:00:07. > :00:13.This is business live from BBC News. Good news is brewing for the largest
:00:14. > :00:21.beer make in the world. Revenues rising. All of this as it prepares
:00:22. > :00:26.to take over its closest rival. Live from London, that is the top
:00:27. > :00:43.story today, Friday the 30th of October.
:00:44. > :00:51.A firm could produce one third of all beer around the world but what
:00:52. > :00:54.does that mean for consumers? We find out. Also, fixing the price of
:00:55. > :00:58.toilet paper. A decade-long deal between the two
:00:59. > :01:02.map probe biggest forestry companies in the world. And we get the inside
:01:03. > :01:06.track on a tonne of technical stories.
:01:07. > :01:13.Apple, Twitter and talk talk making the headlines for different reasons.
:01:14. > :01:21.Thank you! Do you want to sit down and do this as well? We will get
:01:22. > :01:26.that from our expert Rory Catlin Jones and we want to know from you,
:01:27. > :01:30.tomorrow, it is Halloween and it is huge business in the United States
:01:31. > :01:34.and getting bigger in the UK. You spent a lot of? Do you go trick
:01:35. > :01:37.or treating or do you hate it when the little ones come to your door?
:01:38. > :01:55.Tell us what you think. I would not want to turn up at his
:01:56. > :02:01.door! Welcome to the programme. The world's, just black has had solid
:02:02. > :02:07.results with revenues rising to $4.4 billion. It is a key player in a
:02:08. > :02:14.rapidly growing market. To give you an idea of the scale, the global
:02:15. > :02:19.beer market made revenues of $440 billion last year, expected to grow
:02:20. > :02:25.to 688 billion 2020. The company will more of that market if its
:02:26. > :02:30.takeover of its smaller rival SAB Miller is successful, it it would
:02:31. > :02:33.create the world's first global brewer and it would make around a
:02:34. > :02:38.third of the world's beer so the market could become even more
:02:39. > :02:43.concentrated with less suppliers and that could push up prices. The
:02:44. > :02:47.drinks market has the George in North America and Europe and growth
:02:48. > :02:56.has all but disappeared. Big Rory is now compete with smaller craft
:02:57. > :03:01.breweries. Latin, South America, India and China are growing markets.
:03:02. > :03:06.With that RGI, I would not want you showing up at my door! Alex, great
:03:07. > :03:12.to have you with us # With that RGI. We had been talking
:03:13. > :03:17.about this. Surely the biggest hurdle for these two has to be
:03:18. > :03:24.regular treat in terms of addition, that is a third of the world's beer
:03:25. > :03:31.market in the US, 70%, are they going to allow that? Surely not and
:03:32. > :03:37.it is being well fed. The deal has been in the works for so long. They
:03:38. > :03:43.have the playbook, they need to divest SABMiller brands in the US.
:03:44. > :03:51.We have looked at Australia and Brazil, but the US, 75% of beer, it
:03:52. > :03:56.is an easy move. AB Inbev owns Budweiser and other brands.
