20/04/2016 BBC Business Live


Similar Content

Browse content similar to 20/04/2016. Check below for episodes and series from the same categories and more!



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


Download Subtitles