tv BBC Business Live BBC News September 10, 2019 8:30am-9:02am BST
a re are the wind quite blustery. these are the wind gusts. 27—40 miles an hour across the north west of scotland. maximum temperatures around 17—21dc. for the rest of the week, there could be some rain around on thursday, but you can see, generally, as we go through to the end of the weekend, lots of sunshine developing and it will turn warmer. temperatures getting up into the mid 20s. even further north and west, it will feel that bit warmer. by barry.
this is business live from bbc news with sally bundock and tadhg enright. charging into an electric future. can eco friendly cars boost shrinking car sales? live from london. that's our top story on tuesday 10th september. we're live at the world's biggest motor show in germany today, looking at bmw's hard brexit warning and if auto firms are ready for a more environmentally friendly future. also in the programme, he's the former english teacher who founded the half trillion dollar e—commerce giant and he's stepping down. alibaba chairmanjack ma leaves
the company he created today. we will hear his fascinating story. markets in europe are headed lower for now. a lot of attention on central bank action and the european central bank meeting on thursday. and pets in silly glasses, what's not to like? snapchat is a bit of social media fun, but the firm wants to put a more serious face on. we find out why. and as us authorities launch an investigation into google‘s dominance, we want to know could you live without the services they provide — just use the hashtag bbcbizlive a very warm welcome to the programme. are you lost without google? we've already had comments. we've already had some coming in and
we will share them later. the world's largest motor show gets under way today in frankfurt with all eyes on trade tensions between the us and china. with germany's economy now shrinking the likes of bmw, vw and daimler will hope that the showcase event can give their brands a much needed turbo—charge. according to the european automobile manufacturers association the auto industry provides jobs to 13.8 million europeans. however during the first half of 2019, demand for cars across the eu fell by 3.1% to 8.2 million. and there are fears that the eu could be dragged into a trade war with the us after president trump repeated his threat that "auto tariffs are never off the table" as he pressures the eu for better trading terms. however there is one bright spot, because one million electric cars are expected to be sold in europe over the next year according to ihs markit. that's a 300% increase on 2018.
our business correspondent and resident petrol—head theo leggett is in frankfurt. what are people getting excited about and worried about there too? well, there's a lot of excitement as you would expect. this is a massive event. you can see the crowds behind me, the press presentations are under way at the moment and we could hear a few of them. sorry if we do. lots of excitement, two launches as the new porsche, the first electric car, and volkswagen's id three, its first purpose—built affordable electric car. the backdrop to all of this is falling sales in key markets, not only europe but also particularly china as well. and the threat of further trade sanctions. in particular, there is the threat china could ramp up tariffs on american built cars later in the year. why does that affect europe?
daimler and bmw year. why does that affect europe? daimlerand bmw in year. why does that affect europe? daimler and bmw in particular have big factories in the usa and export ca i’s big factories in the usa and export cars to china and bmw says existing ta riffs cars to china and bmw says existing tariffs already cost it 300 million euros last year. then, of course, the other big political cloud hanging over the industry. that is brexit. earlier i spoke to doctor nicholas painter, the chief financial officer at bmw and i asked him what he made of the current political uncertainty, political chaos in the uk? we most likely would have to raise our prices for the products produced in the uk and shipped to other markets. increase of price means an impact on the volume you sell and would eventually lead to a reduction of produced cars in oxford, in our uk plant. c0, talking in oxford, in our uk plant. co, talking about clouds on the horizon, looking into the middle
distance, are people worried that the technology that people are talking about them in frankfurt could ultimately translate into lower car ownership in general? there is that and the fact electric cars are less profitable at the moment because they simply cost more to build, so they simply cost more to build, so the industry is in a bind at the moment frankly. it has to build electric cars because very tough new european emissions regulations are going to start to come in from next year which will pretty much obliged manufacturers to have zero emission ca i’s manufacturers to have zero emission cars in their fleet or they will face heavy fines but those cars cost a lot of money to build and are less profitable, so the point they are trying to sell these things, they are not making as much money. there is the other point you mentioned which is going forward, into the future, there is the idea that car sharing will be more common and private car ownership, having a shiny new beast like one of these on your dry will become much
