03/11/2017 BBC Business Live

This is Business Live

from BBC News with Susannah

Streeter and David Eades.

Firing on all cylinders.

Apple's boss celebrates another set

of huge profits and says there's

better still to come.

Live from London, that's our top

story on Friday the 3rd of November.

With huge queues for the new iPhone,

which has just gone on sale,

Apple is on course to become

the world's first listed

billion dollar company.

Also in the programme...

The new banker in chief

is Jerome Powell.

As Donald Trump picks a new chair

for the US Federal Reserve,

we'll assess what it means

for the rest of the world.

And this is the situation in Europe

as the markets have opened. The FTSE

100 in particular on its March

upwards.

And whilst Twitter and Facebook

are amongst the other big tech firms

to report good numbers this week,

we'll ask our Technology

Correspondent, Rory Cellan-Jones,

if the little guys can ever compete.

And we'll get his views

on all the other big

stories of the week.

As Donald Trump is matched with your

account is shut down by an employee

on the last day of work, we want to

know what you have done as a parting

gesture on your last day. Nothing

too rude please. Use the hash tag,

business live.

Hello and welcome to Business Live.

We start with Apple.

It's already the world's most

valuable public company -

worth getting on

for $900 billion and counting.

Now its shares have hit

a new record high -

after it revealed a big jump

in profits and forecast

strong sales for the

all-important holiday season.

Let's show you the details.

Apple made a profit of $10.7 billion

in the three months

to the end of September -

up around 19% on the same

time last year and well

above what investors were expecting.

At the heart of it

all is the iPhone.

Apple sold over 46 million

of them across the world

in the three month period -

up 2.6% on last year.

It says sales growth was in "double

digits" in many emerging markets.

But it's the next quarter that

has investors really

excited...

Because of this.

The new iPhone X is released today.

Apple has said demand has

been "off the charts"

and is forecasting record revenues

for the holiday season.

The big problem is

making enough of them.

Ben Stanton is a tech

analyst at the market

research firm, Canalys.

Thank you for joining us and we will

get back in a second. The best part

of the $11 billion for the last

quarter, it is all going the right

way, selling loads of handsets. We

cannot all be positive. The iPhone

eight is not necessarily really

breaking all the records.

That is

correct. IPhone eight has come in

slightly below what Apple was

expecting. The 10.5 million units. A

low Bobby saw last year for the

iPhone seven. There were a few

issues here. Is the same as many

previous generations of iPhone

customers are not as confused about

that device and lots of the same as

many previous generations of iPhone

customers are not as confused about

that device and lots of them X.

Is

it a step change? Is it a step

change that people wanted to be?

Many customers have been waiting for

three years for a new design

language to get them excited and

that's what the iPhone X brings. We

are expecting around 25 million,

maybe 40 million less quarter. What

Apple did yesterday was alleviate

some of the iPhone supply concerns

around iPhone X. We expect Apple to

sell every iPhone exit can make in

the next six months, maybe longer.

It is not that they would have

failed to pre-empt the interest in

the product, it is more about the

fact there is new stuff.

There are

some very complex components in the

device. Components specifically with

the facial scanning technology in

the device that have never been

produced to the tune of tens of

millions of units before.

Manufacturers are having a problem

with that. We expect a little bit of

demand to spill from Q4 over into

Q1. I do not think that is as much

of an issue of tech headlines have

been speculating in the last few

months.

Apple is doing particularly

well, better than predicted, isn't

it? Sales are up even though iPhone

X is exciting.

China is an example

of where Apple had a really good

quarter. IPhone 6 was a big hit. Six

and seven words the Mrs. It has a

huge base of iPhone 6 users who are

ready to upgrade to the latest and

greatest Apple tech. Some of them

have decided to position themselves

lower down the Apple portfolio.

We

will leave it there. Thank you.

Let's take a look at some of

the other stories making the news.

Twitter is investigating how

President Trump's account

was deactivated for 11 minutes.

It's blaming an employee, who did

this on their last day at work.

The downtime doesn't

seem to have phased him.

He was back online tweeting

about tax cuts to his more than 41

million followers soon after.

Franco-Dutch airline Air France-KLM

says improving price trends

helped its third quarter profits.

The company reported

operating profit up 38.7%

to $1.2 billion, way

above analysts expectations.

Like other European airlines it

benefited from strong summer demand.

