02/08/2017 BBC Business Live


Similar Content

Browse content similar to 02/08/2017. Check below for episodes and series from the same categories and more!



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


Download Subtitles