:00:00. > :00:11.This is Business Live from the BBC with Ben Thompson and Sally Bundock.
:00:12. > :00:13.BP's boss faces backlash over his giant pay package -
:00:14. > :00:17.in the same year the company made record losses.
:00:18. > :00:37.Live from London, that's our top story on Thursday 14th April.
:00:38. > :00:40.Why is BP boss Bob Dudley getting a 20% pay rise when the company
:00:41. > :00:44.Shareholders are demanding answers at the company's AGM in London.
:00:45. > :00:52.Nestle sales get a boost, as the popular noodles return
:00:53. > :00:56.to shelves in India, after last year's health scare
:00:57. > :01:02.And where oil goes, equity markets follow.
:01:03. > :01:04.But all eyes will be on China for its latest growth
:01:05. > :01:08.And with the rise of cards and contactless payments,
:01:09. > :01:15.What does the future look like for the humble cash machine?
:01:16. > :01:18.We'll be speaking to the woman running one of the leading
:01:19. > :01:20.independent cash machine networks in Europe.
:01:21. > :01:22.Today we want to know, is cash still king?
:01:23. > :01:25.Or do you use credit cards or contactless to pay for things?
:01:26. > :01:47.A big response to that question so keep your comments coming in.
:01:48. > :01:50.We start here in London where in a few hours,
:01:51. > :01:53.oil giant BP's bosses will face shareholders at its annual meeting.
:01:54. > :01:57.In fact, it could turn into a full-on revolt.
:01:58. > :02:01.It's because of growing anger over how much the boss is being paid.
:02:02. > :02:05.And here's why many say the numbers just don't add up.
:02:06. > :02:07.Last year, BP reported the company's biggest ever loss.
:02:08. > :02:14.As it struggled with the plunge in oil prices.
:02:15. > :02:19.That's forced it to make massive job cuts - over 7 thousand workers -
:02:20. > :02:22.or 9% of its workforce, will go by the end of next year.
:02:23. > :02:29.But this is what's really got shareholders angry.
:02:30. > :02:32.Last year, BP boss Bob Dudley saw his pay rise by 20 percent
:02:33. > :02:37.At the same time, BP investors have seen their shares slump over
:02:38. > :02:41.the past twelve months, losing almost a quarter
:02:42. > :02:57.of their value, over 23 per cent, since this time last year.
:02:58. > :03:00.And if BP needed any more awkward numbers, how about this one?
:03:01. > :03:09.The boss of arch rival Shell, Ben van Beurden -
:03:10. > :03:12.saw a massive cut in his pay package last year, down 77 percent -
:03:13. > :03:16.That's about a quarter of what Mr Dudley made.
:03:17. > :03:17.Ashley Hamilton Claxton, Corporate government manager
:03:18. > :03:19.at Royal London Asset Management is with me.
:03:20. > :03:24.So this is very important to you. Tell us where you stand on this
:03:25. > :03:31.issues likely. We invest more about issues likely. We invest more about
:03:32. > :03:34.half of up to 5 million members and we have a duty to be responsible
:03:35. > :03:40.with what we do with their money. Our concern is that in a year when
:03:41. > :03:44.the company has made a massive loss, the CEO has received the maximum
:03:45. > :03:48.possible bonus he could receive. But he has hit its targets and many have
:03:49. > :03:53.argued he performed well, dealing with the crisis in the Gulf of
:03:54. > :03:55.Mexico extremely well, and responding to the collapsing oil
:03:56. > :04:00.prices. He has been running the company in a very difficult time, so
:04:01. > :04:04.should he not get the reward for hitting those targets? We do not
:04:05. > :04:10.dispute that he had his targets, which we think are very important.
:04:11. > :04:15.The risks we sort can be very real for a company, so we do not dispute
:04:16. > :04:20.he has had those targets. Our concern is for the message that the
:04:21. > :04:26.company is sending to shareholders at a time when they had made a
:04:27. > :04:29.massive loss. We think the board should have exercised discretion.
