:00:00. > :00:08.This is Business Live from BBC News with Ben Thompson and Sally Bundock.
:00:09. > :00:11.BP slumps to a loss of almost 500-million dollars for the first
:00:12. > :00:21.It's blamed the collapse in oil prices.
:00:22. > :00:23.Live from London, that's our top story today, Tuesday
:00:24. > :00:41.The tumbling price of oil and ongoing costs of the Gulf
:00:42. > :00:44.of Mexico spill takes its toll on giant BP but shares are headed
:00:45. > :00:50.Also in the programme....Three US tech giants reveal how much money
:00:51. > :00:52.they've been making - we'll be looking at the little blue
:00:53. > :01:00.bird and why it's facing some serious headwinds.
:01:01. > :01:06.Mozilla's Firefox goes head to head with Microsoft and Google -
:01:07. > :01:08.but can it ever stand out in the crowd?
:01:09. > :01:11.The boss of Mozilla will be here to tell us why and OPEN
:01:12. > :01:18.And as Twitter prepares to unveil its latest
:01:19. > :01:40.In the last hour or so BP has reported its first quarter
:01:41. > :01:43.results and they don't make for pretty reading.
:01:44. > :01:47.The tumbling oil price has taken its toll on energy
:01:48. > :01:59.companies around the world - and BP is no exception.
:02:00. > :02:03.The group reported a replacement cost loss of $485 million -
:02:04. > :02:06.but when you take into account some adjustments the figure comes
:02:07. > :02:09.in as a surprise profit of just over half a million dollars.
:02:10. > :02:17.This was better than expected and BP shares opened higher this morning.
:02:18. > :02:26.Still the year before the company reported a profit of more
:02:27. > :02:30.And the massive fall in profits were caused, in part,
:02:31. > :02:33.by costs relating to BP's oil spill in the Gulf of Mexico.
:02:34. > :02:38.The Macondo blowout occurred 6 years ago, but still continues to affect
:02:39. > :02:46.the business' performance in first three months of the year,
:02:47. > :02:51.Shareholders haven't had an easy ride.
:02:52. > :02:54.Since their peak in 2014, the value of the company has slumped 30%.
:02:55. > :02:57.Investors have been so dismayed at the company's performance
:02:58. > :02:59.that they voted against Chief Executive Bob Dudley's
:03:00. > :03:05.proposed pay rise earlier this month.
:03:06. > :03:18.Explain this to us? First of all, The oil price has fallen, that is
:03:19. > :03:20.the main reason for the loss. There's also the money that they've
:03:21. > :03:30.had to accrue for the spill. That explains the difference, the
:03:31. > :03:34.non-accounting issues that are not appearing in the profit and loss,
:03:35. > :03:46.they are not related to the oil price that account for the profit.
:03:47. > :03:51.This really is the raw end of what we have heard so much about, the
:03:52. > :03:57.persistently falling oil price that seems to be going nowhere fast. We
:03:58. > :04:02.have seen BP and Shell cutting production, exploration and R D to
:04:03. > :04:04.try to balance the books in this era? That is one of the reasons why
:04:05. > :04:17.BP is in a better position. They have got rid of their worse
:04:18. > :04:23.operations, so they are quite well placed, they are quite lean and
:04:24. > :04:31.efficient. Once they have drawn a line under the well spill, which the
:04:32. > :04:35.recent consent decree suggests they may well be able to do that in the
:04:36. > :04:39.near future, then they can move forward. That is why they were able
:04:40. > :04:48.the maintain the dividend at 10 cents. They lost a lot less on an
:04:49. > :04:55.ongoing basis. Things are improving for them. The oil price is rising.
:04:56. > :04:59.The IAEA is of the opinion that the huge oversupply not that long ago,
:05:00. > :05:03.six million barrels a day, it's now about one-and-a-half, so we are
:05:04. > :05:05.moving back into balance. A word on that strategy because Bob Dudley,
:05:06. > :05:08.the Chief Executive, talking this morning about the challenging
:05:09. > :05:14.environment, saying we are driving towards our near term goal of
:05:15. > :05:18.rebalancing BP's cash flows and it's exactly that, rebalancing in this
:05:19. > :05:23.era. Things were very different a couple of years ago? The oil price
:05:24. > :05:30.was then seemingly on a relentless march north and really it collapsed
:05:31. > :05:34.mainly due to shale production. The US jumped from being the third
:05:35. > :05:41.producer to the largest producer in the world. That was entirely due to
:05:42. > :05:46.shale production in places like Texaco and North Dakota. The oil
:05:47. > :05:50.price crashed to below the cost of production in these places so people
:05:51. > :05:54.aren't sinking new wells in Texas and North Dakota so the US
:05:55. > :05:57.production is starting to roll over the wells that were sunk a couple of
:05:58. > :06:00.years ago and no longer being sunk and the oil price is rising. Thank
:06:01. > :06:02.you very much for explaining all of that.
