01/02/2016 BBC Business Live


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This is Business Live from BBC News with Sally Bundock and Ben Thompson.


As oil trades at near historic lows, its producers feel the pressure.


Nigeria is now calling on the World Bank for a massive loan


Live from London, that's our top story on Monday


The collapsing oil price claims its latest victim,


Nigeria is to borrow billions of dollars from the world bank


Also in the programme: We'll be discussing the UK's renegotiation


of its EU membership as Donald Tusk and David Cameron meet again today


And markets are up, Japan traded sharply higher today as investors


continued to cheer Friday's surprise move by the central bank


But the latest data from China dragged down shares in Shanghai.


We meet the London firm that says it can deliver you anything


within an hour, but it's facing some tough competition.


And we'll assess what the papers are discussing with our look


And remember you can get in touch with us, just use the


The tumbling oil price continues to ravage businesses


and governments around the World- today it's the turn of Nigeria.


to cover its growing budget deficit, a shortfall brought


about by the collapse in crude prices.


Oil is vital for the Nigerian economy.


It accounts for around two-thirds of government revenue and nearly


Brent is currently hovering around $35 per barrel and, despite a recent


rally in oil prices, crude is still down 70%


And that's prompted the Nigerian government to request $2.5 billion


from the World Bank and a reported $1 billion from the


Razia Khan, Head of African Economics at Standard Chartered,


What more do we know about the terms and conditions and the loan itself


being offered? I expect we will get more detail in time but we shouldn't


be surprised by this. The Nigerian government that came to power last


year has gone for a counter cyclical budget looking to increase spending


and looking to ensure that a lot more of the budget is earmarked for


development expenditure. Essentially, for infrastructure


projects. This is seen as necessary at a time of weak growth because of


the oil price shock. Nigeria has many options open in terms of the


financing of that budget. It could go to international capital markets,


issued another Euro bond. What we seem to be hearing from the Finance


Ministry is that if there is more concessional financing available for


this infrastructure projects, White not take advantage of cheaper


financing rather than going to the markets at a time when everybody is


very nervous about the oil price outlook and what that might mean for


Nigeria. In terms of how this will work, what conditions are attached?


We don't yet know about that. When we look at conditionality that would


accompany an IMF programme, perhaps what needs to be in place is general


would like approval of the overall economic policy in Nigeria. It is


not clear there will be any hard conditionality, structural


benchmarks or performance criteria are set. Nigeria, for now, and we


ran through the numbers about how heavily dependent they are on oil


revenue, what country next? In terms of the falling oil price, we know it


is affecting all producers, but Nigeria more than most. Who's next?


This is an interesting question. We have seen healthier oil prices, but


also better access to international capital markets for a range of


African sovereigns. Whether or not they were when producers. Often we


were finding a preference for issuing externally because it was


relatively cheap when it wasn't really the case that countries had


made full use of the concessional financing available to them. I think


there is still? Around this. How much should we be seeing it as


Nigeria looking to borrow from the World Bank and the African


development bank because of the current level of one prices which


work how much are they thinking through their longer term choices


for financing infrastructure spending? One we will watch closely.


Thank you. The European Council president


Donald Tusk exited last night's talks with British Prime


Minister David Cameron, saying there was no deal yet over


the UK's relationship with the EU. The UK's Prime Minister seeks


to restrict welfare payments for EU migrants and prevent Britain


from being drawn into further Mr Cameron is aiming to strike


a deal to be put before EU leaders ahead of a summit in just


over two weeks. Manufacturing in China


slowed again in January, hitting the weakest level


in more than three years. The economy is already growing


at the slowest rate in a quarter of a century and one trillion


dollars has flown out of its stock The UK's biggest bank, HSBC,


is to impose a global freeze on pay Details sent to staff yesterday


outline the measures as part In June, HSBC told investors it


would slash $5 billion Barclays is to be fined 70-million


dollars for misleading investors about its so-called 'dark


pool' trading operations. Dark pools allow investors to trade


shares - while keeping A settlement with Credit Suisse -


which is expected to pay 84-million dollars - is also


expected later today. Let's take you to the business live


page. And stories we can fit in but rose Royce are winning a new order


from Norwegian airlines would streamline engines. There is a lot


of rivalry between point and Airbus but it seems they have plumped for a


point with their true minor for $1.9 billion worth. That is 19. The


lucrative part of this is the long-term maintenance contract. We


will talk about energy because we were talking about the cost of oil.


