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This is Business Live from BBC News with Ben Thompson and Sally Bundock.
Tesla shows us the road to the future.
The world's leading electric car maker cut its losses and pushes
into fifth gear with a big jump in sales.
Live from London, that's our top story on Thursday
Elon Musk's company says it's had more than half a million
orders for it's Model 3, but how long will it take for Tesla
Delivering a blow to Australian retailers?
Internet shopping giant Amazon says its going down under
to open its first warehouse in the country.
And as the Dow surged through 22,000 off the back
of those Apple earnings - attention today on the Bank
of England's rate decision and forecasts for growth.
We speak to the boss of Cirque du Soleil on how to walk the tightrope
of balancing finance, safety and magic tricks
And as Brazilian footballer Neymar looks set to become most expensive
footballer in history - moving to French club
Paris Saint Germain for a record breaking 262 million dollars -
we want to know what's your most expensive purchase?
Let us know, use the hashtag, BBC Biz Live.
A lot of suggestions coming into us already, including your university
education and your house, chances are it is one of those two. Let us
know, use the hashtag. Let's begin in the United States, with Tesla.
Tesla is the car company that's promising to change
Investors have been taking a huge gamble on the electric car maker
and it judging by its latest numbers that appears to be paying
off, the share price has risen even higher.
Here's why: In the three months to the end of June sales hit $2.8bn.
That's more than double the same time last year.
It's still losing money though - over $336 million in the same three
month period which is more than last year - but not as bas
And it's paying off - Tesla delivered nearly 26,000
vehicles in that time, 40% more than the same
And that number could soon rise even further because its taken more
than half a million orders for the Model 3.
It started delivering what's being described as its first mass
Tesla hopes the Model 3 will keep it at the top of the market
But two Chinese rivals are already in the top five -
Plus the German car giants are investing heavily
as they try to put the 'dieselgate' emissions scandal behind them.
But the Model 3's design is transforming the industry.
It has less than 7,000 parts, which compares to 30,000
That might sound like a lot. But it isn't much compared to the
traditional car. That makes it simpler to build -
and less likely to suffer Jeremy White, Product Editor
of WIRED is with me. Thank you for coming in. So, Ben is
talking through some of the statistics and numbers. These are
pretty good earning figures for Tesla, aren't they? Which is good to
deliver, considering how the share price has been going up and up over
the recent weeks and months? They are impressive figures and they show
the appetite for these vehicles, they are getting 1800 orders per day
for the new Model three. It is whether they will be able to deliver
those, they have had difficulty delivering on the previous models,
getting sales delivered. It is whether they do that, that is
interesting. Talk us through what could be bumps in the road. They are
more simple for the manufacturer but it is the supply chain, the plants
to build the cars, they do not have that at the moment. They are
building a battery factory in Nevada with Panasonic and they are trying
to compete with the traditional manufacturers, with the supply chain
which is already set up, it is going to be difficult. And it is true that
Elon Musk has cast a spell over Wall Street and the numbers help him, it
shows that he is delivering on his enormous promises but, in the
meantime, his rivals in the car industry are catching up very
quickly, and they are busy working on those similar vehicles, and there
is momentum behind this now. We have government policy coming into line,
we had the meeting in Berlin yesterday and announcements from the
UK Government. The appetite is that? Yes, and the regulations coming in
for 2019 require higher restrictions on emissions, that is why we had
an announcement from Volvo that they will be making electric only cars
from 2019. Car makers are making cars and government is trying to
push policy but when it comes to the nuts and bolts of it, or whether you
can charge what you want, and the batteries need to get better so they
do not take so long to recharge? That is right, the Model three has a
range of 500 kilometres. Jaguar are working on a car with a similar
range, as are Bentley. It's what you do when you run out of power after
that distance. The gamble is you will only use the car for less than
that per day and then come home and charge it up. What if you are on the
road and you do not have charge left? Battery technology is
relatively in its infancy in electric vehicles and it needs to
get much better to allay these fears and allow for fast charging. Thank
you for your time this morning, fascinating. So much more about
Tesla on our website, including if you dig deep and find the interview
with Elon Musk that Rory Kevin Jones did not so long ago.
