:00:08. > :00:09.This is Business Live from BBC News with Aaron Heslehurst
:00:10. > :00:15.Fiat Chrysler has been accused of not telling authorities
:00:16. > :00:18.about software that cheats emissions in thousands of its
:00:19. > :00:40.Live from London, that's our top story on Friday 13th January.
:00:41. > :00:49.US watchdogs accuse Fiat Chrysler over its emissions software.
:00:50. > :00:51.The boss calls it "absolute nonsense".
:00:52. > :00:54.Plus - is it a console, or a handheld?
:00:55. > :00:56.Nintendo takes on Sony, Microsoft and mobile phones
:00:57. > :01:08.But the questions is, can it convince gamers to switch?
:01:09. > :01:17.Markets, as the global rally continues we will tell all. And the
:01:18. > :01:20.inside track on Donald Trump's business week later. You can get in
:01:21. > :01:25.touch with the programme using the We start in the US -
:01:26. > :01:43.where car giant Fiat Chrysler is denying it faces its own
:01:44. > :01:47.Dieselgate scandal - just a day after Volkswagen
:01:48. > :01:50.was fined more than $4 billion The US regulator -
:01:51. > :01:54.the Environmental Protection Agency - is accusing Fiat Chrysler
:01:55. > :02:00.of failing to disclose emissions software, at least
:02:01. > :02:02.eight different types, installed in thousands
:02:03. > :02:06.of its diesel vehicles. EPA says the software
:02:07. > :02:09.allowed the cars to exceed pollution limits and
:02:10. > :02:11.pump out higher levels But the company's boss says it
:02:12. > :02:15.did nothing illegal. The investigation involves
:02:16. > :02:23.the Jeep Grand Cherokee SUV and Dodge Ram pickup made
:02:24. > :02:28.in the last three years. That adds up to more
:02:29. > :02:32.than 100,000 vehicles - The EPA says Fiat Chrysler could be
:02:33. > :02:41.liable for fines of up But Fiat Chrysler's boss
:02:42. > :02:55.Sergio Marchionne called the investigation "absolute
:02:56. > :02:56.nonsense" - he says there was never an intention
:02:57. > :02:59.to cheat emissions tests. The company's stock plunged
:03:00. > :03:10.as much as 16% on the news, although it did recover
:03:11. > :03:15.after Mr Marchionne gave a conference call to reassure them,
:03:16. > :03:20.ending about 10% down. Jim Holder - the editorial director
:03:21. > :03:31.at haymarket automotive which publishes Whatcar,
:03:32. > :03:40.Autocar and the is it like Volkswagen again? That
:03:41. > :03:44.started small and snowballed quickly. They faced investigation in
:03:45. > :03:47.the United States. That engine is sold elsewhere in the world but
:03:48. > :03:53.doesn't have quite the same software. The chief Mike has said
:03:54. > :03:57.it's absolute nonsense. Not the same reaction we got from VW which was a
:03:58. > :04:07.more slow burner. This has as well to a degree. There's already been an
:04:08. > :04:11.18 month investigation. Marchionne is adamant but we are waiting for
:04:12. > :04:18.the investigation to begin. There is a timeline here. There is a
:04:19. > :04:25.deadline, but Fiat Chrysler are waiting for the Trump Administration
:04:26. > :04:32.to come in. They are playing for that time when it might be a bit
:04:33. > :04:35.softer. Marchionne is friends with the soon-to-be President Trump. It's
:04:36. > :04:41.fair to say they have a good relationship. The three American big
:04:42. > :04:45.three car manufacturers, only Fiat Chrysler hasn't been criticised by
:04:46. > :04:50.Twitter in recent weeks. Some of those cars do get made in Mexico, it
:04:51. > :04:53.has to be said. But do you think consumers will care? Let's say they
:04:54. > :05:00.got off scot-free because under the Trump presidency etc. Will the
:05:01. > :05:04.consumers still buy these cars? We have a great parallel in VW and they
:05:05. > :05:09.are now the world's largest car-maker. They faced this negative
:05:10. > :05:13.publicity and are now the world's largest car manufacturer so
:05:14. > :05:17.consumers don't seem to care. It's accelerated plans to move into
:05:18. > :05:20.electric as well. They know they have to to transform themselves.
