05/01/2017

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:00:00. > :00:00.This is Business Live from BBC News, with Sally Bundock

:00:00. > :00:09.Smart homes, voice recognition and driverless cars!

:00:10. > :00:13.We'll take a look at the rise of the robots at the world's

:00:14. > :00:33.Live from London, that's our top story on Thursday 5th January.

:00:34. > :00:42.The trillion dollar tech industry gathers in Las Vegas -

:00:43. > :00:47.in search of the gadgets that will get it growing again.

:00:48. > :00:51.Our top tech team is there, trying and testing out the latest stuff.

:00:52. > :00:53.Also in the programme - upsetting the Apple cart!

:00:54. > :00:55.Chinese authorities force the Silicon Valley giant

:00:56. > :01:12.The markets will be quite a mixed day, we are talking you through the

:01:13. > :01:14.winners and losers! Is that Rory with make-up on?

:01:15. > :01:19.We'll talk to the boss of a tech company hoping to revolution-ise

:01:20. > :01:22.We'll talk to the boss of a tech company hoping to revolutionise

:01:23. > :01:26.And keeping with all things tech - we want to hear from you.

:01:27. > :01:28.What are the gadgets that you can't live

:01:29. > :01:40.Let us know - use the hashtag BBCBizLive.

:01:41. > :01:49.I am predicting that for many of you you will be saying it is your

:01:50. > :01:51.smartphone but for me, it is my kettle, I cannot live without it!

:01:52. > :01:53.We start in Las Vegas where thousands of technology

:01:54. > :01:55.executives are gathering for the annual Consumer Electronics

:01:56. > :01:59.It's the most important event of the year for the tech industry -

:02:00. > :02:02.a chance for companies to show off the gadgets they hope

:02:03. > :02:10.It's a huge business - and an increasingly tough one.

:02:11. > :02:13.According to the Consumer Technology Association -

:02:14. > :02:16.which organises the Las Vegas show - we will buy gadgets worth close

:02:17. > :02:29.The problem is the industry as a whole is not growing.

:02:30. > :02:30.If it's accurate - that figure would be

:02:31. > :02:33.down around 2% on 2016, and it would be the fourth year

:02:34. > :02:37.Smartphones are by far the world's most popular gadget -

:02:38. > :02:40.accounting for half of all tech revenue - but sales

:02:41. > :02:52.Well - it could be the year of wearable technology -

:02:53. > :02:59.They have been saying it for a while now...

:03:00. > :03:01.Revenues from wearable devices are expected to soar

:03:02. > :03:04.almost a third this year - although still just a fraction

:03:05. > :03:10.And one of the biggest themes to watch - artificial intelligence -

:03:11. > :03:13.more and more gadgets are being given the ability to learn

:03:14. > :03:26.In a penthouse suite at a ritzy Las Vegas hotel,

:03:27. > :03:37.There is a smart speaker for children, each toy has a playlist.

:03:38. > :03:52...There's even Nora, described as a smart snoring solution.

:03:53. > :03:55.It's paired with a pad under the pillow which detects the snoring

:03:56. > :03:59.and moves just enough to stop me, without waking me up.

:04:00. > :04:02.The big theme this year is turning the advances in artificial

:04:03. > :04:11.This one is meant to be a shop assistant, while this one

:04:12. > :04:17.is designed as a companion for children or elderly people.

:04:18. > :04:25.AI seems to get everywhere, even into this toothbrush, which learns

:04:26. > :04:31.Artificial intelligence is not just gathering the data,

:04:32. > :04:34.Then you learn where your weaknesses are, where your strengths

:04:35. > :04:37.are and the purpose is to become better at taking care

:04:38. > :04:40.This walking stick is also smarter than it looks.

:04:41. > :04:42.An in-built mobile phone SIM card means it can help

:04:43. > :04:48.It will detect the fall of the user and when it detects it it will alert

:04:49. > :04:50.the family or the neighbour, so they can come and

:04:51. > :05:11.And this clever mirror helps anyone to try out make-up.

:05:12. > :05:14.Out on the Las Vegas strip, this young entrepreneur

:05:15. > :05:18.His instant translation headphones aren't quite ready.

