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This is Business Live from BBC News with Ben Thompson and Sally Bundock. | :00:00. | :00:08. | |
BP slumps to a loss of almost 500-million dollars for the first | :00:09. | :00:11. | |
It's blamed the collapse in oil prices. | :00:12. | :00:21. | |
Live from London, that's our top story today, Tuesday | :00:22. | :00:23. | |
The tumbling price of oil and ongoing costs of the Gulf | :00:24. | :00:41. | |
of Mexico spill takes its toll on giant BP but shares are headed | :00:42. | :00:44. | |
Also in the programme....Three US tech giants reveal how much money | :00:45. | :00:50. | |
they've been making - we'll be looking at the little blue | :00:51. | :00:52. | |
bird and why it's facing some serious headwinds. | :00:53. | :01:00. | |
Mozilla's Firefox goes head to head with Microsoft and Google - | :01:01. | :01:06. | |
but can it ever stand out in the crowd? | :01:07. | :01:08. | |
The boss of Mozilla will be here to tell us why and OPEN | :01:09. | :01:11. | |
And as Twitter prepares to unveil its latest | :01:12. | :01:18. | |
In the last hour or so BP has reported its first quarter | :01:19. | :01:40. | |
results and they don't make for pretty reading. | :01:41. | :01:43. | |
The tumbling oil price has taken its toll on energy | :01:44. | :01:47. | |
companies around the world - and BP is no exception. | :01:48. | :01:59. | |
The group reported a replacement cost loss of $485 million - | :02:00. | :02:03. | |
but when you take into account some adjustments the figure comes | :02:04. | :02:06. | |
in as a surprise profit of just over half a million dollars. | :02:07. | :02:09. | |
This was better than expected and BP shares opened higher this morning. | :02:10. | :02:17. | |
Still the year before the company reported a profit of more | :02:18. | :02:26. | |
And the massive fall in profits were caused, in part, | :02:27. | :02:30. | |
by costs relating to BP's oil spill in the Gulf of Mexico. | :02:31. | :02:33. | |
The Macondo blowout occurred 6 years ago, but still continues to affect | :02:34. | :02:38. | |
the business' performance in first three months of the year, | :02:39. | :02:46. | |
Shareholders haven't had an easy ride. | :02:47. | :02:51. | |
Since their peak in 2014, the value of the company has slumped 30%. | :02:52. | :02:54. | |
Investors have been so dismayed at the company's performance | :02:55. | :02:57. | |
that they voted against Chief Executive Bob Dudley's | :02:58. | :02:59. | |
proposed pay rise earlier this month. | :03:00. | :03:05. | |
Explain this to us? First of all, The oil price has fallen, that is | :03:06. | :03:18. | |
the main reason for the loss. There's also the money that they've | :03:19. | :03:20. | |
had to accrue for the spill. That explains the difference, the | :03:21. | :03:30. | |
non-accounting issues that are not appearing in the profit and loss, | :03:31. | :03:34. | |
they are not related to the oil price that account for the profit. | :03:35. | :03:46. | |
This really is the raw end of what we have heard so much about, the | :03:47. | :03:51. | |
persistently falling oil price that seems to be going nowhere fast. We | :03:52. | :03:57. | |
have seen BP and Shell cutting production, exploration and R D to | :03:58. | :04:02. | |
try to balance the books in this era? That is one of the reasons why | :04:03. | :04:04. | |
BP is in a better position. They have got rid of their worse | :04:05. | :04:17. | |
operations, so they are quite well placed, they are quite lean and | :04:18. | :04:23. | |
efficient. Once they have drawn a line under the well spill, which the | :04:24. | :04:31. | |
recent consent decree suggests they may well be able to do that in the | :04:32. | :04:35. | |
near future, then they can move forward. That is why they were able | :04:36. | :04:39. | |
the maintain the dividend at 10 cents. They lost a lot less on an | :04:40. | :04:48. | |
ongoing basis. Things are improving for them. The oil price is rising. | :04:49. | :04:55. | |
The IAEA is of the opinion that the huge oversupply not that long ago, | :04:56. | :04:59. | |
six million barrels a day, it's now about one-and-a-half, so we are | :05:00. | :05:03. | |
