0:00:15 > 0:00:16This is Business Briefing.
0:00:16 > 0:00:21I'm Sally Bundock.
0:00:21 > 0:00:22More cash and more controversy.
0:00:22 > 0:00:25Facebook unveils record profits and vows to keep a closer eye
0:00:25 > 0:00:26on its content.
0:00:26 > 0:00:28Plus, the new face of the Fed.
0:00:28 > 0:00:31He's set to be the world's most powerful central banker,
0:00:31 > 0:00:41but will Jerome Powell carry on where Janet Yellen left off?
0:00:41 > 0:00:42And here are the markets.
0:00:42 > 0:00:45Asian shares are higher after the Fed kept interest rates
0:00:45 > 0:00:48unchanged and said the US economy is growing at a "solid pace"
0:00:48 > 0:00:56despite Hurricanes Harvey and Irma.
0:00:56 > 0:01:00But some are tiring, and we will explain why that is.
0:01:11 > 0:01:13We start with the world's biggest social network.
0:01:13 > 0:01:15It keeps getting bigger, more profitable, and more controversial.
0:01:15 > 0:01:18Facebook has announced record profits and another big jump
0:01:18 > 0:01:18in the number of people using it.
0:01:18 > 0:01:22That will only fuel the debate about about the power of the network
0:01:22 > 0:01:25and the content that appears on it.
0:01:25 > 0:01:26Let's show you some of the details.
0:01:26 > 0:01:29Facebook made profits of $4.71 billion in the three months
0:01:29 > 0:01:32to September, up 80% on the same time last year,
0:01:32 > 0:01:37as advertisers spend ever more cash.
0:01:37 > 0:01:41Well over two billion people log onto Facebook at least once a month,
0:01:41 > 0:01:43more than a quarter of the world's population.
0:01:43 > 0:01:45It's up 16% over the past year.
0:01:45 > 0:01:47With this vast reach of course comes growing scrutiny,
0:01:47 > 0:01:50for example, over its role in the US election.
0:01:50 > 0:01:52Earlier in the day, Facebook admitted to a Congressional hearing
0:01:53 > 0:01:56that political content originating from Russia was seen by 126 million
0:01:56 > 0:01:57people, a huge chunk of the electorate.
0:01:57 > 0:02:00Its chief lawyer said the company was sorry and would learn
0:02:00 > 0:02:13from its mistakes.
0:02:13 > 0:02:14None of this has put investors off.
0:02:15 > 0:02:17Facebook's share price has hit new record highs this week,
0:02:17 > 0:02:23valuing the company at over $530 billion.
0:02:23 > 0:02:26It pains us as a company, it pains me personally to see
0:02:26 > 0:02:27that we were...
0:02:27 > 0:02:30..that our platform was abused in this way.
0:02:30 > 0:02:33People in this country care deeply and what about issues of public
0:02:33 > 0:02:36concern and it's one of the strengths of our country that
0:02:36 > 0:02:46people are so willing to speak freely about them.
0:02:46 > 0:02:49The fact that foreign actors were able to use our platform
0:02:49 > 0:02:53to exploit that openness, is a deeply painful lesson for us,
0:02:53 > 0:02:57and one we are focused on learning from going forward.
0:02:57 > 0:03:02He said deeply painful many times.
0:03:02 > 0:03:05With me is James Erskine, the director of social media
0:03:05 > 0:03:06marketing consultancy, Social Circle.
0:03:06 > 0:03:10It is nice to see you. It is an interesting day. Facebook coming out
0:03:10 > 0:03:15with strong robust earnings, going strength to strength, and yet we
0:03:15 > 0:03:21hear the lawyer saying how deeply painful it is. What do you make of
0:03:21 > 0:03:27it?It is funny you talk about Facebook as being controversial,
0:03:27 > 0:03:34even though it is the old timer of social media. You mentioned many
0:03:34 > 0:03:40numbers. A few more fascinate me. One is 6 million advertisers are
0:03:40 > 0:03:44currently live on the Facebook platform. It stands to reason why it
0:03:44 > 0:03:48is profitable. In order to understand where it is going in the
0:03:48 > 0:03:55future, you have to look at its past. It is part of the duopoly.
0:03:55 > 0:04:02Revenue goes to Facebook or Google. It is quite predatory, at least in
0:04:02 > 0:04:06the past. Classified advertising is going that way. Another thing is
0:04:06 > 0:04:14look at the acquisition. Instagram in 2012. It does what it is doing in
0:04:14 > 0:04:18a business sense. In a content sense, that is where it is coming
0:04:18 > 0:04:22under close scrutiny. That is an exciting challenge.Exciting, or a
0:04:22 > 0:04:28big headache? How does it police itself and how does it do that
0:04:28 > 0:04:32effectively enough so it is not regulated via another authority?It
0:04:32 > 0:04:38is really tough, that is what with a first. It has always had a position
0:04:38 > 0:04:46where it is a platform. We work with creators around the world to look at
0:04:46 > 0:04:50how they make use of different social networks. That is what we do.
0:04:50 > 0:04:54We see how people engage on Facebook. But how does it police
0:04:54 > 0:05:00itself? The first line of its statement around results were about
0:05:00 > 0:05:05increasing another 10,000 journalists. We have to look at new
0:05:05 > 0:05:10products as well. They very cleverly have new products around creators
0:05:10 > 0:05:16and video. Now it is specifically a mission in its own video content. So
0:05:16 > 0:05:23I think it has more shaky ground to stand on.Despite efforts, do you
0:05:23 > 0:05:27think it will be regulated anyway. And not just Facebook, Google and
0:05:27 > 0:05:31Twitter?It will be tough to regulate it because of the
0:05:31 > 0:05:40incredible amount of traffic. If it democratises, it will be strong
0:05:40 > 0:05:44enough to say it is up to the community to police it. Whether you
0:05:44 > 0:05:48agree or not that, that is another question.Thank you for your time
0:05:48 > 0:05:54this morning. We will dig into that during the newspaper talk. And now
0:05:54 > 0:06:02we will stay with the US.
