09/01/2017 BBC Business Live


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This is Business Live from BBC News with Jamie Robertson


This is Business Live from BBC News with Jamie Robertson


Fiat Chrysler says it will invest a billion dollars


in the United States as the Detroit Motor


Live from London, that's our top story on Monday 9th, January.


The Detroit Motor Show is underway, and the world's car-makers


are looking to try to steer the way ahead, amid big changes


Plus, we look back at the birth of a revolutionary product -


it's ten years since the launch of the iPhone.


The markets. The markets in the UK are starting up and the markets in


Asia depressed, not a huge amount of movement.


And we'll be getting the inside track on how


crowd-funding is changing the way that solar energy projects


It is ten years on from the launch of the iPhone,


we want to know what you think will be the next game-changer?


Let us know - just use the hashtag #BBCBizLive.


Over the next few days, the world's car makers will be


taking the wraps off their latest products at the Detroit Motor show.


The car seems more popular than ever - an estimated 75 million


were sold last year, but 2017 is already beginning


to look like a big year of change for the industry.


Not least because more of them are looking to invest


In the last few hours Fiat Chrysler has said it will put $1 billion


into two US factories, which will create 2000


The incoming President Donald Trump has been piling pressure


on carmakers to make the vehicles they sell in the US in the US.


Meanwhile the traditional business model of the industry is changing


with the disruption coming from the technology firms.


Google, Apple and Uber are pushing innovations like driverless


And that will also mean more electric cars.


Global warming and pollution are just two of the reasons


many of the established players are focusing their


In particular there are concerns about diesel engines


with cities including Paris, Mexico City, Madrid and Athens


all planning to introduce some kind of ban over the next decade


And then there is the prospect of a free trade era slowing down -


that's why Fiat Chrysler is investing in the US,


with Donald Trump threatening several leading manufacturers


with tariffs for building cars in Mexico.


Thank you. Talking through the key issues facing the motor industry.


Earlier I spoke to the boss of Rolls-Royce. Talking through some of


the issues which is interesting because Rolls-Royce has not launched


itself in a major way yet into the electric car industry and it is


something I grilled him about, but when it came to other issues, as


well, we talked about the situation with regards to the car industry in


general and where things are headed. Hopefully we will get the view of


Karel Williams. At first, another story that was big in business. It


was the issue with regards to the US, the President-elect, Donald


Trump, moving to push US car manufacturing, stopping them


basically moving manufacturer to Mexico or the decreasing


manufacturing in Mexico and back into the US. We got an expert view


on that. It is plus 6% worldwide what we have achieved, a good year,


in the light of considerable events in markets worldwide so 6% is great,


over 4000 cars, a great achievement. We will let you get away with that


but you solve most of your cars in the United States. The biggest


market. After that you saw a 25% rise in sales in the UK. The UK has


been a good market for us last year. Plus 25%. The car market in total


was strong. Why was the U:K.'s strong in 2016 for you? You see high


net worth individuals in the UK and they are our target groups. The


economic climate was not bad in this way and for that reason we have seen


good business. When it comes to the industry and changes we have talked


about, the Donald Trump effect, technology, the likes of Google and


Apple getting involved. Where do you see yourselves in the future? Some


argue you have not necessarily moved with the times as quickly, for


example, electric, you were slow to get a head-on. We are in a different


segment, we are not a traditional automotive recess. We are a luxury


business. Our clients do not need a Rolls-Royce to go from a to B. They


have several cars. They will not accept compromises on charging


times, stuff like that. More people want environmentally friendly


vehicles that will get them there may be by plugging in as opposed to


using old fuel. We presented last year the vision car, which is full


autonomous driving, fully electric and that is how we see Rolls-Royce.


Where will we be able to drive one of those? The next ten years,


definitely. He was that? You got it wrong stop I didn't get it wrong.


