:00:00. > :00:00.This is Business Live from BBC News with Sally Bundock
:00:07. > :00:13.Samsung confirms the Note 7 smartphone disaster was caused
:00:14. > :00:18.The overheating devices have cost it more than $5 billion and huge
:00:19. > :00:41.Live from London, that's our top story on Monday the 23rd of January.
:00:42. > :00:44.The world's biggest smartphone maker also says its next big phone launch
:00:45. > :00:57.We'll ask how long the damage will last.
:00:58. > :01:01.Also in the programme: The boss of Taiwan's Foxconn -
:01:02. > :01:03.which is based in Taiwan - confirms he's considering
:01:04. > :01:05.a multibillion dollar factory investment in Donald Trump's
:01:06. > :01:21.And all of the key markets are down by nearly 1%. Why such a bad start
:01:22. > :01:22.to the trading week? We talk you through the winners and losers.
:01:23. > :01:24.And we'll be getting the inside track on baby food.
:01:25. > :01:27.It's a huge market worth $53 billion.
:01:28. > :01:32.And we're speaking to the mum who couldn't find
:01:33. > :01:35.what she wanted in the shops, so she started her own organic business.
:01:36. > :01:38.And we want to hear from you today - do you still trust Samsung?
:01:39. > :02:10.The start of a new business week. Do get in touch, whether it is about
:02:11. > :02:11.Samsung, baby food or any the other stories. Let's start in South Korea.
:02:12. > :02:13.Korean electronics giant Samsung has released the results
:02:14. > :02:15.of its investigation into its flagship Galaxy
:02:16. > :02:22.In October last year the phones were recalled because some had
:02:23. > :02:32.The pictures were all over social media.
:02:33. > :02:33.The company today confirmed problems with the design,
:02:34. > :02:36.saying the manufacturing of batteries was to blame -
:02:37. > :02:40.The Note 7 was supposed to rival Apple's iPhone 7, but instead,
:02:41. > :02:42.the device caused massive damage to the company's
:02:43. > :02:48.Last year, more than 100 of the phones spontaneously
:02:49. > :02:54.This forced Samsung to halt production and recall millions
:02:55. > :02:57.globally, months before the all important
:02:58. > :03:03.The debacle almost entirely wiped out the company's mobile business
:03:04. > :03:07.profit in the third quarter of last year - which is one
:03:08. > :03:15.And this dragged total profits at the company down by 30%,
:03:16. > :03:23.Samsung itself predicted another $3 billion could be wiped off
:03:24. > :03:30.The total cost of the recall has been estimated at around
:03:31. > :03:34.$5.3billion, but the damage to the company's brand
:03:35. > :03:45.Gareth Beavis, Mobile Editor of the website
:03:46. > :04:03.Gareth, I saw this confirmation this morning and said, really, you've got
:04:04. > :04:09.to be kidding us? Of course it was the battery. How important is this
:04:10. > :04:13.confirmation? Does it draw a line? We really drew a line when Samsung
:04:14. > :04:19.withdrew the phone and said, we can't buy it any more. To draw a
:04:20. > :04:27.line and say, we got that problem under control, we don't need to
:04:28. > :04:31.worry. The new phone is the S8. Apparently it is delayed a little
:04:32. > :04:37.bit. I think it was going to be feathery. I think it might be much
:04:38. > :04:42.now. Is this Samsung just taking its time to make sure they get this spot
:04:43. > :04:48.on? The chances of a phone having the production issues Samsung have
:04:49. > :04:56.had a pretty into Tessa Munt. Usually they happen in February. --
:04:57. > :05:08.into Tessa Munt. They could say, everything is fine.
