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This is Business Live from BBC News with Aaron Heslehurst
Fiat Chrysler has been accused of not telling authorities
about software that cheats emissions in thousands of its
Live from London, that's our top story on Friday 13th January.
US watchdogs accuse Fiat Chrysler over its emissions software.
The boss calls it "absolute nonsense".
Plus - is it a console, or a handheld?
Nintendo takes on Sony, Microsoft and mobile phones
But the questions is, can it convince gamers to switch?
Markets, as the global rally continues we will tell all. And the
inside track on Donald Trump's business week later. You can get in
touch with the programme using the We start in the US -
where car giant Fiat Chrysler is denying it faces its own
Dieselgate scandal - just a day after Volkswagen
was fined more than $4 billion The US regulator -
the Environmental Protection Agency - is accusing Fiat Chrysler
of failing to disclose emissions software, at least
eight different types, installed in thousands
of its diesel vehicles. EPA says the software
allowed the cars to exceed pollution limits and
pump out higher levels But the company's boss says it
did nothing illegal. The investigation involves
the Jeep Grand Cherokee SUV and Dodge Ram pickup made
in the last three years. That adds up to more
than 100,000 vehicles - The EPA says Fiat Chrysler could be
liable for fines of up But Fiat Chrysler's boss
Sergio Marchionne called the investigation "absolute
nonsense" - he says there was never an intention
to cheat emissions tests. The company's stock plunged
as much as 16% on the news, although it did recover
after Mr Marchionne gave a conference call to reassure them,
ending about 10% down. Jim Holder - the editorial director
at haymarket automotive which publishes Whatcar,
Autocar and the is it like Volkswagen again? That
started small and snowballed quickly. They faced investigation in
the United States. That engine is sold elsewhere in the world but
doesn't have quite the same software. The chief Mike has said
it's absolute nonsense. Not the same reaction we got from VW which was a
more slow burner. This has as well to a degree. There's already been an
18 month investigation. Marchionne is adamant but we are waiting for
the investigation to begin. There is a timeline here. There is a
deadline, but Fiat Chrysler are waiting for the Trump Administration
to come in. They are playing for that time when it might be a bit
softer. Marchionne is friends with the soon-to-be President Trump. It's
fair to say they have a good relationship. The three American big
three car manufacturers, only Fiat Chrysler hasn't been criticised by
Twitter in recent weeks. Some of those cars do get made in Mexico, it
has to be said. But do you think consumers will care? Let's say they
got off scot-free because under the Trump presidency etc. Will the
consumers still buy these cars? We have a great parallel in VW and they
are now the world's largest car-maker. They faced this negative
publicity and are now the world's largest car manufacturer so
consumers don't seem to care. It's accelerated plans to move into
electric as well. They know they have to to transform themselves.
Fiat Chrysler can't move as fast as VW most likely. We have seen cities
like Paris, Madrid, Mexico City, all say that in the middle of the next
decade they will get rid of diesel. Stories like this, do you think that
accelerates... See what I did there? Accelerate the demise of diesel? It
does. There are clean air plans in London as well. Public trust is
waning. Figures dipped slightly last year. There is better and cleaner
technology coming which could replace diesel to some degree over
the next few years. By getting this rolling before the Trump
Administration comes in, does it guarantee it will be seen through?
It won't come to a sudden halt. A couple of weeks later and it might
have died a death. There is a fair suggestion that could be the case,
by getting it through now the wheels are Roebling and Fiat Chrysler will
have to receive the software was cheating the admissions system --
the emissions system. For those of us with diesel cars, we are screwed,
right? Don't go buying diesel is the thing.
Samsung chief Jay Y Lee has been questioned for over 22
hours on suspicion of bribery in a corruption scandal involving
The South Korean special prosecutor's office is investigating
whether Samsung provided $25 million to a business and foundations
backed by Park's friend - in exchange for the national pension
fund's support for a 2015 merger of two Samsung companies.
