the new iPhone-7

was launched after this quarter ended, so doesn't

In the last quarter, they made $9 billion that's a fall

of 19% compared to the same time last year.

Some say it's a sign that the smart-phone market

is saturated, that's to say, those who want a smartphone,

Revenue from China which is seen as a key growth market

So in many ways it's been a difficult year for Apple,

all of this on top of the ruling from the EU that it owes

the Irish government $14.5 billion in back taxes.

Sebastian Anthony, Senior Editor at ArsTechnica, is with me.

What is your take on these numbers? In line with expectations, slightly

above, if anything just a sign that it's business as usual in the

business industry. Shares are still up 20% over the last quarter so

analysts are happy. It just looks like business as usual. You say

business as usual, but many are looking at Apple and saying has it

really peaked, the question we are putting to viewers this morning,

have we got to the point where Apple will no longer be coming out with

record-breaking numbers quarter on quarter gist because we are not

upgrading or changing our iPhones as quickly as they would like? I think

that we probably have hit the peak of Apple's current business model

which is high-profit devices. I think much of the tech industry is

seeing the same pressure so we saw it with Microsoft, we have seen it

with probably Google as well and now we are looking at Apple trying to

find the next segment to move into which it looks like it will be

services, iTunes, Apple music, that kind of stuff but yes, we have

probably seen the end of crazy flagship smartphone profits I would

say. There was a time when whatever Apple launched, there would be long

queues outside stores and we still get that, but it strikes me that

people who have the iPhone 59 presidential 6 are hanging on to

something radically different and getting to the point where they are

not upgrading for the sake of it, only upgrade when the device is

broken and you need a fresh one? It's a process, yes, we saw it with

PCs, TVs have always been this way, you buy one and there's no reason to

replace it until it breaks, you have people that hold on to their 4S, 5S

and there's little compelling reason to upgrade. Yet it's a critical time

for Apple because its rival Samsung is kind of out of the market at the

moment. ? Apple claims it had a supply issue and didn't capitalise

on the exploding phones. But also it's just the beginning of that

quarter, we'll probably see in December, January, whether they

actually manage to capitalise on the exploding phones but you are right,

it's a good time for them. It's worth noting that the S7 and the

Edge sold very well, as well as the 6S. The watches not though? No, I'm

a proud wearer of. They are not selling well. That was a weird

segment. Yes, people didn't expect them to do well. It was weird that

Apple got into that, they were responding to market pressures but

yes, not surprised. Thank you for your time. There is so much more

about Apple on the website as well with analysis from the team in

technology here at the BBC so dig deep. Capitalising on exploding

phones, there's a story! Nintendo has reported a lots in the three

months to September after the strengthening Japanese industry

impacted its profits overseas. Nintendo slashed its full-year

profit forecast by a third. A federal judge has approved a $15

billion settlement with VW to settle claims it manipulated diesel

emissions tests, the biggest fine in automotive history.

General Motors has warned that it may cut car production further

in Europe as a result of Britain's vote to leave the European Union,

as continued uncertainty hits demand for new vehicles.

The Detroit-based carmaker vowed to "take whatever action

is necessary" to offset the impact of the Brexit vote, which has

already cost it $100 million in the past three

And caterpillar cut its targets for the year for the third time saying

it's been hit by the downturn in commodity plieses translating to a

fall in mining activity. It expects sales to be $39 billion this year

Downton year before. -- Downton year before.

News from Lloyds. Not a huge change. Profits down about 15% on the same

period of 2015 but if you delve down into it, there is not a huge amount.

The interesting thing, once again, it's put aside more money to pay for

missold payment protection insurance. That was a big scandal

here in the UK related to insurance for things like credit cards and

mortgages. They have put another billion aside to cover that. That is

the latest in a number of banks putting money aside, a saga that

goes on and on. More news out of Asia, the Yuan has been trading

around near six-year lows, so why is that and what impact does that have

in China and further afield? Karishma is in Singapore. What is

going on with Yuan? It's been slightly trading up against the

dollar, going against the trend that you were talking about. We have been

seeing over the last week or so, as you were saying, the Yuan has been

hitting fresh six-year lows against the US Dollar and it's very much a

US Dollar story, if you will. That's on expectations the US Fed will

raise interest rates this year. But that's not the entire story. China's

not exactly an entirely free market economy, so its currently is

managed. A lot of the analysts have been telling me that China's Central

Bank is guiding the currency lower in an orderly and gradual way. Why

would they do this? Exports, a weaker currency makes China's goods

cheaper overseas but China is in a difficult position, the Yuan can't

be too weak because folks at home would get nervous and rush to take

their cash out of the country. Thank you very much Karishma. It's

tech that's dominating the markets both in aids yes and the US.

