Browse content similar to 18/05/2016. Check below for episodes and series from the same categories and more!
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This is Business Live from BBC News with Ben Thompson and Sally Bundock. | :00:00. | :00:09. | |
Nigerians take to the streets in protest against government plans | :00:10. | :00:15. | |
to raise the price of fuel by two-thirds. | :00:16. | :00:17. | |
Live from London, that's our top story | :00:18. | :00:20. | |
Nigerian trade unions say they'll ignore a court ruling and strike | :00:21. | :00:42. | |
as planned after the government ups fuel prices by 67% | :00:43. | :00:46. | |
Shares in Suzuki slump as it becomes the latest carmaker to be | :00:47. | :00:49. | |
embroiled in the Japanese fuel testing scandal. | :00:50. | :01:09. | |
20 restaurants, 23 swimming pools and a slide that his ten stories | :01:10. | :01:16. | |
high, Aaron is on the list of the biggest cruise ship in the world, | :01:17. | :01:20. | |
joins us live and he will talk to the boss of real Caribbean. Also, | :01:21. | :01:24. | |
would you ever consider a cruise holiday? Is your idea of holiday | :01:25. | :01:30. | |
heaven or holiday hell? Get in touch. | :01:31. | :01:43. | |
A very unscientific office poll puts it at 50-50. Keep you comments | :01:44. | :01:49. | |
coming in. We start today in Nigeria - | :01:50. | :01:53. | |
where unions are expected to strike today - despite a court ruling, | :01:54. | :01:56. | |
banning any industrial action. The protest comes a week | :01:57. | :01:59. | |
after the government announced it would raise the price | :02:00. | :02:01. | |
of petrol by two-thirds Politicians hope cutting fuel | :02:02. | :02:03. | |
subsidies will help to address But why is one of the largest | :02:04. | :02:09. | |
oil producers in Africa struggling to meet the demand | :02:10. | :02:14. | |
of its own population? The global slump in oil prices has | :02:15. | :02:18. | |
taken its toll on the country's economy and it means the US dollar | :02:19. | :02:23. | |
is buying a lot more That's all too evident here - | :02:24. | :02:26. | |
and it means Nigeria's buying power struggled to get the US dollars | :02:27. | :02:31. | |
needed to import the REFINED fuel the Nigerian government wants | :02:32. | :02:44. | |
to raise the price from 43 US cents With me now is Spencer Welch, an oil | :02:45. | :02:54. | |
analyst with IHS, based in London. Another element for Nigeria is a tax | :02:55. | :03:10. | |
on some of their key oil production areas. Talk us through what is | :03:11. | :03:16. | |
happening. The government was subsidising the price of fuel and | :03:17. | :03:21. | |
that was making it an economic to import fuel so there were petrol | :03:22. | :03:25. | |
shortages, so they have removed the subsidies and that has caused prices | :03:26. | :03:29. | |
to go up and unhappiness in the country. One of the reasons for | :03:30. | :03:35. | |
removing the subsidy was they were struggling to pay those because of | :03:36. | :03:38. | |
lack of revenue, that has become worse in the last month or so with | :03:39. | :03:43. | |
militant attacks, so the production has been reduced by about 40%, a | :03:44. | :03:47. | |
significant trap in revenue to the country. Add that the other elements | :03:48. | :03:56. | |
and you a serious problem. It's mostly military attacks but not | :03:57. | :03:58. | |
solely, they have been operational problems. Oil makes up 10% of | :03:59. | :04:05. | |
Nigerian GDP, 50% of government revenue and 90% of export sales so | :04:06. | :04:10. | |
yes, it's a serious problem for the country. It is a country which is | :04:11. | :04:19. | |
very reliant on oil. That has been a problem that Nigeria has faced for | :04:20. | :04:22. | |
many years, while the price was always headed higher, I guess there | :04:23. | :04:25. | |
was not the incentive for the government to. Diversify. Nigeria | :04:26. | :04:33. | |
are trying to diversify their economy as are other countries which | :04:34. | :04:36. | |
are reliant on the price of oil but it takes time, that's their biggest | :04:37. | :04:45. | |
natural resource. It is starting to increase, but it has a long way to | :04:46. | :04:50. | |
