:00:00. > :00:07.This is Business Live from BBC News with Sally Bundock and Ben Thompson.
:00:08. > :00:10.As oil trades at near historic lows, its producers feel the pressure.
:00:11. > :00:13.Nigeria is now calling on the World Bank for a massive loan
:00:14. > :00:19.Live from London, that's our top story on Monday
:00:20. > :00:37.The collapsing oil price claims its latest victim,
:00:38. > :00:40.Nigeria is to borrow billions of dollars from the world bank
:00:41. > :00:48.Also in the programme: We'll be discussing the UK's renegotiation
:00:49. > :00:52.of its EU membership as Donald Tusk and David Cameron meet again today
:00:53. > :01:00.And markets are up, Japan traded sharply higher today as investors
:01:01. > :01:03.continued to cheer Friday's surprise move by the central bank
:01:04. > :01:10.But the latest data from China dragged down shares in Shanghai.
:01:11. > :01:15.We meet the London firm that says it can deliver you anything
:01:16. > :01:18.within an hour, but it's facing some tough competition.
:01:19. > :01:22.And we'll assess what the papers are discussing with our look
:01:23. > :01:27.And remember you can get in touch with us, just use the
:01:28. > :01:42.The tumbling oil price continues to ravage businesses
:01:43. > :01:52.and governments around the World- today it's the turn of Nigeria.
:01:53. > :01:57.to cover its growing budget deficit, a shortfall brought
:01:58. > :02:01.about by the collapse in crude prices.
:02:02. > :02:02.Oil is vital for the Nigerian economy.
:02:03. > :02:05.It accounts for around two-thirds of government revenue and nearly
:02:06. > :02:12.Brent is currently hovering around $35 per barrel and, despite a recent
:02:13. > :02:15.rally in oil prices, crude is still down 70%
:02:16. > :02:25.And that's prompted the Nigerian government to request $2.5 billion
:02:26. > :02:29.from the World Bank and a reported $1 billion from the
:02:30. > :02:41.Razia Khan, Head of African Economics at Standard Chartered,
:02:42. > :02:55.What more do we know about the terms and conditions and the loan itself
:02:56. > :03:00.being offered? I expect we will get more detail in time but we shouldn't
:03:01. > :03:04.be surprised by this. The Nigerian government that came to power last
:03:05. > :03:07.year has gone for a counter cyclical budget looking to increase spending
:03:08. > :03:14.and looking to ensure that a lot more of the budget is earmarked for
:03:15. > :03:16.development expenditure. Essentially, for infrastructure
:03:17. > :03:22.projects. This is seen as necessary at a time of weak growth because of
:03:23. > :03:27.the oil price shock. Nigeria has many options open in terms of the
:03:28. > :03:32.financing of that budget. It could go to international capital markets,
:03:33. > :03:37.issued another Euro bond. What we seem to be hearing from the Finance
:03:38. > :03:40.Ministry is that if there is more concessional financing available for
:03:41. > :03:44.this infrastructure projects, White not take advantage of cheaper
:03:45. > :03:48.financing rather than going to the markets at a time when everybody is
:03:49. > :03:54.very nervous about the oil price outlook and what that might mean for
:03:55. > :03:58.Nigeria. In terms of how this will work, what conditions are attached?
:03:59. > :04:03.We don't yet know about that. When we look at conditionality that would
:04:04. > :04:09.accompany an IMF programme, perhaps what needs to be in place is general
:04:10. > :04:13.would like approval of the overall economic policy in Nigeria. It is
:04:14. > :04:15.not clear there will be any hard conditionality, structural
:04:16. > :04:22.benchmarks or performance criteria are set. Nigeria, for now, and we
:04:23. > :04:26.ran through the numbers about how heavily dependent they are on oil
:04:27. > :04:31.revenue, what country next? In terms of the falling oil price, we know it
:04:32. > :04:37.is affecting all producers, but Nigeria more than most. Who's next?
