03/11/2017

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0:00:13 > 0:00:17This is Business Briefing, I'm David Eades.

0:00:17 > 0:00:18It's the X factor!

0:00:18 > 0:00:21Profits jump at Apple as it forecasts a strong holiday season,

0:00:21 > 0:00:29saying demand for the iPhone X is "off the charts".

0:00:29 > 0:00:31Plus, Washington's worst kept secret is finally out.

0:00:31 > 0:00:33President Trump nominates Jerome Powell as the new boss

0:00:33 > 0:00:35of the US Federal Reserve.

0:00:35 > 0:00:38We'll tell you what it means for the global economy

0:00:38 > 0:00:40And on the markets:

0:00:40 > 0:00:43Asian shares are higher after another record close

0:00:43 > 0:00:46for the Dow - as investors welcome planned tax cuts and a safe pair

0:00:46 > 0:00:48of hands at the Fed.

0:00:48 > 0:00:53We'll have all the details for you.

0:01:07 > 0:01:15We start with Apple - it's already the world's most

0:01:15 > 0:01:18valuable public company - worth getting on for $900 billion

0:01:18 > 0:01:18and counting.

0:01:18 > 0:01:21Now its shares have hit a new record high -

0:01:21 > 0:01:24after it revealed a big jump in profits and forecast strong sales

0:01:24 > 0:01:25for the all-important holiday season.

0:01:25 > 0:01:27Let's show you the details.

0:01:27 > 0:01:31Apple made a profit of $10.7 billion in the three months to the end

0:01:31 > 0:01:35of September - up around 19% on the same time last year and well

0:01:35 > 0:01:39above what investors were expecting.

0:01:39 > 0:01:43At the heart of it all is the iPhone

0:01:43 > 0:01:47Apple sold over 46 million of them across the world in the three month

0:01:47 > 0:01:51period - up 2.6% on last year.

0:01:51 > 0:01:54It says sales growth was in double digits in many emerging markets.

0:01:54 > 0:01:57But it's the next quarter that has investors really excited

0:01:57 > 0:02:03because of this.

0:02:03 > 0:02:11The new iPhone X is released today.

0:02:11 > 0:02:13Apple has said demand has been off the charts

0:02:13 > 0:02:16and is forecasting record revenues for the holiday season.

0:02:16 > 0:02:18The big problem is making enough of them.

0:02:18 > 0:02:21Waiting times are currently up to six weeks, but Apple says it

0:02:21 > 0:02:23will reduce that in the coming days.

0:02:23 > 0:02:26For many people though a big concern will be the price

0:02:26 > 0:02:33at just under $1000.

0:02:33 > 0:02:41I think Apple has do, in my opinion, pick up its game in some

0:02:41 > 0:02:46departments. They have upped it with iPhone X buffer that price...

0:02:46 > 0:02:57Samsung is selling the same thing at about 40% - 50%. Less. Everybody is

0:02:57 > 0:03:00paying for the brand and everybody knows that.

0:03:00 > 0:03:02With me is Matti Littunen

0:03:02 > 0:03:06from Enders Analysis.

0:03:06 > 0:03:11You are quite excited about iPhone X what does he have the point? Is the

0:03:11 > 0:03:19quality worth $1000?Well, it is the most excited we have seen since the

0:03:19 > 0:03:25iPhone 6 came out. Lots of innovation in this model. Behind

0:03:25 > 0:03:33that rant is that great quality and innovation.$1000 is a huge

0:03:33 > 0:03:42purchase. Apple creaming off a bigger profit and do they think they

0:03:42 > 0:03:47can get away with that?If you look at the cost of the materials and

0:03:47 > 0:03:53components, it looks like Apple is going for the best possible poverty

0:03:53 > 0:04:02and custom components, cutting edge technologies so actually the cost to

0:04:02 > 0:04:09make and has arisen.You will have a chance to play with it later today.

0:04:09 > 0:04:13What are you keen to see?Really interesting innovations in the

0:04:13 > 0:04:19camera and display technology, the augmented reality features and

0:04:19 > 0:04:29perhaps most importantly really fast custom chips like machine learning

0:04:29 > 0:04:33and things like games and photography.There are some issues.

0:04:33 > 0:04:40The headphones no longer apply. They have a different socket. How will

0:04:40 > 0:04:48they deal with that?Apple will be happy to sell you an expensive new

0:04:48 > 0:04:54set of headphones are they also have the wireless headphones and, having

0:04:54 > 0:05:01tried those, it does take the experience forward and it is an

0:05:01 > 0:05:06improvement because you do not have to worry about the cable. Apple is

0:05:06 > 0:05:13hoping to push user behaviour forward in this. From a technical

0:05:13 > 0:05:20perspective, it really does work and quite optimistic.Time will tell.

0:05:20 > 0:05:22Thank you, very much indeed.

0:05:22 > 0:05:25Let's stay in the US where Washington's worst kept secret

0:05:25 > 0:05:26is finally out.

0:05:26 > 0:05:28Jerome Powell has formally been nominated by President Trump

0:05:28 > 0:05:30to become the world's most powerful central banker.

0:05:30 > 0:05:35If confirmed by the Senate he will take over from Janet Yellen

0:05:35 > 0:05:37when her term ends in February.

0:05:37 > 0:05:43Samira Hussain reports.