When it comes to our homes, the cost of energy delivery is going up. All


and gas prices are falling. But before that as filter through to our


bills, we hope. Not quite. Refund of one energy firms says the cost of


delivery is rising. That is getting it to our homes and that is keeping


the price higher. Not least on top of the extra things like tax and


other costs that go into making up your bill. Toyota making headlines


for all the wrong reasons. It is hard to stop car production in Japan


because they are running out of parts. Let's go to Singapore. This


sounds astonishing that a car-maker as big as Toyota pass to stop


production. Tell us more. It is a supply chain problem. They have run


out of parts. Due to a shortage of steel used in making things like


engines and transmissions. They are stopping production starting from


the bridge it, which is conveniently the Chinese New Year. It will run


until the 15th. That is not a huge amount of time


but it will stop production. The producer was badly damaged in an


explosion in January so Toda have said they were looking for


alternative options, including sourcing parts and components from


other steelmakers. They really give no specifics as to how the car is


produced in Japan will be affected. What we know is that overseas


factories will not be affected. We do know that Toyota produced about 4


million cars in Japan last year and that nearly half of those were


exported. If someone ordered the latest hybrid and they are codified


it will not notify -- not arrive on time, we know why. Investors aren't


too concerned because shares rose 2% along with the -- broader market.


Japan had a good session. True to jurors are higher. Most stocks are


because the Japanese yen is cheaper because of the cut in interest


rates. But boosted trade there. Hong Kong and Shanghai had a tough


session following news about factory data out of a January showing


contraction begin. That was because of Wall Street. But look at Europe.


To get a sense of how the new week is shaping up, we are all in the red


at the moment. But of companies coming up with earnings. We will


talk more about that. Let's look ahead to what will happen on Wall


Street. This is a big week for earning


reports and data. The parent company of Google report their


fourth-quarter results for the first time. The company said the numbers


will be broken into two categories. Google and what it calls other


things, such as calico and nest. After Facebook reported strong


mobile Avenue -- advertising revenue, and this will look to see


how Google is doing. The maker of Barbie dolls report the latest


earnings after it straight quarters of falling sales, investors are


looking for a strong holiday quarter. While the big economic news


this week is the jobs report, this Monday sees report on the


manufacturing sector and on consumer spending.


Joining us is James Hughes, Chief Market Analyst,


Nice to see you. But just touch on China. Another slowdown in growth.


How worried should we be? The workshop of the word slowing down,


we knew that already. I don't think we should be more worried about the


latest figures but we should be worried about the overall slowdown,


to be honest. That is being shown in these markets up until now. The fact


that these numbers are still falling and they are likely to continue


falling. It is not just manufacturing, it is imports and


exports, GDP. Everywhere you look, there is a problem in China. We have


to be ready for this word China. Markets seem to go yes when


they bank of Japan cut interest rates. Are we feeling the effects?


Most definitely. We saw a hellish start to the year and then all of a


sudden the bank of Japan, and it was out of the blue, we didn't expect


it, we get it and it wipes out a lot of the negativity we have had so we


are starting from scratch again which is a good thing for the


markets. Let's talk -- touch on Ryanair. They raised their profit


guidance in September and it been cut back as a result of those


terror threats in Paris and tough competition in the market. Where are


we with Ryanair in terms of what the market expects? Expectations are


going little bit in terms of what are singing airlines and it has been


a struggle and industry for a fact they are now saying they are


likely to get end of year profit figures is really a good sign when


there With Ryanair are doing so, talking


about terror threats and lower prices


positivity there. For quite a while, there has not been. Especially...


Ryanair has thrown off the cheap and nasty image and now it is... It is


no experience as well. You have to


remember Ryanair is fighting a big reputation of situation. Good stuff.


