0:00:05 > 0:00:09This is Business Live from BBC News with Ben Bland and Sally Bundock.
0:00:09 > 0:00:13More cash - and more controversy.
0:00:13 > 0:00:15Facebook's profits rise again despite growing concerns over it's
0:00:15 > 0:00:21role in last year's US election.
0:00:21 > 0:00:31Live from London, that's our top story on Thursday 2nd November.
0:00:37 > 0:00:39The social network made more than $4.5bn in just three months
0:00:39 > 0:00:41but says its going to spend more on security
0:00:41 > 0:00:47and policing the service.
0:00:47 > 0:00:48Also in the programme....
0:00:48 > 0:00:51It could be a boost for global trade - China cuts import tariffs
0:00:51 > 0:00:53on consumer products just days before the US president
0:00:53 > 0:01:02arrives to talk business.
0:01:02 > 0:01:06As always, we keep an eye on the markets, a softer open across the
0:01:06 > 0:01:10main markets in Europe, all eyes are on the Bank of England later for its
0:01:10 > 0:01:12decision on interest rates.
0:01:14 > 0:01:16And we'll be getting the inside track from one
0:01:16 > 0:01:19of the world's biggest computer software companies on how it keeps
0:01:19 > 0:01:22everything from banks to transport systems and the internet running
0:01:22 > 0:01:27despite offering it's products for free.
0:01:27 > 0:01:31Today, we will be speaking to the boss of one of the world's biggest
0:01:31 > 0:01:36software companies. We want to know if you are willing to pay extra for
0:01:36 > 0:01:40technical support, or even for the knowledge that you are secure? Get
0:01:40 > 0:01:51in touch, use the hashtag.
0:01:52 > 0:01:55Hello and welcome to Business Live.
0:01:55 > 0:01:56Welcome to the programme.
0:01:56 > 0:01:58We start with the world's biggest social network -
0:01:58 > 0:01:59it keeps getting bigger, more profitable...
0:01:59 > 0:02:00And more controversial.
0:02:00 > 0:02:02Facebook has announced record profits and another big jump
0:02:02 > 0:02:08in the number of people using it.
0:02:08 > 0:02:11That will only fuel the debate about the power of the network
0:02:11 > 0:02:14and the content that appears on it.
0:02:14 > 0:02:17Mark Zuckerberg's company made a profit of $4.71bn in the three
0:02:17 > 0:02:24months to September - that's up 80% same time last year -
0:02:24 > 0:02:28as advertisers spend ever more cash.
0:02:28 > 0:02:32They're doing that because well over two billion people log on now
0:02:32 > 0:02:34at least once a month - more than a quarter
0:02:34 > 0:02:35of the world's population.
0:02:35 > 0:02:40It's up 16% over the past year.
0:02:40 > 0:02:44With this vast reach of course comes growing scrutiny -
0:02:44 > 0:02:50for example over its role in the US election.
0:02:50 > 0:02:53Earlier in the day Facebook admitted to a Congressional hearing that
0:02:53 > 0:02:56political content originating from Russia was seen
0:02:56 > 0:03:05by 126 million people - a huge chunk of the electorate.
0:03:05 > 0:03:09With me is Tarek Nseir, a Founding Partner at the digital
0:03:09 > 0:03:11agency, TH-NK - who help big companies including
0:03:11 > 0:03:12Nandos and Warner Brothers
0:03:12 > 0:03:14to grow their online presence.