moving back into balance. A word on that strategy because Bob Dudley, | :05:04. | :05:05. | |
the Chief Executive, talking this morning about the challenging | :05:06. | :05:08. | |
environment, saying we are driving towards our near term goal of | :05:09. | :05:14. | |
rebalancing BP's cash flows and it's exactly that, rebalancing in this | :05:15. | :05:18. | |
era. Things were very different a couple of years ago? The oil price | :05:19. | :05:23. | |
was then seemingly on a relentless march north and really it collapsed | :05:24. | :05:30. | |
mainly due to shale production. The US jumped from being the third | :05:31. | :05:34. | |
producer to the largest producer in the world. That was entirely due to | :05:35. | :05:41. | |
shale production in places like Texaco and North Dakota. The oil | :05:42. | :05:46. | |
price crashed to below the cost of production in these places so people | :05:47. | :05:50. | |
aren't sinking new wells in Texas and North Dakota so the US | :05:51. | :05:54. | |
production is starting to roll over the wells that were sunk a couple of | :05:55. | :05:57. | |
years ago and no longer being sunk and the oil price is rising. Thank | :05:58. | :06:00. | |
you very much for explaining all of that. | :06:01. | :06:02. | |
Apple is about to report its earnings later on Tuesday - | :06:03. | :06:08. | |
with investors closely watching out for its latest sales numbers. | :06:09. | :06:12. | |
The last time the company put out its financial results it warned | :06:13. | :06:15. | |
we could see the first-ever decline in iPhone sales in 2016. | :06:16. | :06:21. | |
China has been a major growth area for the company. | :06:22. | :06:23. | |
of Justice has approved Charter Communications purchase | :06:24. | :06:32. | |
of cable operators Time Warner Cable and Bright House networks. | :06:33. | :06:34. | |
The deal will create the second largest cable broadband provider | :06:35. | :06:39. | |
Charter had to agree to not stop its content providers | :06:40. | :06:45. | |
from separately selling shows online, as part of the approval. | :06:46. | :06:55. | |
This is the point where we take a look at the Business Live page, | :06:56. | :07:02. | |
dominated by BP this morning but also many other stories. British | :07:03. | :07:07. | |
American tobacco always in the Spotlight, always a controversial | :07:08. | :07:12. | |
one, it tells us cigarette sales grew by %, it's interesting if you | :07:13. | :07:21. | |
look at where they increased. The company always looking for new | :07:22. | :07:24. | |
markets around the world, it seems it's found them. Grew by %. | :07:25. | :07:35. | |
contract has been announced in the last few hours. | :07:36. | :07:42. | |
Lets take you to our Asia Business Hub in Singapore, | :07:43. | :07:45. | |
Tim McDonald is following this for us. | :07:46. | :07:49. | |
Malcolm Turnbull described this as a momentum endeavour. It has a price | :07:50. | :07:58. | |
to match, it will make it one of the biggest projects. The winner is a | :07:59. | :08:07. | |
French firm, DCNS, it will build subs like the Barracuda. There'll be | :08:08. | :08:12. | |
12 in all and the contract covers upkeep. The project will create | :08:13. | :08:17. | |
about 2800 jobs in Adelaide where it will be built. Japan had been a | :08:18. | :08:22. | |
front runner in the contest and has called the decision regrettable and | :08:23. | :08:25. | |
is seeking an explanation from the Australian government and a separate | :08:26. | :08:27. | |
German bid also missed out on that. Let us have a look at the markets | :08:28. | :08:50. | |
around the world. We have got the Federal Reserve | :08:51. | :08:55. | |
having its monthly meeting as the Central Bank decides on the cost of | :08:56. | :08:59. | |
borrowing, also the Bank of Japan. Many markets are risk averse, | :09:00. | :09:02. | |
treading water ahead of the Central Bank meetings. Let's look at Europe. | :09:03. | :09:06. | |
We have mentioned lots of earning stories out that do affect the | :09:07. | :09:11. | |
markets. BP shares higher, helping the FTSE 100, a big weighting on the | :09:12. | :09:18. | |
London Stock Exchange. Results out from Whitbread better than expected. | :09:19. | :09:21. | |
