18/05/2016 BBC Business Live


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This is Business Live from BBC News with Ben Thompson and Sally Bundock.


Nigerians take to the streets in protest against government plans


to raise the price of fuel by two-thirds.


Live from London, that's our top story


Nigerian trade unions say they'll ignore a court ruling and strike


as planned after the government ups fuel prices by 67%


Shares in Suzuki slump as it becomes the latest carmaker to be


embroiled in the Japanese fuel testing scandal.


20 restaurants, 23 swimming pools and a slide that his ten stories


high, Aaron is on the list of the biggest cruise ship in the world,


joins us live and he will talk to the boss of real Caribbean. Also,


would you ever consider a cruise holiday? Is your idea of holiday


heaven or holiday hell? Get in touch.


A very unscientific office poll puts it at 50-50. Keep you comments


coming in. We start today in Nigeria -


where unions are expected to strike today - despite a court ruling,


banning any industrial action. The protest comes a week


after the government announced it would raise the price


of petrol by two-thirds Politicians hope cutting fuel


subsidies will help to address But why is one of the largest


oil producers in Africa struggling to meet the demand


of its own population? The global slump in oil prices has


taken its toll on the country's economy and it means the US dollar


is buying a lot more That's all too evident here -


and it means Nigeria's buying power struggled to get the US dollars


needed to import the REFINED fuel the Nigerian government wants


to raise the price from 43 US cents With me now is Spencer Welch, an oil


analyst with IHS, based in London. Another element for Nigeria is a tax


on some of their key oil production areas. Talk us through what is


happening. The government was subsidising the price of fuel and


that was making it an economic to import fuel so there were petrol


shortages, so they have removed the subsidies and that has caused prices


to go up and unhappiness in the country. One of the reasons for


removing the subsidy was they were struggling to pay those because of


lack of revenue, that has become worse in the last month or so with


militant attacks, so the production has been reduced by about 40%, a


significant trap in revenue to the country. Add that the other elements


and you a serious problem. It's mostly military attacks but not


solely, they have been operational problems. Oil makes up 10% of


Nigerian GDP, 50% of government revenue and 90% of export sales so


yes, it's a serious problem for the country. It is a country which is


very reliant on oil. That has been a problem that Nigeria has faced for


many years, while the price was always headed higher, I guess there


was not the incentive for the government to. Diversify. Nigeria


are trying to diversify their economy as are other countries which


are reliant on the price of oil but it takes time, that's their biggest


natural resource. It is starting to increase, but it has a long way to


go. In terms of the applicant what's your thinking? In terms of the


strikes, it's good to take time, the government was forced to remove the


subsidy, they really couldn't afford to carry on doing that, so the


country needs to get used to be higher oil price. In terms of the


military attacks, that is a complex situation, hard to resolve, but they


need to do that. Quickly, cruise ship holiday, holiday heaven or


holiday hell? Heaven. Keep your comments coming in. We will talk


through them later. A bill that would allow the families


of 9/11 victims to sue the Saudi government has passed a key hurdle


in the US Senate. The bill, known as the 'Justice


Against Sponsors of Terrorism Act' now moves to the House


of Representatives. could cause his government


to withdraw US investments. US inflation rose at its fastest


pace in three years last month, The Consumer Price Index


was up 0.4% last month, the biggest one-month rise


since February 2013. A build-up in inflation could see


the Federal Reserve raising interest Japan's economy grew


by 1.7% in the first The better-than-expected growth


was thanks largely to higher government spending which offset


weakness in exports. Analysts are worried


about the outlook for consumer spending, which is critical


to Japan's economy, accounting A rare pear-shaped vivid


pink diamond set a world The "Unique Pink", weighing 15.38


carats and mounted on a ring, It was sold to an Asian private


collector bidding by telephone. I am expecting its arrival next


week! The pink Panther is interested as well. Hello Tulisa, watching us


on a cruise ship, in this is Canal, she says holiday heaven. Lisa says


it certainly is holiday heaven. I never say, holiday heaven if you are


offering to pay. No is the answer. In Asia, Suzuki is the latest


carmaker to be drawn into What more can you tell us? Over the


last couple of minutes we have been seeing reports coming out of Suzuki,


it appears they have raced a statement in which they have


confirmed that there were improper testing methods used in some of


their cars, but they have denied that they cheated when it came to


mini plating the fuel economy data. What that means is that is coming


against the backdrop of Japanese auto-makers being put under the


spotlight, and the scrutiny after Mitsubishi motors recently admitted


it had manipulated its fuel economy data, making some of its vehicles


appear more efficient in terms of fuel than they actually were. As a


result, the Japanese transport Ministry ordered all of the


auto-makers in the country to come up with results or investigate


whether or not they had been compliant with the country, with


Japan's fuel economy laws. These comments are reflecting results of


that investigation, I'm sure there will be more to come stop we will


keep you up-to-date. You have been looking as well at the US tariffs on


steel coming in from China? Yes, 522% is the amount of tariffs that


they have slapped on Chinese steel. This is part of what the US has been


doing over the last couple of months as the US the industry has suffered


from what they say is China's dumping of steel into US markets.