It says it will decide "soon" whether to issue
Shares of Japanese airbag manufacturer Takata have risen
on reports it will settle a lawsuit with US regulators.
The firm is expected to pay up to $1 billion and plead
guilty to criminal wrongdoing over faulty airbags, which have been
linked to at least a dozen deaths and more than 100 injuries.
Most major carmakers have been affected by the fault,
with around 100 million Takata airbags recalled globally.
Takata shares rose more than 16% in early Tokyo trading.
Big news for India's aviation industry as domestic carrier
Spicejet has announced a deal with Boeing to buy
The order is the biggest in Spicejet's history,
and is estimated to be worth $20 billion.
The Indian airline company was struggling to make profits
less than two years ago, but has turned its business
around to compete with its closest rival, IndiGo.
205, is that a record number? A mere 20 billion!
Now to another big story this morning -
It's just been unveiled by Nintendo, and it's called the Switch.
It can work as a handheld gaming device - or plug into your TV and be
Nintendo hope they can cash in on the surge in mobile gaming -
remember the success of their own Pokemon Go -
and also take on the Microsoft XBox and Sony Playstation
It will go on sale on March 3rd at around $260 in Japan
And - hopefully - make everyone forget about the disastrous
Alex Wood is Editor of The Memo and joins us now.
What are they doing with this? I'm not a tech head, but it seems a bit
of a throwback. It's all about mobile gaming, that's the industry.
Exactly, we should have seen this about five years ago. For me it
comes down to the market for it. Looking at gaming as a whole. Mobile
gaming is huge, very much for the gaming is huge, very much for the
casual gamer. At the other extreme you have the PlayStation, the Xbox,
for the more hard-core gamers. Where does this fit? Let's be -- will it
be all things to all men and women? It's a jack of all trades device. My
bag is already full with a laptop, smartphone etc. It will not replace
Mike laptop, tablet or smartphone. So it's another thing I have to put
in my bag. $300 is a lot of money to spend on a new device that's wildly
outclassed by other competitors. Are they actually considering a mobile
phone is about alternative. They have shoved Mario over. When the
iPhone seven launched, there was huge excitement when Nintendo
realised smartphones had happened. They shot to the top of the charts.
Research was quite poor and people pointed out it had a lot of issues
but I think they are missing a trick. Sega is making huge amounts
of money on royalties from old games. People of my generation have
lots of affection and love for Mario and Zelda. When they did finally
bring Mario out they brought it very cautiously. They did it baby steps.
It's very defensive, the way Nintendo is operating. It's the old
market, we have the hardware. This machine doesn't even use disks, its
cartridges. On the other side, it has infrared motion sensors and you
can use hand play, to play paper, scissors, rock. It's got me excited!
It looks interesting, but if we rewind back to the original Wii,
which was a huge and unexpected success, it was a relatively cheap
machine. Families could get it for Christmas. But $300 is a difficult
sell. We appreciate you coming in and chatting.
To India now - and the country's most powerful
Natarajan Chandrasekaran has been named the new Chairman of the $100
It has assets all over the world including
Jaguar Land Rover in the UK - as well as Tata Steel.
He will have to work hard to repair damage to the group
after the acrimonious sacking of the previous boss Cyrus Mistry,
who alleged serious ethical and governance problems
at the company and is now being sued.
Tell us what's happened. This wasn't and unexpected move. When Mistry
stepped down there was always rumours about who would replace.
Tempo Mac only takes charge of Tata group group in March. --
Chandrasekaran and takes charge in March. He has big challenges. The
image of the group that has taken a beating, and the businesses, many of
which are in a lot of trouble. We appreciate you giving us the update.
Let's stay with the markets. Asian shares are on track for a
weekly games today. While the dollar is poised for a losing week.
Investors disappointed that Mr Trump failed
to elaborate on stimulus plans at a news conference two days ago.
Europe - pretty much the same disappointment.