:05:19. > :05:20.They will eventually be tiny earbuds, that he is still

:05:21. > :05:24.This is important because we will be able to showcase what we've been

:05:25. > :05:27.working on to the world, to show this is something we started

:05:28. > :05:30.years ago as a small team, as a small start-up,

:05:31. > :05:34.The odds are against Danny, a one-man band taking on giants

:05:35. > :05:36.like Apple and Google, but he's betting that he

:05:37. > :05:48.has the product that can change the world.

:05:49. > :05:56.So, I was just trying to get Aaron to take on his most revolutionary

:05:57. > :06:04.gadget... I will be boring... You said the kettle? Yes! It's an easy

:06:05. > :06:09.one. It is boring, but the smartphone, I think it is a

:06:10. > :06:13.phenomenal thing. Boring, it is! You can go anywhere in the WorldCom is

:06:14. > :06:16.use GPS, go on Google maps, do that... -- go anywhere in the world

:06:17. > :06:18.and use... Chinese e-commerce giant Alibaba

:06:19. > :06:21.has sued two vendors for selling counterfeit goods,

:06:22. > :06:23.weeks after being blacklisted It's the first time the firm

:06:24. > :06:27.has taken legal action Alibaba sued the vendors

:06:28. > :06:34.for allegedly selling The move comes just two weeks

:06:35. > :06:38.after the company was put back onto the US's "notorious markets"

:06:39. > :06:41.list over failing to curb the sale Rex Tillerson - the former Exxon

:06:42. > :06:45.boss chosen by Donald Trump for US Secretary of State -

:06:46. > :06:47.will receive $180m to cut financial ties with the firm

:06:48. > :06:57.if he gets the job. The pay-out is aimed

:06:58. > :06:58.at addressing concerns he could favour the oil giant,

:06:59. > :07:01.or his own interests The 64-year-old Texan worked

:07:02. > :07:04.for Exxon Mobil for 40 years, including in the US,

:07:05. > :07:16.Yemen and Russia. Do you remember when we were talking

:07:17. > :07:23.about building the gig a factory? This is Elon Musk, and they are

:07:24. > :07:31.beginning production of the battery. We just had the numbers for Tesla

:07:32. > :07:35.yesterday, how time flies! The production of those cars right there

:07:36. > :07:38.increased to 68% last year, they are making more and more... It is

:07:39. > :07:46.interesting, not everyone is clear on what is going on inside of that

:07:47. > :07:51.monster sized giga factory. And some sun, making their new smartphone

:07:52. > :07:56.after all of those problems that it had with the last one that kept on

:07:57. > :08:00.going up -- Samsung. It is the device but you cannot live without

:08:01. > :08:06.though, the smartphone! But I do not want one that blows up!

:08:07. > :08:08.Apple has removed the New York Times app from its Chinese app

:08:09. > :08:10.store after a request from the Chinese authorities.

:08:11. > :08:20.She has got all of the details, it is nice to see you. This is

:08:21. > :08:24.interesting, isn't it? Indeed, good morning. This website has been

:08:25. > :08:29.blocked in China, if you remember, since 2012, after the newspaper

:08:30. > :08:32.published a number of reports about the private wealth of members of the

:08:33. > :08:41.political elite and their families but, as you say, the app had been

:08:42. > :08:44.available until late last year but Apple withdrew it after a request

:08:45. > :08:49.from Chinese authorities and the Chinese are looking at regulations

:08:50. > :08:54.designed to curb activities such as "Endangering national security,

:08:55. > :08:58.disrupting social order and violating legitimate rights in the

:08:59. > :09:05.interest of others" at the newspaper, they responded with

:09:06. > :09:15.criticism of apps from other organisations, saying that apps like

:09:16. > :09:18.the BBC are still available, but the English version occasionally has

:09:19. > :09:20.human rights or political stories blocked on the website and on the

:09:21. > :09:26.app. Legs we will talk about that later

:09:27. > :09:32.in the programme. Looking at the New York Times article on that

:09:33. > :09:42.particular story -- thank you. Asia had a mixed day, profit in Japan,

:09:43. > :09:46.they have had a surge in Asia in general, the Yen gained in value.

