02/08/2017 BBC Business Live

This is Business Live from BBC News with Sally Bundock and Ben Thompson.

Still hungry for more apple. The tech giant expects big things for

the next I pone as it publishes its latest results.

Live from London, that's our top story

Growing demand for iPads and its other services helped deliver

an $11.3 billion profit and send Apple's shares to a new record high.

is President Trump about to take action against trade practices

Markets in Europe are mixed right now despite a record close the night

before on Wall Street and a strong session in Asia.

If you're going on holiday, what do you do with these things, your pets?

Would you let someone stay in home for free if they agree to look after

your pets for you? We will speak to the man who is trying to make a

business from that very idea! We want to know how far would you

relocate for work? Let us know - just use

the hashtag BBCBizLive. Yes, do send in your thoughts and

your questions about the stories we're covering. Including staying in

people's homes looking after their pets.

In a decade Apple has sold more than 1.2 billion iPhones and it

seems like the world's most valuable company.

It doesn't see any end to our enthusaism for one

of the 21st century's most revolutionary products.

It appeared to dismiss fears of a delay to the expected September

release of its latest model as it told us it made $45.1 billion

of sales in the three months from April to June.

So its shares have hit a record high in after-hours trading.

Apple made a pre-tax profit of $11.3 billion in those three

months from April to the end of June, helped by strong

This year the iPhone is ten years old, but it's not been

performing so well in China, where sales this quarter were flat

and total Chinese revenue for the company actually fell by 10%

compared to the same quarter last year.

Apple trails its arch rival Samsung for smartphone market share right

across the globe which some analysts say is a problem

for a company so reliant on handsets for its profits.

But one way Apple has tried to decrease its reliance on iPhone

sales is its growing range of services.

Those grew by 22% year on year in Q3, with the company raking

in $7.3 billion from things like its app store and

Bryan Glick, editor in chief at Computer Weekly is with me.

I'm interested in your thoughts first of all on the figures and

where the growth is coming from. Because it's a familiar tale, isn't

it? Some bits are doing well and some bits aren't, but the stand-out

services, and iPads? The iPad. This is the revolutionary product that

made Apple what it is today, but at the moment people aren't renewing

their phones as often. The pace of innovation in the hardware has

slowed down. People are hanging on to their phones for longer so they

are buying fewer and in Apple's particular case there will be some

new iPhones coming later this year so people are waiting to buy. They

referenced that in the figures that people might be waiting off waiting

for the new iPhone, they are thinking long-term it is good news?

Yeah, of course. Every time there is a new iPhone, there is a big peak in

sales as die hard iPhone fans wait to upgrade to whatever the new

device is. If there was a firm that changes behaviour, it's Apple. It

gets us to do things we never expected to be doing. Apple Pay, so

their mobile payment service accounting for nearly 90% of mobile

payment transactions. That's a huge slice of that market and one that

they have sort of created themselves? Because there is this

slowdown in the smartphone sales themselves, Apple wants to make,

wants to keep us tied into its devices, but it wants people to use

the devices for new things. So, you know, if Apple can't make as much

money as quickly from selling the devices themselves, it wants to make

as much money from what people are doing on their devices. Apple Pay

put them into the lead with that, being able to use it for payments,

here in London where we are, you are used to seeing people using public

transport by tapping their iment phone on to, as they get on to a bus

or an underground. That area of innovation and the branding Apple

has around that has given them a big lead in services over some of the

other smart based phones. 1.2 billion iPhones sold. So we look at

the numbers and it seems like it's up and up and China is a problem. A,

they have got a lot of tough competition and the regulatory

environment is tough too? The competition there is the big thing.

