09/01/2017 BBC Business Live

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