:00:00. > :00:08.This is Business Live from BBC News with Ben Thompson and Sally Bundock.
:00:09. > :00:18.Airforce One is on its way to Saudi Arabia as we speak.
:00:19. > :00:20.With trade relations currently on the rocks, will the two sides be
:00:21. > :00:37.Live from London, that's our top story, today Wednesday, 20th April.
:00:38. > :00:40.President Obama is beginning a visit to Saudi Arabia today at a time
:00:41. > :00:42.of strained relations between the US and Gulf countries.
:00:43. > :00:44.So what can we expect from this 71-year-old US-Saudi
:00:45. > :00:56.Also in the programme, the world's largest computer chipmaker, Intel,
:00:57. > :00:59.has announced it is shedding 12,000 jobs as it seeks to reduce reliance
:01:00. > :01:18.Markets are downbeat. Shares in Mitsubishi Motors as the company
:01:19. > :01:22.admits that one of its models failed a fuel economy test.
:01:23. > :01:26.We'll get the inside track on the booming market for drones.
:01:27. > :01:37.From farming to filming, they're increasingly popular
:01:38. > :01:39.in the commercial world but at what cost
:01:40. > :01:43.So for fear of droning on - what do you think?
:01:44. > :01:46.Are drones great fun or a dangerous device that can
:01:47. > :01:51.You know what to do - just use the hashtag BBC Biz Live.
:01:52. > :02:02.President Obama lands in Saudi Arabia in around three hour's time.
:02:03. > :02:05.It will be his first visit to the country since King Abdullah's
:02:06. > :02:10.As well as security issues, the leaders of the two countries
:02:11. > :02:13.will also discuss their trading relationship including the key
:02:14. > :02:20.The US imports around 11% of its oil from Saudi Arabia, making it
:02:21. > :02:24.America's second biggest external source of oil.
:02:25. > :02:38.Saudi Arabia meanwhile is the biggest importer of US arms
:02:39. > :02:40.and has spent $95 billion on American hardware
:02:41. > :02:43.However that close economic relationship has been put
:02:44. > :02:46.Increasing supplies of US base shale oil have decreased America's
:02:47. > :02:50.That's been compounded by the Iran nuclear deal which helps
:02:51. > :02:52.to strengthen the economy of Saudi Arabia's key revel
:02:53. > :02:56.With me is Dr Stuart Thomson, public affairs expert
:02:57. > :03:02.at Westminster-based law firm Bircham Dyson Bell.
:03:03. > :03:06.Stewart, nice to see you. Good morning. Sally running through some
:03:07. > :03:06.of the issues there, just highlight for us
:03:07. > :03:11.what will be top of the agenda today between
:03:12. > :03:16.the talks with Saudi and the US, of course, Obama now on his way to
:03:17. > :03:19.Saudi Arabia? A number of issues, but particularly around the economy,
:03:20. > :03:24.Saudi Arabia's position in the region and of course, the fight
:03:25. > :03:25.against IS, a range of issues across all those three things and also the
:03:26. > :03:32.legislation which has been proposed in the States at the
:03:33. > :03:35.moment which, the so-called 9/11 Bill or the ability to challenge
:03:36. > :03:39.foreign countries that are involved in terrorism acts on US soil which
:03:40. > :03:44.is a big issue at the moment. Yeah and one of the key issues will be
:03:45. > :03:46.Saudi's place as you touched on in the world's economy and we know
:03:47. > :03:55.Saudi, of course, for its oil, but the picture is changing quickly.