0:03:14 > 0:03:19Thank you for coming in. Give us your take on these earnings. It
0:03:19 > 0:03:23would seem that Facebook is going from strength to strength in terms
0:03:23 > 0:03:28of its core business but this extra added new scrutiny is quite a big
0:03:28 > 0:03:33headache for it?It must be. Putting scrutineers side for a second, this
0:03:33 > 0:03:37is a great quarter. Two years ago, they invested heavily in Mobile,
0:03:37 > 0:03:43they were behind the curve but now 80% of their revenue has come from
0:03:43 > 0:03:45mobile advertising. Advertisers love the platform and the degree of
0:03:45 > 0:03:50targeting that you can get. The data Facebook olds is incredible but
0:03:50 > 0:03:54advertisers are beginning to question the responsibility Facebook
0:03:54 > 0:03:58take on.It is a tricky one, if we talk about it in more detail,
0:03:58 > 0:04:03looking at the last two days of lawyers confessing to Congress about
0:04:03 > 0:04:07what was going on at Facebook before, during and after the US
0:04:07 > 0:04:13election, which Mark Zuckerberg himself said weeks or months ago,
0:04:13 > 0:04:19this is crazy talk. It isn't crazy talk, it is the reality.It is, the
0:04:19 > 0:04:22mixed news of this earnings release this morning is that next quarter
0:04:22 > 0:04:28will be a softer quarter because Mark's moving the team, there are
0:04:28 > 0:04:3010,000 people at Facebook who look after the community and are trying
0:04:30 > 0:04:35to stop these things from happening. He is upgrading it to 20,000 people.
0:04:35 > 0:04:40Considering there are 20,000 people there already, it's a big move.
0:04:40 > 0:04:45Considering the platform size, it's a tiny number.It's a big and
0:04:45 > 0:04:49expensive move, over 2 billion people are logging in monthly, many
0:04:49 > 0:04:55would argue that this is impossible, isn't it?Pretty much, it's about
0:04:55 > 0:04:59having smarter and smarter technology and is definitely about
0:04:59 > 0:05:03applying more and more human capital to the problem. Facebook haven't
0:05:03 > 0:05:07been doing enough fast enough.What will happen, will they be regulated
0:05:07 > 0:05:12in future and what impact does it have on Facebook, Google and
0:05:12 > 0:05:17Twitter, some of its rivals?A good question, for it to be regulated it
0:05:17 > 0:05:20would need pressure from many corners and many nations for it to
0:05:20 > 0:05:25be the case. That is probably quite unlikely but I do think that
0:05:25 > 0:05:30Facebook will continue to take their responsibility more seriously. I'm
0:05:30 > 0:05:35interested to see how this upgrading of their resources go.And in terms
0:05:35 > 0:05:40of the core business and growth, talking of great month on month, how
0:05:40 > 0:05:43will it continue? When we think about the younger people who aren't
0:05:43 > 0:05:48really on Facebook at all?There is plenty of fuel left in their tanks.
0:05:48 > 0:05:57WhatsApp and Facebook Messenger are not really monetised but the leading
0:05:57 > 0:06:02social network in China, you can get taxes on it, you can buy clothes on
0:06:02 > 0:06:07it, Facebook is taking those moves. There are over 1 billion users on
0:06:07 > 0:06:10these two platforms which is a great opportunity for Facebook.We will
0:06:10 > 0:06:13talk about it again and again.
0:06:13 > 0:06:17It will not be off my agenda. Thank you.
0:06:17 > 0:06:19Let's take a look at some of the other stories
0:06:19 > 0:06:20making the news.
0:06:20 > 0:06:22The leading electric car-maker Tesla has said it's car production
0:06:22 > 0:06:23is behind schedule again.
0:06:23 > 0:06:26The company has been struggling to incease the number of Model 3's
0:06:26 > 0:06:28that are rolling off the production line.
0:06:28 > 0:06:31It now aims to make 5,000 a week by early next year off.
0:06:31 > 0:06:35The vehicle is key to its ambition because it is more afforable
0:06:35 > 0:06:36than others at just $35,000.
0:06:36 > 0:06:38Tesla also announced it's biggest ever quarterly
0:06:38 > 0:06:45loss of more than $600m.
0:06:45 > 0:06:48The Anglo-Dutch oil giant Shell has announced a big rise in profits
0:06:48 > 0:06:51for the three months to September.
0:06:51 > 0:06:53It made just over $4bn and was well ahead of expectations.
0:06:53 > 0:06:56It reflects growing optomism in the oil business
0:06:56 > 0:06:59as well as the impact of cost cutting measures.
0:06:59 > 0:07:01The chief executive said it was evidence their turnaround
0:07:01 > 0:07:07strategy was working.
0:07:07 > 0:07:10A new study claims women around the globe may have to wait more
0:07:10 > 0:07:12than a century to achieve equality in the workplace.
0:07:12 > 0:07:14According to the poll by the World Economic Forum,
0:07:14 > 0:07:17the global gender gap has widened in the past decade and will take
0:07:18 > 0:07:19100 years to close.
