:00:00. > :00:07.This is Business Live from BBC News with Ben Thompson
:00:08. > :00:21.We get unprecedented insight into the world's most valuable firm
:00:22. > :00:23.as the Saudi government prepares to sell a stake in Aramco
:00:24. > :00:40.Live from London, that's our top story on Wednesday, 11th May.
:00:41. > :00:42.The promised share sale would value Saudi Aramco
:00:43. > :00:44.at over $2 trillion - that's four times
:00:45. > :00:51.But at what cost to the world's other oil producers and us?
:00:52. > :01:02.Also in the programme, another twist in the Facebook bias row.
:01:03. > :01:06.Now the US Government wants to know how the tech giant picks news
:01:07. > :01:10.And Japan's benchmark, the Nikkei edged up for a third
:01:11. > :01:12.straight day but nothing to get excited about.
:01:13. > :01:14.And in Europe, after disappointing figures from Germany,
:01:15. > :01:17.France and Italy yesterday, we get an update in the UK this
:01:18. > :01:22.morning on manufacturing and industrial production.
:01:23. > :01:26.And for 200 years Savile Row, England's home of bespoke tailoring,
:01:27. > :01:29.has been dominated by men, but not any longer.
:01:30. > :01:36.Her shop is the first on the prestigious street to be
:01:37. > :01:43.And as the pollsters admit they might not be able to predict
:01:44. > :01:50.the outcome of the UK's Referendum on EU Membership,
:01:51. > :01:52.because it's never been done before, we want to know,
:01:53. > :01:55.Let us know, use the hashtag BBCBizLive.
:01:56. > :02:02.We're starting in Saudi Arabia where the head of Aramco,
:02:03. > :02:06.Saudi Arabia's massive state run oil giant, says production will increase
:02:07. > :02:12.this year ahead of a government plan to sell a stake in the company.
:02:13. > :02:14.Last month, the Saudi Royal family announced a plan to radically
:02:15. > :02:20.Called Vision 2030, the plan is designed to move
:02:21. > :02:23.the country away from its dependence on oil and gas.
:02:24. > :02:28.They currently account for 90% of all the government's income.
:02:29. > :02:31.But the oil prices are down 60% from their peak of $115
:02:32. > :02:37.That's forced the government to dip into their reserves to keep
:02:38. > :02:47.One part of the plan to end this reliance on oil
:02:48. > :02:52.That really is tantamount to flogging the family silver.
:02:53. > :02:56.The company is thought to be worth over $2.5 trillion.
:02:57. > :03:01.The Kingdom wants to sell 5% of it to help pay for other projects.
:03:02. > :03:04.But remember, the Saudi's aren't quitting oil.
:03:05. > :03:07.In fact they're going to pump even more and that
:03:08. > :03:10.could spell big trouble for other oil producers like Venezuela,
:03:11. > :03:17.The President and Chief Executive of Saudi Aramco, Amin Nasser,
:03:18. > :03:19.has been speaking to our Business Editor Simon Jack.
:03:20. > :03:21.They started off by talking about the significance of the country's
:03:22. > :03:36.The vision 2030 is set by the Kingdom is a game changing plan. It
:03:37. > :03:44.is important especially at this time to reduce dependency on oil. To have
:03:45. > :03:51.more sustained economic growth. Create more jobs. So it is, I think,
:03:52. > :03:56.timely and overdue to identify new resources, but rely more on
:03:57. > :04:00.investment for additional streams of revenue for the Kingdom. You say
:04:01. > :04:06.timely. Is that because of the arrival of US shale, is it because
:04:07. > :04:09.we're looking at a future with fewer hydrocarbons, we see electric cars,
:04:10. > :04:13.are you worried that you have got so much of the stuff in the ground that
:04:14. > :04:19.one day you won't be able to sell it, you will have stranded assets?
:04:20. > :04:23.Yes, there are more energy resources coming, electric cars, renewables,
:04:24. > :04:27.but they are starting from a small base. There is still a lot of
:04:28. > :04:35.challenges and however, oil will continue to play a major part in it
:04:36. > :04:40.for the long-term. Privatising industry is important. It is a step
:04:41. > :04:49.in the right direction. Starting with a company like Saudi Aramco.
