09/01/2017 World Business Report

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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