:05:21. > :05:29.Fiat Chrysler can't move as fast as VW most likely. We have seen cities
:05:30. > :05:34.like Paris, Madrid, Mexico City, all say that in the middle of the next
:05:35. > :05:38.decade they will get rid of diesel. Stories like this, do you think that
:05:39. > :05:45.accelerates... See what I did there? Accelerate the demise of diesel? It
:05:46. > :05:48.does. There are clean air plans in London as well. Public trust is
:05:49. > :05:52.waning. Figures dipped slightly last year. There is better and cleaner
:05:53. > :05:56.technology coming which could replace diesel to some degree over
:05:57. > :05:59.the next few years. By getting this rolling before the Trump
:06:00. > :06:04.Administration comes in, does it guarantee it will be seen through?
:06:05. > :06:08.It won't come to a sudden halt. A couple of weeks later and it might
:06:09. > :06:13.have died a death. There is a fair suggestion that could be the case,
:06:14. > :06:17.by getting it through now the wheels are Roebling and Fiat Chrysler will
:06:18. > :06:25.have to receive the software was cheating the admissions system --
:06:26. > :06:31.the emissions system. For those of us with diesel cars, we are screwed,
:06:32. > :06:38.right? Don't go buying diesel is the thing.
:06:39. > :06:42.Samsung chief Jay Y Lee has been questioned for over 22
:06:43. > :06:44.hours on suspicion of bribery in a corruption scandal involving
:06:45. > :06:51.The South Korean special prosecutor's office is investigating
:06:52. > :06:56.whether Samsung provided $25 million to a business and foundations
:06:57. > :06:59.backed by Park's friend - in exchange for the national pension
:07:00. > :07:02.fund's support for a 2015 merger of two Samsung companies.
:07:03. > :07:04.It says it will decide "soon" whether to issue
:07:05. > :07:11.Shares of Japanese airbag manufacturer Takata have risen
:07:12. > :07:18.on reports it will settle a lawsuit with US regulators.
:07:19. > :07:21.The firm is expected to pay up to $1 billion and plead
:07:22. > :07:24.guilty to criminal wrongdoing over faulty airbags, which have been
:07:25. > :07:27.linked to at least a dozen deaths and more than 100 injuries.
:07:28. > :07:29.Most major carmakers have been affected by the fault,
:07:30. > :07:31.with around 100 million Takata airbags recalled globally.
:07:32. > :07:36.Takata shares rose more than 16% in early Tokyo trading.
:07:37. > :07:40.Big news for India's aviation industry as domestic carrier
:07:41. > :07:42.Spicejet has announced a deal with Boeing to buy
:07:43. > :07:48.The order is the biggest in Spicejet's history,
:07:49. > :07:51.and is estimated to be worth $20 billion.
:07:52. > :07:53.The Indian airline company was struggling to make profits
:07:54. > :07:57.less than two years ago, but has turned its business
:07:58. > :08:08.around to compete with its closest rival, IndiGo.
:08:09. > :08:14.205, is that a record number? A mere 20 billion!
:08:15. > :08:16.Now to another big story this morning -
:08:17. > :08:21.It's just been unveiled by Nintendo, and it's called the Switch.
:08:22. > :08:25.It can work as a handheld gaming device - or plug into your TV and be
:08:26. > :08:32.Nintendo hope they can cash in on the surge in mobile gaming -
:08:33. > :08:36.remember the success of their own Pokemon Go -
:08:37. > :08:39.and also take on the Microsoft XBox and Sony Playstation
:08:40. > :08:45.It will go on sale on March 3rd at around $260 in Japan
:08:46. > :08:48.And - hopefully - make everyone forget about the disastrous
:08:49. > :09:05.Alex Wood is Editor of The Memo and joins us now.