:04:30. > :04:40.What is likely to happen at the AGM? Will beget a revolt -- will they get
:04:41. > :04:43.a revolt? They need 25% of votes against this remuneration package,
:04:44. > :04:46.as I understand. The vote is actually retrospective because the
:04:47. > :04:53.package has already been awarded. It will not change the pay-out. This is
:04:54. > :04:57.what they agreed to pay him. If we had a high vote, 20 or 25%, the
:04:58. > :05:00.board would need to ask tough questions about whether they made
:05:01. > :05:06.the right decision and hopefully consider that next year when they
:05:07. > :05:12.come to make a decision. Many have said that the board is out of touch
:05:13. > :05:17.with shareholders and also those who work with BP, many of whom will lose
:05:18. > :05:21.their jobs by the end of next year. Do we know with the board or those
:05:22. > :05:27.who do this kind of work within BP consulted with any of the bigger
:05:28. > :05:31.shareholders before they went forward with this remuneration
:05:32. > :05:33.package? Most companies discuss changes in pay with their
:05:34. > :05:39.shareholders. They might not discuss specific numbers in advance but they
:05:40. > :05:41.will often discuss the structure of the page. Thank you so much for
:05:42. > :05:48.coming in and sharing your thoughts. We will be right across the story.
:05:49. > :05:52.Simon Jack is going to the AGM so follow him on Twitter and he will
:05:53. > :05:57.keep you up-to-date. Full coverage across the BBC.
:05:58. > :05:59.In other news, 40,000 workers at US telecoms giant Verizon have gone
:06:00. > :06:02.on strike after negotiations over contracts failed to reach agreement.
:06:03. > :06:04.The unions represent customer service and network technicians
:06:05. > :06:07.who have been without a contracts since August.
:06:08. > :06:09.Talks have stalled over Verizon's plan to cut healthcare
:06:10. > :06:12.Presidential candidate Bernie Sanders spoke
:06:13. > :06:19.at a protest in New York in praise of the workers.
:06:20. > :06:22.British fashion brand Burberry has warned that profit for next year
:06:23. > :06:26.will come in at the lower end of expectations.
:06:27. > :06:29.Sales were down 2% in the six months to March and chief executive
:06:30. > :06:31.Christopher Bailey says the luxury market remains "challenging".
:06:32. > :06:41.Burberry shares are down 25% in the past 12 months.
:06:42. > :06:44.The families of those killed when one of the pilots
:06:45. > :06:46.of a Germanwings passenger plane crashed it into the French Alps
:06:47. > :06:49.are suing the US flight school where he was trained.
:06:50. > :06:51.The lawsuit claims that the Airline Training Centre of Arizona failed
:06:52. > :06:58.to properly screen the medical history of Andreas Lubitz.
:06:59. > :07:04.Lots more on all of these stories online, including Burberry which we
:07:05. > :07:09.just mentioned. Warning of a challenging year. Today, on the FTSE
:07:10. > :07:14.100, the shares are lower, they have really been hit extremely hard over
:07:15. > :07:17.the last 12 months. Not true of all makers of luxury goods. Some are
:07:18. > :07:22.faring better than others. Burberry is interesting, going through a
:07:23. > :07:26.difficult time. China is one of the big reasons it has been suffering,
:07:27. > :07:28.as the slowdown has affected demand. Full details
:07:29. > :07:31.of what we have been told this morning and that warning about
:07:32. > :07:40.profits coming in. Nestle, the world's biggest food
:07:41. > :07:42.company, has reported first-quarter sales that beat analysts' estimates,
:07:43. > :07:44.boosted in part by a by a faster-than-expected recovery
:07:45. > :07:46.of Maggi noodles in India. Yogita Limaye is in
:07:47. > :07:55.Mumbai and can explain. The issue has been that big recall
:07:56. > :07:58.we saw last year. That hit the performance of the firm but they are
:07:59. > :08:00.back on the shelves and they are doing well.