TV and mobile infrastructure firm

Arqiva has "postponed" plans

for a 6 billion pound listing

on the London Stock Exchange.

The firm blamed IPO

market uncertainty.

The withdrawal comes on the same day

as food supplier Bakkavor also

cancelled its listing plans.

Let's go to Asia now -

and US President Trump is preparing

to embark on his longest trip abroad

so far in his presidency -

starting in Japan on Sunday

and ending in the Philippines.

He will spend two days

in Japan meeting with prime

minister Shinzo Abe.

So, what are some of the issues

they will be talking about?

Stephen McDonell is in Toyko for us.

Just how important are these talks

for Japan, in particular?

You know,

really, there are a lot of people in

Japan and the United States who

would love this visit to be focusing

around trade. I think the concern is

it will all be swamped by North

Korea. But, for example, Japan is in

favour of getting together at the

TPP 11, the transpacific partnership

without the US involved. The hope

is, according to the Japanese

government, everybody would get

involved and somehow get the

initiative from the Obama

Administration going again and this

would drive the US back into the

TPP. By the same token, they do not

want to embarrass Donald Trump on

his business, so I'm not sure how

hard they will be pushing for it.

The other bingo will be discussing

is the possibility of a free trade

between the two countries. I don't

think there will be going into any

detail but it could be kicked off.

The administrations in both

countries would be pretty happy that

the talks at least are under way.

Thanks, Stephen.

Let's check in with

the financial markets now.

Japan has been closed for a holiday

- elsewhere Asian shares have held

pretty steady ahead of key US jobs

figures for October

which are out later.

In the US - the Dow Jones closed

at another record high,

partly thanks to relief that

President Trump has

chosen Jerome Powell -

considered to be a safe pair

of hands to run the Federal Reserve

- more on that in a bit.

Let's take a look at what's been

happening in Europe.

Yesterday, in the UK,

the FTSE posted its biggest rise

in three months yesterday,

after sterling plunged

after the Governor of the Bank

of England said he'd expect further

interest rate rises to be limited.

The FTSE is continuing its march

upwards. The Dax in Frankfurt is

also up.

So, that's the picture in Europe.

Michelle Fleury has

the details about what's ahead

on Wall Street Today.

It is jobs Friday. Wall Street will

be watching to see if last month's

in hiring was a one-off or the start

of a new trend. Labor Department

figures are likely to show that

companies created more than 300,000

jobs in October after falling 33,000

in September. The unemployment rate

is affected to hold steady at 4.2%.

Another figure worth watching if the

latest trade numbers. Donald Trump

often complains about America Bosman

trade deficit with other countries.

The commerce Department is expected

to report the trade deficit widened.

Apple's iPhone ten goes on sale was

it comes a day after the tech giant

says it may $10 billion in the last

quarter was it pleasantly surprised

investors by raising its revenue

forecast for the upcoming holiday

season.

Joining us is Shaun Port,

chief investment officer at Nutmeg,

the online investment manager.

Thank you no match ball coming in.

Let's focus on Jerome Powell, to

start off with. -- for coming in. It

is a bit of a setback for Janet

yelled. She has been considered a

really safe pair of hands through

this period and will not have a

second term. Many would say that is

being quite unfair.

It is really

thought that she has done a great

job over the last four years. You

have to go back to 1979 to see the

last time this happened. How is the

continuity candidate. He has been at

the Fed for the last five years. An

expert in banking regulation but not

an economist.

We know it is a very

similar sort of style. Are there

differences? NEC areas in which he

might be a little bit more aid

Donald Trump man. -- can you see

areas?

The real test will be next

year. The Trump administration

pushing tax cuts. That will put them

under a lot of pressure to raise

interest rates faster than a lot of

people would expect. The key test is

next year. He is an expert in

banking regulation and may soften

the regulations.

That is what I was

leaning to foot of Donald Trump

would probably like that kind of

move. Maybe is a bit more in the

direction of what he would like and

trying to manage Yelland might have

been harder.

He is concerned about

financial stability, particularly as

the Fed is raising interest rates.

It was John Taylor who was also one

of the front runners he really

advocated much higher rate rises,

much steeper and much faster. Jerome

Powell is more of a gradual

approach.

Two or three hikes. US

economy is doing quite well but

inflation is quite soft. If we

started to seek wage is going up,

things would be different.

A key

jobs figure out later. What are you

expecting to be shown?

