tv World Business Report BBC News January 28, 2022 5:30am-6:01am GMT
this is bbc news with the latest business headlines for viewers in the uk and around the world. big tech back on top? chip shortages and omicron fail to take a bite out of apple — as it posts all—time record sales turning up the gas. we will halt the nordstream two pipeline project if you invade ukraine — the us warns russia. bored at the border. the reality of �*frictionless�* trade with the eu — as truckers struggle with post—brexit paperwork. plus — skating on thin ice — why global sponsors are finding the winter olympics a slippery proposition.
we start in the us — where apple has stunned wall street with its biggest quarterly sales figure of all time. the tech giant made revenues of almost $124 billion in the last three months of 2021, buoyed by soaring sales of iphones during the holiday season. all that despite a global shortage of chips and concern about the omicron variant hitting consumer confidence. it was way more than investors were expecting — and will calm some nerves after the recent steep sell—off in technology shares. let's talk to dan ives from wedbush securities in new york. it has been a turbulent time,
hasn't it? do you think that this is enough to quell some of the problems that we have been seeing? are we putting that in the rearview mirror?— seeing? are we putting that in the rearview mirror? apple was the rearview mirror? apple was the focus of _ the rearview mirror? apple was the focus of this _ the rearview mirror? apple was the focus of this streak - the rearview mirror? apple was the focus of this streak to - the rearview mirror? apple was the focus of this streak to see l the focus of this streak to see what they would say about demand and the chip shortage and it is something that stood out this quarter, a tremendous quarter in terms of seeing demand but also the supply is moderating and improved. it will be the focus of industry and this starts the turnaround after what has been a brutal sell—off. it after what has been a brutal sell-off. ., , , sell-off. it has been quite brutal. sell-off. it has been quite brutal- i _ sell-off. it has been quite brutal. i saw— sell-off. it has been quite brutal. i saw some - sell-off. it has been quite brutal. i saw some very i brutal. i saw some very interesting statistics here about people upgrading their phones and the like. apparently there are over 250 million people who have iphones who have not upgraded them for more than 3.5 years. do you think we are falling out of love with the iphone and with the smart phone and not being lulled into
repeat buying all the time? that is a great question but if you look at iphone 13, right now they just had you look at iphone 13, right now theyjust had the strongest holiday quarter ever at apple in terms of iphone and that is despite the chip shortage which took about 10 million iphones out of the quarter. when you look at pent—up demand it speaks to the iconic unparalleled effect that apple has. but it is notjust about the phone it is about services and the ecosystem. the business alone is worth 1.5 trillion and there is a reticence of growth happening through cupertino. let's talk about what is going on with the supply chain and, particularly, the scramble for semiconductor is which are in the chips that power phones. it is turning out to be the big industrial struggle of our era, isn't it? i wanted to bring in
a quote from the boss of the us chip designer qualcomm. they said of the competition for semiconductors it is like gladiatorial combat in ancient rome. if you win, all that you accomplish is the right to go back to the coliseum one more time. but it is notjust intel and samsung in this fight as well, it is governments as well. china spent more on semiconductors than they did on oil last year. who is winning this race? it oil last year. who is winning this race?— this race? it is a battle and when it comes _ this race? it is a battle and when it comes to _ this race? it is a battle and when it comes to the - this race? it is a battle and when it comes to the chip l when it comes to the chip shortage apple is clearly winning because they are at the front of the line when it comes to chips. it look at automakers as well as technology players and they will continue to battle for chips but the most important thing to focus on here is that what apple is seen and they have the best view, they are starting to moderate in the march quarter and that is what will echo across wall street over the coming days and we, especially in this white
knuckle backdrop we see in terms of the market. we will leave it there _ terms of the market. we will leave it there for _ terms of the market. we will leave it there for the - terms of the market. we will i leave it there for the moment, thank you very much. let's stay with the us — because according to early estimates — at the end of last year the world's biggest economy grew at its fastest rate since the early 1980s. but that's unlikely to continue. here's the bbc�*s business bubble burster, samira hussain in new york. despite a surge in coronavirus cases the us economy grew at an annualised rate of 5.7%, the best performance since 1984. sparing that growth was consumer spending and business investment. as interest rates remain low making it worthwhile to borrow money. but the days of easing money are numbered as the us federal reserve, the american central bank, has a ready signalled it will start to raise interest rates in march. many economists predict