0:07:19 > 0:07:22The research ranked 144 countries on the gap between women
0:07:22 > 0:07:24and men based on economic, health, education and
0:07:24 > 0:07:34political indicators.
0:07:35 > 0:07:42If you watch the show regularly, it's a big day for you today...
0:07:42 > 0:07:46There's a widespread expectation that the Bank of England,
0:07:46 > 0:07:47one of the world's most important central bank,
0:07:47 > 0:07:50will raise interest rates in a few hours' time.
0:07:50 > 0:07:52If they do that...
0:07:52 > 0:07:54It would be the first rise for ten years,
0:07:54 > 0:07:57in which time the UK as been recovering from the global
0:07:57 > 0:07:58financial crisis.
0:07:58 > 0:07:59Simon Gompertz reports.
0:07:59 > 0:08:02This could be a shock for people in millions of homes
0:08:02 > 0:08:03which are saddled with a variable-rate mortgage,
0:08:03 > 0:08:05homes like this one in Oldham.
0:08:05 > 0:08:07The owner, Lynn, has struggled financially ever since a car
0:08:07 > 0:08:08accident stopped her working.
0:08:08 > 0:08:12I am literally living - I wouldn't say on the bread line,
0:08:12 > 0:08:15but very, very close, and any hike in interest
0:08:15 > 0:08:20or supermarket bills affects me instantly.
0:08:20 > 0:08:23The Bank of England has to decide whether, with the economy growing,
0:08:23 > 0:08:27there is a case for keeping interest rates low.
0:08:27 > 0:08:30The Governor, Mark Carney, has already given hints that a rise
0:08:30 > 0:08:34is on the way.
0:08:34 > 0:08:39The bank's base rate was cut to 0.5% in the midst of a financial crisis,
0:08:39 > 0:08:43then to 0.25% after the EU referendum last year.
0:08:43 > 0:08:47The speculation is that it will be put back up to 0.5% again.
0:08:47 > 0:08:51I think, whether you are a saver or a borrower, I don't think
0:08:51 > 0:08:52the increase will be that significant now.
0:08:52 > 0:08:55But the likelihood is we'll get a series of increases,
0:08:55 > 0:08:59maybe two more over the next two to three years, so it will start
0:08:59 > 0:09:01to have a more material impact on our everyday lives.
0:09:01 > 0:09:04In the financial world, they are so convinced that a rate
0:09:04 > 0:09:07rise is on the cards that the pound has gone up,
0:09:07 > 0:09:10in the hope the money kept in the UK will give higher returns.
0:09:10 > 0:09:13So, if that doesn't happen, the markets will be caught
0:09:13 > 0:09:18on the hop.
0:09:18 > 0:09:23You will be all over that later, won't you?Yes, I will be in the
0:09:23 > 0:09:27city to gauge the reaction is to that, and how it will affect the
0:09:27 > 0:09:35pound and people's pockets.If it happens...Indeed.
0:09:35 > 0:09:37China is taking steps to boost foreign imports ahead
0:09:37 > 0:09:41of President Trump's visit next week.
0:09:41 > 0:09:43The trade relationship between the two heavyweights
0:09:43 > 0:09:45is expected to be a major topic of discussion.
0:09:45 > 0:09:48The US president has been strongly critical of China's massive trade
0:09:48 > 0:09:49surplus with America, blaming unfair trade practices
0:09:49 > 0:09:50including heavy tariffs.
0:09:50 > 0:09:52Our Beijing Correspondent, John Sudworth, joins us.
0:09:52 > 0:09:54Talk us through what China has announced ahead of Donald Trump's
0:09:54 > 0:09:58visit? These reports are coming from the Chinese Ministry of commerce.
0:09:58 > 0:10:03Basically saying that they are going to cut tariffs on a range of
0:10:03 > 0:10:11consumer products and boost bank lending for imports. The reason that
0:10:11 > 0:10:16the commerce ministry suggests is nothing to do with concern about
0:10:16 > 0:10:21what China's huge trade surplus is doing to other markets but there is
0:10:21 > 0:10:25concern about what the trade surplus means for its own consumers. There
0:10:25 > 0:10:31is a knock-on impact here, and an impact on inflation and they say
0:10:31 > 0:10:36that they are acting in the interests of allowing Chinese
0:10:36 > 0:10:42consumers to share a greater portion of national wealth.John Sudworth,
0:10:42 > 0:10:45many thanks.