This is not that significant if you look at the amount of money involved


with this particular ruling, only about 200 million dollars worth of


Chinese steel that it affects that it is coming against the backdrop of


the US elections are a hot topic this year. Thank you. A quick look


at the numbers. Japan's stronger-than-expected


growth data and then the U.S. In the UK,


we get the latest unemployment and wages data from the UK economy


hot on the heels of yesterday's weaker than expected


inflation numbers. We'll talk more about that


in a moment, but first let's check in on Wall Street -


Michelle has the details. Curious about the red Federal


reserve things? Investors will get an insight on Wednesday with the


release of minutes from the April policy meeting. Last month the Fed


at the door open for a hike in June. The minutes may help clarify what is


driving their thinking. Wednesday is also a busy day for corporate news.


So far retailers have been struggling to adapt to changing


consumer habits. We will target. One area consumers seem to be spending


more on is fixing up their homes and investors think this will lift


first-quarter profits at a home improvement store. And all the major


tech companies hold conferences, these have become huge events that


routinely see major announcements. Google's three-day event will kick


off. Thanks to Michelle. I believe we have people going to that Google


event. Joining us now is Justin


Urquhart-Stewart, he is the Director Cruise ships? I would rather not. I


prefer proper sailing. When you get wet! You go on those things, you get


vertigo! Less talk about financial markets. A big day for UK data, hot


on the heels of yesterday's inflation data, what are we


expecting? We are close to technically full employment, that


doesn't mean everyone being employed but it'll probably level out, the


figures would we say the same overall but maybe people claiming a


bit more. We have record numbers of people being employed, really good


figures. The inflation figures look low but if you look at the core


figures you will see in the service sector, we do have inflation. So


although interest rates won't be going up soon, Mark Carney is


looking at that and saying, it is there he warned that they will be


more inflation later in the year. When do you think Janet will make a


next move? Looks as though there is more inflation, it as that will be


brought forward and you see the reaction on the market, to come


further forward. It looks like this summer. The US dollar is up but as


every currency in the world, oil prices going up as well. The herd


has moved in one direction. On that basis, be careful. But the line we


should look at, inflation is going up, look at the price of gold, you


can see where the concerns are. Those rates are going to go up


sooner than later so long as the data continues to back it up. The


data changed, the market changed, and she changed. We will see you in


a minute. Aaron will be live


on board the biggest Yes, she may look like a shopping


mall in California but you are right, I am on the world's biggest


cruise ship and we are about to interview the CEO and President of


Royal Caribbean talk about the challenges facing this $40 billion


industry will stop You're with Business


Live from BBC News. Sales at fashion label Burberry


are down 1% over the last year March and pre-tax profits fell


?29m to ?415.6m. Chief Executive


Christopher Bailey has described the trading


conditions as "challenging". He'll also have his eye


on the company's share price - it's down more than a third


in the past 12 months. Nivindya Sharma is a Retail Analyst


at Verdict Retail. just assess these figures, because


there is a lot to take in. Sales down 1%, not hugely promoted on the


face of it but it's the profit figure which is once again suffering


because of a slowdown in China. Yes, I think the slowdown was coming, we


all knew it was going to happen for burglary. There is another problem


is they have had. That put the figures in context, nasty was a


really good year for burglary. -- Burberry. That is where the profit


figures come into play because that is where Burberry has really


struggled and that is the focus they have to put on. If you look at the


recent results, talking about cost efficiencies, how they will improve


processes, cut costs. It is like a wake-up call for the Petar because


let's face it, they are very few years of strong growth. -- a wake-up


Burberry sees better times ahead. Burberry sees better times ahead.


Burberry is a brand that has been exposed more to China than other


brands so it has been hit quite hard. It is doing well in Japan. On


mainland China, it hasn't done badly compared to Hong Kong and Macau. You


have to look at where your profit is, where are your best performing


stores and push the effort there. It does need to focus more in Japan and


look at other areas. Our top story - tensions


are running high in Nigeria. Trade unions say they'll ignore


a court ruling and carry out The government plans to hike


the price of fuel by two thirds in response to a shortage


of petrol. The world's largest cruise ship has


arrived at Southampton ahead It's nearly 1,200 ft long and cost


a billion US dollars to build. It can carry 6,780


guests and 2,100 crew, and took more than two-and-a-half


years to construct. So who better to take it for a spin,


but our very own Aaron?? Show us what is there, because


frankly at the moment it looks like a shopping wall. You took the words


right out of my mouth. It looks like I'm somewhere in California in May


shopping wall but believe it or not I am on the world's largest shopping


-- largest cruise ship. You mentioned all the passenger numbers


and the cost, one and a half billion dollars, four and a half years in


the making, and these ships just get bigger and bigger. 24 million people


this year alone will hop on board and cruise the high seas. It is the


horror -- fastest-growing industry and has been for a long time. The


fastest industry within the travel sector and the fastest-growing in


terms of around the world is my neck of the woods, Australia, New Zealand


and the Pacific region. Let's speak to this CEO of Royal Caribbean.


