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