23/02/2017 BBC Business Live


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This is Business Live from BBC News, with Sally Bundock


Elon Musk's electric car and clean energy company says it's on track


to launch its first mass-market vehicle this year.


Live from London, that's our top story on Thursday


Tesla shares have been surging in recent months and more good news


was delivered overnight - but will Elon Musk deliver


on his promise of mass market car production by July?


Also in the programme: Nissan boss Carlos Ghosn announces


he's going to step aside as Chief Executive after 16


years at the helm - he remains its chairman -


we'll be live in Asia for the latest.


And a mixed performance for Europe's markets today.


It was the turn of Barclays to wow investors with its profits news


We'll continue our Disability Works series by meeting the woman whose


College of Fragrance is changing the lives of blind people in Mumbai.


The President of Iceland says pineapple on pizza should be banned!


Are you a lover or a hater of fruit as a topping?


I will begin by stating I am for pineapple on pizza. Give us your


views on this, it is a very hot debate. We will be asking all of our


guests, as well. We start with electric car maker


and clean energy company, Tesla. Its share price has been


soaring in recent months - and it was up again late


on Wednesday after it reported Tesla is still losing money -


but less than expected. More importantly though it has


reassured investors it's on track to expand beyond the niche luxury


car market and enter the big At $35,000, it's half the price


of existing Tesla models - In a letter to shareholders,


Tesla says it's on schedule Tesla has promised to be producing


a total of half a million cars In 2016, it delivered this


many of its existing two luxury models -


just over 76,000 - So it's still a small


scale operator. But judging by the share price -


investors have high hopes it could become the next Ford


or General Motors. Tesla shares have soared around 50%


since the beginning of December, giving it a stock market value


of this: $44 billion. To put that in context -


it's being valued almost as much as Ford - which has been around more


than a century and sold over With me is our technology


correspondent, Rory Cellan-Jones. Always good to see you. I don't know


where to start. At 1.I want to talk about the company's valuation


because it is right up there with Ford, at this model three is being


described as a make or break the Tesla, is that right? The whole


journey of the company is towards being more than a niche sports car


business. And this man is business. And this man is


extraordinary, Elon Musk is extraordinary. Everything hangs or


falls on him, and he has laid out this vision. They unveiled this


Model three car, this mass-market car, it is going to cost $35,000 and


they got a huge number of pre-orders, and everyone is waiting


to see whether they can deliver. There has been suddenly turns on the


trajectory of this company, he is like a man walking up a mountain on


a tightrope. Similar times he has nearly fallen off but kept on going.


But he has got the investors behind him. The share price up 50% since


December. But the investors must be looking at this company, going, this


is almost the same value as food, which is 100 years old and sold 6


million cars last year. It is crazy rule. It is being valued like


Amazon. That kind of business. Amazon, Facebook, a big growth


stock, his best years are certainly ahead of it, and they better be.


Because it is already being priced as if it is a huge volume car-maker,


which let's be clear, it isn't, it is a tiny niche maker. But another


little warning last night, Elon Musk said we are very close to the edge,


in terms of needing to raise more money, we may have to go back to


Wall Street to get some more money. They are investing huge amounts.


This factory, the giga factory, the biggest factory ever, one of the


biggest in the world, that is costing a huge amount to build.


There is political risk because nobody knows what the Trump's


administration attitude is towards clean energy. It has been


interesting to see the careful line Elon Musk has trodden with President


Trump. It is a fantastic story, because it is as I say a man walking


a tightrope. You have met Elon Musk, what does your gut feeling say about


this? They want to raise more money but they have got so much debt, they


are not making any money, they are very small and there was a risk you


just mentioned. You think he will deliver, or are we going to see


delays in July, the story of delay from Tesla? It is quite likely we


will see delays. He is the most amazing character, I met him at the


design centre. There was a car and a black sheep which we never got to


see, which was probably this Model three. And he spends this


extraordinary tale. He is an inspiration, talks about as becoming


a multi-planet species and living on Mars. There was a whole new services


to melt there. It is a question of whether you buy into that, and a


little to. Pineapple on pizza. An abomination. This is the man who


makes his own bread. I don't want pineapple in my bed. You should try


it. Bring on a next time, thanks, Rory. Let's move on.