:04:50. > :04:56.All the systems and processes and procedures will help to a company
:04:57. > :05:00.like Saudi Aramco. It is about time. When you privatise something, you
:05:01. > :05:03.have to publish a prospectus, you have to talk about cost of
:05:04. > :05:08.production and give details about the quality of your reserves. All of
:05:09. > :05:17.those things. Are you ready for that level of transparency?
:05:18. > :05:19.We have been always when we talked about transparency. We have been
:05:20. > :05:23.transparent with one shareholder, which is the Government. We have
:05:24. > :05:27.been transparent with our board. When we are listed and there are
:05:28. > :05:31.many shareholders, we will be sharing data like any company is
:05:32. > :05:36.doing, quarterly, sharing the results and data. When we share it,
:05:37. > :05:40.it will be a pleasant surprise for the rest of the industry. Lots of
:05:41. > :05:43.people have wondered about Saudi's behaviour in the oil market and
:05:44. > :05:47.there is lots of conspiracy theories, you are trying to put the
:05:48. > :05:52.US out of business, or you're helping the US put Russia out of
:05:53. > :05:56.business or you're trying to handicap Iran or it is because the
:05:57. > :06:01.kingdom are running out of answer? You mean in terms of unceasing our
:06:02. > :06:06.productions? Yes. No, as I said earlier, we are trying to call on
:06:07. > :06:12.Saudi Aramco when it comes to production. It is commercial. Aramco
:06:13. > :06:17.has always dealt on a commercial basis based on the guidance and the
:06:18. > :06:23.terms of production that we have seen sfr from the minister of energy
:06:24. > :06:27.and industry and mineral resources. Simon Jack speaking to the new Chief
:06:28. > :06:29.Executive of Aramco. There you go. We will have more on that if we get
:06:30. > :06:31.it. A US Senate committee has launched
:06:32. > :06:37.an inquiry into how social media giant Facebook picks the stories
:06:38. > :06:39.for it's trending news list. The announcement comes only hours
:06:40. > :06:44.after Facebook was forced to defended itself over
:06:45. > :06:53.claims its Trending Topics. The stories that appear on the left
:06:54. > :06:56.hand side of their website, suppressed stories supporting
:06:57. > :06:57.conservative political viewpoints. Despite last minute attempts
:06:58. > :07:00.to derail the process, the Brazilian senate is due to vote
:07:01. > :07:03.later on Tuesday on the impeachment of President Dilma
:07:04. > :07:08.Rousseff from office. Ms Rousseff is accused of breaking
:07:09. > :07:11.the country's budget She could be suspended for up to 180
:07:12. > :07:31.days if lawmakers vote Budweiser beer brands to re-brand
:07:32. > :07:34.its cans for the summer. The beer will have its name changed to
:07:35. > :07:40.America! Between the months of May and September. Budweiser are hoping
:07:41. > :07:44.to capture the patriotic spirit of Americanses focussed on events like
:07:45. > :07:51.the US election and the summer Olympics. Want a can of America? I'm
:07:52. > :07:55.not sure about that one! Already a lot of comment online about whether
:07:56. > :07:58.you are a fan of that beer. Some suggesting it doesn't really taste
:07:59. > :08:05.of much and that would also suggest that America is similar!
:08:06. > :08:12.Let's talk about Disney, the company that makes dreams a reality or not.
:08:13. > :08:16.Not for investors, it seems. Disney posted a profit, $2.1 billion. It
:08:17. > :08:20.was certainly, I think, nearly double the same period last year,
:08:21. > :08:28.but why didn't it please? Because investors are a fickle lot! This is
:08:29. > :08:34.a company that owns Star Wars. Yes. And yet investors are disappointed
:08:35. > :08:38.with happened. That's why expectation is a difficult thing.
