Transcripts For BBCNEWS BBC Business Live 20170503

The ftse is down. The size of the divorce bill has investors worried and well explain why. And how do you fancy dinner with a stranger . No, were not talking about a first date, but a new app that promises to serve up a local, authentic home cooked dinner at the press of a button. And so today we want to know if sally or i nipped round to your place, what would you make us . Whats on the menu at your house . Let us know. Use the hashtag bbcbizlive. Hello and welcome to Business Live. Sendin send in your invitations. Wed love to come round for dinner sometime apple is the worlds most valuable company and it made another huge profit in the first three months of the year. But it was a bit of a mixed bag. The california based giant sold just under 53 billion worth of products as it continues to dominate the smartphone market. But surprisingly iphone sales actually fell by 1 mainly because customers are holding off purchases while waiting for the tenth Anniversary Model expected this autumn. They still sold over 50 million of them though including more of their expensive 7 plus smartphone. Apple shares were down 2 in after hours trading, but that is a mere blip if we look at the stocks long term performance. You can see here how apples share price has been rising over the last five years. It hit a record high of 110. 51 just ahead of this Trading Update making the Company Worth a whopping 773 billion. Over the last year alone there has been an increase of more than 60 this is partly because during that time iphone sales have gone up. But also because investors are betting that if apple brings back to the us its huge cash reserve that now tops 250 billion, they could benefit. Iphones are, of course, apples best selling product but services are the second biggest part of the business. That includes app store downloads, apple pay and apple music and they are now worth 13 of total revenues. Lets talk in more detail about what it means. Gareth holmes is Managing Director for europe, The Middle East and africa at sonobi which is an Advertising Technology company. Welcome to the programme. Thank you. Sally running through all the numbers. I wonder what was the stand out thing for you. Whats surprising about the figures . The continued growth. Some say it is a rapid growth. Some say it is a rapid growth. I think it is indicative of the general success were seeing of the general success were seeing of the technology industry. The softening in china is fascinating. It looked early that they were looking strong, late 14, early 15. However, that seems to have softened somewhat and they have met the head wind which is the local producers in china. They are local manufacturers and they are retaining shares. We see apple continue to strengthen whilst facing a head wind in china. You look at this very much from a Technology Point of view in term of what apple knows about us and how it will determine what they make for us in future and it is a fascinating journey. All the information that i provide by using devices, they are using all of that to determine what ill buy five or ten years from now . Yeah, it is also what youll buy, but where we as a species are going, theyre but where we as a species are going, they re understanding what but where we as a species are going, theyre understanding what our Consumption Habits are. They realise whilst they produce hardware they produce a software that we interact with on a daily basis. They are looking at the Experienceal Side of what we do. It is a smartphone also, but as humans, as a species, where are we going . So apple are innovating and they re are we going . So apple are innovating and theyre meeting what we need at the moment, but they are setting that expectation whats coming next for apple . That expectation is so important, the idea that people are hanging on, they are not really convinced that what apple is offering is revolutionary enough to upgrade so they wont change their phone yet so they wont change their phone yet so they have got to pull something drastic out of the bag to persuade us drastic out of the bag to persuade us to part with money to buy the next one . They have certainly made a rod for their own back and they have commented themselves upon that. They have seen strong upgrades for existing apple users upgrading to the new phone, they have seen strong transition from other smartphones into themselves, so what will be next . I think, into themselves, so what will be next . Ithink, we into themselves, so what will be next . I think, we are waiting on whats the next phone coming out on an annual basis . For apple they manage to do that themselves, dont they . They change our behaviour, they . They change our behaviour, they are making us want things we dont know that we want . Correct. The important thing to realise Companies Like apple are made up of people too and they are broad, diverse types of people so they understand where were going and what we want. From a research and innovation prospective, theyre right on the money. They have us on tenterhooks. Whats next shall we ta ke tenterhooks. Whats next shall we take a new upgrade for wait for the 10 . Gareth, thank you. The worlds Biggest Carmaker Volkswagen has seen a massive jump in profits for the first three months of this year. The company made 4. 