It will be a real day for results and corn rat numbers because we are | :09:22. | :09:26. | |
going to hear from Apple and also Twitter, its first quarter earnings | :09:27. | :09:29. | |
are coming out as well after the market close in the US. Shares in | :09:30. | :09:34. | |
the company are down some 66% from the peak. So what has Jack got | :09:35. | :09:39. | |
planned for the company now, can he revive the little blue bird? | :09:40. | :09:46. | |
Michelle has more from New York. We can't stop sharing. Just stop and | :09:47. | :09:49. | |
think how many times a day do you check and interact on social media | :09:50. | :09:52. | |
sites? Why isn't Twitter more popular? What's the problem? I've | :09:53. | :09:57. | |
got a few different social media platforms that I use and I | :09:58. | :10:01. | |
personally don't find a great need for Twitter. Do you use it? No. It | :10:02. | :10:07. | |
appeals to a younger audience and Facebook is more user friendly for | :10:08. | :10:12. | |
people who are more accustomed to being online. Brevity is key to its | :10:13. | :10:17. | |
appeal, June like Facebook, blogs are limited to 140 characters. The | :10:18. | :10:22. | |
number of people using it has grown over the past four years, but as you | :10:23. | :10:27. | |
can see from this graph, the pace of that growth is decelerating, | :10:28. | :10:32. | |
grinding to a halt last quarter. A far cry from when the stock first | :10:33. | :10:39. | |
took flight in November 2013. It's now 35% below the $26 a share it | :10:40. | :10:46. | |
commanded on that first trading day. Twitter went out to Wall Street in | :10:47. | :10:49. | |
2013 and said we are going to be this size. It's told advertisers, we | :10:50. | :10:53. | |
are going to be this size and reach this many people. It's not just a | :10:54. | :10:57. | |
matter of Wall Street getting it, advertisers at some point are going | :10:58. | :11:01. | |
to say, wait a minute, if we want to reach a lot of people, we are going | :11:02. | :11:04. | |
to go to Google, Facebook, we don't need to go to Twitter. Could the NFL | :11:05. | :11:12. | |
save Twitter? It will screen ten National League games this season on | :11:13. | :11:15. | |
Thursday nights, extending its content beyond the posts of | :11:16. | :11:18. | |
journalists, politicians and celebrities. Twitter's core users | :11:19. | :11:24. | |
are loyal and vocal. The problem for Wall Street is, there aren't enough | :11:25. | :11:28. | |
of them. And, with its share price doing poorly, some investors may | :11:29. | :11:33. | |
unfollow the micro-bloging site if it fails to grow its user base. | :11:34. | :11:49. | |
Joining us is Nick Hungerford, CEO of Nutmeg Investment Management. | :11:50. | :11:52. | |
What are we expecting from Apple? This could be the first quarter in | :11:53. | :11:59. | |
51 quarters that we see declining revenues from Apple. That will be an | :12:00. | :12:04. | |
absolute disaster for Tim Cook, not in terms of analyst expectations but | :12:05. | :12:08. | |
in terms of the reputation. He hasn't seen a decline in quarter | :12:09. | :12:12. | |
since he's been at the helm of the company. Why is that? You have the | :12:13. | :12:17. | |
problems they have with the i watch which hasn't taken over really as | :12:18. | :12:21. | |
the big new gadget. You have issues in China where the iPhone was meant | :12:22. | :12:24. | |
to be expanding sales and it was going to be the great hope for | :12:25. | :12:30. | |
Apple. They have been a bit slower than expected. I don't know the | :12:31. | :12:33. | |
numbers off the top of my head, but the amount of money they make each | :12:34. | :12:36. | |
quarter, it's a big number isn't it? Yes. If it comes down a bit... They | :12:37. | :12:42. | |
are not losing sleep over this are they do you think or are they? It's | :12:43. | :12:47. | |
a shame for Apple in terms of, you see their star somewhat waning and | :12:48. | :12:53. | |
other tech companies, maybe not Twitter, but Facebook especially | :12:54. | :12:57. | |
taking on that mantle of perhaps being Silicon Valley's favourite son | :12:58. | :13:01. | |
and that is a shame for Apple. From all the excitement of tech which we | :13:02. | :13:07. | |