:04:38. > :04:42.This is an interesting question. We have seen healthier oil prices, but
:04:43. > :04:46.also better access to international capital markets for a range of
:04:47. > :04:50.African sovereigns. Whether or not they were when producers. Often we
:04:51. > :04:54.were finding a preference for issuing externally because it was
:04:55. > :04:57.relatively cheap when it wasn't really the case that countries had
:04:58. > :05:02.made full use of the concessional financing available to them. I think
:05:03. > :05:06.there is still? Around this. How much should we be seeing it as
:05:07. > :05:09.Nigeria looking to borrow from the World Bank and the African
:05:10. > :05:13.development bank because of the current level of one prices which
:05:14. > :05:15.work how much are they thinking through their longer term choices
:05:16. > :05:19.for financing infrastructure spending? One we will watch closely.
:05:20. > :05:23.Thank you. The European Council president
:05:24. > :05:25.Donald Tusk exited last night's talks with British Prime
:05:26. > :05:27.Minister David Cameron, saying there was no deal yet over
:05:28. > :05:32.the UK's relationship with the EU. The UK's Prime Minister seeks
:05:33. > :05:34.to restrict welfare payments for EU migrants and prevent Britain
:05:35. > :05:37.from being drawn into further Mr Cameron is aiming to strike
:05:38. > :05:44.a deal to be put before EU leaders ahead of a summit in just
:05:45. > :05:48.over two weeks. Manufacturing in China
:05:49. > :05:50.slowed again in January, hitting the weakest level
:05:51. > :05:54.in more than three years. The economy is already growing
:05:55. > :05:57.at the slowest rate in a quarter of a century and one trillion
:05:58. > :06:00.dollars has flown out of its stock The UK's biggest bank, HSBC,
:06:01. > :06:06.is to impose a global freeze on pay Details sent to staff yesterday
:06:07. > :06:10.outline the measures as part In June, HSBC told investors it
:06:11. > :06:15.would slash $5 billion Barclays is to be fined 70-million
:06:16. > :06:24.dollars for misleading investors about its so-called 'dark
:06:25. > :06:28.pool' trading operations. Dark pools allow investors to trade
:06:29. > :06:30.shares - while keeping A settlement with Credit Suisse -
:06:31. > :06:36.which is expected to pay 84-million dollars - is also
:06:37. > :06:51.expected later today. Let's take you to the business live
:06:52. > :06:54.page. And stories we can fit in but rose Royce are winning a new order
:06:55. > :06:59.from Norwegian airlines would streamline engines. There is a lot
:07:00. > :07:05.of rivalry between point and Airbus but it seems they have plumped for a
:07:06. > :07:10.point with their true minor for $1.9 billion worth. That is 19. The
:07:11. > :07:13.lucrative part of this is the long-term maintenance contract. We
:07:14. > :07:18.will talk about energy because we were talking about the cost of oil.
:07:19. > :07:25.When it comes to our homes, the cost of energy delivery is going up. All
:07:26. > :07:29.and gas prices are falling. But before that as filter through to our
:07:30. > :07:32.bills, we hope. Not quite. Refund of one energy firms says the cost of
:07:33. > :07:37.delivery is rising. That is getting it to our homes and that is keeping
:07:38. > :07:41.the price higher. Not least on top of the extra things like tax and
:07:42. > :07:47.other costs that go into making up your bill. Toyota making headlines
:07:48. > :07:51.for all the wrong reasons. It is hard to stop car production in Japan
:07:52. > :07:56.because they are running out of parts. Let's go to Singapore. This
:07:57. > :08:03.sounds astonishing that a car-maker as big as Toyota pass to stop
:08:04. > :08:07.production. Tell us more. It is a supply chain problem. They have run
:08:08. > :08:13.out of parts. Due to a shortage of steel used in making things like
:08:14. > :08:15.engines and transmissions. They are stopping production starting from
:08:16. > :08:18.the bridge it, which is conveniently the Chinese New Year. It will run
:08:19. > :08:28.until the 15th. That is not a huge amount of time
:08:29. > :08:32.but it will stop production. The producer was badly damaged in an
:08:33. > :08:35.explosion in January so Toda have said they were looking for
:08:36. > :08:38.alternative options, including sourcing parts and components from
:08:39. > :08:44.other steelmakers. They really give no specifics as to how the car is
:08:45. > :08:49.produced in Japan will be affected. What we know is that overseas
:08:50. > :08:54.factories will not be affected. We do know that Toyota produced about 4
:08:55. > :08:58.million cars in Japan last year and that nearly half of those were
:08:59. > :09:03.exported. If someone ordered the latest hybrid and they are codified
:09:04. > :09:09.it will not notify -- not arrive on time, we know why. Investors aren't
:09:10. > :09:17.too concerned because shares rose 2% along with the -- broader market.
