11/05/2016 BBC Business Live

This is Business Live from BBC News with Ben Thompson

We get unprecedented insight into the world's most valuable firm

as the Saudi government prepares to sell a stake in Aramco

Live from London, that's our top story on Wednesday, 11th May.

The promised share sale would value Saudi Aramco

at over $2 trillion - that's four times

But at what cost to the world's other oil producers and us?

Also in the programme, another twist in the Facebook bias row.

Now the US Government wants to know how the tech giant picks news

And Japan's benchmark, the Nikkei edged up for a third

straight day but nothing to get excited about.

And in Europe, after disappointing figures from Germany,

France and Italy yesterday, we get an update in the UK this

morning on manufacturing and industrial production.

And for 200 years Savile Row, England's home of bespoke tailoring,

has been dominated by men, but not any longer.

Her shop is the first on the prestigious street to be

And as the pollsters admit they might not be able to predict

the outcome of the UK's Referendum on EU Membership,

because it's never been done before, we want to know,

Let us know, use the hashtag BBCBizLive.

We're starting in Saudi Arabia where the head of Aramco,

Saudi Arabia's massive state run oil giant, says production will increase

this year ahead of a government plan to sell a stake in the company.

Last month, the Saudi Royal family announced a plan to radically

Called Vision 2030, the plan is designed to move

the country away from its dependence on oil and gas.

They currently account for 90% of all the government's income.

But the oil prices are down 60% from their peak of $115

That's forced the government to dip into their reserves to keep

One part of the plan to end this reliance on oil

That really is tantamount to flogging the family silver.

The company is thought to be worth over $2.5 trillion.

The Kingdom wants to sell 5% of it to help pay for other projects.

But remember, the Saudi's aren't quitting oil.

In fact they're going to pump even more and that

could spell big trouble for other oil producers like Venezuela,

The President and Chief Executive of Saudi Aramco, Amin Nasser,

has been speaking to our Business Editor Simon Jack.

They started off by talking about the significance of the country's

The vision 2030 is set by the Kingdom is a game changing plan. It

is important especially at this time to reduce dependency on oil. To have

more sustained economic growth. Create more jobs. So it is, I think,

timely and overdue to identify new resources, but rely more on

investment for additional streams of revenue for the Kingdom. You say

timely. Is that because of the arrival of US shale, is it because

we're looking at a future with fewer hydrocarbons, we see electric cars,

are you worried that you have got so much of the stuff in the ground that

one day you won't be able to sell it, you will have stranded assets?

Yes, there are more energy resources coming, electric cars, renewables,

but they are starting from a small base. There is still a lot of

challenges and however, oil will continue to play a major part in it

for the long-term. Privatising industry is important. It is a step

in the right direction. Starting with a company like Saudi Aramco.

All the systems and processes and procedures will help to a company

like Saudi Aramco. It is about time. When you privatise something, you

have to publish a prospectus, you have to talk about cost of

production and give details about the quality of your reserves. All of

those things. Are you ready for that level of transparency?