all enjoy talking about, let's talk Central Banks. The Are you not | :13:08. | :13:18. | |
excited by that? No! In a word, no. We have got the Bank of Japan and | :13:19. | :13:22. | |
the Federal Reserve in the US talking about interest rates. The | :13:23. | :13:26. | |
Federal Reserve has been forecasting and tipping us off that interest | :13:27. | :13:30. | |
rates are going to rise probably twice this year, although they have | :13:31. | :13:33. | |
speculated it might be up to four times. So if they are going to do | :13:34. | :13:36. | |
something, they need to move this month which is very unlikely, or | :13:37. | :13:40. | |
they need to signal that they are going to move in June which is | :13:41. | :13:44. | |
probably more likely. The Bank of Japan will take their lead from | :13:45. | :13:48. | |
that, but they are in negative interest, their currency is | :13:49. | :13:51. | |
appreciating when they want it to depreciate. We should send you to | :13:52. | :13:56. | |
Washington! You could be on Fed Watch? I've spent many an hour stood | :13:57. | :14:01. | |
there, I have to say, that is probably why! | :14:02. | :14:11. | |
Mozilla's Firefox used to go head-to-head with | :14:12. | :14:13. | |
Microsoft's Internet Explorer in the battle of the web browsers. | :14:14. | :14:16. | |
Now, thanks to the rise of Google Chrome, Mozilla has been | :14:17. | :14:18. | |
We'll speak to the company's Executive Chairwoman, | :14:19. | :14:23. | |
Mitchell Baker, about the future of Firefox. | :14:24. | :14:26. | |
You're with Business Live from BBC News. | :14:27. | :14:28. | |
Costa Coffee and Premier Inn, says full year profits rose | :14:29. | :14:39. | |
Coffee chain Costa saw Like for like sales up 2.9% | :14:40. | :14:45. | |
and the hotel business saw a rise of 4.2% on the same time last year. | :14:46. | :14:49. | |
Chief Executive Alison Brittain says she's "confident of making good | :14:50. | :14:52. | |
As well as announcing a great set of results with sales up 12% which is | :14:53. | :15:12. | |
lovely, I'm also talking about the growth strategy for the business and | :15:13. | :15:15. | |
I am going to confirm today that we will continue to grow out to 2020, | :15:16. | :15:19. | |
we are looking at 20,000 more respects for the hotel business and | :15:20. | :15:25. | |
the best part of ?1 billion for Costa. To do that, we are going to | :15:26. | :15:29. | |
have to do things differently, grow and innovate in our UK business. We | :15:30. | :15:34. | |
are going to have to focus our strengths on growth in the | :15:35. | :15:37. | |
international business and we are going to have to put some | :15:38. | :15:40. | |
infrastructure in and capability that will help us be efficient and | :15:41. | :15:52. | |
productive. Clearly Costa is a big growth area four-year. In China you | :15:53. | :15:59. | |
have big expansion plans. China is a good long-term opportunity. We have | :16:00. | :16:03. | |
put in place a good local team building the brand, voting in local | :16:04. | :16:08. | |
food and Logistics and Supply. Which is what you have to do when you are | :16:09. | :16:13. | |
overseas will stop we already have 380 stores there, we plant on having | :16:14. | :16:19. | |
700 in the near term. We have to leave it there. | :16:20. | :16:24. | |
Alison Brittain, the Chief Executive of Whitbread. | :16:25. | :16:30. | |
If you need any more details about the results being announced today, | :16:31. | :16:37. | |
go to our page on the BBC website. To prove it is live, there is our | :16:38. | :16:44. | |
interview of a few moments ago. A busy morning for corporate results. | :16:45. | :16:50. | |
BP dominating things. Also the story of ScottishPower, paying a fine, | :16:51. | :16:55. | |
pledging and apologising for leaving customers out of pocket as a result | :16:56. | :17:04. | |
of an ID upgrade. Cobham's shares crashed. | :17:05. | :17:11. | |
You're watching Business Live - our top story... | :17:12. | :17:15. | |
BP's numbers falling as it grapples with a much lower oil price, and the | :17:16. | :17:24. | |
costs of the oil disaster mounting up this year. On top of all that, | :17:25. | :17:36. | |