77 billion which is 40 more than a year ago. It sold 2. 5 million cars. The Chief Executive says cost cutting and greater efficiencies have been driven the improvement. But the Diesel Emission scandal also continues to have a financial impact. So far it has cost more than 20 billion. Who wants to buy alitalia . Youve got 15 days to express your interest says italys Industry Minister this morning. The troubled Flagship Airline is in administration after the Italian Government formally approved the move. The company said its Flight Schedule would continue to operate as planned, while administrators examine whether the firm can be turned around. Alitalia has received more than 7. 5 billion euros from the italian state over the last decade but without further help, it faces an uncertain future. Indian it firm infosys will hire 10,000 workers and open four Technology Centres in the United States over the next two years. It comes amid criticism that firms are using lower paid Foreign Workers on temporary visas. Many of them rely on the hi b visa. Thats the visa President Trump has told federal agencies to review. More information on the bbc Business Live page. The ftse opened down this morning. We will look at the markets and look at the impact of sterling on all of that as well. We have seen that rise this morning. Full details, of course, on the website, the bbc Business Live page and dominated as you can see this morning by a dominated as you can see this morning bya uk dominated as you can see this morning by a uk story, sainsburys one of the biggest retailers here in the uk. Its sales are down and profits have fallen. Deutsche bank is germanys biggest lender and one of the most important pillars of the International Banking system. Its got a new top shareholder. Chinas hna group has increased its stake to nearly 10 . John sudworth is in beijing. John, talk us through the significance of this if you would. Well, Deutsche Bank, of course, is a bank looking for cash because of its legacy issues and chinas hna group is seemingly a company with a lot of money to spend. It has been on an Acquisition Spree around the world. As you say, it would make it Deutsche Banks biggest shareholder with Something Like 10 of shares. So its great news for Deutsche Bank. What i think is interesting from a chinese prospective, it is against the trend. 2016 was the Bumper Yearfor against the trend. 2016 was the bumper year for outward investment, Chinese Companies heading off abroad, but the government has been putting the brakes on out of a fear ofa putting the brakes on out of a fear of a sliding currency, Deutsche Bank is the next one in its sights. Interesting. Thank you john. An unusual day in asia. Most of the main markets were shut for another bank holiday. A midweek one which is unusual. So we had australia open. You can see down by nearly 1 and bombay and also this is wall street the night before. Europe, in asia, Lilacs On Financial minister kets. You can see they are all down slightly at the moment. It is partly about the earnings we have been getting through. Companies like in london for example, sainsburys, the big retailer is down 2 at the moment as are other stocks that have come out with disappointing earnings, but there is a little bit of concern about the uks exit from europe, how much it will cost, thats causing sterling to wobble, but also as well, sunday in france. What will the outcome of that be . Political risk is back on the agenda in europe. Samira hussain has the details about whats ahead on wall street today. The Federal Reserve will release a statement at the end of their two day meeting on wednesday where it will release its decision about interest rates. Most people dont expect a hike this time around as the fed will be looking at the Economic Data from the First Quarter of this year. In other news, social media Giant Facebook will be reporting earnings for the past few quarters. Facebooks mobile ad sales have been soaring and it has been boosting its overall growth, but in november the company warned that ad growth would likely slow meaningfully. And finally, luxury electric car maker tesla will report earnings. The company said in april that deliveries jumped 69 from a year ago bouncing back from previous delays. The last month tesla became a bigger car company than the us giant, ford. Joining us is richard dunbar, Investment Director at Aberdeen Asset management. Lets pick up on that theme that samira was touching on there, we have the raft of the results and the size of the companies is staggering. We talk about what they do to our day to day lives, if you look at the value of them, some hefty numbers. Talk us through that . Well, these success talk us through that . Well, these success of the past ten years and they have led the us stock market up, facebook,am zorngs netflix, microsoft, these are the ones that have been growing and producing the innovative things that we are all using. They have started to bring in profits on the back of that particularly Companies Like netflix and amazon which do a lot of the same, buta and amazon which do a lot of the same, but a lot of the profit. And amazon which do a lot of the same, but a lot of the profitlj remember same, but a lot of the profit. |j remember when it listed on the markets and we asked if it would make money . They have managed