At least

300,000. We must bounce back from

the weak job growth we had last

month that it is the most important

indicator we have with the UK, the

US and Japan. I have been looking

for the last 25 years which shows

the UK economy is doing well and

unemployment is very low. Is Donald

Trump Lucky? Coming in with a very

strong economy and a very strong

stock market. Also, global growth is

getting stronger. The backdrop is

really good but where you go next is

harder. We hard to maintain the

strong growth into next year and the

year after.

You talk about the

bounce back from the hurricanes and

the storms. To what extent do think

not have an impact on the gross

figure we saw in the US?

It has not

been too bad. Car sales have been

strong because people need to

replace the cars which have been

badly damaged. A bit of a bounce but

quite high business confidence. A

lot of things are working for the US

economy and things are firing on all

cylinders.

We'll will be coming back

to talk through the papers and all

about how the Twitter account of

Donald Trump was suspended. You have

to smile, haven't you?

It has been a big week for Apple,

Facebook and Twitter. We're going to

get the inside track with our

technology correspondent. This is

Business Live on BBC News.

The Deputy Governor of the Bank

of England has told the BBC

that the rise in inflation

since Brexit was one of the main

reasons for yesterday's decision

to increase interest rates

for the first time in a decade.

Ben Broadbent was asked whether that

rise combined with the wage

squeeze would cause many

people economic pain.

There will be some.

I think it's, it's one part

of how the policy works.

Equally one should

keep this in context.

Around a third of

households have owner

Around a third of households have

owner occupied mortgages.

Interest payments on debt

in aggregate for households are

lower than they ever

been relative to income.

Our Economics Correspondent Andrew

Walker is in the Business Newsroom.

Interestingly, after those comments

from the Bank of England governor

came through, Sterling plunged, so

is this Mark Carney talking too much

for the markets?

That's an

interesting way of putting it. They

are always very keen to get some

guidance from the Bank of England

officials about what the future

prospects are for interest rates,

and he made it very clear that there

are likely more in the pipeline. The

bank's expectation that its key

inflation target, the Central thing

it's trying to achieve, will be

achieved, more or less, over the

next couple of years, on condition

that it makes some more interest

rate rises. He was suggesting that

we can't really expect there to be

more than two of these equally small

rises, and I guess what the market

thought was, well, maybe we might

have been expecting a bit more but

this is at the lower end of what

could really reasonably be expected

from the Bank of England's guidance

about the way it's going to be

setting rate in the next year or

two.

Thank you very much. On that

update on the comments from the

deputy governor of the Bank of

England. News of another story which

has been covered on the Today

programme, the national trading

standards warns that thieves could

steal personal information from

connected appliances, anything from

smart fridges to TVs. It thinks it

has prevented £127 million of losses

over the past year. Wonder what's

there. -- that is one to watch,

there.

Our top story, Apple's shares have

hit a new high after the boss Tim

Cook said the company is firing on

all cylinders. They reported a big

jump in profit of the new iPhone X

goes on sale with those huge queues.

They are queueing down Regent

Street, to some extent!

A quick look at how

markets are faring.

Tech was a real boost on Wall Street

yesterday, the FTSE is continuing

upwards, the highest level in three

months after those comments from the

Bank of England governor.

And now let's get the inside track

on another busy week of tech news.

As well as good numbers coming out

from Facebook, Twitter and Apple.

Meanwhile Bitcoin has

surged to new highs.

Our tech guru is Rory Cellan-Jones.

I was just shouting across to you,

iPhone X, they are determined that

we caught it I think ten, but you

can call it whatever you want!

--

Dave want you to call it iPhone ten.

So why are they saying that?

They

are tried to say, it's ten years

since the first one, its heritage.

Five, six, seven, eight, X, it

doesn't work

Five, six, seven, eight, X, it

doesn't work!

We have had some not great so great

results for some firms like go pro,

smaller firms, can the Eveready

compete?

Go pro and FitBit are the

challenger companies all in the last

decade, they were born, but what has

really struck me is that we have had

results from the Giants, Google,

Apple, Microsoft, still punching in

there, they have had extraordinary

results, making money on historic

towns and raising questions about

how powerful these countries are.