Mike, you are sitting on, is this a jack? Why is there a jaguar on this


ship? Why not. It's what we do. We like to give people a great time.


Royal Caribbean has five of the biggest ships in the world so now


you have six of them with this one as well. This is a beast, in a nice


way. Why do you keep going bigger and bigger? We have 25 ships in our


feet in total, including six of the largest ships in the world and we


were very proud to take delivery of Harmony of the Seas. We build them


because people want and experience. It is packed with experiences and


innovation. That is why we do it. Can I just interject there. Do


people really want all this on board? You are on see -- at sea with


nearly 9000 people. Do people really want that? What about a 4000


capacity ship? We have 4000 capacity ships but this ship is pretty much


sold out all summer and all winter and that is testimony to the fact


that people want this. You spent 1,000,000 and a half... Sorry, I


meant 1,000,000,000 and a half. I wish it was 1,000,000 and a half.


Where Yuri that money? The life of the ship is 25 years and it is


around ten to 15 years that we start to see investment returned. Correct


me if I am wrong but most of your revenue comes from the Americans,


doesn't it? Are you confident in the global economy that you can still do


that? We had the financial crisis, the downturn, your industry got hit


during that. Are you confident, looking at America, where we are not


seeing double-digit growth? The US economy seems to be in good


strength. The UK is a good market for us as well. Australia, China and


Asia-Pacific is doing really well as well. We feel good about what we are


seeing in terms of demand and certainly in the United States,


demand is really strong. Let's talk about some of the challengers, shall


we? The industry itself doesn't have a great track record when it comes


to being environmentally friendly. I know ships are getting greener but


we were looking at some of the sums and I have got them here. On an


average one-week cruise of about 6000 passengers, it can generate


880,000 litres of raw sewage. A lot of that is dumped at sea, isn't it?


We have incredibly environmentally friendly programmes and I would say


our company is a leader in this space. This ship is the most energy


efficient ship in the industry and we are very proud of that. In terms


of environmental management, we are really focused on stewardship and we


are leaders in terms of managing waste except except. When you think


about it, it's 6000 people go on vacation, wherever they go in the


world, waste is created. You have to be realistic about it. The way we


manage it is far superior to what you would see in other vacation


destinations. I want to speak to you about improving the image. There


were many within your position in the industry he said, what we


haven't done is sold our message to non-cruisers well enough. That is


one of the challenges. Trying to show people how incredible this


vacation experience is. I've seen mentioned at the beginning of this,


the growth of this industry is outstanding. That is because people


have a great vacation. It is a quality experience. It is difficult


to explain how incredible this experience is and that is one of the


challenges in terms of our marketing, communication and word of


mouth. Word of mouth is the most important way of expanding to people


how incredible this is and to try it. I have got to wrap it up but can


I just quickly say, he is the godmother? The godmother, by the


way, is somebody who cracks a howl -- a bottle of champagne against the


hull of the ship. We have not named her yet. It is a secret that we will


announce it in the next three or four weeks. He is a little tip in


its south. I've been doing my sums. A lot of people retire at sea, so


you think about it, when we need help and care and go into a home,


the thousand ?500 is how much it costs on land. -- the thousand ?500


is how much it costs on land. How much would it cost on a ship? ?3000.


Can you ask him, can I be the godmother? We are taking all


applications and I think Sally is great, so she has a great chance.


That's not what you told me before we went to her! ' guys. I am going


to have plenty more throughout the rest of the day. Coming up next, we


will be on Victoria Derbyshire's show. Lots of you sending in


messages saying, holiday heaven if Aaron stayed on board because he's


my reason to get up on Friday morning.


Let's just reintroduced Justin who is back and has been in joining that


with us. -- enjoying that with us. I don't want to go on a shopping


centre that floats around the place. If they had specialist things, like


specialist history things, I would go. Ken in Armitage says, Sally, it


is cold to Newcastle without pressure, I would love to go on a


cruise, but they charge single is 90% cost of two people sharing. It


depends who you are as to how cost-effective it is. Many people


are saying it is too expensive and they afford it. Some of the cabins


are inside and don't even have a portal. Mum not my idea of fun.


Let's look at the news now. HSBC saying Saudi Arabia is in stagnation


and decay. It is being very out there about its views of Saudi


Arabia. It is highlighting quite rightly the issue around Saudi


Arabia. It is a one track -- one trick pony and only has oil. What is


it going to do? It has said it will diversify within four years. As have


other countries, I remember Mr Putin saying that, and it doesn't happen.


When you look at Saudi Arabia, what is their USB going to be? It will be


very difficult to do, particularly with such a young population. That


will cause a lot of problems over the coming years, particularly in a


country which has been universally subsidised over the last few years.


They are used to getting free electricity, free rents, and that


the mind that were difficult. Justin, as always, thank you so


much. Nice to see you. That's it from


Business Live today. There will be more business news


throughout the day on the BBC Live webpage and on World Business


Report. Good morning. What a difference a


Day makes. We have got a lot of rain in the story today. That will have


an effect on the temperatures as well. Some of the rain will be heavy


at times as it continues to push its


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