0:10:45 > 0:10:46Asian shares inched higher.
0:10:46 > 0:10:49A relatively weak yen, a positive factor for Japanese exporters,
0:10:49 > 0:10:51helped lift the Nikkei.
0:10:51 > 0:10:53Sony shares added another 2.8% as the firm raised profit
0:10:53 > 0:10:56forecasts and announced plans to revive its robot pet dog.
0:10:56 > 0:11:03Chinese internet giant Alibaba was due to release its third quarter
0:11:03 > 0:11:07earnings after Asian markets closed, with investors watching
0:11:07 > 0:11:09closely to see if heavy investment has yielded further
0:11:09 > 0:11:15rapid revenue growth.
0:11:15 > 0:11:18Meanwhile, investors are braced for what many of them expect will be
0:11:18 > 0:11:21the Bank of England's first interest hike in more than ten years.
0:11:21 > 0:11:24On equities - oil giant Shell has reported a large rise
0:11:24 > 0:11:26in third-quarter profits after the energy giant was boosted
0:11:26 > 0:11:30by higher oil prices and increased production.
0:11:30 > 0:11:36It comes as the price of crude rose above 60 per barrel this week,
0:11:36 > 0:11:40its highest price for five months.
0:11:40 > 0:11:45Tesla's share price fell after it admitted production of its new Model
0:11:45 > 0:11:473 car is months behind schedule.
0:11:47 > 0:11:49In the US the Fed, as expected, kept interest rates unchanged.
0:11:49 > 0:11:52But all eyes will be on the confirmation of the next
0:11:52 > 0:11:57Fed Reserve chair widely expected to be Jerome Powell.
0:11:57 > 0:12:01Tech giant Apple will be reporting earnings on Thursday. We could hear
0:12:01 > 0:12:07more details about pre-orders for the new iPhone X that begins
0:12:07 > 0:12:11shipping on Friday. Investors will want to know about the company's
0:12:11 > 0:12:15outlook for the upcoming holiday season. Coffee giant Starbucks will
0:12:15 > 0:12:20be reporting their earnings, they face stiff competition from low
0:12:20 > 0:12:25priced food chains like McDonald's and more upscale food chains like
0:12:25 > 0:12:28Bluebottle. They are grappling with calling growth in the dominant
0:12:28 > 0:12:34market here in the USA. Finally, Canada's Aerospace pacemaker
0:12:34 > 0:12:39Bombardier will be reporting earnings, analysts are looking at
0:12:39 > 0:12:45more details for the decision to give a majority stake to your's
0:12:45 > 0:12:49Airbus, the news came after US officials slapped Bombardier with a
0:12:49 > 0:12:58300% tax for any C series plane coming into the USA.It is such a
0:12:58 > 0:13:00busy day today, I cannot stress that enough!
0:13:00 > 0:13:03Joining us is Jessica Ground, UK Equities Fund Manager at Schroders.
