tv BBC Business Live BBC News September 11, 2019 8:30am-9:01am BST
this is business live from bbc news with tadhg enright and sally bundock. apple launches its latest iphone but can a flagship device thats more evolution that revolution really take a bite out of the competition? live from london, that's our top story on wednesday september 11th. more cameras, more power, more battery life but is the latest iphone still the benchmark? we look at apple's latest offering as well as its booming services business. also in the programme, beijing exempts some us good's from its latest round of tariffs
as american firms in china admit they are taking a hit from the ongoing trade war. and this is how the trading day has started in europe. optimism in the air that governments, particularly germany, and central banks are about to invest to avoid a recession. analysis on that and all these stories coming up for you shortly. and we'll be getting the inside track on learning english in a virtual world from a boss who began in venezeula. and with thousands of shops closing here in the ukjust in the first half of this year, today we're asking what it takes to get people back into their local shops. perhaps the london department store selfridges has the answer after it announced it's opening a cinema. let us know your thoughts. just use the hashtag bbcbizlive. perhaps it could be something as simple as free parking!
hello and welcome to business live. the world's biggest tech giant apple has launched a new suite of products: three new iphones, a new ipad and the fifth generation apple watch. it also revealed a new gaming platform called arcade and the price of its new video streaming service, apple+, which at $4.99 is cheaper than its rivals. features on the new phones include faster processors but focus mainly around the cameras, with the top model having four — yes, four — one on the front and three on the back. there are so many there are so many cameras, there are so many cameras, i have lost track, we will get the detail ina lost track, we will get the detail in a moment! the iphone is traditionally apple's big moneymaker but many would its future lies elsewhere. sales at the tech giant rose 1% to $53.8bn in the last
quarter but for the first time since 2012, iphone sales represented less than half of compa ny‘s overall sales. and numbers like that could be hard to repeat if president trump moves ahead with threated tariffs on chinese goods in december. analysis by reuters suggests 92% of hardware sold by apple would face levies. our north america technology correspondent dave lee was at the apple event and got to try out the new devices. this is the iphone 11 pro, which is the more expensive version of the new set of iphones. this will in fact is the max version, so the bigger version of the three. you will notice compared to the iphone 11, there is actually three camera lenses on this one rather than just two on the other. the extra lens is the telephoto lens and what that means is you can get much closer images than you would without having to actually physically move yourself. so, what does that look like? let me show you. this is the shot here.
this is the ultrawide angle, you can get plenty of the image in there. then we go to the wide angle lens and it moves in slightly and the telephoto lens gives you added zoom. the crucial thing with that of course, no degradation in quality, which is important if you want nice, crisp photos. now, having extra cameras like this, this isn't something that just apple is doing. we know that huawei, one of their major competitors, is planning to release a smartphone with a whole array of cameras as well. so what it's going to come down to is the quality of the software and making it as easy as possible for people to make the most out of having these extra lenses, these extra cameras on their device. dave knows about the cameras, he does. spencer crawley is co—founder at firstminute capital who invest in tech firms. what did you make of it all? thank you for having me back, no question that this is very exciting. this is
all about incremental product improvement, not as exciting as the steve jobs days but this is apples moving —— apple moving toward services, particularly on demand television streaming. what did you make of the incremental improvements, and a bewildering number of cameras. most products are based around simplicity so this is an interesting move, here, you have an interesting move, here, you have a story where, the iphone sales in general have plateaued, 800 million of them in the world, as users, they are trying to build a platform, and the platform is to say, the next iphone that you buy will hopefully be another iphone, and there is subscription services to lock people in. let's talk about that, subscription services, that is where they will get monthly income, trying to draw people in in every direction, whether it is storing stuff on the cloud, watching television, other services they offer. it is about content, apple
