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tv   BBC Business Live  BBC News  November 3, 2017 8:30am-9:01am GMT

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this is business live from bbc news with susannah streeter and david eades. firing on all cylinders. apple's boss celebrates another set of huge profits and says there's better still to come. live from london, that's our top story on friday the 3rd of november. with huge queues for the new iphone, which has just gone on sale, apple is on course to become the world's first listed billion dollar company. also in the programme... the new banker in chief is jerome powell. as donald trump picks a new chair for the us federal reserve, we'll assess what it means for the rest of the world. and this is the situation in europe as the markets have opened. the ftse 100 in particular on its march upwards. and whilst twitter and facebook are amongst the other big tech firms to report good numbers this week, we'll ask our technology
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correspondent, rory cellan—jones, if the little guys can ever compete. and we'll get his views on all the other big stories of the week. as donald trump is matched with your account is shut down by an employee on the last day of work, we want to know what you have done as a parting gesture on your last day. nothing too rude please. use the hash tag, business live. hello and welcome to business live. we start with apple. it's already the world's most valuable public company — worth getting on for $900 billion and counting. now its shares have hit a new record high — after it revealed a big jump in profits and forecast strong sales for the all—importa nt holiday season. let's show you the details. apple made a profit of $10.7 billion in the three months to the end of september — up around 19% on the same time last year and well
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above what investors were expecting. at the heart of it all is the iphone. apple sold over 46 million of them across the world in the three month period — up 2.6% on last year. it says sales growth was in "double digits" in many emerging markets. but it's the next quarter that has investors really excited... because of this. the new iphone x is released today. apple has said demand has been "off the charts" and is forecasting record revenues for the holiday season. the big problem is making enough of them. ben stanton is a tech analyst at the market research firm, canalys. thank you forjoining us and we will get back in a second. the best part of the $11 billion for the last quarter, it is all going the right way, selling loads of handsets. we cannot all be positive. the iphone eight is not necessarily really
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breaking all the records. that is correct. iphone eight has come in slightly below what apple was expecting. the 10.5 million units. a low bobby saw last year for the iphone seven. there were a few issues here. is the same as many previous generations of iphone customers are not as confused about that device and lots of the same as many previous generations of iphone customers are not as confused about that device and lots of them x. is ita that device and lots of them x. is it a step change? is it a step change that people wanted to be? many customers have been waiting for three years for a new design language to get them excited and that's what the iphone x brings. we are expecting around 25 million, maybe a0 million less quarter. what
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apple did yesterday was alleviate some of the iphone supply concerns around iphone x. we expect apple to sell every iphone exit can make in the next six months, maybe longer. it is not that they would have failed to pre—empt the interest in the product, it is more about the fa ct the product, it is more about the fact there is new stuff. there are some very complex components in the device. components specifically with the facial scanning technology in the facial scanning technology in the device that have never been produced to the tune of tens of millions of units before. manufacturers are having a problem with that. we expect a little bit of demand to spill from ga over into q1. demand to spill from ga over into 01. i demand to spill from ga over into q1. ido demand to spill from ga over into 01. i do not think that is as much ofan 01. i do not think that is as much of an issue of tech headlines have been speculating in the last few months. apple is doing particularly well, better than predicted,
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months. apple is doing particularly well, betterthan predicted, isn't it? sales are up even though iphone xis it? sales are up even though iphone x is exciting. china is an example of where apple had a really good quarter. iphone 6 was a big hit. six and seven words the mrs. it has a huge base of iphone 6 users who are ready to upgrade to the latest and greatest apple tech. some of them have decided to position themselves lower down the apple portfolio. we will leave it there. thank you. let's take a look at some of the other stories making the news. twitter is investigating how president trump's account was deactivated for 11 minutes. it's blaming an employee, who did this on their last day at work. the downtime doesn't seem to have phased him. he was back online tweeting about tax cuts to his more than a1 million followers soon after.
