People & Profit

The business show that goes beyond the numbers and the corporate jargon! We break down major business stories and look at how they affect our lives. Thursday at 4:45pm Paris time.

  1. FEB 19

    China's Zeekr to launch EV sales in France

    The automobile industry has been steering towards an electric future. In Europe, sales of both fully electric and hybrid cars have risen as costs drop and technology improves. Competition within the industry is fierce, and new players are challenging legacy carmakers.  The Chinese brand Zeekr is among newcomers hoping to make inroads. Lothar Schupet, CEO of Zeekr Europe, says that many Chinese manufacturers are "providing – simply for the money people will spend – much more car, much more technology, more performance, and also in our case more craftsmanship and luxury." As the company prepares to start selling EVs in France, he says he's confident Zeekr can compete with more established carmakers in the premium market. "We are still at the starting point of building a brand (...) Our goal is very clearly defined: we want to be one of the top players in Europe."  Schupet says that EU tariffs of up to 45 percent on Chinese-made cars were a small roadbump in the firm's European rollout. "We are looking into options, in terms of local production and getting even more efficient. But what is clear is that tariffs have not held us back."  Schupet said a recent EU U-turn on banning the sale of new petrol and diesel cars by 2035 won't stop the industry from becoming more sustainable. "Electrification and the adoption of electric mobility is happening. With an extension of CO2 emissions for a few years further, that will not change." He believes that consumers, not regulators, will drive demand. "When you look into the consumer value – the total cost of ownership – there are a lot of advantages where the consumer will decide. And we see (...) even in very traditional countries like Germany and France, now the EV adoption is generating more acceleration, more pace."

    13 min
  2. FEB 12

    Europe's defence industry under pressure

    In a changing global landscape, Europe's defence industry is being reshaped and revitalised. Over the past five years, EU member states have boosted their defence spending by 63 percent to reach €381 billion euros in 2025. Jacob Parakalis, Research Leader for Defence Strategy, Policy, and Capabilities at RAND Europe, says Russia's full-scale invasion of Ukraine in February 2022 "focused attention on the need to increase Europe's defences and invest in capabilities across land, sea and air domains, cyber security and resilience". Watch moreTackling under-investment in EU defence: Is the bloc putting its money where its mouth is? He says the bigger budgets are targeting specific needs. "A lot of it is going to reinvigorate the industrial base. One thing that the war in Ukraine has revealed is the speed with which existing stocks of weapons are exhausted. So being able to manufacture large numbers of artillery shells, to repair damaged armoured vehicles, to maintain fighter aircraft to get them back in the fight, to train and sustain forces of all types, is really critical. The burn rate with which weapons and ammunition are used is far beyond anything that Europe has experienced in the last 30 or 40 years. So that kind of investment is really critical in order to credibly be able to be prepared for a long, conventional war." US President Donald Trump's threats over Greenland have also put a spotlight on Europe's reliance on American technology. "I think we're talking about years into decades" before the EU could cut those ties, Parakalis tells us. Watch moreGreenland crisis further damages transatlantic ties: Time for a major strategic rethink? The US is the top exporter of arms in the world, and Parakalis says that's partly because of the way its technology is sold. "It's about the way the weapons are knitted together with systems of sensors, it's about the enabling equipment. The US sells a coherent network, it sells a system of systems that allows these things to work together. Very few countries sell all the individual pieces of a system of systems. China is getting close, Russia does although its performance in Ukraine has broadly left something to be desired. Europe, collectively, is close. But the problem is there are different European companies producing different, sometimes competitive and sometimes not wholly overlapping elements of these systems, so it's harder for there to be a singular European offering which is competitive with the singular American offering."

    12 min
  3. FEB 5

    Are we in an AI bubble?

    Artificial intelligence is the next frontier – but is it also the next bubble? That's the question investors have been asking since tech giants began investing billions of dollars in AI and driving stock market gains. We put the question to an expert. Professor Jon Danielsson, Director of the Systemic Risk Centre at the London School of Economics, says he is "fairly certain" the market is at the top of an AI bubble, whose current levels of growth and investment cannot be sustained. "The real question is if it's only stock market investors, then those investors will of course suffer significant losses (...) But the bigger threat to societies is if it's financed by borrowing money – which is increasingly the case – and especially if banks are providing the money. So what happens is if some of these investments sour, which I think is clearly likely, and if banks end up suffering significant losses, that itself can threaten the stability of the financial system." He believes comparisons to the dot-com bubble of the late 1990s are well-founded. "Every technology bubble we have seen over the past 150 years is similar. We saw the telegraphs, electricity, the internet, telephones, railroads – they all meant that a large number of investors piled into this technology. The benefit to society was significant (...) but by far most of these investors lost everything, and only a handful ended up being winners. I see many parallels with the AI bubble today." Watch moreAI's insatiable appetite for cash, energy and data: Bubble ahead? When it comes to the technology itself, Danielsson says his biggest concern is "how the private sector is rapidly rolling out AI and spending lots of money developing and using the technology, while the public sector is far behind. I've been following this space for a long time, and I've never seen as much difference between the capabilities of the public and private sectors." Danielsson admits: "I use AI very extensively. I don't know how I did my work before AI happened!" He says that despite some concerns, the technology is rapidly becoming inescapable. "I suspect all of us will end up being very big users of AI going forward, and those who resist or don't want to use AI might find themselves on the wrong side of their careers, if not history."

    12 min

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The business show that goes beyond the numbers and the corporate jargon! We break down major business stories and look at how they affect our lives. Thursday at 4:45pm Paris time.

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