Nintendo issuing the profit warning for the year downgrading the outlook

to 30 billion yen down from the estimate. The Apple earnings came

after US markets closed. Shares down 2.5% in after hours trade. A look at

what is happening in Europe. Vodafone is going to pay ?4.6

million fined by Britain's Telecom watchdog for breaching consumer

protection rules. News from the banking giant Lloyds as we touched

on setting aside another ?1 billion for PPI. More on that in a moment,

but first Samira has the details about what is ahead on Wall Street

today. A solid increase of deliveries of the luxury electric

cars will be welcome news for investment news when Tesla reports

on Wednesday. Consumers want to hear about the acquisition. He also

reporting earnings Wednesday, Coca-Cola. They cut their organic

revenue growth forecast in July and warned of continuing weakness in

markets like China and some parts of Latin America. Following rival

Pepsi-Co's announcement to reduce sugar in soft drinks, investors will

be looking for similar targets from Coca-Cola.

Finally, cable company Comcast. AT could be a big rival.

That's Samira in New York for us. So much going on. Jane Foley is with

us, senior currency strategist, nice to see you. There are tonnes of

earnings stories to Wade through, but what we wanted to talk about as

well was this report out from the World Economic Forum, an annual look

at the gender pay gap. It's getting wider and wider which I find

astounding given the fact that the number of women in prominent

positions is going up-and-up and up and it seems to be on the agenda but

nothing is improving? This takes into consideration a lot of

different factors. One of the factors that went into this report

was the amount of hours women work and the amount of hours women work

are a month more than men. One of the reasons for that is caring. A

lot of women do unpaid work. The amount of opportunities it seems has

also reached a plateau, more women reaching senior positions but there

hasn't been that much new progress and there's pressure on the

Governments to do something about it. No-one likes quotas, the women

that get promoted through quotas don't them quotas, but it seems when

things aren't happening on their own, these things need to be pushed.

But 170 years to close the gap is mind-boggling? It is. It's

depressing for women who're working hard. Women now are at least as well

educated if not better in many universities there are more women et

cetera and there's a short fall there. We talked about this before

on this programme because both Jane and I have experienced this problem

and corrected it actually, a former employer for you and for me, we

found male counterparts doing the same job and being paid more. In

fact I had a tap on the shoulder from HR saying, we need to pay you

more. But women do that and maybe not realise that they are getting

paid less. Thank you, Jane. That was a result! Lots of stories to cover

in terms of business news. Including my favourite story, why a chicken

shop is being sued for $20 million by a grandmother. The dragon is out

of the den! Toukeris here. You are with business live from BBC news.

Vodafone's been hit with a huge fine from Ofcom over the way it treats

its customers. The Telecoms regulator's fined Vodafone ?4.6

million for mishandling complaints and a fail your in IT systems that

cost ?10,452 customers to be precise they paid extra money. Lynsey is the

consumer group director for Ofcom. She spoke to us earlier discussing

why this was a problem on what's happening in the industry.

This is a significant fine, the largest we have levied. As well as

the fine, vote fiend's had to recompense all the customers and pay

a further contribution of ?100,000 to charity in lieu of the small

number of customers they weren't able to trace.

To be clear, we want the fine today to send a clear message across the

industry, not just to Vodafone, that every consumer expects and demands

high quality customer service and that's what they need to deliver.

Andrew Walker is in our business newsroom. Talk us through this, it

is easy to say they had errors with how they handled complaints and

things like that but it's a bit more complicated. At base, this is about

a group of customers who had pay-as-you-go phones who paid money

to top them up and they simply were not credited with the additional

money. Now these were phones that had been dormant for at least nine

months, and when they reactivated them they were given messages saying

they would be able to make calls but in fact they couldn't. Vodafone

accepts it should have done more to do with the problem, taken action

more quickly, but it has now managed to track down nearly all the

customers concerned and reimburse them to the children of an average

of ?14 plus a few pence. There were 30 they were unable to track down

and cover that, they say they have no intention of making a profit from

what has happened, so they have made a donation to charity to the June of

?100,000, which I think it would be fair to say more than covers the

money involved. Ultimately though it was a result of a problem with the

migration of very complex information technology willing

system and some customers suffered as a result. Thank you for

clarifying that. Heineken are stating a rise of beer sales of the

third quarter by 2%. You're watching Business Live -

our top story Apple has reported its first drop in annual

revenue since 2001 - with the third successive quarter

of declining iPhone sales. But the company is predicting

that it will return to growth over A quick look at how

markets are faring.... A quick look for you at Europe.

Trading down so far on the day. The Dax coming off those record highs

that we saw midweek. Now, as promised -

we've persuaded our next guest He's the serial entreprenuer

and investor... And best known to many

as one of the Dragons If you are watching around the world

may be known as Shark Tank elsewhere.

It allows entrepreneurs to pitch business ideas to a panel of experts

in the hope of securing an investment.

Touker Suleyman started his career at the age of 18,

when he established his own clothing manufacturer.

He has since go on to turn around fashion businesses including Ghost

After joining Dragons' Den last year, Suleyman has so far invested

700 thousand dollars on the show - in businesses ranging from a gourmet

brownie company to a musical flushing toilet!