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franco—dutch airline air france—klm says improving price trends helped its third quarter profits. the company reported operating profit up 38.7% to $1.2 billion, way above analysts expectations. like other european airlines it benefited from strong summer demand. tv and mobile infrastructure firm arqiva has "postponed" plans for a 6 billion pound listing on the london stock exchange. the firm blamed ipo market uncertainty. the withdrawal comes on the same day as food supplier bakkavor also cancelled its listing plans. let's go to asia now — and us president trump is preparing to embark on his longest trip abroad so far in his presidency — starting injapan on sunday and ending in the philippines. he will spend two days injapan meeting with prime minister shinzo abe.
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so, what are some of the issues they will be talking about? stephen mcdonell is in toyko for us. just how important are these talks forjapan, in particular? you know, really, there are a lot of people in japan and the united states who would love this visit to be focusing around trade. i think the concern is it will all be swamped by north korea. but, for example, japan is in favour of getting together at the tpp11, the transpacific partnership without the us involved. the hope is, according to the japanese government, everybody would get involved and somehow get the initiative from the obama administration going again and this would drive the us back into the tpp.by would drive the us back into the tpp. by the same token, they do not wa nt to tpp. by the same token, they do not want to embarrass donald trump on
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his business, so i'm not sure how ha rd his business, so i'm not sure how hard they will be pushing for it. the other bingo will be discussing is the possibility of a free trade between the two countries. i don't think there will be going into any detail but it could be kicked off. the administrations in both countries would be pretty happy that the talks at least are under way. thanks, stephen. let's check in with the financial markets now. japan has been closed for a holiday — elsewhere asian shares have held pretty steady ahead of key us jobs figures for october which are out later. in the us — the dowjones closed at another record high, partly thanks to relief that president trump has chosenjerome powell — considered to be a safe pair of hands to run the federal reserve — more on that in a bit. let's take a look at what's been happening in europe. yesterday, in the uk, the ftse posted its biggest rise in three months yesterday, after sterling plunged after the governor of the bank
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of england said he'd expect further interest rate rises to be limited. the ftse is continuing its march upwards. the dax in frankfurt is also up. so, that's the picture in europe. michelle fleury has the details about what's ahead on wall street today. it isjobs it is jobs friday. it isjobs friday. wall street it is jobs friday. wall street will be watching to see if last month's in hiring was a one—off or the start ofa in hiring was a one—off or the start of a new trend. labor department figures are likely to show that companies created more than 300,000 jobs in october after falling companies created more than 300,000 jobs in october afterfalling 33,000 in september. the unemployment rate is affected to hold steady at a.2%. anotherfigure is affected to hold steady at a.2%. another figure worth watching if the latest trade numbers. donald trump often complains about america bosman trade deficit with other countries. the commerce department is expected to report the trade deficit widened. apple's iphone ten goes on sale was
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it comes a day after the tech giant says it may $10 billion in the last quarter was it pleasantly surprised investors by raising its revenue forecast for the upcoming holiday season. joining us is shaun port, chief investment officer at nutmeg, the online investment manager. thank you no match ball coming in. let's focus on jerome powell, thank you no match ball coming in. let's focus onjerome powell, to start off with. —— for coming in. it isa start off with. —— for coming in. it is a bit ofa start off with. —— for coming in. it is a bit of a setback forjanet yelled. she has been considered a really safe pair of hands through this period and will not have a second term. many would say that is being quite unfair. it is really thought that she has done a great job over the last four years. you have to go back to 1979 to see the last time this happened. how is the continuity candidate. he has been at the fed for the last five years. an expert in banking regulation but not
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an economist. we know it is a very similar sort of style. are there differences? nec areas in which he might bea differences? nec areas in which he might be a little bit more aid donald trump man. —— can you see areas? the real test will be next year. the trump administration pushing tax cuts. that will put them under a lot of pressure to raise interest rates faster than a lot of people would expect. the key test is next year. he is an expert in banking regulation and may soften the regulations. that is what i was leaning to foot of donald trump would probably like that kind of move. maybe is a bit more in the direction of what he would like and trying to manage yelland might have been harder. he is concerned about financial stability, particularly as