0:13:03 > 0:13:06I say that because we have the central bank news, John Rovman
0:13:06 > 0:13:10Powell as a possible nominee and aunts today and all of the earnings,
0:13:10 > 0:13:16apple to come later. What are you watching? What are you most
0:13:16 > 0:13:20interested in today?The expectations are key on all of these
0:13:20 > 0:13:25things, the expectation is that we have a 25 point bass rise from the
0:13:25 > 0:13:28Bank of England but people are not expecting interest rates to rise
0:13:28 > 0:13:31significantly after that. The key is we have the minutes and we
0:13:31 > 0:13:35understand better what people are thinking about in the future. John
0:13:35 > 0:13:43Rovman Powell is expected to be announced to leave the Fed... --
0:13:43 > 0:13:49Jerome Powell. He has been there for a while and as we have learned with
0:13:49 > 0:13:56Donald Trump, until something is signed, sealed delivered...We will
0:13:56 > 0:14:01be watching his Twitter feed!And the interest rates, I was reading a
0:14:01 > 0:14:05take, because it is widely expected that they will raise those rates, a
0:14:05 > 0:14:10lot of it been priced in. If they don't, that is where we could see a
0:14:10 > 0:14:15bigger move in response?People would be surprised. On one hand it
0:14:15 > 0:14:19is a doubling of rates to half a percent but the 25 base points were
0:14:19 > 0:14:24taken towards the end of last year in response to Brexit and the bank
0:14:24 > 0:14:32wanting to support the economy into that. As you say, it is a sign of
0:14:32 > 0:14:36strength when the bank feels that they can return rates to a more
0:14:36 > 0:14:40normal rate but if they feel like it is weak, that will be a negative
0:14:40 > 0:14:44surprise.Shall's share prices have barely moved this morning inspired
0:14:44 > 0:14:53birth strong results -- Shell.The key thing is not only their oil
0:14:53 > 0:15:00price but they are digesting their acquisition of British Gas. BT. That
0:15:00 > 0:15:04will change your as is quite significantly. It's great that it
0:15:04 > 0:15:09seems to be going well. There are quite a lot of investors that would
0:15:09 > 0:15:14go well and it is quite in line with expectations.Thank you. Jessica
0:15:14 > 0:15:18will join us later on other stories like Tesla, we will talk about that
0:15:18 > 0:15:19soon.
0:15:19 > 0:15:23Still to come:
0:15:23 > 0:15:26We get the inside track on one of the biggest software companies in
0:15:26 > 0:15:31the world. How it keeps banks and transport systems running, despite
0:15:31 > 0:15:37offering software solutions for free.
0:15:37 > 0:15:42BT Group reports a 14% drop in second-quarter adjusted earnings
0:15:42 > 0:15:45BT Group reports a 4% drop in second-quarter adjusted earnings
0:15:45 > 0:15:47to £1.81 billion for the three months to end of September.
0:15:47 > 0:15:51But the company's earnings still came in ahead of target,
0:15:51 > 0:15:55despite struggles to turn around its Global Services unit.
0:15:55 > 0:15:58Our business correspondent, Theo Leggett, is in our
0:15:59 > 0:16:05Business Newsroom with more.
0:16:05 > 0:16:10Talk us through it.It is a mixed bag but generally disappointing
0:16:10 > 0:16:17results from BT. A key problem is in its global services unit, the unit
0:16:17 > 0:16:21that provides outsourced network IT infrastructure for companies and it
0:16:21 > 0:16:24seems the trend away from outsourcing is affecting that the
0:16:24 > 0:16:30mission. It has been weighing on BT's results for a while. In this
0:16:30 > 0:16:36quarter profits were down 40% and sales down 10%, so that is the weak
0:16:36 > 0:16:43area. Some concerns over BT's TV business despite the fact it has
0:16:43 > 0:16:48invested in sports rights, Premier League sports rights. It only added
0:16:48 > 0:16:537000 new subscribers during the quarter, compared to 63,000 added
0:16:53 > 0:16:58last year. There is a bit of concern there. But on the other hand the EEE
0:16:58 > 0:17:01mobile division has been doing well and that has offset business in
0:17:01 > 0:17:07other parts of the company.And talk this morning about BT considering
0:17:07 > 0:17:12what to do with its pension scheme. There were some people expecting BT
0:17:12 > 0:17:17to announce the closure of its pension scheme. That has not
0:17:17 > 0:17:21happened, it says it is still in discussion with its unions. But it
0:17:21 > 0:17:26still has a deficit that is a problem. What we are likely to see
0:17:26 > 0:17:30is some form of closure of its existing scheme, or restrictions to
0:17:30 > 0:17:36it, and a new scheme coming in. At the moment those talks are still
0:17:36 > 0:17:43ongoing.Thank you very much indeed.
0:17:43 > 0:17:48There is so much news coming out all the time and it is on the business
0:17:48 > 0:17:52live page. Also Morrisons is stepping up its competitiveness and
0:17:52 > 0:17:55it has just released its like-for-like sales for the 13 weeks
0:17:55 > 0:18:02to the end of October. Its like-for-like sales represent 2.5%,
0:18:02 > 0:18:08but it is talking about the impact of a lower sterling on its profits,
0:18:08 > 0:18:12making its margins really squeezed. It is tough out there for retailers
0:18:12 > 0:18:23on the high street, especially supermarkets.
