20/05/2016 BBC Business Live


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The mystery surrounding the disappearance of an EgyptAir


plane over the Mediterranean has deepened, after Greek authorities


dismiss reports of finding debris from the jet.


G7 finance chiefs gather in Japan - but do they really have


And we'll keep you up to date with all the market buzz -


European shares have opened strongly, following modest rises


in Asia overnight and pretty weak trading on Wall Street.


And we'll be looking back at the week on tech


with correspondent Rory Cellan Jones - including some of the latest


developments announced by Google this week.


As G7 finance leaders meeting in Japan prepare for a karaoke


night this Saturday - what songs should they be singing?


Let's begin with the crash of EgyptAir flight MS804.


The search for the missing plane is continuing into its second day -


with Greek, Egyptian, French and UK military units taking


part in the operation near Greece's Karpathos island.


The plane was en route from Paris to Cairo with 66 passengers and crew


Greece said radar showed the Airbus A320 had made two sharp


turns and dropped more than 25,000ft, or 7,620m, before


Egypt says the plane was more likely to have been brought


down by a terrorist act than a technical fault.


Whatever the cause of the disaster - and whether or not it


was terrorism-related - it could not come at a worse time


for Egypt's tourism industry and its wider economy.


Let's have a look at the numbers involved.


Millions of Egyptians rely on tourism to make a living,


and it's a vital source of foreign earnings for the country.


Since the downing of the Russian Metrojet flight


in Sinai last October, tourist arrivals to Egypt


As a result, the Economist Intelligence Unit estimates


that the country's tourism revenue has nearly halved.


The wider industry has also suffered as a result


Since the end of October, shares of travel companies have


Helen Marano is the Director of Government Industry Affairs


at the World Travel Tourism Council.


Good to have you with us, thank you for coming in. Let's begin with the


Egypt, and even before yesterday's tragedy, the tourism industry in


Egypt has been hammered. We had a senior board member who said that


the terrorism, each of's tourism Federation Council, they said that


tourism in the country has not dropped, tourism in the country has


collapsed, it is devastating for the economy? -- Egypt's. It is a heavily


dependent industry for the con me, but before we say anything I would


like to express our heartfelt sympathy to the families -- economy.


There's no question that when we go through this everyone begins to


focus on, my gosh, what will happen for the country now? But for the


families, we know how tragic is. As far as the reception that Egypt has


had, it has been dealt another blow, the tourism minister was intent on


planning a very robust rebirth for the country, and being able to


demonstrate alternative areas is Egypt to go to as well, to feed out


into the rural area, but I think, without question, they have a huge


challenge now. I am wondering, these kinds of drops that we have seen,


like in 2010, the peak, the government was making about $12.5


billion from revenue for Egypt, last it was $7 billion, a big drop. Sharm


El-Sheikh was supposed to use European carriers they were supposed


to return in a week or two. That is. Egypt cannot sustain this continued


tourism battering, surely? No, and they recognise it now, on top of it,


this is devastating to what they have tried to do. One of the issues


is overall, I noticed in your commentary that the global industry


is still strong. When this happens in a concentrated area, people will


still take a moment to consider where they are choosing to go, and


may take alternative destinations. This is what Egypt faces, without


question. But we must remember that we are on 10% of the global economy,


and one in 11 jobs overall, with Egypt being a huge part of that. On


the security of travellers and planes, in Egypt, the environment


that they currently have, with budget airlines, short-haul flights,


the turnaround for planes is increasingly short, is there enough


time to do sufficient checks? It depends on the airport 's


consideration, and airlines understanding. First and foremost,


in their minds and practice and procedures is security. Even in


Paris, they've done a review of all of the personnel after the last


event, and they've been doing as much information sharing, that is


key, the Corporation for information sharing and ahead of any of these


incidents, to identify potential is. Airport security is the ultimate end


point for them to be sure that they are strong. We will be vigilant


indeed. We appreciate your time. Thank you.


Good to talk to you. Let's bring you other business news.


German drug and chemical giant Bayer has confirmed it's launched


a takeover bid for Monsanto, the world's biggest seed company -


that could be worth around $47 billion.


The offer comes amid a wave of consolidation in the industry.


However, a tie-up could raise competition concerns


because of the sheer size of the combined company


and the control they would have over the seeds and sprays business.


The seeds and sprays business, did you ever think that you would say


that?! US car-hailing giant Uber has


entered the race to develop driverless car technology-


the company says it's testing a vehicle on the


streets of Pittsburgh. According to a statement from Uber -


it's fitted a Ford Fusion with radar, laser scanners


and cameras. Lookout for one of those! If you see


it coming... I'm just saying, it's early days, you might want to get


off the street, I'm not sure! Let's talk about finance chiefs.