That was the boss of Rolls-Royce. We know who he is. I have interviewed


him many times. However, I was told we would run somebody else we spoke


to earlier. We have spoken to a lot of people about the Detroit motor


show. Let's move on. Two senior Samsung executives have


been questioned as part of the corruption probe surrounding


South Korea's impeached It's reported that they're


being treated as witnesses. The electronics giant is accused


of giving large donations to non-profit foundations operated


by a close confidante of Ms Park, allegedly in exchange for political


support for a controversial merger. US authorities have arrested


a Volkswagen executive who faces charges of conspiracy to defraud -


this according to Oliver Schmidt led


Volkswagen's regulatory The report suggests he was arrested


on Saturday by FBI officials. If confirmed, Mr Schmidt


could become the most senior Volkswagen employee to face criminal


investigations relating Venezuela's president,


Nicolas Maduro, has announced a 50% It's the fifth increase in the last


year and is supposed to help Venezuelans,


who are struggling to cope with hyper-inflation


which is estimated to be around The opposition says Mr Maduro


is responsible for an economic crisis which has been engulfing


the oil rich country We will talk about cars. We have


managed to establish a link. Karel Williams is a professor


at Alliance Manchester This is the guest we intended to


speak to at the beginning of the programme. Thanks for joining us. We


have mentioned the challenges facing the car industry. From your point of


view what is the big issue? There are three big issues. First, free


trade with Mexico after President Trump. Secondly, the mobility


revolution, autonomous cars, and third, diesel cake. If you put them


together it is a perfect storm for the motor industry. Trade, of all


the things we buy, the car is possibly the most complex in terms


of the way it is put together. If you have a hurricane in Thailand it


can disrupt a production line in Dagenham. If you have a more


protectionist world, Mr Trump perhaps in the US, and other regimes


around the world, what happens? It is an interesting question. A formal


public position of the industry is tell us the rules and we will adopt.


-- adapt. If we look at it more broadly there is an important issue


that an industry like the American assembly industry is heavily


dependent on cheap imported components from Mexico. 40% of


components in US assemble cars come from Mexico. What the industry will


hope is President Trump makes noises about assembly but does not disrupt


the supply chain arrangements. What if he does? He seems to be a man


with a mission. It is an interesting question, the whole thing about


President Trump is there is ambiguity. He is between his


midwest, Westervelt voters and his Cabinet of billionaires and exactly


how he pitches it I do not know. Assembly in Mexico will be frowned


upon -- west belt. A reordering of the supply chain, I rather doubt.


Thanks. China's ruling communist party has


introduced tougher rules for it's corruption investigators


after anti-corruption staff were put Steven McDonald is in Beijing. Tell


us more. China has half a million anti-corruption investigators


answering the call from the president to go after those who are


seen to have behaved corruptly within the Communist Party. Now, to


some extent, the spotlight is turned on them with new rules. How they


investigate people, how they conduct surveillance. And that is because


7900 of these investigators are said to have been punished in some way,


and 17 of them have been investigated for having committed


their own corruption. This is about the party trying to shore up public


faith in this anti-corruption drive. Thanks. An interesting story. China,


it would seem, on its own mission when it comes to clamping down on


corruption. It comes in waves. There is always a clamp-down in corruption


in China. Every few months. We can talk to Richard Hunter about the


markets. Good morning. Nice to see you. We are talking about markets on


the rise. The FTSE, near all-time highs. It is about anticipation. The


two things we are looking forward to in 2017 of the ramifications of when


the President elect becomes president, at the end of next week,


and after we have triggered Article 50, to see how the UK economy will


be affected, which as we have seen from the data, it has not been so


far. There has been an effect in the sense Theresa May, and impacts with


what she says on her plans. This is one of the major reasons we saw such


a rise from the FTSE 100 last year which is good news for the market.