:09:47. > :09:53.Exporters losing some ground as the Yen strengthened. In other markets,

:09:54. > :09:57.Hong Kong up 1.5%, Europe is quite mixed at the moment. And, a lot of

:09:58. > :10:01.what is going on in the markets today, Europe and Asia, is in

:10:02. > :10:05.reaction to the Federal reserve, minutes were out late yesterday. We

:10:06. > :10:07.will speak in more detail about that in a moment but today on Wall

:10:08. > :10:08.Street... And Samira Hussain has

:10:09. > :10:12.the details about what's ahead The weaker pound will

:10:13. > :10:14.likely hurt the earnings But the focus will really be

:10:15. > :10:17.on Walgreens' acquisition Now, multibillion-dollar deals,

:10:18. > :10:20.particularly in health care, have been facing more scrutiny

:10:21. > :10:22.from US anti-trust authorities recently, with many being scrapped

:10:23. > :10:25.or undergoing lengthy approval processes because of a fear

:10:26. > :10:33.of creating a monopoly. But an agreement to sell 865

:10:34. > :10:35.Walgreens store is is being seen as a positive sign for the merger

:10:36. > :10:38.which is expected to Now, craft whiskey and beer has

:10:39. > :10:46.been bringing some cheer The alcoholic beverage maker

:10:47. > :10:49.is raising their full-year profit expectations because of a healthy

:10:50. > :10:52.demand for its Corona and Modelo beers, and expanding its premium

:10:53. > :11:16.liquor portfolios is also given We are all sitting here talking

:11:17. > :11:21.about gadgets, David, what is yours, a gadget that has changed your life

:11:22. > :11:28.or that you love? IPhone, I'm boring like you, sorry! Come on YouTube,

:11:29. > :11:34.something more imaginative? The dishwasher, whoever invented that!

:11:35. > :11:41.-- come on you two. Happy New Year, David. It is nice to see you. Let's

:11:42. > :11:49.talk about this... The front page of the pink pages... The Fed... No, the

:11:50. > :11:57.Financial Times! The minutes coming out of the Fed yesterday, state --

:11:58. > :12:02.statements towards Donald Trump's policy. We need to remember that

:12:03. > :12:06.Janet Yellen in the chairman and Federal reserve in total isolation

:12:07. > :12:10.of her job, forget what is happening with Barack Obama and Donald Trump

:12:11. > :12:16.in the future... She is looking at the big picture all the time, we got

:12:17. > :12:20.our last quarter percent increase recently, and what she has set out

:12:21. > :12:28.of the Trump plans, that is basically to cut corporation tax

:12:29. > :12:32.from 35% down to 15% in two years. And, to introduce $1 trillion worth

:12:33. > :12:41.of spending around various parts of the country. This, basically, is

:12:42. > :12:45.good but it is inflationary. If you look at the futures, they can be

:12:46. > :12:53.misleading, but the market is telling us that in 2017 there will

:12:54. > :12:56.be a 0.59% increase in US interest rates, you will get to quarter

:12:57. > :13:02.heights anyway and do not rule out the possibility of a third if all is

:13:03. > :13:06.well when Donald Trump is installed as a president of the United States.

:13:07. > :13:10.We have had a lot of rhetoric. If we hear positive stuff which gets

:13:11. > :13:13.through Congress, great news, the markets will crack on but if we hear

:13:14. > :13:21.other stuff that we do not want to hear, like problems with China and

:13:22. > :13:26.those real trading bases, then you have an issue. I hope we don't. But,

:13:27. > :13:30.watch this space... David is back in five minutes, not off the hook yet,

:13:31. > :13:35.he has more work to do on the programme! Thank you. Pleasure.

:13:36. > :13:40.We'll talk to the boss of a tech company hoping to revolutionise

:13:41. > :13:46.You're with Business Live from BBC News.

:13:47. > :13:50.Four months after facing a investor revolt -

:13:51. > :13:55.Sports Direct looks set to have another battle today.

:13:56. > :13:57.Later today, shareholders will be voting on whether chairman

:13:58. > :13:59.Keith Hellawell should keep his seat on the board.