You love this story! Finance chiefs from the G7 group of


nations are meeting in Japan today. Top of the agenda is likely


to be how they revitalise You are more concerned with the


outfits! I've been slapped on the wrist


because I've said all morning, look at them in the pink kimonos, but


they are not called that, I don't know what are called! That's right,


as you were saying, that they can question is spending versus


austerity, that is bound to keep finance ministers busy over the next


couple of days, they are expected to boost global growth, as the slowdown


in China's growth, the worst is yet to come. Not everyone agrees with


the best way of keeping global recession in Bay and -- at bay, the


yen will be up for discussion after a rally hit the country's exporters,


and worsened a slowdown at home. There is terrorist financing and tax


havens on the agenda, as are the Panama Papers. A debt relief deal


for Greece, and Britain's referendum on its future in the EU. Whether


they are wearing pink, owners or not, they will definitely be singing


the blues! Thank you. At the start of the show, we thought we would ask


you what you thought they would be singing, let us know!


Well let's stay in the region and have a look at the market numbers.


And for the most part Asian shares edged up on Friday


but still on track for a weekly loss, while the dollar is poised


Federal Reserve could raise rates as early as next month -


the dollar strengthening against the yen as a result.


Wall Street fell on Thursday with both the Dow Jones and the S


500 touching roughly two-month lows before paring losses.


Meanwhile here in Europe, shares have opened higher


on the last trading day of the week, tracking those slight gains in Asia.


And Michelle Fleury has the details about what's ahead


US stock markets ended lower on Thursday, as Wall Street adjusted to


the idea the Federal reserve is seriously thinking about raising


interest rates at its next meeting in June. Policymakers only have to


see signs that the economy is continuing to strengthen, and one


indication will come this Friday. The existing home sales report


measures the number of previously owned single family homes, sold in


the last month. Economists are predicting a rise in April, a strong


signal of consumer spending and confidence in the economy. And, in


another sign of how far the gap has fallen out of fashion, clothing


retailers said late on Thursday that it plans to shut all of its old Navy


brand stores in Japan, as well as some banana Republic shops outside


of the US. The company, which reported a lower profit, is


struggling with a prolonged sales slump.


Thank you. We asked what songs the financial leaders should be singing


in Japan, Lee from Oxford says that dire Straits "Money for nothing".


Another says... "Moly, Moni, Moni...!" What do you think? --


moany moany moany. What is Goldman Sachs doing? They


come out and say, don't buy equities all stocks? The chief strategists


has basically said to avoid stocks. After a tumultuous summer, we have


heard from the survey of fund managers, they manage over ?500


trillion of our money, they put a lot more of our money into cash,


that old, overused stock market adult about selling and going away,


that may be relevant. Yesterday, we saw a big sell-off and this morning


we saw a big bounce in London. It seems that there is this old problem


on the horizon again. All of these big cheeses are being bearish on


equities but where does it leave people? Who have savings in the


stock market? They recommended to people that they put money in


corporate bonds. You have to look somewhere for yield, you are not


getting much in the bank at the moment. You are getting nothing. The


US Federal reserve, what day is today? Friday, was it Wednesday or


Tuesday? Wednesday. I am wondering, is the American central Bank people,


the boss... Janet? Are they looking somewhere different to ask which


call of the experts I spoke to said that they expected that raised in


June, they have said no it will be September, now it is June? We got


the minutes on Wednesday night, before that there was a 4% chance of


a rate rise, in June, now the market say it is a 34% chance, the minutes


were basically saying that it may be in June. They are looking at the US


economy, which despite problems in the world, there are still signs of


growth, the problem for the Central bank is that they want to get in


before we see inflation. Richard, you will come back and take


us through markets later. Thank you.


Still to come...we look back on the week in tech


with our correspondent Rory Cellan-Jones.


There's virtual reality from Google and Apple wooing China and India.


You're with Business Live from BBC News.


Eurostar has reported a fall of 3% in passenger numbers for the first 3


The business had hoped 2016 would be a better year for business -


after attacks in Paris and disruption in Calais.


Chief executive Nicolas Petrovic joins us in our


Let's speak to the big boss himself! Good to see you. For your main


destinations, let's be frank, it's not been a great start of the year,


has it? No, it has been tough, we saw a sharp drop in passenger


numbers, but it is OK now, it's difficult with the North American


and Asian markets, the terrorists do not come to Europe as much as they


used to, it is a tough start to the year. -- the tourists.


How much of an impact does the upcoming referendum in the UK have


on your business? We can see that the business market is, I would say,


prudent. There's a lot of uncertainty and a lot of companies


are waiting to see what will happen. We are waiting for the outcomes, so


that we can all move on, uncertainties are never before


corporate is. Deutscher ban. I know you always say


-- Mike smile when I say that. It is just around the corner. Competition


means lower prices. Will you be lowering -- Mike lowering your


affairs? We have just lowered our pricing. It is a very competitive


market. We want to drive more passengers on our trains. We welcome


the competition. There is no problem. The markets will keep


growing. There will be space for everybody. We appreciate your time.