Up to 85% of earnings for FTSE 100 companies come from overseas are the


weaker pound turbochargers our own market. The American market is going


ahead in anticipation of the boost Donald Trump will give to the


economy. It has been contradictory tale. Some are doing well and some


having a hard time Christmas was not back good. It was against a soft


Christmas last year. There seems to be a chasm opening up between online


retailers and physical presence retailers. Clicks and mortar. I see,


people who straddle both will stop in terms of figures last week, the


outlook was guarded, although they are famous for that and it is


important we get a big names coming through this week to get a more


balanced picture of whether it was a good Christmas but the UK consumer


could start to be trench, depending on the actual outcome of Brexit when


it happens. Good to see you. Nice to have


someone in the studio. Things do not go wrong! He is coming back later.


We will meet a company trying to end energy poverty through the help of


crowdfunding. First, in the UK we have lots of news about the banking


sector. The Government has sold a further 1%


in Lloyds Banking group. Our business editor Simon Jack is in


the newsroom. It is not the government which owns the biggest


stake at the moment, it is somebody else? It was bound to happen.


Because the government has slowly sold off its original 41% stake it


got back in 2008 overtime. Although it is a significant milestone, it is


no longer the biggest shareholder in Lloyds Bank, which passes to


Blackrock, the US financial group. Selling shares slightly below the


price they bought in at all those years ago, but they have pretty much


broken even and return some 17.5 billion of the original 20 billion


put into it. It is a moment to recognise the fact noise bank has


done a good job in cleaning up its act and turning itself into quite a


boring UK-based retail bank. It was a simpler proposition to fix than


RBS, the other bank in which the government owns a massive state.


RBS, the contrast is stark. We still own 73% of that and eight


years on the bank is still losing money and it is actually looking


right down the barrel perhaps as early as this week of another


whopping fine, this time from the US Department of Justice over those


mis-sold sub-prime mortgages. If we get a $10 billion fine, the bank


will think that's a good result. It was a more complicated proposition


than Lloyds to fix. It was a global bank. On some measures it was the


biggest bank in the world with tentacles just about everywhere.


Lloyds is on the right track, RBS, a long time before we see much of that


money back that we put in nearly eight years ago. OK, Simon, thank


you very much indeed. Simon Jack there, our business editor.


There is a lot about that story on our website. Something we haven't


mentioned so far, even though we have dedicated quite a bit of the


programme to it, it is BMW, they are telling us that they are determined


to build their plant in Mexico despite the fact that Ford, Fiat and


others have gone back on that decision. BMW ploughing ahead with


building a plant in Mexico, contrary to president-elect's, Donald


Trump's, favourite policies. Our top story, Fiat Chrysler says it


will invest $1 billion in the United States


as the Detroit Motor A quick look at how


markets are faring. London up. Just a bit. Meaning, you


know, it keeps going on and on, doesn't it? This whole record rally


as it were. Very close to all-time highs. Not quite there. We have got


another 30 or 40 points before we get there.


For many of us, a reliable power supply is something


We turn on the fridge or the TV and it just works.


But for many others it's a very different story,


the International Energy Agency says 1.2 billion people around the world


One crowd-investment platform hoping to change this is called Trine.


It was launched in February and with the help of 500 investors,


the business has already funded eight solar energy projects


access to electricity but the company says its platform


could help millions more around the world.


Sam Manaberi is the Founder and CEO of Trine.


Nice to see you, Sam. So next month you are a year old. Yes, thank you


for having me. Just tell us about why you launched this nearly a year


ago. What gave you the idea? It all started with solar and finance


because financing of solar takes away the upfront cost, the burden of


that. As long as you can sell solar power cheaper than competing fuels,


solar will win. Where did you get the idea? You're based in... In


Gothenburg. You are talking about solar energy for lots of people in


sub-Saharan Africa. If you come from the side of solar financing, you see


this problem, 1.2 billion people, that's one in five people that are


using Kerr roe sown and diesel and you want to have a solution to that


problem and if you want to fund it, crowdfunding. So where are you


getting your investors from, are they northern European investors or


are they from everywhere? They are from 20 European countries so far.