go. In terms of the applicant what's your thinking? In terms of the | :04:51. | :04:56. | |
strikes, it's good to take time, the government was forced to remove the | :04:57. | :04:59. | |
subsidy, they really couldn't afford to carry on doing that, so the | :05:00. | :05:04. | |
country needs to get used to be higher oil price. In terms of the | :05:05. | :05:09. | |
military attacks, that is a complex situation, hard to resolve, but they | :05:10. | :05:17. | |
need to do that. Quickly, cruise ship holiday, holiday heaven or | :05:18. | :05:23. | |
holiday hell? Heaven. Keep your comments coming in. We will talk | :05:24. | :05:27. | |
through them later. A bill that would allow the families | :05:28. | :05:28. | |
of 9/11 victims to sue the Saudi government has passed a key hurdle | :05:29. | :05:35. | |
in the US Senate. The bill, known as the 'Justice | :05:36. | :05:37. | |
Against Sponsors of Terrorism Act' now moves to the House | :05:38. | :05:40. | |
of Representatives. could cause his government | :05:41. | :05:43. | |
to withdraw US investments. US inflation rose at its fastest | :05:44. | :05:49. | |
pace in three years last month, The Consumer Price Index | :05:50. | :05:52. | |
was up 0.4% last month, the biggest one-month rise | :05:53. | :05:56. | |
since February 2013. A build-up in inflation could see | :05:57. | :05:59. | |
the Federal Reserve raising interest Japan's economy grew | :06:00. | :06:02. | |
by 1.7% in the first The better-than-expected growth | :06:03. | :06:07. | |
was thanks largely to higher government spending which offset | :06:08. | :06:16. | |
weakness in exports. Analysts are worried | :06:17. | :06:18. | |
about the outlook for consumer spending, which is critical | :06:19. | :06:20. | |
to Japan's economy, accounting A rare pear-shaped vivid | :06:21. | :06:22. | |
pink diamond set a world The "Unique Pink", weighing 15.38 | :06:23. | :06:29. | |
carats and mounted on a ring, It was sold to an Asian private | :06:30. | :06:35. | |
collector bidding by telephone. I am expecting its arrival next | :06:36. | :06:56. | |
week! The pink Panther is interested as well. Hello Tulisa, watching us | :06:57. | :07:03. | |
on a cruise ship, in this is Canal, she says holiday heaven. Lisa says | :07:04. | :07:13. | |
it certainly is holiday heaven. I never say, holiday heaven if you are | :07:14. | :07:15. | |
offering to pay. No is the answer. In Asia, Suzuki is the latest | :07:16. | :07:21. | |
carmaker to be drawn into What more can you tell us? Over the | :07:22. | :07:35. | |
last couple of minutes we have been seeing reports coming out of Suzuki, | :07:36. | :07:38. | |
it appears they have raced a statement in which they have | :07:39. | :07:44. | |
confirmed that there were improper testing methods used in some of | :07:45. | :07:48. | |
their cars, but they have denied that they cheated when it came to | :07:49. | :07:53. | |
mini plating the fuel economy data. What that means is that is coming | :07:54. | :07:59. | |
against the backdrop of Japanese auto-makers being put under the | :08:00. | :08:02. | |
spotlight, and the scrutiny after Mitsubishi motors recently admitted | :08:03. | :08:10. | |
it had manipulated its fuel economy data, making some of its vehicles | :08:11. | :08:14. | |
appear more efficient in terms of fuel than they actually were. As a | :08:15. | :08:18. | |
result, the Japanese transport Ministry ordered all of the | :08:19. | :08:22. | |
auto-makers in the country to come up with results or investigate | :08:23. | :08:25. | |
whether or not they had been compliant with the country, with | :08:26. | :08:34. | |
Japan's fuel economy laws. These comments are reflecting results of | :08:35. | :08:36. | |
that investigation, I'm sure there will be more to come stop we will | :08:37. | :08:41. | |
keep you up-to-date. You have been looking as well at the US tariffs on | :08:42. | :08:51. | |
steel coming in from China? Yes, 522% is the amount of tariffs that | :08:52. | :09:00. | |
they have slapped on Chinese steel. This is part of what the US has been | :09:01. | :09:05. | |
doing over the last couple of months as the US the industry has suffered | :09:06. | :09:09. | |
from what they say is China's dumping of steel into US markets. | :09:10. | :09:14. | |