:09:06. > :09:14.What are they doing with this? I'm not a tech head, but it seems a bit
:09:15. > :09:19.of a throwback. It's all about mobile gaming, that's the industry.
:09:20. > :09:22.Exactly, we should have seen this about five years ago. For me it
:09:23. > :09:25.comes down to the market for it. Looking at gaming as a whole. Mobile
:09:26. > :09:29.gaming is huge, very much for the gaming is huge, very much for the
:09:30. > :09:33.casual gamer. At the other extreme you have the PlayStation, the Xbox,
:09:34. > :09:43.for the more hard-core gamers. Where does this fit? Let's be -- will it
:09:44. > :09:50.be all things to all men and women? It's a jack of all trades device. My
:09:51. > :09:56.bag is already full with a laptop, smartphone etc. It will not replace
:09:57. > :10:01.Mike laptop, tablet or smartphone. So it's another thing I have to put
:10:02. > :10:06.in my bag. $300 is a lot of money to spend on a new device that's wildly
:10:07. > :10:12.outclassed by other competitors. Are they actually considering a mobile
:10:13. > :10:17.phone is about alternative. They have shoved Mario over. When the
:10:18. > :10:22.iPhone seven launched, there was huge excitement when Nintendo
:10:23. > :10:27.realised smartphones had happened. They shot to the top of the charts.
:10:28. > :10:30.Research was quite poor and people pointed out it had a lot of issues
:10:31. > :10:36.but I think they are missing a trick. Sega is making huge amounts
:10:37. > :10:42.of money on royalties from old games. People of my generation have
:10:43. > :10:50.lots of affection and love for Mario and Zelda. When they did finally
:10:51. > :10:59.bring Mario out they brought it very cautiously. They did it baby steps.
:11:00. > :11:03.It's very defensive, the way Nintendo is operating. It's the old
:11:04. > :11:10.market, we have the hardware. This machine doesn't even use disks, its
:11:11. > :11:17.cartridges. On the other side, it has infrared motion sensors and you
:11:18. > :11:24.can use hand play, to play paper, scissors, rock. It's got me excited!
:11:25. > :11:29.It looks interesting, but if we rewind back to the original Wii,
:11:30. > :11:33.which was a huge and unexpected success, it was a relatively cheap
:11:34. > :11:37.machine. Families could get it for Christmas. But $300 is a difficult
:11:38. > :11:41.sell. We appreciate you coming in and chatting.
:11:42. > :11:43.To India now - and the country's most powerful
:11:44. > :11:54.Natarajan Chandrasekaran has been named the new Chairman of the $100
:11:55. > :12:05.It has assets all over the world including
:12:06. > :12:08.Jaguar Land Rover in the UK - as well as Tata Steel.
:12:09. > :12:13.He will have to work hard to repair damage to the group
:12:14. > :12:15.after the acrimonious sacking of the previous boss Cyrus Mistry,
:12:16. > :12:17.who alleged serious ethical and governance problems
:12:18. > :12:19.at the company and is now being sued.
:12:20. > :12:39.Tell us what's happened. This wasn't and unexpected move. When Mistry
:12:40. > :12:53.stepped down there was always rumours about who would replace.
:12:54. > :12:59.Tempo Mac only takes charge of Tata group group in March. --
:13:00. > :13:08.Chandrasekaran and takes charge in March. He has big challenges. The
:13:09. > :13:14.image of the group that has taken a beating, and the businesses, many of
:13:15. > :13:16.which are in a lot of trouble. We appreciate you giving us the update.
:13:17. > :13:28.Let's stay with the markets. Asian shares are on track for a
:13:29. > :13:34.weekly games today. While the dollar is poised for a losing week.
:13:35. > :13:36.Investors disappointed that Mr Trump failed
:13:37. > :13:41.to elaborate on stimulus plans at a news conference two days ago.
:13:42. > :13:44.Europe - pretty much the same disappointment.