Thank you Still to come, delivered


to your door at the touch It was once the stuff of science


fiction, but these days you can get We meet one firm that says it can


do it within the hour, You're with Business


Live from BBC News. Budget airline Ryanair has


reported its third quarter results this morning and says its on track


to meet its full-year profit Higher passenger numbers helped


to make up for lower fares and the airline says it will return


?600 million to shareholders The Chief Financial Officer


of Ryanair is Neil Sorahan, Thank you for being on the


programme. Strong set of numbers yet again. You have highlighted some


issues that hit you after September last year like all airlines.


Sentiment was against you following what happened in Paris at the end of


last year. Also, the lower price of oil helping you. There are strong


set of numbers. Our profit was up 110% to 103 million. The first half


of the quarter was strong but after the Paris and Brussels events on


November 13, the sort softness in the market which we reacted to with


price promotions and discounting. The outcome was that we saw our


passenger numbers increase by 20% to 25 million and our load factor was


up five percentage points to 23%. Cost performance in the quarter was


excellent and we came in with 103 million when our average was down 1%


to 40 euros. A good performance in the quarter. Talk us through the


weight the higher passenger numbers helped to offset lower fares because


he faced tough competition in the market and clearly you need to cut


fares to keep passengers on board but you are managing to keep in line


with that guidance. Is We have got the lowest costs of


any airline out there. Our costs per passenger excluding fuel was 29 euro


last year. The next nearest to us would be 35% higher and easyJet


would be 80% higher on their cost per passenger. That's something that


Ryanair is well able to do. As we move into the next quarter, Q 4,


March 2016, we're guiding that our fares will be down on average 6%,


however we have got lower costs. Our fares will be down about 2% which


means we will be profitable again. We're out of time. The chief


financial of Ryanair, we appreciate your time. That's the latest from


that budget carrier. More on the tablet.


Our top story, Nigeria has asked the World Bank for an emergency loan


to cover the country's growing budget deficit.


The Nigerian economy has been hit hard by the collapse in oil prices


and the World Bank says it's been asked for $2.5 billion,


with a further $1 billion reportedly sought from


Imagine ordering something online and getting it delivered


That's what one central London firm is promising to its customers.


Quiqup has 500 drivers who say they can deliver almost anything,


from picking up your favourite hamburger to bringing you keys


Using a mobile app, it aims to deliver your order within an hour


but only within central London at the moment.


Since it started in 2014, Quiqup says it's made more


With me is Bassel El Koussa, co-founder and Chief Executive of


You said it is now 200,000? Actually more than that. We need to keep


things confidential in this industry. 200,000 deliveries since


2014. Talk us through this. There is a lot of competition in that market.


You're offering more than them because it is not just about food,


this is about everything and as we said, it could be the keys you left


in the office, a bunch of flowers or the food you want, a takeaway. This


is becoming a very competitive space because there is a lot of demand for


faster lifestyle for people to get that kind of convenience. What we


look to do differently is to kind of bring power to the retailers and


give you the ability to pretty much get anything you want. Anything that


you could usually find on an E commerce website, you can source


within 14 kilometre radius from where you stand in the metropolitan


area. We look to flip the E commerce model on its head and we end up


giving local businesses the ability to compete and stay relevant in the


growing E commerce space. We are giving them legs, the ability to be


online and reach customers. Is that the bit with smaller retailers are


lacking, they can't take on the big retrailers and it is a labour


intensive process if you're promising to get stuff to people


within an hour, you need a lot of drivers in a lot of places to meet


the deadline. That must cost you money though? 100%, but the thing is


the difference between us carrying that and the retailers themselves


carrying that is that we end up being able to benefit from different


patterns of demand throughout the day because people buy things at


different times of the day and there are different behaviours that


aggregate into us creating a level of efficiency with our business.


Imagine people order lunch at certain times and dinner at certain


times, but they order groceries at certain times and we can keep our


drivers busy. That's how the model becomes profitable. It is all about


that operational efficiency that we can create. How expensive is it? I


have left my keys here and it causes havoc. If I was to order a Quiqup to


pick them up and bring them to my house. Generally speaking, is it


something that's do-able for most people? OK, so there are two sides


of the service. There is the pure convenience side where you want to


just get get something from wherever you want and it is not from a


retailer that we have a relationship with and so, then you would carry


the cost of that delivery. Whereas, it would average ?5 for you to do


something like that. If we have a partnership with a specific retailer


or restaurant, it would be as low as ?1.50. We are running out of time.