:06:03. > :06:08.Apple is about to report its earnings later on Tuesday -
:06:09. > :06:12.with investors closely watching out for its latest sales numbers.
:06:13. > :06:15.The last time the company put out its financial results it warned
:06:16. > :06:21.we could see the first-ever decline in iPhone sales in 2016.
:06:22. > :06:23.China has been a major growth area for the company.
:06:24. > :06:32.of Justice has approved Charter Communications purchase
:06:33. > :06:34.of cable operators Time Warner Cable and Bright House networks.
:06:35. > :06:39.The deal will create the second largest cable broadband provider
:06:40. > :06:45.Charter had to agree to not stop its content providers
:06:46. > :06:55.from separately selling shows online, as part of the approval.
:06:56. > :07:02.This is the point where we take a look at the Business Live page,
:07:03. > :07:07.dominated by BP this morning but also many other stories. British
:07:08. > :07:12.American tobacco always in the Spotlight, always a controversial
:07:13. > :07:21.one, it tells us cigarette sales grew by %, it's interesting if you
:07:22. > :07:24.look at where they increased. The company always looking for new
:07:25. > :07:35.markets around the world, it seems it's found them. Grew by %.
:07:36. > :07:42.contract has been announced in the last few hours.
:07:43. > :07:45.Lets take you to our Asia Business Hub in Singapore,
:07:46. > :07:49.Tim McDonald is following this for us.
:07:50. > :07:58.Malcolm Turnbull described this as a momentum endeavour. It has a price
:07:59. > :08:07.to match, it will make it one of the biggest projects. The winner is a
:08:08. > :08:12.French firm, DCNS, it will build subs like the Barracuda. There'll be
:08:13. > :08:17.12 in all and the contract covers upkeep. The project will create
:08:18. > :08:22.about 2800 jobs in Adelaide where it will be built. Japan had been a
:08:23. > :08:25.front runner in the contest and has called the decision regrettable and
:08:26. > :08:27.is seeking an explanation from the Australian government and a separate
:08:28. > :08:50.German bid also missed out on that. Let us have a look at the markets
:08:51. > :08:55.around the world. We have got the Federal Reserve
:08:56. > :08:59.having its monthly meeting as the Central Bank decides on the cost of
:09:00. > :09:02.borrowing, also the Bank of Japan. Many markets are risk averse,
:09:03. > :09:06.treading water ahead of the Central Bank meetings. Let's look at Europe.
:09:07. > :09:11.We have mentioned lots of earning stories out that do affect the
:09:12. > :09:18.markets. BP shares higher, helping the FTSE 100, a big weighting on the
:09:19. > :09:21.London Stock Exchange. Results out from Whitbread better than expected.
:09:22. > :09:26.It will be a real day for results and corn rat numbers because we are
:09:27. > :09:29.going to hear from Apple and also Twitter, its first quarter earnings
:09:30. > :09:34.are coming out as well after the market close in the US. Shares in
:09:35. > :09:39.the company are down some 66% from the peak. So what has Jack got
:09:40. > :09:46.planned for the company now, can he revive the little blue bird?
:09:47. > :09:49.Michelle has more from New York. We can't stop sharing. Just stop and
:09:50. > :09:52.think how many times a day do you check and interact on social media
:09:53. > :09:57.sites? Why isn't Twitter more popular? What's the problem? I've
:09:58. > :10:01.got a few different social media platforms that I use and I
:10:02. > :10:07.personally don't find a great need for Twitter. Do you use it? No. It
:10:08. > :10:12.appeals to a younger audience and Facebook is more user friendly for
:10:13. > :10:17.people who are more accustomed to being online. Brevity is key to its
:10:18. > :10:22.appeal, June like Facebook, blogs are limited to 140 characters. The
:10:23. > :10:27.number of people using it has grown over the past four years, but as you
:10:28. > :10:32.can see from this graph, the pace of that growth is decelerating,
:10:33. > :10:39.grinding to a halt last quarter. A far cry from when the stock first
:10:40. > :10:46.took flight in November 2013. It's now 35% below the $26 a share it
:10:47. > :10:49.commanded on that first trading day. Twitter went out to Wall Street in
:10:50. > :10:53.2013 and said we are going to be this size. It's told advertisers, we
:10:54. > :10:57.are going to be this size and reach this many people. It's not just a
:10:58. > :11:01.matter of Wall Street getting it, advertisers at some point are going
:11:02. > :11:04.to say, wait a minute, if we want to reach a lot of people, we are going
:11:05. > :11:12.to go to Google, Facebook, we don't need to go to Twitter. Could the NFL
:11:13. > :11:15.save Twitter? It will screen ten National League games this season on
:11:16. > :11:18.Thursday nights, extending its content beyond the posts of
:11:19. > :11:24.journalists, politicians and celebrities. Twitter's core users
:11:25. > :11:28.are loyal and vocal. The problem for Wall Street is, there aren't enough
:11:29. > :11:33.of them. And, with its share price doing poorly, some investors may
:11:34. > :11:49.unfollow the micro-bloging site if it fails to grow its user base.
