:00:00. > :00:00.Now for the latest financial news, with Sally Bundock
:00:00. > :00:21.The tech giant reverses its sales slump thanks to its latest iPhone
:00:22. > :00:25.reporting its highest quarterly revenue ever.
:00:26. > :00:29.The President of the European Council says the new government
:00:30. > :00:39.in Washington is one of the biggest threats facing Europe.
:00:40. > :00:49.The Saudi Oil minister tells the BBC
:00:50. > :00:52.where he believes the price of the black stuff is headed.
:00:53. > :00:57.After three quarters in a row of falling revenues,
:00:58. > :01:02.High demand for the iPhone seven boosted the tech giant and it
:01:03. > :01:03.reported its highest ever quarterly revenues.
:01:04. > :01:07.In the last three months of the year the firm sold 78.3 million iPhones.
:01:08. > :01:09.That's a 5% rise since the year before.
:01:10. > :01:14.sales in China fell almost 12% to just over $16 billion.
:01:15. > :01:17.China has proved to be a difficult market with many homegrown rivals
:01:18. > :01:37.Dave Lee, our North America technology reporter,
:01:38. > :01:50.It is nice to see you. They did deliver what we wanted, a turnaround
:01:51. > :02:00.in that falling revenue figure. It is backed up, but how long for? Not
:02:01. > :02:08.for very long. They had a good holiday season, higher than. They
:02:09. > :02:16.removed the headphone jack and that proved safe despite suspicions. But
:02:17. > :02:21.Apple are now saying for the rest of the year do not expect huge sales.
:02:22. > :02:27.People are expected to hold off for the next iPhone in September. It was
:02:28. > :02:34.downcast from last year. But they are happy they reversed the trend of
:02:35. > :02:38.losing growth. A good result for them today but they are still being
:02:39. > :02:43.quite tentative about the future. Also, September is quite an
:02:44. > :02:47.important time, isn't it, because they are expected to launch the next
:02:48. > :02:51.iPhone, which will mark ten years since it arrived on this planet.
:02:52. > :02:56.People have high expectations about what this new phone may offer them.
:02:57. > :03:03.The question is, will they deliver on that? Apple need to. There has
:03:04. > :03:07.always been a slump just before a new model comes out because people
:03:08. > :03:14.do not want to spend money on a phone and find out it has been
:03:15. > :03:18.replaced in a few months' time. People think that this new phone
:03:19. > :03:26.will be very special since it is the 10th anniversary. I think there will
:03:27. > :03:29.be a lot of pressure on Apple to create something quite remarkable
:03:30. > :03:34.with the new iPhone. Especially because parts of the business are
:03:35. > :03:38.growing quite impressively but Apple really still does rely on that money
:03:39. > :03:42.coming in from the iPhone. If it does not keep that success coming in
:03:43. > :03:45.it will be a real problem for them. All right, Dave, thank you very much
:03:46. > :03:52.was staying up for us. See you soon. Does the new US administration pose
:03:53. > :03:55.the same category of threat to the European Union
:03:56. > :03:57.as radical Islam? That is the startling claim
:03:58. > :04:00.made by the President of the European Council,
:04:01. > :04:01.Donald Tusk. In a letter to EU leaders,
:04:02. > :04:05.he told them to "use the change in the trade strategy of the US
:04:06. > :04:08.to the EU's advantage," saying Washington's protectionist outlook
:04:09. > :04:11.was a chance to look elsewhere Meanwhile, President Trump's top
:04:12. > :04:14.trade adviser says Germany is using a "grossly undervalued"
:04:15. > :04:17.euro to "exploit" the US Germany's Angela Merkel has
:04:18. > :04:25.rejected the suggestion, saying it has always encouraged
:04:26. > :04:28.the European Central Bank The United States remains the single
:04:29. > :04:32.biggest economy in the world, The European Union's is second
:04:33. > :04:37.and closing the gap. With me is Morris Reid
:04:38. > :04:40.from the public strategy firm, Mercury, who worked
:04:41. > :04:51.with both the Clinton Good morning. A war of words. Good
:04:52. > :04:56.morning. The EU and the US. Not a good way to go. They feel they have
:04:57. > :05:00.to have it tough talk with Donald Trump. I think it is the opposite. I
:05:01. > :05:06.think they should be more engaging. The EU and the US have so much in
:05:07. > :05:11.common in terms of export and import. They are on the same page.
:05:12. > :05:17.Donald Trump is trying to fight people dumping. That is what
:05:18. > :05:21.countries and America want. They have to tone down the tough talk.