We are live in all the EAA countries, here in the UK, with a


licence, yeah. What kind of return are you offering? Somewhere between


5% and 7% currently. And the funds are lent on to the entrepreneurs in


southern Africa? These are solar entrepreneurs that do the


installation and they need working capital to scale their business. But


what are you charging them? We charge them somewhere between 10%


and 16%. That's a lot. That's a lot. You have to be competitive for us as


well and so we are, otherwise they wouldn't use us. Yes, we are in the


market place with a competitive rate. You are the financial aspect,


you don't provide the panels, you don't fix it and put it up and set


it up and connect people to electricity? Exactly. They do that.


How do you make sure they are not ripping off their customers in Kenya


for example? Right. That's an interesting place to start. These


are really, the crowd investors and the solar entrepreneurs, they are


the heroes of our business. They have track records. They have done


impact. They know how it works. It is not a question about ripping


anybody off. But we have to take your word for it, don't we? You can


see and follow the projects digitally. You are there. You can


fly to the place if you want to. It is not this generic band of


products. It is specific and you can follow it almost on a day by day


basis. Isn't there a moral problem you have got western investors


making 5% to 12% return on the back of entrepreneurs paying interest on


their funds? I don't think so at all. I think that business is


sustainable and it is proven itself over the test of time. So as long as


the market, these are markets where mobile phone charging could cost


between 30 and $50 per kilowatt hour, whereas we pay, you know, 20


cents in our part of the world. To really compare interest rates to


here in Europe or Sweden or London doesn't work. It is a different


game. Sam, we are going to have to leave it there which is a shame


because there is so much more to talk about. We will keep an eye on


how it goes. It's perhaps hard to imagine these


days a world without smart phones But today marks an important event


in the history of technology with the launch of the original


Apple iPhone. It wasn't the first


smartphone but it could be Our correspondent Rory Cellan-Jones


was at the original launch of the product in San Francisco


and here's part of his So here it is, the shiny


new iPhone just unveiled here. It can go on the internet,


you can do your e-mail, you can play music and video


and you can even make phone calls. So why so much excitement


about this device? Just who would queue up at 7am


on the streets of San Francisco? Apple's devoted fans, that's who,


determined to find out One wants to know the latest


Mac products as soon Inside, the man who has revived


the company he founded was not We're going to make some


history together today. After creating the iPod,


the must-have gadget of the past decade,


Steve Jobs has spent years wondering It's a sleek device controlled


by a touch-screen and it is supposed to bring Apple's design


and computing skills Good morning.


How can I help you? Yes, I would like to order 4,000


lattes to go, please. No, just kidding!


Wrong number, thank you. You might think it is


just another new phone, but the Apple fans were almost


hysterical with excitement. Ten years ago that was Steve Jobs


the then boss of Apple. Does that bring back memories? Ten years. I


have still resisted. You haven't got one? I have got some Apple stuff,


but not the Apple phone. Presumably you have got an android device? I


do. What is the next big one? The way we're going, it looks like


driverless cars could be the thing of the future particularly I'm


thinking in terms of freight, you know, a long desert distances rather


than urban. Just to illustrate what a game changer this, it is on the


front page of Arab News today. Appleholics celebrate as the iPhone


turns ten. One individual spent $50,000. He


describes himself as an Appleholic! You can do so much else on it. Rory


has written a piece on BBC online which is interesting. He says in the


past, before this time ten years ago, phones were basically for


calling people. They're not, they are hardly that now. Calling and the


odd text. Not even a photo. I remember a strategy piece 20 years


ago saying it wouldn't be long before you could live your life


without moving from your house because the way the internet was


moving on. The fact of the matter is, of course, providing that you


have got a hand-set with you, there aren't too many things that you


can't do without it. Thank you Richard. We have heard


from you, of course, which is something we hope to do on Business


Live. Luke says the game changer will be the self driving car.


Hello. If your weekend was anything like mine, you probably sat looking


at the mild face of winter, laden skies, visibility not that great, a


bit of rain in the forecast too. Well, we have


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