:11:50. > :11:52.Joining us is Nick Hungerford, CEO of Nutmeg Investment Management.
:11:53. > :11:59.What are we expecting from Apple? This could be the first quarter in
:12:00. > :12:04.51 quarters that we see declining revenues from Apple. That will be an
:12:05. > :12:08.absolute disaster for Tim Cook, not in terms of analyst expectations but
:12:09. > :12:12.in terms of the reputation. He hasn't seen a decline in quarter
:12:13. > :12:17.since he's been at the helm of the company. Why is that? You have the
:12:18. > :12:21.problems they have with the i watch which hasn't taken over really as
:12:22. > :12:24.the big new gadget. You have issues in China where the iPhone was meant
:12:25. > :12:30.to be expanding sales and it was going to be the great hope for
:12:31. > :12:33.Apple. They have been a bit slower than expected. I don't know the
:12:34. > :12:36.numbers off the top of my head, but the amount of money they make each
:12:37. > :12:42.quarter, it's a big number isn't it? Yes. If it comes down a bit... They
:12:43. > :12:47.are not losing sleep over this are they do you think or are they? It's
:12:48. > :12:53.a shame for Apple in terms of, you see their star somewhat waning and
:12:54. > :12:57.other tech companies, maybe not Twitter, but Facebook especially
:12:58. > :13:01.taking on that mantle of perhaps being Silicon Valley's favourite son
:13:02. > :13:07.and that is a shame for Apple. From all the excitement of tech which we
:13:08. > :13:18.all enjoy talking about, let's talk Central Banks. The Are you not
:13:19. > :13:22.excited by that? No! In a word, no. We have got the Bank of Japan and
:13:23. > :13:26.the Federal Reserve in the US talking about interest rates. The
:13:27. > :13:30.Federal Reserve has been forecasting and tipping us off that interest
:13:31. > :13:33.rates are going to rise probably twice this year, although they have
:13:34. > :13:36.speculated it might be up to four times. So if they are going to do
:13:37. > :13:40.something, they need to move this month which is very unlikely, or
:13:41. > :13:44.they need to signal that they are going to move in June which is
:13:45. > :13:48.probably more likely. The Bank of Japan will take their lead from
:13:49. > :13:51.that, but they are in negative interest, their currency is
:13:52. > :13:56.appreciating when they want it to depreciate. We should send you to
:13:57. > :14:01.Washington! You could be on Fed Watch? I've spent many an hour stood
:14:02. > :14:11.there, I have to say, that is probably why!
:14:12. > :14:13.Mozilla's Firefox used to go head-to-head with
:14:14. > :14:16.Microsoft's Internet Explorer in the battle of the web browsers.
:14:17. > :14:18.Now, thanks to the rise of Google Chrome, Mozilla has been
:14:19. > :14:23.We'll speak to the company's Executive Chairwoman,
:14:24. > :14:26.Mitchell Baker, about the future of Firefox.
:14:27. > :14:28.You're with Business Live from BBC News.
:14:29. > :14:39.Costa Coffee and Premier Inn, says full year profits rose
:14:40. > :14:45.Coffee chain Costa saw Like for like sales up 2.9%
:14:46. > :14:49.and the hotel business saw a rise of 4.2% on the same time last year.
