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Fiat Chrysler says it will invest $1 billion in the United States
as the Detroit Motor Show gets under way.
Iron ore prices are set to plunge - that's the message from
the Australian government, sending mining stocks down.
The boss of Rolls Royce is here to tell us
That is his view. We will talk to him in a moment.
Over the next few days, the world's car makers will be
taking the wraps off their latest products at the Detroit Motor show.
The car seems more popular than ever - an estimated 75 million were sold
last year, but 2017 is already beginning to look like a big year
Not least because more of them are looking
In the last few hours, Fiat Chrysler has said it will put
$1 billion into two US factories, which will create 2000 new jobs.
The incoming president Donald Trump has been piling pressure
on carmakers to make the vehicles they sell in the US in the US.
Meanwhile, the traditional business model
of the industry is changing with the disruption coming
Google, Apple and Uber are pushing innovations like driverless
And that will also mean more electric cars.
Global warming and pollution are just two of the reasons
many of the established players are focusing their investments
In particular, concerns regarding diesel engines
with cities including Paris, Mexico City, Madrid and Athens
all planning to introduce some kind of ban over the next decade
And then there is the prospect of a free
trade era slowing down - that's why Fiat Chrysler
is investing in the US, with Donald Trump threatening
several leading manufacturers with tariffs for building
Karl Brauer is an analyst with the US car website Autotrader,
and says Donald Trump's plans might come back to haunt him.
What I think will happen is Donald Trump will come into office and told
for smart ways to keep jobs in America, but at the same time, you
have to be careful for unintended consequences. Go buy the role of
government agencies. If you keep the jobs here and force prices up and
make them uncompetitive with cars coming in from somewhere else or
companies building the cars in a different way, you could end up
hurting companies because they simply can't make the cars
affordable for Americans. Then you will have company is laying people
off, not because the cars are built somewhere else, but because they
can't sell enough cars to employ people. Economics is interesting.
Usually there is a cause and effect a new car just do one thing at issue
it is always an upside. There are always repercussions somewhere else.
-- and issuing it is always an upside.
With me is Torsten Muller-Otvos, the chief executive of Rolls-Royce.
Let's talk about your results. Another fairly good year, quite
interesting, where you have been selling cars more than usual last
year. I would call it a tremendously good year for us, plus 6% worldwide
what we have achieved in light of some considerable headwinds we have
seen in some of our markets worldwide. Plus 6% is great, over
four dozen cars. Over 250,000 euros, a great achievement -- 4000 cars.
Fair enough. You sell most of your cars in USA. Yes, that is the
biggest market. After that, you saw a 25% rise in sales in the UK. The
UK has been a very good market for us last year. Plus 25%. The overall
market was quite strong for us. Why? We should not forget we have
introduced last year our new convertible into the market, and
that has played particularly well in the UK. It had tremendous market
success and is part of the success story of plus 25%. Why was the UK so
strong for you last year? You will see a lot of individual target
groups in the UK, and the economic climate is not bad in its way, and
for that reason we have seen you business for us. When it comes to
the industry and all of the changes we have seen already, the Donald
Trump effect, technology, the likes of Google and Apple getting
involved, where do you see yourselves in the future? Some argue
that you have not necessarily moved with the times as quickly, for
example when it comes to electric. You were very slow to get ahead on
that. We are in a very different segment. We are not a traditional
automotive business. This is more luxury. Our clients don't need a car
or a Rolls-Royce to go from A to B. They have several cars in a grudge.
They are not prepared to accept compromises, such as compromises on
charging transfer batteries and things like that -- in Bay barrage.
But more people want an environmentally friendly vehicle
double get them from A to B, maybe by plugging in as opposed to using
Oldfield. We are committed in that direction. -- old fuel. You may be
aware of our vision, a full autonomous driving full electronic
car. That is how we see the future of luxury transportation and
Rolls-Royce. When can we drive one of those? In the next ten years,
definitely. We are clearly committed to entered the field of electric. He
must accept our customers love and enjoy our business. Look at the
numbers. We have been highly successful last year. We would not
be success are full if we did anything wrong when it comes to
drive rates. For that reason I think we are in good shape. We might see
more in London today because of the tube strike. You never know. Thank
you for coming in and telling us how you are doing. Great to be around.
Of course we are at the Detroit motor show. You can watch our
website for the very latest from there as the week progresses. Let's
talk about what is going on in Australia.
Shares in Australian mining companies have been falling sharply
today in Sydney after the government warned of a dramatic decline
Iron ore is a key ingredient in steel, and one of the country's
Let's go to Sharanjit Leyl, who's in our Asia Business Hub
Talk us through this warning any immediate impact for financial
markets. The impact on financial markets is that we are seeing those
Australian mining company shares falling, like fortis kiss you --
Fortescue falling nearly 4%. The Department of innovation and science
said they would be a dramatic decline in iron ore prices. It
projected that iron ore prices in two dozen 18 would be almost half
the current level of 80 US dollars a ton. The current price, bear in
mind, is being supported by resurgent demand from China. The
Department goes on to say to mind is unlikely to continue over the coming
years, and also lowered its forecast for iron ore exports by 2% to just
over 832 million tons for this fiscal year. All of this takes a
huge toll on Australia. It is the world's biggest supplier of iron
ore, and shares it has been following -- has been falling,
although they were against the trend. We have seen the ASX gaining
today to 18 month highs. Again, in this forecast, I should add, the
same department made a forecast early last year, and predicted a
similarly dire forecast for iron ore prices, but in fact, there was an
increase in Chinese demand that spoke the price above $80. --
spared. Thank you very much. Let's squeeze in a few other stories.
London faces a day of disruption with many Underground stations
closed, especially in the centre of the city, because staff
They've walked out in a row with management over station ticket
One estimated suggests that the 24-hour strike will cost
the city's economy as much as ?300 million,
Two senior Samsung executives have been questioned as part
of the corruption probe surrounding South Korea's impeached president,
It's reported that they're being treated as witnesses.
The electronics giant is accused of giving large donations
to non-profit foundations operated by a close confidante of Ms Park,
allegedly in exchange for political support
Venezuela's president, Nicolas Maduro,
has announced a 50% increase in the minimum wage.
It's the fifth increase in the last year and is supposed to help
Venezuelans who are struggling to cope with hyper-inflation,
which is estimated to be around the 500% mark.
The opposition says Mr Maduro is responsible for the economic
crisis which has been engulfing the oil-rich country
A very brief look at the markets today in Asia. They are trading at
the moment. Japan is shut today for a public holiday. Also you can see a
mixed picture. I will see you soon. Plans aimed at cutting suicide rates
and improving support for people suffering
with mental illness in England will be set out
by Theresa May later. It's her first major
speech on health She's expected to announce plans
to reduce the waiting times