:08:39. > :08:40.Markets expect one thing and if you don't meet it, your shares fall. Ask
:08:41. > :08:43.Apple! More bad news for the car industry
:08:44. > :08:46.in Asia this morning. Profits are down at Toyota
:08:47. > :08:48.and losses for Takata mount after that massive recall of faulty
:08:49. > :08:51.airbags around the world. Sharanjit Leyl is following these
:08:52. > :09:03.stories in Singapore for us. I bet this is going down like a
:09:04. > :09:11.tonne of bricks over there? You could say that, Aaron. It is
:09:12. > :09:19.worse for the ought owe car making. Toyota, its profits were driven down
:09:20. > :09:26.by the stronger Japanese yen. They are saying net income may drop 35%
:09:27. > :09:31.to lower than expected $13.8 billion for this fiscal year ending in
:09:32. > :09:34.March. The Japanese yen has strengthened for than 10% against
:09:35. > :09:39.the dollar and the car maker suffered production stoppages. You
:09:40. > :09:44.will recall that followed the deadly earthquakes in south-western Japan
:09:45. > :09:53.last month. As growth starts to stall, the ought owe maker is racing
:09:54. > :09:57.to keep ahead of Volkswagen. As for Takarta, it posted its third annual
:09:58. > :10:01.loss on the mounting costs of recalls of those potentially
:10:02. > :10:07.dangerous airbag inflators. Their net loss came in at $120 million.
:10:08. > :10:12.Those inflators have been linked to 11 deaths and more than 100 injuries
:10:13. > :10:16.and the US Transport Authority last week announced a recall of up to 40
:10:17. > :10:20.million more of the company's airbags on top of the more than 50
:10:21. > :10:26.million that have already been recalled globally.
:10:27. > :10:32.Thank you very much. A look at the numbers for you. Not a
:10:33. > :10:37.lot to get excited about. The Nikkei ending up slightly. It was its third
:10:38. > :10:41.straight day after a rough ride for the Nikkei of late. I want to show
:10:42. > :10:43.you what is happening in Europe. Remember we get industrial
:10:44. > :10:47.production and manufacturing figures this morning. Hot on the heels of
:10:48. > :10:51.disappointing figures yesterday for Italy, Germany and France. They
:10:52. > :10:54.didn't meet expectations. Markets fell as a result. You can see that's
:10:55. > :11:01.really reflected in how Europe opened this morning and we'll get
:11:02. > :11:03.the figure ins a little while. Sue is with us to talk us through
:11:04. > :11:08.the numbers. Samira has the details about what's
:11:09. > :11:16.ahead on Wall Street Today. When American retailers report
:11:17. > :11:21.earnings everyone from economists to investors pay attention. And first
:11:22. > :11:24.up in this earning season is the department store Maisie's and
:11:25. > :11:29.tourists were not flocking to its flagship location here in New York
:11:30. > :11:36.and that will hit the results for the quarter and making matters more
:11:37. > :11:42.difficult is spending on a parallel is down. The big question is what
:11:43. > :11:47.does this mean for the US economy? Well, we'll get a better idea of
:11:48. > :11:51.that on Friday when April retail sales number are released as well as
:11:52. > :12:00.consumer sentiment. So how Americans are feeling about the state of the
:12:01. > :12:02.US economy. Sue Noffke, UK equity fund manager
:12:03. > :12:11.at Schroders. Can I start with a two part question
:12:12. > :12:16.on Aramco, the Saudi company, I mean they only want to sell 5% of it. But
:12:17. > :12:21.the sums are eye watering. But this announcement that they are going to
:12:22. > :12:25.continue increasing production in oil will just surely suppress oil
:12:26. > :12:30.prices? It is a surprise that you're trying to market selling a large
:12:31. > :12:34.amount of shares internationally on the basis that you are going to
:12:35. > :12:40.continue to potentially ramp up production. Whereas, the oil price
:12:41. > :12:45.has apparently bottomed earlier this year on the expectation that people
:12:46. > :12:48.will stop producing quite so much and that's demand and supply will
:12:49. > :12:54.come into balance. So this could throw a spanner in the works to that
:12:55. > :12:58.recovery in the oil price. Having said that, oil companies are valued
:12:59. > :13:04.on their reserves and their production efficiency. And Saudi is