:08:01. > :08:06.They did get back on the shelves in November, but after five months of
:08:07. > :08:08.not being in production or being sold anywhere in India. And
:08:09. > :08:11.while you are seeing a fast recovery, Maggi has once again
:08:12. > :08:17.become the market leader here about a 50% market share. Let me
:08:18. > :08:18.tell you that last year, at this time the market
:08:19. > :08:25.share was anything between 75 and 80%. Rivals have taken over part of
:08:26. > :08:33.that market share and those rivals include foreign brands like Unilever
:08:34. > :08:34.and brands like IDC. Maggi still having to fight a bit, although it
:08:35. > :08:43.is the market leader, to regain the position they had last year. Still
:08:44. > :08:46.having a few challenges. Nestle have said that they will introduce
:08:47. > :08:50.variance of the most popular flavour and hopefully then they will be able
:08:51. > :08:56.to narrow the gap. Thank you, as always. I want to show you the
:08:57. > :09:00.numbers on the markets as they stand. This is what happened
:09:01. > :09:03.overnight in Asia. The story is China, where we have growth figures.
:09:04. > :09:11.Overnight, we will have full coverage. But also oil. I spoke
:09:12. > :09:18.about it at the start of the programme, whale oil goes, equity
:09:19. > :09:19.markets follow. -- where oil goes. This is what
:09:20. > :09:24.Europe is doing. Some optimism because oil hit a new high
:09:25. > :09:29.yesterday. Still significantly down on what we have seen of late. The
:09:30. > :09:31.issue is that we got better-than-expected Chinese export
:09:32. > :09:37.figures, suggesting that the worst could be over, to an extent.
:09:38. > :09:40.Certainly, investors were buoyed by what they have heard and that has
:09:41. > :09:46.translated to a higher start for Europe. We will talk about that in
:09:47. > :09:52.more detail shortly but we have the details in what -- on what is ahead
:09:53. > :09:57.in Wall Street. On Thursday, we will hear from the biggest US mortgage
:09:58. > :10:00.lender, Wells Fargo, as well as Bank of America. The mood is slightly
:10:01. > :10:06.better now after JP Morgan surprise the market with a
:10:07. > :10:08.better-than-expected results. But there will probably be more
:10:09. > :10:13.pessimistic news from the International Monetary Fund. We will
:10:14. > :10:17.hear from Christine Lagarde about the fund's updated global policy
:10:18. > :10:23.agenda. At home, we will also find out the latest inflation figures.
:10:24. > :10:27.Economists expect it to have increased impact as Americans pay
:10:28. > :10:31.more for gasoline. Underlying inflation is still expected to be
:10:32. > :10:32.slow, which would back the Federal Reserve's cautious approach to
:10:33. > :10:35.raising interest rates. Joining us is Colin McLean,
:10:36. > :10:45.MD of SVM Asset Management. Good morning. I hope you are well.
:10:46. > :10:56.Let's talk about the financial markets, which had a really hyper 48
:10:57. > :10:58.hours. A lot of people just did not own very
:10:59. > :11:05.much mining stock any more. They have been scrambling with these
:11:06. > :11:09.positions. I touched on it there, where oil goes, equity markets
:11:10. > :11:11.follow. But is it not a knee jerk reaction? Better-than-expected
:11:12. > :11:13.export figures from China, and everyone says that the worst is over
:11:14. > :11:19.and everything is back on track. Is it that simple? It does help a
:11:20. > :11:21.lot of things but I don't think anyone really knows where the oil
:11:22. > :11:23.price is going. whether there is going to be any
:11:24. > :11:32.restraint in the oil producers, with Iran pumping more
:11:33. > :11:35.and determines to get a share back in the market. We will not get
:11:36. > :11:37.figures on China's mining until we get some of the mining updates
:11:38. > :11:46.next week. So we do not really know what the
:11:47. > :11:48.numbers are, there has just been a scramble. And banking stock back
:11:49. > :11:52.in fashion thanks to JP Morgan, coming out with better-than-expected
:11:53. > :11:56.results. One of our guests this week was
:11:57. > :11:57.saying that expectations were so low about earnings
:11:58. > :12:07.that the news was better and that would buoy the markets. It was not
:12:08. > :12:09.great, the earnings. And there were problems in the investment
:12:10. > :12:11.stock. But still better-than-expected.
