tv BBC Business Live BBC News April 26, 2018 8:30am-9:01am BST
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this is business live from bbc news with sally bundock and ben thompson. making new friends — facebook reports bumper results despite the biggest scandal in the firm's history. live from london, that's our top story on thursdsay the 26th of april. sales up 49%, profits up 63% and 13% more daily users — if facebook is a firm in crisis, its results don't reflect it. we're going to look at why. also in the programme, samsung cashes in it's chips. the south korean tech giant posts bumper profits as demand for it's memory chips grows. and markets in europe are mixed as investors trawl through the many earnings reports coming out across
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the globe, and keep one eye on the european central bank. and love them or loathe them? we're talking caravans later, with one woman who's trying to do for caravaning what glamping's done for camping. so, let us know — love or hate? would you pack up the caravan for a holiday this summer? just use the hashtag bbcbizlive. welcome to the programme. it isa it is a completelyjam—packed programme. there is so much news out there with regards to how the big companies in the world are doing. we start with facebook — because despite the storm of controversy over its handling of our personal data, the world's biggest social network is more popular than ever. facebook earned just under $12 billion in revenue in the first quarter — up 49% on the same period last year, and almost 5 billion of that was profit, a 63% rise.
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2.2 billion people are now logging on at least once a month — up 13% on last year — and again, more than investors were expecting. 1.4 billion people use it every day! those positive numbers should boost the firms share price. it's down 10% this year, after emerged that the details of 87 million people were improperly shared with the political consultancy firm cambridge analytica. richard kramer, founder and managing partner of arete research, is with me. richard, sally was running through the numbers. i know its early stages. we are still in the midst of this data scandal with facebook. but it has not dented their figures? no,
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i think you need to separate what is playing out in front of the politicians, and the issue of political advertising on facebook which has never been a top five category. with the behaviour of consumers who are going to facebook and instagram every day. what happened earlier in the year is that facebook removed some of the ad units from its news feed. what you saw in these results was that the price per had increased. that is driving these growth numbers. what does it tell us about the perception that users of the site have with regards to the data is you? are they simply not bothered about the concerns we are raising?” simply not bothered about the concerns we are raising? i think some, there is certainly some truth in that. mainstream consumers don't seem to be nearly as concerned with personal privacy as politicians and lawmakers and privacy advocates are. i think that is unfortunate. that said, they are getting free services
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from facebook in return for advertising. there are many business models which offer free services, where indeed the consumer's attention is the product. sally also showing the graphic of the fall in the value of shares in facebook. what's typical is that investors are looking forward. they are not looking forward. they are not looking at the results today. they are looking at what happens next. one big thing is regulation. gone are the days when regulators are willing to say, look after yourselves. there could be some strict rules coming in. should facebook be worried? strict rules coming in. should facebook be worried ?|i strict rules coming in. should facebook be worried? i think facebook be worried? i think facebook has done extensive efforts to comply, for example, with the european regulations. there was an element of kabuki theatre in front of the us senators with mark zucker burke. —— mark zuckerberg. there are asking questions which indicated they didn't understand the business model. you don't want to regulate
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certain aspects of the internet which are highly beneficial to a huge range of people in society. i think there are worries can be assuaged by the fact that in many cases they can forestall regulation. i think regulating the internet is a very tricky area for. you tossed on the idea of political advertising. a story on the bbc website, facebook uk political ads for the local elections. what sway do media sites have on elections? this is the next one, local elections in the uk. have on elections? this is the next one, local elections in the ukw is clear that political advertising is clear that political advertising isa is clear that political advertising is a hot button issue for policymakers. that said, there is a wider conversation about the role of social media in politics. it isn't really being had by the policymakers. they are happy to use social media when it suits their
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ends. stepping back, that has little impact on facebook as a business, which has $41; billion worth of cash and certainly has the resources to fight or tress way regulation in a direction which can preserve its business model. —— or tress way regulation. you get a sense of the battle lines being drawn. thank you very much. richard kramer. electronics giant samsung has reported a record profit for the three months to march — it made $14.4 billion. that's partly thanks to strong demand for memory chips. christine hah is in our asia business hub, and is following the story. just bring us up—to—date. we have followed the fortunes of samsun closely. lots of problems with technology. yeah, this is a company that has continually surprised us
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with its good results, despite all the things that you mention. net profits for the first quarter came in about 52% higher than a year ago. the memory chips business and the new smartphone where the strong drivers. samsun controls two thirds of the memory chips market. they're used for a lot of things. servers, graphic cards, datta centres... this business is expected to hold strong into next quarter. but they are sounding a warning for global smartphone demand, along with some of the chip—makers and smartphone manufacturers. we have heard that before. they say market are getting saturated. people aren't upgrading their phones. that will affect profit margins. business has been slowing. the company is definitely more cautious. thank you, christine. just one of the many early stories. let's take a look at some of the other stories making the news.