that the fed will hike borrowing costs up to four times this year and that will likely lead to blockbuster gdp numbers just seen may not continue if it becomes more expensive for individuals and businesses to borrow money. and other risks to america's economic growth is soaring inflation which is at its highest level in decades and then, of course, there is the ever mutating virus to content with and what impact that may have on the country's economic trajectory. the prospect of a rapid rise in interest rates this year has of course been rattling markets. will these figures ease those fears? let's talk to janet mui — investment director at brewin dolphin here in london. thank you forjoining me and it is good to see you. i see that the dollar is at its highest level since, well, for quite some time. these early estimates for the us enough to
give a proper stent to investors? i give a proper stent to investors?— give a proper stent to investors? i think these fi . ures investors? i think these figures are _ investors? i think these figures are very - investors? i think these figures are very strong l investors? i think these i figures are very strong but investors? i think these - figures are very strong but i think it masks the fact that it is the buildup of inventory is and firms running up stock ahead of christmas and that was ahead of christmas and that was a big contribution. consumer spending growth was stunted and also the figures were scary. price figures were rising almost 7% year—on—year. also these strong gdp figures, on one hand it could be bad news for workers because we could be in a period of good news is bad news because people are worried that the federal reserve had to hike interest rates or to take things down if the economy is getting hotter. so i think it is a mixed reaction and yesterday stocks rallied
initially and then they lost all their game at the end of the day. so i think there is risk here for the us economy. in january it will risk here for the us economy. injanuary it will be sold out as the international monetary fund has already revised down cost for the us gdp growth this year. i cost for the us gdp growth this ear. ~ ., . , cost for the us gdp growth this ear, " ., ., , , cost for the us gdp growth this ear. ~ ., ., , , ., year. i know it has been a turbulent _ year. i know it has been a turbulent january - year. i know it has been a| turbulent january although year. i know it has been a - turbulent january although the resell investors are keeping faith and have brought us shares every day even though the market has led. now the geopolitical tensions, we know that russia continues to build up that russia continues to build up troops on the ukrainian border and diplomats are scrambling to avoid conflict here and meanwhile there are proposals being drawn up to put the brakes on finance and tech for russian gas projects and the security chief in britain advises uk businesses to prepare for no less than russian cyber warfare. is business already in some kind of war with russia here? i
don't think at the moment. there has already been sanctions for russia since 2014 so i think the russian community are already used to sanctions and they are financially less exposed to the outside world. they are external borrowers and that has come down since then. so this time around although they will be economically hurting it will be economically hurting it will be a bit less painful than when sanctions were first introduced. i think the general economic concern, the biggest concern was certainly the even higher energy prices. i think thatis higher energy prices. i think that is the biggest risk out there because we have already seen the national prices surging and that directly affects households in europe and in the uk as well. one
third of energy sources are from russia in europe so i think that is the biggest risk out there. and of course political tension escalating and the incoming nordstream two pipeline will be delayed indefinitely for now, i think, so that would just add two more inflationary risk which will potentially pump more price policy action from central banks. ., ~ ,, policy action from central banks. ., ~' ,, , policy action from central banks. ., ~ , . let's dive a little deeper into the situation in ukraine. because the us has warned russia that if it invades its neighbour — the nordstream two project will not go ahead. nordstream 2 is a second pipeline under the baltic sea — bringing russian gas direct to germany, bypassing ukraine. the $11 billion pipeline would double the flow of russian gas into european markets. construction has finished but it has yet to win approval to start pumping. supporters say the supplies are badly needed — critics say it will further increase european reliance on russian energy.