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the fed is raising interest rates. it wasjohn the fed is raising interest rates. it was john taylor who was the fed is raising interest rates. it wasjohn taylor who was also one of the front runners he really advocated much higher rate rises, much steeper and much faster. jerome powell is more of a gradual approach. two or three hikes. us economy is doing quite well but inflation is quite soft. if we started to seek wage is going up, things would be different. a key jobs figure out later. what are you expecting to be shown? at least 300,000. we must bounce back from the weakjob growth we had last month that it is the most important indicator we have with the uk, the us andjapan. indicator we have with the uk, the us and japan. i have been looking for the last 25 years which shows the uk economy is doing well and unemployment is very low. is donald trump lucky? coming in with a very strong economy and a very strong
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stock market. also, global growth is getting stronger. the backdrop is really good but where you go next is harder. we hard to maintain the strong growth into next year and the year after. you talk about the bounce back from the hurricanes and the storms. to what extent do think not have an impact on the gross figure we saw in the us? it has not been too bad. car sales have been strong because people need to replace the cars which have been badly damaged. a bit of a bounce but quite high business confidence. a lot of things are working for the us economy and things are firing on all cylinders. we'll will be coming back to talk through the papers and all about how the twitter account of donald trump was suspended. you have to smile, haven't you? it has been a big week for apple, facebook and twitter. we're going to
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get the inside track with our technology correspondent. this is business live on bbc news. the deputy governor of the bank of england has told the bbc that the rise in inflation since brexit was one of the main reasons for yesterday's decision to increase interest rates for the first time in a decade. ben broadbent was asked whether that rise combined with the wage squeeze would cause many people economic pain. there will be some. i think it's, it's one part of how the policy works. equally one should keep this in context. around a third of households have owner households have owner occupied mortgages. interest payments on debt in aggregate for households are lower than they ever been relative to income. our economics correspondent andrew walker is in the business newsroom. interestingly, after those comments
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from the bank of england governor came through, sterling plunged, so is this mark carney talking too much for the markets? that's an interesting way of putting it. they are always very keen to get some guidance from the bank of england officials about what the future prospects are for interest rates, and he made it very clear that there are likely more in the pipeline. the bank's expectation that its key inflation target, the central thing it's trying to achieve, will be achieved, more or less, overthe next couple of years, on condition that it makes some more interest rate rises. he was suggesting that we can't really expect there to be more than two of these equally small rises, and i guess what the market thought was, well, maybe we might
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have been expecting a bit more but this is at the lower end of what could really reasonably be expected from the bank of england's guidance about the way it's going to be setting rate in the next year or two. thank you very much. on that update on the comments from the deputy governor of the bank of england. news of another story which has been covered on the today programme, the national trading standards warns that thieves could steal personal information from connected appliances, anything from smart fridges to tvs. it thinks it has prevented £127 million of losses over the past year. wonder what's there. —— that is one to watch, there. our top story, apple's shares have hit a new high after the boss tim
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cook said the company is firing on all cylinders. they reported a big jump all cylinders. they reported a big jump in profit of the new iphone x goes on sale with those huge queues. they are queueing down regent street, to some extent! a quick look at how markets are faring. tech was a real boost on wall street yesterday, the ftse is continuing upwards, the highest level in three months after those comments from the bank of england governor. and now let's get the inside track on another busy week of tech news. as well as good numbers coming out from facebook, twitter and apple. meanwhile bitcoin has surged to new highs. our tech guru is rory cellan—jones. i was just shouting across to you, iphone x, they are determined that we caught it i think ten, but you can call it whatever you want! -- dave wa nt can call it whatever you want! --
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dave want you to call it iphone ten. so why are they saying that? they are tried to say, it's ten years since the first one, its heritage. five, six, seven, eight, x, it doesn't work! we have had some not great so great results for some firms like go pro, smaller firms, results for some firms like go pro, smallerfirms, can results for some firms like go pro, smaller firms, can the results for some firms like go pro, smallerfirms, can the eveready compete? go pro and fitbit are the challenger companies all in the last decade, they were born, but what has really struck me is that we have had results from the giants, google, apple, microsoft, still punching in there, they have had extraordinary results, making money on historic towns and raising questions about how powerful these countries are.