:03:56. > :04:02.We've talked about their attempts to set-up a sovereign wealth fund for
:04:03. > :04:02.life after oil. What role does Saudi Arabia
:04:03. > :04:11.play if it is not in the oil market? Today's discussions with President
:04:12. > :04:13.Obama will start to tease out those issues, Saudi Arabia if it is a more
:04:14. > :04:23.open or closed society, it is based on the economy, its relations with
:04:24. > :04:25.Iran and others in the region, until you can get to the bottom of those
:04:26. > :04:30.issues, it is difficult to know what issues, it is difficult to know what
:04:31. > :04:32.it will do about its economy, any country that's alined with one
:04:33. > :04:37.particular industry to loosen itself is a huge challenge,
:04:38. > :04:40.so Saudi Arabia is not alone in that. On that issue of oil, it is
:04:41. > :04:45.likely to be tense when it comes to the discussions on fracking and
:04:46. > :04:50.shale energy because the US clearly pushing that, so it is less
:04:51. > :04:56.dependant on foreign oil, but at the same time Saudi Arabia made it known
:04:57. > :05:00.that they are willing for the price to stay low so they can push those
:05:01. > :05:04.producers out of business? There is a shift in the relations between the
:05:05. > :05:10.US and Saudi Arabia with America wanting it to be a more independent,
:05:11. > :05:14.not so utterly reliant country as it would see it on the States, but when
:05:15. > :05:17.it does, when Saudi Arabia does take a more independent role for instance
:05:18. > :05:21.in Yemen around Yemen and other issues as well, that America doesn't
:05:22. > :05:24.like that. These challenges aplay to the States as well as to Saudi
:05:25. > :05:27.Arabia itself in the future relationships. I have been to Saudi
:05:28. > :05:31.Arabia a few times and what strikes you when you go there is how slowly
:05:32. > :05:32.everything changes and we have seen this recently too
:05:33. > :05:39.in terms of the speed of changes starting to increase and by historic
:05:40. > :05:42.standards it is pretty fast and yet, there are still calls for Saudi
:05:43. > :05:45.Arabia to do more to open up its economy, to embrace the outside
:05:46. > :05:45.world, it is not quite happening yet, is it?
:05:46. > :05:50.It is not, but as you say, the pace of change has picked up, but there
:05:51. > :05:56.are still those that say that it needs to go faster. It needs to open
:05:57. > :06:00.itself up more quickly, but again, to bring a population along and to
:06:01. > :06:03.protect the position of the Royal Family there as well, that's going
:06:04. > :06:07.to be sometime before any of those things happen. Fascinating stuff. Dr
:06:08. > :06:09.Stewart Thompson, thank you, nice to see you from the Westminster based
:06:10. > :06:16.law firm. Malaysia Airlines is looking
:06:17. > :06:19.for a new boss AGAIN. Christoph Mueller was brought
:06:20. > :06:21.in to restructure the carrier and was the first first ever
:06:22. > :06:26.non-Malaysian to head the company. But now, less than a year
:06:27. > :06:28.into his three-year contract he's announced he's leaving
:06:29. > :06:30.for personal reasons. The airline say he will
:06:31. > :06:34.depart in September. Yahoo's results came in better
:06:35. > :06:37.than expected and shares actually The internet firm reported a loss
:06:38. > :06:50.of $99 million for the quarter, compared to a $21.2 million profit
:06:51. > :06:54.for the same time last year. Yahoo is still looking for a buyer -
:06:55. > :06:58.with US mobile giant Verizon Tata Steel's boss in Port Talbot,
:06:59. > :07:12.Stuart Wilkie, is to launch a management buyout
:07:13. > :07:13.for the company's UK operations. Mr Wilkie was one of the architects
:07:14. > :07:16.of a survival plan presented to the Tata board in India
:07:17. > :07:19.last month, but that was ultimately rejected
:07:20. > :07:31.and the firm put up for sale. The group says it could threaten
:07:32. > :07:35.London's eminence as a financial capital. The eight say it is the
:07:36. > :07:40.UK's decision alone where its future lies, but the US has a critical
:07:41. > :07:43.interest in the outcome. Leave campaigners accuse the men of double
:07:44. > :07:52.standards and belittling Britain's place in the world.
:07:53. > :07:55.Shares in the Japanese car-maker Mitsubishi have fallen sharply after
:07:56. > :07:59.It relates to fuel economy data for its cars in Japan.
:08:00. > :08:02.Tim McDonald is following this from our Asia Business Hub.