:05:09. > :05:12.They are putting more health checks on top of it. Everybody is trying to
:05:13. > :05:16.assess how damaging this will be for some song. Will smartphone users be
:05:17. > :05:23.loyal? Wildie stick with this company despite the fact they had to
:05:24. > :05:29.send back the Note 7? People are still wary. It will always have a
:05:30. > :05:36.halo effect. People are still a little bit fickle. If the S8 is a
:05:37. > :05:41.success, it will soon forget. People don't want to miss out on having a
:05:42. > :05:45.good phone for a good price. Presumably Samsung will have to
:05:46. > :05:48.spend a lot of modern -- money on marketing? They have to convince us
:05:49. > :05:55.that things are OK again. Absolutely. They already spend money
:05:56. > :05:58.on marketing. You will see a subtle change in marketing. You will see
:05:59. > :06:02.things about safety around the help of the products. Make sure everybody
:06:03. > :06:07.understands this is a solid and stable product. Thank you for coming
:06:08. > :06:15.in. We have already got some tweets. We will do them later. It's a bit of
:06:16. > :06:19.a mixed bag. Stop giving me your scripts! The other stories making
:06:20. > :06:20.headlines around the world. Opec and other oil producing
:06:21. > :06:23.countries have agreed a way to monitor that all parties stick
:06:24. > :06:25.to the historic supply The countries have already cut oil
:06:26. > :06:29.supply by 1.5 million barrels a day. The deal came after two
:06:30. > :06:50.years of oversupply led Saudi Basic industries have agreed
:06:51. > :06:57.to die -- to buy Royal Dutch Shell's stake. The Middle East's biggest
:06:58. > :07:00.petrochemical bridges and shell are ending their partnership earlier
:07:01. > :07:10.than planned, it was supposed to be in 2020. In 2018, Shell ended plans
:07:11. > :07:13.to build a plant in Qatar. Last year they entered and natural gas
:07:14. > :07:15.adventure in Abu Dhabi. US President Donald Trump has
:07:16. > :07:17.said that he will soon begin renegotiating
:07:18. > :07:19.the North American Free Trade Agreement with his Canadian
:07:20. > :07:21.and Mexican counterparts. Meetings have been scheduled
:07:22. > :07:22.with Canadian Prime Minister Justin Trudeau
:07:23. > :07:25.and Mexican President Enrique The Nafta agreement came into effect
:07:26. > :07:28.between the three countries in 1994. Mr Trump has called it the worst
:07:29. > :07:48.trade deal the US has ever signed. I have to say, he is all over this
:07:49. > :07:50.next story. He is everywhere. He is the gift
:07:51. > :07:52.that keeps on giving. The Taiwan-based company that puts
:07:53. > :07:54.Apple's phones together - mainly in Chinese factories -
:07:55. > :07:57.suggested it will invest as much as $7 billion in new manufacturing
:07:58. > :08:07.plants in the United States. The comments from Foxconn's Chief
:08:08. > :08:15.Executive Terry Gou are likely to be welcome by new US president
:08:16. > :08:17.Donald Trump who has warned of tariffs to help encourage
:08:18. > :08:36.manufacturing jobs We both think this is an amazing
:08:37. > :08:42.story. A Taiwanese company actually going to go to the United States and
:08:43. > :08:48.build a plant. Good news for Trump. Aren't there are rumours that this
:08:49. > :08:52.is Apple who pay the money? I will get to do is paying in a second. If
:08:53. > :08:57.this plant does materialise for the US. It would be a major -ish --
:08:58. > :09:05.victory for Donald Trump, who has pledged to bring black -- back all
:09:06. > :09:15.of the jobs lost to Asia, back home. Fox con is the biggest electronics
:09:16. > :09:18.maker. This plant in the US will make display panels, which is
:09:19. > :09:27.critical to these smartphone and iPad devices. It's said this move
:09:28. > :09:34.could create between 30000 and 50,000 jobs in the United States.
:09:35. > :09:36.That is a very large number. Pennsylvania is the current
:09:37. > :09:43.frontrunner as a location of this new plant. But they are also in
:09:44. > :09:49.discussions with other states. As we have been reporting, Donald Trump
:09:50. > :09:54.has been agitating against China and fox con is one of China's biggest
:09:55. > :10:00.employers. This would be a major move, obviously. It is interesting,
:10:01. > :10:04.the comments about how many jobs could be created. The large -- the
:10:05. > :10:08.last time we saw footage of a factory in China there was hardly a
:10:09. > :10:15.person to be seen. It was machines, it was automation making the stuff.