Let's take a look at some of the other stories
The food delivery company Deliveroo is introducing
new safety measures to protect its riders from violence.
It follows acid attacks in London last month,
where the victims included riders delivering by bike or moped.
Among the measures are a new app feature that allows riders
to raise security concerns, plus a trial of helmet cameras.
Australia's Commonwealth Bank has been accused of massive
breaches of money-laundering and counter terrorism regulations.
The case against the country's biggest mortgage lender
is the biggest case of its kind in Australia and the first
Commonwealth Bank says it is reviewing the allegations
Toshiba says it's going ahead with the capital investment to build
a new memory chip production line without joint venture
partner Western Digital, after the two have failed to reach
Somewhat confusingly though, Western Digital has just said it
intends to invest in the new chip line along with Toshiba.
We will find out what is going on and let you know! You have that job,
OK? I am delegating! Amazon has announced it
will open its first retail logistics The online retailer says
that the 24,000 square metre "fulfilment centre" is "an integral
early step" in its effort to establish a retail
presence in Australia. That's management-speak if I have
ever heard it! Mariko Oi is in our Asia
Business Hub in Singapore. We heard the management-speak, what
is going on, a big change for Australia? Indeed. It seems that
Amazon is really investing heavily in Asia-Pacific, just last week we
told you that Amazon has launched its Prime Now service in Singapore
as part of the start of its aggressive expansion into Southeast
Asia and now the company has unveiled the location of its first
warehouse, in Melbourne, making sense due to its proximity to the
east coast were over 80% of the country's population lives. We still
do not know when the service is going to start but it is definitely
going to put a lot of pressure on traditional retailers whose shares
have been falling since the announcement was made. Absolutely,
thank you very much. Yes, Amazon's integral early step to establish a
retail presence in Australia. Asian shares were down on Thursday,
led by falls in South Korean tech shares, as investors locked
There was also some evidence of slowing activity
in China's service sector and weaker commodity prices.
On Wall Street though, the Dow Jones breaking
through the 22,000 barrier for the first time
I will get out of the way so we can talk about it better!
That was pumped up by those earnings from Apple we told
More earnings news in Europe for investors to digest -
but attention will be on the Bank of England - as it
A hike would be a big surprise - most assuming a rise
will come early next year, not this year.
And so Assuming rates remain on hold, the quarterly
inflation report - that we get a little
What does it make of Brexit, slowing growth, and rising inflation?
Don't pay too much attention to that, the FTSE 100 is actually down
a little bit this morning. More on that shortly -
but first Samira Hussain has the details about what's ahead
on Wall Street Today. Earnings continue on Thursday with
several more companies reporting, including Kraft Heinz, the changing
taste in consumers opting for more fresh and organic food will likely
have hurt the company in the last quarter. Also reporting earnings is
the health insurer Aetna, insurers will be looking for comments on the
company, with uncertainty. After the Senate failed to pass a health care
bill to dismantle Obamacare. Aetna previously. We will hear from the
dish network, they are struggling with the growing trend of cord
cutting where subscribers are dropping TV packages altogether for
cheaper online streaming services, such as Netflix.
Joining us is Jeremy Stretch, head of currency strategy
A familiar face to the programme, nice for you to be here. Do you want
to start? Let's begin with the Dow Jones. I said figures were
partly due to Apple but there are other factors? Yes, Apple was one of
them, but in terms of the Apple Store, people were bracing
themselves for slightly disappointing numbers as there was a
fear that tech savvy phone users were waiting for the next version of
the iPhone, that was not the case. Earnings are strong in a number of
industries, that is the underlying dynamic. And you could argue there
is a currency effect in some instances, as the US dollar has
continued to depreciate in recent weeks, as you translate foreign
earnings into US dollars, it enhances earnings numbers and boost
equity markets. And among market watchers there is a hot debate as to
what will happen next. Is there going to be a horrible correction or
will its tail off? Where are you in the big debate? It depends on what
policymakers do, and so... Are you sitting on the fence? The
valuations, if you look at them against his strikes, they look
stretched but we have seen a massive run, especially in US equities,
there should be some degree of correction but in that context it is
not necessarily unhealthy. Are you excited about Super Thursday?
