:00:12. > :00:22.Raking in the billions. Here's the question, can the likes of Google
:00:23. > :00:46.and Amazon keep on growing. Google finds it way with mobile ads
:00:47. > :00:53.and Amazon delivers its majestic numbers but are these billion-dollar
:00:54. > :00:58.companies to big? South Korean shares sink as President Trump says
:00:59. > :01:03.he will renegotiate the trade deal with career. The markets are holding
:01:04. > :01:05.steady, watching and waiting for key economic figures and GDP due from
:01:06. > :01:07.the UK, France and the states. And would you trust
:01:08. > :01:10.an app to be your doctor? We'll be getting the inside track
:01:11. > :01:13.on all the big technology stories of the week with our very
:01:14. > :01:15.own Rory Cellan-Jones who will also steer us
:01:16. > :01:24.through the world of flying cars. Ebook sales in the UK have
:01:25. > :01:29.fallen 17% as readers bring back the book -
:01:30. > :01:31.do you tap or turn? We start in Silicon Valley
:01:32. > :01:52.where three of the biggest names in technology have been
:01:53. > :01:54.reporting their numbers We are talking about the Tech Titans
:01:55. > :01:58.- Google, Amazon and Microsoft. And it seems they are just
:01:59. > :02:02.getting bigger and bigger. The numbers are jaw
:02:03. > :02:06.dropping, take a look. But it's still managing
:02:07. > :02:14.to grow very fast. Google's parent company Alphabet saw
:02:15. > :02:17.revenues jump by almost Remember this is just
:02:18. > :02:24.3mths worth of sales. It's one of the world's
:02:25. > :02:34.biggest retailers - it dominates online shopping -
:02:35. > :02:37.and still saw sales grow over 22% to almost $36 billion
:02:38. > :02:41.for the three months to March. Three quarters of a billion
:02:42. > :02:46.of that was profit. Amazon has been growing sales
:02:47. > :02:50.in double-digits for 20 years! Microsoft too is
:02:51. > :02:56.raking in huge sales. Many people wrote it off as a victim
:02:57. > :03:00.of the decline in PC's and the rise But it's become a leader
:03:01. > :03:05.in cloud computing. It made revenues of over $23
:03:06. > :03:07.billion, although they were only up 6% and that was less
:03:08. > :03:14.than Wall Street was expecting. Cyrus Mewawalla is Managing Director
:03:15. > :03:29.of the global technology research Always good to see you, thanks for
:03:30. > :03:32.coming in. You know that question, let's use Google and Amazon as an
:03:33. > :03:39.example, are they to big, too dominant? They have produced a very
:03:40. > :03:43.big good product and not a lot of competitors out there, it's not
:03:44. > :03:48.their fault, is it? Absolutely. There is article in the Financial
:03:49. > :03:52.Times about anti-trust concerns as well. Microsoft already have that,
:03:53. > :04:01.they had to take away Microsoft from" Windows. Amazon has two
:04:02. > :04:05.businesses. The real issue is government tax regulation needs to
:04:06. > :04:08.be performed because high street retailers pay too much tax and
:04:09. > :04:14.Amazon, which sells digital goods can avoid tax. On the cloud business
:04:15. > :04:18.of Amazon, there's no issue because Amazon invented the cloud. It was an
:04:19. > :04:25.internal product. Sorry to interrupt, Amazon makes most of its
:04:26. > :04:28.money... From the cloud. We talk about Microsoft and Rachel explained
:04:29. > :04:33.that we used to think Microsoft has gone now because nobody is buying
:04:34. > :04:38.PCs but it got into the cloud, why are they making so much money from
:04:39. > :04:42.cloud and why is cloud important? Why is cloud imported? Everything we
:04:43. > :04:46.do is software, that is leading the world and software is moving from
:04:47. > :04:49.the desktop to the cloud. Not only your desktop but the BBC's
:04:50. > :04:55.computers, they used to be in-house, now they are moving to the cloud.
:04:56. > :04:59.Every company is doing the same thing, why? It's better for users
:05:00. > :05:03.because it's cheaper, it is better for app developers, because it is
:05:04. > :05:07.easier to roll out apps. Once you have a cyber security patch, put it
:05:08. > :05:10.on the cloud and it is immediately rolled out of the world, you don't
:05:11. > :05:18.have to download and install. That is why cloud is happening, cost
:05:19. > :05:22.savings. But why is it important? If you look at Amazon, it is the
:05:23. > :05:27.leading cloud infrastructure, Microsoft is number two, Google is
:05:28. > :05:30.number three and IBM is four. The cloud has three levels,
:05:31. > :05:34.infrastructure as a service, which are the servers in data centres,
:05:35. > :05:38.platform as a service, which are things like an operating system or
:05:39. > :05:41.Mac sales force and software as a service. Things like office 365,
:05:42. > :05:46.Microsoft Word and someone. Infrastructure as a service is the
:05:47. > :05:52.most important bit of the cloud. That is like the operating system
:05:53. > :05:57.for the next internet TV, the debt of things, artificial intelligence.