:08:03. > :08:07.Tim, what do we know about the emissions tests? As you
:08:08. > :08:13.mentioned shares took a tumbling, about 15% merely on reports that the
:08:14. > :08:15.Japanese car-maker conducted improper fuel tests. Now, we don't
:08:16. > :08:20.really know anything about the nature of the tests and
:08:21. > :08:22.how they were improper, but on the market reaction alone, it is a very
:08:23. > :08:29.bad day for Mitsubishi. If this all seems just a little
:08:30. > :08:30.familiar, it is probably because of another car maker, Volkswagen, it
:08:31. > :08:36.was hammered about six months ago when it emerged they installed
:08:37. > :08:39.emissions test cheating software into 11 million diesel engines
:08:40. > :08:43.worldwide and it affected the bottom line for them, VW is recalling
:08:44. > :08:44.millions of cars worldwide as a result
:08:45. > :08:49.of the scandal and they have set aside $7 billion to cover the costs
:08:50. > :08:50.and VW posted its first quarterly loss
:08:51. > :09:01.in eight years and Volkswagen isn't alone, another car maker
:09:02. > :09:13.agreed to pay penalties for overstating
:09:14. > :09:16.their vehicle ratings. Will it be a similar story for Mitsubishi? We
:09:17. > :09:21.don't really know. This comes a week before they release their full-year
:09:22. > :09:24.results for 2015 and it revised down estimates, but you know, of course,
:09:25. > :09:31.that won't apply to, you notion what happened today won't apply to last
:09:32. > :09:35.year's results, but we will hear in an hour or so, in half an hour,
:09:36. > :09:38.there will be a press conference that will shed more light on what
:09:39. > :09:41.it can mean for Mitsubishi and how serious these results are.
:09:42. > :09:58.close eye on that story. Tough times ahead for Mitsubishi.
:09:59. > :10:02.We did see the main market in Japan close
:10:03. > :10:10.on the day, but we saw significant losses in Hong Kong and China. It is
:10:11. > :10:13.a mixed day for markets around the world. Lots of issues, the oil price
:10:14. > :10:21.sliding again in Europe, we have I say the main markets, London,
:10:22. > :10:22.France and Germany all down on the day.
:10:23. > :10:28.The big losers are the energy stocks. As I haven't got any numbers
:10:29. > :10:32.to show you, I will move on. We will discuss the markets in detail in a
:10:33. > :10:39.moment, but let's talk you through the news from
:10:40. > :10:45.Intel, In the US, The tech giant Intel
:10:46. > :10:48.that is taking drastic action to boost its bottom line as it
:10:49. > :10:51.grapples with the swift decline The CEO admitted Intel missed a move
:10:52. > :10:55.to mobile wallet was dominating the business of making chips
:10:56. > :10:57.for personal computers. More of our technology was moving
:10:58. > :11:00.on to mobile phones and tablets. In the fastest-growing
:11:01. > :11:03.and most lucrative part And now it faces the daunting
:11:04. > :11:07.prospect of the next stage of the IT An increasing number
:11:08. > :11:15.of the electronic devices in our homes and offices
:11:16. > :11:20.are becoming Internet devices, It is already a sizeable market,
:11:21. > :11:26.but it is expected to get much That's why even though Intel
:11:27. > :11:32.is still a huge force in technology, it needs to restructure and quickly
:11:33. > :11:35.to try to dominate the market for Internet devices and the cloud
:11:36. > :11:45.just as it dominated the PC market. If it doesn't, many more jobs might
:11:46. > :11:53.be lost than the 12,000 it shed. Joining us is Manji Cheto,
:11:54. > :12:03.an analyst at London-based Good morning. Good morning. Let's
:12:04. > :12:05.talk markets because we touched on Intel and there was a lot of
:12:06. > :12:11.movement yesterday because we had the likes of Yahoo and Goldman
:12:12. > :12:15.Sachs. What's caught your eye today? I think, you know, the Yahoo story.