:13:05. > :13:07.very well placed on both reserves and the cheapness of prodaoution
:13:08. > :13:11.those. Who will be interested in these shares? It strikes me there is
:13:12. > :13:15.two things. One, it is unprecedented that Saudi is opening up a business
:13:16. > :13:19.in this way. So all of that is untried and untested and also, there
:13:20. > :13:23.is probably a level of scepticism about quite how much they are
:13:24. > :13:26.committed to this process. The market is driving a need for it, but
:13:27. > :13:30.whether they are really behind the big plan to open up the company and
:13:31. > :13:34.you think maybe if oil prices pick up again, they will reign back on
:13:35. > :13:39.that a little? You've got 5% initially. That could either be a
:13:40. > :13:46.large overhang of more shares to come further down the timeline or
:13:47. > :13:50.you might just end up being a very small investor in a small minority
:13:51. > :13:55.stake... With very little power? Indeed. And that's going to be a
:13:56. > :13:58.feature along with governance for a lot of international investors. You
:13:59. > :14:00.see how time flies. You're going to come back and take us through the
:14:01. > :14:03.papers? I am. For 200 years Savile Row has
:14:04. > :14:08.been dominated by men. Her shop is the first
:14:09. > :14:13.on the prestigious street to be You're with Business
:14:14. > :14:20.Live from BBC News. We've had an update
:14:21. > :14:28.from the world's largest travel Our Business Correspondent Tanya
:14:29. > :14:47.Beckett is in the newsroom for us. Turkey is a big issue for TUI.
:14:48. > :14:52.Turkey visits are down by 40%. Spain is supposed to have a record year in
:14:53. > :14:56.number of visitors this year? This is a company that sells 750,000
:14:57. > :15:02.holidays a year. It is the world's largest. It is an anglo German firm.
:15:03. > :15:05.It is looking to off load some brands, I will come back to that.
:15:06. > :15:08.There are complex issues hitting the travel market, but it is talking
:15:09. > :15:12.about revenues going up strongly this year and its share price has
:15:13. > :15:16.been doing better on the back of that expectation. But remember, a
:15:17. > :15:18.lot of moves at the moment in the foreign exchange markets because of
:15:19. > :15:23.the peculiar set-up we have with interest rates at the moment.
:15:24. > :15:27.Particularly in Europe for example and you know, the euro-pound rate is
:15:28. > :15:34.very strong for the euro at the moment. Looking elsewhere, we're
:15:35. > :15:38.seeing a very difficult dollar-yen situation as well. There are also
:15:39. > :15:43.security concerns. Turkey being one of them. We've also had concerns in
:15:44. > :15:47.Egypt and of course, concerns in more recently in Brussels as well
:15:48. > :15:52.with the bombings there. So that's affecting the picture, but it also
:15:53. > :15:59.has off loaded hotel beds which is its online hotel bed booking service
:16:00. > :16:04.and it is looking to off line its specialist division, many, many
:16:05. > :16:10.brand names under that, that is an effort to boost the balance sheet.
:16:11. > :16:14.This is a question of narrowing its losses, 251 million wds which is a
:16:15. > :16:17.narrowing of its loss from this time last year. Nonetheless it is a loss
:16:18. > :16:19.and it has to do something about that if it is to keep the balance
:16:20. > :16:29.sheet strong. Thank you very much. Staying with
:16:30. > :16:34.travel. Just want to take you to the Business Live page, they have been
:16:35. > :16:37.discussing the obligations of Brexit on European travel. We have talked
:16:38. > :16:42.about it here before, because maybe Judy free European flights would
:16:43. > :16:45.come in, cheap cigarettes, cheap booze, but not quite so good for
:16:46. > :16:50.other things, because it says protection of the EU has been good
:16:51. > :16:54.for compensation for flights, things like that. The pros and cons, we
:16:55. > :16:59.have been assessing those. You're watching Business Live -
:17:00. > :17:13.our top story... The Chief Executive of Aramco says
:17:14. > :17:18.oil production will increase this year had of the government's
:17:19. > :17:21.preparation to sell a 5% stake in the company. When it does list it
:17:22. > :17:31.will be four times the value of Apple. 5% is about 120 billion?