Meanwhile, go pro saw its shares

tumble, it makes action cameras, it

exploded onto the market couple of

years ago, its shares soared, it has

been on a downward path with China

and so on, this time it had better

results but it warned that coming

up, prospects were not quite as good

as investors hoped and a brief rally

in stocks came to an end with the

jolt. FitBit finds itself trying to

compete against a giant like Apple,

fitness band that is very popular

but is now making big losses and

struggling for the future, saying

not about the wristband, it's about

all of the data we have collected.

That's interesting, is that about

Facebook knocking them down? If you

go and have a look for a FitBit, you

will see a plethora of other

opportunities, you can seek other

things and that's just the market.

It's about trends and how they play

out. There was a huge trend in

fitness bands for while, and we

quickly found its not such a big

market, similarly for GoPro, there

was a huge trend in action cameras,

maybe everyone has got an action

camera.

You do if you are a cyclist

in London!

Some of those companies

are not delivering on the early

overexcitement around them.

Talking

about new pretenders, talking about

Bitcoin, the crypto currency's

values soaring yet again, Sam people

said couple of years ago that it was

going to be a bubble, is it still

bubble? We have got the Chicago

mercantile exchange, CME, saying

it's going to consider offering

futures contracts.

That's what's

caused the latest inflation in this

product. Here's a confession, I've

got a stake in this and I ought to

be open about this. 18 months ago, I

was doing a story about Bitcoin so

thought I better get some. I put $60

into a cash machine in London and

got Bitcoin in exchange, and I look

at it every day, my stake is now, I

got $60 worth and today it's worth

$1327. If I could get it out.

I saw

you doing that, I remember that, and

you had enough trouble sorting it

out at the time so you have got to

get it back.

There are plenty of

traders who say this is difficult

because on these Bitcoin exchanges,

it's not at all transparent whether

there is fraud going on. So how can

these be traded on the CME, say?

You

have got a war going on between the

establishment, the finance

establishment which has been very

wary of it, and we have had big

figures are saying don't touch it

with a barge pole, but the down

appear to be breaking. That

announcement out of Chicago was very

significant. People saying, yes,

it's an asset that people want so

we've got to start trading it.

Briefly, it's not your job to

promote or not, but you did it, you

see the increase in the value of

this, what would you say to people

who are thinking, I wonder if I

should have ago?

I feel completely

uneasy about the whole thing. It

feels like the tulips craze in 1770

Holland, and the line from the Wall

Street crash, when the bellboy in

the elevator starts to be new

shares, be worried. My

physiotherapist started asking me

about it and he is a smart guy, I

said, be wary!

And if you want more of the latest

tech news you can catch Rory's

'Tech Tent' programme on BBC

World Service radio at 1500gmt ,

and if you miss it you can download

the podcast from our website,

just search for BBC Tech Tent.

If you thought about changing the

way you travel to cut back on the

amount of pollution, look at this.

Robert and Barney Swan are a father

and son team and are trying

to become the first team to use

renewable energy to power their way

to the North Pole.

We liked the vapour. This is the

first renewable energy polar

expedition ever made. We have Nasa

ice melt is being driven by solar,

we have passive ice melt is, as a

back-up, we have these amazing

advanced biofuels that have come all

the way from Bangalore in India, so

when all is lost, we can be warm and

put our food to stay alive.

Renewable technology is not only

viable but it can power for men 600

miles through the world's are

shipped condition. 16 days in a tent

with anyone challenging but your

father, it comes with a lot of

weight.

Flexibility, some training, and the

fact that I really inspired and so

lucky to be going with my son.

We were asking on the refection of

what happened to Donald Trump's that

account which was suspended for 11

minutes because someone on their

last date in Twitter decided they

would take it off, we have been

asking you for your views.

James

says, I gave every customer I served

my staff discount on 24 month phone

contracts on my last day. And this

says, I just said goodbye to

co-workers and left peacefully to

continue my life.

We did get more

than two but the majority were not

able to be repeated! We will have to

leave it at that. Let's have a look

at the other business stories.

Let's

talk about this story in particular,

have you ever made a parting gesture

on your last day at work?

I've

always left quietly on good terms,

you have got to keep good contacts,

it reminds me of the HMV incident

when someone was live tweeting the

mass redundancies. Twitter is such a

powerful tool, people can

communicate real-time difficult

moments for staff leaving.

It still

seems staggering that one person can

take off, OK, albeit one Twitter

account but one with 41.5 million

people following the most powerful

man in the world.

It's surprising

there is not control about that.

The

recognised but did not apologise,

interesting. That's it for now,

goodbye.