Browse content similar to 23/01/2017. Check below for episodes and series from the same categories and more!
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This is Business Live from BBC News with Sally Bundock | :00:00. | :00:00. | |
Samsung confirms the Note 7 smartphone disaster was caused | :00:07. | :00:13. | |
The overheating devices have cost it more than $5 billion and huge | :00:14. | :00:18. | |
Live from London, that's our top story on Monday the 23rd of January. | :00:19. | :00:41. | |
The world's biggest smartphone maker also says its next big phone launch | :00:42. | :00:44. | |
We'll ask how long the damage will last. | :00:45. | :00:57. | |
Also in the programme: The boss of Taiwan's Foxconn - | :00:58. | :01:01. | |
which is based in Taiwan - confirms he's considering | :01:02. | :01:03. | |
a multibillion dollar factory investment in Donald Trump's | :01:04. | :01:05. | |
And all of the key markets are down by nearly 1%. Why such a bad start | :01:06. | :01:21. | |
to the trading week? We talk you through the winners and losers. | :01:22. | :01:22. | |
And we'll be getting the inside track on baby food. | :01:23. | :01:24. | |
It's a huge market worth $53 billion. | :01:25. | :01:27. | |
And we're speaking to the mum who couldn't find | :01:28. | :01:32. | |
what she wanted in the shops, so she started her own organic business. | :01:33. | :01:35. | |
And we want to hear from you today - do you still trust Samsung? | :01:36. | :01:38. | |
The start of a new business week. Do get in touch, whether it is about | :01:39. | :02:10. | |
Samsung, baby food or any the other stories. Let's start in South Korea. | :02:11. | :02:11. | |
Korean electronics giant Samsung has released the results | :02:12. | :02:13. | |
of its investigation into its flagship Galaxy | :02:14. | :02:15. | |
In October last year the phones were recalled because some had | :02:16. | :02:22. | |
The pictures were all over social media. | :02:23. | :02:32. | |
The company today confirmed problems with the design, | :02:33. | :02:33. | |
saying the manufacturing of batteries was to blame - | :02:34. | :02:36. | |
The Note 7 was supposed to rival Apple's iPhone 7, but instead, | :02:37. | :02:40. | |
the device caused massive damage to the company's | :02:41. | :02:42. | |
Last year, more than 100 of the phones spontaneously | :02:43. | :02:48. | |
This forced Samsung to halt production and recall millions | :02:49. | :02:54. | |
globally, months before the all important | :02:55. | :02:57. | |
The debacle almost entirely wiped out the company's mobile business | :02:58. | :03:03. | |
profit in the third quarter of last year - which is one | :03:04. | :03:07. | |
And this dragged total profits at the company down by 30%, | :03:08. | :03:15. | |
Samsung itself predicted another $3 billion could be wiped off | :03:16. | :03:23. | |
The total cost of the recall has been estimated at around | :03:24. | :03:30. | |
$5.3billion, but the damage to the company's brand | :03:31. | :03:34. | |
Gareth Beavis, Mobile Editor of the website | :03:35. | :03:45. | |
Gareth, I saw this confirmation this morning and said, really, you've got | :03:46. | :04:03. | |
to be kidding us? Of course it was the battery. How important is this | :04:04. | :04:09. | |
confirmation? Does it draw a line? We really drew a line when Samsung | :04:10. | :04:13. | |
withdrew the phone and said, we can't buy it any more. To draw a | :04:14. | :04:19. | |
line and say, we got that problem under control, we don't need to | :04:20. | :04:27. | |
worry. The new phone is the S8. Apparently it is delayed a little | :04:28. | :04:31. | |
bit. I think it was going to be feathery. I think it might be much | :04:32. | :04:37. | |
now. Is this Samsung just taking its time to make sure they get this spot | :04:38. | :04:42. | |
on? The chances of a phone having the production issues Samsung have | :04:43. | :04:48. | |
had a pretty into Tessa Munt. Usually they happen in February. -- | :04:49. | :04:56. | |
into Tessa Munt. They could say, everything is fine. | :04:57. | :05:08. | |
They are putting more health checks on top of it. Everybody is trying to | :05:09. | :05:12. | |
assess how damaging this will be for some song. Will smartphone users be | :05:13. | :05:16. | |