:12:16. > :12:16.That's been dragging on for a little bit.
:12:17. > :12:20.have been expecting a sale happening. I don't know if it is
:12:21. > :12:27.going to come, if it is going definitely considering actually was
:12:28. > :12:30.part of the Yahoo generation. We talked a lot about it on the
:12:31. > :12:34.programme yesterday and because clearly we are still waiting for
:12:35. > :12:34.details on a bid and the results coming
:12:35. > :12:40.in much better than expected, but it is hard to know which way the
:12:41. > :12:43.markets will perceive this in terms of their shares rising in after
:12:44. > :12:45.hours yesterday, but it is a temporary blip. Exactly.
:12:46. > :12:51.It is just because markets are anticipating that a sale will close
:12:52. > :12:52.soon and I'm not sure, you know, that we're there.
:12:53. > :12:58.The other thing as well, I mean, the actual numbers was a loss of $99
:12:59. > :13:00.million compared it a profit of $21 million the year before.
:13:01. > :13:07.But not as bad as was expected. How low can expectations be? The same
:13:08. > :13:11.with Goldman Sachs, the Goldman Sachs numbers were pretty awful and
:13:12. > :13:12.yet shares went up? Yeah. I don't know.
:13:13. > :13:18.I think we will see where things go with that. For now, you're going to
:13:19. > :13:19.talk us through the paper stories later,
:13:20. > :13:25.but for now, thank you. We'll get the inside
:13:26. > :13:27.track on the booming Capturing incredible
:13:28. > :13:35.shots like these has led to a boom in drones,
:13:36. > :13:37.but are they safe You're with Business Live from BBC
:13:38. > :13:42.News. Banking in the UK is still dominated
:13:43. > :13:52.by the so-called big four - Barclays,Lloyds,
:13:53. > :13:58.HSBC and Natwest. But what about those new challenger
:13:59. > :14:01.banks designed to break up that monopoly and give
:14:02. > :14:03.us all more choice? Well, one of those is Metrobank
:14:04. > :14:06.and it's just released its first quarterly figures since it floated
:14:07. > :14:08.on the stock exchange last month. It says 2016 saw record growth
:14:09. > :14:11.in deposits and lending. Vernon Hill is the Chairman
:14:12. > :14:16.of Metro Bank and joins us now. A good set of Figgs. The markets
:14:17. > :14:20.seem to like what they have seen and the first set of Figgs since you
:14:21. > :14:24.listed? Yes, this is the first public release after we listed in
:14:25. > :14:29.March. It is the outstanding quarter, growth as you said in
:14:30. > :14:32.deposits, loans and no accounts and the Metrobank model in Britain and
:14:33. > :14:38.London just keeps going from strength to strength.
:14:39. > :14:41.Having said that though, we are looking at ?11 million loss or
:14:42. > :14:52.$16 million, but your net lending is up 125%. Talk us through the numbers
:14:53. > :14:55.and what you are expecting next time because at the end of the day,
:14:56. > :15:02.shareholders want to see profits, don't they, eventually? Well,
:15:03. > :15:06.Metrobank is in its sixth year. We have under gone unbelievable growth
:15:07. > :15:12.in deposits and lending. Nothing like this has been seen in America
:15:13. > :15:18.or Britain. Our loss after when you deduct the special charge for the
:15:19. > :15:23.public offering was actually ?7.9 million and our losses are dropping
:15:24. > :15:28.and we expect to turn profit later this year. Metrobank is about giving
:15:29. > :15:34.the British consumers and commercial clients a real choice. It is
:15:35. > :15:36.different than the big four banks and the Brits have responded in a
:15:37. > :15:45.great way. But you are still a bank on the High
:15:46. > :15:53.Street and the trend would seem to be to have a bank on a smart device,
:15:54. > :15:57.so are you really a challenge? 100%. Our job is to deliver the best in
:15:58. > :16:02.consumer and business banking in every channel the client wants
:16:03. > :16:08.in-store or online or mobile. We deliver the best on every channel.