Apple is a premium product. They charge a lot of money for it. There

are a lot of much lower cost competitors in China based on the

android operating system, not just Samsung, but local Chinese providers

who are proving to be extremely popular and I guess there is a lot

of loyalty from Chinese customers to Chinese providers as well. So Apple

has got a challenge there to try and make the most of that premium

positioning that works very well for it in the rest of the world. Yeah,

it's a fascinating story and one we talk about a lot, but with good

reason, I think. Bryan, thank you. Let's take a look at some of

the other stories making the news: Profits are up at

Germany's Lufthansa - it's the world's tenth biggest

airline by passenger numbers. The company, which owns

several other airlines, made almost $876 million

in the three months to June which is 70% more than in

the same period last year. The carrier said it had got more

passenger on to its planes and its cargo business

performed much better. Just days after Apple yanked

anti-censorship tools off its app store in China,

another major American technology Amazon's service in China has

told its customers to stop using unauthorized virtual private

networks which are used to circumvent China's

censorship filters. The move appears to be part

of a wider government clampdown. It pays to dig - the mining giant

Rio Tinto has reported a 93% The Anglo-Australian miner

raked in $3.3 billion in the six months to June,

helped by higher commodity prices, but heavy rainfall in Australia hit

production of iron ore and coal. The United States is reported to be

considering taking action aginst what it considers to be China's

unfair trade practices. Yes, President Trump

is said to be close to starting an investigation

that could lead to tariffs What's this about? American business

and now the Trump administration believe that there isn't a level

playing field when it comes to trade between China and the United States.

They are particularly concerned about what they think is Chinese

firms stealing on some occasions intellectual property from American

companies. There has been a dispute between the US and China about the

idea of fair trade between the two countries, but now President Trump

has linked trade and any deal there with diplomacy and action over North

Korea and the crucial part to the rumours that we are hearing out of

Washington that some kind of investigation maybe ordered by the

president and possibly in a few months there maybe action and some

kind of trade war really between the two, or certainly the beginnings of

that, I think, crucial to that is the failure we have seen in the last

few days of the US Administration to try and force the Chinese to

persuade North Korea to give up its nuclear ambition. This is about

trade and diplomacy and we are seeing a change in attitude from the

Trump administration. Robin, thank you very much.

Something to keep a close eye on. The record night before on Wall

Street. We will hear more about that in a moment. That's how the Dow

ended. It's not far off 22,000 as you can see. In Asia, the story that

pushed the markets higher was Apple's results. Many tech companies

listed on markets in Asia. Companies based in Asia supply Apple. Make the

bits that goes in the iPhones. Let's move on to Europe. We've

mentioned the earnings stories. Will you have stories. Rio Tinto

continuing to push up the footsie 100. A mixed picture in Europe.

And Samira Hussain has the details about what's ahead

Electric car-maker Tesla will be reporting earnings on Wednesday.

It has been selling more of its model S and model X luxury

electric vehicles and that will likely boost

The trouble, of course, is that the company will continue

to post losses as production efforts for its mass market

Now the model 3 is Tesla's lowest priced electric car.

Investors will be looking for details about the car deliveries

for the second-half of the year as well as any changes

Also reporting earnings Time Warner, the success of the film Wonder Woman

will help boost revenue for the quarter, but investors

will be looking for details on AT's purchase of Time Warner.

Sap samira there with the details about Wall Street.

Joining us is Alex Dryden, global market strategist,

Welcome to Business Live. A new face on the programme. So let's stay in

America because yesterday, as Sally mentioned, the Dow did particularly

well and it was banking stocks that rose pretty sharply. Why? Well,

there is a couple of factors driving it. Good global growth has been

helpful for banks in the US and outside of the US, but also

deregulation and the talk of potentially rolling back some of the

regulation that was implemented after the financial crisis which has

eaten into some of the profits for the banks, the potential for that.

We are still talking about talk. We are not seeing much action when it

comes to financial regulation, but also other elements in the US

economy? Yes, there was a lot of hype at the end of 2016 about the

potential of fiscal stimulus. However, there has been quite a lot

of gridlock in Washington which has held back some of that potential and

maybe delayed it until 2018. We believe it will still come through,

but maybe not on the scale that people originally anticipated. The

weakness of the dollar and how that to an extent is actualing the

appetite for share markets because people are getting a return there.

What do you think will be the trigger for it to go the other way?

We're headed up and up and up, but it can't go on forever as we know

only too well? What we are looking at globally is the acceleration in

growth which has been going on for six to nine months. If we saw some

faltering in that, maybe we would start to see equity markets sell

off, but right now, we are looking at a good earnings season. US

earnings has been quite strong in the second quarter and that's

providing a nice support for US and global equity markets. A word on

tomorrow, the Bank of England, all eyes on that, what are we expecting?