:03:57. > :04:03.SABMiller has Miller, just so that part. I am wondering, we talk about
:04:04. > :04:08.deals. Does one need the other more? Does AB Inbev need SABMiller
:04:09. > :04:12.more #. You could argue that and people have
:04:13. > :04:18.argued that. That is one reason they are able to attract considerable
:04:19. > :04:26.premiums. It is Africa, is that the clue? If you look at the map of the
:04:27. > :04:30.world, Africa is SABMiller. AB Inbev, if you get their annual
:04:31. > :04:36.report of Africa, there is nothing in it. And we talk about controlling
:04:37. > :04:41.a third of beer sales around the world. But we talk about these other
:04:42. > :04:45.players so it seems counterintuitive that the competition is from niche
:04:46. > :04:50.players in North America and Europe they go for this mass global appeal
:04:51. > :04:54.to flood the market with this stuff rather than concentrating on smaller
:04:55. > :04:59.rivals. Yes, this deal will give AB Inbev control of the world basically
:05:00. > :05:04.in terms of beer. Beer markets, they are national so although it is one
:05:05. > :05:08.and three worldwide, you have to look at every country separately. In
:05:09. > :05:17.terms of the regulations. The competition is from Kraft brewers,
:05:18. > :05:22.Heineken have taken them in the US. That is one of the questions, why
:05:23. > :05:27.are you not focusing more on entering that space? It could be
:05:28. > :05:33.that in the US, the expansion for these two, or the 1 after the deal,
:05:34. > :05:39.it is not to buy those up. Are they just to big to enter that space? It
:05:40. > :05:44.seems you have to be nimble and well tuned. They do mass-market well and
:05:45. > :05:49.they do not get that individual niche market. That is a hurdle but
:05:50. > :05:53.they have to figure out how to do that. SAB Miller has been trying
:05:54. > :05:57.things out with tasty beers in Latin America and the US. You have to been
:05:58. > :06:03.embroiled but they have existing players who might be buying them up.
:06:04. > :06:09.Great stuff, we appreciate that and you will keep across the deal. We
:06:10. > :06:10.will talk to you again sometime. Other business stories now in the
:06:11. > :06:12.meantime. The Bank of Japan has cut its growth
:06:13. > :06:15.forecasts and pushed back the target for reaching key inflation targets,
:06:16. > :06:18.thanks to a slowing economy. The central bank in the world's
:06:19. > :06:20.third-largest economy says it now expects growth to come in at 1.2%
:06:21. > :06:24.in the year to March 2016. That's down
:06:25. > :06:26.from an earlier forecast of 1.7%. British Airways owner IAG has
:06:27. > :06:33.reported a 43% surge in pre-tax profits of $1.2 billion
:06:34. > :06:42.for the three months to September. That's compared to the $818 million
:06:43. > :06:46.for the same period last year. Profits were boosted
:06:47. > :06:53.by lower fuel costs. Shares of baby products have risen
:06:54. > :06:55.sharply after China announced Companies including Danone and
:06:56. > :06:59.Nestle stand to benefit because baby formula sales in China are expected
:07:00. > :07:19.to double in the next five years. We are going to look at the business
:07:20. > :07:25.page. We are talking about British airways, Iberia, Spain. And a
:07:26. > :07:32.Spanish low-cost airline. Try saying get fast! And is now telling this.
:07:33. > :07:39.It is highlighting, Willie Walsh, former boss of British Airways and
:07:40. > :07:44.now of IAG, that was a smart move. We talk a lot about how important it
:07:45. > :07:48.is for oil prices and the effect on businesses around the world,
:07:49. > :07:51.especially BP and Shell and the fall in profits. But good news for
:07:52. > :07:56.profits including the airlines. They have all been making profits off the
:07:57. > :08:00.back of lower fuel prices. The trick is to watch when the fuel prices go
:08:01. > :08:05.up, can they continue making profits? And another question for
:08:06. > :08:18.IAG, who is next? They are quite hungry. They have money to spend.
:08:19. > :08:26.Let's take you to China. And Japan. An 86% fall in profits at Sharp. Our
:08:27. > :08:31.correspondent has the story. Ashley, good to see you. So a sharp fall,
:08:32. > :08:38.excuse the pun! Indeed! Another disappointing result
:08:39. > :08:45.for a company that was once a giant of Japan's electronics industry.
:08:46. > :08:50.Sharp's operating profit, bold to $29 million in the three months to
:08:51. > :08:53.September. The reason is falling sales in its smartphone display
:08:54. > :08:59.screens. The firm has also posted its steepest half-year loss in three
:09:00. > :09:01.years. Sharp has been struggling to stay afloat, receiving two bailouts
:09:02. > :09:06.in three years, and in May, thousands of jobs were put on the
:09:07. > :09:09.line. The company has been under pressure from creditors to sell off
:09:10. > :09:13.its loss-making business and its Chief Executive has confirmed today
:09:14. > :09:17.it is in negotiations with several companies to do just that. Even
:09:18. > :09:24.before today's results, shares at Sharp closed 1.5% to a year low.