less common, so your dry will become much less common, so they are trying to transform themselves into mobility providers where they are looking at a future where they might be building cars for fleets, a future where they might be building cars forfleets, selling fewer of them and trying to make money in other ways. that's where we have seen car—makers developing new car sharing services for example, so it's a changing industry but, as you can see, optimism is in the air here at the car show. try not to add too much fun today. thank you for joining us. let's squeeze in some other stories. british airways pilots are striking for a second day in an ongoing dispute over pay and conditions. tens of thousands of passengers have been told not to go to airports, with the airline cancelling some 1,700 flights. the pilots' union balpa said cost—cuts and "dumbing down" of the brand had eroded confidence in the airline. nissan's chief executive hiroto saikawa has said he'll step down next week. mr saikawa has been criticised for being overpaid as part of a bonus scheme, although he denies any wrongdoing. the latest
announcement followed a meeting of the car—maker's board. investing $1.8 trillion over the next decade to adapt to climate change could produce net benefits worth more than $7 trillion. that's according to a report by the global commission on adaptation, a group of 3a leaders in politics, business and science. the group say the world urgently needs to be made more "climate change resilient". jack ma, who's one of the best known and richest businessmen in china, is stepping down from his post today as the executive chairman of aliba ba. the announcement last year, took many by surprise. what is more surprising perhaps is his story. let's go to our asia business hub where karishma vaswani is following the story. and it's a big moment.
yes, indeed. forjack ma, this was signalled, as you said, the decision came last year. it certainly took the business community by surprise and the reason for that of course is that jack ma is one of the most fla m boya nt that jack ma is one of the most flamboyant director, unafraid to speak his mind business people in china and he is known for that colourful china and he is known for that colou rful style china and he is known for that colourful style all over the world. he's regular fixture at events like the world economic forum, but it's also his creativity many say that has led to the spectacular success that alibaba has become today, one of the worlds biggest internet firms with revenues were something like half $1 trillion. having said that, though, these are difficult times for the company. it's having to navigate the us china trade war as well as a slowing chinese economy. it makes more than two thirds of its revenue in china and expanding overseas at a time when it is not doing all that well in places
like southeast asia and india, all a very difficult things, challenging, for the man who is now going to steer alibaba in the future but jack ma is not going anywhere soon. he will also have a prominent place and a prominent role in the decision—making for alibaba in the future. thank you. let's show you the financial markets in asia. a mixed session today following a flat monday for wall street. 0il stocks did well off the back of the news that saudi arabia is new energy minister signalling 0pec and other oil producers will perhaps cut production. the treasury secretary sang earlier this lots of progress on trade talks between the usa and china. lots of positive news hitting markets, which has helped them a bit. let's look at europe right now.
bovis, house—builder in the uk reporting record profits and jd sports, a big retailer in the uk, sales are higher but they talk about the challenging retail environment, so company specific stories but the energy stocks not doing enough to boost the ftse 100 stocks not doing enough to boost the ftse100 right now. let's look at what's going on in the usa. a group of 50 states and territories in the us have launched an investigation into google's dominance of the online advertising market. samira hussain has been to washington and has this report. this is not something you see very often in washington, dc. democrats and republicans working together. but together they stood on the steps of the supreme court announcing an investigation into the business practices of the internet giant google. while democrats and republicans may be from different parties we all have a common bond and that is we are charged with
responsibility of protecting the citizens of our state. these are state officials are looking at googles search engine and its digital advertising and whether it is stifling competition by favouring their own sites. and this is not the only investigation to hit big tech. last week, another coalition state officials announced an anti—trust investigation into facebook. the department ofjustice investigation into facebook. the department of justice announced investigation into facebook. the department ofjustice announced in july it would probe whether social media, search and e—commerce companies have become too big. and the federal trade commission continues to examine facebook. these investigations might take one year 01’ even investigations might take one year or even longer. and, at the end of all of that, the landscape of big tech might not end up looking any different. even with anti-trust enforcement, even with investigations, we still may have a few dominant firms and that will leave policymakers with another question. do you regulate more in this space? do you come up with new