:14:50. > :14:52.Chief Executive Alison Brittain says she's "confident of making good
:14:53. > :15:12.As well as announcing a great set of results with sales up 12% which is
:15:13. > :15:15.lovely, I'm also talking about the growth strategy for the business and
:15:16. > :15:19.I am going to confirm today that we will continue to grow out to 2020,
:15:20. > :15:25.we are looking at 20,000 more respects for the hotel business and
:15:26. > :15:29.the best part of ?1 billion for Costa. To do that, we are going to
:15:30. > :15:34.have to do things differently, grow and innovate in our UK business. We
:15:35. > :15:37.are going to have to focus our strengths on growth in the
:15:38. > :15:40.international business and we are going to have to put some
:15:41. > :15:52.infrastructure in and capability that will help us be efficient and
:15:53. > :15:59.productive. Clearly Costa is a big growth area four-year. In China you
:16:00. > :16:03.have big expansion plans. China is a good long-term opportunity. We have
:16:04. > :16:08.put in place a good local team building the brand, voting in local
:16:09. > :16:13.food and Logistics and Supply. Which is what you have to do when you are
:16:14. > :16:19.overseas will stop we already have 380 stores there, we plant on having
:16:20. > :16:24.700 in the near term. We have to leave it there.
:16:25. > :16:30.Alison Brittain, the Chief Executive of Whitbread.
:16:31. > :16:37.If you need any more details about the results being announced today,
:16:38. > :16:44.go to our page on the BBC website. To prove it is live, there is our
:16:45. > :16:50.interview of a few moments ago. A busy morning for corporate results.
:16:51. > :16:55.BP dominating things. Also the story of ScottishPower, paying a fine,
:16:56. > :17:04.pledging and apologising for leaving customers out of pocket as a result
:17:05. > :17:11.of an ID upgrade. Cobham's shares crashed.
:17:12. > :17:15.You're watching Business Live - our top story...
:17:16. > :17:24.BP's numbers falling as it grapples with a much lower oil price, and the
:17:25. > :17:36.costs of the oil disaster mounting up this year. On top of all that,
:17:37. > :17:46.that slump in the price of oil hitting them. Two Isco, three is a
:17:47. > :17:57.crowd. -- two is company. Can we trust the tech companies
:17:58. > :18:00.with our personal data that we readily hand over?Mitchell
:18:01. > :18:02.Baker is a Silicon Valley pioneer, and boss of
:18:03. > :18:04.the not-for-profit company Mozilla. It's best known for its
:18:05. > :18:06.Firefox web browser. But its a tiny player
:18:07. > :18:09.in the land of giants. It has just 4% of the market,
:18:10. > :18:11.compared to Google's Chrome browser which takes a quarter of the market
:18:12. > :18:14.and Microsoft's 39%.But that hasn't stopped Mitchell Baker pushing
:18:15. > :18:17.for a more open, sharing web, rather than one driven
:18:18. > :18:31.by corporations and profits. It is a tough market we are
:18:32. > :18:35.fundamentally different, we are not-for-profit organisation trying
:18:36. > :18:41.to build openness and freedom. And understanding in opportunity into
:18:42. > :18:44.life. We worked differently. Hopefully if you are using our
:18:45. > :18:49.product and you love it, you are not always noticing that. The values and
:18:50. > :18:55.the reason Mozilla exists shows in our product. I wanted to ask you
:18:56. > :19:04.about the concept of the open web. It is an important one. It touches
:19:05. > :19:08.on many things, differentiating you from your rivals. Can you tell us
:19:09. > :19:13.about that? It is the idea that the web belongs to all of us. If you are
:19:14. > :19:18.a business, you can build a business on the web without needing to go to
:19:19. > :19:23.one company given you permission or one government. The open Web is the
:19:24. > :19:28.idea that we as citizens have a piece of the web, and the Internet
:19:29. > :19:36.or the network, the path we call the web is important, not just because
:19:37. > :19:39.of an economic engine, it is important for citizens and the
:19:40. > :19:48.technology should reflect those things. It was news to me today that
:19:49. > :19:53.Mozilla Firefox is a non-for profit making organisation. I assumed it
:19:54. > :20:00.was like its rivals. Functioning in the same way. How do you operate in
:20:01. > :20:04.that way and stay in the game? The likes of Google making enormous
:20:05. > :20:07.amounts of money, ploughing it back in, making the user experience
:20:08. > :20:15.better and better. How do you stay in the game if you're not making a
:20:16. > :20:19.profit? We are hybrid organisation. Part of being nonprofit means there
:20:20. > :20:24.is a global network of people who assist us. We have a core of
:20:25. > :20:29.employees, a large number of volunteers around the world who are
:20:30. > :20:32.important. On the business side we try to do something similar. Not try
:20:33. > :20:37.to make ourselves the centre of the world. Trying to build a platform
:20:38. > :20:43.where partners, businesses work with a level playing field. How do you
:20:44. > :20:48.struggle to get people on board? People investing, advertising?