:05:58. > :06:01.They all sit on cloud infrastructure and Amazon has a 40% market share --
:06:02. > :06:05.intelligence. It is quite notable intelligence. It is quite notable
:06:06. > :06:09.that where Amazon made revenues of ?36 billion, only three quarters of
:06:10. > :06:11.a billion was profit, where is the rest of the money going? If you look
:06:12. > :06:16.at the top five tech chance, then at the top five tech chance, then
:06:17. > :06:20.margins, operating margins are about 30% but Amazon's is about 3% at
:06:21. > :06:25.operating level. That is because Amazon has a completely different
:06:26. > :06:32.philosophy. It invests in a 10-year cycle. Most listed companies invest
:06:33. > :06:34.on a three-year quarterly cycle. In a nutshell. Have a great weekend, we
:06:35. > :06:37.always appreciate your time. Let's take a look at some
:06:38. > :06:39.of the other stories Barclays Bank says it
:06:40. > :06:45.doubled it's pre-tax profit in the first three months of this
:06:46. > :06:50.year as it put some big costs It's also coming towards the end
:06:51. > :06:54.a of major restructure which means it faces a big one off charge
:06:55. > :06:56.on it's African business which it intends to sell
:06:57. > :06:59.in the next two to three years. Chief Executive Jes staley
:07:00. > :07:01.says he's optimistic Staying with UK banks,
:07:02. > :07:04.the troubled Royal Bank of Scotland made a profit of $334 million
:07:05. > :07:08.in the first three months of 2017. It's the first quarterly profit
:07:09. > :07:10.the bank has made since 2015. RBS is majority-owned by the UK
:07:11. > :07:13.government after being bailed out It is really the UK taxpayer who
:07:14. > :07:26.owns them. It said its cost-cutting plan
:07:27. > :07:28.was ahead of schedule, and that it had already made more
:07:29. > :07:31.than a third of the $968m worth of savings it's
:07:32. > :07:37.targeting for this year. Starbucks shares were down some 5%
:07:38. > :07:40.in late trading after the US based coffee chain cut its full year
:07:41. > :07:42.profit target after it's sales It's a tough start in the job
:07:43. > :07:49.for Kevin Johnson, who succeeded The company has pledged
:07:50. > :07:52.to return to the rapid growth it once enjoyed -
:07:53. > :07:55.but has been struggling The Kentucky doctor dragged off
:07:56. > :08:02.a United Airlines flight from Chicago earlier this month has
:08:03. > :08:04.received a financial Lawyers for Dr David Dao, 69,
:08:05. > :08:12.say a condition of the payout is that the "amount remain
:08:13. > :08:18.confidential". Dr Dao was violently removed
:08:19. > :08:20.by airline law enforcement officers after refusing to give up his seat
:08:21. > :08:36.to United staff. I want to know... If United is
:08:37. > :08:41.watching, we really want to know! Everybody around the world is dying
:08:42. > :08:46.to know, how much that man God, millions, Sean Lee! How much PR
:08:47. > :08:49.disaster can cost a company -- how much that man got, millions, surely.
:08:50. > :08:52.President Trump has been telling Reuters news agency he will either
:08:53. > :08:54.renegotiate or terminate what he called the United States'
:08:55. > :08:56."horrible" free trade deal with South Korea.
:08:57. > :08:58.He also says Seoul should pay for a US anti-missile system
:08:59. > :09:13.What has the reaction been about potentially renegotiating this trade
:09:14. > :09:19.deal? In hard numbers, the Korean one is stand-by 0.7% and the markets
:09:20. > :09:26.are down slightly, stock markets -- the Korean currency is down by.
