23/01/2017 BBC Business Live


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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


ahead with all the day's breaking business news.


We'll keep you up-to-date with all the latest details


with insight and analysis from the BBC's team of editors


around the world and we want to hear from you too.


Get involved on the BBC Business Live web page.


On Twitter we're at BBC business and you can find us on Facebook.


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




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