:09:25. > :09:29.Good stuff, have a great weekend in Singapore. And we made to Friday!
:09:30. > :09:34.What have the markets done this week? This is how the week finished
:09:35. > :09:37.in Asia. Tokyo stocks higher at the bank of Japan made it hired there
:09:38. > :09:45.would be -- made it clear there would be no more stimulus, creating
:09:46. > :09:51.speculation it may be trying to slow growth. A Chinese rate cut, the
:09:52. > :09:54.European Central Bank has said it might offer more stimulus and the
:09:55. > :09:58.Central Bank in America is about to pull the trigger on a rate rise by
:09:59. > :10:03.the end of the year. Watch that December meeting. The upswing in
:10:04. > :10:06.Asia has translated to a mixed opening across Europe. We will
:10:07. > :10:13.discuss that in a moment. First, Wall Street. The details from New
:10:14. > :10:19.York. Two oil giants will both post
:10:20. > :10:28.earnings and low oil prices will wait on the company's earnings as
:10:29. > :10:36.the industry feels the pain. Last year, Exon Mobil posted its worst
:10:37. > :10:39.results and the amount Americans are spending rose in September, another
:10:40. > :10:43.sign domestic demand is healthy despite the fact the global economy
:10:44. > :10:49.is struggling. And we will see how people feel about the economy when
:10:50. > :10:53.the new consumer index comes out, analysts say it rose slightly from
:10:54. > :10:58.September. Richard Hunter, a familiar face to
:10:59. > :11:07.the channel, good to see you, welcome. Starting with the US, the
:11:08. > :11:12.biggest economy and came out with the three-month growth numbers, we
:11:13. > :11:16.expected about 1.7%, we got 1.5%. The previous three-month period,
:11:17. > :11:21.they had growth of 3.9%. So not good.
:11:22. > :11:25.That is the reason why the Fed had been so indecisive over the last
:11:26. > :11:30.couple of months, will they, won't they? We have no meeting in
:11:31. > :11:33.November. Were they want to spoil Christmas and bring it in December?
:11:34. > :11:40.Prior to yesterday's announcement and the minutes of the other day,
:11:41. > :11:46.smartphone was on a rise last year and it is now 50-50. 50-50 for
:11:47. > :11:50.December. They could pull the trigger. I wish they would do it.
:11:51. > :11:55.Nothing is going anywhere fast, what are they waiting for, for rates to
:11:56. > :12:00.go up in the US and the UK? You are right, it needs to be out of the
:12:01. > :12:06.way. They will not do more of a quarter of 8% so arguably they could
:12:07. > :12:11.have done in September. Tiny. It is the direction and speed of travel,
:12:12. > :12:17.they will not derail what little recovery they have got. And also, we
:12:18. > :12:20.are in the middle of the third-quarter reporting season in
:12:21. > :12:24.the United States and that has been a mixed bag. Good numbers from
:12:25. > :12:30.technical stocks, poor numbers from the banking stocks. Banks should in
:12:31. > :12:33.theory and effect from the interest rate rise but in terms of corporate
:12:34. > :12:39.America, that mirrors the economic figures we see, a mixed bag. Can we
:12:40. > :12:47.go from the world's biggest economy to the third biggest, Japan? It has
:12:48. > :12:50.not done anything at the moment although it cut its inflation target
:12:51. > :12:57.and forecast for this year. It does not have a lot of tools left, does
:12:58. > :13:01.it, to do much? Not after the three arrows and all the rest of it which
:13:02. > :13:06.have yet to show any signs of success. A big problem for Japan,
:13:07. > :13:09.biggest trading partner China which is slowing down. You will take us
:13:10. > :13:16.through the papers later, thank you, we will make you work!