:09:18. > :09:22.Japan had a good session. True to jurors are higher. Most stocks are
:09:23. > :09:28.because the Japanese yen is cheaper because of the cut in interest
:09:29. > :09:32.rates. But boosted trade there. Hong Kong and Shanghai had a tough
:09:33. > :09:35.session following news about factory data out of a January showing
:09:36. > :09:40.contraction begin. That was because of Wall Street. But look at Europe.
:09:41. > :09:45.To get a sense of how the new week is shaping up, we are all in the red
:09:46. > :09:48.at the moment. But of companies coming up with earnings. We will
:09:49. > :09:50.talk more about that. Let's look ahead to what will happen on Wall
:09:51. > :10:00.Street. This is a big week for earning
:10:01. > :10:03.reports and data. The parent company of Google report their
:10:04. > :10:09.fourth-quarter results for the first time. The company said the numbers
:10:10. > :10:15.will be broken into two categories. Google and what it calls other
:10:16. > :10:19.things, such as calico and nest. After Facebook reported strong
:10:20. > :10:25.mobile Avenue -- advertising revenue, and this will look to see
:10:26. > :10:28.how Google is doing. The maker of Barbie dolls report the latest
:10:29. > :10:30.earnings after it straight quarters of falling sales, investors are
:10:31. > :10:37.looking for a strong holiday quarter. While the big economic news
:10:38. > :10:40.this week is the jobs report, this Monday sees report on the
:10:41. > :10:42.manufacturing sector and on consumer spending.
:10:43. > :10:44.Joining us is James Hughes, Chief Market Analyst,
:10:45. > :10:57.Nice to see you. But just touch on China. Another slowdown in growth.
:10:58. > :11:03.How worried should we be? The workshop of the word slowing down,
:11:04. > :11:06.we knew that already. I don't think we should be more worried about the
:11:07. > :11:10.latest figures but we should be worried about the overall slowdown,
:11:11. > :11:15.to be honest. That is being shown in these markets up until now. The fact
:11:16. > :11:19.that these numbers are still falling and they are likely to continue
:11:20. > :11:23.falling. It is not just manufacturing, it is imports and
:11:24. > :11:26.exports, GDP. Everywhere you look, there is a problem in China. We have
:11:27. > :11:37.to be ready for this word China. Markets seem to go yes when
:11:38. > :11:46.they bank of Japan cut interest rates. Are we feeling the effects?
:11:47. > :11:50.Most definitely. We saw a hellish start to the year and then all of a
:11:51. > :11:55.sudden the bank of Japan, and it was out of the blue, we didn't expect
:11:56. > :11:58.it, we get it and it wipes out a lot of the negativity we have had so we
:11:59. > :12:05.are starting from scratch again which is a good thing for the
:12:06. > :12:06.markets. Let's talk -- touch on Ryanair. They raised their profit
:12:07. > :12:13.guidance in September and it been cut back as a result of those
:12:14. > :12:16.terror threats in Paris and tough competition in the market. Where are
:12:17. > :12:19.we with Ryanair in terms of what the market expects? Expectations are
:12:20. > :12:23.going little bit in terms of what are singing airlines and it has been
:12:24. > :12:33.a struggle and industry for a fact they are now saying they are
:12:34. > :12:37.likely to get end of year profit figures is really a good sign when
:12:38. > :12:46.there With Ryanair are doing so, talking
:12:47. > :12:55.about terror threats and lower prices
:12:56. > :12:58.positivity there. For quite a while, there has not been. Especially...
:12:59. > :13:03.Ryanair has thrown off the cheap and nasty image and now it is... It is
:13:04. > :13:09.no experience as well. You have to
:13:10. > :13:13.remember Ryanair is fighting a big reputation of situation. Good stuff.