:10:16. > :10:21.That's right. This plant they are considering, they built sitting
:10:22. > :10:25.conjunction with... Apple has not actually commented on the report. It
:10:26. > :10:31.does have a very big interest in them building a plant in America,
:10:32. > :10:35.because about half of fox con's revenue comes from Apple. As to who
:10:36. > :10:41.much -- who puts how much money in, we will have to wait and see. Fox
:10:42. > :10:51.con have said before they plan to replace most every human work a
:10:52. > :10:55.robot. We're still quite a long way away from having fully automated
:10:56. > :11:01.factories. I don't think it would be an immediate thing. Thank you. Lots
:11:02. > :11:06.of detail. Let's have a look at how markets fared generally today in
:11:07. > :11:11.Asia. The start of a new week. That is Friday's close for the US
:11:12. > :11:15.markets. Friday was about the inauguration of Donald Trump. That
:11:16. > :11:23.dominated completely. Today, quite a fall from the Nikkei index. The
:11:24. > :11:30.dollar is down against most major currencies. There is a real
:11:31. > :11:34.deflation now that he is in the job. Some deflation perhaps felt on
:11:35. > :11:43.markets. Let's look at Europe and how it is going today. Let's move
:11:44. > :11:48.onto the next screen. We can't. Just to say, when I looked at them
:11:49. > :11:55.early... We have got them behind me now. They are down by around about
:11:56. > :11:56.1%. Why are we seeing falls in Europe? Aaron has someone who can
:11:57. > :11:59.give us and insight. Joining us is Kathleen Brooks,
:12:00. > :12:16.research director for City Index. This is markets waning a little bit,
:12:17. > :12:23.kind of going... Give us some details. Walk the walk. From
:12:24. > :12:28.election day to Inauguration Day there has been a biggest -- the
:12:29. > :12:33.biggest rally in the US stock markets since any president. It is
:12:34. > :12:42.normal to have a ball back at this stage. The rally can't continue? It
:12:43. > :12:47.can't. Stock markets are at a record high in the US. They are looking
:12:48. > :12:53.very expensive. Can he continue the rally in the next four years? Not
:12:54. > :12:56.sure. Nor the markets are reacting how they are at the moment. He is
:12:57. > :13:00.talking lots but not about stuff that is going to boost the economy.
:13:01. > :13:05.It is about moving an embassy from Tel Aviv to Jerusalem, criticising
:13:06. > :13:12.the press etc. Interesting that we are getting this news about fox con.
:13:13. > :13:16.We are seeing American car-makers saying about production in the
:13:17. > :13:20.United States. I think that is going to be a real positive, if we see
:13:21. > :13:24.more production onshore rather than reversing the tide of the offshore
:13:25. > :13:27.production. I think we've also got to remember that Trump hasn't been
:13:28. > :13:34.universally good for stock markets. There are some con -- companies,
:13:35. > :13:38.Boeing, for example, one rogue tweet can knock billions off their share
:13:39. > :13:43.price. Markets liked what he was saying but now is the time frame to
:13:44. > :13:47.deliver the Russia -- the Russian executive orders we have seen at the
:13:48. > :13:52.weekend... If we don't see the rollback of financial regulation,
:13:53. > :13:56.that could be a problem. Swiftly switching, I want to talk about the
:13:57. > :14:05.worst performing currency and the world, the Turkish lira. They are
:14:06. > :14:09.expected to raise interest rates, which is interesting. They have had
:14:10. > :14:16.a lot of pressure from President erred again to cut interest rates to
:14:17. > :14:18.boost the economy. However, the currency, it has really taken a
:14:19. > :14:23.bashing in the last few months since the two last year. They need to hike
:14:24. > :14:29.interest rates to stem that that line. We will see whether or not an
:14:30. > :14:34.increase in the benchmark rate is expected. They will have to do more
:14:35. > :14:37.than that. Here is an economy that has been hammered. You talk about
:14:38. > :14:43.the coup, the terrorist bombs, dropping tourism... Absolutely. This
:14:44. > :14:45.is just boosting inflation, the fall in the year as well. Thank you for
:14:46. > :14:45.coming in. It's estimated to be
:14:46. > :14:50.worth over $50 billion. We get the inside track
:14:51. > :14:53.on the global baby food You're with Business
:14:54. > :15:03.Live from BBC News. The Prime Minister will today unveil
:15:04. > :15:08.the Government's vision of a more interventionist,
:15:09. > :15:13.industrial strategy for Britain. Theresa May will launch
:15:14. > :15:15.the plans at her first regional Cabinet meeting
:15:16. > :15:17.which is happening in Ben Thompson is at a fuel processing
:15:18. > :15:31.plant in Warrington to see what this So it depends on what she says
:15:32. > :15:37.business though, Ben, hoping it is all good stuff obviously? Yes, good
:15:38. > :15:40.morning to you both. Welcome to Warrington and it does depend who
:15:41. > :15:44.you speak to because we have been speaking to business all morning and
:15:45. > :15:51.some saying help for business very welcome, but others saying
:15:52. > :15:55.Government just leave it to us. We can cope without much intervention.