His latest investment off the screen is a baby teething toy company

called MatchStick Monkey - which he hopes to expand

into a whole range of branded baby products.

We'll be speaking to Touker in a moment, but first

here he is in action on the British version of Dragons Den.

You are stretching ourselves very wide. You're better off focusing on

one brown. At Edna how it can stop something that is doing so well.

That is why we want both and they are both succeeding so well. OK,

I've seen it before, Anthony, two brands, two websites, you're in for

a disaster. In for a disaster! Reassuring words. He does not mince

his words. Now, I don't. It is called seconds then for a reason. We

get straight to the point. Let's do that right now, it is quite small, I

am wiggling it around, matchstick monkey, it will set me back ?9 99 in

the UK and it is the little children. Three months to two years.

Who are teething and they chew on this. It had me 15 minutes to make

the investment. You were convinced from the outset? Husband-and-wife

came to see me, the husband wanted to invest in a bad business and the

wife said, I've got this monkey. I said what is that, as said he now

know what to do with it. That was it. We talk about investment and new

business ideas, this is to be frank a really simple concept. What is it

you can spot in that because it is nothing particularly radical or new

but it is something you think is worth the investment. Matchstick

Monkey, what I saw in that initially was a brand that I could take into

lots of products, in the books, cartoons, animation. I've even got

Mike Chapman, the famous Mike Chapman, simply the best, writing

the jingle. So in my view, if this isn't doing within three years a 200

million turnover, I would be very surprised. My first thought was

nearly ?10, I would not spend it on that because of the get thrown out

of the picture in the park and I will never see it again. All I can

tell you is the first delivery of the goods is next week you will see

it in lots of high streets, Mothercare, M, other stores, they

are going crazy for it. We have got 20 countries who want to buy it,

they can't all be wrong. Let's move on from the monkeys, as mad to talk

about them. Monkey business. And talk about your day job, clearly the

Dragons Den is fun, a lot of money involved, spending so much of your

own money doing that, but it is the day job that got you there. How did

you begin, because like many of the people who come into the den you

have suffered your first there are success and failure. I started very

young. That the age of 208I was very successful, chairman of two public

companies and I bought one is this that was wrong. Pack of cards, had

to start all over again. But you know failure is only a result of

your journey. It is not the end. Since then, I have just focused on

my businesses, which was clothing manufacturers to start, and then

commercial property, which in this area has done me very well, and then

taking brands which were in trouble and restoring them back to its

former glory. Many watching the show and the Dragons Den will want to

know what it is that makes you a winner when it comes to being an

entrepreneur. Anyone can be a winner, not just me. As far as I'm

concerned, I spot good entrepreneurs, good ideas, and very

quickly I work out in my head and say what value can I add to that

business? Where could it be in 12 to 18 months, three years' time? If the

full coming to pitch not just in the Denver anywhere, so you are going to

look for an investment, be it on a crowdfunding sort of platform or in

a traditional investment method, what are the top tips? What do they

need to prove? When you come to the den, you have got to get your

numbers right, we all know. Make it very simple for the investor to

understand what you've got and what you are pitching for. What the

planners. I have seen new mauling entrepreneurs and the den usually

because their figures don't pick up. I think in some ways they are very

nervous. They come to the den, there are five Dragons sitting there, but

in a lot of cases the border do their homework properly. They don't

look at their competition. You have got to know your margins, your

turnover, your profit. And say to yourself, have I got everything that

an investor would want to know? All right, Touker, I wish we had more

time, but I will keep an eye on the monkey business for sure. Let's see

if you are right this time. I think I'm right on this one.

In a moment we will look to the business pages, but a reminder of

how to get in touch. The Business Live pages where you can stay ahead

of the braking business news. We will keep you up-to-date with all

the latest details, insight and analysis from the BBC's team of

editors right around the world and want to hear from you too. Get

involved in the BBC Business Live web page, and we are on Twitter.

Business Live on TV and online, whenever you need to know. Jane is

back and Ben did say one of the most intriguing stories that caught his

attention was this one in the Washington Post, a grandmother suing

KFC for $20 million because she didn't get enough checking. She was

thinking it is foul play! Basically she saw the adverts on the TV, we

have all seen the adverts on KFC, lots KFC, lots and lots of chicken,

overflowing the basket, and she went home and there was not worked at

all. She complained, they offered her a free gift, she turned back and

said no. So is KFC staff now always 20 billion a small out of money? She

says it is the principle of the matter. Sometimes you have to hit

people where they fill it. KFC will field $20 million. We will have to

watch that space. She will get of money I would imagine! That is

mentioned some of your treats. Andrew says Apple will never be as

good as it was when Steve jobs was alive. Keep your comments coming in.

Thank you to Jane and thank you for watching. Goodbye.

Hello. The weather has done something of a U-turn. We have lost

the chilly easterly winds, the now coming in from the West,