:13:17. > :13:24.This week has been fantastic, record results for Apple. Twitter. TalkTalk
:13:25. > :13:27.had to deal with a hacking. Our technology editor will be here to
:13:28. > :13:38.take us through the ups and downs. Will he? That is business live from
:13:39. > :13:42.BBC News. It has been a big week for banking results in the UK, RBS has
:13:43. > :13:45.just released its latest set of results and Tanya has been wading
:13:46. > :13:52.through the numbers, and is up-to-date. They have a pre-tax
:13:53. > :13:56.profit of ?952 million which is an increase of 6% last year. Would
:13:57. > :14:01.argue it is not the number that is important. This is a bank that was
:14:02. > :14:05.rescued at quite a bit of cost to the taxpayer in the wake of the
:14:06. > :14:09.financial crisis and since then, the government has sold off some of the
:14:10. > :14:14.shares, they have bought the stake down to 73% and that cost the
:14:15. > :14:20.government about ?1 billion, that was a loss, getting rid of those
:14:21. > :14:25.shares. Shares have been hovering around ?300 at the height of the
:14:26. > :14:30.pre-financial crisis. They were 500 before that. They have recovered
:14:31. > :14:36.quite a bit but is desperate it is going to a restructure, getting out
:14:37. > :14:39.of 25 countries, costing a lot of money, the restructuring costs. It
:14:40. > :14:46.is also losing the business associated with that and it has sold
:14:47. > :14:50.off citizens in the United States. This is the real problem, there are
:14:51. > :14:55.a couple of misconduct issues still for RBS. The other banks for the
:14:56. > :15:00.most part have started to see the end of that. RBS does not know how
:15:01. > :15:06.much it will cost to settle claims in the US about security mis-selling
:15:07. > :15:10.and there is a question in the UK about how it handles small
:15:11. > :15:14.businesses so this is a bank with an uncertain future in a sense it is
:15:15. > :15:18.difficult to know how the costs will stack. On the bright side, it now
:15:19. > :15:22.has money to pay a dividend and that is what it is doing and it is
:15:23. > :16:17.reforming in a clear way, it is just taking a bit of time.
:16:18. > :16:24.Solid numbers reported ahead of signing of this bust a deal to buy
:16:25. > :16:31.its Red Bull -- its rival SAB Miller. It makes Budweiser and
:16:32. > :16:34.Stella. Profits went up I9.6% in the third quarter.
:16:35. > :16:46.Profits likely to get bigger as it continues. It is Friday, it is
:16:47. > :16:51.casual, he has one button more and we will take a step back behind the
:16:52. > :16:55.headlines and get the lowdown on the big technical week, we have covered
:16:56. > :17:02.big stories here. A quick reminder of what we have learned this week.
:17:03. > :17:08.Apple reported a record profit of 11 billion dollars from iPhone sales,
:17:09. > :17:11.48 million. Twitter shares fell 11% after announcing results, despite a
:17:12. > :17:17.rise in revenue because of all growth of active users joining the
:17:18. > :17:23.social network. Only 4 million in the third quarter in the last three
:17:24. > :17:27.months. TalkTalk became the subject of discussion after it revealed a
:17:28. > :17:31.significant and substantial hacking, a 15-year-old boy in Northern
:17:32. > :17:38.Ireland has been arrested with a second teenage boy arrested today. A
:17:39. > :17:47.16-year-old boy arrested in Feltham. So clearly issues. Rory is here.
:17:48. > :17:53.Good morning. Happy Friday. A heck of a week. Starting with Apple.
:17:54. > :17:59.Where do you go with this? 51.5 billion in revenue in three months,
:18:00. > :18:06.11 billion profit, 48 million in iPhones.
:18:07. > :18:14.There is a pattern. It's all about this. It's all about the iPhone, the
:18:15. > :18:18.single most profitable product I reckon any company's ever had in
:18:19. > :18:21.history. But, it's becoming, funnily enough, it's becoming a bit of a
:18:22. > :18:28.worry for those who follow the company. They're saying two things.