here's what a senior us diplomat had to say. with regard to nordstream two, we continue to have very strong and clear conversations with our german allies and i want to be clear with you today. if russia invades ukraine, one way or another, russia invades ukraine, one way oranother, nordstream russia invades ukraine, one way or another, nordstream two will not move forward. philip worman is managing director at the political risk consulting firm — gpw group. canjoe can joe biden really canjoe biden really pull the plug on your�*s energy security? well, nordstream two is practically finished in the final bolts are just being screwed in. there are two options here forjoe biden. he could sanction nordstream two. it is probably easier to just delay the certification. it just needs to be signed off by germany and the eu and he could
quite feasibly block nordstream two. the flipside is that it is notjust two. the flipside is that it is not just a two. the flipside is that it is notjust a russian project. there are european companies involved in nord stream and, so, he could certainly delay surf certification and can see verbally put sanctions on it and that would drive up, as your previous correspondent said, it will drive up energy prices. said, it will drive up energy rices. �* , ., said, it will drive up energy rices. . , . ., ., , prices. and they have already been at record _ prices. and they have already been at record highs - prices. and they have already been at record highs in - prices. and they have already| been at record highs in recent months. is this there for the right fight to be having here? who wins from this escalation? really, nobody wins. we are seeing talk of some extreme sanctions such as cutting russia off from the swift banking network. that is an incredibly complex and damaging thing to do that will effectively kill or business with russia. don't forget we have some very significant western companies invested in russia likes chevron, excel,
and shell. so this will have an effect notjust on russian companies western companies as well. i companies western companies as well. ., companies western companies as well. . . . . well. i am afraid we have run out of time _ well. i am afraid we have run out of time but _ well. i am afraid we have run out of time but i _ well. i am afraid we have run out of time but i have - well. i am afraid we have run out of time but i have a - well. i am afraid we have run out of time but i have a lot i out of time but i have a lot more questions for you. we have to leave it there, thank you very much and we will have this discussion another time. let's turn to the uk now — and its post—brexit trading arrangements. it's now four weeks since new border checks and paperwork came in for trade between britain and the eu. and it seems many companies — especially smaller ones — are struggling to cope. the added bureaucracy is being blamed — at least in part — for long queues of trucks outside the port of dover, the main trading hub between britain and europe. and it is taking its toll on the volume of cross—channel trade — as our global trade correspondent chris morris has been finding out. driving into dover past queues of lorries stretching for miles. they are being held here
to avoid congesting the town. queues are not uncommon in these parts but they have been particularly bad in recent weeks. drivers are fed up. waiting for hours and sometimes days. waiting for hours and sometimes da s. ~ ., waiting for hours and sometimes da s. ~ . , ., days. when we wait, it is no money- _ days. when we wait, it is no money- they _ days. when we wait, it is no money. they blame - days. when we wait, it is no i money. they blame cancelled ferry crossings _ money. they blame cancelled ferry crossings and _ money. they blame cancelled ferry crossings and post - money. they blame cancelled | ferry crossings and post brexit bureaucracy. john surely has run a freight forwarding company and over 425 years but is new territory. customs documents now have to be completed in full before thousands of lorries can board ferries heading for europe every day. ferries heading for europe every day-— ferries heading for europe eve da. . , ., every day. that is caused all sorts of headaches - every day. that is caused all sorts of headaches for - every day. that is caused all i sorts of headaches for people, people don't know the paperwork properly and haven't prepare themselves and, so that is why there are delays. here, we found a driver here four days. want to get better with time as people get used to the new system? i people get used to the new s stem? ., �* ~ ., people get used to the new sstem? system? i don't know. i suspect it won't d0- _