to bring in millions of customers and they are starting to monetise the customers and getting advertisers to pay to access those customers. We are starting to see profits coming through and cash coming through and the Stock Markets are describing huge valuations and huge size. From the point of whats going on in markets in trading of these stocks, people are buying the stocks, these particular companies in anticipation that they will be repatriating their cash, that it is growing overseas in the anticipation that President Trump will give them a Tax Incentive to do that . There is two sides of it. Fur buying apple, you are buying a huge cash pile. The management are charged with using that well and with the results yesterday, they said they would return some of the that cash to shareholders. Donald trump would like to see a lot of that cash sitting in the United States in a Lower Tax Regime and being invested oi Lower Tax Regime and being invested or used to make acquisitions in the United States. Shareholders own that cash and have a vested interest in making sure the cash is used wisely. Lets get back to brexit. Theresa may pointing out that she will be a bloody difficult woman as far as the negotiations are concerned. We will talk about the implications of that later. What do the markets make of that . The markets would like her to be wise, far sighted and intelligent in the negotiations as well as being a bloody difficult woman 0ver in the negotiations as well as being a bloody difficult woman over the last couple of days we have seen the complications of whats going on with brexit. The personalities involved . Exactly. So i think these are involved . Exactly. So i think these a re early involved . Exactly. So i think these are early skirmishes. I hope things continue slightly better than we have seen over the past couple of days, but we will see. One to watch. You will be back to talk us through some more stories later. Still to come, fancy dinner with strangers . How about a home cooked dinner in a foreign city, with people you dont know . We meet the woman behind the app that lets you find somewhere to eat, anywhere in the world, cooked by a local. Youre with Business Live from bbc news. Have a first, though, lets lingle the open linger a little longer on this. Supermarket giant sainsburys has Just Announced a 8. 2 fall in profits for the year as it warned ofa challenging trading market. Recently prices have been falling amid a fierce price war between supermarkets, but a new report this morning suggests prices are now falling at their slowest rate since november 2013. Rachel lund is from the british retail consortium. Rachel, tell us a little bit more about the trend you are seeing in the future. Our data we released today showed that shop prices are down 0. 5 on last year. As you said, the lowest rate of deflation to nearly three years. It is clear the underlying cost pressures are finally feeding through into the shop floor. So prices are going to be going up, that is what you are saying . Yes, but we should put it into perspective, not huge price rises. The retailers are increasing far greater increases in costs that are filtering through to the shop floor. And this is the problem, why sainsburys is struggling, because they have to pay more for the goods because of the fall in the value of sterling but they cannot pass it on to the customer fully. That is a problem across the industry. Sterling is down 12 or 13 compared to where it was injune. These are big increases in the cost base combined with the impact of the National Living wage, the apprenticeship levy, is this rates for evaluation. All of these things are putting massive pressure on retailers cost space. Thank you, rachel. Prices are on the rise in the shops in the near future. Rachel. Prices are on the rise in the shops in the nearfuture. That Isa The Shops in the nearfuture. That is a theme on the Business Live page. We have touched on the fact we are talking about sainsburys, but ahead of that we have also had a warning of wetherspoon s. It echoes the same theme. Wetherspoon s, the bossis the same theme. Wetherspoon s, the boss is very pro brexit but some of the impact of that is a fall in the value of the pound that has made imports more expensive. The firm iu ns imports more expensive. The firm runs about 900 pubs in the uk and ireland but says it is expecting this year to be a little bit better. It has reported a 11 rise in like for like sales. This is Business Live, the top story, the worlds Biggest Company by market value, apple, has reported a mixed set of results. There was a surprise fall in Iphone Sales Force that we have been discussing that, about customers who are maybe hanging on and not upgrading straightaway. That is having an impact on the bottom line for apple. A quick look at how markets are faring. In europe slightly down across the board and the Pound Wobbling a little. Lots of discussion about how expensive it will be for the uk to leave the European Union in the press today, causing a bit of a headache. We will show you some of those stories later. Now how do you fancy Nipping Round to someones house for a home cooked dinner . Something you might do with friends, but what if youve never met the host . Thats the idea of an app that lets you find somewhere to eat anywhere in the world cooked by a local. The person who lives in home. Its just the latest in app to disrupt a Traditional Market and cash in on the so called Sharing Economy. Revenues in the Sharing Economy are forecast to grow over 20 times times to £335 billion between 2015 and 2025. 