:09:27. > :09:32.Politically it isn't playing well, particularly that suggestion that
:09:33. > :09:37.South Korea should pay for the anti-missile system. But there is a
:09:38. > :09:42.bit of scepticism here. A Foreign Ministry official told Reuters that
:09:43. > :09:47.the difference between words and policy is often great. Let's wait to
:09:48. > :09:52.see how this thing plays out. Look at the change of policy from the
:09:53. > :09:57.Trump administration on Nafta for example and on China being a
:09:58. > :10:01.currency manipulator. There's not a feeling in this country that Mr
:10:02. > :10:04.Trump's are absolutely set in stone. And the deal goes like that. Steve
:10:05. > :10:10.Evans, thank you for your time. Asian stocks slipping overnight -
:10:11. > :10:15.investors selling to Loads of economic figures out
:10:16. > :10:21.today that the markets Keep an eye on the Dow
:10:22. > :10:28.with first-quarter GDP figures And in Europe we also have first
:10:29. > :10:39.quarter GDP for the UK and France and Euro-zone inflation
:10:40. > :10:40.figures for April, Let's go to Samira
:10:41. > :10:46.Hussain on Wall Street. How much has America's economy grown
:10:47. > :10:49.in the last three months? We will find out later on Friday when the
:10:50. > :10:53.commerce Department releases the latest GDP figures. The expectation
:10:54. > :10:58.is that the in gross domestic product will have dropped almost by
:10:59. > :11:01.a full percentage, compared to the previous quarter. President Trump
:11:02. > :11:07.campaigned on a promise to bring growth up to 3% and that the newly
:11:08. > :11:11.released tax proposal will help spur robust growth. Earnings continue on
:11:12. > :11:15.Friday. Exxon Mobile will be reporting. Cost-cutting measures
:11:16. > :11:19.will likely have boosted profits for the world's largest publicly traded
:11:20. > :11:25.while producer. Finally, the used car company Carvana will start
:11:26. > :11:29.trading on the New York Stock Exchange. This company allows
:11:30. > :11:34.customers to pick up cars they buy on the internet from vending machine
:11:35. > :11:35.like towers. Let's stay with the markets.
:11:36. > :11:37.Joining us is Tom Stevenson, Investment Director
:11:38. > :11:48.A familiar face, good too happy with as always. Tomorrow marks the 100th
:11:49. > :11:51.day of President Trump. Since he has been president of the United States.
:11:52. > :11:59.There are some stories around the French paper, Le Figaro about his
:12:00. > :12:05.first 100"chaotic" days. They are talking about the US economy, the
:12:06. > :12:09.job numbers. But I say credit where credit is due. Business and consumer
:12:10. > :12:13.confidence in the US is up from Trump and so has the stock market,
:12:14. > :12:19.it has rallied, isn't that the Trump effect? I think you're right, when
:12:20. > :12:23.Trump was elected, there was a lot of positive optimism from the
:12:24. > :12:27.markets about what he might deliver. The evidence for the first hundred
:12:28. > :12:30.days is a bit mixed. Napoleon said bring me lucky generals and I think
:12:31. > :12:33.Trump was lucky because a lot of the good news was already baked in. The
:12:34. > :12:39.improvement in the American economy was already there and he has written
:12:40. > :12:43.on the coat-tails of that. The two issues for me, really, delivery, can
:12:44. > :12:48.he get through the measures he wants through Congress? We saw the tax
:12:49. > :12:52.reforms this week. It's going to be hard. Frankly, they were very
:12:53. > :12:54.sketchy and how is he going to pay for them? How will he persuade
:12:55. > :13:02.Congress that is the right thing to do? Secondly, his flip-flopping,
:13:03. > :13:04.changing his mind. And after this we, the North American Free Trade
:13:05. > :13:10.Agreement, he was going to renegotiate that, cancel it, now he
:13:11. > :13:15.is not -- this week. China, currency manipulator, no, they're not. The
:13:16. > :13:21.verdict is pretty mixed. Monday is the 1st of May. Looking ahead to the
:13:22. > :13:27.summer, there's an old stock market adage, which you had to tell me,
:13:28. > :13:31.will sell in May, go away, don't come back until... Saint Leger day,
:13:32. > :13:34.the horse race in September. The summer is a bad time to be in the
:13:35. > :13:40.stock market. There is some evidence that that is the case. On average,
:13:41. > :13:43.the stock market does perform better in the winter months, no one really
:13:44. > :13:51.knows why. The trouble is, for an adage to be useful to investors it
:13:52. > :13:54.has got to be predictable. This one is not predictable. We did some
:13:55. > :13:56.research at this, we looked at the last 20 years and we found ten times
:13:57. > :14:01.the market rose in the summer, ten times it fell in the summer! It's a
:14:02. > :14:05.bit of fun but as an investor, does it help you, probably not. We need
:14:06. > :14:11.to wrap it up. Are we expecting good numbers, the UK and US economy? GDP?
:14:12. > :14:17.The underlying story is pretty good. You will take us through some of the
:14:18. > :14:22.paper stories? Yes. And about the books. Do you read or do you tap?