arcade around games, apple pay, apple tv, the move everyone was watching out for was where they would price tv+. it is cheap. it is cheap! you may not have to choose between netflix, disney plus, apple, it is the quality of the content. talking of the price, there has been a concern about ever escalating price, price fatigue is creeping in. you have got a cheaper entry level new model, so people can go out there, get a new iphone that will actually be relatively, i say relatively, relatively easily priced compared to other one. they have been playing around with this, they announced $1000 iphone one year ago asa premium announced $1000 iphone one year ago as a premium product, then they emphasise the similarity of product with the cheaper version. there is experimenting going on, then, the play is the services. nice to see you, thank you for coming in. so
much more detail, if you are a ha rd core much more detail, if you are a hardcore apple phone, i know there are many up there. let's take a look at some of the other stories making the news. the state of california is close to passing a law making it tougherforfirms like uber and lyft to classify their drivers as independent contractors, giving workers employee rights. the new law will force gig economy firms, from ride—hailing to food delivery, to pay workers minimum wage with health benefits and paid holiday. british airways can says it will take "some time" for flights to get back to normal following a two—day strike by pilots over pay.the airline said nearly 150 aircraft, more than 700 pilots and 4,000 cabin crew, are out of place. ba cancelled almost all of its flights on monday and tuesday. south korea has said it will file a complaint with the world trade organization over japan's tighter export controls. injuly, tokyo imposed new controls on exports to south korea of three materials used to make smartphones. that's amid a diplomatic row about compensation for forced labourers during japan's occupation
of korea during world war two. we have an interesting development in the trade spat between the us and china. in the past hour, china's ministry of finance has announced plans to exempt a range of us products from additional tariffs. monica miller is in our asia business hub with the details. what can you tell us. 16 categories of products will be exempted from us tariffs, head of a fresh round of trade talks expected to take place in washington next month, this exemption is scheduled to go into effect next tuesday and last for about one year, including fish meal and some lubricants and whey and this comes out hours after a survey
by the american chamber of commerce in shanghai, testing how the american companies were doing there. it showed 51% of respondents said chinese tariffs have hurt their firms and only half expect revenues to grow, that is down from 81% one year earlier. thank you very much. what has been happening on the markets? investors seem to be more confident that a no—deal brexit can be avoided and are seeing signs that trade tensions between the us and china are becoming less tense. that lifted most of the main indices in asia over the past session. and that's set the tone here in europe at the start of the new trading day. the sacking of the us national security advisorjohn bolton is on investors minds. they see it as likely that iranian oil exports could return to the market. the mood of the week is still being set by the wait to hear from the european central bank on thursday about its plans to stimulate the eurozone economy with signs of a recession on the horizon.
and now let's cross to vivien nunis who's got details of what's ahead on wall street today. investors will be watching some big—name food and beverage stocks today after some significant falls on tuesday. shares in the fast—food chain wendy's were down 10% at the close, after an investment firm downgraded the stock, describing as risky, the chain's decision to invest $20 billion so it can start selling breakfast goods. but investors do seem to think the move will be a worry for burger rival mcdonald's — its shares closed down 3.5%. from fast food to coffee — starbucks stocks closed down 4% after news broke the chain has provided information to the security and exchange commission about its accounting practices. on the economic calendar for wednesday, there is data about producer prices and wholesale inventories. joining us is george godber, fund manager, polar capital.