0:18:23 > 0:18:28Our top story, Facebook's profits soared in the three months to
0:18:28 > 0:18:33September, it brought in $10 billion from advertising. It says it will
0:18:33 > 0:18:37spend more on security over scrutiny over how big was exploited during
0:18:37 > 0:18:38last year's US election.
0:18:38 > 0:18:40over how big was exploited during last year's US election.
0:18:40 > 0:18:44A quick look at how markets are faring.
0:18:44 > 0:18:50Not giving as much direction, but those are the numbers. They are
0:18:50 > 0:18:52treading water ahead of that decision from the Bank of England in
0:18:52 > 0:18:53London.
0:18:53 > 0:18:55decision from the Bank of England in London.
0:18:55 > 0:18:57Now, we're going to be talking about open source technology.
0:18:57 > 0:19:00Put very simply, this is software which is free for anyone to use.
0:19:00 > 0:19:03Red Hat provides products based around the world's most popular open
0:19:03 > 0:19:05source platform Linux.
0:19:05 > 0:19:07It offers bespoke software such as operating systems,
0:19:07 > 0:19:10cloud computing platforms and software development.
0:19:10 > 0:19:13And if this sounds like the sort of thing for small or startup
0:19:13 > 0:19:16companies, you may be surprised to learn that Red Hat helps more
0:19:16 > 0:19:23than 90% of Fortune 500 companies.
0:19:23 > 0:19:28Jim Whitehouse is CEO and President of Red Hat.
0:19:29 > 0:19:35Good morning, welcome. We have explained in a very simple way what
0:19:35 > 0:19:40you do, could you elaborate on that? We take software that is often
0:19:40 > 0:19:48developed by Google and Facebook, things like Alexa and hey, Google,
0:19:48 > 0:19:51that those companies allowed to be open so the source code is freely
0:19:51 > 0:19:56available and we take that and apply that to a bank because the same
0:19:56 > 0:20:01technology can do fraud detection. We take this open source software
0:20:01 > 0:20:07and make it secure and reliable for large enterprises to use.What you
0:20:07 > 0:20:10are saying our big organisations and some of them are old and traditional
0:20:10 > 0:20:16and some are not so. You say, yet is this software, we will make sure it
0:20:16 > 0:20:19works for you, it is secure and it does what it needs to do and it
0:20:19 > 0:20:26makes you better and does not harm you?Exactly. When these web
0:20:26 > 0:20:30companies write the software it is not built for enterprises in mind
0:20:30 > 0:20:34and we take the software and make sure there are no security issues,
0:20:34 > 0:20:40we offer tech support and we life-cycle it. We take this
0:20:40 > 0:20:43information and make it consumable for enterprises.And these clients
0:20:43 > 0:20:48pay for that service and that is how you make money.
0:20:48 > 0:20:54We were asking for tweets about open source tech and tech support and
0:20:54 > 0:20:59people are happy to pay for this premium model where you get
0:20:59 > 0:21:03something for free and pay extra for a premium service. Linda says, why
0:21:03 > 0:21:08would I pay somebody to tell me to switch it on and off again? Maybe it
0:21:08 > 0:21:15must be the software. Someone else says, I know how to Google, I do not
0:21:15 > 0:21:19need tech support. But one person said, I will not pay
0:21:19 > 0:21:26to have a person tell me how to make your product work. Explain why to
0:21:26 > 0:21:33your clients this is critical.We have free versions of all of our
0:21:33 > 0:21:37software that any consumer can download and use. But if you are a
0:21:37 > 0:21:42stock exchange or you are running a nuclear submarine, some of the most
0:21:42 > 0:21:46mission-critical applications out there, you are not plugging it out
0:21:46 > 0:21:52and in again, so we have to make sure it works 100% of the time. We
0:21:52 > 0:21:56are paid for production applications like trading platforms and billing
0:21:56 > 0:22:00systems which you cannot take down. You have been running the company
0:22:00 > 0:22:05for ten years and prior to that you were with D, you were the chief
0:22:05 > 0:22:09operating officer there when it was going bankrupt and you were there
0:22:09 > 0:22:14for some time. This is such a different job. Your skill set moving
0:22:14 > 0:22:20from that to this, talk us through that, it was a big change.It was a
0:22:20 > 0:22:23different type of situation because you are trying to drive efficiency
0:22:23 > 0:22:31across a big global business. Legacy airlines, big issues. Indeed, but
0:22:31 > 0:22:36Read Hack is all about innovation. But leadership and building a team,
0:22:36 > 0:22:42building a culture and driving direction, those across enterprises.