Remember all of this after that global rally fuelled by hopes that
the president-elect would see a boost to the US economy,
but trading floors are turning more quiet with talk that the surge
But for now let's find out what should be making the biz
headlines over in the US today, here's Samira.
The week will end with a lot of earnings news from top US banks as
JP Morgan, Bank of America and Wells Fargo will all report. JP Morgan is
the biggest US bank by assets and investors there will be looking to
see if future profits will match expectations that have already
high. Bank of America is the second high. Bank of America is the second
largest US bank. Investors there will be looking to confirm their
assumption that rising interest rates will provide a long-awaited
boost in profits. They have driven up shares of the bank more than 30%
since the US presidential election. And finally, Wells Fargo, the
third-largest US bank. Investors will be paying close attention to
the progress the bank is making as it works to overcome the long
simmering sales problems that blew up in September. Hammering the stock
price and forcing the resignation of its chief Mac.
Joining us is James Quinn, group business editor
Why did we get the sudden dip down towards the end of the market? I
think a bit of fatigue, people are not as convinced... We are only on
the 13th of January! Look at where we have come from since the
referendum, up 14, 15% since that point already, it was the 11th
record day, 13 consecutive highs. This market is nothing to do with
underlying earnings, it is all to do with the pound?
The Footsie. The Footsie, the pound, it is to do with Trump, hopes and
dreams of infrastructure spending. There is a newspaper article
floating around today, is it an investor or big trade? Neal
Woodward, hello, Neill, he watches all the time! He said the rally in
the market is like the bubble, the tech bubble we saw in 99. The dotcom
bubble, nothing to do with momentum. He did not have a good year, his
market was up 3%, so maybe he was trying to deflect it a little bit
from his performance. What kind of stocks do you look at at the moment?
When everything is being moved by the big economic movements,
commodities and by the dollar and the pound, where do you look in
terms of your investment? Where we are looking for value. Which is?
Banks... They have had a terrible time! Certain banks will benefit
from Trump reining back. Franks. I think certain UK banks, Lloyd in
particular, is on a bit of a rise at the moment, certainly we saw below
6%, the UK Government will be out by June, there is potential there. Is
there a knock-on effect from the US banks if they get rid of this
regulation? A slight effect but most UK banks have pulled out, Barclays
is a shadow of what it was following the Lehman deal in 2008, I don't
think the UK banks will start expanding into US investment
banking. What about the retail sector here, it had a good
Christmas, surprisingly? That is right, everyone bar Next has had an
uptick in Christmas sales, M yesterday showing a return in
fashion. I think all those retailers, Tesco, Morrisons, all
warning about food inflation this year. Will that hit sales? I think
it will, the return of inflation, I think it will dampen sales by the
end of the year, all of the retailers are cautious. James Green,
always a pleasure, have a great weekend, we will see you very soon.
It's a week to go until Donald Trump's inauguration as President,
but are we any clearer about his economic policies?
You're with Business Live from BBC News.
Foreign visitors spent over ?725 million on British
high streets in December, as the weakened pound prompted
an influx of bargain-hunting 'Brexit tourists' to the UK over
That's according to data from Worldpay,
who say spending on foreign cards was up by 22% in December,
with high-end boutiques and department stores in London
He is not necessarily in our flashy newsroom today, are you? Know, just
a bunch of screens behind you. I am at the other end of the flashy
studio! I remember post Brexit when the
pound dipped, we were looking at a certain luxury items in London doing
well because foreigners were coming in and getting ten, 15% cheaper
items? It seems to be the same story now,
the British people going abroad things are more expensive now, I had
a shock last time I was in Paris, for example, but it means for people
coming the other way pound sterling has fallen quite dramatically
against the dollar and against a basket of other major currencies
which means Pretorius into the country it is great, they can go on
a shopping spree and it can cost up to 20% less than it did before. The
high street, which has suffered in other ways, we Brits are not
shopping on the high street as much as we used to, we are shopping
online instead, but tourists are making up some of the difference. As
you would expect, a lot of them are coming to London and shopping a new
Bond Street and other parts of the West End, and it does seem they are
going for the luxury shops, perky and shops, handbag shops, but it is
not just in London, they are also going to lobby is being shared and
the majority seem to be coming from Hong Kong and China.