good morning. a lot of news flow at the moment, today, on the markets, it feels quite quiet at the moment, most looking to the ecb tomorrow. it feels quite quiet at the moment, most looking to the ecb tomorrowm looks quiet but actually it is like a swan and there is a huge amount of activity under the surface, massive rotation, biggest since the tech bubble and financial crisis, momentum stocks are being turned into value stocks and what is causing that is a very significant change, governments around the world to fiscal stimulus, governments moving to spend money, what caught out moving to spend money, what caught our attention yesterday is the german finance minister saying, "we have billions and billions of euros to spend on the german economy", not words that you hear very often from the german finance ministry! interesting cultural point, traditionally, very fiscally conservative, they love to run budget surpluses, the idea they will unleash the cash coffers and stimulate things. unique position,
they have a budget surplus, excess money, and they have a large current account surplus, they export more than they import and so they are in a financially strong position but the economy has been hit hard by the trade war and hard by the auto fallout. funny you should say that, chancellor angela merkel has just been speaking to producers in germany, she was talking about the us china trade conflict hitting the german economy, which has traditionally relied on exports to propel itself, this is the real problem for germany. there has been a massive fall in the uptake of german cars in china, they bought them all in previous years. really ha rd them all in previous years. really hard hit, the other problem really hurting germany, hurting lots of economies, quantitative easing, it presses down the german government bond has gone into negative territory, that is insane. basically, you pay the german government money to borrow money, to borrow money from them. that is upside down. what is happening is
the banking system has a lot less money to lend to small businesses. quantitative easing has moved from stimulating growth to crush and growth, so that is what you have seen growth, so that is what you have seena growth, so that is what you have seen a fundamental shift in policy and a big shift in markets, it looks very gentle but a big rotation is beginning to happen. we will see you a little later. george is coming back for more. still ahead: learning the lingo — for the young or old, online language courses are transforming the way we master a foreign tongue, but is it the death knell of class—room learning? you're with business live from bbc news. let's talk some more about cars, and german cars, for that matter. when a company like porsche
produces an all—electric vehicle, you know that times have changed. at the frankfurt motor show, its proudly displaying its new taycan, a ferocious machine that can reach 60 miles an hour in three seconds and reach a top speed of 161 mph. but why did the company do it and will the battery powered beast actually make any money? theo leggett has been speaking to the porsche ceo, oliver blume. we decided to go electric because electro—mobility fits perfectly with porsche because of its acceleration and its opportunity on the one side. on the other side, is our goal of the company strategy, suspendability. to combine both of this was a very clear decision to go to electro—mobility. but it's a very radical step is a tick, for a company that's traditionally focused on very meaty, real wheel sports cars that have evolved over the years? it seems to be radical and it's kind of a step in a new era but when you look back, we are coming from the racetrack
and for example, we are the le monde winner three times in a row. we already used electro—mobility and we always engineered innovations on the racetrack to put them on the road. so it was a logical consequence to do that and in future, we will continue with petrol engines like the 911, we will continue with our hybrids like the panamera and the cheyenne. and now we need to be flexible and sustainable for the next decade. but there is a problem here isn't there? it costs more to make electric cars, therefore they are less profitable? you are right, only the material costs are much higher than normal combustion cars and we think that electric cars will be part of the future and so with our company, we have to tackle that. therefore we decided to make a profit improvement programme two years ago to improve our processes, to watch our costs and to look for new business models in order to compensate this higher cost. that's the situation of today, but in future there is much more potential to reduce costs also in electro—mobility.
you're watching business live, our top story: apple has unveiled its latest range of iphone handsets, which feature more cameras, a faster processor and longer battery life. how many how many cameras, how many cameras, how many cameras! not more than you would expect! one on the front, three on the back. not more than you would expect! one on the front, three on the backlj have been talking about it since 5am, soi have been talking about it since 5am, so i know! laughter a quick look at how the markets are faring. a new
tone has been set on the us china trade war, restrictions lifted on some us goods being imported into china. optimism too that even germany could be about to unleash some fiscal stimulus to reverse the threat of recession. now, lets get the inside track on the business of online learning. andres moreno's founded his language startup six years ago, helped by us funding after local latin american investors turned him down and his firm uses the cloud to let students learn english online 24—7, with teachers via online tools like skype — forget tapes or cds. and he's tapping into an increasing middle—class in latin america. thank you for the invitation. more than six years, isn't it. it is ten, we are getting old! i am forever