Undoubtably, not that we are expecting a policy change but what
is most interesting is what the banks say about the growth, they
revised the forecast in February and were forced to take a little of that
in May, they may be forced to do more now, the first half of this
year has been rather disappointing and the consumer is facing
difficulties in terms of maintaining expenditure, so I think numbers will
be revised down which could impact how the markets consider monetary
policy outlets for this year and especially into 2018. We will be
watching closely! The reason I am looking at my phone... That is a bit
rude! We have been asking people for comments about Neymar... Oh, so it
is work? Jeremy is coming back in a moment. The Brazilian footballer is
moving to PSG for a record-breaking amount of money, we suspect.
A lot of the comments this morning. Will you share them or will you
tease us? Starbucks, there we go, I bought a $6 cup of coffee from
Starbucks, it didn't even taste good, it was the most expensive
purchase of my life. On my wish list is the Tesla Model three, says
Natasha. This is what you can spend your money on... A familiar theme...
Housing, cars and clothing. We will look through those later.
Still to come, we will find out how you balance the high wire act of
entertainment with demand for profit with the boss of Cirque du Soleil.
Stay tuned for that. You are with Business Live from BBC News.
High street fashion chain Next says sales fell by 7.4%
But sales at its Next Directory and online shopping
Theo Leggett is our business correspondent -
Next has had a torrid time, what was in these number is, talk us through
them. It is a mixed bunch, but full price sales, if you take into
account what is going on on the high Street, online and the catalogue
business were up 0.7%. Now, that doesn't sound too dramatic but it
was a lot better than the first quarter, which was pretty dire. At
11 and one third percent the share price. What is explaining that? Next
has said it still has a very large cash pile, still generating a lot of
cash and it intends to return a lot of it to shareholders, that is why
the share prices going up, that the fact that it was pretty mediocre, it
was a lot better than the first. Sales picked up in June and July.
Ten one says it wasn't down to any particular marketing genius, it was
the warm weather, remember that? It was summer. So the bits that are
doing well, we have mentioned the online side of the business, focus
through that. Next Directory was already doing well. In the second
quarter sales were up more than 11%. Overall, that is helping to massage
the entire business. The high-street business is down more than 7%. It is
what we have been seeing for quite a while, next is doing very poorly on
the high-street but doing rather well online. Thank you very much
indeed. Talking about this on the today
programme today on Radio 4, despite the rise in binge viewing, streaming
services, things like Netflix, and people say people are still -- Ofcom
said people are still watching traditional TV. Like Business Live!
I am sure it is Business Live, they just forgot to include us. All the
people watching -- older people watching more than younger people,
who I guess ten to watch it more on tablets. Full details on the
website. The top story today, shares in the
electric car company Tesla are pretty sharply after reporting a
doubling of sales and more than half a million orders of its model three
car. That has begun shipping right now. It has been pegged as the big
change for the electric car market. Now markets trading in Europe, the
Footsie down slightly, they are all edging lower just a little bit. Not
following on from the record-breaking night on Wall
Street, the Dow Jones closing down. Cirque du Soleil - or in english
the Circus of the Sun - it's one of the biggest theatrical
producers in the world. The company had its beginnings
in 1984 and now has almost 4,000 staff from more
than 50 countries. Known for its acrobatics,
the group is putting on 20 different And the Canadian
company is expanding, it's just bought the American
entertainment firm the Blue Man group,
and is looking to walk Sharanjit Leyl has been speaking
to Circue du Soleil's chief executive about the company's
expansion plans, and Now with the acquisition of blue man
group, we want to, so with the blue man group and the experience on time
square, Cirque will be looking at markets like London, Hamburg in
Germany, and all of the Asia, we still see a lot of growth, including
here, Singapore. When the private equity firm TPG first took over
sector to lay, -- Cirque du Soleil, there were lots of streamlining of
cost cuts, are those concerns still there? We have not seen any push
from TPG to do extreme cost saving. Obviously we managed saving, but it
hasn't changed the way we produce shows and we create shows. That is
what I told them from the get go. I said I am there to listen to all the
advice you can give me, from a business standpoint, but for
creation and production, you know, that's so important, please leave
our creators alone, and they just burst laughing, because as financial
people, they haven't had any ambition about the product itself.