:15:56. > :16:01.We are at this oil processing plant. It comes in as this so-called base
:16:02. > :16:07.oil and this is how it ends up. This is the finished product. You will
:16:08. > :16:13.probably be used to stuff like this on the shelf. This place is
:16:14. > :16:17.interesting because it really tells a story about what we will hear from
:16:18. > :16:20.Theresa May later, because it is not just about investing in hard
:16:21. > :16:23.infrastructure, roads and railways and internet connections, but in
:16:24. > :16:31.research and development. If you take a look at this, this is a
:16:32. > :16:35.brand-new ?3 million head office, upstairs will be the offices, but
:16:36. > :16:38.downstairs is the big research and development labs where they will
:16:39. > :16:41.come up with new and more efficient ways of doing what they do here,
:16:42. > :16:45.that's what will be important. As you can see behind me, the truck
:16:46. > :16:48.there, that's also important because without spending on infrastructure
:16:49. > :16:52.and the roads and the railways well frankly those trucks won't be able
:16:53. > :16:57.to get around. So what we'll hear from Theresa May slaer this
:16:58. > :17:02.ten-point plan. It is a ten-point plan to get business working again
:17:03. > :17:06.and the Prime Minister says she wants all people wherever they live
:17:07. > :17:09.in the country, from all corners of the country to feel the benefits of
:17:10. > :17:13.economic growth. She will layout the plan later and it includes support
:17:14. > :17:16.for local business groups, support for research and development and
:17:17. > :17:20.training, but crucially, also for that so-called hard infrastructure,
:17:21. > :17:26.the roads and the railways and the internet connections. So we will
:17:27. > :17:29.hear from here. Her. There will be full coverage on BBC News. Thank you
:17:30. > :17:39.very much indeed, Ben Thompson up north for us today.
:17:40. > :17:43.He is at an oil and lubricant factory.
:17:44. > :17:50.The world's biggest smartphone maker Samsung confirm
:17:51. > :17:52.faulty batteries were to blame for the Note 7 burning
:17:53. > :18:01.The South Korean firm also says its next big smart phone
:18:02. > :18:27.A quick look at how markets are faring.
:18:28. > :18:31.Now, the global market for baby food has become big business in recent
:18:32. > :18:36.years and our next guest, Cat Gazzoli founded her company
:18:37. > :18:39.Piccolo two years ago hoping to get in on the action.
:18:40. > :18:42.Baby food accounted for over $53 billion around the world in 2015.
:18:43. > :18:44.Better income levels, rising awareness about the benefits
:18:45. > :18:46.of organic products, means the natural food segment
:18:47. > :18:56.is gaining popularity, growing at 12% a year.
:18:57. > :18:59.Start-up Piccolo launched in April last year, and has
:19:00. > :19:01.already seen its first year sales targets five-fold.
:19:02. > :19:04.The company focuses on food made from the so-called Mediterranean
:19:05. > :19:07.diet involving high consumption of olive oil, fruits and vegetables
:19:08. > :19:15.Cat Gazzoli, founder and CEO of Piccolo.
:19:16. > :19:23.Cat is with us. Great to have you with us Cat and you have some of the
:19:24. > :19:29.satchels here. Are you going to try them? Maybe. I challenge you to try
:19:30. > :19:35.the baby food. There is one I want to try, spaghetti or something. You
:19:36. > :19:39.went out to buy food and you go, "I don't like what's available." So you
:19:40. > :19:46.start your own company? Even before that because I was working with the
:19:47. > :19:50.NCT. That's? The national childbirth, the largest charity
:19:51. > :19:54.supporting parents in the UK in their first 1,000 days. All those
:19:55. > :20:01.years I was saying to British parents what they were missing in
:20:02. > :20:05.the market and lot of that involved 100% vegetable brands which Piccolo
:20:06. > :20:09.launched and moving up the category so they had the special blends.
:20:10. > :20:16.You're a mum, you thought there was plenty of this stuff? There is
:20:17. > :20:20.loads. You said you worked in this industry for many, many years,
:20:21. > :20:24.before you became a parent, you are Italian and you lived in the UK and
:20:25. > :20:28.the US, but what you're trying to bring through with this food that's
:20:29. > :20:33.different is the fact that there is more veg in it, it has got the
:20:34. > :20:37.Mediterranean touch? Proteins, really coming through, the
:20:38. > :20:41.Mediterranean approach to eating. As Aaron says, it is a really, really
:20:42. > :20:46.busy market. All my boys have grown-up. They are beyond this food,
:20:47. > :20:49.but I remember when they were small and I would go to the supermarket
:20:50. > :20:54.shelf, have you tried it... No. There is loads of different types of
:20:55. > :20:57.food and many told me they are organic and home-made and it is
:20:58. > :21:00.fresh produce and all perfect for your child and there is so much
:21:01. > :21:06.pressure on you to pick the right thing. What we were hearing from
:21:07. > :21:12.parents first of all to get more of interesting, innovative blends. One
:21:13. > :21:18.of our top sellers is mango kale in Asda and in Waitrose we are selling
:21:19. > :21:23.really well our vegetable blends. 100% leek, pea, courgette with a
:21:24. > :21:28.hint of olive oil so really pushing up the style and the flavour blends
:21:29. > :21:33.that are offered on shelf. You need money obviously for a start-up?