Good luck with everything. The CEO of Eurostar. Packaging rules hurting


tobacco profits in the UK potentially because they are going


to change. Plain packaging. We'll have to see what the impact on


the industry. Our top story: a massive search


is continuing for a second day for an EgyptAir plane that


disappeared over the Mediterranean. And now let's get the inside track


on the big tech stories of the week, including some major announcements


from Google, Apple wooing China and India, and Microsft


dropping the Nokia brand, with our tech correspondent,


Rory Cellan-Jones. Google, a virtual assistant thing?


Every year, Google as a big event. This year they had 7000 people in an


arena outside their headquarters. A lot of it was about taking all that


technology they have got. They have got an amazing amount of artificial


intelligence. They do not make great products out of it. They make all of


their money from advertising. They say they are going to do more. They


are going to have a virtual assistant, which will be used in a


new messaging app. The world needs a messaging app! More interestingly,


they are going to produce a product called Google home, a little speaker


you can chat to, ask its tough and it will tell you stuff. Can you get


this picture looking down? Is very like the Amazon Echo. Amazon have


stolen a march. You can talk to it, ask its tough, it is very clever and


it will answer you back. It is about conversation with machines. Nobody


has done really well yet. Google is in a good position because it has


some of the cleverest artificial intelligence and machine owning


experts on its staff. Aren't they behind the curve compared to some of


their competitors? People also saying they are behind the curve on


virtual reality. That does not necessarily matter if you hit it at


the right moment. Apple has been repeatedly behind the curve getting


into mobile phones, bringing out the iPad ten years after Microsoft. It


is doing it at the right time. Can I talk about Microsoft? The Nokia


deal, two years ago, the most extraordinary deal. Microsoft buys


the Nokia mobile phone business. The outgoing chief executive said it


would be a transformative deal for Microsoft. A year later they wrote


the entire value of the deal off. Now they have sold the rest of the


business. The cheaper phones still quite popular in the developing


world. They are basically wiping Nokia from their story. Meanwhile,


the original Nokia in Finland is licensing its brand to accompany


staff by former Nokia people and getting back into phones. The Nokia


phone could come back? It could indeed. Business School students


will be studying this for years. You are dead right. Let's go back to


Apple. Apple has been wooing China and India. A few weeks ago, worrying


results from Apple after years of extraordinary success. It is now


focusing on where its growth will come from. China and India very


important. Tim Cook has been on a tour through China and India talking


to companies, talking about setting up initiatives. In China he bought a


stake in the rival to Hooper. -- Uber. In India the iPhone is too


expensive. They have to find some other way of tapping into that huge


and growing market. Eight visits so far to China and only one to India.


Always a pleasure, mate. Have a great weekend.


A new building complex in north London is offering a different kind


of accommodation aimed at millennials, mixing small private


The Collective has 550 small bedrooms and communal


areas that include a spa, restaurant, games room,


library and roof-top with plastic igloos -


with most bills included in the rental price.


Is this co-living a good deal, or just another way to exploit young


Dougal Shaw went along for a tour of the building.


For me the personal space is small but it is really well designed. It


is a place where I can sleep and have some private time when I want


to. The communal areas and spaces more than make up for the small


rooms. Richard is back. We are going


through the papers. Start with the Guardian. This is looking at the


EgyptAir Astori. Looking at the wider European travel of our --


operators being impacted by Egypt, Turkey and Tunisia. The flip side,


Spain had a record year, apparently? Thomas Cook had a trading statement


yesterday. They are massively exposed to Turkey, Egypt and


Tunisia. We have seen a huge rise in people going to the Balearic


Islands. Unfortunately for Thomas Cook, they cannot sell enough


holidays to compensate for the loss of holidays in Turkey, where they


had a big business, and Egypt. Their bookings were around 5% down on


where they were. The share prices of all the major carriers are


down. Earlier, you asked Nicholas Petkovic whether all of this might


mean that people turn increasingly to rail travel and alternative means


of getting around? Yes, staying at home. People feel safe in the US.


Another story in the business pages of the daily Telegraph. Booze and


fags really expensive in? Londoners in the top five. This is a survey by


Deutsche bank. Showing how expensive places are. It is difficult when you


have got currencies, to work it out. The annual scene index. How much it


will cost you do have five beers and Juno -- two packs of cigarettes. ?42


in the UK. In London, $135 for dates. I have no idea that is true.


Richard's wife is watching! I know she is watching! If you want a cheap


date out, you need to go to India by the Philippines.


Can we quickly get these tweets in? Fabry 's says, try, try, try. John


Richards says turning Japanese by the vapours. The other one is, I


like to move it, move it. Dire Straits's Telegraph Road,


because it lasts for 40 minutes and they kick it down the road.


Hello there. Good morning. Into -- it is a bright


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