We have been always when we talked about transparency. We have been

transparent with one shareholder, which is the Government. We have

been transparent with our board. When we are listed and there are

many shareholders, we will be sharing data like any company is

doing, quarterly, sharing the results and data. When we share it,

it will be a pleasant surprise for the rest of the industry. Lots of

people have wondered about Saudi's behaviour in the oil market and

there is lots of conspiracy theories, you are trying to put the

US out of business, or you're helping the US put Russia out of

business or you're trying to handicap Iran or it is because the

kingdom are running out of answer? You mean in terms of unceasing our

productions? Yes. No, as I said earlier, we are trying to call on

Saudi Aramco when it comes to production. It is commercial. Aramco

has always dealt on a commercial basis based on the guidance and the

terms of production that we have seen sfr from the minister of energy

and industry and mineral resources. Simon Jack speaking to the new Chief

Executive of Aramco. There you go. We will have more on that if we get

it. A US Senate committee has launched

an inquiry into how social media giant Facebook picks the stories

for it's trending news list. The announcement comes only hours

after Facebook was forced to defended itself over

claims its Trending Topics. The stories that appear on the left

hand side of their website, suppressed stories supporting

conservative political viewpoints. Despite last minute attempts

to derail the process, the Brazilian senate is due to vote

later on Tuesday on the impeachment of President Dilma

Rousseff from office. Ms Rousseff is accused of breaking

the country's budget She could be suspended for up to 180

days if lawmakers vote Budweiser beer brands to re-brand

its cans for the summer. The beer will have its name changed to

America! Between the months of May and September. Budweiser are hoping

to capture the patriotic spirit of Americanses focussed on events like

the US election and the summer Olympics. Want a can of America? I'm

not sure about that one! Already a lot of comment online about whether

you are a fan of that beer. Some suggesting it doesn't really taste

of much and that would also suggest that America is similar!

Let's talk about Disney, the company that makes dreams a reality or not.

Not for investors, it seems. Disney posted a profit, $2.1 billion. It

was certainly, I think, nearly double the same period last year,

but why didn't it please? Because investors are a fickle lot! This is

a company that owns Star Wars. Yes. And yet investors are disappointed

with happened. That's why expectation is a difficult thing.

Markets expect one thing and if you don't meet it, your shares fall. Ask

Apple! More bad news for the car industry

in Asia this morning. Profits are down at Toyota

and losses for Takata mount after that massive recall of faulty

airbags around the world. Sharanjit Leyl is following these

stories in Singapore for us. I bet this is going down like a

tonne of bricks over there? You could say that, Aaron. It is

worse for the ought owe car making. Toyota, its profits were driven down

by the stronger Japanese yen. They are saying net income may drop 35%

to lower than expected $13.8 billion for this fiscal year ending in

March. The Japanese yen has strengthened for than 10% against

the dollar and the car maker suffered production stoppages. You

will recall that followed the deadly earthquakes in south-western Japan

last month. As growth starts to stall, the ought owe maker is racing

to keep ahead of Volkswagen. As for Takarta, it posted its third annual

loss on the mounting costs of recalls of those potentially

dangerous airbag inflators. Their net loss came in at $120 million.

Those inflators have been linked to 11 deaths and more than 100 injuries

and the US Transport Authority last week announced a recall of up to 40

million more of the company's airbags on top of the more than 50

million that have already been recalled globally.