:16:09. > :16:11.unique service model works. We unique service model works. We
:16:12. > :16:16.appreciate your time. Our top story, President Obama is on
:16:17. > :16:28.the way to Saudi Arabia where trade relations have been tested thanks
:16:29. > :16:31.to a much lower oil price We will keep you posted on
:16:32. > :16:37.developments. Now let's get the inside
:16:38. > :16:41.track on drones. They've only been around for a few
:16:42. > :16:44.years but they're already fast While the sale of recreational
:16:45. > :16:48.drones has exploded in recent years, it's commercial drone sales that
:16:49. > :16:51.are transforming the way Commercial drone sales reached
:16:52. > :16:58.$261 million in 2015 but are expected to almost double
:16:59. > :17:02.to $481 million this year. More and more areas of business
:17:03. > :17:07.are taking advantage of UAV technology, with agriculture
:17:08. > :17:10.expected to account for 48% of all commercial
:17:11. > :17:15.drone sales this year. The filming opportunities that
:17:16. > :17:17.drones offer have allowed Airstoc have 5000 operators in over
:17:18. > :17:28.100 countries and sells drone-shot aerial footage of everything from TV
:17:29. > :17:31.shows to construction projects Giles Moore is the CEO
:17:32. > :17:44.of Airstoc and joins me now. You have brought a couple of your
:17:45. > :17:48.devices with you. People are getting increasingly familiar with what they
:17:49. > :17:56.are and how they work. Talk us through the more unusual
:17:57. > :18:01.applications. Agriculture? Used in a lot of different ways because of the
:18:02. > :18:08.detail it can produce. It might look at what content in a wheat field.
:18:09. > :18:13.Livestock control, crops are being, the detail is vast, which is why
:18:14. > :18:22.people are starting to use it for farming, construction as well. Do
:18:23. > :18:31.they round-up sheep? We have seen some of that on YouTube. What about
:18:32. > :18:35.the sheepdog? They are still around. One of the most interesting ones I
:18:36. > :18:41.have heard is someone trying to combat world deforestation with
:18:42. > :18:50.maths forestation and trying to plant trees with drawings. We have
:18:51. > :19:00.one on the desk, what you might call an entry level model. Costing about
:19:01. > :19:05.?1500. You have also brought in a much more industrial one in the
:19:06. > :19:10.corner, ominously staring at us. Talk us through what you would use
:19:11. > :19:14.that for. That is the commercial grade drone which would be used for
:19:15. > :19:23.media, for footage shown on television and cinema screens. Also
:19:24. > :19:28.for construction, thermal imaging. Viewers' comments, we asked on
:19:29. > :19:33.Twitter if people think they are great or dangerous. Someone says in
:19:34. > :19:38.the wrong hands they could be very dangerous and then needs to be a
:19:39. > :19:45.chord of conduct. We had a story about a drone hitting an aeroplane
:19:46. > :19:51.coming into at Heathrow. It is on the minds of everybody, the
:19:52. > :19:55.potential for good and bad. Yes, and the rules have been in place for a
:19:56. > :20:00.long time and do not have to be changed. They have to be enforced.
:20:01. > :20:07.What has happened with Heathrow and other incidents, it should be a mist
:20:08. > :20:13.to accelerate the education of drones. You have people who it is
:20:14. > :20:17.their passion and livelihood, consumers who want to fly at far
:20:18. > :20:23.away as high and fast as they can and that is the danger. There are
:20:24. > :20:31.specific rules and regulations about using them whoever you are.