:13:45. > :13:50.Remember all of this after that global rally fuelled by hopes that
:13:51. > :13:53.the president-elect would see a boost to the US economy,
:13:54. > :13:56.but trading floors are turning more quiet with talk that the surge
:13:57. > :14:00.But for now let's find out what should be making the biz
:14:01. > :14:04.headlines over in the US today, here's Samira.
:14:05. > :14:12.The week will end with a lot of earnings news from top US banks as
:14:13. > :14:16.JP Morgan, Bank of America and Wells Fargo will all report. JP Morgan is
:14:17. > :14:20.the biggest US bank by assets and investors there will be looking to
:14:21. > :14:23.see if future profits will match expectations that have already
:14:24. > :14:28.high. Bank of America is the second high. Bank of America is the second
:14:29. > :14:31.largest US bank. Investors there will be looking to confirm their
:14:32. > :14:35.assumption that rising interest rates will provide a long-awaited
:14:36. > :14:44.boost in profits. They have driven up shares of the bank more than 30%
:14:45. > :14:46.since the US presidential election. And finally, Wells Fargo, the
:14:47. > :14:50.third-largest US bank. Investors will be paying close attention to
:14:51. > :14:54.the progress the bank is making as it works to overcome the long
:14:55. > :14:57.simmering sales problems that blew up in September. Hammering the stock
:14:58. > :15:04.price and forcing the resignation of its chief Mac.
:15:05. > :15:06.Joining us is James Quinn, group business editor
:15:07. > :15:16.Why did we get the sudden dip down towards the end of the market? I
:15:17. > :15:23.think a bit of fatigue, people are not as convinced... We are only on
:15:24. > :15:28.the 13th of January! Look at where we have come from since the
:15:29. > :15:32.referendum, up 14, 15% since that point already, it was the 11th
:15:33. > :15:36.record day, 13 consecutive highs. This market is nothing to do with
:15:37. > :15:42.underlying earnings, it is all to do with the pound?
:15:43. > :15:51.The Footsie. The Footsie, the pound, it is to do with Trump, hopes and
:15:52. > :15:57.dreams of infrastructure spending. There is a newspaper article
:15:58. > :16:00.floating around today, is it an investor or big trade? Neal
:16:01. > :16:09.Woodward, hello, Neill, he watches all the time! He said the rally in
:16:10. > :16:22.the market is like the bubble, the tech bubble we saw in 99. The dotcom
:16:23. > :16:29.bubble, nothing to do with momentum. He did not have a good year, his
:16:30. > :16:33.market was up 3%, so maybe he was trying to deflect it a little bit
:16:34. > :16:37.from his performance. What kind of stocks do you look at at the moment?
:16:38. > :16:43.When everything is being moved by the big economic movements,
:16:44. > :16:48.commodities and by the dollar and the pound, where do you look in
:16:49. > :16:55.terms of your investment? Where we are looking for value. Which is?
:16:56. > :17:08.Banks... They have had a terrible time! Certain banks will benefit
:17:09. > :17:12.from Trump reining back. Franks. I think certain UK banks, Lloyd in
:17:13. > :17:18.particular, is on a bit of a rise at the moment, certainly we saw below
:17:19. > :17:28.6%, the UK Government will be out by June, there is potential there. Is
:17:29. > :17:32.there a knock-on effect from the US banks if they get rid of this
:17:33. > :17:36.regulation? A slight effect but most UK banks have pulled out, Barclays
:17:37. > :17:42.is a shadow of what it was following the Lehman deal in 2008, I don't
:17:43. > :17:44.think the UK banks will start expanding into US investment
:17:45. > :17:48.banking. What about the retail sector here, it had a good
:17:49. > :17:56.Christmas, surprisingly? That is right, everyone bar Next has had an
:17:57. > :18:00.uptick in Christmas sales, M yesterday showing a return in
:18:01. > :18:03.fashion. I think all those retailers, Tesco, Morrisons, all
:18:04. > :18:10.warning about food inflation this year. Will that hit sales? I think
:18:11. > :18:14.it will, the return of inflation, I think it will dampen sales by the
:18:15. > :18:17.end of the year, all of the retailers are cautious. James Green,
:18:18. > :18:20.always a pleasure, have a great weekend, we will see you very soon.