0ne business hoping to benefit from this is vizeat. The platform allows diners in over 110 countries to connect with locals in order to go to their house to eat. Vizeat currently has over 22,000 hosts and was selected by apple as one of the top three apps of 2016. With me is camille rumani. Shes the co founder and Chief Operating Officer of vizeat, which lets travelers book Food Experiences in destinations around the world. Good to have you here, camille. I must admit, i have been looking at your website this morning in research, and i was fascinated by it, looking at all the various posts, the kind of food they cook, what you can expect when you go to their home. So many questions came to mind. To start with, how did you start all of this . You were very youngin start all of this . You were very young in 2014 when you began this. We started the company injuly 20 14. I was living and working in china, in beijing. Iwas 14. I was living and working in china, in beijing. I was invited by my chinese friends to share Chinese New Year and other special occasion dinners with their family and it is the first time i have experienced Chinese Culture from the inside. I found it was such a shame to travel toa found it was such a shame to travel to a city where millions of People Living but you dont actually meet any them. The Perfect Moment to meet the miz around a Food Experience like a the miz around a Food Experience likea dinner or the miz around a Food Experience like a dinner or walking class. So lets say im in paris and i decide i wa nt lets say im in paris and i decide i wantan lets say im in paris and i decide i want an authentic french meal. What happens then . What if i turn up with sallys kids and we all arrived on the doorstep and that is not quite what they were expecting . Usually what they were expecting . Usually what happens, it is like about meeting someone, you talk to them before you get to their house. They have their profile, so you can imagine the moment, you have pictures sent to the host as well to that the place and the type of food and everything. So you know them before getting there. They will ask a question about your children for example. That is all about meeting new people. The relationship starts before the meal. I understand you have all your ducks in a row, because i was grilling you about that horrible scenario where you go to someones home, and it turns into something very scary after desert. You have lloyds of london to cover you from an Insurance Point of view, and that is to cover any issues for the host or the dinner guests. Exactly, from the very beginning, the security and it was our top priority. The Peace Of Mind of the guest and the host is key for us. Lloyds of london covers hosts and guests for the periods up to £1 million. But we have never called it, it has been more than three yea rs it, it has been more than three years now. But the idea is to show we are doing our best to get all of the host. We have one to one interviews with each of them, and we have hosts in the country now and we have hosts in the country now and we have never had any problem. Have hosts in the country now and we have never had any problemm have hosts in the country now and we have never had any problem. It would not be a disruptive at it didnt come with some criticism. I know you got up the noses of some french restaurateurs, and the unions went to happy. How can you persuade people that you are not taking away business, you might be adding to it . It is different because you dont do a Vizeat Experience when you are hungry, you do it as an activity. It is about meeting locals. They dont do it like five times a week. The idea is to keep this occasional. Do it like five times a week. The idea is to keep this occasionallj would imagine it is a very cultural thing . Exactly, and food culture, in europe it is our key focus on the main cities are paris, barcelona and rome for now. But we have hosts everywhere, we see in very strongly. We work with london and partners as well to promote london as a Food Destination and we have lots of things to do on that as well. Camille, really nice to you. She is 27 it is very frustrating when we meet someone who 27 it is very frustrating when we meet someone who are 27 it is very frustrating when we meet someone who are way 27 it is very frustrating when we meet someone who are way more successful tha n meet someone who are way more successful than us at a much younger age. She doesnt need the bank of mum and dad. Ijust want to take you through some tweets. Tom says i have a nigerian, italian, yorkshire family so he is offering a roast dinner with some spice. Has the bbc canteen closed, the presenters are desperately begging for invitations. Still loads more in the programme, stay with us but in the meantime this is how to keep in touch. The Business Live pages where you can stay ahead with all of the breaking news. We will keep you up to date with all the latest details, with insight and analysis from the bbcs Tea M Insight and analysis from the bbcs team of editors ride around the world. And we want to hear from you