There you go. The oh, go shopping! Have a great weekend. I can't afford
it! That is because we work for the BBC,
made! Tell us about shopping.
It is a yacht! If you want to buy this, it will cost about 9 million
euros. $9.3 million. That is cheaper than
the first sale price back in 2012. Let's get it!
Fiat Chrysler has been accused of not telling US authorities
about software that regulates emissions in thousands
The majority of those in the United States.
And now let's get the inside track on the world of business -
and its a week to go until Donald Trump becomes president.
On Wednesday this week he held his first formal news
Many commentators were concerned about the lack
Meanwhile there are still unanswered questions
about his business empire - Mr Trump plans to hand control
But the US Office of Government Ethics criticised the plan.
Let's get more with economics correspondent Andrew Walker.
He has been in vision the whole time, smile! Andrew Walker, our
economics correspondent, joins us. There is so much to talk about in
terms of Trump this week. That press conference, we were waiting with
bated breath! Those of us waiting for more meat on the bones in terms
of his economic policies left disappointed, didn't we?
Indeed, and in a way it is not that surprising, we knew he would talk
about is conflict-of-interest in choosing what he would do about his
own business interests, and then there was the salacious stuff, the
security related stuff that came in...
About Russia. What was that about again?!
I am joking! Unsubstantiated, I am not going into it!
Inevitably it overshadowed proceedings, but the markets would
have liked more detail about economic policy, and I think two
particular areas, the plans for a big boost in spending on
infrastructure, questions about to what extent that will be financed by
the government or to what extent the private sector will be involved,
those are very important questions for what you as government finances
will look like and what the infrastructure will look like, and
the other big question is the persistent issue about trading
policy, he has been talking a lot about the threat to American
businesses making stuff in Mexico, threatening them with border taxes
and I think the markets would have liked more hard information about
that because there is some real tension there especially with some
of the more established part of the Republican party in Congress, they
are pretty free and don't particularly like the way he is
moving. What is interesting about this is
maybe the markets will have to, all already beginning to learn to react
not to what he says but what he does, because up until now, since he
was elected, the markets have jumped this way and that depending on the
comments he comes out with. Maybe it needs to be, say what you like...
And not just what he says, but what he tweets at 4am!
What actually happens, what is done may not really be up to him, it will
be up to his people, his team. And at the moment he is not
president so they have nothing to get their teeth into in terms of
what he actually does. There are some things they are fairly sure he
will push ahead with, particularly on tax reform, cutting tax rates,
simplifying the system for personal income tax and corporate tax, and
the Republicans in Congress will be happy with that, and basically the
markets like it. Ford likes it, to take one example, they mentioned it
as one of the reasons why they are focusing not so much on Mexico
border production but actually much more on the United States.
Back into Detroit, I think. Can I do, not quite a handbrake turn but
there is a connection, the Turkish lira, it can be heavily impacted
with what goes on with the dollar? Indeed, the strengthening US dollar
that we have had have slowly started raising interest rates, it is
potentially an issue for many emerging markets. Most emerging
markets have been OK in the last year or more. Turkey has been
hitting new lows against the US dollar, partly to do with the
security situation which has driven tourists away, so the Turkish
balance of payments, trade deficit has been persistently large, but
there are worries about the government and its attempts at
leaning on the central bank, which many people think should be raising
interest rates with inflation at 8.5%, but it is under pressure not
to do that, so watch this space on the Turkish lira.
Have a great weekend, thank you as always.
We have run out of time, that is it from Business Live, thank you for
joining us, more business news throughout the day.
Hello, we have seen tricky weather conditions in the last 24 to 36