:14:00. > :14:03.Theo Leggett is in our Business Newsroom.

:14:04. > :14:10.It's good to see you, my friend. How important is this vote? Seriously,

:14:11. > :14:17.let's be frank, are there real prospect here that he could lose the

:14:18. > :14:21.job? Only if he decides to, the vote that we are having today is a result

:14:22. > :14:25.of Keith Halliwell losing the vote on his reappointment to the annual

:14:26. > :14:29.general meeting in September but under new rules designed to give a

:14:30. > :14:33.bit more say to independent shareholders and companies dominated

:14:34. > :14:37.by one major shareholder, in this case, Mike Ashley, you can have a

:14:38. > :14:40.vote and if it is lost, then there has to be another a few months down

:14:41. > :14:51.the line but the difference this time, Mike Ashley is involved in it

:14:52. > :14:53.and since he has a 55% stake in the company, unless he decides Keith

:14:54. > :14:56.Halliwell has to go, then he is probably staying onwards. The only

:14:57. > :14:58.difference that might be made is if Mr Halliwell himself decides there

:14:59. > :15:04.is too much opposition and he cannot do his job, he may decide to step

:15:05. > :15:08.down. He has already offered to resign but was persuaded by Mike

:15:09. > :15:12.Ashley to stay on but in the general meeting this year, if he loses the

:15:13. > :15:16.vote then, he would step down anyway but at the moment, it seems he will

:15:17. > :15:20.stay in his post. Shareholders will show they are annoyed with the way

:15:21. > :15:23.that the company is being wrong but -- run but really they do not have

:15:24. > :15:26.much influence. For the shareholders, you assume that it is

:15:27. > :15:28.incredibly frustrating because Sports Direct has so much going on

:15:29. > :15:36.and no good news None at all. For the past 18 months

:15:37. > :15:40.Sports Direct has been under pressure following media revelations

:15:41. > :15:43.about working conditions at its main warehouse in Sharnbrook in

:15:44. > :15:46.Derbyshire. MPs took on board what was going on there and issued a

:15:47. > :15:51.scathing criticism of the company and said it had Victorian style

:15:52. > :15:54.working conditions. Now, Mike Ashley did say he would work on this and

:15:55. > :15:59.try and sort things out. What has happened as we have seen the Chief

:16:00. > :16:03.Executive leave leaving even more control in the hands of the leading

:16:04. > :16:07.shareholder Mike Ashley which is what institutional shareholders

:16:08. > :16:10.don't want to see. The plot thickens. Thank you, Theo, from our

:16:11. > :16:15.business unit. Are you nice to your parents?

:16:16. > :16:18.I try to be. You better be, they are watching.

:16:19. > :16:23.We will get some money from them one day and we will be wealthy.

:16:24. > :16:25.You're watching Business Live - our top story.

:16:26. > :16:27.The biggest names in tech are in Las Vegas for

:16:28. > :16:42.It is the Consumer Electronics Show, it comes around again.

:16:43. > :16:46.It has, another year. It is... Arguably... Arguably... Arguably?

:16:47. > :16:48.It's arguably the biggest event on the tech calendar and we've

:16:49. > :16:51.already seen one start-up unveil what it claims to be the world's

:16:52. > :16:58.Yes, we'll keep you up to date with the latest from CES,

:16:59. > :17:01.both here and on the BBC News website.

:17:02. > :17:08.Dave Lee is there, loads of people are there. Arguably there is loads

:17:09. > :17:11.of people. CHUCKLES

:17:12. > :17:14.This morning we're getting the Inside Track on one company

:17:15. > :17:17.which is taking on the titans in the world of foreign exchange.

:17:18. > :17:19.When it began operations in Dublin seven years ago,

:17:20. > :17:24.Currency Fair was the world's first peer-to-peer currency exchange.

:17:25. > :17:27.And since then almost $4.5 billion-worth of currency has been

:17:28. > :17:29.exchanged on its site - that's around ?3.6 billion.

:17:30. > :17:33.Well, users log on to the website or smartphone app, and it then

:17:34. > :17:37.connects buyers and sellers of different currencies.