Australia's top airline Qantas says profits fell 7.5 per cent


in the last six months of 2016, blaming tougher competition.


Qantas has turned itself around in recent years


through aggressive cost-cutting, but say it is facing increased


CEO Alan Joyce called market conditions "challenging".


Officials at the US Federal Reserve have said they may need to raise


interest rates "fairly soon" if the economy stays strong.


Minutes of their first meeting since Donald Trump took office


as president show they discussed the possibility of a rate


Most economists have been forecasting a rise in June.


Swiss engineering group, ABB, says it has discovered what it


calls a "sophisticated criminal scheme" in its South Korean


subsidiary, which may cost it $100 million.


ABB is accusing a senior employee in South Korea,


who it did not name, of colluding with others


The company's Chief Executive Ulrich Spiesshofer described the situation


as "shocking news" that could dent the reputation of


All prices rose overnight. This is basically, they have been up and


down, but in the general sense they have been on the rise. This time of


the back of as you can see that there, the US stockpiles shrinking,


basically, lower than what they originally thought they were. Oil at


$56.35 a barrel. Padelli who is not going to like that. Qantas, or any


of the airlines. It is challenging. Don't you love it when the CEO uses


that word? Tim McDonald is in Singapore,


where Carlos Ghosn is relinquishing his role as chief executive


of Nissan. And now he's going to be chairman,


doesn't mean it is hands after today, or how it work? He is not


released the thing back so far as the defining his role. It is true


even though longer be the CEO, but he was to be very busy, -- he will


still the Chief Executive. The reshuffle will allow him to


focus on the alliances between the three companies and making use of


the greater scale that the Mitsubishi purchase might bring to


the alliance. His old job will go to the roto Sarkar were, already the


company's co-Chief Executive and a 40 year veteran of Nissan, so likely


to be seen as a fairly safe pair of hands was the do you or do you not


like you're pineapple on pizza? You know, I kind of abstain from this


one. Pep you can't set of offence. Don't be a worse! I can vote however


I want! Butt we will be accused of bullying.


Let's have a look at the markets. In Asia, a fairly flat day, and a lot


of that is to do with the minutes from the last Federal reserve


meeting, the US central bank. They were released on Wednesday.


Everybody is trying to do just and read between the lines as to what


they will tell us about rates going up in the United States and it is


not that clear as ever. Markets are sort of treading water. That was the


story in Asia, that is the closure for the Dow Jones overnight. Let's


look at your right now, trading as we speak. London down a little bit,


Barclays shares among the big winners of the back of its was out.


Nasr was out at, we will talk you through Europe in a moment but first


the United States. Donald Trump is to meet with business leaders from


different industries this Thursday to discuss how to create more jobs.