system? i don't know. i suspect it won't do. and _ system? i don't know. i suspect it won't do. and it _ system? i don't know. i suspect it won't do. and it is _ system? i don't know. i suspect it won't do. and it is not - system? i don't know. i suspect it won't do. and it is notjust - it won't do. and it is not 'ust exporters. ﬂ it won't do. and it is not 'ust exporters. people �* it won't do. and it is notjust exporters. people bringing l exporters. people bringing goods into the country from europe have also been dealing with nude bureaucracy since january one. david runs this small deli in bristol. each individual consignment he imports now needs separate customs forms whether to be none. later in the year, some of these products will need to be physically inspected when they arrive in the uk. we will need to do — they arrive in the uk. we will need to do more _ they arrive in the uk. we will need to do more paperwork, | they arrive in the uk. we will. need to do more paperwork, we will need to pay more money, we might need to increase the prices at the end of the day thatis prices at the end of the day that is what do. it is certainly more difficult but unless we close the doors and shut the business we need to do it. ., shut the business we need to do it. so what happens in places like dover — it. so what happens in places like dover will _ it. so what happens in places like dover will have - it. so what happens in places like dover will have a - it. so what happens in places like dover will have a wider. like dover will have a wider impact. many companies are changing the way they do business across the channel in order to cope with new bureaucracy and delays. others have simply stopped trading between britain and the eu altogether. while global trade in general rebounded pretty well last year from the covid
hits of 2020, trade between the uk and the eu did not. and it is almost certainly going to stay that way. the government says that traders need to get used to new rules and focus on new trade deals and on the other side of the world. but two years after britain left the eu, the idea of seamless trade across this narrow stretch of water, that ship has already sailed. four days at the border they are! stay with us on bbc news, still to come: are you ready to go nolo? we look at the growing thirst for no—or—low alcohol drinks this is the moment that millions in iran have been waiting for. after his long years in exile, the first hesitant steps of ayatollah khomeini on iranian soil. south africa's white government
has offered its black opponents concessions unparalleled in the history of apartheid, and the anc leader nelson mandela is to be set free unconditionally. mission control: three, two, one... a countdown to a critical moment — the world's most powerful rocket ignited all 27 of its engines at once. and apart from its power, it's this recycling of the rocket slashing the cost of a launch, that makes this a breakthrough in the business of space travel. two americans have become the first humans to walk in space without any lifeline to their spaceship. one of them called it "a piece of cake". thousands of people have given l the yachtswoman ellen macarthur a spectacular homecoming - in the cornish port of falmouth after she smashed the world record for sailing solo - around the world, non—stop. this is bbc news, the latest headlines: the united states has urged
china to use its influence with moscow to discourage any russian invasion of ukraine. the us coast guard has suspended the search for dozens of people lost after their boat capsized off the florida coast. the olympic games are normally a huge marketing opportunity for sponsors, a showcase for global brands. however, beijing 2022 is causing a huge headache for the 13 official corporate partners of the olympics. the us, uk, australia and canada are among the countries that have announced a diplomatic boycott of the games due to accusations of human rights abuses, though their athletes will still participate and many sponsors are deciding it's saferjust to keep quiet as our silicon valley correspondent, james clayton, has been finding out. china's winter olympics may have a shortage of snow but there has been something else missing as well. many of the
big sponsors have been unusually quiet. in december, presidentjoe biden announced a diplomatic boycott of the games just a few weeks after discussions with the chinese president. lie discussions with the chinese president-— president. us diplomatic or official representation - president. us diplomatic or official representation will. official representation will treat the games is business as usual in face of the country's egregious abuses.— egregious abuses. criticism, the treatment _ egregious abuses. criticism, the treatment of _ egregious abuses. criticism, the treatment of the - egregious abuses. criticism, the treatment of the uyghur| the treatment of the uyghur population. the bob carr has left multi— national companies in the middle of a diplomatic spat. analysis of the social media feeds has found many sponsors have barely posted about the beijing winter olympics compared to last summers games in tokyo. a french giant tweeted about the olympics last year dozens of times on its twitter account yet has posted almost nothing in the lead up to the games in beijing. i in the lead up to the games in bei'inu. ., �* ~' in the lead up to the games in bei'inu. ., �* ~ ., , ., beijing. i don't think any of them as — beijing. i don't think any of them as global _ beijing. i don't think any of them as global brands - beijing. i don't think any of