:17:38. > :17:40.Users can also set their own exchange rate, but the model relies

:17:41. > :17:48.on people being willing to trade with each other.

:17:49. > :17:50.The company claims that by cutting out the middleman,

:17:51. > :17:53.it makes it cheaper and faster to exchange money than other

:17:54. > :18:08.Brett Meyers, its co-founder and Chief Strategy Officer is here.

:18:09. > :18:15.Can I ask this question beforehand? Are you a tech company or a finance

:18:16. > :18:19.company? If I had to pick I would say finance because we deal with

:18:20. > :18:23.people's money, security compliance is hugely important but we are a

:18:24. > :18:26.finance company enabled by some unique technology. You have

:18:27. > :18:33.relatives in South Africa and I am an Australian. For the dummies here,

:18:34. > :18:37.I want to see how this works, I want South African Rand and I'm in

:18:38. > :18:41.Australia and I log on and Sally is in South Africa and she has rammed

:18:42. > :18:50.that she can sell me. And die by the Rand? You would never buy the

:18:51. > :18:54.currency yourselves, it is depersonalised there is no risk of

:18:55. > :18:58.the other person not paying or not having the funds. That is high risk

:18:59. > :19:04.with Aaron and I. There is always issues! This is a company which was

:19:05. > :19:09.started when? We started in 2009 working full-time and launched in

:19:10. > :19:12.2010. That is quite key, isn't it? In the last couple of years there

:19:13. > :19:17.has been a lot of financial companies starting. Thin tech has

:19:18. > :19:21.really taken off. Is the fact you were around then what important

:19:22. > :19:27.because there is a lot of competition now? It is important

:19:28. > :19:31.from the sense it takes time to build trust. The fact we have been

:19:32. > :19:36.around for six or seven years means people can research. There were not

:19:37. > :19:40.that many others around at the time. Transfer Wise went around then and

:19:41. > :19:45.many of your main competitors didn't exist. Banks did and they are our

:19:46. > :19:50.main competitor. If you added together all of the transaction is

:19:51. > :19:55.being done by the new Currency Fair FinTech firms it is a small piece of

:19:56. > :20:00.the pie, we are bringing up the sector rather than challenging each

:20:01. > :20:05.other. Can you briefly explain this? You were the CEO of the company and

:20:06. > :20:09.you are now chief strategy officer. You gave yourself aid E-Motion,

:20:10. > :20:15.didn't you? That's not the way I look at it. But effectively we got

:20:16. > :20:19.the point, I think, where we got to the point where scale was the most

:20:20. > :20:22.important thing, this was my first CEO role and I can certainly learn

:20:23. > :20:28.how to do that but I thought what is the best way to get this company big

:20:29. > :20:32.as soon as possible. Put a proper CEO in? And you focused on what you

:20:33. > :20:35.wanted to do. Exactly, I'm able to look at the markets and where we

:20:36. > :20:40.want to be in the next couple of years so it is a win- win for the

:20:41. > :20:43.company. For the viewers' perspective on this, talking about

:20:44. > :20:47.money changing hands and currencies but you are talking about big sums,

:20:48. > :20:51.it is not I want to go on holiday to South Africa and I want a couple of

:20:52. > :20:56.hundred around. It could be, couldn't it? It is not small

:20:57. > :21:03.amounts, you're talking about big amounts? The average is about 5000

:21:04. > :21:07.euros, ?4500. But we do do some smaller stuff. But where our unique

:21:08. > :21:10.value kicks in is when the transaction is a bit larger and

:21:11. > :21:14.people stop thinking about it as a payment and more of a personal

:21:15. > :21:18.finance decision. I've saved up money in Australia, I'm coming home

:21:19. > :21:22.to the UK, you're not thinking what is the quickest, fastest, easiest

:21:23. > :21:28.way to get that back. Your commission on the movement is much

:21:29. > :21:33.less than a high street bank. On average we pay about a third of a

:21:34. > :21:37.percent. There is some criticism about the model, that there is some

:21:38. > :21:42.bold durability, for example, with Brexit. Where there are lots of

:21:43. > :21:45.peer-to-peer sites that had to stop trading because it was Ravitch, the