Trump has cast himself as the anti-globalisation president,


criticising multinationals for moving jobs abroad. And vowing to


bring manufacturing positions back. This meeting has been described by


his press secretary at a listening session, where he will receive job


creation advice from captains of industry. It comes against a


backdrop of an improving US economy, one which many economists described


as close to full employment. Talking about jobs on the economic front,


initial weekly jobless claims will be released and the cinema chain


IMAX is scheduled to report its fourth-quarter results. Compared


with last year it may not be doing as well, because although cinema


attendance was boosted by the release in December or programme a


stable story, with fewest December saw the release of Star Wars: The


Force Awakens, which many of you may recall was a big box office


blockbuster. Joining us is Jane Sydenham,


Investment Director, Good morning, Jane. Have you been


away? Skiing. Lovely sunny skiing. We have to roll on. Interest rates,


we have this suggestion, this feeling that with all the economic


numbers, pretty good, the higher interest rates will come sooner. To


me like I interest rates? Savers do, investors don't so much, but what it


really means is we are getting back to a more normal, stronger economy,


that is what this is all about. Inflation picking up a bit,


employment is fairly full, markets are pretty good. We are in a


position, we can start to make money little bit more expensive by putting


rates up, and that shows that things are getting better after years and


years of rock bottom rates. Talking of that, the banks, the bad


headlines about banks has not been the case this week. HSBC did a bit


of a disappointment at the beginning of the week but Lord and Barclays


today... Generally much better, and certainly a bit of inflation and


rising interest rates are really good for banks, which is where you


have seen share prices start to recover. Barclays results were


actually better than expected. They have a bit more capital now, which


is better, they have benefited from currencies, the investment bank is


doing better. All of these things are relatively small improvements


but it is all a sign... Investors are climbing in today and yesterday


for roads. Yes, and after years and years of really poor performance of


the banks, we are just starting to see the early signs of improvement.


Jane, pineapple? Not for me, why not apples or blackberries? It is not


for me. Why not? You will come back and take us through the papers and


we will talk about it more then. We will explain why that story is in


the news, it is quite interesting actually.


Coming up: Changing lives and changing perceptions.


We'll meet the woman whose College of Fragrance in Mumbai is helping


blind people get into the art - and industry - of perfumery.


You're with Business Live from BBC News.


And now a look at some of the stories from around the UK.


Britain's Barclays Bank has reported sharply higher profits this morning.


Our business correspondent Theo Leggett has more.


Good to see you. We are going to ask you the question at the end of this


about pineapple, but Barclays, why are they doing better? There are


lots of reasons that Barclays has embarked over the last few years in


a major restructuring exercise. It has been selling non-core


businesses. It has been focusing on being a transatlantic business


focusing on the United States and the UK. That business at the moment


is doing rather well. Obviously, there are some outside factors which


have massaged the figures. Barclays is not having to set as much money


aside for past wrongdoing such as exchange rate manipulation and


Payment Protection Insurance. There is some money set aside for that but


not as much as the previous year. Not as much as 2015, so that has


helped boost the figures. Also the businesses themselves are doing


well. Particularly the investment banking business which has been


raking in the profits. Obviously, there are uncertainties out there.


What will happen if Britain has to leave the single market when it


leaves the European Union? My colleague Simon Jack has been


speaking to the chief executive about just that point. We are


looking at contingencies right now. We have a subsidiary bank in


Ireland. We have a very large operation in Germany. We are the


largest credit card company in Germany, for instance. So we are


looking at what our options are to operate across Europe if we lose the


single market, because of Brexit. But I don't think any of those plans


reflect a dramatic departure from London. We may add some people in


Dublin, we may add some people across Europe, but our core


operations Centre will continue to be London.


So obviously there are issues about what happens after Brexit, that he


is not panicking just yet. The bank is in a better shape to whether the


slings and arrows of outrageous fortune. It has good capital


buffers. Now, you were going to ask me about some pizza. Do you like


pineapple? Not on a pizza. I am a pepperoni man. I like spicy. We will


leave it right there! You're watching Business Live -


our top story - Tesla fever! Elon Musk's electric car and clean


energy company says it's on track to launch its first mass-market


vehicle this year. Shares have surged over


the past three months, They are up 50% since December.


Investors are loving this company. It is quite incredible.


Being blind can affect your life chances - even in the most


But in developing economies, where poverty is deep and endemic -


India has about five million people living with visual impairment - and,


for them, finding employment can be a real battle.


Today, in the latest in our Disability Works series,


we look at how one company is working to change that.


CPL Aromas is a global perfume company, and has set up a College


of Fragrance for the visually impaired in Mumbai, which teaches


basic skills and training needed to work in the fragrance industry.


Research by CPL showed that visually impaired people showed significantly


heightened levels of odour perception.


