Browse content similar to 28/01/2016. Check below for episodes and series from the same categories and more!
Live from London, that's our top story on Thursday
Shell shareholders have given the green light -
now it's up to investors in BG Group to seal the deal.
And to say they are on board. With prices at around $30 a barrel, does
it make financial sex. Tax transparency -
will the new OECD deal make corporate giants pay
the right amount of tax.? And it's a mixed picture emerging
in Europe on financial markets - lots of companies have reported
earnings as investors cherry pick Monarch Airlines was close
to collapse just two years ago, but it's set to return to profit
after rebranding itself And how much is your
information worth? Facebook says it makes $3.73
a year from each of us, so we want to know -
is it right that firms profit Let us know, use the
hashtag BBC BizLive. Royal Dutch Shell shareholders have
given the go ahead for its takeover It's a merger that would make Shell
the world's biggest liquified The deal is worth $49 billion
dollars - and as well as LNG assets, it would also give Shell access
to valuable oil resources But some Shell shareholders have
questioned the logic of the deal - as oil has dropped from 55 dollars
a barrel when it was first announced in April - to just 30
dollars a barrel. BG Group shareholders
are expected to approve the deal If it goes ahead, the companies
would merge on the 15th of February. Christopher Wheaton,
Energy Analyst at Allianz Global Welcome. $49 billion, the deal, but
makes financial sense given the makes financial sense given the
sell-off in oil. Clearly shareholders in Shell think it does.
We have had mixed views in the market but it is important to note
the value of the deal has come down the third, $25 billion, since it was
announced last year. That is because Shell chose to pay sensibly part in
shares in part in cash and the falling price has been reflected in
the lower price they are paying. On paper it seems to make sense because
it is about streamlining operations and controlling a bigger slice of
the market. What is in it for both sides, when we talk about potential
gains? BG, they get part of a bigger business. Shell, it is important
they focus on the parts of the oil industry they are good at, such as
liquefied natural gas and deepwater offshore oil and gas industry. If
you look their history, that is where they have made the highest
return on capital. It makes sense for Shell to focus on the bits of
the industry it is good at. What is interesting in the climate of lower
oil prices, yesterday reports that officials from the IMF and World
Bank looking at Azerbaijan, and an emergency loan to prop up their
industry, given their dependence on oil. Are we likely to see more of
that, with countries dependent on the price of oil, in the same way
these companies look at the price, these countries say they cannot
afford to pay their bills? The industry is screaming in pain at $30
oil. And countries like Azerbaijan, you could add Nigeria, Columbia, and
Middle Eastern nations. It is hurting. We will see more of this
intervention at government level. There have been issues in Russia on
whether they need to tax the oil and gas industry to raise more
government revenue because the budget does not work at $30 oil. We
will see more of this, just as in the commercial sector more banks
trying to recover money they have led to the oil industry,
particularly the US shale industry over the last five years. To return
to this merger issue. What happens next? Shell shareholders giving this
the green light, are we set for it to go ahead? That is one formality,
the BG shareholder vote today which will almost certainly go through.
And the green light goes on on the 15th of February. Thanks very much.
Good to see you. When we hear about that result, the
vote, which is expected to be approved, we will let you know.
Facebook has been winning more friends on Wall Street.
Shares in the social media giant jumped almost 12 per cent
in after-hours trading after it said profits doubled in the last quarter.
Revenue was up strongly - as were the number of active users
Facebook has now beaten analysts' expectations for ten quarters
in a row as advertising revenue continues to surge.
EBay's shares have fallen sharply after it forecast lower
than expected earnings that could mean a decline
EBay is struggling with competition from rival Amazon and traditional
retailers like Wal-Mart that are boosting their online presence.
Rules to stop companies using complex tax arrangements
to avoid paying corporate tax have been agreed by 31 OECD members.
They will make it harder for firms to hide money in tax havens or play
one country's tax authority against another.
Firms such as Google, Amazon and Facebook must now pay tax
in the country where the profits are made.
Staying with the theme of tax, I want to take you to the life page
because the Today programme have spoken to a Commissioner responsible
for the deal over taxes and a debate about whether the EU could force
Google and other companies to pay more tax in the country's revenue is
earned. It has been debated, Starbucks, Tech giants, specifically
related to this row. A debate on the life page about whether the EU could
make a firm start paying fairer tax in the countries in which they earn
the money. I was going to jump in to say something I noticed today, this
is my opportunity to mention it, we have results coming in, Apple,
Boeing, eBay. Yesterday we had a steep fall on the markets in the US.