:14:23. > :14:23.Turn your tap! No laughing at you either!
:14:24. > :14:28.Our Technology Correspondent, Rory Cellan-Jones, will chart a path
:14:29. > :14:31.through all the big tech stories of the week.
:14:32. > :14:45.You're with Business Live from BBC News.
:14:46. > :14:48.Later this morning, we'll get official figures on how the UK
:14:49. > :14:53.economy grew in the first three months of the year.
:14:54. > :14:57.GDP increased by 0.7% in the last three months of 2016.
:14:58. > :14:59.But Britain's economy is expected to have cooled considerably
:15:00. > :15:02.in the first three months of this year.
:15:03. > :15:05.Ben Thompson is at a cash and carry in the Midlands to find out how
:15:06. > :15:16.the economy is affecting the business and its customers.
:15:17. > :15:24.We're here at East end foods. It is a cash and carry selling too big and
:15:25. > :15:28.small firms. It also manufactures and sells some of its products
:15:29. > :15:34.around the world and imports raw materials as well. It is the perfect
:15:35. > :15:37.sample of business facing up to uncertainty as far as the economy is
:15:38. > :15:41.concerned. Google get the latest economic growth figures later this
:15:42. > :15:49.morning. Let's discuss them. -- we will get. Good morning. Let me start
:15:50. > :15:54.with you, Jason. We talk about uncertainty. As far as the economy
:15:55. > :16:00.is concerned, it is very uncertain at the moment. What does that mean
:16:01. > :16:04.for you? Last years since the referendum vote we have seen the
:16:05. > :16:10.currency situation affecting the business with devaluation of
:16:11. > :16:15.sterling. We net imports. We process and manufacture here in the UK.
:16:16. > :16:21.Those costs are difficult to pass on to our customers and the consumer.
:16:22. > :16:24.There is a feeling that if you are an importer, you're also an
:16:25. > :16:30.exporter. One does better and wonders worse. It is not so simple,
:16:31. > :16:37.is it? Absolutely. It depends on the business in question. If you are an
:16:38. > :16:44.exporter it is better but as an importer things have got more
:16:45. > :16:49.expensive. Overall, there is still a lot of positivity around the economy
:16:50. > :16:58.and many companies predicting gross. And key very much. We will get the
:16:59. > :17:07.growth figures at 9:30am. Expected to show a .4% growth. A rise in
:17:08. > :17:12.inflation and a slowdown in wages. The latest retail figures were also
:17:13. > :17:28.down pretty sharply. Uncertain times ahead for many businesses.
:17:29. > :17:41.Our top story: big profits surging for the four big tech giants. Big
:17:42. > :17:45.increases. They just keep getting bigger and bigger those companies.
:17:46. > :17:50.Some breaking news. Six people have been arrested in connection with the
:17:51. > :17:53.anti-terrorist operation that happened in Willesden where one
:17:54. > :17:58.woman was shot and injured by armed police. The Deputy Assistant
:17:59. > :18:04.Commissioner announced that this morning. This follows an arrest
:18:05. > :18:08.yesterday of a 27-year-old man who was arrested near the Houses of
:18:09. > :18:11.Parliament as part of an intelligence led operation. As we
:18:12. > :18:14.were saying that six people have been arrested. More throughout the
:18:15. > :18:17.day on the website and the news channels.
:18:18. > :18:21.Would you like to fly around in your car?
:18:22. > :18:28.This week, Uber said it plans to test flying cars by 2020.
:18:29. > :18:32.The rise of artificial intelligence - the latest example is an app that
:18:33. > :18:35.will be better at medical diagnosis than a human doctor.
:18:36. > :18:53.At least that's what its developers claim.