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royal dutch shell has reported a 42% rise in profits to $5.3bn, which was higher than expectations. chief executive ben van beurden said the increase was down at least in part to the oil price, which is at a three year peak of $75 a barrel. bp is appointing energy industry veteran helge lund as its new chairman, to replace carl—henric svanberg. mr lund will stand down as director of oilfield services company schlumberger to take up the new role. mr lund will remain as chairman of danish pharma firm, novo nordisk, when he takes up the bp role next january. ford is scrapping most of its us sedan car models to focus on suvs and pick—ups. the auto giant says it will now cut $25.5 billion in costs by 2022, up from the $14 billion it announced last autumn. chief executive jim hackett told investors the company is undergoing "a profound refocus"
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of its operations. nintendo's profits rose for the year to march, beating its own forecasts after it was repeatedly raised its annual targets. let's go to beijing now, where global car—makers are gathered for the annual auto show. robin brant is there for us now. interesting timing giving the spat between the us and china as far as ta riffs between the us and china as far as tariffs and a trade war is concerned. is that overshadowing events there? i wouldn't say overshadowing body bits on the mind of senior executives we have been speaking to. —— but it is on the mind. events like this have a big
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draw. we have been speaking with bmw. their chief executive. also the ford senior man for the asia—pacific region. the prospect of a trade war is of concern, particularly for a bmw. it is a global company. it is an iconic german brand. neither chinese north american. but it could get caught in the middle if there is a trade war because it manufacturers in the united states and that exports cars here to china. the chief executive talks to me yesterday and he warned donald trump e has real concerns about the impact of new trade barriers upon local economies, as he described it. by that he means bmw's operations in the united states and in china. bmw employs 70,000 people in the united states. they have a multi—billion dollar investment. i also had a big chat with ford and bmw about the reforms introduced here a few weeks
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back, ending the cap on foreign ownership. bmw say the time is right. ford welcome it as well. they don't see any immediate impact on their business at the moment. thank you. robin brant. let's look at the asian markets. japan up by nearly half a percent. the dowjones strong the night before. facebook shares up. ebay reported results that were disappointing. the financials didn't do well in asia today. tech stocks are strong. let's look at europe. london is pretty flat. shell results out. barclays london is pretty flat. shell results out. ba rclays bank. london is pretty flat. shell results out. barclays bank. so many companies. even spain's sabha dell 33%. tsb has been the big story this week in the uk, such trouble tsb
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users and customers. let's look ahead. and joe miller has all the details about what's ahead on wall street today. on thursday, arnason is expected to post a rise in first—quarter revenue, driven by solid growth in its retail business. investors will be looking from any comment on its run-in be looking from any comment on its run—in with donald trump. he has accused amazon putting smaller american vendor is out of business and of taking advantage of the us postal system. and after ford beat earnings estimates, general motors will unveil first—quarter results. the company has found itself caught in the crossfire between washington and beijing and could be hit by rising aluminium and steel prices, as well as tariffs imposed on uk imports by china. and then there is a starbucks, which is reporting results amid attempts to rescue its brand, after an incident in which a manager called police to arrest two black customers in philadelphia led to calls for a boycott of the copy chain. interesting story.
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joining us is ritu vohora, investment director at m&g investments. welcome. a new face. let's start with deutsche bank. a big slump in profits. numbers down 79% year—on—year. a big job for the new boss to turn around the fortunes. what will he do? this has been the challenge. they were part of a free structuring plan which was supposed to ta ke structuring plan which was supposed to take a number of years. the big challenge now is how to reduce costs. they are talking about particularly seeing significant cuts in terms of the workforce. christian isa in terms of the workforce. christian is a german national. whether they focus on their home market will be key for the bank. investment banking profits have been difficult for european banks. focusing on its own profits will be more important. loss reported by barclays.