:21:46. > :21:53.volatility of the pound, for example. We stayed open during

:21:54. > :21:56.Brexit which was a big validation of our model because we operate a real

:21:57. > :22:00.exchange where we allow people to choose to wait for a rate that suits

:22:01. > :22:04.them, or exchange immediately. Because of that we allow a market to

:22:05. > :22:09.build upon both sides and that was able to handle the volatility really

:22:10. > :22:16.well. With so many companies like you was around, these online FinTech

:22:17. > :22:21.companies, how does the user finds those that are reliable, because

:22:22. > :22:26.it's about trust and there is a real worry about these smaller companies

:22:27. > :22:32.not being able to follow through with financial commitments? Exactly

:22:33. > :22:37.and you see this not just in foreign transfers but lots of areas of

:22:38. > :22:42.Fintech and it is not certain whether they are subsidising to

:22:43. > :22:45.build up a user base or whether they are cheaper. Both are true so

:22:46. > :22:48.consumers need to do their research and the fact we have been around a

:22:49. > :22:51.long time of the weather model works is a good test. We appreciate your

:22:52. > :22:59.time, thank you for coming on. In a moment we will look at the

:23:00. > :23:04.Apple story again and the New York Times. Here is how to stay in touch.

:23:05. > :23:09.The business life page is where you can stay ahead with all of the day's

:23:10. > :23:12.breaking business news. We will keep you up-to-date with the latest

:23:13. > :23:16.details with insight and analysis from the BBC's team of news and

:23:17. > :23:22.editors around the world. We also want to hear from you. Get involved

:23:23. > :23:27.on the BBC Business Live web page at BBC. Comports slash business. We are

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:23:35. > :23:38.news. Business live on TV and online whenever you need to know.

:23:39. > :23:45.Dave is back as promised. Let's start with this story about Apple.

:23:46. > :23:50.There was one time not long ago when Apple were selling more smartphones

:23:51. > :23:54.in China than the US and the story highlights how important the Chinese

:23:55. > :24:03.consumer is to Apple. The company used end point is don't mess with

:24:04. > :24:09.these people. The remains that Apple have taken this app from the Chinese

:24:10. > :24:11.and English language perspective from the App Store, to make sure

:24:12. > :24:17.they still have control over the media. What the capitalist system

:24:18. > :24:21.that works so brilliantly in the Communist regime, they don't want it

:24:22. > :24:25.messed up and Apple know the rules. It's the same way when Rupert

:24:26. > :24:29.Murdoch had issues over there, it takes time to learn rules with the

:24:30. > :24:33.Chinese but if you want to play in their ballpark it is what you must

:24:34. > :24:38.do. This article is the New York Times reporting on itself and what

:24:39. > :24:42.is going on with Apple. Apple's view is a very generic view. I can't

:24:43. > :24:45.really say what they really think, whereas the New York Times is no

:24:46. > :24:49.holds barred, it is just censorship of the media as far as they are

:24:50. > :24:55.concerned. Absolutely, want to play by the rules that is what you have

:24:56. > :24:57.to do with China. Let's talk about viewers' gadgets.

:24:58. > :25:06.I want to talk about the Australian company that made more than 2000

:25:07. > :25:10.times return on its investment. The ice-making machine. I love my

:25:11. > :25:15.ice-making machine. I have one of those American fridges at home. In a

:25:16. > :25:22.hot country. We might be moving soon and I can't take it with me. I want

:25:23. > :25:25.the thingy. Colin says it is his laptop. I imagine lots of people

:25:26. > :25:30.would say that, more powerful than a mobile and more mobile than a PC. At

:25:31. > :25:35.the other walked out and left your iPad at home and felt like you have

:25:36. > :25:39.left your right arm? I have gone back for it, it is not even a

:25:40. > :25:44.discussion. When you get to my age, trust me, it happens quite often. I

:25:45. > :25:48.am getting there. David, so nice to see you, thank you

:25:49. > :25:53.for coming in, and have a wonderful New Year.

:25:54. > :25:58.Have a really good day whatever you are up to, whatever device you can't

:25:59. > :26:00.live without. Enjoy. Seat you later, goodbye.