them as global brands can | them as global brands can afford or are willing to insult the chinese government or its people. they feel they are walking on a tight rope. the roblem walking on a tight rope. the problem that _ walking on a tight rope. the problem that many of the companies faith that do business in both china and in the us is actually that is simple. they don't want to offend either side the best not to say very much. that is what this person from the world uyghur congress found when she approached the partners.- approached the partners. some of these companies _ approached the partners. some of these companies always - of these companies always promote their own company and value _ promote their own company and value saying that they are, you know. — value saying that they are, you know, aiming for inclusivity in human— know, aiming for inclusivity in human rights and all these beautiful values but when it comes_ beautiful values but when it comes to china, it is crazy how silent — comes to china, it is crazy how silent they— comes to china, it is crazy how silent they become. the comes to china, it is crazy how silent they become.— silent they become. the bbc invited all — silent they become. the bbc invited all 13 _ silent they become. the bbc invited all 13 official - silent they become. the bbc invited all 13 official 0lympic| invited all 13 official olympic partners to comment on chinese treatment on weekends. none took up the bbc�*s offer. the beijing winter olympics will be a showcase for athletes competing at the highest level but a showcase for global
brands, well, that is a more complex story. james clayton, bbc news. interesting. finally, if you're one of the many who have given up alcohol this month, you might be glad dryjanuary�*s almost at an end. but the market for non—or low alcoholic drinks — �*nolo' to use the trendy term — is set to continue booming. a recent survey by yougov found that a third of alcohol drinkers in the uk now semi—regularly consume nolo drinks. with major investment from brands like heineken, peroni and brewdog, the worldwide non—alcoholic drinks market is expected to almost double to $1.7 trillion dollars by 2028. mark meek is ceo of iwsr, which provides analysis of the drinks market. do you like a typical? good morning. — do you like a typical? good morning, victoria, - do you like a typical? good morning, victoria, yes - do you like a typical? good morning, victoria, yes i - do you like a typical? good morning, victoria, yes i do| do you like a typical? good - morning, victoria, yes i do but like many consumers now, i
don't only moderate my drinking during dryjanuary, it's really an all year trend now. therefore, i mix it quite occasionally and more occasionally, more often now, with no, although alcohol brands. , , , brands. this is interesting, isn't it? — brands. this is interesting, isn't it? there _ brands. this is interesting, isn't it? there is _ brands. this is interesting, isn't it? there is evidence l brands. this is interesting, l isn't it? there is evidence of this strand two trend for sober curiosity, is this a generational shift in consumption? generational shift in consumtion? , consumption? that's a very good cuestion. consumption? that's a very good question- the — consumption? that's a very good question. the reason _ consumption? that's a very good question. the reason why - consumption? that's a very good question. the reason why this i question. the reason why this is such an attractive category for brand owners is that there are three really called drivers for growth that we have have observed, particularly over the last three years, firstly, really substantial change in consumer patterns and as i mentioned, it's notjust a dry january thing. this is an all year around phenomenon. you get
three consumer types, really. you get those looking to moderate consumption. you get people who don't drink at all, for either health or religious reasons. and to answer your question, there is a whole new generation of drinkers coming onto the market who absolutely drink less then their parents. so the drivers for growth is changing consumer patterns, high levels of investment in the category and because there is no tax on no alcohol products, the margins are substantial. the alcohol products, the margins are substantial.— are substantial. the margins ma be are substantial. the margins may be substantial- are substantial. the margins may be substantial but - are substantial. the margins may be substantial but can l are substantial. the margins i may be substantial but can you really charges march for a no alcohol cocktail as you would a nice cheeky margarita?- nice cheeky margarita? again, interesting _ nice cheeky margarita? again, interesting question. - nice cheeky margarita? again, interesting question. one - nice cheeky margarita? again, interesting question. one of. interesting question. one of the key drivers of the no alcohol category is consumers actively choosing not to drink