:05:22. > :05:25.They should be more engaged. They both need each other. It is
:05:26. > :05:30.interesting. Much of the tough talking is coming from Peter, the
:05:31. > :05:35.head of the new organisation of Donald Trump, the National Trade
:05:36. > :05:41.Council, talking about the weakness of the Europe, how that benefits
:05:42. > :05:46.Germany and Angela Merkel. None of this bodes well for the
:05:47. > :05:53.transatlantic Trade and investment partnership, TTIP,, which Obama was
:05:54. > :06:02.talking about with the EU. You do not hear much about TTIP. It is more
:06:03. > :06:05.about the TPP and now Nafta. They are fighting for market share. If
:06:06. > :06:11.you are looking at good competition for the US, especially with auto, it
:06:12. > :06:16.is Germany. So they are trying to push things along. They know that
:06:17. > :06:19.Angela Merkel is not engaging with the Central Bank. The Donald Trump
:06:20. > :06:24.administration is doing the opposite, trying to intimidate Janet
:06:25. > :06:32.Yellen. It is interesting. Of course, Janet Yellen and her team at
:06:33. > :06:43.the IMF meet today. They criticised Germany with the euro being weak and
:06:44. > :06:47.also Japan with the yen and China with the yuan as well. At the end of
:06:48. > :06:50.the day, these are currency markets we are talking about. In most cases,
:06:51. > :06:56.governments are independent. They are. When I was in the Clinton
:06:57. > :06:59.administration, we worked on strong policy. It is interesting Donald
:07:00. > :07:03.Trump is pushing hard on this. It has to do with exporting. Donald
:07:04. > :07:09.Trump is try to focus on an export strategy and manipulate the market
:07:10. > :07:14.is to create an environment for America to flourish. This guy is
:07:15. > :07:20.smarter. He is manipulating people and pushing levers. He knows that he
:07:21. > :07:25.needs to create jobs and exporting creates jobs. The euro has gone up
:07:26. > :07:32.8% since we started. It has worked since we started. -- 1%. Thank you.
:07:33. > :07:42.I appreciate you coming in. Let us move on. We have talked about
:07:43. > :07:44.currencies and Apple and all that, so let us talk about oil now.
:07:45. > :07:47.The Saudi Oil minister has told the BBC that OPEC's historic
:07:48. > :07:49.agreement with non-OPEC members to cut oil output could see
:07:50. > :07:52.the market balance out by July this year.
:07:53. > :07:55.The deal was reached in December after two years of difficult
:07:56. > :07:57.negotiation in a bid to slow the oil price.
:07:58. > :07:59.Speaking to our chief International correspondent Lyse Doucet,
:08:00. > :08:02.Khalid al-Falih said oil producers had been working hard
:08:03. > :08:14.Saudi Arabia has always produced in response to market demand. Even in
:08:15. > :08:20.the last two years, our market strategy was to sell to customers
:08:21. > :08:25.who requested shipments for the next month to be scheduled. So every
:08:26. > :08:34.barrel of oil that leaves Saudi Arabia's shores has been sent out at
:08:35. > :08:43.the request of a customer. So, come July, the assumption markets will be
:08:44. > :08:51.balanced. And if there is an agreement at that time to see the
:08:52. > :08:55.ceiling lifted, Saudi Arabia will be responsive, rather than constrained,
:08:56. > :09:02.in meeting those customers' demand. I would not expect an all out flood
:09:03. > :09:06.of the market in July. What we want to see, in the first quarter is
:09:07. > :09:11.always tough, but over the six months, what we want to see is a
:09:12. > :09:20.large reduction in global infantry is to bring it back within the
:09:21. > :09:24.five-year range. -- inventories. If we can do that, we will allow the
:09:25. > :09:27.market to do its thing and that will allow markets to continue.
:09:28. > :09:31.The on-line retail giant, Amazon, says it is investing $1.5 billion
:09:32. > :09:33.building an air cargo hub in Kentucky.
:09:34. > :09:36.The facility is expected to employ more than 2,700 people,
:09:37. > :09:52.and will support the firms growing fleet of cargo aircraft.
:09:53. > :09:59.The markets. A budget day in India We will wait for that. The Federal
:10:00. > :10:05.Reserve is meeting in the US later today. The oil price is declining.
:10:06. > :10:10.Poor results from Exon Mobile out of the US. That is how the markets are
:10:11. > :10:12.trading. Hong Kong open today for the first time this week. I will see
:10:13. > :10:13.you