13/01/2017 BBC Business Live


Similar Content

Browse content similar to 13/01/2017. Check below for episodes and series from the same categories and more!



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


Download Subtitles