But I want to mention the Quiqup dog. Something we're finding with a


lot of our entrepreneurs, who come in, there is a dog that's with the


company, but also how cute is your dog. Quickly, you're from Lebanon


and you ran a business there and a lot of what you learned there, or


put into practise there, is what you're finding is really helpful in


London? Life is about experiences and you learn things along the way.


I didn't run a business in Lebanon, I was part of a family business. I


grew up in an entrepreneurial household and it helped a lot. It is


a place you need to be very versatile and so a lot of the things


I learned in that experience, I brought with me here.


Really nice to see you. Time is tight, but really nice to see you.


Thank you so much. In a moment, we'll but getting more


on the UK's EU membership negotiations but first here's


a quick look at some of the papers. The Telegraph reports that


Saudi Arabia faces years of austerity as the low oil


price forces the kingdom In other oil related news,


the Washington Post says that


Venezuela is on the brink with an inflation rate


running at a massive 720%. The Guardian focuses on that


EU UK renegotiation. The paper claims that


David Cameron's hopes of early EU referendum have receded


as his attempt to broker a deal David Cameron and European Council


President Donald Tusk are set for a "crucial" day of talks


about the UK's renegotiated A meeting last night


ended without a deal, though a Downing Street sources say


there had been a "breakthrough" on restricting benefits


for EU migrants. Robert Oulds, director


of The Bruges Group, A little earlier he gave us his


thoughts on today's negotiations. Well, I think we will get more


political theatre. We will get the position of David Cameron trying to


argue that he is trying to force a real change in Britain's terms of


and under resistance from other EU and under resistance from other EU


leaders in advance of a deal at the European Council meeting later in


February. They would only be minor changes and the issue of migrants


access to benefits is a side issue. It is not the burning issue in


British politics that we need to get resolved. Whilst you are in the


European Union, there is still supremacy of EU law over national


laws and there are still costs, David Cameron isn't getting to a


grip of those major issues and the issue of migrants access to benefits


is something that's been invented by David Cameron so he can project


himself as a Euro-sceptic, but it doesn't mean that Britain would stop


paying billions to the EU each year. That the supremacy of EU law. So


really, we need substantial window-dressing.


That's one view there. Peter Wilding joins us now. Peter,


welcome to Business Live. In or out, what is your view on the UK's


continued membership. Where should we lob k looking? We should be a


leading nation within Europe and by being a leading nation within


Europe, we will continue to be a leading nation within the globe.


Europe is a leaver of power we have. We want a reformed European Union.


We have a great number of allies who want the same. I believe you will


see that deal done on 19th February. If we don't get reforms or changes


that many are arguing that they want including the likes of the


Confederation of British Industry, are you still for us remaining in?


Well, there are four reforms the Prime Minister wants. He wants the


completion of the single market, more competitiveness, less red tape,


more power for national parliaments, an end to ever closer union and the


final migration issue. He has got deals on all of those. The only


thing we're waiting for right now is the breakthrough that you just


mentioned a second ago. It seems to me that Number Ten and Donald Tusk


have got agreement, the 24 hours of negotiation are really about ironing


out the details. But the detail will be the bit that determines whether


we remain within Europe because the detail is what everybody needs to


know, that's what the detail that will affect our day-to-day lives. It


is all well and good having the headline agreement, but until the


detail filters through to the red tape on business, on the benefits


from migrants coming to the UK, those are the details that people


will get so concerned about? Well, yeah. The Prime Minister has made


his case clear. If he gets what he has demanded then he has succeeded


and it will be presented to the country, but we must remember here


and businesses watching our programme will be be guiled by the


fact that we are talking about these microissues. Britain's membership of


the European Union is about much more than indeed the microdetails,


it is about Britain playing its part in the world, opening up markets,


creating jobs and making sure there are more profits. I would hate it if


this debate just simply came down to fear and economics when it is really


about the power of Britain in the modern world and I think that's


really what this is all about. . Peter, thank you very much.


We will see you soon. Hello there. The start of February


and we've got the eighth named storm hurtling in off the Atlantic. The


centre of Storm Henry will pass between Iceland and the United


Kingdom, but


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