Thank you very much. A look at the numbers for you. Not a

lot to get excited about. The Nikkei ending up slightly. It was its third

straight day after a rough ride for the Nikkei of late. I want to show

you what is happening in Europe. Remember we get industrial

production and manufacturing figures this morning. Hot on the heels of

disappointing figures yesterday for Italy, Germany and France. They

didn't meet expectations. Markets fell as a result. You can see that's

really reflected in how Europe opened this morning and we'll get

the figure ins a little while. Sue is with us to talk us through

the numbers. Samira has the details about what's

ahead on Wall Street Today. When American retailers report

earnings everyone from economists to investors pay attention. And first

up in this earning season is the department store Maisie's and

tourists were not flocking to its flagship location here in New York

and that will hit the results for the quarter and making matters more

difficult is spending on a parallel is down. The big question is what

does this mean for the US economy? Well, we'll get a better idea of

that on Friday when April retail sales number are released as well as

consumer sentiment. So how Americans are feeling about the state of the

US economy. Sue Noffke, UK equity fund manager

at Schroders. Can I start with a two part question

on Aramco, the Saudi company, I mean they only want to sell 5% of it. But

the sums are eye watering. But this announcement that they are going to

continue increasing production in oil will just surely suppress oil

prices? It is a surprise that you're trying to market selling a large

amount of shares internationally on the basis that you are going to

continue to potentially ramp up production. Whereas, the oil price

has apparently bottomed earlier this year on the expectation that people

will stop producing quite so much and that's demand and supply will

come into balance. So this could throw a spanner in the works to that

recovery in the oil price. Having said that, oil companies are valued

on their reserves and their production efficiency. And Saudi is

very well placed on both reserves and the cheapness of prodaoution

those. Who will be interested in these shares? It strikes me there is

two things. One, it is unprecedented that Saudi is opening up a business

in this way. So all of that is untried and untested and also, there

is probably a level of scepticism about quite how much they are

committed to this process. The market is driving a need for it, but

whether they are really behind the big plan to open up the company and

you think maybe if oil prices pick up again, they will reign back on

that a little? You've got 5% initially. That could either be a

large overhang of more shares to come further down the timeline or

you might just end up being a very small investor in a small minority

stake... With very little power? Indeed. And that's going to be a

feature along with governance for a lot of international investors. You

see how time flies. You're going to come back and take us through the

papers? I am. For 200 years Savile Row has

been dominated by men. Her shop is the first

on the prestigious street to be You're with Business

Live from BBC News. We've had an update

from the world's largest travel Our Business Correspondent Tanya

Beckett is in the newsroom for us. Turkey is a big issue for TUI.

Turkey visits are down by 40%. Spain is supposed to have a record year in

number of visitors this year? This is a company that sells 750,000

holidays a year. It is the world's largest. It is an anglo German firm.

It is looking to off load some brands, I will come back to that.

There are complex issues hitting the travel market, but it is talking

about revenues going up strongly this year and its share price has

been doing better on the back of that expectation. But remember, a

lot of moves at the moment in the foreign exchange markets because of

the peculiar set-up we have with interest rates at the moment.

Particularly in Europe for example and you know, the euro-pound rate is

very strong for the euro at the moment. Looking elsewhere, we're

seeing a very difficult dollar-yen situation as well. There are also

security concerns. Turkey being one of them. We've also had concerns in

Egypt and of course, concerns in more recently in Brussels as well

with the bombings there. So that's affecting the picture, but it also

has off loaded hotel beds which is its online hotel bed booking service

and it is looking to off line its specialist division, many, many

brand names under that, that is an effort to boost the balance sheet.

This is a question of narrowing its losses, 251 million wds which is a

narrowing of its loss from this time last year. Nonetheless it is a loss

and it has to do something about that if it is to keep the balance

sheet strong. Thank you very much. Staying with

travel. Just want to take you to the Business Live page, they have been

discussing the obligations of Brexit on European travel. We have talked

about it here before, because maybe Judy free European flights would

come in, cheap cigarettes, cheap booze, but not quite so good for

other things, because it says protection of the EU has been good

for compensation for flights, things like that. The pros and cons, we

have been assessing those. You're watching Business Live -

our top story... The Chief Executive of Aramco says

oil production will increase this year had of the government's

preparation to sell a 5% stake in the company. When it does list it

will be four times the value of Apple. 5% is about 120 billion?

Something like that. It is a good job we are good with maths in this.

Think of fine tailoring, you might imagine Savile Row.

In London's West End, it's been the home to top hats

For the first time in its history, the iconic street has a shop owned

Kathryn Sargent opened her shop at 37, Savile Row

just a few weeks ago, and dresses royalty,

She trained on Savile Row itself, where she spent 15 years

working at Gieves Hawkes, rising through the ranks to become

As well as serving customers from her store in Savile Row shop,

Kathryn also has clients in the United States.

