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