27/07/2016 World Business Report

weather are causing difficulties for the 3,000 firefighters tackling the

blazes. Nose are the headlines.

Time for Aaron. It's the tale of two tech titans.ly

tell you how much money the world's most valuable company made in the

past, or over the past, three months and whether or not that little blue

bird made any at all. And, power up - we get a sneaky

peeky inside Tesla's $2.5 billion giga-factory. She's big T factory

that will make the batteries sits on more than 3,000 acres.

Good morning Britain. Hello world. I'm Aaron Heslehurst. Welcome to the

programme. I know it's early in Britain. If you're watching for the

first time what this is, this is a bite-size snapshot of all the latest

in business and money. It's exciting. Lots going on. Let's start

with this. You be quiet in my ear. It's a tale of two tech titans. One

is a titan but let's start with Apple, the titan, that reported a

27% drop in quarterly profits N the last 3 months the profits dropped

27%. That may sound like a lot but the slowdown in how much money Apple

made wasn't as bad as Wall Street was expecting. Because of that

investors were happy, they jumped in. Share prices of Apple went up 7%

in after-hours trading. Meanwhile Twitter -er - it saw its slowest

group in quarterly revenue, so the amount of money it raked in in in

three months, that's the slowest since the company went public, since

it did its IPO in 2013. Of course thshgs is a company facing

tough competition from other social media platforms, the likes of

Instagram, SnapChat, though I should say Twitter, the number of monthly

active users, that rose 3%. That is important. That's a gauge for

advertisers. Nevertheless, it's Twitter shares, down, 11%. That's

not good. OK, lots to talk about. Familiar face, Managing Director of

Impress Online joins us. Thanks for coming in at this horrendous hour.

There are other phones out there, by the way.

A victim of its own success, right? I mean, here is Apple, apple and

investors, all knew that they were going to, the sales of these were

slowing down, they knew that, I know, don't look at this, it's an

old one. Sales are slowing down, investors thought sales would be

down here, Apple says they weren't that bad, down but about here and

investors light lying that, right? They weren't too bad. I think any

time you have a business and we've talked about 80% of Apple's core

business is built on these product sales of these phones, any time you

have a built on physical products, over time the popularity of those

products will go down and Apple has done a great job over the years,

particularly with the iPhone in reinventing it, adding new bells and

whistles, for new generations, but you will always see a little bit of

a slowdown in physical products. If someone wants one, the chances are

they have one. That's probably the problem. A bigger part. How many

people, can you sell the same thing to... It's the Chinese, they can buy

more in China. Is this an issue? Briefly on this, since the jobs

died, Apple has had not one new crackerjack product. I think you're

right in a literal sense, creativity and innovation has gone down and

from perception, a lot of Apple users are die-hard Apple fans and

once their guru, this creative genius, passed away a lot of people

perceive that creativity has gone out as well. I will come back to

Apple if we have time. Twitter, what do I say. Jack Dorcy is back in the

chair as the CEOt co-founder? He's been back for about a year. But

look, it's never made a profit. It's struggling really to grow. I know

it's growing users by 3%, but that's not enough, is it? No, it's very

difficult for Twitter. I think unfortunately you know, from an

investment perspective I have to say going after the big live streaming

deals they have announced as well, almost to try to set investors'

minds at ease, we are investing in this content, that smacks of

desperation, at the end of the day, it's a communications channel,

distribution, so to just go out and try to buy the rights to con tept,

to try to get eyeballs on it in that way, not the best strategy in the

world. No, and content wise, for Apple, if

we go back, I mean, they need, it needs more of that. Yes. So I think

this is the big thing F you look at the two companies together, one is

kind of a physical product, manufacture, one is a software

company, interesting that they're both in decline, and the content

could be the thing that saves both of them, Twitter is looking to live

streaming, Apple's core business is like, tooun and app stores are doing

well. So I think if these businesses look at content a bit more, that

could be where future revenue growth comes from. Interesting. Jamie,

appreciate it mate. Talk to you soon.