loyal? Wildie stick with this company despite the fact they had to | :05:17. | :05:23. | |
send back the Note 7? People are still wary. It will always have a | :05:24. | :05:29. | |
halo effect. People are still a little bit fickle. If the S8 is a | :05:30. | :05:36. | |
success, it will soon forget. People don't want to miss out on having a | :05:37. | :05:41. | |
good phone for a good price. Presumably Samsung will have to | :05:42. | :05:45. | |
spend a lot of modern -- money on marketing? They have to convince us | :05:46. | :05:48. | |
that things are OK again. Absolutely. They already spend money | :05:49. | :05:55. | |
on marketing. You will see a subtle change in marketing. You will see | :05:56. | :05:58. | |
things about safety around the help of the products. Make sure everybody | :05:59. | :06:02. | |
understands this is a solid and stable product. Thank you for coming | :06:03. | :06:07. | |
in. We have already got some tweets. We will do them later. It's a bit of | :06:08. | :06:15. | |
a mixed bag. Stop giving me your scripts! The other stories making | :06:16. | :06:19. | |
headlines around the world. Opec and other oil producing | :06:20. | :06:20. | |
countries have agreed a way to monitor that all parties stick | :06:21. | :06:23. | |
to the historic supply The countries have already cut oil | :06:24. | :06:25. | |
supply by 1.5 million barrels a day. The deal came after two | :06:26. | :06:29. | |
years of oversupply led Saudi Basic industries have agreed | :06:30. | :06:50. | |
to die -- to buy Royal Dutch Shell's stake. The Middle East's biggest | :06:51. | :06:57. | |
petrochemical bridges and shell are ending their partnership earlier | :06:58. | :07:00. | |
than planned, it was supposed to be in 2020. In 2018, Shell ended plans | :07:01. | :07:10. | |
to build a plant in Qatar. Last year they entered and natural gas | :07:11. | :07:13. | |
adventure in Abu Dhabi. US President Donald Trump has | :07:14. | :07:15. | |
said that he will soon begin renegotiating | :07:16. | :07:17. | |
the North American Free Trade Agreement with his Canadian | :07:18. | :07:19. | |
and Mexican counterparts. Meetings have been scheduled | :07:20. | :07:21. | |
with Canadian Prime Minister Justin Trudeau | :07:22. | :07:22. | |
and Mexican President Enrique The Nafta agreement came into effect | :07:23. | :07:25. | |
between the three countries in 1994. Mr Trump has called it the worst | :07:26. | :07:28. | |
trade deal the US has ever signed. I have to say, he is all over this | :07:29. | :07:48. | |
next story. He is everywhere. He is the gift | :07:49. | :07:50. | |
that keeps on giving. The Taiwan-based company that puts | :07:51. | :07:52. | |
Apple's phones together - mainly in Chinese factories - | :07:53. | :07:54. | |
suggested it will invest as much as $7 billion in new manufacturing | :07:55. | :07:57. | |
plants in the United States. The comments from Foxconn's Chief | :07:58. | :08:07. | |
Executive Terry Gou are likely to be welcome by new US president | :08:08. | :08:15. | |
Donald Trump who has warned of tariffs to help encourage | :08:16. | :08:17. | |
manufacturing jobs We both think this is an amazing | :08:18. | :08:36. | |
story. A Taiwanese company actually going to go to the United States and | :08:37. | :08:42. | |
build a plant. Good news for Trump. Aren't there are rumours that this | :08:43. | :08:48. | |
is Apple who pay the money? I will get to do is paying in a second. If | :08:49. | :08:52. | |
this plant does materialise for the US. It would be a major -ish -- | :08:53. | :08:57. | |
victory for Donald Trump, who has pledged to bring black -- back all | :08:58. | :09:05. | |
of the jobs lost to Asia, back home. Fox con is the biggest electronics | :09:06. | :09:15. | |
maker. This plant in the US will make display panels, which is | :09:16. | :09:18. | |
critical to these smartphone and iPad devices. It's said this move | :09:19. | :09:27. | |
could create between 30000 and 50,000 jobs in the United States. | :09:28. | :09:34. | |
That is a very large number. Pennsylvania is the current | :09:35. | :09:36. | |
frontrunner as a location of this new plant. But they are also in | :09:37. | :09:43. | |