:12:12. > :12:19.The key was to cut costs and manage expectations. Overall, it will not
:12:20. > :12:24.necessarily translate with the other banks, but it was a decent result on
:12:25. > :12:25.bad expectations. Thank you for being here. He is not going away
:12:26. > :12:33.yet. As record numbers of us opt
:12:34. > :12:37.for contactless technology to pay for goods and services,
:12:38. > :12:40.is there still a future for humble We speak to the boss of cash
:12:41. > :12:46.machine network Your Cash. You're with Business
:12:47. > :13:05.Live from BBC News. More retail results
:13:06. > :13:07.in the UK this week - today it's the turn of high street
:13:08. > :13:10.mainstay - JD Sports. It's just posted full year results,
:13:11. > :13:13.with pre-tax profits up 45 per cent. The retailer says is sales were up
:13:14. > :13:15.20 per cent to Nick Carroll is a retail analyst
:13:16. > :13:24.at the market research firm, What did you make of these results?
:13:25. > :13:26.These were excellent results. It is a multifaceted
:13:27. > :13:34.business, JD. But they are firing on all soldiers. It does not matter
:13:35. > :13:37.which way you cut it, these were excellent results. Let's talk about
:13:38. > :13:40.Burberry. We have heard figures from them this morning and we have
:13:41. > :13:44.touched on it already this morning but the challenge has always been
:13:45. > :13:49.for Christopher Bailey to try to come up with an answer to the China
:13:50. > :13:54.problem. Yes. And many people have tried to do that. There is no doubt
:13:55. > :13:57.that the slowdown in China has affected business. But there has
:13:58. > :14:01.also been a slowdown in the European and American markets. As a whole,
:14:02. > :14:07.the business is obviously suffering. The positives, the retail
:14:08. > :14:11.like-for-likes was broadly flat. I know that is hard to believe but in
:14:12. > :14:15.a market that has been struggling, Europe and America have suffered
:14:16. > :14:19.when the Asia-Pacific regions suffer. Less people are travelling
:14:20. > :14:24.and travelling consumers make up a big part of the business in the
:14:25. > :14:28.Americas and Europe. And talking of travelling consumers, many of those
:14:29. > :14:32.in China are travelling close by, to Japan or other countries in Asia.
:14:33. > :14:36.Many argue that Burberry's lack of presence in those countries is part
:14:37. > :14:41.of the problem. Yes. That is an issue. We found that they are
:14:42. > :14:46.actually pulling back on licensing deals in the Japanese market. We do
:14:47. > :14:49.not know if that will relegate them moving into that market more on
:14:50. > :14:51.their own terms. If they did, they would see a benefit from that.
:14:52. > :15:14.It is reported that the company that makes Peppa Pig has been snapped up
:15:15. > :15:21.by ITV. Just speculation but shares are not by 11%. It shows the power
:15:22. > :15:25.of advertising around children's television. Peppa Pig could have a
:15:26. > :15:28.new owner! You're watching Business Live -
:15:29. > :15:30.our top story... BP's boss, Bob Dudley,
:15:31. > :15:33.faces a backlash over his giant pay package in the same year the company
:15:34. > :15:46.made record losses. The AGM getting under way in London.
:15:47. > :15:49.Simon Jack is there. You can keep in touch with us.
:15:50. > :15:52.When's the last time you paid for something using cash?
:15:53. > :15:55.Chances are you're using it less and less, with a rise in credit
:15:56. > :16:05.According to Visa Europe, the number of contactless payments
:16:06. > :16:09.And one in seven payments were conducted using contactless
:16:10. > :16:15.So what does this mean for bank notes and the cash
:16:16. > :16:21.Well, one former banker still thinks that cash is king.
:16:22. > :16:24.Jenny Campbell began working at the age of 16,
:16:25. > :16:27.counting cash on bank counters and filling up cash machines
:16:28. > :16:35.She owns YourCash, an independent provider of cash machines
:16:36. > :16:38.across Europe after leading a management buyout
:16:39. > :16:53.The company handles around 78 million transactions across three
:16:54. > :16:55.countries with around 5,000 ATMs, dispensing $4 billion
:16:56. > :17:01.But as cards take over from cash, what impact does it have
:17:02. > :17:06.Jenny Campbell, Chief Executive of YourCash Europe, joins us now.