:18:29. > :18:31.How long can this go on? And isn't Apple a bit overdependent on it? The
:18:32. > :18:36.proportion of its profits that come just from this are getting ever
:18:37. > :18:41.higher. They bring out other products, they bring out the watch.
:18:42. > :18:47.Too many eggs in one basket? Yeah but every time Apple then comes
:18:48. > :18:50.along and knocks it out of the park. This time, in particular, we have
:18:51. > :18:55.been expecting possibly a little worry about China, China's obviously
:18:56. > :19:00.been huge for Apple in the last year or so. After not really making much
:19:01. > :19:05.of an impact, suddenly it's been making an impact and this time huge.
:19:06. > :19:10.One thing that refreshed my memory with these Apple numbers, you tend
:19:11. > :19:15.to think Apple favours the US market with stuff it brings out there. 62%
:19:16. > :19:20.of all the money Apple rakes in comes from all of us, international.
:19:21. > :19:26.We are the one who gives the gusto to Apple. It's a global superpower
:19:27. > :19:32.in technology. We know that. Completely focussed on one product,
:19:33. > :19:36.increasingly focussed future growth prospects on one territory, China.
:19:37. > :19:39.People are beginning to say, yeah, but how much appetite is there? You
:19:40. > :19:47.can get, here is another phone... Look at you! You are a walking
:19:48. > :19:53.mobile shop. Lovely phone. Google Nexus. Lots of great phones out
:19:54. > :19:58.there. And they all do much the same. What Apple has managed to do
:19:59. > :20:03.brilliantly is maintain the differentential. It's selling at a
:20:04. > :20:08.huge price. Overer smartphone, manufacturers are getting less for
:20:09. > :20:10.them. How long can they hold on to the stunning margins, that's the
:20:11. > :20:17.question? So far, they've pulled it off. A quick word on Twitter. This
:20:18. > :20:21.is on the BBC news website. Twitter's first TV advert confuses
:20:22. > :20:29.viewers. You can see it there. What is this? Well, Twitter is in a lot
:20:30. > :20:32.of trouble. The new chief executive, its old chief executive, who came
:20:33. > :20:38.back, is trying to turn things around. One of the things is this ad
:20:39. > :20:40.trying to make Twitter appeal to a new range of people, get them
:20:41. > :20:45.excited about it again in a way they excited about it again in a way they
:20:46. > :20:48.haven't been. Here is a Twitter story, actually this week's numbers
:20:49. > :20:53.from the financial point of view weren't that bad. Revenue, they've
:20:54. > :20:59.learned how to start making money. The trouble is the whole company is
:21:00. > :21:03.predicated, the share price, on the theory it will grow like Facebook.
:21:04. > :21:08.Facebook kept on growing, one-and-a-half billion users.
:21:09. > :21:13.Twitter's growth has begun to plat toe. Analysts are beginning to worry
:21:14. > :21:20.it will never justify the sky high valuations. The share price has come
:21:21. > :21:27.down. It's still massively higher valued than Apple in terms of ratio
:21:28. > :21:32.of price to earnings. Something like 34 times earnings, whereas Apple is
:21:33. > :21:36.six times. It says, you know, Apple, mature business, not going to grow
:21:37. > :21:40.much further according to the market. Twitter still expected to
:21:41. > :21:45.grow massively and every time it fails to grow massively, huge
:21:46. > :21:49.disappointment. Quickly move on to TalkTalk. This second arrest. Apart
:21:50. > :21:55.from the second arrest, where are we at with this mess? We are still
:21:56. > :21:59.trying - what we are seeing is a lot of anxiety across the corporate
:22:00. > :22:03.world about vulnerability to hacks. More than that, how you deal with
:22:04. > :22:07.them. At first it seemed TalkTalk had done quite well. They had come
:22:08. > :22:11.out, been very bold in saying this could be terrible. Then they dialled
:22:12. > :22:16.down the message and said maybe it's not as bad as we first thought. What
:22:17. > :22:20.they've left is a vast amount of confusion. What they've done to
:22:21. > :22:27.reassure the market is actually be tough with consumers and say you
:22:28. > :22:31.won't be able to leave us without penalty and unless you can actually
:22:32. > :22:35.prove that you have lost money because somebody's got hold of your
:22:36. > :22:38.data. Lots going on. You will keep across that story. Have a great
:22:39. > :22:43.weekend. Thank you for joining us. Always a pleasure.