0:06:02 > 0:06:04Later today, President Trump will name the successor
0:06:04 > 0:06:07to Janet Yellen as head of the US Federal Reserve when her term
0:06:07 > 0:06:08ends in February.
0:06:08 > 0:06:11Several reports say he has settled on Jerome Powell ,
0:06:11 > 0:06:12a current Fed Governor.
0:06:12 > 0:06:14And as Michelle Fleury reports, that will mean continuity.
0:06:14 > 0:06:18A new man at the Federal Reserve will be seen as representing
0:06:18 > 0:06:21continuity with outgoing chair Janet Yellen. That should calm any jitters
0:06:21 > 0:06:28from investors who more than anything want stability, as they
0:06:28 > 0:06:34hate unexpected change. Jerome Powell is widely assumed to have if
0:06:34 > 0:06:42you are similar to Janet Yellen's. Things should be the same, needing
0:06:42 > 0:06:46more gradual rate rises and a winding down of the Federal Reserve
0:06:46 > 0:06:51asset pile which it accumulated in an economy ravaged by the financial
0:06:51 > 0:06:56crisis. What is less clear is whether Jerome Powell will have the
0:06:56 > 0:07:02same approach to the other big job of regulation. He spoke in favour of
0:07:02 > 0:07:07loosening rules for the banks put in place after the crisis by the bank.
0:07:07 > 0:07:12What is unknown is how he will manage relations with the president
0:07:12 > 0:07:16about to appoint him. That is Michelle Fleury who was extremely
0:07:16 > 0:07:22busy right now. That nomination news is expected to come before Donald
0:07:22 > 0:07:27Trump goes to Asia. He has the big trip. He will go to China. China
0:07:27 > 0:07:34ahead of that is taking steps to boost for imports. We will speak to
0:07:34 > 0:07:43Rico Hizon. What has China announced ahead of his arrival?Six days to go
0:07:43 > 0:07:46before Donald Trump arrives in Beijing. China is making some moves
0:07:46 > 0:07:52to appease Donald Trump! Beijing will be lowering tariffs when
0:07:52 > 0:07:56importing consumer products and stepping up banking finance for
0:07:56 > 0:08:02imports. Details of what products are affected are not provided. By
0:08:02 > 0:08:08China, as everyone knows, it has a vast trade surplus and has been
0:08:08 > 0:08:13accused of countries like the US of protecting domestic companies with
0:08:13 > 0:08:17unfair trade practices like high import tariffs. Today, Donald Trump
0:08:17 > 0:08:23called the trade deficit between the two countries embarrassing. He also
0:08:23 > 0:08:28described the trade gap as horrible. Official figures reveal America has
0:08:28 > 0:08:32imported four times the amount of goods from China banned exports, so
0:08:32 > 0:08:44far this year at least the pit hopefully. -- hopefully he will be
0:08:44 > 0:08:46appeased.
0:08:46 > 0:08:50Thank you.
0:08:50 > 0:08:52Now, let's brief you some other business stories.
0:08:52 > 0:08:56The Bank of England is set to deliver one of the most closely
0:08:56 > 0:08:58watched interest rate decisions since the financial crisis.
0:08:58 > 0:09:00Economists and investors are expecting the first increase
0:09:00 > 0:09:03in a decade, taking the main interest rate to 0.5%
0:09:03 > 0:09:09from its record low of 0.25%.
0:09:09 > 0:09:11President Trump will outline his long-awaited tax reform proposals in
0:09:11 > 0:09:15Washington later. He has promised to cut corporate and personal taxes to
0:09:15 > 0:09:18boost the economy. Critics have said the reforms will largely benefit big
0:09:18 > 0:09:25business and the wealthy.
0:09:25 > 0:09:30So, what is trending in business news this morning?
0:09:30 > 0:09:33Well, popular on Quartz Media is the story that Tesla has
0:09:34 > 0:09:37made its biggest ever quarterly loss, and it has delivered far fewer
0:09:37 > 0:09:42of its new Model Three cars than it had predicted.
0:09:42 > 0:09:45Is the magic of Elon Musk fading?
0:09:45 > 0:09:49On the Financial Times Twitter feed, a study that claims the global
0:09:49 > 0:09:52gender gap has widened in the past decade and will take 100
0:09:52 > 0:09:53years to close.
0:09:53 > 0:09:55And this one is causing a storm on Twitter.
0:09:55 > 0:09:58The CEO of pizza chain, Papa John's, berating the American Football
0:09:58 > 0:10:00governing body for not "showing leadership" over player protests,
0:10:01 > 0:10:08because it has hit pizza sales!
0:10:08 > 0:10:11And don't forget, let us know what you are spotting on line.
0:10:11 > 0:10:17Use the hashtag #BBCTheBriefing.
0:10:17 > 0:10:22And now for the markets. This trading session in Asia is ahead of
0:10:22 > 0:10:27the Central Bank day as far as the UK and the United States is
0:10:27 > 0:10:32concerned. That is a look at the Dow Jones the night before. Apple
0:10:32 > 0:10:38earnings as well. Facebook shares are up 5% in after hours trade on
0:10:38 > 0:10:44Wall Street. Next, we will take you through the stories making headlines
0:10:44 > 0:10:48in global media, including an analysis of Donald Trump's reaction
0:10:48 > 0:10:54ahead of the deadly terror attack in New York. That is coming up. We will
0:10:54 > 0:11:00see you soon.