:17:32. > :17:35.Something like that. It is a good job we are good with maths in this.
:17:36. > :17:39.Think of fine tailoring, you might imagine Savile Row.
:17:40. > :17:43.In London's West End, it's been the home to top hats
:17:44. > :17:53.For the first time in its history, the iconic street has a shop owned
:17:54. > :17:58.Kathryn Sargent opened her shop at 37, Savile Row
:17:59. > :18:00.just a few weeks ago, and dresses royalty,
:18:01. > :18:12.She trained on Savile Row itself, where she spent 15 years
:18:13. > :18:15.working at Gieves Hawkes, rising through the ranks to become
:18:16. > :18:19.As well as serving customers from her store in Savile Row shop,
:18:20. > :18:21.Kathryn also has clients in the United States.
:18:22. > :18:35.Kathryn, welcome. Thanks for coming in. Thanks bringing these in. It has
:18:36. > :18:43.been a heck of a journey, one can imagine. You started, graduated and
:18:44. > :18:45.went straight to Saborit. I just left home, it has been a
:18:46. > :18:55.roller-coaster but a great career so far. What do you love about
:18:56. > :18:58.tailoring, as a layman? It is handcrafted saddle Road tailoring,
:18:59. > :19:07.you are making something from the most finest cloth by hand to fit
:19:08. > :19:11.people, and they are just exquisite garments -- Savile Row. There is so
:19:12. > :19:15.much value in what we do. You have got to train a long time to be able
:19:16. > :19:21.to create these garments, but they are of quality. It is something I am
:19:22. > :19:27.very proud to represent Savile Row in, the history of tailoring. Savile
:19:28. > :19:32.Row itself, it is just full of amazing history. Let's just talk a
:19:33. > :19:37.little bit about that history, 1846, the first Taylor established then on
:19:38. > :19:40.Savile Row, and it really did create the iconic street, it is where
:19:41. > :19:44.everyone goes, or where everyone would like to go. LAUGHTER
:19:45. > :19:49.Tell us what it is like opening that shop then in what is a very male
:19:50. > :19:53.dominated industry. It just feels like a culmination of the hard work
:19:54. > :20:06.over the last 20 years. I trained as a graduate, and worked my way up in
:20:07. > :20:10.one of the larger houses, Gieves Hawkes in Savile Row. It is about
:20:11. > :20:22.being a great Taylor and part of the history of the industry. It is
:20:23. > :20:28.fantastic. It was probably hard enough slog being a master cutter
:20:29. > :20:34.and a master tailor, but on Savile Row, again being male naked over the
:20:35. > :20:39.200 year history, worthy blokes and obstacle, did they give you a tough
:20:40. > :20:41.time? It is quite inclusive actually. You have got to earn the
:20:42. > :20:48.respect by doing the training process. I was worried when I left
:20:49. > :20:54.to start my own business that it might not go down so well but it has
:20:55. > :20:57.been really welcomed. I am part of the industry and the community. We
:20:58. > :21:07.all know each other and it is very supportive. Do you find people are
:21:08. > :21:15.surprised that they book a tailoring appointment and you turn up? It used
:21:16. > :21:20.to happen when I was a junior. You want to deliver great things for
:21:21. > :21:25.them. But it is just about winning confidence. There is an element of
:21:26. > :21:34.surprise when US Customs, I put on the form, what is your career?
:21:35. > :21:37.Taylor, are you sure? What goes into something like this? You cut the
:21:38. > :21:44.cloth, you have thousands of cloth, you can do any design. I then have a
:21:45. > :21:48.house style, I work with the individual to flatter them, their
:21:49. > :21:53.lifestyle. We construct a fitting and we do a process of two or three
:21:54. > :21:58.before we finish the garment, that is a classic man's 's miss it. The
:21:59. > :22:04.pockets aren't in place yet. Howard will it cost? It is an investment
:22:05. > :22:13.piece, a bespoke suit should last you ten, 15 years, something like
:22:14. > :22:20.that would start from around ?4200. $6,000. OK. That is a ladies's
:22:21. > :22:27.finished suit. Ben, you can have that one. We appreciate your time,
:22:28. > :22:34.Katherine, thank you very much, we appreciate your time.