:18:21. > :18:26.It's a week to go until Donald Trump's inauguration as President,
:18:27. > :18:29.but are we any clearer about his economic policies?
:18:30. > :18:37.You're with Business Live from BBC News.
:18:38. > :18:40.Foreign visitors spent over ?725 million on British
:18:41. > :18:47.high streets in December, as the weakened pound prompted
:18:48. > :18:49.an influx of bargain-hunting 'Brexit tourists' to the UK over
:18:50. > :18:57.That's according to data from Worldpay,
:18:58. > :18:59.who say spending on foreign cards was up by 22% in December,
:19:00. > :19:01.with high-end boutiques and department stores in London
:19:02. > :19:15.He is not necessarily in our flashy newsroom today, are you? Know, just
:19:16. > :19:20.a bunch of screens behind you. I am at the other end of the flashy
:19:21. > :19:24.studio! I remember post Brexit when the
:19:25. > :19:28.pound dipped, we were looking at a certain luxury items in London doing
:19:29. > :19:32.well because foreigners were coming in and getting ten, 15% cheaper
:19:33. > :19:37.items? It seems to be the same story now,
:19:38. > :19:42.the British people going abroad things are more expensive now, I had
:19:43. > :19:45.a shock last time I was in Paris, for example, but it means for people
:19:46. > :19:50.coming the other way pound sterling has fallen quite dramatically
:19:51. > :19:52.against the dollar and against a basket of other major currencies
:19:53. > :19:57.which means Pretorius into the country it is great, they can go on
:19:58. > :20:02.a shopping spree and it can cost up to 20% less than it did before. The
:20:03. > :20:05.high street, which has suffered in other ways, we Brits are not
:20:06. > :20:09.shopping on the high street as much as we used to, we are shopping
:20:10. > :20:13.online instead, but tourists are making up some of the difference. As
:20:14. > :20:17.you would expect, a lot of them are coming to London and shopping a new
:20:18. > :20:21.Bond Street and other parts of the West End, and it does seem they are
:20:22. > :20:34.going for the luxury shops, perky and shops, handbag shops, but it is
:20:35. > :20:37.not just in London, they are also going to lobby is being shared and
:20:38. > :20:39.the majority seem to be coming from Hong Kong and China.
:20:40. > :20:41.There you go. The oh, go shopping! Have a great weekend. I can't afford
:20:42. > :20:45.it! That is because we work for the BBC,
:20:46. > :20:53.made! Tell us about shopping.
:20:54. > :20:59.It is a yacht! If you want to buy this, it will cost about 9 million
:21:00. > :21:07.euros. $9.3 million. That is cheaper than
:21:08. > :21:12.the first sale price back in 2012. Let's get it!
:21:13. > :21:23.Fiat Chrysler has been accused of not telling US authorities
:21:24. > :21:25.about software that regulates emissions in thousands
:21:26. > :21:33.The majority of those in the United States.
:21:34. > :21:36.And now let's get the inside track on the world of business -
:21:37. > :21:39.and its a week to go until Donald Trump becomes president.
:21:40. > :21:41.On Wednesday this week he held his first formal news
:21:42. > :21:44.Many commentators were concerned about the lack
:21:45. > :21:49.Meanwhile there are still unanswered questions
:21:50. > :21:52.about his business empire - Mr Trump plans to hand control
:21:53. > :22:02.But the US Office of Government Ethics criticised the plan.
:22:03. > :22:04.Let's get more with economics correspondent Andrew Walker.
:22:05. > :22:10.He has been in vision the whole time, smile! Andrew Walker, our
:22:11. > :22:16.economics correspondent, joins us. There is so much to talk about in
:22:17. > :22:21.terms of Trump this week. That press conference, we were waiting with
:22:22. > :22:25.bated breath! Those of us waiting for more meat on the bones in terms
:22:26. > :22:29.of his economic policies left disappointed, didn't we?