tools for digital marketing which expands opportunities for competition? i believe that's probably where we are headed. this all comes as consumers have lost confidence in tech companies. they've been unable to safeguard peoples information and they have been caught up in efforts by foreign powers to influence elections. so 110w powers to influence elections. so now it is up to big tech to prove it was wrong. we asked can you can you live without google. i must confess imight get live without google. i must confess i might get a bit lost. absolutely, and the fact they all link up. you can search for something and then get directions to it, it is seamless. that's the type of thing the authorities in the usa are looking into. so a few of you have beenin looking into. so a few of you have been in touch. liz lindsay said it would be very beneficial to have equally good search engines, more up—to—date, google still works as it does ten years ago. it takes ages to find what you are really looking for. that's very interesting. cathy does not like monopoly. research
is going to close her google accounts because can't support monopolies like google, amazon and walmart. i'm sure there are other places available. thank you for your comments. joining us is maike currie from investment director, fidelity international. so nice to see you back. back from maternity leave, baby number two delivered successfully. well done. how would you cope without google?” would struggle. if you think about oui’ conversations every would struggle. if you think about our conversations every day when we just check something on google, using google maps, watching a video on youtube, gmail, it is so ingrained in ourdaily on youtube, gmail, it is so ingrained in our daily lives it would be a struggle. ingrained in our daily lives it would be a strugglelj ingrained in our daily lives it would be a struggle. i guess it's about what limits they put on how they exploit the fact we are so reliant upon it and that will be the interesting thing. they got so much of our data and how they protect that data. you came back in the midst of a storm. you had a brexit market breather but you are back at work so give us your take on the markets right now and where we're at. we did see the pound
strengthened this week and that is because the brexit uncertainty that has weighed on the uk economy has eased slightly and of course the global answer around us and china trade relations, all of that has eased. we saw the pound surging, $1 23, which are still low by historical standards, but a lot better than when it was last week at $119. because the uk stock market is so dominated by international companies, astrazeneca, glaxosmithkline, unilever, these companies are all dollar earners, it weighs on their earners, and we saw the ftse100 pulled back slightly. 0k, we will be hearing more from you later on but thank you for the moment. still to come. is social media becoming less social? snapchat, famous for making dogs look daft and photography fun, is trying to spruce up its image. we talk to one of the firm's top executives. you're with business live from bbc news.
parliament has been officially suspended for the next five weeks, after an extraordinary night in the house of commons. let's turn to westminster where our political correspondent ben wright has the latest. were you there until two i am?|j confess i was in bed watching the proceedings on my phone. watching bbc parliament until about midnight, and that i had to go to bed because of my early start. so i missed the real raucous pandemonium that followed mps rejecting borisjohnson back latest request for a general election and when the house of commons then moved onto discussing prorogation and the ceremony for wrapping up parliament, that's what it all kicked off and there were these really raucous things as opposition mps held up signs saying silenced around the speakers chair and tried to stop them leaving the chamber. they were shouting shame as
they filed out to go to the house of lords to witness the prorogation ceremony. they were singing from the welsh and scottish mps, there's never been anything quite like it on the floor of the house of commons and it demonstrated just how febrile everything is and how angry mps are that parliament is now wrapped up for five weeks in the middle of this crisis. leaving without a deal has 110w crisis. leaving without a deal has now been ruled out by law but what do you read as the prospect as we stand now for boris johnson, do you read as the prospect as we stand now for borisjohnson, as he tries to get around that? it is so ha rd to tries to get around that? it is so hard to know. yes, the law is now clear that boris johnson hard to know. yes, the law is now clear that borisjohnson has to attempt to get a deal through. if he hasn't got a new withdrawal agreement through by the 19th of october, he is instructed to go to the eu and request a further extension to brexit. another delay. that's what the law says. ministers say they will adhere to the law but there was a huge question over what they will actually do. this is a downing street intent on crashing through the political sound barrier,
doing whatever it takes to ensure britain leaves, deal or not, on 0ctober britain leaves, deal or not, on october the 31st. borisjohnson said again last night he will not be seeking a further extension is how do they get round this law? who knows? thank you very much for joining us from westminster. lots of stories on the business live page this morning. 0ne stories on the business live page this morning. one that stands out has been talked about on a wake up to money. lots of detail there on the business life page. you're watching business live. our top story. bmw tells the bbc that workers at its mini plant in the uk could see their shifts cut in the event of a no—deal brexit. a quick look at how the markets are faring. trading now for nearly 50 minutes in europe and they are headed low. the