0:05:43 > 0:05:49Months of speculation and conjecture finally ended when the President

0:05:49 > 0:05:54walked into the Rose Garden with his thumb and if the head of the US

0:05:54 > 0:05:59Federal Reserve, Jerome Powell, by his side.He has proven to be a

0:05:59 > 0:06:04consensus builder for the sound monetary and financial policy that

0:06:04 > 0:06:13he so strongly believes in. Based on his record, I am confident that J

0:06:13 > 0:06:16has the wisdom and leadership to guide our economy through any

0:06:16 > 0:06:24challenges that our great economy may face.Mr Trump interviewed five

0:06:24 > 0:06:27candidates but iPhone X has been the frontrunner for weeks. He is

0:06:27 > 0:06:33considered a safe choice. He has been under Federal Reserve Board of

0:06:33 > 0:06:39Governors and has experience in the private sector.Our economy has made

0:06:39 > 0:06:45substantial progress to a full recovery. Close to full employment

0:06:45 > 0:06:50and inflation is close to our target.If that sounds familiar, it

0:06:50 > 0:06:56showed. Janet Yellen has been peddling that line for months.

0:06:56 > 0:07:01Conditions in the Labour market are strengthening and we expect that to

0:07:01 > 0:07:06continue. While inflation remains low, we expect it to rise to about

0:07:06 > 0:07:132% objective of the time.Jerome Powell is likely to continue the Fed

0:07:13 > 0:07:16policy of gradually raising interest rates, making the transition from

0:07:16 > 0:07:22Janet Yellen to Jerome Powell relatively smooth and that

0:07:22 > 0:07:27continuity is smooth for people here on Wall Street and the US market.

0:07:27 > 0:07:30Let's go to Asia now and Chinese e-commerce giant Alibaba

0:07:30 > 0:07:35is celebrating what it called an outstanding quarter.

0:07:35 > 0:07:38That's been the top story for our Asia business team -

0:07:38 > 0:07:47Sharanjit Leyl is following it for us.

0:07:47 > 0:07:53Huge jump in quarterly revenues for Alibaba especially field by its

0:07:53 > 0:08:01online shopping. They rose by 61%, a $.3 billion. The firm also raised

0:08:01 > 0:08:07its revenue prediction for its forecast. We knew it was expanding

0:08:07 > 0:08:12to other things as well, investments in supermarkets and stores, started

0:08:12 > 0:08:22by Jack Mark, the billionaire. Also its shopping platform. Active users

0:08:22 > 0:08:32in the Chinese retail marketplace grew by about 539 million, up a

0:08:32 > 0:08:37staggering 20 million in just three months. It has been on a hugely

0:08:37 > 0:08:40strong run with its shares more than doubling in value and it is gearing

0:08:40 > 0:08:46up for the annual block buster singles day event on November 11. A

0:08:46 > 0:08:51huge sales bonanza that moves more goods than the Black Friday and

0:08:51 > 0:08:59Cyber Monday combined. Good result for the firm.

0:08:59 > 0:09:09Now let's brief you some other business stories:

0:09:09 > 0:09:11Venezuela's President says he aims to restructure all future foreign

0:09:11 > 0:09:13debt because of US sanctions.

0:09:13 > 0:09:16Nicolas Maduro made the announcement on state television at the same time

0:09:16 > 0:09:19as confirming the country would pay a $1.2bn bond payment that was due

0:09:19 > 0:09:21on Thursday, albeit a day late.

0:09:21 > 0:09:23Venezuela blames sanctions imposed by the Trump administration

0:09:23 > 0:09:26for its current economic crisis.

0:09:26 > 0:09:29Tesco boss David Lewis has told a London court of his "surprise

0:09:29 > 0:09:32and shock" on learning the company's profits had been exaggerated

0:09:32 > 0:09:33by £246 million.

0:09:33 > 0:09:36Mr Lewis has been giving evidence at the trial into alleged fraud

0:09:36 > 0:09:38at the supermarket giant.

0:09:38 > 0:09:40Former Tesco executives Carl Rogberg, Christopher Bush

0:09:40 > 0:09:42and John Scouler are on trial.

0:09:42 > 0:09:52All deny the charges.

0:09:52 > 0:09:55And now what's trending in the business news this morning.

0:09:55 > 0:10:00Popular on Business Insider - the boss of Pizza Hut says

0:10:01 > 0:10:02protesting NFL players haven't hurt his business.

0:10:02 > 0:10:06This after the CEO of rival pizza delivery firm Papa John's

0:10:06 > 0:10:09controversially blamed a fall in sales on a lack of leadership

0:10:09 > 0:10:13by the NFL and falling ratings for US football games.

0:10:13 > 0:10:17From the Wall Street Journal, a big question for many people

0:10:17 > 0:10:21Friday - Who wins and loses

0:10:22 > 0:10:24in the Republican tax bill?

0:10:24 > 0:10:27The heirs of wealthy people and some business owners stand to gain

0:10:27 > 0:10:28from President Trump's proposals.

0:10:29 > 0:10:32And from the Financial Times: Tesla is facing a laundry list of concerns

0:10:32 > 0:10:35and its share price is taking a big hit -

0:10:35 > 0:10:38after it pushed back targets for its new Model 3 car and revealed

0:10:38 > 0:10:41a record quarterly loss on Thursday.

0:10:41 > 0:10:52And don't forget - let's us know what you are spotting online.

0:10:52 > 0:10:55Very keen to hear from you.

0:10:55 > 0:10:57That's it for Business Briefing this hour -

0:10:57 > 0:11:00But before we go - let's take a look at the markets:

0:11:00 > 0:11:04Japan is closed for a holiday - elsewhere Asian shares are holding

0:11:04 > 0:11:07steady ahead of key US jobs figures for October which are out later.

0:11:07 > 0:11:10In the US - the Dow Jones closed at another record high,

0:11:10 > 0:11:13partly thanks to relief that President Trump has chosen a safe

0:11:13 > 0:11:23pair of hands to run the Federal Reserve.

0:11:23 > 0:11:26Up next - Newsbriefing - we'll take you through the stories

0:11:26 > 0:11:29making headlines in the global media today including

0:11:29 > 0:11:35The situation in Spain and the Fed..