Apple and Boeing plunging on disappointing results. Together the
share price fall accounted for more than half the slide on the Dow Jones
industrial average. They are such big companies, and Apple the biggest
in terms of market capitalisation. That is interesting. Please agree
with me! The world is glad he reported on that news. We have heard
from many big names in technology. Samsung has reported profits down
40% for the fourth quarter, It is squeezed at both ends of the
smartphone market we can talk to Sarah. Give us more detail on how
Samsung is doing. Hello, Sally. After years of record profits it
appears things are finally slowing down for Samsung Electronics.
Profits fell by about 40% down to $2.7 billion in the first three
months to December. That is significantly below estimates.
Samsung warned it would be difficult to maintain profits this year.
Smartphone sales hit by strong competition, and cheaper Chinese
rivals and at the top of the market, Apple. The slowdown in China is
taking its toll. The most recent top of the range handset, Galaxy Essex,
fails to excite consumers and their other core business, semiconductors,
faces we can demand, for personal computer. It makes components for
the iPhone and that too is also facing a slowdown in sales. Thanks.
Ling us in on Samsun, it is one of those companies that has a massive
impact on the market here. The big loser on the Dow Jones, Apple, and
Boeing. Six and a half per cent down, Apple shares. A lot of
companies have come up with earnings. Diageo, better than
expected news. The FTSE was up. And Germany France hovering around the
same level, one third. It is reading between the lines as companies
reveal how they are faring stock companies like Diageo and the
American firms, some of them affected by the dollar. For a look
ahead today and what we can expect, we can go to the US. Microsoft
should impress and it is looking at how the strong dollar is affecting
revenue. The company has been more focused on its cloud business.
Amazon will look to beat expectations when it reports
fourth-quarter revenue. It is thought to have cornered 43% of
online sales in November and December and that combined with
strength in cloud computing should have led to strong growth. Ford
motor company is expected to announce record profits in 2015. The
US Congress department will release data on orders for US manufactured
goods which likely slipped in December because of the strong
dollar and fall in global demand. As far as financial markets are
concerned, in Asia we saw reaction to the Fed statement about interest
rates. But they are keeping a close eye on events before they make their
next choice on rates. We expect it to go up rather than down.
We are keeping an eye on UK GDP figures also today. We asked at the
start of the programme how much your personal information was worth,
relating to the fact Facebook said it makes $3 73 from each of us on
average from information we put on the site. Add that up and it comes
to a lot of money. Some comments. Never give correct details, says
Jerome Hurel. Protect your security data. Is he
really called to Rome?! If you are a product and you are
using it for free, you are the product and they are entitled to
make that money from you. Alistair says few people know how
Facebook generates their revenue, including HMRC. Perhaps like me the
best protest is to cancel our Facebook accounts, he says.
Another says, perhaps there should be an opt out where Facebook users
could pay $4 to opt out from that data being used. Other suggest stop
using it. Still to come. Monarch Airlines was
close to going under but the company has reinvented itself as a low-cost
carrier. That move is paying off. The chief executive will be hair.
Stay with us for that. We can bring you more detail now on the figures.
We are expecting to get a number of around double .4,. .5%, something
consistent with the economy growing at 2%. Not terrible and that not
relent. Let me show you where we have been. There is the Big Dipper,
the great recession. We have been hovering -- between 2% and 3% -- the
big decrease. Recently we have seen service sector is doing well but the
bit the government would like to stimulate, manufacturing,
construction, have been pretty weak. The march of the makers has not
materialised. Manufacture has been weak. Expects the oil price plunge
to affect the North Sea, which will have an impact on manufacturing. We
expect half a per cent but it will not be the headline number that is
interesting, it will be the way it is made up and it will show a
picture of a balanced, rebalanced economy. And the cocktail of risks
facing the economy, which the Chancellor highlighted. Those are
still ringing in the air is of many. -- in the ears. We have seen big
market falls and we have had volatile stock markets. Confidence
is not running at a high level. Perhaps people are not taking on an
extra person, not investing in an extra bit of equipment. At 2%, the
Chancellor will say we are hanging in there. He would like to see it
more balanced. It is easy to underestimate the effect the North
Sea house on the UK manufacturing economy, particularly in north-east
Scotland and North East England and I expect it to show up in the
numbers. David Cameron has is visiting
Aberdeen, this is a real issue for those parts of Scotland but for the
industry as a whole in the UK. Extra help is being demanded by the
authorities in Scotland when it comes to the help that can be given
to Aberdeen. You're watching Business
Live - our top story: The energy megamerger. There is
expected to be a $49 billion deal today. We will be watching the
details. Until then we are going to turn our attention to the airlines.
In 2014 - one of the UK's oldest airlines - Monarch -
looked like it was on the edge of collapse.
But after a rescue deal and more than a year of restructuring.