too. Get involved on the bbc Business Live web page. 0n too. Get involved on the bbc Business Live web page. On twitter, we are at bbc business. You can find us on we are at bbc business. You can find us on facebook. Richard is back. If icame to us on facebook. Richard is back. If i came to your home, what would you cook for dinner . My Signature Dish would be salmon poached in white wine served with salad. That sounds good. Dinner tonight sorted, thank you, richard. Lets talk about someone you, richard. Lets talk about someone who may not be getting many more dinner invitations. Theresa may, all of the stories that have come out this week of the meeting. Now the headlines say thatjuncker will find her a bloody difficult woman, not often we can say that word on the telly but it is relevant here. In the Financial Times on their front here. In the Financial Times on theirfront page, they here. In the Financial Times on their front page, they have a story about the brexit bill. How do they work that out . Good question. All a nalysts a re work that out . Good question. All analysts are looking at assets between zero and 100 billion and liabilities of zero and 100 billion, and the difference between those two is the figure that one comes up with. A fairly wide range, i suspect some tricky negotiations. How does this line about her becoming a difficult woman play out . Does it suggest you will take a hard line and it gets the uk further advanced in these talks, or actually this puts up a wall and these negotiations become much more difficult than maybe they need to be . I suspect it is the latter but im not sure anyone really knows. Some of the noise emanating from the dinner at downing street, from brussels, im not sure we have an awful lot of clarity. Still as much uncertainty as there was. Thank you could walking us through that and we will keep an eye on how all of those in this years and is progress. Thank you for your company, have a really lovely day, we will be back tomorrow. A very good morning to you. The weather the rest of this week will remain more or less the same in your area. We have the Sunshine Yesterday and he is a beautiful picture from ayrshire. The chances are they will get the Sunshine Today and tomorrow. For most of us, it is also a dry morning and afternoon but not com pletely morning and afternoon but not completely dry everywhere. There is a little bit of rain in the forecast. We can see across east anglia and the south eastjust about if you spots of rain. Most light and if you spots of rain. Most light and if anything it will stay overcast through the course of the day. Not so through the course of the day. Not so great everywhere, the weather, today was that this is what it looks like later on in the morning. Across scotland, beautiful weather, lovely across northern ireland, throughout the lake district, most of yorkshire into wales. Then we get into the midlands, the far south east of wales and western parts of england, the cloud tends to increase. The South West Of England is fine, but this Rain Here Across East Anglia the south east and the cloud will make it feel a little on the cool side. For places like an kent and sussex into london, essex, norfolk, suffolk, a fairly cool day. Temperatures went be any higher than around about 13 degrees or so. For a change, the south eastern portion of the uk in the breeze off the north sea coming out of the north east, this place of the country will be on the cool side, whereas some parts of Western Scotland could get up to 17 or 18 degrees. So another Beautiful Day there in the west of scotland. Through this evening and overnight for as long as we keep these north easterly winds, the weather doesnt really change an awful lot, so we doesnt really change an awful lot, so we keep dragging in the cloud and spots of rain into east anglia and the south east. Maybe that Dampness Moves in a bit further to the midlands and western parts of england, but many western and Northern Areas stay dry in the thursday morning. And tomorrow, little change. The best of the weather across the northern half of england, beautiful across Western Scotland, yorkshire, the south once again on the cloudy side. There might be some glimmers Of Brightness Come Thursday and friday. Little change towards the end of the week. And then as we head into the weekend, we will kind of be between Weather Systems, one Weather System out there in the atlantic, another one across central and southern parts of europe. We are in between, so parts of europe. We are in between, so that means it should be dry with some sunshine throughout. Hello. Its wednesday. Its 9am. Im victoria derbyshire. Welcome to the programme. This morning. Strong and stable leadership. Strong and stable government. Strok and sta ble and stable government. Strok and stable leadership. Strong and stable leadership. Strong and stable government. Strong and stable leadership. The general Election Campaign gets underway today meaning some of you are going to hear plenty more of those mantras over the coming weeks. Whilst others may never get to hear them. Reporter are you aware there is a general election in june . No. They will still mess up the country. The Political Parties are out in full campaigning force the tories are warning that voters face a tax Bombshell Ifjeremy Corbyn wins. Labour say thats a lie