0:22:42 > 0:22:46In technology are a lot of companies rely so much on a founder's vision
0:22:46 > 0:22:50that they have trouble scaling and one of the things I think
0:22:50 > 0:22:55leadership, not necessarily me, it can be helpful in some of these
0:22:55 > 0:22:58newer tech companies to help them build their culture as they go
0:22:58 > 0:23:04global.Do you think companies so much in the news right now like
0:23:04 > 0:23:11Facebook, in some ways some of those companies are lacking that? They are
0:23:11 > 0:23:14growing extremely quickly exponentially globally, and yet they
0:23:14 > 0:23:19have not got that skill set say somebody who has worked in other
0:23:19 > 0:23:26areas of business elsewhere, that they may bring.I do not want to
0:23:26 > 0:23:30speak about specific companies, but people who run small companies and
0:23:30 > 0:23:35founders are great at getting companies to a certain size. It is a
0:23:35 > 0:23:40different skill set to run a 50,000 company than a 5000 present company.
0:23:40 > 0:23:46A person running a 5000 company would fail running a 50,000 company.
0:23:46 > 0:23:50Bill Gates recognised that and brought in a team as Microsoft
0:23:50 > 0:23:55groove. Great companies learn and their founders learned at some point
0:23:55 > 0:23:59that it is time to recognise what you are good at and bring in others
0:23:59 > 0:24:03to augment it. Some companies have been successful and done that and in
0:24:03 > 0:24:11others the founder stays too long. Your name is Jim Whitehurst, not Jim
0:24:11 > 0:24:14Whitehouse, you were too polite to tell us. Thank you for coming in.
0:24:14 > 0:24:16Thank you for coming in.
0:24:16 > 0:24:19In a moment we'll take a look through the Business Pages but first
0:24:19 > 0:24:22here's a quick reminder of how to get in touch with us.
0:24:22 > 0:24:25The business live page is where you can stay ahead with all the business
0:24:25 > 0:24:30breaking news. We will keep you ahead with insight and analysis from
0:24:30 > 0:24:35the BBC's team of editors from around the world. Get involved from
0:24:35 > 0:24:41the BBC business live web page and on the website. At Twitter we are on
0:24:41 > 0:24:47BBC business and you can find us on Facebook. Business live on TV and
0:24:47 > 0:24:51online whenever you need to know. We are running out of time.
0:24:51 > 0:24:53We are running out of time.
0:24:53 > 0:24:55Let's see what other stories are being talked
0:24:55 > 0:24:58about on social media.
0:24:58 > 0:25:03Let's kick off with Tesla, Jessica. Concerned about production levels
0:25:03 > 0:25:08and about how much the company is spending. What is interesting is the
0:25:08 > 0:25:14shares are off and the debt as well. People are thinking about leveraged
0:25:14 > 0:25:19and it is hard to build a car maker from scratch.And delay on the model
0:25:19 > 0:25:24three-car, there is so much anticipation, everybody wants this
0:25:24 > 0:25:29car, yet it cannot seem to deliver right now.Scaling up the production
0:25:29 > 0:25:32was always going to be complex and issues around the batteries as well
0:25:32 > 0:25:39are causing delays.I was fascinated by Tesla because Elon Musk is
0:25:39 > 0:25:43raising money over and over again and yet this is a company that has
0:25:43 > 0:25:48still got a lot of questions hanging over it.It is significant that the
0:25:48 > 0:25:55bond is traded off and people are doubting whether profitability will
0:25:55 > 0:25:59be. Tesla can still be a success, but there are questions over the
0:25:59 > 0:26:03equity.It has been good to have you here. Goodbye.