that slump in the price of oil hitting them. Two Isco, three is a | :17:37. | :17:46. | |
crowd. -- two is company. Can we trust the tech companies | :17:47. | :17:57. | |
with our personal data that we readily hand over?Mitchell | :17:58. | :18:00. | |
Baker is a Silicon Valley pioneer, and boss of | :18:01. | :18:02. | |
the not-for-profit company Mozilla. It's best known for its | :18:03. | :18:04. | |
Firefox web browser. But its a tiny player | :18:05. | :18:06. | |
in the land of giants. It has just 4% of the market, | :18:07. | :18:09. | |
compared to Google's Chrome browser which takes a quarter of the market | :18:10. | :18:11. | |
and Microsoft's 39%.But that hasn't stopped Mitchell Baker pushing | :18:12. | :18:14. | |
for a more open, sharing web, rather than one driven | :18:15. | :18:17. | |
by corporations and profits. It is a tough market we are | :18:18. | :18:31. | |
fundamentally different, we are not-for-profit organisation trying | :18:32. | :18:35. | |
to build openness and freedom. And understanding in opportunity into | :18:36. | :18:41. | |
life. We worked differently. Hopefully if you are using our | :18:42. | :18:44. | |
product and you love it, you are not always noticing that. The values and | :18:45. | :18:49. | |
the reason Mozilla exists shows in our product. I wanted to ask you | :18:50. | :18:55. | |
about the concept of the open web. It is an important one. It touches | :18:56. | :19:04. | |
on many things, differentiating you from your rivals. Can you tell us | :19:05. | :19:08. | |
about that? It is the idea that the web belongs to all of us. If you are | :19:09. | :19:13. | |
a business, you can build a business on the web without needing to go to | :19:14. | :19:18. | |
one company given you permission or one government. The open Web is the | :19:19. | :19:23. | |
idea that we as citizens have a piece of the web, and the Internet | :19:24. | :19:28. | |
or the network, the path we call the web is important, not just because | :19:29. | :19:36. | |
of an economic engine, it is important for citizens and the | :19:37. | :19:39. | |
technology should reflect those things. It was news to me today that | :19:40. | :19:48. | |
Mozilla Firefox is a non-for profit making organisation. I assumed it | :19:49. | :19:53. | |
was like its rivals. Functioning in the same way. How do you operate in | :19:54. | :20:00. | |
that way and stay in the game? The likes of Google making enormous | :20:01. | :20:04. | |
amounts of money, ploughing it back in, making the user experience | :20:05. | :20:07. | |
better and better. How do you stay in the game if you're not making a | :20:08. | :20:15. | |
profit? We are hybrid organisation. Part of being nonprofit means there | :20:16. | :20:19. | |
is a global network of people who assist us. We have a core of | :20:20. | :20:24. | |
employees, a large number of volunteers around the world who are | :20:25. | :20:29. | |
important. On the business side we try to do something similar. Not try | :20:30. | :20:32. | |
to make ourselves the centre of the world. Trying to build a platform | :20:33. | :20:37. | |
where partners, businesses work with a level playing field. How do you | :20:38. | :20:43. | |
struggle to get people on board? People investing, advertising? | :20:44. | :20:48. | |
Actually, the philosophy draws people. People sometimes ask, hiring | :20:49. | :20:57. | |
in silicon valley is hard, can you hire anyone? We hire great talent. | :20:58. | :21:02. | |
Great technology, the mission and the impact and influence. Because of | :21:03. | :21:07. | |
our goals, we're not trying to be the most popular, common, to have | :21:08. | :21:11. | |
the most users to make the most money. We are trying to have people | :21:12. | :21:16. | |
interested in security to meet user experience we provide, enough | :21:17. | :21:20. | |
involvement in marketing and mind share to change the industry. We | :21:21. | :21:25. | |
have been quite effective in that. A big part of what you do is | :21:26. | :21:29. | |
discussion over privacy and data protection over the Internet I am | :21:30. | :21:35. | |
interested in that row between the FBI and Apple. Apple refusing the | :21:36. | :21:43. | |
