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