:22:44. > :22:46.We are talking there, the police arresting a second teenager boy in
:22:47. > :22:49.connection with that investigation into the alleged data theft at
:22:50. > :22:53.TalkTalk. Full coverage of that continuing across the BBC.
:22:54. > :22:55.In a moment we will look at the business pages. Remember always we
:22:56. > :23:01.want to hear from you and here is how to get in touch with us.
:23:02. > :23:06.The business Live web page is where you can stay ahead with the breaking
:23:07. > :23:10.news. We will keep you up to date with the latest details, insight and
:23:11. > :23:16.analysis from the BBC's team of editors right around the world. And
:23:17. > :23:25.we want to hear from you too. Get involved on the BBC business live
:23:26. > :23:30.web page. You can find us on Twitter and Facebook. Business live on TV
:23:31. > :23:38.and online whenever you need to know.
:23:39. > :23:47.Richard is back. Let's start with The Guardian. A conspiracy to affect
:23:48. > :23:51.the price - even loo paper there is a conspiracy! Affecting poor people
:23:52. > :23:57.the most, but they've been brought to task. OK. Right. Anything else to
:23:58. > :24:04.say on that, Richard? I think it stinks, the story. OK. Google.
:24:05. > :24:07.Google famously pulled out of China. It couldn't get its own way with
:24:08. > :24:12.security, safety all that sort of stuff. It says now the parent
:24:13. > :24:16.company may go back in on its own terms and make sure we all know this
:24:17. > :24:22.is a different thing it's going back into. Two things at play here.
:24:23. > :24:26.Firstly the whole issue of the Chinese and how they regulate their
:24:27. > :24:31.own internet and won't let certain foreign institutions in, etc. I
:24:32. > :24:35.suspect the other thing is that Google or Alphabet have probably
:24:36. > :24:40.been looking sideways rather enviously of what Apple is doing
:24:41. > :24:44.there. They can't afford not to be there, regardless of what they think
:24:45. > :24:48.or morals they need to be there financially. You are right, of
:24:49. > :24:52.course. China is the second largest economy in the world. Most estimates
:24:53. > :24:56.would say it's going to be the largest economy in the world within
:24:57. > :25:01.ten or 15 years. Clearly it's a massive piece of business, they not
:25:02. > :25:03.only need to start trading there but become rather entrenched in the
:25:04. > :25:08.Chinese psyche, as well. Interesting. Let's try to get this
:25:09. > :25:14.before we have to wrap up. Some retailers stepping back from Black
:25:15. > :25:20.Friday, the day after Thanksgiving. Retailers turn a profit. Is this
:25:21. > :25:24.because of online? Partially. It's also, and something because this is
:25:25. > :25:32.taken off in the UK the last couple of years, retailers are finding,
:25:33. > :25:35.hold on, all we are doing is putting forward Christmas sales. Christmas
:25:36. > :25:38.sales pop off a cliff because they're waiting for January sales or
:25:39. > :25:43.it's prebought on Black Friday as is. They're finding the same in the
:25:44. > :25:48.States. I am sure it won't see an end to the crazy pictures of people
:25:49. > :25:50.fighting over TVs and stuff. Thank you, Richard. Thank you for your
:25:51. > :25:52.company. You are up to date with the business news. From him and me,
:25:53. > :26:12.goodbye. Hello. The weather has the potential
:26:13. > :26:13.to be really quite warm this weekend but only if low cloud