This is not that significant if you look at the amount of money involved | :09:15. | :09:18. | |
with this particular ruling, only about 200 million dollars worth of | :09:19. | :09:22. | |
Chinese steel that it affects that it is coming against the backdrop of | :09:23. | :09:25. | |
the US elections are a hot topic this year. Thank you. A quick look | :09:26. | :09:31. | |
at the numbers. Japan's stronger-than-expected | :09:32. | :09:40. | |
growth data and then the U.S. In the UK, | :09:41. | :09:42. | |
we get the latest unemployment and wages data from the UK economy | :09:43. | :09:47. | |
hot on the heels of yesterday's weaker than expected | :09:48. | :09:50. | |
inflation numbers. We'll talk more about that | :09:51. | :09:52. | |
in a moment, but first let's check in on Wall Street - | :09:53. | :09:54. | |
Michelle has the details. Curious about the red Federal | :09:55. | :10:04. | |
reserve things? Investors will get an insight on Wednesday with the | :10:05. | :10:08. | |
release of minutes from the April policy meeting. Last month the Fed | :10:09. | :10:13. | |
at the door open for a hike in June. The minutes may help clarify what is | :10:14. | :10:17. | |
driving their thinking. Wednesday is also a busy day for corporate news. | :10:18. | :10:23. | |
So far retailers have been struggling to adapt to changing | :10:24. | :10:30. | |
consumer habits. We will target. One area consumers seem to be spending | :10:31. | :10:36. | |
more on is fixing up their homes and investors think this will lift | :10:37. | :10:40. | |
first-quarter profits at a home improvement store. And all the major | :10:41. | :10:46. | |
tech companies hold conferences, these have become huge events that | :10:47. | :10:51. | |
routinely see major announcements. Google's three-day event will kick | :10:52. | :10:59. | |
off. Thanks to Michelle. I believe we have people going to that Google | :11:00. | :11:00. | |
event. Joining us now is Justin | :11:01. | :11:02. | |
Urquhart-Stewart, he is the Director Cruise ships? I would rather not. I | :11:03. | :11:17. | |
prefer proper sailing. When you get wet! You go on those things, you get | :11:18. | :11:23. | |
vertigo! Less talk about financial markets. A big day for UK data, hot | :11:24. | :11:28. | |
on the heels of yesterday's inflation data, what are we | :11:29. | :11:33. | |
expecting? We are close to technically full employment, that | :11:34. | :11:36. | |
doesn't mean everyone being employed but it'll probably level out, the | :11:37. | :11:41. | |
figures would we say the same overall but maybe people claiming a | :11:42. | :11:44. | |
bit more. We have record numbers of people being employed, really good | :11:45. | :11:50. | |
figures. The inflation figures look low but if you look at the core | :11:51. | :11:53. | |
figures you will see in the service sector, we do have inflation. So | :11:54. | :11:57. | |
although interest rates won't be going up soon, Mark Carney is | :11:58. | :12:03. | |
looking at that and saying, it is there he warned that they will be | :12:04. | :12:07. | |
more inflation later in the year. When do you think Janet will make a | :12:08. | :12:12. | |
next move? Looks as though there is more inflation, it as that will be | :12:13. | :12:15. | |
brought forward and you see the reaction on the market, to come | :12:16. | :12:20. | |
further forward. It looks like this summer. The US dollar is up but as | :12:21. | :12:27. | |
every currency in the world, oil prices going up as well. The herd | :12:28. | :12:32. | |
has moved in one direction. On that basis, be careful. But the line we | :12:33. | :12:36. | |
should look at, inflation is going up, look at the price of gold, you | :12:37. | :12:40. | |
can see where the concerns are. Those rates are going to go up | :12:41. | :12:44. | |
sooner than later so long as the data continues to back it up. The | :12:45. | :12:49. | |
data changed, the market changed, and she changed. We will see you in | :12:50. | :12:51. | |
a minute. Aaron will be live | :12:52. | :12:54. | |
on board the biggest Yes, she may look like a shopping | :12:55. | :13:08. | |
mall in California but you are right, I am on the world's biggest | :13:09. | :13:12. | |