discussions with other states. As we have been reporting, Donald Trump | :09:44. | :09:49. | |
has been agitating against China and fox con is one of China's biggest | :09:50. | :09:54. | |
employers. This would be a major move, obviously. It is interesting, | :09:55. | :10:00. | |
the comments about how many jobs could be created. The large -- the | :10:01. | :10:04. | |
last time we saw footage of a factory in China there was hardly a | :10:05. | :10:08. | |
person to be seen. It was machines, it was automation making the stuff. | :10:09. | :10:15. | |
That's right. This plant they are considering, they built sitting | :10:16. | :10:21. | |
conjunction with... Apple has not actually commented on the report. It | :10:22. | :10:25. | |
does have a very big interest in them building a plant in America, | :10:26. | :10:31. | |
because about half of fox con's revenue comes from Apple. As to who | :10:32. | :10:35. | |
much -- who puts how much money in, we will have to wait and see. Fox | :10:36. | :10:41. | |
con have said before they plan to replace most every human work a | :10:42. | :10:51. | |
robot. We're still quite a long way away from having fully automated | :10:52. | :10:55. | |
factories. I don't think it would be an immediate thing. Thank you. Lots | :10:56. | :11:01. | |
of detail. Let's have a look at how markets fared generally today in | :11:02. | :11:06. | |
Asia. The start of a new week. That is Friday's close for the US | :11:07. | :11:11. | |
markets. Friday was about the inauguration of Donald Trump. That | :11:12. | :11:15. | |
dominated completely. Today, quite a fall from the Nikkei index. The | :11:16. | :11:23. | |
dollar is down against most major currencies. There is a real | :11:24. | :11:30. | |
deflation now that he is in the job. Some deflation perhaps felt on | :11:31. | :11:34. | |
markets. Let's look at Europe and how it is going today. Let's move | :11:35. | :11:43. | |
onto the next screen. We can't. Just to say, when I looked at them | :11:44. | :11:48. | |
early... We have got them behind me now. They are down by around about | :11:49. | :11:55. | |
1%. Why are we seeing falls in Europe? Aaron has someone who can | :11:56. | :11:56. | |
give us and insight. Joining us is Kathleen Brooks, | :11:57. | :11:59. | |
research director for City Index. This is markets waning a little bit, | :12:00. | :12:16. | |
kind of going... Give us some details. Walk the walk. From | :12:17. | :12:23. | |
election day to Inauguration Day there has been a biggest -- the | :12:24. | :12:28. | |
biggest rally in the US stock markets since any president. It is | :12:29. | :12:33. | |
normal to have a ball back at this stage. The rally can't continue? It | :12:34. | :12:42. | |
can't. Stock markets are at a record high in the US. They are looking | :12:43. | :12:47. | |
very expensive. Can he continue the rally in the next four years? Not | :12:48. | :12:53. | |
sure. Nor the markets are reacting how they are at the moment. He is | :12:54. | :12:56. | |
talking lots but not about stuff that is going to boost the economy. | :12:57. | :13:00. | |
It is about moving an embassy from Tel Aviv to Jerusalem, criticising | :13:01. | :13:05. | |
the press etc. Interesting that we are getting this news about fox con. | :13:06. | :13:12. | |
We are seeing American car-makers saying about production in the | :13:13. | :13:16. | |
United States. I think that is going to be a real positive, if we see | :13:17. | :13:20. | |
more production onshore rather than reversing the tide of the offshore | :13:21. | :13:24. | |
production. I think we've also got to remember that Trump hasn't been | :13:25. | :13:27. | |
universally good for stock markets. There are some con -- companies, | :13:28. | :13:34. | |
Boeing, for example, one rogue tweet can knock billions off their share | :13:35. | :13:38. | |
price. Markets liked what he was saying but now is the time frame to | :13:39. | :13:43. | |
deliver the Russia -- the Russian executive orders we have seen at the | :13:44. | :13:47. | |
weekend... If we don't see the rollback of financial regulation, | :13:48. | :13:52. | |
that could be a problem. Swiftly switching, I want to talk about the | :13:53. | :13:56. | |