:13:14. > :13:15.Thank you Still to come, delivered
:13:16. > :13:18.to your door at the touch It was once the stuff of science
:13:19. > :13:24.fiction, but these days you can get We meet one firm that says it can
:13:25. > :13:27.do it within the hour, You're with Business
:13:28. > :13:39.Live from BBC News. Budget airline Ryanair has
:13:40. > :13:42.reported its third quarter results this morning and says its on track
:13:43. > :13:45.to meet its full-year profit Higher passenger numbers helped
:13:46. > :13:48.to make up for lower fares and the airline says it will return
:13:49. > :13:51.?600 million to shareholders The Chief Financial Officer
:13:52. > :14:08.of Ryanair is Neil Sorahan, Thank you for being on the
:14:09. > :14:14.programme. Strong set of numbers yet again. You have highlighted some
:14:15. > :14:18.issues that hit you after September last year like all airlines.
:14:19. > :14:23.Sentiment was against you following what happened in Paris at the end of
:14:24. > :14:31.last year. Also, the lower price of oil helping you. There are strong
:14:32. > :14:35.set of numbers. Our profit was up 110% to 103 million. The first half
:14:36. > :14:39.of the quarter was strong but after the Paris and Brussels events on
:14:40. > :14:44.November 13, the sort softness in the market which we reacted to with
:14:45. > :14:49.price promotions and discounting. The outcome was that we saw our
:14:50. > :14:54.passenger numbers increase by 20% to 25 million and our load factor was
:14:55. > :15:03.up five percentage points to 23%. Cost performance in the quarter was
:15:04. > :15:06.excellent and we came in with 103 million when our average was down 1%
:15:07. > :15:09.to 40 euros. A good performance in the quarter. Talk us through the
:15:10. > :15:13.weight the higher passenger numbers helped to offset lower fares because
:15:14. > :15:16.he faced tough competition in the market and clearly you need to cut
:15:17. > :15:17.fares to keep passengers on board but you are managing to keep in line
:15:18. > :15:27.with that guidance. Is We have got the lowest costs of
:15:28. > :15:32.any airline out there. Our costs per passenger excluding fuel was 29 euro
:15:33. > :15:38.last year. The next nearest to us would be 35% higher and easyJet
:15:39. > :15:44.would be 80% higher on their cost per passenger. That's something that
:15:45. > :15:51.Ryanair is well able to do. As we move into the next quarter, Q 4,
:15:52. > :15:59.March 2016, we're guiding that our fares will be down on average 6%,
:16:00. > :16:03.however we have got lower costs. Our fares will be down about 2% which
:16:04. > :16:07.means we will be profitable again. We're out of time. The chief
:16:08. > :16:12.financial of Ryanair, we appreciate your time. That's the latest from
:16:13. > :16:17.that budget carrier. More on the tablet.
:16:18. > :16:22.Our top story, Nigeria has asked the World Bank for an emergency loan
:16:23. > :16:23.to cover the country's growing budget deficit.
:16:24. > :16:29.The Nigerian economy has been hit hard by the collapse in oil prices
:16:30. > :16:36.and the World Bank says it's been asked for $2.5 billion,
:16:37. > :16:38.with a further $1 billion reportedly sought from
:16:39. > :16:43.Imagine ordering something online and getting it delivered
:16:44. > :16:47.That's what one central London firm is promising to its customers.
:16:48. > :16:54.Quiqup has 500 drivers who say they can deliver almost anything,
:16:55. > :16:56.from picking up your favourite hamburger to bringing you keys
:16:57. > :17:01.Using a mobile app, it aims to deliver your order within an hour
:17:02. > :17:03.but only within central London at the moment.
:17:04. > :17:11.Since it started in 2014, Quiqup says it's made more
:17:12. > :17:16.With me is Bassel El Koussa, co-founder and Chief Executive of
:17:17. > :17:28.You said it is now 200,000? Actually more than that. We need to keep
:17:29. > :17:34.things confidential in this industry. 200,000 deliveries since
:17:35. > :17:40.2014. Talk us through this. There is a lot of competition in that market.