There has been a lot of increasing anticipation of a rate hike from the

Bank of England. We believe that actually, without much sign of wage

growth coming through, that actually the Bank of England will stay on

pause this year. The markets are slowly waking up to that, but it

won't be until we get some clarity from tomorrow's meeting that the

Bank of England unlikely to raise rates this year in our view. We will

keep a close eye on that and you will be back to talk us through the

paper stories. Alex, thank you. Would you let someone stay in your

home for free if they agreed it look after your pets? Stay with us,

you're with Business Live from BBC News.

Prices in the shops continued to fall last month,

Food prices are going up, but they're going up less quickly.

The price of non-food items continues to fall.

Rachel Lund is head of retail insight and analytics

Good morning to you. A really different picture opens up, doesn't

it, we're used to the idea of prices starting to creep up. We're told

that inflation overall is on the way up, but there is a different picture

in the figures? Yes. That's right. What we have seen is since the

beginning of the year prices have crept up, but they have just come to

a halt this month because there was a number of dynamics in the market

playing out at the moment. So, talk us through the dynamics and what's

going to happen in the future? Because, of course, as we have said,

we're traying to get used to prices in food going up, partly because of

the browned and the Brexit scenario, but what is going to happen in the

months to come? Well, so you've got the impact of the currency

depression which has fed through into prices, but, into food prices,

but at the same time, you have got a highly competitive market in retail

as well which is keeping prices lower in some areas and particularly

on entry level products for retailers which is why we're seeing

particularly non food prices, those prices creep up slowly. Because

there was some big drops at the end of last year, year-on-year, there is

a lot of ground to make up. So what, how are retailers reacting. Asda, a

decline in sales. Some of them are really suffering, aren't they? Yes,

it is a challenging market and for retailers. A lot are having to think

hard about how they do things. As ever, there are some winners and

losers and what they are having to do is really innovate to capture a

smaller and smaller consumer budget. OK, for now, thank you for your

time. A look at the situation in the retail market in the UK.

A quick look at the Business Live page. The details as they come into

us are there. We told you about Trinity Mirror's results yesterday.

It is Johnson Press today. Owning a lot of regional papers in the UK.

Trading conditions, it says for regional newspapers in the UK remain

difficult, it is that crucial issue of advertising, much of that now

moved online. Away from traditional print publications and that's

hitting the bottom line for groups like that.

You're watching Business Live - our top story:

Once again Apple astounds. It made more than $11 billion in pre-tax

profits in April, May and June. I would like to be able to boast of

that. And it is interesting where that growth is coming from. Still

iPhones, iPads, but it is the services, things like Apple Pay,

that are doing really well. Let's look at the financial markets...

Europe seeing a bit of a mixed picture. The tech stock is doing

well, so anyone linked to Apple in any way is seeing their shares go

up. What we have spoken about, the big

disruption to traditional players. Would you let a total stranger stay

in your home for free - if they looked after your beloved

cat or dog? The website TrustedHousesitters says

it has nearly half a million They pay an annual membership

fee, and in exchange a person can stay free

in people's homes as long as they look after the pets -

which can mean everything from cats Who wrote this?