:17:07. > :17:14.We have got so many questions for you from viewers about this. Quite
:17:15. > :17:24.an emotional subject. We are attached to cash but we're using
:17:25. > :17:28.less. I love the digital revolution. I will buy train tickets online and
:17:29. > :17:32.do my shopping online and I think it is about keeping options for the
:17:33. > :17:37.consumer. You might be surprised to 50% of all payments in the UK are
:17:38. > :17:42.still made with cash. The other payments make up the rest and they
:17:43. > :17:47.are growing through the likes of us and cash is beginning to decline
:17:48. > :17:53.slightly. However, we come into play with our business by providing
:17:54. > :17:57.probably the only access to cash as other avenues closed down, by
:17:58. > :18:02.closing branches, removing cash machines in villages, others might
:18:03. > :18:08.call business so I will put machines in the local convenience store, free
:18:09. > :18:11.to use, the banks pay me for that service and that gives access to
:18:12. > :18:16.cash and a still believe there is a strong place for cash to tip people,
:18:17. > :18:22.to give young people the sense of money management in their lives and
:18:23. > :18:26.even the Chief Executive of the Bank of England last said cash will be
:18:27. > :18:33.here for a long time come. He would say that! He is also moving to
:18:34. > :18:40.another company this year and we would not be doing those notes if we
:18:41. > :18:44.thought they were going. You touched on some of the practical uses, other
:18:45. > :18:49.comments coming in, somebody suggesting the charity collectors
:18:50. > :18:56.are unable to use cards, you need coins for the box. Supermarket
:18:57. > :19:02.trolleys, you need car parks to catch up. Alison says it comes down
:19:03. > :19:06.to safety, the worst thing that banks ever did and it is not safe,
:19:07. > :19:12.do people still feel that carrying cash in your pocket is safer than
:19:13. > :19:17.using contactless cards? The battery will not run out, when I talk to
:19:18. > :19:21.large audiences I say, how many people don't have any cash in their
:19:22. > :19:28.pocket and you will get a handful and I say, I bet you're thinking, I
:19:29. > :19:32.need to get some today? It is a choice and the market continues to
:19:33. > :19:36.evolve and it will do, we are seeing Waitrose, the digital store that
:19:37. > :19:40.recently opened and that is relevant, you have a captive
:19:41. > :19:45.audience of employees but you will still need the options of older
:19:46. > :19:51.people, less well off, cash is hugely important. The fact we're
:19:52. > :19:55.having this debate and with huge interest, it shows this is an issue
:19:56. > :20:03.for your business going forward because when you started this, they
:20:04. > :20:07.needed the management buyout, at RBS, we're using cash less and it
:20:08. > :20:10.will become less as time goes by so how are you thinking about your
:20:11. > :20:15.business in the future? Were in different markets, we are in the
:20:16. > :20:21.Netherlands and are half the number of cash machines there and no banks
:20:22. > :20:24.doing new cash machines so we provide access through supermarkets
:20:25. > :20:28.and opening up in Ireland later this month, that is a big cash economy
:20:29. > :20:33.and in other parts of the world which have gone down a very steep
:20:34. > :20:40.cash decline, such as Sweden, we are seeing, stop, he still made this
:20:41. > :20:46.access to cash. It comes back to consumer choice. And I would align
:20:47. > :20:52.this two books going digital. But book shops would close but we still
:20:53. > :20:58.like to touch and feel books. And on cost, people do point out that money
:20:59. > :21:02.costs, printing, you touched on polymer banknotes, but the cash
:21:03. > :21:08.machine network and printing and coins, that costs money but digital,
:21:09. > :21:15.after the technology, it looks after itself. You must have a lot of
:21:16. > :21:19.overheads? It is a low-cost model that we can pass on to the shop
:21:20. > :21:24.owners because before they have the ATM they take cash to the bank,
:21:25. > :21:28.going around the circulation route and costing money and with my model,
:21:29. > :21:33.shopkeepers put their own money into the ATM which is recirculated back
:21:34. > :21:36.to the consumer so that reduces costs and we can share some of the
:21:37. > :21:43.revenue with them will be received with the banks. Cards, there are
:21:44. > :21:47.fees to be paid, so the British Retail Consortium will tell you that
:21:48. > :21:54.cash is cheaper to process them cards. We have run out of time, but
:21:55. > :22:00.other portion -- passion is breeding dogs and you'll become a judge? I am
:22:01. > :22:06.climbing the ranks with my flat coated retriever. But they are a
:22:07. > :22:11.very important part of my business. Breeder, trainer and a judge yet to
:22:12. > :22:14.come? Absolutely! Thank you for coming in!