:21:34. > :21:38.That's true. Where did you go? Luckily just from my background
:21:39. > :21:42.working in food education I knew a lot of fantastic investors who
:21:43. > :21:45.believe in healthy food and lifestyle type of brands as well as
:21:46. > :21:52.we looked for a fantastic women angels and we have two female
:21:53. > :21:58.investors so those two women have brought so much to our business.
:21:59. > :22:04.OK. We're out of time. You say goodbye and I will have a little...
:22:05. > :22:09.He's trying it. That's good. You're going to have a baby now? I
:22:10. > :22:15.need more than this to have a baby, I'm sorry.
:22:16. > :22:23.Cat, thank you. Good luck with Piccolo.
:22:24. > :22:29.In a moment we will go through the business pages with Dominic.
:22:30. > :22:31.The Business Live page is where you can stay
:22:32. > :22:33.ahead with all the day's breaking business news.
:22:34. > :22:35.We'll keep you up-to-date with all the latest details
:22:36. > :22:38.with insight and analysis from the BBC's team of editors
:22:39. > :22:40.around the world and we want to hear from you too.
:22:41. > :22:42.Get involved on the BBC Business Live web page.
:22:43. > :22:46.On Twitter we're at BBC business and you can find us on Facebook.
:22:47. > :23:01.Business Live, on TV and online, whenever you need to know.
:23:02. > :23:09.You have been getting in touch about Samsung. We asked are you loyal to
:23:10. > :23:15.Samsung and will you stick with the company? Mark says, "It is OK to
:23:16. > :23:22.blame the battery, but they approved its release. How good is its testing
:23:23. > :23:28.and quality control." Another viewer says they are staying on board.
:23:29. > :23:31.Another viewer says twice burnt, no thanks.
:23:32. > :23:35.The BBC's Dominic O'Connell is with us.
:23:36. > :23:42.The Telegraph Theresa May is going to be the first world leader... To
:23:43. > :23:47.meet Donald Trump. She is pinning her hopes on getting an early trade
:23:48. > :23:51.deal. We can't do a trade deal yet. We can talk about it. Two years
:23:52. > :23:57.before we can do something. The Americans are good at extracting
:23:58. > :24:01.good deals if we are an eager buyer. You remember when we did the open
:24:02. > :24:05.skies deal, it was always on their terms. There was something mentioned
:24:06. > :24:11.about jobs. This deal, possible deal, could mean UK and the US
:24:12. > :24:16.people easily travelling back and forth and living? You maybe have an
:24:17. > :24:23.open border and that's a long way. Trump has talked about American jobs
:24:24. > :24:28.and buy American and not UK. I don't know if we will get the open border
:24:29. > :24:35.with the US. That would be quite something. Theresa May is flying to
:24:36. > :24:41.Washington on Friday. Let's talk about the super tower buildings. Two
:24:42. > :24:50.giant masts will be built near Dover. Why? Because it is all about
:24:51. > :24:54.high frequency trading. It takes six 1,000ths of a second for a microwave
:24:55. > :25:01.signal to travel from London to Frankfurt. That's too slow. This
:25:02. > :25:07.mast will shave two or three milliseconds off that. That's
:25:08. > :25:11.incredible. People have the image of the Stock Exchange of men in red
:25:12. > :25:17.braces. That's no longer what the markets are. 40% of the trading in
:25:18. > :25:21.the London Stock Exchange has less than other markets. It is high
:25:22. > :25:26.frequency trading. There is no human contact. We are building masts on
:25:27. > :25:30.the coast of England pre-Brexit and we are hoping this will keep people
:25:31. > :25:35.in London. The villagers are not happy, are they? It is up for a
:25:36. > :25:41.planning application and the villagers may turn it down. You were
:25:42. > :25:46.in Davos, did you meet him? I didn't meet the robot, no.
:25:47. > :25:51.I bet the robot was a cracker. Dominic, short and sweet, we've got
:25:52. > :25:56.to wrap it up, thank you, mate. Thank you for your company too. We
:25:57. > :26:10.will see you tomorrow. Hello there. It's a very quiet
:26:11. > :26:14.weather story across the country at the moment, but at this time of year
:26:15. > :26:16.that can have its own set of problems. Fog was an issue first
:26:17. > :26:18.thing