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interesting times forjess staley, the boss of barclays. they had a huge settlement in the united states with regards to those dodgy mortgage—backed securities back in 2000 and three early 2000s. that is still hitting the likes of barclays? absolutely. they said they would ta ke absolutely. they said they would take 2 billion hit on mars. that is what has happened. —— in march. if you look barclays as a bank it is very profitable. it doesn't have growth. the around investment banking. —— the challenge is around investment banking. were barclays may differ from deutsche investment banking. were barclays may differfrom deutsche bank investment banking. were barclays may differ from deutsche bank is they have a ceo who is formally from jp morgan, one of the biggest and best investment banks out there. a lot of the management teams at ba rclays are ex—jp lot of the management teams at barclays are ex—jp morgan. for the bank to return to growth we need to see an improvement in investment banking. thanks very much. you will come back
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and talk about the stories in the papers, but for now, thanks. still to come... we will bejoined we will be joined by one woman who thinks her business has what it ta kes to thinks her business has what it takes to make caravans cool again. interesting to hear how she came up with the idea. stay with us. you're with business live from bbc news. let's talk more about barclays bank. we were just discussing the news in bigger detail. well, there is more from the independent banking analyst francis coppola. you were probably listening in. give us your take on what barclay's listening in. give us your take on what ba rclay‘s bank listening in. give us your take on what barclay's bank have had to say this morning. it was better than what we were expecting. we know they had a headline loss, caused mainly by the mortgage settlement. there is
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also increased ppi, which will be coming to an end next year, so hopefully that will draw a line under that, as well. that knocked the revenues of the retail bank a little bit, as expected. and the settle m e nt little bit, as expected. and the settlement delivered a headline loss. overall it was a better performance than we were expecting. and the investment bank was stronger. that is barclay's bank, i wa nt to stronger. that is barclay's bank, i want to talk to you a little bit about tsb. we've heard the results from the company that owns them. they are in the midst of a meltdown, in terms of their technology, the timing couldn't be worse. it's awful, isn't it? a real shambles. just when the company was delivering profits tsb goes into meltdown, which does not make them look good. clearly there was a void of information coming from the bank yesterday. the chief executive trying to work out what happened,
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and released a full apology, but people are still struggling to get online. when they do an upgrade like this, the whole thing is moving, they make a mistake it is difficult to recover. that is what rbs found a few years ago, and tsb are finding it now, and it isn't easy to fix. interesting one, thanks for talking to us. lots of people still reporting those problems. if you are struggling. if you are a tsb customer, keep your eyes on the business page. we have lots of information about what they are trying to do. but also lots of other companies reporting. lots of shares are down. there is a lot on the confusing communications coming from tsb as customers remain unimpressed with the reaction to that crisis. the bank has said if you suffer
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financially, keep evidence, keep receipts, they will make sure nobody is out of pocket. you're watching business live. our top story... facebook has reported profits of $5 billion. it is the first earnings report since the scandal broke over its privacy policies. much more for you online on that story. let me show you what is happening with markets in the opening minutes of trade. not a huge amount moving in the markets. keeping a close eye on the trade between china and the us, and working out what it could mean. we will get a reaction once we have all of the information from facebook and others, and once it is digested by investors. do you like caravans? i've not been on a caravan holiday for a very long time. we used to go
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to north wales, stayed in a static caravan, which always had a bit of a lea n caravan, which always had a bit of a lean on it, but it's been a while, you? yes. i have an interesting tale to tell but i will save it for another time. you may love them, you may loathe them, but they are increasing in popularity. in 2016 we spent a lot on caravan holidays. no sleep, that is what i think about. one woman thinks this is a great idea and she is with us in the studio. this is cathy chamberlain, founder of barefoot caravans. convinced us that it is the future. we can be cynical, but looking at those numbers it is anything but. it isa those numbers it is anything but. it is a big market and growing and you are cashing in on that. take us back to the beginning. what is your involvement in caravans? to the beginning. what is your
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involvement in ca ravans?|j involvement in caravans?” originally came into caravan manufacturer after going on a holiday. lots of people love the outdoors, music festivals, but having some home comforts would be nice. i looked around and couldn't see any caravan i nice. i looked around and couldn't see any caravan i liked, so i decided to make a cool caravan. i think the market is growing enormously for people having really good life experiences at outdoor events, sports events, music festivals. having the equipment to go with that is handy. you make it sound handy, that you just made your own caravan. talk us through the process. because it's probably anything but. yes, slightly more complicated than i thought it would appear, as well. i wanted to create which was something cool from the outside as well as the inside. more quality. a bit like taking your home with you. we are looking at one now, talk us through this. that is my current demonstrator. there is