Angela Stavrevska, UK Creative Director


Angela, great to have you with us. I can see we are going to do a lot of


smelling! When I first read this, I thought, this has got to be a


no-brainer because you would think visually impaired people have a


stronger smell. Think all of their other senses tend to be heightened,


but when we have looked at the sense of smell, research is still not


complete but it looks as if it is the way people smell and analyse the


smells that they are smelling, as opposed to the physical aspect of


fragrance smelling. As an example, I work as a perfume, so my whole life


I am always smelling waters around me and almost navigating and


understanding where I am because of the smell, so whether I am in my


garden, or I am in Hong Kong and the smell of the streets and food. I


think visually impaired people have that heightened sense of using


fragrance almost as a navigation tool so that is why they are better


suited to working in the fragrance industry. How did CPL start this


place in mum by where they are training visually impaired people to


become perfumers? The CEO wanted to check that. We have an office in mum


by and again the managing director there also wanted to see if that was


true and see if we could help people. So about five years ago this


research was taking place which we funded and it was found to be, Yes,


it substantiated the theory. Is the training the same as somebody -- for


somebody like you? Dissimilar, it is smelling raw materials. It is


talking fragrance language because we have a specific language and it


is also memory, memorising smells. You have to have an interest and


passion for it in the first place. We were talking about our sense of


smell. Mine is pretty shocking, given that I have three little boys


and the dog and farm animals which is probably a good thing. But Aaron,


you have a better sense of smell. I have been a bit bunged up myself


lately but we can try it. This is a range of new materials we have


developed. It is quite a complex odour stop complex or bad? It is how


you would interpret that. I would say that is for a male. It is not a


female smell. Woody? Yes. From my point of view, the perfumer, it is


Woody, there are also smoky aspects, there is also citrus, grapefruit


fresh. A smoky, Woody Mann! It is looking at it in a slightly in-depth


way and people with visual impairment have that skill. Have you


got a pineapple pizza on?! Should other fragrance houses be


doing this with the visually impaired? We have set up the college


in mum -- Mumbai. There are eight graduates and we are also looking at


developing it in the UK with a charity in Northamptonshire called


Victor. We are looking at using some of the people there to work as


panellists for us. We do a lot of panel testing where people smell


fragrances and see if they'll work and it is using their abilities. It


is fascinating. We wish you the best of luck.


Thank you for the smell test. Do you like pineapple on your pizza?


Absolutely not. There are a lot of food snobs in today! Thank you,


Angela Stavrevska. You can find more on our special


coverage of this issue, and how businesses are dealing


with it, at bbc.com/disability. The Business Live page is where you


can stay ahead of all the breaking business news. We will keep you


up-to-date with insight and analysis with the BBC team of editors right


around the world. We want to hear from you as well. Get involved on


the BBC Business Live web page and we are on Twitter, and Facebook.


Business Live on TV and online, whenever you need to know. Jane is


back. We have been talking pizza all morning. Explain why this is in the


news? Understand Mr Johannesson, the Icelandic Prime Minister visited a


school and he was asked if he liked pineapple on his pizza and he said


he was fundamentally opposed to the idea. He said he would ban pineapple


on pizza in icelands, which is interesting. You have not said where


you are? I would eat pineapple on pizza. So you are not a food snob.


We have lots of tweets. They have been pouring in.


This person says I am pro-pineapple on pizza. It is the key to a lovely


Hawaiian pizza. It is a high wind pizza, isn't it?


Another person says I will stop eating pizzas if they ban pineapple


is as a topping. Jiri says my favourite is double pineapple pizza.


He says he is ashamed. Don't be ashamed! Another person says it is


absolutely unspeakable. So it is a hot debate. Jane, can we


talk about this story in the Irish Times. It says Brexit has delivered


a big mass of companies registering there. Think there is a fear that


what happens in Brexit and the regulatory environment, companies


are trying to hedge their bets. They want to set up an option in Ireland,


so they can adjust the way they operate, particularly companies from


Northern Ireland seem to be doing this. There is obviously in need,


they can move their staff relatively easily south of the border. And


cheaper corporate taxes? Indeed. Said hedging your bets.


Short and sweet with the papers I am afraid. Sally has taken up all the


time! I am not here to tomorrow so you can


enjoy it then. Bye-bye. Hello, we are quite likely to seize


and disruption from Storm Doris as it moves its way across the Atlantic


from the United Kingdom. You can see this hook of cloud is where we have


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