cruise ship and we are about to interview the CEO and President of | :13:13. | :13:16. | |
Royal Caribbean talk about the challenges facing this $40 billion | :13:17. | :13:18. | |
industry will stop You're with Business | :13:19. | :13:21. | |
Live from BBC News. Sales at fashion label Burberry | :13:22. | :13:29. | |
are down 1% over the last year March and pre-tax profits fell | :13:30. | :13:32. | |
?29m to ?415.6m. Chief Executive | :13:33. | :13:42. | |
Christopher Bailey has described the trading | :13:43. | :13:43. | |
conditions as "challenging". He'll also have his eye | :13:44. | :13:49. | |
on the company's share price - it's down more than a third | :13:50. | :13:52. | |
in the past 12 months. Nivindya Sharma is a Retail Analyst | :13:53. | :13:58. | |
at Verdict Retail. just assess these figures, because | :13:59. | :14:10. | |
there is a lot to take in. Sales down 1%, not hugely promoted on the | :14:11. | :14:14. | |
face of it but it's the profit figure which is once again suffering | :14:15. | :14:18. | |
because of a slowdown in China. Yes, I think the slowdown was coming, we | :14:19. | :14:23. | |
all knew it was going to happen for burglary. There is another problem | :14:24. | :14:29. | |
is they have had. That put the figures in context, nasty was a | :14:30. | :14:39. | |
really good year for burglary. -- Burberry. That is where the profit | :14:40. | :14:45. | |
figures come into play because that is where Burberry has really | :14:46. | :14:47. | |
struggled and that is the focus they have to put on. If you look at the | :14:48. | :14:56. | |
recent results, talking about cost efficiencies, how they will improve | :14:57. | :15:00. | |
processes, cut costs. It is like a wake-up call for the Petar because | :15:01. | :15:04. | |
let's face it, they are very few years of strong growth. -- a wake-up | :15:05. | :15:13. | |
Burberry sees better times ahead. Burberry sees better times ahead. | :15:14. | :15:22. | |
Burberry is a brand that has been exposed more to China than other | :15:23. | :15:29. | |
brands so it has been hit quite hard. It is doing well in Japan. On | :15:30. | :15:35. | |
mainland China, it hasn't done badly compared to Hong Kong and Macau. You | :15:36. | :15:41. | |
have to look at where your profit is, where are your best performing | :15:42. | :15:45. | |
stores and push the effort there. It does need to focus more in Japan and | :15:46. | :15:49. | |
look at other areas. Our top story - tensions | :15:50. | :15:55. | |
are running high in Nigeria. Trade unions say they'll ignore | :15:56. | :16:05. | |
a court ruling and carry out The government plans to hike | :16:06. | :16:09. | |
the price of fuel by two thirds in response to a shortage | :16:10. | :16:19. | |
of petrol. The world's largest cruise ship has | :16:20. | :16:27. | |
arrived at Southampton ahead It's nearly 1,200 ft long and cost | :16:28. | :16:30. | |
a billion US dollars to build. It can carry 6,780 | :16:31. | :16:37. | |
guests and 2,100 crew, and took more than two-and-a-half | :16:38. | :16:41. | |
years to construct. So who better to take it for a spin, | :16:42. | :16:46. | |
but our very own Aaron?? Show us what is there, because | :16:47. | :16:58. | |
frankly at the moment it looks like a shopping wall. You took the words | :16:59. | :17:04. | |
right out of my mouth. It looks like I'm somewhere in California in May | :17:05. | :17:08. | |
shopping wall but believe it or not I am on the world's largest shopping | :17:09. | :17:14. | |
-- largest cruise ship. You mentioned all the passenger numbers | :17:15. | :17:19. | |
and the cost, one and a half billion dollars, four and a half years in | :17:20. | :17:22. | |
the making, and these ships just get bigger and bigger. 24 million people | :17:23. | :17:29. | |
this year alone will hop on board and cruise the high seas. It is the | :17:30. | :17:34. | |
horror -- fastest-growing industry and has been for a long time. The | :17:35. | :17:39. | |
fastest industry within the travel sector and the fastest-growing in | :17:40. | :17:44. | |
terms of around the world is my neck of the woods, Australia, New Zealand | :17:45. | :17:48. | |
and the Pacific region. Let's speak to this CEO of Royal Caribbean. | :17:49. | :17:56. | |