FBI access to the iPhone of terrorists. Where do you stand on | :21:44. | :21:47. | |
that? First of all, I want to reframe it. It is often framed by | :21:48. | :21:54. | |
privacy against security. Our belief is it is wrong. It is all about | :21:55. | :22:01. | |
security. The encryption on your phone, you're all my ability to keep | :22:02. | :22:05. | |
my financial information or location information away from other people | :22:06. | :22:13. | |
is a security issue. We think it is all a security issue, personal | :22:14. | :22:17. | |
security, national security. We are trading off one former security for | :22:18. | :22:26. | |
another. In our physical lives we are used to trading security for | :22:27. | :22:30. | |
convenience. My security for my kids' security. The security for | :22:31. | :22:36. | |
each one of us is fundamental. Our own ability both as citizens and | :22:37. | :22:46. | |
consumers, if your business is insecure you cannot function in the | :22:47. | :22:50. | |
same way. If we begin dismantling security across-the-board we will | :22:51. | :22:52. | |
all suffer in ways we don't understand. Particularly, more and | :22:53. | :22:57. | |
more data is growing. Everything will be transmitting data. Security | :22:58. | :23:04. | |
is very fundamental. Really lovely to speak to you. Thank you for | :23:05. | :23:08. | |
explaining that. Nice to have you on the programme. Some breaking news | :23:09. | :23:17. | |
about Mitsubishi motors. Admitting to using improper fuel tests since | :23:18. | :23:23. | |
1991. This has been taking place at a news conference in Tokyo. They say | :23:24. | :23:27. | |
they will set up a special committee made up of external experts to | :23:28. | :23:32. | |
investigate the fuel economy manipulation issue. A lot going on | :23:33. | :23:39. | |
there. Since 1991 this falsification has been ongoing. We not expecting | :23:40. | :23:45. | |
in earnings forecasts from Mitsubishi even though it was | :23:46. | :23:49. | |
scheduled. They are not sure there which states will have an impact for | :23:50. | :23:55. | |
them -- in which stage will have an effect on their results. Admitting | :23:56. | :24:02. | |
improper fuel tests since 1991, huge implications for the business. I | :24:03. | :24:07. | |
would imagine that will be our top story tomorrow. | :24:08. | :24:11. | |
What other business stories has the media been | :24:12. | :24:13. | |
The first ten stories were about BHS. You have even got to that. We | :24:14. | :24:31. | |
should mention it. Viewers around the world, it is a big retailer in | :24:32. | :24:36. | |
the UK. A mainstay of the high street for so long. Perhaps no more | :24:37. | :24:42. | |
in administration. The two previous owners of BHS, the current owner and | :24:43. | :24:47. | |
the previous owner, Sir Philip Green are getting a lot of stick for this. | :24:48. | :24:53. | |
This is a global issue, not just the British one. The gap that has been | :24:54. | :24:57. | |
created in the BHS pension fund, over ?500 million. There will be a | :24:58. | :25:03. | |
lot back to see whether or not any impropriety has taken place over the | :25:04. | :25:07. | |
last decade or so in filling that fund. This is a problem affecting so | :25:08. | :25:12. | |
many people. Let's squeeze in one more. Parroting no one hates their | :25:13. | :25:18. | |
job any more? I assume you don't, you are the boss? It is tough if I | :25:19. | :25:26. | |
did. A US survey, 80% of people enjoy and are satisfied by their | :25:27. | :25:32. | |
job. The real inspiration, why you like your job, not necessarily your | :25:33. | :25:36. | |
pay, it is the respect other people give you. That is the conclusion in | :25:37. | :25:43. | |
the report? The most important thing in that report. It strikes me that | :25:44. | :25:48. | |
the bosses have come up with that, it is not the pay! It does help. | :25:49. | :25:58. | |
There will be more business news throughout the day | :25:59. | :26:01. | |
on the BBC Live webpage and on World Business ReportWe'll | :26:02. | :26:04. | |
Very unseasonable, the weather at the moment. Basically another day of | :26:05. | :26:17. | |
sunshine and showers. That is not the full picture. Turning | :26:18. | :26:19. |