And of course the Chinese company Folsom also has a stake. So have
they influenced your push into China? They are a great supporter of
us cracking the Chinese market, diving when we will look into three
years from now, and you will see the of Cirque in China. It will be
because of the support I got from them. Over the years though, Cirque
du Soleil has had its fair share of tragedy. You've heard three deaths,
including the death of the son of one of the founders. So what have
you done to improve safety? Obviously we are very sad of what
happened, but the reality is a lot of enquiries has been done after
those fatalities, and it was crystal clear that it was an accident.
Because we are recognised worldwide as having the best safety measure in
the world. And hopefully it will never happen again, but we are very
proud of our safety measures. Tell us a little of yourself, because you
have a really very different background. You started off as a
journalist, you were in television and now you are the Chief Executive
of the largest circus firm in the world. How did you get into it?
That's interesting, because I used to support guy in the early days of
Cirque du Soleil when I was in the PR business. And he was one of the
founders. Yes, then I moved to the TV business and started working with
guy again, and that is when the relationship was not between us, and
Monday he called me out of the blue and said you are going to join the
circus. And here I am running around the world for Cirque du Soleil. Did
you say yes immediately? No, for me, it was such a different challenge
than the TV business, I said let me think about it, and three weeks
later I was joining the circus. And it has changed your life ever since.
It did, it brought an amazing experience to travel around the
world, and to have the possibility to bring a Canadian company around
the world. And this is very, very rewarding. And the fact that you're
a Canadian brand, how do you use that as a potential selling point?
What is quite unique about Canada is that we are recognised worldwide as
a country that really bring a lot of people from around the world, and
everyone loves to come to our creative centre in Montreal. They
feel at home and hosted. If you were to come in our studio in Montreal,
you would have the feeling you are at the United Nations, not at Cirque
du Soleil, which is great, because we like this idea that everybody
feels at home when they come to Canada and they feel at home and
they come to Cirque du Soleil. Daniel Lamarre. Jeremy Ross back to
talk through some of the stories out there being discussed and there is
no doubt that this one about the footballer Neymar's possible
transfer fee, not confirmed, not sealed or signed by any means, but
quite phenomenal the same. This is where business and sport collide in
a very serious way because we're talking about enormous sons of
money. And also about geopolitics, because PSG, the owners of them are
the Qataris, and of course they are also trying to enhance their own
credibility internationally and they are suffering from a little bit of a
political blockade back home. And hosting the World Cup in 2022. They
say money talks, but some would argue this is like verbal diarrhoea,
it really is on another level and you wonder where it will end. We
have this discussion every year, whether the football profit news
comes out, Deloitte, with that on an annual basis. It just seems there is
no cap. The numbers continue to accelerate exponentially. In the UK,
we have seen new football rights, more TV cash coming into the game,
which invariably goes out of the game to agents and players. We as
viewers or supporters of course are one is forced to pay those prices in
order to facilitate these ever elevated salaries and transfer fees.
We asked the viewers what they might do with this kind of money. Chris
said, we asked what is your most expensive purses -- purchase, Chris
said it was his divorce. Alex says my degree. So I think it is houses
and education and maybe family matters. Someone on Twitter says on
returning from deployment in Afghanistan, I bought a Tag watch
for ?2000. That is an expensive watch. Let's talk about this other
story, which is interesting. FTSE 100 pay-outs is going down. Indeed.
What we have seen in the last ten or 15 years is that the earnings of
Chief Executive 's have risen stratospherically. We are now just
seeing a bit of a correction, partly due to the fact that shareholders
are becoming more vociferous and pushing back against... There have
been shareholder revolts. Indeed, and that is making businesses or
renumeration committee is a little bit wary of putting their heads
above the parapet and trying to give Chief Executive 's exceptionally
high pay packages for fear of investor revolts. It could be an
element of tokenism, but there was a realisation there had been a
dislocation between topics Vicky Gibbs and the rest of the workforce.
Thanks, nice to see you. -- between top executives.
Hello, good morning, a day of sunny spells and showers today, the
majority of those will be the north. They are making their way slowly
towards the East, twirling around an area of low pressure sitting