Mike, you are sitting on, is this a jack? Why is there a jaguar on this | :17:57. | :18:02. | |
ship? Why not. It's what we do. We like to give people a great time. | :18:03. | :18:08. | |
Royal Caribbean has five of the biggest ships in the world so now | :18:09. | :18:11. | |
you have six of them with this one as well. This is a beast, in a nice | :18:12. | :18:19. | |
way. Why do you keep going bigger and bigger? We have 25 ships in our | :18:20. | :18:28. | |
feet in total, including six of the largest ships in the world and we | :18:29. | :18:32. | |
were very proud to take delivery of Harmony of the Seas. We build them | :18:33. | :18:35. | |
because people want and experience. It is packed with experiences and | :18:36. | :18:42. | |
innovation. That is why we do it. Can I just interject there. Do | :18:43. | :18:45. | |
people really want all this on board? You are on see -- at sea with | :18:46. | :18:53. | |
nearly 9000 people. Do people really want that? What about a 4000 | :18:54. | :19:00. | |
capacity ship? We have 4000 capacity ships but this ship is pretty much | :19:01. | :19:04. | |
sold out all summer and all winter and that is testimony to the fact | :19:05. | :19:09. | |
that people want this. You spent 1,000,000 and a half... Sorry, I | :19:10. | :19:16. | |
meant 1,000,000,000 and a half. I wish it was 1,000,000 and a half. | :19:17. | :19:23. | |
Where Yuri that money? The life of the ship is 25 years and it is | :19:24. | :19:31. | |
around ten to 15 years that we start to see investment returned. Correct | :19:32. | :19:36. | |
me if I am wrong but most of your revenue comes from the Americans, | :19:37. | :19:40. | |
doesn't it? Are you confident in the global economy that you can still do | :19:41. | :19:45. | |
that? We had the financial crisis, the downturn, your industry got hit | :19:46. | :19:49. | |
during that. Are you confident, looking at America, where we are not | :19:50. | :19:55. | |
seeing double-digit growth? The US economy seems to be in good | :19:56. | :20:00. | |
strength. The UK is a good market for us as well. Australia, China and | :20:01. | :20:05. | |
Asia-Pacific is doing really well as well. We feel good about what we are | :20:06. | :20:10. | |
seeing in terms of demand and certainly in the United States, | :20:11. | :20:14. | |
demand is really strong. Let's talk about some of the challengers, shall | :20:15. | :20:19. | |
we? The industry itself doesn't have a great track record when it comes | :20:20. | :20:22. | |
to being environmentally friendly. I know ships are getting greener but | :20:23. | :20:26. | |
we were looking at some of the sums and I have got them here. On an | :20:27. | :20:30. | |
average one-week cruise of about 6000 passengers, it can generate | :20:31. | :20:36. | |
880,000 litres of raw sewage. A lot of that is dumped at sea, isn't it? | :20:37. | :20:40. | |
We have incredibly environmentally friendly programmes and I would say | :20:41. | :20:46. | |
our company is a leader in this space. This ship is the most energy | :20:47. | :20:50. | |
efficient ship in the industry and we are very proud of that. In terms | :20:51. | :20:55. | |
of environmental management, we are really focused on stewardship and we | :20:56. | :21:00. | |
are leaders in terms of managing waste except except. When you think | :21:01. | :21:04. | |
about it, it's 6000 people go on vacation, wherever they go in the | :21:05. | :21:08. | |
world, waste is created. You have to be realistic about it. The way we | :21:09. | :21:14. | |
manage it is far superior to what you would see in other vacation | :21:15. | :21:19. | |
destinations. I want to speak to you about improving the image. There | :21:20. | :21:24. | |
were many within your position in the industry he said, what we | :21:25. | :21:28. | |
haven't done is sold our message to non-cruisers well enough. That is | :21:29. | :21:35. | |
one of the challenges. Trying to show people how incredible this | :21:36. | :21:38. | |
vacation experience is. I've seen mentioned at the beginning of this, | :21:39. | :21:41. | |
the growth of this industry is outstanding. That is because people | :21:42. | :21:46. | |