young. tell us about how this works, young. tell us about how this works, you started in venezuela, you are venezuelan, it was doing extremely well there and growing quickly. we started there, i am venezuelan, we share a common tongue with 400 million other people, expanded to the rest of spanish—speaking latin america a few years later into brazil and now we cover all of latin america, that is over 650 million people we are getting to. the service is tackling the emerging middle class, everyone wants to learn a language but the alternative, talking about this before, go to a highly prized off—line school, get in traffic, drive there, the teacher is not native, if you the old books and photocopies and you become an expert in grammar but have a hard time speaking. we solve that by going online and having online tutors. when i looked at your business initially, i thought to myself, so many companies that do this, not that innovative, and also, there is
apps. that innovative, and also, there is apps, and! that innovative, and also, there is apps, and i often see advertising on the underground, learn french in three months, use this app. audio system, whatever. i thought it was a very system, whatever. i thought it was a very common system, whatever. i thought it was a very common tool in many ways, but where you started, and where you sort of spread, rapidly, this was quite an innovation. deja vu when i was trying to raise money for this in silicon valley, that is what people thought back then, free apps, go to youtube, free video, or, off—line school, get education there. there is a space in the middle that is very valuable, people wa nt middle that is very valuable, people want the convenience of studying online, anytime, anywhere, but they wa nt online, anytime, anywhere, but they want the high quality and personal touch of having a teacher. you can be there, in your pyjamas, you can't sleep, just turn on the online english app, you will have an instructor with you all the time. the minimum subscription is one year, not cheap either, is it, does that put off people, that one—year commitment? it would maybe put me off, i don't know if i can see this
through for 12 months. off, i don't know if i can see this through for12 months. learning a language takes time, it is like getting fit, going to the gym, i can tell you own one—month package but the reality is if you want to run a marathon, you have to commit for some time. —— sell you a one month package. you need a year to become flue nt package. you need a year to become fluent in english. we talked about the price, by comparison to an off—line school, if you go to some off—line school, if you go to some of the brands you might know in latin america, it is three a year, so latin america, it is three a year, so 40 every month for unlimited access is quite a good deal. ironically, you are starting an old school as well, in bogota, you are blending the virtual world with the real world. back to futures, 750,000 students over the region, that have enrolled in open english, that is a lot of football fields full of people learning english, a lot of small classrooms! we realise there isa small classrooms! we realise there is a segment of the population that still wants to have an off—line experience, they want the social
experience, they want the social experience of being with others, they think they are going to, they will be more disciplined if they go toa will be more disciplined if they go to a physical location and are more motivated, i love pellet on, i do that at home but sometimes i want to go to that at home but sometimes i want to gotoa that at home but sometimes i want to go to a spinning class, the energy, the music, that is what we provide. we had the first two in bogota, you can geta we had the first two in bogota, you can get a seamless experience, studying online or off—line, with the same tools. great to meet you, fascinating. thank you for having me. thank you for coming in. great to have you on the programme. british insurance firms are warning that there's a risk of more road accidents as we move towards using driverless cars. there are calls for more regulation to ensure cars are safe as automated systems that take over from human drivers. our technology correspondent rory cellan—jones has this report. imagine you fell asleep in an automated car, and the system brought you to a halt in the fast lane of a motorway. the insurers are
warning this kind of accident could become common unless there are new safety regulations. the government says d riverless ca rs safety regulations. the government says driverless cars could be on uk roads as early as 2021, but can't insurers say at first they will be quite limited in what they can do. they want new rules for how they should operate. press the stalk at the end, the button on the end of the end, the button on the end of the stalk. what this car really needsis the stalk. what this car really needs is a driver monitoring system to watch what i am doing. the car's got to be able to monitor whether you're paying attention, and if you're not paying attention, the system must automatically try to wake you up. one rule would see motorists forced
to watch a safety video before using an automated system the first time. driver monitoring would be an essential feature. and at first, automated cars will only be able to operate on motorways. automated drive not available. please take over. but they will also need be able to deal with situations where the motorist cannot take over the wheel. so what's happened is i disobeyed the car, i did not take over when there were roadworks, and it came to a halt automatically, parked us in the lay—by. but that has got to be mandated in these new autonomous systems, according to the motoring industry's insurance research body. a little bit scary. sign of the times. we will be talking about more signs of the times. bbc has this latest news on retailers, shutting... nearly 3000 stores in the first half of this year on the ukhmh the first half of this year on the uk high street, it has been in such dire straits for such a long time. what you are seeing is, we have the highest online sales penetration of any country in the world. the uk is really a forerunner of what you will see around the rest of the world.