:22:30. > :22:32.Indeed, and in a way it is not that surprising, we knew he would talk
:22:33. > :22:36.about is conflict-of-interest in choosing what he would do about his
:22:37. > :22:40.own business interests, and then there was the salacious stuff, the
:22:41. > :22:43.security related stuff that came in...
:22:44. > :22:48.About Russia. What was that about again?!
:22:49. > :22:56.I am joking! Unsubstantiated, I am not going into it!
:22:57. > :22:58.Inevitably it overshadowed proceedings, but the markets would
:22:59. > :23:01.have liked more detail about economic policy, and I think two
:23:02. > :23:03.particular areas, the plans for a big boost in spending on
:23:04. > :23:08.infrastructure, questions about to what extent that will be financed by
:23:09. > :23:12.the government or to what extent the private sector will be involved,
:23:13. > :23:15.those are very important questions for what you as government finances
:23:16. > :23:19.will look like and what the infrastructure will look like, and
:23:20. > :23:22.the other big question is the persistent issue about trading
:23:23. > :23:27.policy, he has been talking a lot about the threat to American
:23:28. > :23:32.businesses making stuff in Mexico, threatening them with border taxes
:23:33. > :23:37.and I think the markets would have liked more hard information about
:23:38. > :23:40.that because there is some real tension there especially with some
:23:41. > :23:44.of the more established part of the Republican party in Congress, they
:23:45. > :23:47.are pretty free and don't particularly like the way he is
:23:48. > :23:50.moving. What is interesting about this is
:23:51. > :23:55.maybe the markets will have to, all already beginning to learn to react
:23:56. > :23:59.not to what he says but what he does, because up until now, since he
:24:00. > :24:04.was elected, the markets have jumped this way and that depending on the
:24:05. > :24:08.comments he comes out with. Maybe it needs to be, say what you like...
:24:09. > :24:15.And not just what he says, but what he tweets at 4am!
:24:16. > :24:19.What actually happens, what is done may not really be up to him, it will
:24:20. > :24:22.be up to his people, his team. And at the moment he is not
:24:23. > :24:26.president so they have nothing to get their teeth into in terms of
:24:27. > :24:31.what he actually does. There are some things they are fairly sure he
:24:32. > :24:34.will push ahead with, particularly on tax reform, cutting tax rates,
:24:35. > :24:39.simplifying the system for personal income tax and corporate tax, and
:24:40. > :24:44.the Republicans in Congress will be happy with that, and basically the
:24:45. > :24:48.markets like it. Ford likes it, to take one example, they mentioned it
:24:49. > :24:51.as one of the reasons why they are focusing not so much on Mexico
:24:52. > :24:56.border production but actually much more on the United States.
:24:57. > :25:04.Back into Detroit, I think. Can I do, not quite a handbrake turn but
:25:05. > :25:08.there is a connection, the Turkish lira, it can be heavily impacted
:25:09. > :25:15.with what goes on with the dollar? Indeed, the strengthening US dollar
:25:16. > :25:17.that we have had have slowly started raising interest rates, it is
:25:18. > :25:25.potentially an issue for many emerging markets. Most emerging
:25:26. > :25:29.markets have been OK in the last year or more. Turkey has been
:25:30. > :25:32.hitting new lows against the US dollar, partly to do with the
:25:33. > :25:37.security situation which has driven tourists away, so the Turkish
:25:38. > :25:41.balance of payments, trade deficit has been persistently large, but
:25:42. > :25:44.there are worries about the government and its attempts at
:25:45. > :25:47.leaning on the central bank, which many people think should be raising
:25:48. > :25:52.interest rates with inflation at 8.5%, but it is under pressure not
:25:53. > :25:57.to do that, so watch this space on the Turkish lira.
:25:58. > :25:59.Have a great weekend, thank you as always.
:26:00. > :26:02.We have run out of time, that is it from Business Live, thank you for
:26:03. > :26:16.joining us, more business news throughout the day.
:26:17. > :26:18.Hello, we have seen tricky weather conditions in the last 24 to 36