ftse100 almost i'm 0.5%. now snapchat to many of us is just pure social media fun. an app that lets you muck about with photos and share with your mates. but it wants to step away from that world where rivals facebook and twitter are under attack for their negative impact society, for cyberbullying or privacy breaches. it wants to be "a communications platform" so says claire valoti, snap's vice president international. clairejoins us now. welcome. most of us think about snapchat is a social media platform. why are you keen to suggest it is something different? essentially, it is something different. when the company was founded eight years ago, it was really built about being the fastest way to communicate to your real friends and that was really important and that's why you hear us talk about as being a camera company, we are open to the camera because we found people are using visual communication to talk, the
fastest way to communicate, so the premise of the whole platform is all about talking to your real friends. it's not about you as an organisation trying to avoid this kind of world of social media labelling where these companies are 110w labelling where these companies are now under scrutiny and being looked at in terms of what they do with data, privacy issues, security and all that? they found that eight yea rs all that? they found that eight years ago when social media existed and for them it was about being an escape from social media and they wa nted escape from social media and they wanted to create a platform people we re wanted to create a platform people were just talking to their real friends rather than creating an environment which was about broadcasting your life. it was more about having that one—to—one communication with people that you really deem to be close friends. you still must have the same challenges as the facebook and twitters of the world when it comes to limiting harmful content and things like that. the safety of our users is the most important thing and that's what we always focus on. i think
the one thing about, from the premise which absolutely help is on the platform, was our message absolutely help is on the platform, was oui’ message is absolutely help is on the platform, was our message is deleted by default because they felt it was going to be a natural conversation with your friends, if it was recorded and stayed there forever it would change what you said to each other so everything you are talking about and messaging deletes by default which means we are not keeping a lot of information about people and on top of that there is no public profiles, no profiles of people and you have to be friends with someone in order to communicate with someone in order to communicate with them. but also the fact it deletes and disappears means that there is no evidence, no history there. and somebody can get away with horrible nasty behaviour and it's just disappearing. with horrible nasty behaviour and it'sjust disappearing. obviously we talk about the messaging side of it, there's another side of it which is more content led, but no different to what you see in uk law that a telephone call or letter, we have to respect peoples privacy in one—to—one conversations. that's very the thinking behind
how the m essa g es very the thinking behind how the messages delete. you call yourself a camera company now and you do make a type of camera built into a pair of spectacles for people to have fun in whatever way they want. how is that going? are you thinking about launching other camera products? first i will touch on spectacles but snapchat is a camera app, opens to the camera, and 3.5 billion photos are taken every day through the snapchat camera, more images than cameras in the world, so before you can get to spectacles, we've got a lot of experience in creating camera. spectacles is doing really well in the sense that the whole purpose of spectacles is really about creating a public research develop and programme. it was about putting the product into peoples hands in the real world to see how it would go, and i think a lot
of people are focused on how it's going in terms of sales and that was never oui’ in terms of sales and that was never our objective. it was all about learning, because in our vision we believe there will be a time when augmented reality is here and we believe it will be in wearables.. massive flotation for you, shares we re massive flotation for you, shares were around $27 at the float. they area were around $27 at the float. they are a lot were around $27 at the float. they a re a lot lower were around $27 at the float. they are a lot lower and your shareholders wanted to make more money. how will you monetise snapchat more and get money out of the users? we are pleased with how things are going. if you just look at our revenue things are going. if you just look at oui’ revenue from things are going. if you just look at our revenue from advertising, and the international business in the last earnings, we grew 51% year—on—year. we still believe we've got a long way to go in growth and it's also about driving efficiencies in the company and have the whole company behind profitability, so we feel really positive in terms of how we are making progress. thank you very much forjoining us today. from