the problem is, for consumers, they really love the convenience, and the only way to survive is to be omni— channel, both online and physical stores, and really completely integrate the two. in the case of the uk, the online economy is much more developed, in some other countries, in ireland, you cannot get as much delivered or as easily as you can hear, where you can order something on amazon and have it delivered in the same day. the uk has become almost like an experiment dish for a lot of us tech firms, massively high penetration of smartphones, trust in smartphones as well, fintech is very high and so we have seen some of the biggest digital disruption in the world. what has happened here will happen elsewhere. it is the fallout, city centre is having to rethink what they are about. while we go there and what for. city planners are having to think, how will we get people back in? people are prepared
to go there but you must reconfigure parking and think about other things, another story about selfridge's launching a cinema, experiences are high. jd sports, like—for—like sales up 10% in the uk, vary on channel, they are opening a 20,000 foot store in times square, because combining both is working, unless shops alter, then it is going to continue. thank you, thank you so much. your thoughts on this, what will draw you back to the high street? quite if you have mentioned the issue of parking, you wa nt mentioned the issue of parking, you want parking to be close and free if possible. and football bore her said, more butchers, bakers and greengrocers and free parking, more specialist stores. is another viewer says, "quality one—off stores, independent shops that will draw people in", visualise, on twitter, thank you for your comments.
talking point for longer to come. more online, see you next week, thank you very much. rain in the forecast over the next few days but they are with it, by the time we get to the end of the week and into the weekend, things looking drier and brighter, and warmer. for today, rain looking drier and brighter, and warmer. fortoday, rain at looking drier and brighter, and warmer. for today, rain at times, with that, fairly blustery conditions, courtesy of the remnants of the ex—hurricane dorian, moving out of iceland, that is the centre of the low, whether front struggled across the uk, isobars together, thatis across the uk, isobars together, that is why it is windy. the rain will move away towards the south, further north, sunny spells developing, and some showers into the west of scotland. that cloud and rain across southern parts may be a
little bit stubborn to clear away, lingering on this afternoon, the patchy rain, and also, blustery conditions, as i mentioned. these are the wind gust, 30 to 40 mph, for many of us, and temperatures today will be getting up to 70 to 22 degrees. as we go into thursday, we have remnants of ex—tropical storm gabrielle, that will push its way in across northern parts. as the name suggests, it is bringing tropical air, moving on from the south. quite humid on thursday as well but bringing the rain. —— getting up to 17 to 20 degrees —— 17 to 22 degrees. 15, 17 degrees, 23, 20 four celsius further south, and it will feel quite warm and quite tropical. as we go through later thursday into
friday, the weather system isjust going to sink to the south, high pressure then developed for many of us, weak weather system in the north, bringing outbreaks of rain, for most of us on friday, dry day, and there is going to be some sunshine. one or two mist and fog patches early in the morning but they will clear up readily, and by they will clear up readily, and by the afternoon, temperatures will be down a little bit, 17 to 21 degrees, over the weekend, temperatures ramping back up again. certainly, by sunday, south—east especially, temperatures up into the mid 20s but those temperatures not doing too badly, 18 to 22,20 those temperatures not doing too badly, 18 to 22, 20 three celsius. "18 -- 18 to 22, 23 —— 18 to 22,23 celsius.
you're watching bbc news at nine with me annita mcveigh. the headlines: mixed messages from labour on brexit —, its deputy leader tom watson calls for another brexit referendum before a general election is held. the message puts him publicly at odds withjeremy corbyn, who wants to prioritise a general election. a record number of migrants crossing the channel — we have a problem with the headlines but this is about the home office extending the length of time to two yea rs, extending the length of time to two years, international students can stay in the uk after finishing their