:22:15. > :22:16.We've been focussing on the energy market this morning with BP
:22:17. > :22:20.and the impact of lower oil prices on the company.
:22:21. > :22:23.Well, this weekend, 15 major oil producers will meet in the Qatari
:22:24. > :22:25.capital Doha to try to decide whether to freeze oil production,
:22:26. > :22:31.Europe's biggest oil producer - Norway - has been hit badly
:22:32. > :22:34.Our Asia Business Correspondent Karishma Vaswani spoke
:22:35. > :22:37.to the Prime Minister of Norway, Erna Solberg.
:22:38. > :22:39.She started by asking her what she expected
:22:40. > :22:51.I hope that they will find an agreement but they do not expect
:22:52. > :22:57.that, in a way. Norway is lauding oil production, we have had that for
:22:58. > :23:02.ten years so as a producer at the impact is becoming lower on the
:23:03. > :23:08.markets but gas production is higher, which is more direct to the
:23:09. > :23:14.European market. Tax transparency has become a key issue in the world
:23:15. > :23:18.as a result of the Panama Papers, in Norway, everybody publishes their
:23:19. > :23:23.taxes. Is this a model other countries could use? What we have
:23:24. > :23:29.done is we have a totally open system but you have to give up your
:23:30. > :23:34.identity when checking. Our model, when you are both open on how much
:23:35. > :23:41.tax you are paying and their income, and open on who is looking at your
:23:42. > :23:45.numbers. That is a good balance. The Prime Minister of Norway.
:23:46. > :23:57.Interesting, that interview is online in full. Colin has returned.
:23:58. > :24:03.Over to you. Abu Dhabi, it is known for being tax-free, but it is
:24:04. > :24:07.introducing another fee, 3% been visible fee, but only applying to
:24:08. > :24:11.expats. We know these countries have to bring in more money by the oil
:24:12. > :24:17.price is falling but this is only applicable to foreigners. For some
:24:18. > :24:20.other countries in the Gulf, they would like to rebalance the working
:24:21. > :24:27.population and try to maintain full employment amongst nationals, they
:24:28. > :24:34.want to scale back. Economies are not growing but these oil prices and
:24:35. > :24:38.they need to readjust. But if you economies in that region have to
:24:39. > :24:43.think of ways, there is a sales tax coming in in Saudi Arabia? There is
:24:44. > :24:48.a great quote, the government said, one of the worries is that it could
:24:49. > :24:51.affect the population but there is a quote from one minister who says the
:24:52. > :25:03.job of the government is to make people happy. Many people would
:25:04. > :25:07.disagree! 3% tax? It will not! The Times, car buyers drive Britain into
:25:08. > :25:13.debt. Are we borrowing too much to buy cars? Not just cars, student
:25:14. > :25:20.loans, the consumer credit is booming. Isn't that part of the
:25:21. > :25:23.response to lower interest rates? Borrowing has become cheaper over
:25:24. > :25:29.the last year so that is part of the response, it is easier to borrow and
:25:30. > :25:32.it is probably quite good for the economy to see consumer demand so it
:25:33. > :25:39.has got some good results but it will take the credit back-up to uni
:25:40. > :25:46.before the crisis levels. We are addicted to debt in the UK? One of
:25:47. > :25:50.our problems? Culturally? But a lot of other countries are struggling to
:25:51. > :25:54.create consumer demand so I think we are maybe not so badly placed! Nice
:25:55. > :26:09.to see you. That is it from us. Goodbye.
:26:10. > :26:15.For many of us were looking at a cloudy start to the day and we have
:26:16. > :26:19.a few patches of morning rain around, notably for the north of
:26:20. > :26:24.Wales, through Shropshire and spots of rain across the Midlands. The
:26:25. > :26:25.computer model is struggling to get the details right with this area