have a great vacation. It is a quality experience. It is difficult | :21:47. | :21:50. | |
to explain how incredible this experience is and that is one of the | :21:51. | :21:54. | |
challenges in terms of our marketing, communication and word of | :21:55. | :21:57. | |
mouth. Word of mouth is the most important way of expanding to people | :21:58. | :22:00. | |
how incredible this is and to try it. I have got to wrap it up but can | :22:01. | :22:06. | |
I just quickly say, he is the godmother? The godmother, by the | :22:07. | :22:11. | |
way, is somebody who cracks a howl -- a bottle of champagne against the | :22:12. | :22:18. | |
hull of the ship. We have not named her yet. It is a secret that we will | :22:19. | :22:21. | |
announce it in the next three or four weeks. He is a little tip in | :22:22. | :22:27. | |
its south. I've been doing my sums. A lot of people retire at sea, so | :22:28. | :22:34. | |
you think about it, when we need help and care and go into a home, | :22:35. | :22:42. | |
the thousand ?500 is how much it costs on land. -- the thousand ?500 | :22:43. | :22:48. | |
is how much it costs on land. How much would it cost on a ship? ?3000. | :22:49. | :22:59. | |
Can you ask him, can I be the godmother? We are taking all | :23:00. | :23:04. | |
applications and I think Sally is great, so she has a great chance. | :23:05. | :23:10. | |
That's not what you told me before we went to her! ' guys. I am going | :23:11. | :23:17. | |
to have plenty more throughout the rest of the day. Coming up next, we | :23:18. | :23:21. | |
will be on Victoria Derbyshire's show. Lots of you sending in | :23:22. | :23:32. | |
messages saying, holiday heaven if Aaron stayed on board because he's | :23:33. | :23:34. | |
my reason to get up on Friday morning. | :23:35. | :23:40. | |
Let's just reintroduced Justin who is back and has been in joining that | :23:41. | :23:50. | |
with us. -- enjoying that with us. I don't want to go on a shopping | :23:51. | :23:55. | |
centre that floats around the place. If they had specialist things, like | :23:56. | :23:58. | |
specialist history things, I would go. Ken in Armitage says, Sally, it | :23:59. | :24:10. | |
is cold to Newcastle without pressure, I would love to go on a | :24:11. | :24:16. | |
cruise, but they charge single is 90% cost of two people sharing. It | :24:17. | :24:20. | |
depends who you are as to how cost-effective it is. Many people | :24:21. | :24:23. | |
are saying it is too expensive and they afford it. Some of the cabins | :24:24. | :24:29. | |
are inside and don't even have a portal. Mum not my idea of fun. | :24:30. | :24:37. | |
Let's look at the news now. HSBC saying Saudi Arabia is in stagnation | :24:38. | :24:43. | |
and decay. It is being very out there about its views of Saudi | :24:44. | :24:50. | |
Arabia. It is highlighting quite rightly the issue around Saudi | :24:51. | :24:52. | |
Arabia. It is a one track -- one trick pony and only has oil. What is | :24:53. | :25:00. | |
it going to do? It has said it will diversify within four years. As have | :25:01. | :25:07. | |
other countries, I remember Mr Putin saying that, and it doesn't happen. | :25:08. | :25:13. | |
When you look at Saudi Arabia, what is their USB going to be? It will be | :25:14. | :25:21. | |
very difficult to do, particularly with such a young population. That | :25:22. | :25:24. | |
will cause a lot of problems over the coming years, particularly in a | :25:25. | :25:34. | |
country which has been universally subsidised over the last few years. | :25:35. | :25:39. | |
They are used to getting free electricity, free rents, and that | :25:40. | :25:48. | |
the mind that were difficult. Justin, as always, thank you so | :25:49. | :25:50. | |
much. Nice to see you. That's it from | :25:51. | :25:54. | |
Business Live today. There will be more business news | :25:55. | :25:56. | |
throughout the day on the BBC Live webpage and on World Business | :25:57. | :25:59. | |
Report. Good morning. What a difference a | :26:00. | :26:13. | |
Day makes. We have got a lot of rain in the story today. That will have | :26:14. | :26:18. | |
an effect on the temperatures as well. Some of the rain will be heavy | :26:19. | :26:22. | |
at times as it continues to push its | :26:23. | :26:23. |