worst performing currency and the world, the Turkish lira. They are | :13:57. | :14:05. | |
expected to raise interest rates, which is interesting. They have had | :14:06. | :14:09. | |
a lot of pressure from President erred again to cut interest rates to | :14:10. | :14:16. | |
boost the economy. However, the currency, it has really taken a | :14:17. | :14:18. | |
bashing in the last few months since the two last year. They need to hike | :14:19. | :14:23. | |
interest rates to stem that that line. We will see whether or not an | :14:24. | :14:29. | |
increase in the benchmark rate is expected. They will have to do more | :14:30. | :14:34. | |
than that. Here is an economy that has been hammered. You talk about | :14:35. | :14:37. | |
the coup, the terrorist bombs, dropping tourism... Absolutely. This | :14:38. | :14:43. | |
is just boosting inflation, the fall in the year as well. Thank you for | :14:44. | :14:45. | |
coming in. It's estimated to be | :14:46. | :14:45. | |
worth over $50 billion. We get the inside track | :14:46. | :14:50. | |
on the global baby food You're with Business | :14:51. | :14:53. | |
Live from BBC News. The Prime Minister will today unveil | :14:54. | :15:03. | |
the Government's vision of a more interventionist, | :15:04. | :15:08. | |
industrial strategy for Britain. Theresa May will launch | :15:09. | :15:13. | |
the plans at her first regional Cabinet meeting | :15:14. | :15:15. | |
which is happening in Ben Thompson is at a fuel processing | :15:16. | :15:17. | |
plant in Warrington to see what this So it depends on what she says | :15:18. | :15:31. | |
business though, Ben, hoping it is all good stuff obviously? Yes, good | :15:32. | :15:37. | |
morning to you both. Welcome to Warrington and it does depend who | :15:38. | :15:40. | |
you speak to because we have been speaking to business all morning and | :15:41. | :15:44. | |
some saying help for business very welcome, but others saying | :15:45. | :15:51. | |
Government just leave it to us. We can cope without much intervention. | :15:52. | :15:55. | |
We are at this oil processing plant. It comes in as this so-called base | :15:56. | :16:01. | |
oil and this is how it ends up. This is the finished product. You will | :16:02. | :16:07. | |
probably be used to stuff like this on the shelf. This place is | :16:08. | :16:13. | |
interesting because it really tells a story about what we will hear from | :16:14. | :16:17. | |
Theresa May later, because it is not just about investing in hard | :16:18. | :16:20. | |
infrastructure, roads and railways and internet connections, but in | :16:21. | :16:23. | |
research and development. If you take a look at this, this is a | :16:24. | :16:31. | |
brand-new ?3 million head office, upstairs will be the offices, but | :16:32. | :16:35. | |
downstairs is the big research and development labs where they will | :16:36. | :16:38. | |
come up with new and more efficient ways of doing what they do here, | :16:39. | :16:41. | |
that's what will be important. As you can see behind me, the truck | :16:42. | :16:45. | |
there, that's also important because without spending on infrastructure | :16:46. | :16:48. | |
and the roads and the railways well frankly those trucks won't be able | :16:49. | :16:52. | |
to get around. So what we'll hear from Theresa May slaer this | :16:53. | :16:57. | |
ten-point plan. It is a ten-point plan to get business working again | :16:58. | :17:02. | |
and the Prime Minister says she wants all people wherever they live | :17:03. | :17:06. | |
in the country, from all corners of the country to feel the benefits of | :17:07. | :17:09. | |
economic growth. She will layout the plan later and it includes support | :17:10. | :17:13. | |
for local business groups, support for research and development and | :17:14. | :17:16. | |
training, but crucially, also for that so-called hard infrastructure, | :17:17. | :17:20. | |
the roads and the railways and the internet connections. So we will | :17:21. | :17:26. | |
hear from here. Her. There will be full coverage on BBC News. Thank you | :17:27. | :17:29. | |
very much indeed, Ben Thompson up north for us today. | :17:30. | :17:39. | |
He is at an oil and lubricant factory. | :17:40. | :17:43. | |