:17:41. > :17:43.You're offering more than them because it is not just about food,
:17:44. > :17:47.this is about everything and as we said, it could be the keys you left
:17:48. > :17:53.in the office, a bunch of flowers or the food you want, a takeaway. This
:17:54. > :17:57.is becoming a very competitive space because there is a lot of demand for
:17:58. > :18:03.faster lifestyle for people to get that kind of convenience. What we
:18:04. > :18:09.look to do differently is to kind of bring power to the retailers and
:18:10. > :18:15.give you the ability to pretty much get anything you want. Anything that
:18:16. > :18:19.you could usually find on an E commerce website, you can source
:18:20. > :18:26.within 14 kilometre radius from where you stand in the metropolitan
:18:27. > :18:32.area. We look to flip the E commerce model on its head and we end up
:18:33. > :18:37.giving local businesses the ability to compete and stay relevant in the
:18:38. > :18:42.growing E commerce space. We are giving them legs, the ability to be
:18:43. > :18:47.online and reach customers. Is that the bit with smaller retailers are
:18:48. > :18:50.lacking, they can't take on the big retrailers and it is a labour
:18:51. > :18:54.intensive process if you're promising to get stuff to people
:18:55. > :18:57.within an hour, you need a lot of drivers in a lot of places to meet
:18:58. > :19:03.the deadline. That must cost you money though? 100%, but the thing is
:19:04. > :19:06.the difference between us carrying that and the retailers themselves
:19:07. > :19:10.carrying that is that we end up being able to benefit from different
:19:11. > :19:15.patterns of demand throughout the day because people buy things at
:19:16. > :19:18.different times of the day and there are different behaviours that
:19:19. > :19:21.aggregate into us creating a level of efficiency with our business.
:19:22. > :19:25.Imagine people order lunch at certain times and dinner at certain
:19:26. > :19:30.times, but they order groceries at certain times and we can keep our
:19:31. > :19:35.drivers busy. That's how the model becomes profitable. It is all about
:19:36. > :19:42.that operational efficiency that we can create. How expensive is it? I
:19:43. > :19:49.have left my keys here and it causes havoc. If I was to order a Quiqup to
:19:50. > :19:52.pick them up and bring them to my house. Generally speaking, is it
:19:53. > :19:59.something that's do-able for most people? OK, so there are two sides
:20:00. > :20:03.of the service. There is the pure convenience side where you want to
:20:04. > :20:07.just get get something from wherever you want and it is not from a
:20:08. > :20:12.retailer that we have a relationship with and so, then you would carry
:20:13. > :20:17.the cost of that delivery. Whereas, it would average ?5 for you to do
:20:18. > :20:22.something like that. If we have a partnership with a specific retailer
:20:23. > :20:30.or restaurant, it would be as low as ?1.50. We are running out of time.
:20:31. > :20:35.But I want to mention the Quiqup dog. Something we're finding with a
:20:36. > :20:41.lot of our entrepreneurs, who come in, there is a dog that's with the
:20:42. > :20:47.company, but also how cute is your dog. Quickly, you're from Lebanon
:20:48. > :20:51.and you ran a business there and a lot of what you learned there, or
:20:52. > :20:56.put into practise there, is what you're finding is really helpful in
:20:57. > :20:59.London? Life is about experiences and you learn things along the way.
:21:00. > :21:05.I didn't run a business in Lebanon, I was part of a family business. I
:21:06. > :21:09.grew up in an entrepreneurial household and it helped a lot. It is
:21:10. > :21:11.a place you need to be very versatile and so a lot of the things
:21:12. > :21:16.I learned in that experience, I brought with me here.
:21:17. > :21:17.Really nice to see you. Time is tight, but really nice to see you.