but wanting to be part of the drinking occasion. therefore, our research shows that consumers are willing to pay the same amount for a no alcohol cocktail, or zero alcohol cocktail, or zero alcohol beer, as their friends and colleagues when they are out enjoying themselves and socialising. in fact, they almost may see it as a badge of honour that have paid similar prices to what you described as a cheeky margarita. hate prices to what you described as a cheeky margarita.— a cheeky margarita. we will have to leave _ a cheeky margarita. we will have to leave it _ a cheeky margarita. we will have to leave it there. - a cheeky margarita. we will have to leave it there. i - a cheeky margarita. we will have to leave it there. i tellj have to leave it there. i tell you what, i would not be paying the same amount! thank you for your insights! let's see how the asian markets are faring today. recovering some of the steep losses from the previous session after us markets were supported by the gdp figures, the economic figures were talking about and strong earnings, from apple. thank you
so much. it has been a pleasure as always. breakfast is coming up as always. breakfast is coming up and loads more of me on world news, internationally. you can reach me on twitter — i'm @vfritznews see you soon. hello there. after the sunshine on thursday, we've seen clearer skies and lighter winds overnight, so it's pretty chilly out there for many. but the weather is going to change once again because during friday, we're going to find more cloud coming in from the atlantic, and that in turn will bring in some milder air as well. now, at the moment, high pressure is centred more to the south of the uk. we've got these weather fronts bringing some rain towards scotland in particular during friday, but also drawing in these stronger winds from the south—west, bringing in that milder but generally cloudy air as well. ahead of that, though, we do have a touch of frost across more central and eastern parts of the uk to start the day. those temperatures lifting in the west as the cloud comes in. we've also got a few mist and fog patches across parts of england and wales. those will lift. there will be some early sunshine, but many areas
are going to cloud over. we will keep some hazy sunshine in the south east perhaps into the afternoon. a bit of drizzle out towards the west. most of the rain pushing eastwards across scotland as those winds strengthen. drawing in that milder air, so temperatures, double figures for most of us, a little bit chillier towards the south east perhaps. it does stay very mild, actually, overnight. those temperatures aren't going to drop an awful lot because we've still got those run of strong, very mild winds. in fact, it will be very windy overnight across scotland and northern england. some very gusty winds, particularly as that rain band moves down across scotland on that weather front there. but again, that rain, whilst heavy in scotland for a while, is going to become much lighter as it sinks down into england and wales and moves away from northern ireland. after the rain, what there is of it, we're going to find sunnier skies and some showers following on, and a strong wind continues as well, particularly windy in scotland, gusts of 60 mph likely here. southern parts of england may well stay dry, and here we'll see the highest temperatures, 13—14 degrees, it's very mild, but it is turning colder from the north as we get that sunshine and showers mix. the winds do gradually ease down overnight as that high pressure tries to build in, but this is heading our way for the second half
of the weekend. another weather system coming in from the atlantic. chilly start probably on sunday, much cooler than saturday morning. we're going to find some rain heading into the north west of the uk. the winds picking up, but as we move into that cooler air, we're going to find the threat of some snow, particularly across highland and grampian and typical temperatures around 8—9.
good morning, welcome to breakfast with naga munchetty and charlie stayt. our headlines today. when the government go ahead with the rise in national insurance in april, after a minister admits it is unpopular and everyone is feeling the squeeze? british sign language is on course to become a recognised language in england — making it more prominent in public service announcements. we meet those on both sides of the home care crisis — as providers turn away requests due to staff shortages. offices are open but our work is back at their desk? at the end of the first full week without work from home guidance in england and northern ireland, we will find out.