The world's biggest smartphone maker Samsung confirm | :17:44. | :17:50. | |
faulty batteries were to blame for the Note 7 burning | :17:51. | :17:52. | |
The South Korean firm also says its next big smart phone | :17:53. | :18:01. | |
A quick look at how markets are faring. | :18:02. | :18:27. | |
Now, the global market for baby food has become big business in recent | :18:28. | :18:31. | |
years and our next guest, Cat Gazzoli founded her company | :18:32. | :18:36. | |
Piccolo two years ago hoping to get in on the action. | :18:37. | :18:39. | |
Baby food accounted for over $53 billion around the world in 2015. | :18:40. | :18:42. | |
Better income levels, rising awareness about the benefits | :18:43. | :18:44. | |
of organic products, means the natural food segment | :18:45. | :18:46. | |
is gaining popularity, growing at 12% a year. | :18:47. | :18:56. | |
Start-up Piccolo launched in April last year, and has | :18:57. | :18:59. | |
already seen its first year sales targets five-fold. | :19:00. | :19:01. | |
The company focuses on food made from the so-called Mediterranean | :19:02. | :19:04. | |
diet involving high consumption of olive oil, fruits and vegetables | :19:05. | :19:07. | |
Cat Gazzoli, founder and CEO of Piccolo. | :19:08. | :19:15. | |
Cat is with us. Great to have you with us Cat and you have some of the | :19:16. | :19:23. | |
satchels here. Are you going to try them? Maybe. I challenge you to try | :19:24. | :19:29. | |
the baby food. There is one I want to try, spaghetti or something. You | :19:30. | :19:35. | |
went out to buy food and you go, "I don't like what's available." So you | :19:36. | :19:39. | |
start your own company? Even before that because I was working with the | :19:40. | :19:46. | |
NCT. That's? The national childbirth, the largest charity | :19:47. | :19:50. | |
supporting parents in the UK in their first 1,000 days. All those | :19:51. | :19:54. | |
years I was saying to British parents what they were missing in | :19:55. | :20:01. | |
the market and lot of that involved 100% vegetable brands which Piccolo | :20:02. | :20:05. | |
launched and moving up the category so they had the special blends. | :20:06. | :20:09. | |
You're a mum, you thought there was plenty of this stuff? There is | :20:10. | :20:16. | |
loads. You said you worked in this industry for many, many years, | :20:17. | :20:20. | |
before you became a parent, you are Italian and you lived in the UK and | :20:21. | :20:24. | |
the US, but what you're trying to bring through with this food that's | :20:25. | :20:28. | |
different is the fact that there is more veg in it, it has got the | :20:29. | :20:33. | |
Mediterranean touch? Proteins, really coming through, the | :20:34. | :20:37. | |
Mediterranean approach to eating. As Aaron says, it is a really, really | :20:38. | :20:41. | |
busy market. All my boys have grown-up. They are beyond this food, | :20:42. | :20:46. | |
but I remember when they were small and I would go to the supermarket | :20:47. | :20:49. | |
shelf, have you tried it... No. There is loads of different types of | :20:50. | :20:54. | |
food and many told me they are organic and home-made and it is | :20:55. | :20:57. | |
fresh produce and all perfect for your child and there is so much | :20:58. | :21:00. | |
pressure on you to pick the right thing. What we were hearing from | :21:01. | :21:06. | |
parents first of all to get more of interesting, innovative blends. One | :21:07. | :21:12. | |
of our top sellers is mango kale in Asda and in Waitrose we are selling | :21:13. | :21:18. | |
really well our vegetable blends. 100% leek, pea, courgette with a | :21:19. | :21:23. | |
hint of olive oil so really pushing up the style and the flavour blends | :21:24. | :21:28. | |
that are offered on shelf. You need money obviously for a start-up? | :21:29. | :21:33. | |
That's true. Where did you go? Luckily just from my background | :21:34. | :21:38. | |
working in food education I knew a lot of fantastic investors who | :21:39. | :21:42. | |
believe in healthy food and lifestyle type of brands as well as | :21:43. | :21:45. | |
we looked for a fantastic women angels and we have two female | :21:46. | :21:52. | |
investors so those two women have brought so much to our business. | :21:53. | :21:58. | |