:21:18. > :21:20.Thank you so much. In a moment, we'll but getting more
:21:21. > :21:23.on the UK's EU membership negotiations but first here's
:21:24. > :21:26.a quick look at some of the papers. The Telegraph reports that
:21:27. > :21:28.Saudi Arabia faces years of austerity as the low oil
:21:29. > :21:31.price forces the kingdom In other oil related news,
:21:32. > :21:41.the Washington Post says that
:21:42. > :21:42.Venezuela is on the brink with an inflation rate
:21:43. > :21:46.running at a massive 720%. The Guardian focuses on that
:21:47. > :21:48.EU UK renegotiation. The paper claims that
:21:49. > :21:50.David Cameron's hopes of early EU referendum have receded
:21:51. > :21:53.as his attempt to broker a deal David Cameron and European Council
:21:54. > :21:59.President Donald Tusk are set for a "crucial" day of talks
:22:00. > :22:02.about the UK's renegotiated A meeting last night
:22:03. > :22:10.ended without a deal, though a Downing Street sources say
:22:11. > :22:12.there had been a "breakthrough" on restricting benefits
:22:13. > :22:14.for EU migrants. Robert Oulds, director
:22:15. > :22:15.of The Bruges Group, A little earlier he gave us his
:22:16. > :22:26.thoughts on today's negotiations. Well, I think we will get more
:22:27. > :22:29.political theatre. We will get the position of David Cameron trying to
:22:30. > :22:32.argue that he is trying to force a real change in Britain's terms of
:22:33. > :22:36.and under resistance from other EU and under resistance from other EU
:22:37. > :22:41.leaders in advance of a deal at the European Council meeting later in
:22:42. > :22:47.February. They would only be minor changes and the issue of migrants
:22:48. > :22:51.access to benefits is a side issue. It is not the burning issue in
:22:52. > :22:56.British politics that we need to get resolved. Whilst you are in the
:22:57. > :22:59.European Union, there is still supremacy of EU law over national
:23:00. > :23:03.laws and there are still costs, David Cameron isn't getting to a
:23:04. > :23:07.grip of those major issues and the issue of migrants access to benefits
:23:08. > :23:11.is something that's been invented by David Cameron so he can project
:23:12. > :23:18.himself as a Euro-sceptic, but it doesn't mean that Britain would stop
:23:19. > :23:21.paying billions to the EU each year. That the supremacy of EU law. So
:23:22. > :23:33.really, we need substantial window-dressing.
:23:34. > :23:38.That's one view there. Peter Wilding joins us now. Peter,
:23:39. > :23:44.welcome to Business Live. In or out, what is your view on the UK's
:23:45. > :23:49.continued membership. Where should we lob k looking? We should be a
:23:50. > :23:53.leading nation within Europe and by being a leading nation within
:23:54. > :23:57.Europe, we will continue to be a leading nation within the globe.
:23:58. > :24:01.Europe is a leaver of power we have. We want a reformed European Union.
:24:02. > :24:06.We have a great number of allies who want the same. I believe you will
:24:07. > :24:11.see that deal done on 19th February. If we don't get reforms or changes
:24:12. > :24:16.that many are arguing that they want including the likes of the
:24:17. > :24:20.Confederation of British Industry, are you still for us remaining in?
:24:21. > :24:24.Well, there are four reforms the Prime Minister wants. He wants the
:24:25. > :24:27.completion of the single market, more competitiveness, less red tape,
:24:28. > :24:32.more power for national parliaments, an end to ever closer union and the
:24:33. > :24:35.final migration issue. He has got deals on all of those. The only
:24:36. > :24:39.thing we're waiting for right now is the breakthrough that you just
:24:40. > :24:46.mentioned a second ago. It seems to me that Number Ten and Donald Tusk
:24:47. > :24:49.have got agreement, the 24 hours of negotiation are really about ironing
:24:50. > :24:54.out the details. But the detail will be the bit that determines whether
:24:55. > :24:57.we remain within Europe because the detail is what everybody needs to
:24:58. > :25:00.know, that's what the detail that will affect our day-to-day lives. It
:25:01. > :25:03.is all well and good having the headline agreement, but until the
:25:04. > :25:06.detail filters through to the red tape on business, on the benefits
:25:07. > :25:10.from migrants coming to the UK, those are the details that people
:25:11. > :25:14.will get so concerned about? Well, yeah. The Prime Minister has made
:25:15. > :25:18.his case clear. If he gets what he has demanded then he has succeeded
:25:19. > :25:20.and it will be presented to the country, but we must remember here
:25:21. > :25:25.and businesses watching our programme will be be guiled by the
:25:26. > :25:31.fact that we are talking about these microissues. Britain's membership of
:25:32. > :25:35.the European Union is about much more than indeed the microdetails,
:25:36. > :25:38.it is about Britain playing its part in the world, opening up markets,
:25:39. > :25:45.creating jobs and making sure there are more profits. I would hate it if
:25:46. > :25:49.this debate just simply came down to fear and economics when it is really
:25:50. > :25:53.about the power of Britain in the modern world and I think that's
:25:54. > :25:56.really what this is all about. . Peter, thank you very much.
:25:57. > :26:12.We will see you soon. Hello there. The start of February
:26:13. > :26:16.and we've got the eighth named storm hurtling in off the Atlantic. The
:26:17. > :26:18.centre of Storm Henry will pass between Iceland and the United
:26:19. > :26:19.Kingdom, but