It says its underlying earnings for 2015 will be more
So how did the airline manage to turn itself around?
Its workers took large pay cuts - and 700 staff were made redundant.
It also restructured its routes, axing long-haul services -
and instead focusing on becoming a low-cost carrier.
With us is Andrew Swaffield, chief executive of Monarch Airlines
He has a lot to do with the changes. Thanks are coming on the show. Just
to say that when you took over, you were not aware of how bad things
were. That's right. I came in and aware of those issues, which turned
out to be helpful for me because I think that when you come to try to
restructure the company of that size, talking to the workforce, it
was helpful that I was nothing to do with the problem and I had not
actually been aware of it. We discovered it together. Talk me
through that moment you discovered things were quite so bad. What
happened? Escape! I had 20 years with British Airways and the parent
company. I was not used to being in an environment in that kind of
state. My first reaction was that this is going to be very difficult.
I was not the CEO at the time. I was number two. From a series of events
I was asked to take over. It was as much of an instinct decision as a
logical one. We have touched on some of the measures you had to take
which were not easy. We know what it is like when bosses try to reshape
airline companies. Unions are involved, strike action, problems
for the users of the airline, how did you go through that process in
such a way that the company came out like that? I think it was in such a
way that the owners had made it clear that they were not going to
continue owning it and no new owner would buy the company with the cost
base that it had. The lack of prospects and profitability. It was
about making that clear to the employees and the trade unions, and
the great thing about airlines is many of the implied he is our
professional. If you take pilots and engineers and cabin crew, they
understand if you explain it to them straightforward, they got the
message and be understood that the alternative was the company ceasing
to exist so they chose that. We spoke in the introduction about this
move away from what the company had been towards our low-cost model.
What was on that list when you said, these are the things that we've got
to cut. It was fairly straightforward to make the
decision. That is the future of European aviation. You can see it
with the growth of easyJet and Ryanair. The long haul operation
only had two Mac planes. It was not scalable. The charter operation was
dying. That business has been in decline for years. That was an easy
decision and it inspired a lot of other decisions behind it which
allowed us to build a new business plan. We are running out of time but
I want to ask you a question about being the boss of an airline, safety
is on the mind of everybody, tell us about that area of your job. I
understand in the industry there is incredible transparency and
collaboration between airlines. The aviation industry thrives on
openness and we have thorough investigations, and then the
industry gets safer. That happened after a previous incident and will
happen with the current threat. Aviation is very good at adapting,
so whether it is a port security or in the air, it will get safer. It
takes safety very seriously. That is one of the reasons why I love it
because it is a group of professionals. On that note we shall
end the interview. Thank you for coming in.
Diageo, the maker of Johhny Walker whisky and Smirnoff vodka says it
has increased its global sales, despite the slowdown in China.
Major bright spots include the high end market in Africa -
where premium brands saw sales surge 65 per cent.
Ivan Menezes is the chief executive of the drinks maker,
speaking a little earlier he gave us his take on.
China is not growing double-digit but it grew a very solid 4%. Africa
remains a good opportunity. We are used to volatility in emerging
markets, these underlying demographics and the trend towards
consumers and the middle-class drinking better, they are intact and
that bodes well for the company. We need to stay the course and handle
the volatility but I'm pleased that our emerging markets grew. We've got
some breaking news about the economy Minister of Japan, he has announced
his resignation at a press conference. A lot of attention on
Japan. The bank of Japan will be having a very important meeting at
the end of this week to decide on monetary policy. A lot of pressure
on the Japanese central bank to do more to stimulate the economy. That
has just occurred. That came as a surprise because they were hoping he
would go to New Zealand to sign a big trade deal. This relates to
Braves which he denies. Richard Jeffrey from
Cazenove Capital Management Talk with us about the other
stories. We are starting with tax. Google and apple have hit back.
Google settling with UK authorities and some said it was not as good as
it could have been, it is paying a lot more in Italy. This debate will
rumble on. I think it will. What we are beginning to see is some
international agreement that you cannot tackle these issues of big
corporations and where they pay their tax on a country by country
basis. It must be done amongst countries. There needs to be
agreement with America and the European Union in order to locate
where profits are made and insured they are taxed where they are made
rather than transferred to lower tax areas. It is quite a step forward. I
can imagine the likes of Margaret Hodge and others thinking we are
getting there. We are getting there, we are still quite a long way away
from where we want to be, but you've got to take the first steps, and
they are being taken. It is up to corporations to respond to this and
realise the environment is changing, people expect them to pay more
taxation. What we need now is a more transparent system so people can
quite clearly see where these companies are making profits and
where they are being taxed on these profits. Very nice to see you. Short
but sweet. That is all for now.