OK. We're out of time. You say goodbye and I will have a little... | :21:59. | :22:04. | |
He's trying it. That's good. You're going to have a baby now? I | :22:05. | :22:09. | |
need more than this to have a baby, I'm sorry. | :22:10. | :22:15. | |
Cat, thank you. Good luck with Piccolo. | :22:16. | :22:23. | |
In a moment we will go through the business pages with Dominic. | :22:24. | :22:29. | |
The Business Live page is where you can stay | :22:30. | :22:31. | |
ahead with all the day's breaking business news. | :22:32. | :22:33. | |
We'll keep you up-to-date with all the latest details | :22:34. | :22:35. | |
with insight and analysis from the BBC's team of editors | :22:36. | :22:38. | |
around the world and we want to hear from you too. | :22:39. | :22:40. | |
Get involved on the BBC Business Live web page. | :22:41. | :22:42. | |
On Twitter we're at BBC business and you can find us on Facebook. | :22:43. | :22:46. | |
Business Live, on TV and online, whenever you need to know. | :22:47. | :23:01. | |
You have been getting in touch about Samsung. We asked are you loyal to | :23:02. | :23:09. | |
Samsung and will you stick with the company? Mark says, "It is OK to | :23:10. | :23:15. | |
blame the battery, but they approved its release. How good is its testing | :23:16. | :23:22. | |
and quality control." Another viewer says they are staying on board. | :23:23. | :23:28. | |
Another viewer says twice burnt, no thanks. | :23:29. | :23:31. | |
The BBC's Dominic O'Connell is with us. | :23:32. | :23:35. | |
The Telegraph Theresa May is going to be the first world leader... To | :23:36. | :23:42. | |
meet Donald Trump. She is pinning her hopes on getting an early trade | :23:43. | :23:47. | |
deal. We can't do a trade deal yet. We can talk about it. Two years | :23:48. | :23:51. | |
before we can do something. The Americans are good at extracting | :23:52. | :23:57. | |
good deals if we are an eager buyer. You remember when we did the open | :23:58. | :24:01. | |
skies deal, it was always on their terms. There was something mentioned | :24:02. | :24:05. | |
about jobs. This deal, possible deal, could mean UK and the US | :24:06. | :24:11. | |
people easily travelling back and forth and living? You maybe have an | :24:12. | :24:16. | |
open border and that's a long way. Trump has talked about American jobs | :24:17. | :24:23. | |
and buy American and not UK. I don't know if we will get the open border | :24:24. | :24:28. | |
with the US. That would be quite something. Theresa May is flying to | :24:29. | :24:35. | |
Washington on Friday. Let's talk about the super tower buildings. Two | :24:36. | :24:41. | |
giant masts will be built near Dover. Why? Because it is all about | :24:42. | :24:50. | |
high frequency trading. It takes six 1,000ths of a second for a microwave | :24:51. | :24:54. | |
signal to travel from London to Frankfurt. That's too slow. This | :24:55. | :25:01. | |
mast will shave two or three milliseconds off that. That's | :25:02. | :25:07. | |
incredible. People have the image of the Stock Exchange of men in red | :25:08. | :25:11. | |
braces. That's no longer what the markets are. 40% of the trading in | :25:12. | :25:17. | |
the London Stock Exchange has less than other markets. It is high | :25:18. | :25:21. | |
frequency trading. There is no human contact. We are building masts on | :25:22. | :25:26. | |
the coast of England pre-Brexit and we are hoping this will keep people | :25:27. | :25:30. | |
in London. The villagers are not happy, are they? It is up for a | :25:31. | :25:35. | |
planning application and the villagers may turn it down. You were | :25:36. | :25:41. | |
in Davos, did you meet him? I didn't meet the robot, no. | :25:42. | :25:46. | |
I bet the robot was a cracker. Dominic, short and sweet, we've got | :25:47. | :25:51. | |
to wrap it up, thank you, mate. Thank you for your company too. We | :25:52. | :25:56. | |
will see you tomorrow. Hello there. It's a very quiet | :25:57. | :26:10. | |
weather story across the country at the moment, but at this time of year | :26:11. | :26:14. | |
that can have its own set of problems. Fog was an issue first | :26:15. | :26:16. | |
thing | :26:17. | :26:18. |