LAUGHTER But house sitting is

a competitive industry, with many global firms including

Nomador and Mind my House also There are also a lot of local people

who advertise. They don't have websites but are all over the local

media. Joining us now is Andy Peck,

chief executive and founder Good morning. Can we clear this up

once and for all? Does anyone have a giraffe? I'm not entirely sure

people have looked after giraffes, but the great thing is people can

find the right people... They are out there! That lady with a farm in

Botswana just waiting to sign up to Andy's service. How did it start? We

launched about seven years ago. We realised the need for a proper

solution to a common problem, in some time when a lot of people are

looking to go away on holiday and one of the biggest problems people

face is who will look after their home and their pets, we provide that

solution. A lot of people put pets into kennels, a lot of cost outlay

before you go away, and people don't have that peace of mind, or they

rely on friends and family, or are they pay a sitter, and why do that

when they can have someone who welcome to do it for free because

they love animals. Have to confess our dog sitting scenario when we

were going to go away, two days ago. I managed to fill the gap and did

not turn to your website, but when I thought about it, I thought, gosh, I

don't know if I would want a total stranger turning up to my home, a

stranger to my dog, they wouldn't know how to put the lead on, were to

walk the dog, there are so many things to tell that person, they

must be some sort of handover period, I assure, or do they arrived

early? How does it work? Yes, great question. Many people have those

concerns of course because their homes and pets are the most trusted

positions, so we have taken a lot of time ensuring that we provide the

best value proposition, so the pet can stay at home, people can find

online reviews about people coming to pet sit, we use industry-leading

trust and verification methods to ensure you can choose your ideal

person to come and look after your pets. Reputation is really

everything, so for example if you look at our online reviews, we have

more 5-star reviews than any pet company globally. If I went to New

York, and I don't have a pet, but pretend I do, so I went to New York

to look after someone's pet, the chances are I would want to do some

sightseeing, not just stay at home and looking at the pet. How much

time do people have to commit to walking the dog or whatever and not

just have a great time being on holiday? This goes back to Sally 's

point, depending on the needs of person have. Some people might need

a dog to be what three or four Mike Pence today, but if they might --

three or four times per day, but they might have a cat that needs

looking after. We were pet sitting in New York in a beautiful

penthouse, fifth Ave, walking the dog every day, able to enjoy the

local environment like any pet owner would, but making sure the pet is

looked after. And away you make money, both sides put money in the

pot once a year? So those who look after pets and those who want people

to come to their home, they pay a fee, about ?90? But how does that

cover all your costs, insurance cover for things wrong in the house,

the pet dying, all these problems that could occur? We operate I think

a very efficient business in terms of the fact we are able to reinvest

everything we do into creating the business, so we are doubling in size

each year. Huge market, because 60% of Western world own a pet and it

helps save in pet care travel costs. We have members in 150 countries,

and that is why we are growing at quite a pace, because travel

companies are realising there's not a great solution at the moment, so

one in four pet owners for example at the moment don't travel, period.

So we can bridge that gap to help more people travel more often and

more affordably. Andy, nice to see you. Thanks for explaining all of

that. An interesting business, and also how it all came about. Andy

Peck there, the founder of TrustedHousesitters. Send in your

thoughts because I am sure you have views on that. Yes, and a lot of

tweets about reallocating for work. Germany's car manufacturers

could agree a plan to slash diesel It's now two years since some

of the country's biggest manufacturers were found guilty

of cheating emissions tests. Let's go live to Berlin and speak to

our correspondent Jenny Hill. Tell us more about this big gathering

today. Yes, it is worth noting first of all that air pollution in many

German cities now regularly exceeds the legal limit and that is what is

really concerning politicians, and they remained it is an election

year. It is being blamed the combustion engine. The city of

Stuttgart is looking at banning diesel cars outright from the city

and other cities may follow suit. Of course a huge headache for Germany's

all-powerful automotive industry. The idea of today's summit is not

just trying to restore the rather tarnished reputation of Germany's

car manufacturers, but is also looking at how to reduce that

pollution. Expect some compromise. Manufacturers may for example

retrofit 2 million or so of the older diesel cars on Germany's

Broads, but don't expect Germany to go as far as Britain and France and

commit to ending production of combustion engine cars altogether --

the older diesel cars on Germany's roads. Jenny, thank you very much

indeed. A big issue for many major cities in the world actually, and I

am sure many will be watching about what goes on in Berlin. Thank you.

Yes, Alex Dryden is back to speak to us but what is happening in the

papers. This story about relocating. They are struggling to get their

staff to go with them, the US agency. The story is that 75% of

staff will not know. That will be a challenge for a lot of firms? Yes,

and at the moment we don't have a lot of details about how much access

companies will have to the European Union, so so those questions over

that. And there will be a number of firms going through this challenge.

It is very difficult to lift your workforce and just put them into

another place. They have families, kids at school, whatever it might

be. It will be more of a challenge. It is easier said than done. Ritual

has treated to say exactly that, disruption many times, with the

children, isolation from friendships -- Rachel has tweeted. This one

about relocating to Glasgow, like another planet. I relocated to

Bristol, wonderful. David says I worked in 15 different countries and

it was no problem for me. In fact I really enjoyed it. So it just

depends on the individual, doesn't it? Yes, and someone three months

ago, I relocated from London to New York and that was fantastic,

something I wanted to do. Having it forced upon you is a difficult

change. A big debate for many firms at the moment. Alex, really good to

see you. -- I relocated from New York to London. That is it from the

show today. We will be back at the same time and simplest tomorrow. I

will be here tomorrow. See you tomorrow. Goodbye.

Good morning. Changeable weather over the coming days and your

umbrella will certainly come in handy. Where it is drier, the