:18:54. > :19:02.Rory is here. I have a feeling about why this is all happening for the
:19:03. > :19:08.Peter Teal said something a few years back. He said we were promised
:19:09. > :19:13.flying cars and ended up with 140 characters, ie Twitter. Keywords
:19:14. > :19:17.making the point we have had these exciting visions and it has all been
:19:18. > :19:22.mundane. We have not had these gadgets. Lots of people across
:19:23. > :19:29.silicon Valley suddenly trying to build flying cars. I think it is a
:19:30. > :19:33.fantasy. It is about investing in self driving cars. There have been a
:19:34. > :19:40.few hiccups along the way. It is trying to show it is as expansive
:19:41. > :19:44.and ambitious as Google. It has a plan and is collaborating with
:19:45. > :19:54.aviation companies. Says they will be there in 2020 in Dubai. It is an
:19:55. > :20:03.incredibly ambitious place. I am a complete sceptic about this. The
:20:04. > :20:05.idea that you will have the infrastructure there to have these
:20:06. > :20:15.take-off and landing electric vehicles which have not been built
:20:16. > :20:23.yet, by 2020... Can we run the footage of the Kitty Hawk? This is
:20:24. > :20:27.Larry Page, the founder of Google. He has a separate little business is
:20:28. > :20:32.doing this. They put out an advert for it this week. Someone rings up
:20:33. > :20:40.and says, I will pop over in two minutes. That is pretty cool. Of
:20:41. > :20:45.course it is. The idea that we will all be popping in to work on one of
:20:46. > :20:54.these flying votes, flying cars, in the next few years. In the next few
:20:55. > :21:00.years, maybe not. We were promised them in the 50s, maybe not. Let's
:21:01. > :21:06.talk about artificial intelligence. In a way, it kind of makes sense.
:21:07. > :21:15.All that information stored in one hub. There is a big report out on
:21:16. > :21:18.machine learning, a subset of artificial intelligence. Google's
:21:19. > :21:25.results, they placed huge emphasis on how expert they were at machine
:21:26. > :21:29.leading. A small health care companies says, all of this depends
:21:30. > :21:35.on data. All these companies having access to vast amounts of data.
:21:36. > :21:39.Great programmes. You do not tell the computer what to do, you tell
:21:40. > :21:44.the computer to learn what to do. In this case, the computer is learning
:21:45. > :21:49.from previous medical consultations effectively to be a doctor. Very
:21:50. > :21:52.powerful technology we see popping up in allsorts of places with
:21:53. > :21:58.instant translation. Every time you talk to your phone and recognise --
:21:59. > :22:11.it recognises your voice, that is machine learning. A new Wiki? The
:22:12. > :22:17.founder is trying to launch a new platform which is anti-fake news. It
:22:18. > :22:23.is basically a crowdfunding operation. It is laudable, it is
:22:24. > :22:29.great. So far they have funded four journalists. This is not going to
:22:30. > :22:37.change the world in a hurry. Have you got any plans for the weekend? I
:22:38. > :22:41.will pop into my flying car. Then go to see the doctor. You do that.
:22:42. > :22:44.Always a pleasure. And you can hear a lot more
:22:45. > :22:47.about flying cars with Rory on his Tech Tent programme on BBC
:22:48. > :22:50.World Service radio at 14:00 GMT And if you miss it you can download
:22:51. > :23:06.the podcast via the BBC website. A great plug! He has a pod cast. And
:23:07. > :23:18.this is how you get in touch with us. We will keep you up to date on
:23:19. > :23:29.the business live page. We want to hear from you. Get involved on the
:23:30. > :23:35.BBC business live web page. You can find us on Twitter and Facebook.
:23:36. > :23:46.That is on TV and online whenever you need to know.
:23:47. > :24:02.Read out some tweets for us. We have had tweets about ebooks. Nancy has
:24:03. > :24:07.said, ebooks all the way. You cannot pack enough real books for a
:24:08. > :24:12.holiday. Also tweets saying it is all about the audio book. I have got
:24:13. > :24:16.an e-reader that I can never remember the name of the book I am
:24:17. > :24:24.reading. I know it is a really good book. I don't know what it is
:24:25. > :24:30.called. What do you do? Does not say a lot about you at commissioner only
:24:31. > :24:41.joking. We spend so much of our lives looking at screens. The thing
:24:42. > :24:47.about ebooks, you can load so many different books how many books can
:24:48. > :25:00.you read at one time? One. I do not really see the point in this. I
:25:01. > :25:11.personally prefer the books as well, especially if it gets wet! The
:25:12. > :25:16.Aussie supermarket food rescue group. Explain. They have recognised
:25:17. > :25:22.the fact that the third of all the food in the world goes to waste.
:25:23. > :25:27.That is a disgraceful figure, when you think about it. Who is to blame
:25:28. > :25:35.for this? In a large part, restaurants and supermarkets. Why do
:25:36. > :25:42.restaurants waste -- supermarkets waste so much food question that
:25:43. > :25:46.they have sell by dates. You take this food and, for a certain number
:25:47. > :25:52.of hours a day, they are saying, come and get it. I think it is a
:25:53. > :25:56.fantastic initiative. Have a great weekend. Thank you for coming on.
:25:57. > :26:10.That is it for today. We'll be back next week.
:26:11. > :26:18.Good morning. The bank holiday weather forecast is on the way. Just
:26:19. > :26:20.the chance of some rain. It may well come from this cloud waiting