one big tech company to another. later apple will be holding its yearly launch event. we're expecting details on the next iphone and possibly some other product upgrades. but the talking point for apple is more political in nature, with the looming threat of trade tariffs threatening to have a big effect on america's richest company. 0ur north america technology reporter dave lee will of course be there, here's what he's looking out for. apple is a company that craves control. in the next few months, they will be interesting, starting with this iphone launch. most of their products haven't yet been affected by ta riffs their products haven't yet been affected by tariffs put in place by the usa, but that could change. on december the 15th, if president tom keeps his word, almost all of their products will be affected including its lucrative iphone. the question is, how is apple going to handle it? do they raise the price of their devices in a way which could upset their customers? a device one of the cost, eating into their profit m . cost, eating into their profit
margins? investors won't be happy about that. they could move production elsewhere, outside of china, but that would reduce their ability to make so many devices so quickly. apple will hope that this event is about good news, a better camera on the iphone, some new features on the apple watch, perhaps something completely new coming down the line. but never before in its history has apple been in so little control of the performance of its business. dave lee, bbc news, in silicon valley. you can follow that story on twitter. let's look at some of the other business stories which have caught our eyes in the media today. we've got this interesting tale from the usa about a couple who had some good fortune. a couple spent $100,000 which was put in their account accidentally. it's
like picking up someone's wallet, you've got to give it back. this couple spent the money on a camper van, cars, and one of overdraft fees and landed into hot water. they have been charged. they are not getting away with it, are they? no, that's the moral of the story. they knew what they did was wrong and i think anyone would, really. never a good idea to spend money which is not yours. absolutely. a quick word on this week ahead. lots of central bank action, and the federal next week. all eyes are on the ecb on thursday. it looks like a riot cut isa thursday. it looks like a riot cut is a big deal. —— rate cut. the big question is whether we will see further bond buying by the ecb. thank you for being with us. that's it from business live today. there will be more business news throughout the day on the bbc live webpage and on world business report. we'll see you again tomorrow. bye bye.
hi there. we may have had some mist and fog this morning. an autumnal feel for some of us. generally, that is clearing away and for most of us it's a dry and bright a day compared to yesterday and, as a result, it feels a little bit warmer. a ridge of high pressure dominating things for many of us, but out towards the west, this is the remnants of ex hurricane dorian, which will gradually bring in some outbreaks of rain across northern ireland, eventually into the west of scotland but for much of scotland, northern england, wales, the south—west of england, wales, the south—west of england, sunny spells. a bit of cloud moving its way eastwards. even across southern and eastern areas there will be some sunshine. top temperatures today around 17—20. through tonight, this area of rain will spread to the south—east. quite a lot of rainfall for a time across
the west of scotland but that rain it spreads into the south—east of england by the early part of wednesday morning. overnight temperatures, double figures. throughout wednesday, we will see the rain spreading further south and east but linked into the remnants of x hurricane dorian. with that, the isobars quite close together, so quite a blustery wind expected throughout the day but that should clear. the cloud and rain down to the south—east. a few showers across the south—east. a few showers across the west of scotland. sunny spells developing that these are the wind gusts. 25—115 developing that these are the wind gusts. 25—45 mph towards the far north and west. temperatures on wednesday, fairly similar to today. 17-20. wednesday, fairly similar to today. 17—20. may be 21 celsius in the capital. as we go into thursday. the weather system will clear away and then we have the remnants of x tropical storm gabrielle. that will move into northern parts of the uk and as it does so it will draw in
much warmer conditions. coming in from the south—west, the temperature is rising for much of england and wales and there will be some sunshine. some rain across northern ireland into southern scotland, northern england, wales. you will notice the temperature difference. in the north—west, 15—17. in the south—east, look at the warmer colours, 23—211. south—east, look at the warmer colours, 23—24. for friday into the weekend, plenty of dry weather. some sunshine on the way. maximum rising further. the mid 20s across the south—east of england, but for many of us, up into the 20s. by day.
you're watching bbc news at nine with me annita mcveigh. the headlines: extraordinary scenes in the house of commons as parliament is suspended amid uproarfrom opposition mps. shouting. chanting "shame on you!" mps hold up protest signs, and chant "shame on you" at the government benches. this is not, however, a normal prorogation, it is not typical, it is not standard, it is one of the longest for decades, and it represents, not just in longest for decades, and it represents, notjust in the minds of many colleagues, but in huge numbers of people outside, an act of executive fee at —— fiat.