:20:49. > :20:57.Actually, the philosophy draws people. People sometimes ask, hiring
:20:58. > :21:02.in silicon valley is hard, can you hire anyone? We hire great talent.
:21:03. > :21:07.Great technology, the mission and the impact and influence. Because of
:21:08. > :21:11.our goals, we're not trying to be the most popular, common, to have
:21:12. > :21:16.the most users to make the most money. We are trying to have people
:21:17. > :21:20.interested in security to meet user experience we provide, enough
:21:21. > :21:25.involvement in marketing and mind share to change the industry. We
:21:26. > :21:29.have been quite effective in that. A big part of what you do is
:21:30. > :21:35.discussion over privacy and data protection over the Internet I am
:21:36. > :21:43.interested in that row between the FBI and Apple. Apple refusing the
:21:44. > :21:47.FBI access to the iPhone of terrorists. Where do you stand on
:21:48. > :21:54.that? First of all, I want to reframe it. It is often framed by
:21:55. > :22:01.privacy against security. Our belief is it is wrong. It is all about
:22:02. > :22:05.security. The encryption on your phone, you're all my ability to keep
:22:06. > :22:13.my financial information or location information away from other people
:22:14. > :22:17.is a security issue. We think it is all a security issue, personal
:22:18. > :22:26.security, national security. We are trading off one former security for
:22:27. > :22:30.another. In our physical lives we are used to trading security for
:22:31. > :22:36.convenience. My security for my kids' security. The security for
:22:37. > :22:46.each one of us is fundamental. Our own ability both as citizens and
:22:47. > :22:50.consumers, if your business is insecure you cannot function in the
:22:51. > :22:52.same way. If we begin dismantling security across-the-board we will
:22:53. > :22:57.all suffer in ways we don't understand. Particularly, more and
:22:58. > :23:04.more data is growing. Everything will be transmitting data. Security
:23:05. > :23:08.is very fundamental. Really lovely to speak to you. Thank you for
:23:09. > :23:17.explaining that. Nice to have you on the programme. Some breaking news
:23:18. > :23:23.about Mitsubishi motors. Admitting to using improper fuel tests since
:23:24. > :23:27.1991. This has been taking place at a news conference in Tokyo. They say
:23:28. > :23:32.they will set up a special committee made up of external experts to
:23:33. > :23:39.investigate the fuel economy manipulation issue. A lot going on
:23:40. > :23:45.there. Since 1991 this falsification has been ongoing. We not expecting
:23:46. > :23:49.in earnings forecasts from Mitsubishi even though it was
:23:50. > :23:55.scheduled. They are not sure there which states will have an impact for
:23:56. > :24:02.them -- in which stage will have an effect on their results. Admitting
:24:03. > :24:07.improper fuel tests since 1991, huge implications for the business. I
:24:08. > :24:11.would imagine that will be our top story tomorrow.
:24:12. > :24:13.What other business stories has the media been
:24:14. > :24:31.The first ten stories were about BHS. You have even got to that. We
:24:32. > :24:36.should mention it. Viewers around the world, it is a big retailer in
:24:37. > :24:42.the UK. A mainstay of the high street for so long. Perhaps no more
:24:43. > :24:47.in administration. The two previous owners of BHS, the current owner and
:24:48. > :24:53.the previous owner, Sir Philip Green are getting a lot of stick for this.
:24:54. > :24:57.This is a global issue, not just the British one. The gap that has been
:24:58. > :25:03.created in the BHS pension fund, over ?500 million. There will be a
:25:04. > :25:07.lot back to see whether or not any impropriety has taken place over the
:25:08. > :25:12.last decade or so in filling that fund. This is a problem affecting so
:25:13. > :25:18.many people. Let's squeeze in one more. Parroting no one hates their
:25:19. > :25:26.job any more? I assume you don't, you are the boss? It is tough if I
:25:27. > :25:32.did. A US survey, 80% of people enjoy and are satisfied by their
:25:33. > :25:36.job. The real inspiration, why you like your job, not necessarily your
:25:37. > :25:43.pay, it is the respect other people give you. That is the conclusion in
:25:44. > :25:48.the report? The most important thing in that report. It strikes me that
:25:49. > :25:58.the bosses have come up with that, it is not the pay! It does help.
:25:59. > :26:01.There will be more business news throughout the day
:26:02. > :26:04.on the BBC Live webpage and on World Business ReportWe'll
:26:05. > :26:17.Very unseasonable, the weather at the moment. Basically another day of
:26:18. > :26:19.sunshine and showers. That is not the full picture. Turning