:22:35. > :22:38.Heathrow Airport has announced plans to ban night flights in an attempt
:22:39. > :22:40.to boost its bid to build a third runway.
:22:41. > :22:43.It's part of a package designed to reduce the impact of expansion
:22:44. > :22:45.on the local community and the environment.
:22:46. > :22:47.Heathrow boss John Holland Kaye has been speaking to the
:22:48. > :22:58.Well, we want to make sure that the Prime Minister is able, when he's
:22:59. > :23:02.ready, to get on the right choice to expand Heathrow. This is what will
:23:03. > :23:06.secure the future for the British economy. Heathrow has been a
:23:07. > :23:09.cornerstone for the British economy for 70 years and we need to make
:23:10. > :23:12.sure we secure our trading links through Heathrow for the next 70
:23:13. > :23:15.years. We don't want to be the generation that pulls the ladder are
:23:16. > :23:19.behind us, and that is why it is so important to the UK that we get on
:23:20. > :23:24.and expand Heathrow. Today I wanted to clear the decks, make it clear
:23:25. > :23:29.for the Prime Minister to get on, when he's ready, to expand Heathrow.
:23:30. > :23:33.Sue is back with us to talk this through some of the paper stories
:23:34. > :23:38.that caught UI. Let's start with that story we headlined about
:23:39. > :23:42.Facebook, under fire for allegedly filtering results, and trying to
:23:43. > :23:48.pretend certain things are trending that aren't. I think this is part of
:23:49. > :23:53.a wider scrutiny of some of these new businesses, a lot of internet, a
:23:54. > :23:59.lot of customer data, and just how much transparency is there, how much
:24:00. > :24:03.manipulation of our data that is purporting to be something that
:24:04. > :24:07.maybe it is not. They could be a big point here, because they are saying
:24:08. > :24:13.some of this Facebook staff are the gatekeepers to what goes out to 1.6
:24:14. > :24:17.billion users, and if they are again, allegedly, saying we don't
:24:18. > :24:22.like that political... Yes, if they are putting a spin on, that is quite
:24:23. > :24:28.significant, and if it is not what it actually is, in terms of the
:24:29. > :24:33.trends. But the way that you touched on comment new media is shaping the
:24:34. > :24:36.way people consume news, traditionally you might have gone to
:24:37. > :24:40.a newspaper and looked at the headlines and now it's about what
:24:41. > :24:45.people are reading. It gets pushed up the rankings. That is the issue
:24:46. > :24:49.here. It is, and whether their biases and how do you correct those
:24:50. > :24:56.biases, and who should be correcting them? Amazon, you like this? Purely
:24:57. > :25:03.because Amazon is getting into bed, so to speak, with Morrisons, the UK
:25:04. > :25:09.supermarket, to sell groceries. It will shake up the way the market
:25:10. > :25:13.works. This is their test, and they got it a bit wrong because they have
:25:14. > :25:16.listed things were rather interesting prices. And different
:25:17. > :25:21.pictures compared to the products they are talking about. I think
:25:22. > :25:27.there is vast interest in what Amazon is doing, particularly here
:25:28. > :25:32.in the UK. It is a competitive grocery space. We have had
:25:33. > :25:40.disruption from discounters, now we have anticipated disruption from
:25:41. > :25:45.Amazon. And Amazon are well set up to do grocery staples, but things
:25:46. > :25:50.you have found that have long life shelf life rather than fresh. For
:25:51. > :25:54.fresh, they have linked up with a Morrisons. This was a test. They
:25:55. > :25:57.have got the test prices that were leaked, everyone has jumped on them,
:25:58. > :26:03.but there wasn't much market information to be gleaned. More than
:26:04. > :26:07.a hundred bucks for four pints of milk, I think they got it wrong!
:26:08. > :26:13.Thank you for joining us. We will see you soon.
:26:14. > :26:18.Parts of Scotland once again may have started with the sunshine
:26:19. > :26:25.today, further south a case of heavy rain, some fog, even minor flooding.
:26:26. > :26:27.South-west England and South Wales, the more persistent rain easing