Kathryn, welcome. Thanks for coming in. Thanks bringing these in. It has

been a heck of a journey, one can imagine. You started, graduated and

went straight to Saborit. I just left home, it has been a

roller-coaster but a great career so far. What do you love about

tailoring, as a layman? It is handcrafted saddle Road tailoring,

you are making something from the most finest cloth by hand to fit

people, and they are just exquisite garments -- Savile Row. There is so

much value in what we do. You have got to train a long time to be able

to create these garments, but they are of quality. It is something I am

very proud to represent Savile Row in, the history of tailoring. Savile

Row itself, it is just full of amazing history. Let's just talk a

little bit about that history, 1846, the first Taylor established then on

Savile Row, and it really did create the iconic street, it is where

everyone goes, or where everyone would like to go. LAUGHTER

Tell us what it is like opening that shop then in what is a very male

dominated industry. It just feels like a culmination of the hard work

over the last 20 years. I trained as a graduate, and worked my way up in

one of the larger houses, Gieves Hawkes in Savile Row. It is about

being a great Taylor and part of the history of the industry. It is

fantastic. It was probably hard enough slog being a master cutter

and a master tailor, but on Savile Row, again being male naked over the

200 year history, worthy blokes and obstacle, did they give you a tough

time? It is quite inclusive actually. You have got to earn the

respect by doing the training process. I was worried when I left

to start my own business that it might not go down so well but it has

been really welcomed. I am part of the industry and the community. We

all know each other and it is very supportive. Do you find people are

surprised that they book a tailoring appointment and you turn up? It used

to happen when I was a junior. You want to deliver great things for

them. But it is just about winning confidence. There is an element of

surprise when US Customs, I put on the form, what is your career?

Taylor, are you sure? What goes into something like this? You cut the

cloth, you have thousands of cloth, you can do any design. I then have a

house style, I work with the individual to flatter them, their

lifestyle. We construct a fitting and we do a process of two or three

before we finish the garment, that is a classic man's 's miss it. The

pockets aren't in place yet. Howard will it cost? It is an investment

piece, a bespoke suit should last you ten, 15 years, something like

that would start from around ?4200. $6,000. OK. That is a ladies's

finished suit. Ben, you can have that one. We appreciate your time,

Katherine, thank you very much, we appreciate your time.

Heathrow Airport has announced plans to ban night flights in an attempt

to boost its bid to build a third runway.

It's part of a package designed to reduce the impact of expansion

on the local community and the environment.

Heathrow boss John Holland Kaye has been speaking to the

Well, we want to make sure that the Prime Minister is able, when he's

ready, to get on the right choice to expand Heathrow. This is what will

secure the future for the British economy. Heathrow has been a

cornerstone for the British economy for 70 years and we need to make

sure we secure our trading links through Heathrow for the next 70

years. We don't want to be the generation that pulls the ladder are

behind us, and that is why it is so important to the UK that we get on

and expand Heathrow. Today I wanted to clear the decks, make it clear

for the Prime Minister to get on, when he's ready, to expand Heathrow.

Sue is back with us to talk this through some of the paper stories

that caught UI. Let's start with that story we headlined about

Facebook, under fire for allegedly filtering results, and trying to

pretend certain things are trending that aren't. I think this is part of

a wider scrutiny of some of these new businesses, a lot of internet, a

lot of customer data, and just how much transparency is there, how much

manipulation of our data that is purporting to be something that

maybe it is not. They could be a big point here, because they are saying

some of this Facebook staff are the gatekeepers to what goes out to 1.6

billion users, and if they are again, allegedly, saying we don't

like that political... Yes, if they are putting a spin on, that is quite

significant, and if it is not what it actually is, in terms of the

trends. But the way that you touched on comment new media is shaping the

way people consume news, traditionally you might have gone to

a newspaper and looked at the headlines and now it's about what

people are reading. It gets pushed up the rankings. That is the issue

here. It is, and whether their biases and how do you correct those

biases, and who should be correcting them? Amazon, you like this? Purely

because Amazon is getting into bed, so to speak, with Morrisons, the UK

supermarket, to sell groceries. It will shake up the way the market

works. This is their test, and they got it a bit wrong because they have

listed things were rather interesting prices. And different

pictures compared to the products they are talking about. I think

there is vast interest in what Amazon is doing, particularly here

in the UK. It is a competitive grocery space. We have had

disruption from discounters, now we have anticipated disruption from

Amazon. And Amazon are well set up to do grocery staples, but things

you have found that have long life shelf life rather than fresh. For

fresh, they have linked up with a Morrisons. This was a test. They

have got the test prices that were leaked, everyone has jumped on them,

but there wasn't much market information to be gleaned. More than

a hundred bucks for four pints of milk, I think they got it wrong!

Thank you for joining us. We will see you soon.

Parts of Scotland once again may have started with the sunshine

today, further south a case of heavy rain, some fog, even minor flooding.

South-west England and South Wales, the more persistent rain easing