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meanwhile, go pro saw its shares tumble, it makes action cameras, it exploded onto the market couple of yea rs exploded onto the market couple of years ago, its shares soared, it has been on a downward path with china and so on, this time it had better results but it warned that coming up, prospects were not quite as good as investors hoped and a brief rally in stocks came to an end with the jolt. fitbit finds itself trying to compete against a giant like apple, fitness band that is very popular but is now making big losses and struggling for the future, saying not about the wristband, it's about all of the data we have collected. that's interesting, is that about facebook knocking them down? if you go and have a look for a fitbit, you will see a plethora of other opportunities, you can seek other
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things and that's just the market. it's about trends and how they play out. there was a huge trend in fitness bands for while, and we quickly found its not such a big market, similarly for gopro, there was a huge trend in action cameras, maybe everyone has got an action camera. you do if you are a cyclist in london! some of those companies are not delivering on the early overexcitement around them. talking about new pretenders, talking about bitcoin, the crypto currency‘s values soaring yet again, sam people said couple of years ago that it was going to be a bubble, is it still bubble? we have got the chicago mercantile exchange, cme, saying it's going to consider offering futures contracts. that's what's caused the latest inflation in this product. here's a confession, i've got a stake in this and i ought to be open about this. 18 months ago, i
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was doing a story about bitcoin so thought i better get some. i put $60 into a cash machine in london and got bitcoin in exchange, and i look at it every day, my stake is now, i got $60 worth and today it's worth $1327. ifi got $60 worth and today it's worth $1327. if 1 could got $60 worth and today it's worth $1327. if i could get got $60 worth and today it's worth $1327. if 1 could get it got $60 worth and today it's worth $1327. if i could get it out. got $60 worth and today it's worth $1327. if 1 could get it out.|j got $60 worth and today it's worth $1327. ifi could get it out. i saw you doing that, i remember that, and you doing that, i remember that, and you had enough trouble sorting it out at the time so you have got to get it back. there are plenty of traders who say this is difficult because on these bitcoin exchanges, it's not at all transparent whether there is fraud going on. so how can these be traded on the cme, say? you have got a war going on between the establishment, the finance establishment, the finance establishment which has been very wa ry establishment which has been very wary of it, and we have had big figures are saying don't touch it with a barge pole, but the down appear to be breaking. that announcement out of chicago was very significant. people saying, yes,
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it's an asset that people want so we've got to start trading it. briefly, it's not yourjob to promote or not, but you did it, you see the increase in the value of this, what would you say to people who are thinking, i wonder if i should have ago? i feel completely uneasy about the whole thing. it feels like the tulips craze in 1770 holland, and the line from the wall street crash, when the bellboy in the elevator starts to be new shares, be worried. my physiotherapist started asking me about it and he is a smart guy, i said, be wary! and if you want more of the latest tech news you can catch rory‘s ‘tech tent‘ programme on bbc world service radio at 1500gmt, and if you miss it you can download the podcast from our website, just search for bbc tech tent. if you thought about changing the way you travel to cut back on the
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amount of pollution, look at this. robert and barney swan are a father and son team and are trying to become the first team to use renewable energy to power their way to the north pole. we liked the vapour. this is the first renewable energy polar expedition ever made. we have nasa ice melt is being driven by solar, we have passive ice melt is, as a back—up, we have these amazing advanced biofuels that have come all the way from bangalore in india, so when all is lost, we can be warm and put our food to stay alive. renewable technology is not only viable but it can power for men 600 miles through the world's are shipped condition. 16 days in a tent