If Apple is watching, yeah, it's only an iPhone 5.

There's a 6 now, or something? Maybe 7, soon. Yes, 7. That would be nice.

That would be really nice, Apple. Let's look at what is happening on

the Asian markets. If anyone is watching, I can't accept a phone

from Apple, OK. Rico? What phone do you use and how

up to date is it? Oh, oh, I'm sorry, you're there, I'm

tweeting you. Hashtag "aaron Aaron Heslehurst the biz man".

I want to know what phone you use? I cannot reveal. This is confidential.

There is the phone. How, what are the markets doing over

there? It's doing well today. It's in positive territory. Climing to

fresh, near one-year highs led by Japan. The Nikkei 225 is up more

than 1%. They are the centre of attraction today because according

to local TV, Aaron, Prime Minister Abe is planning a stimulus package

with a headline figure of $255 billion US dollars to reflat the

flagging economy and not only that, there's near consensus almost among

traders that the Central Bank will be easing this Friday, most likely,

by ramping up its already massive purchases of government bonds and

risker assets. Cutting interest rates to negative territory proved

them popular with the lick and government, so deepening the cuts is

a less likely option. Investors are keeping tabs on Japan's latest

earnings reports. You have Nintendo and Nissan among companies reporting

after the markets close. As for the rest of the markets, Hong Kong

stocks and Chinese stocks in positive territory, continuing to be

snapped up to a stock market connection scheme. Australia,

Indonesia, Thailand, file peens, also in positive territory. A good

day for stocks, back to you. Hey, Rico, stay put. This is fresh

off the press. Can we say that? Off the printzer? The giga-factory.

Tesla has given us, the BBC, a sneak preview of its brand new

giga-factory. The biggest it will be. The biggest battery plant in the

world. It's being built to meet the demand for the firm's cars and

provide power for all sorts of, well, new types of vehicles. It is

near the US state of Nevada. When it's completed it will have the

largest physical foot print of any building in the world.

For the Tesla boss, Elon Musk, there's a lot riding on the success.

And we've been looking around. They call Reno the biggest little

city in the world. There's nothing little about its newest neighbour.

Tesla's giga-factory spans 3,000 acres and around 1,000 construction

workers are working 7 days a week to finish it.

When Elon Musk published his latest master plan for what he wants to do

with Tesla, he said it was done doing, he was done with electric

cars now he wants buses and any type of ground transportation. To achieve

that he needs more bot tris which is what this place is for.

The building right now is only a sixth of what it will eventually be.

By 2020 the factory will apparently be able to supply batteries for as

many as 500,000 Tesla cars each year.

Much of the factory is still top secret. We were only allowed to film

in a small handful of places. They wanted to show the world

they're raring to go. Bosses here say the factory is around 2 years

ahead of schedule, which is good, because Tesla is really in a rush.

The company hasn't yet made any money. Boss Elon Musk is under a lot

of pressure from investors to set that right.

Welcome to the giga-factory. I believe we are on track to meet the

half million in 2018. Obviously long-term it's going to make sense

to have a giga-factory in Europe and one in China. Probably one in India.

Mr Musk also has to answer troubling safety concerns about his cars. Last

month it was revealed its auto pilot function, which essentially drives

the car for you on a motorway, was being investigated to see if it was

responsible for the death of a driver. REPORTER: Do you have any

regrets about how Tesla rolled out auto pilot in the cars? No, I think

we did the right thing. We have the internal data to know that we

improved people's safety, not just in fatalities but also in injuries.

It's partly the enthusiasm and vision of Elon Musk that keeps

investors interested in this company. The success of this

colossal project will make or break him.

Good on you. Follow me on Twitter. I will will be back shortly. Taking

a look at the newspapers from around the world.

Under pressure, hospitals around the United Kingdom are increasing the

number of high cost payments to consultant doctors for extra shifts.

Anonymous investigation by BBC News found