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seating which converts into a six foot 6‘ bed. a kitchen. a real cool bathroom. lots of curves, the kurds continue all away inside. —— a 6—foot by six foot bed. this one has to be hand fitted from the inside. does it matter if it is cool? is that why sales are going up? because they look better? isn't it notjust about the experience you have in it? the fact he was sleeping well and the fact you out of the brain. to be able to take something which are smaller, more aerodynamic, narrower, it makes a big difference. the camper van market has gone mad. the people buying my caravan would otherwise by a camper van. you do lots of bespoke stuff. i can choose the colour, material inside, how long does it take to make one? the colour, material inside, how long does it take to make one7m depends on our order book at the
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time, to be honest. in terms of making it, it's probably about ten weeks. our order book is a lot longer. how much does it cost? just under 20 4000. camper van or about 50,000 -- under 20 4000. camper van or about 50,000 —— just under 24,000, under 20 4000. camper van or about 50,000 ——just under24,000, camper va ns 50,000 ——just under24,000, camper vans are about 50,000. how many can you get in? sitting around, four, five. are they allowed at music festivals, i thought they were very strict at those places. yes, it is fine, they are great at music festivals. thank you for coming in and telling us about it. good luck with it. much more online about that. we ordered a camper van to take away on holiday and it didn't show up. the previous holiday—makers did not return the camper van. so we were left stranded. we found one in paris
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in the end. anyway, here is how to stay in touch... you have been getting in touch with us you have been getting in touch with us today, particularly about the ca rava n us today, particularly about the caravan story. keith says i would not like to taiwan around but i can see the advantage of having one. as cathy says, you get a home from home. jenny says i would love one that my husband says no. mark says 12 years with the touring caravan now, and it's wonderful. if it is sunny, off you go. that is key for the uk holiday, the weather. the difference is whether you are dragging it behind your car, or whether you are going to a static one. rita is back. this story about facebook and a rather creepy picture. the around fake user profiles. of accounts on facebook are fake. i had one. somebody had
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created one. —— 3% of accounts on facebook are fake. it begs the question of the issue about privacy. facebook is trying to build trust again but when you see articles like this it makes people more concerned around safety. i am looking at that picture. it's incredible, isn't it? the challenge is how the police it. they do have the money to police it. whether it is fake content, fake profiles, things that are inappropriate for younger people, they need to clamp down on this before the regulators get tough with them, don't they? absolutely. especially if they are going to use things like ai. and they said they would increase headcount in terms of getting people on the ground to monitorfake getting people on the ground to monitor fake accounts and fake news. the key point is building trust
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again with users. i think mark zuckerberg will put a lot of focus on building safety and privacy for users. lovely to have you on the programme. thank you for your company and all of your comments. we will see you again tomorrow. we will, goodbye. yesterday we had the typical april showers day. today, further showers in the forecast. but they won't be as widespread, or as frequent as they were yesterday. there will be stalls of sunshine, as well. this morning, the showers focused towards scotland, northern ireland, and northern parts of england. we could see heavy and thundery showers into the afternoon. further south, a few showers dotted around, but nothing
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as widespread as yesterday. linda yueh sunny spells, temperatures up to 70 degrees in the south—east of england. —— lengthier sunny spells, temperatures up to 17 degrees. the crowd will increase over south—west england. that is all linked into this area of low pressure, which will gradually move further north and east as we go into friday a strengthening wind in that area of low pressure, as well. further north, for friday, the northern ireland and scotland, there will be heavy, slow moving showers developing into the afternoon with some sunshine. that rain spreading further north, not quite reaching northumberland, durham, and cumbria. it should stay largely dry here. elsewhere, cloudy, breezy, and cool for the time of year. temperatures between eight to 12 degrees. into the weekend, the rain would have
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cleared away. for many, sunny spells, just a few showers around. later on, into sunday, it'll turn wet and windy in the south—east. the early cloud across south—east england associated with friday's weather will clear. sunny spells over most areas. a few showers, particularly from northern areas of england and scotland. a cool field to the day. temperatures below average, between nine to 12 celsius. on into sunday, we have some rain which will potentially moving to the south—east of england. still some uncertainty over the extent of that rain, but certainly turning windy with that cloud and rain. elsewhere on sunday, a mostly dry day. just the odd shower here and there. temperatures on the disappointing side for the end of april, about nine to 13 celsius. that is all from me. have a good day. goodbye. hello, it's nine o'clock, i'm victoria derbyshire. welcome to the programme today, we'll bring you a shocking
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story that many of you will find upsetting. we're talking to a mother who wants to raise awareness of children sexually abusing other children. it's after, she says, her son was raped by another boy on a play date in his own home. i thought, if i don't know about this, then it must mean lots of other people are ignorant to it, that there is a risk. ijust want more awareness. you can hear the mum's interview at a quarter past nine. alfie evans' dad says he's meeting doctors later today to discuss taking the terminally ill toddler home. all i ask now is this meeting to be a positive one. and i hope to have
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