:20:32. > :20:35.Absolutely. It is that part of the Margetts than needs to be targeted
:20:36. > :20:39.because the rules are in place and you can enforce them and people have
:20:40. > :20:45.to be made aware of the rules. You can put things in place in terms of
:20:46. > :20:50.technology, making it compulsory to register drones for accountability,
:20:51. > :20:56.but it comes down to common sense. If your next Heathrow the last thing
:20:57. > :21:00.you want to do is fly it 2000 feet in the hour. The industry is going
:21:01. > :21:08.to get bigger. We have spoken about Amazon on delivering parcels using
:21:09. > :21:15.drones. The air is going to get more crowded and it is going to get
:21:16. > :21:18.busier. How do you regulate something about there about who has
:21:19. > :21:23.commercial rights of way and recreational right-of-way and not
:21:24. > :21:32.least helicopters and planes who are up there as well? It takes a lot of
:21:33. > :21:37.time to get in place. The same when cars first came about, there was a
:21:38. > :21:41.lot of mess at the start. There is with the drones coming into play.
:21:42. > :21:47.Things like the livery will happen at some point, but it is a lot more
:21:48. > :21:51.in advance of what you can do when you get there. A lot of it is
:21:52. > :21:57.working together with the manufacturers to try to create the
:21:58. > :22:13.technology that can prevent issues happening. As long as the stories
:22:14. > :22:21.that come out, it is good. Thank you for your comments. I hope we have
:22:22. > :22:29.answered some of your questions. There are a lot of other stories.
:22:30. > :22:40.Coca-Cola is rebranding and trying to push its healthy credentials,
:22:41. > :22:46.calling itself the zero sugar. I wonder if the tax has anything to do
:22:47. > :22:51.with that. House-building, a national obsession. The first three
:22:52. > :22:55.months of the year delays and uncertainty related to be you
:22:56. > :23:07.referendum, it seems we are building fewer houses. You can stay ahead
:23:08. > :23:14.with all of the breaking business news. With insight and analysis from
:23:15. > :23:24.the BBC's team of editors around the world. We want to hear from you. Get
:23:25. > :23:35.involved on the web page. On Twitter and Facebook. Business Live, on TV
:23:36. > :23:43.and online, whenever you need to know.
:23:44. > :23:45.Now it's time for a look at the papers.
:23:46. > :23:48.The New York Times reports on a story we have been
:23:49. > :23:50.covering this morning, that Yahoo reported a $99 million
:23:51. > :23:52.quarterly loss, as it reviews offers from potential bidders.
:23:53. > :23:53.The Times meanwhile quotes the Grosvenor Group,
:23:54. > :23:55.which manages billions of dollars in property.
:23:56. > :23:58.They say the housing market looks like it will head downward
:23:59. > :24:07.We had an opposite report earlier this week.
:24:08. > :24:10.And the Huffington Post covers news that it may be more than a decade
:24:11. > :24:13.before there is a woman on the front of a US dollar bill.
:24:14. > :24:15.What other business stories has the media been
:24:16. > :24:19.Manji Cheto from Teneo Intelligence is joining us again to discuss.
:24:20. > :24:29.Banknotes. I am fascinated by how much of a political hot potato they
:24:30. > :24:34.are. We have had this debate already about the ?10 note. This is the
:24:35. > :24:39.American discussion. A lot of discussion about when a woman will
:24:40. > :24:45.finally appeared on a banknote. Women will have to appear until 2030
:24:46. > :24:49.to get their face on a banknote. Reading the story made me think I
:24:50. > :24:55.cannot believe we have had to wait this long to make it happen and it
:24:56. > :25:01.is that we have to wait until 2030. A little bit of a step back for
:25:02. > :25:05.women who have been campaigning. This is in the US specifically. If
:25:06. > :25:10.we end up with a female president things might change. Whoever gets
:25:11. > :25:19.the job I imagine we'll have other things on their mind. Do you live in
:25:20. > :25:30.London? Yes. I am waiting for the correction to happen. I am renting
:25:31. > :25:35.at the moment. I love the area that I live, Chiswick, and I cannot
:25:36. > :25:41.afford to buy. Hopefully that correction will happen across the UK
:25:42. > :25:46.including London. Why do they say a correction is coming? Stamp duty
:25:47. > :25:51.changes and the strength of the pound. Concern about the EU
:25:52. > :26:13.referendum and what happens to the markets.
:26:14. > :26:15.Tonnes of sunshine on the way today. Enjoy it if