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with anyone challenging but your father, it comes with a lot of weight. flexibility, some training, and the fa ct flexibility, some training, and the fact that i really inspired and so lucky to be going with my son. we were asking on the refection of what happened to donald trump's that account which was suspended for 11 minutes because someone on their last date in twitter decided they would take it off, we have been asking you for your views. james says, i gave every customer i served my staff discount on 2a month phone contracts on my last day. and this says, i just contracts on my last day. and this says, ijust said goodbye to co—workers and left peacefully to continue my life. we did get more than two but the majority were not able to be repeated! we will have to leave it at that. let's have a look
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at the other business stories. let's talk about this story in particular, have you ever made a parting gesture on your last day at work? i've always left quietly on good terms, you have got to keep good contacts, it reminds me of the hmv incident when someone it reminds me of the hmv incident when someone was it reminds me of the hmv incident when someone was live tweeting the mass redundancies. twitter is such a powerful tool, people can communicate real—time difficult moments for staff leaving. it still seems staggering that one person can ta ke seems staggering that one person can take off, ok, albeit one twitter account but one with a1.5 million people following the most powerful man in the world. it's surprising there is not control about that. the recognised but did not apologise, interesting. that's it for now, goodbye. good morning. we have got another
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foggy starts to the date across southern england and wales, that will clear away but it might take until lunchtime before it clears. for many of us, it will be mostly cloudy. with that cloud, and outbreaks of rain moving into scotland, northern ireland as well, but in the south, is that fog gradually clears, there will be brighter skies developing and a bit of sunshine coming through. perhaps some more cloud coming towards south—western areas of england but still temperatures across the south 13 or 1a degrees. good breaks in the cloud across the midlands and eastern england, wales, a bit of rain moving its way through there, lots of cloud through northern areas. in the north—east of scotland, there will be some sunnier weather. that rain moving its way into the fast north—west of scotland. this evening, if you're
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heading to a fireworks display, it will be dry with some cloud, some rain into north—west england, wales and scotland. that rain becomes extensive tonight and more widespread across england and wales, all associated with this weather system that is going to gradually move eastwards, bringing heavy rain for a time overnight into central and eastern england. temperatures staying in double figures but with clearer sky at the north—west, a little bit more today. this is saturday, heavy rain to start across england and wales but that will gradually their way to the east, it'll take until afternoon but for finally clearing away to the south—east. scattered showers and tanning chillier, attempted in single figures, just holding on to double figures across the far south—east. if you are going to a fireworks to spray on saturday, it will be dry and clear spells for many of us but a few showers across western errors of the uk. saturday into sunday, that cold air
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with us, rather brisk north—westerly wind across the uk. temperatures struggling in single figures for many. a few showers around on sunday, mainly towards the north and west but some good spells of sunshine, temperatures eight to 11 degrees but bonfire night on sunday, a good chance of having some good dry and clear weather. more details on the website. hello. it's friday, it's 9 o'clock, i'm chloe tilley. welcome to the programme. labour suspends luton mp kelvin hopkins as part of the sexual harassment scandal engulfing westminster. it comes as former defence secretary, sir michael fallon faces further allegations just two days after losing hisjob. i think it is a very easy line to draw in parliament with mps and staff who work in parliament, is that if this behaviour went on in a school, would that person be disciplined, would they be fired? and the answer to lots of things
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that have been said is yes. but for some reason, we don't have the same rules. we'll be reflecting on the week's events with mps and former westminster staff and asking what need to change. also this morning. a former white supremacist from arizona whose black probation officer helped him turn his back on years of violent race crime,
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