:00:00. > :00:07.This is Business Live from BBC News with Victoria
:00:08. > :00:13.Europe's largest discount airline - Ryanair - warns that security fears
:00:14. > :00:14.and intense competition could hit profits.
:00:15. > :00:37.Live from London, that's our top story on Monday 23rd May.
:00:38. > :00:39.Despite reporting a 43% increase in profit, the Budget carrier
:00:40. > :00:42.Ryanair has warned of tough times ahead - we'll hear from one of
:00:43. > :00:50.Also in the programme - sowing the seeds of a mega-takeover!
:00:51. > :00:52.German pharma giant Bayer makes a bid for US
:00:53. > :00:55.A potential tie-up would form the world's biggest
:00:56. > :01:06.to date with the markets - where dismal trade data for Japan
:01:07. > :01:08.pulled down the Nikkei - in an otherwise mixed
:01:09. > :01:19.Europe is being pulled down by commodity stocks right
:01:20. > :01:24.across-the-board. Are you a whiz in the kitchen, always mealtime a mess?
:01:25. > :01:29.We will get the inside on a business which is trying to make cooking
:01:30. > :01:32.easier. It comes up with recipes and sends you the exact measurements.
:01:33. > :01:33.But at what cost? We will meet the founder.
:01:34. > :01:36.And as a new guide to elevator etiquette is published -
:01:37. > :01:39.People who take the lift only one floor?
:01:40. > :01:51.Let us know, just use the hashtag BBCBizLive.
:01:52. > :01:55.Hello and a very warm welcome to Business Live.
:01:56. > :01:59.When a 43% uplift in profits is just not enough.
:02:00. > :02:04.Some people and some industries are just too hard to please.
:02:05. > :02:06.Europe's biggest budget airline, Ryanair, announced a big
:02:07. > :02:10.rise in net income - but it fell short of expectations.
:02:11. > :02:14.What's more - that profit growth is going to be cut right back -
:02:15. > :02:19.to just 13% for the coming year, according to the company.
:02:20. > :02:22.There's a big battle going on in the skies over
:02:23. > :02:30.A price war is raging between carriers on specific routes,
:02:31. > :02:33.Many of the traditional airlines are now leaner,
:02:34. > :02:35.after adapting their business models to the challenge set out
:02:36. > :02:41.No longer are you guaranteed a free meal on a full service
:02:42. > :02:47.The big boys have also launched their own
:02:48. > :02:51.These include Air France's Trans-avia, IAG's Vueling
:02:52. > :02:56.So - what does the Finance Officer of Ryanair have
:02:57. > :03:14.As we look into next year, we are looking at about a 13% increase on
:03:15. > :03:18.last year's results. We will have our focus on costs, which is always
:03:19. > :03:24.the case, expecting those to be down 1%. We have a ?200 million saving on
:03:25. > :03:29.our fuel bill. We expect to have backed lower fares to our customers
:03:30. > :03:34.in the next financial year. -- we expect to hand back.
:03:35. > :03:38.John Strickland, airline expert from JLS Consulting is with me.
:03:39. > :03:45.Let's talk about the figures. 43% rise. But the warning is what has
:03:46. > :03:48.got everybody worried. The outlook is tough. It is what about the
:03:49. > :03:55.threat of terrorism and the volatile price of fuel figures. It could have
:03:56. > :03:58.an impact. No doubt. This year has been challenging, particularly in
:03:59. > :04:03.the second half because of the terror attacks in Paris and
:04:04. > :04:07.Brussels. Both markets where Ryanair is a player. As traffic control
:04:08. > :04:12.strikes, as well. Particularly in France, affecting the business.
:04:13. > :04:16.Companies are always cautious at the start of a business year. They
:04:17. > :04:24.expect profits to grow at a better rate. And that assumes no external
:04:25. > :04:29.factors. As for how the business model works from Ryanair. It is
:04:30. > :04:32.about load, getting bums on seats, and they will cut prices to make
:04:33. > :04:40.sure the planes are full. But that is not how the industry works
:04:41. > :04:46.overall. It is critical. One word underpins that. Load is important,
:04:47. > :04:50.but cost is important. Ryanair is zealous on keeping costs down. They
:04:51. > :04:55.benefited last year with lower fuel prices. But it is a detailed
:04:56. > :05:02.exercise day in day out that allows them to achieve the lower unit
:05:03. > :05:05.costs. Anybody can fill planes, but many feel planes and lose money,
:05:06. > :05:10.they are still turning very profitable performances. What is so
:05:11. > :05:17.interesting about the industry is so many other people have tried this
:05:18. > :05:19.model, but few have managed it. Ryanair and EasyJet dominate the
:05:20. > :05:24.market. What are they doing differently? The cost focus is key.
:05:25. > :05:33.Ryanair and EasyJet are well-established. They have fleets
:05:34. > :05:44.which go to hundreds of aircraft. They have aircraft on order.
:05:45. > :05:52.British -- British Airways, KLM, and Air France, have tried to do it with
:05:53. > :05:59.low subsidiaries. But Air France and Lufthansa have been littered with
:06:00. > :06:04.strikes, as well. If anybody wants -- was to ride out the threats, it
:06:05. > :06:13.is Ryanair. But there are other factors, including the volatile fuel
:06:14. > :06:17.price, and the terrorism threats. It is quite a sobering warning, isn't
:06:18. > :06:21.it? The fortunes of the airlines often go hand-in-hand with the
:06:22. > :06:25.fortunes of the wider public. Exactly. And going back to the issue
:06:26. > :06:31.of cost and cash. Ryanair has big cash reserves which they put aside.
:06:32. > :06:36.Which is unusual. Many airlines are weak with cash reserves in difficult
:06:37. > :06:44.times. They need that as a buffer to make sure they have on place to go
:06:45. > :06:48.if they get a revenue hit. -- a place to go. Other times of the
:06:49. > :06:51.strikes they were expecting higher revenues at that time. It is OK to
:06:52. > :06:56.be cautious. They still forecast profits to go up and stop they still
:06:57. > :07:00.have the cost focus. And they can cut fares more, which they can
:07:01. > :07:07.afford to do, because the fuel price will come down again which is a big
:07:08. > :07:11.cost area for them. -- they still forecast profits to go up. Thank you
:07:12. > :07:12.very much. Bayer, the German chemicals
:07:13. > :07:15.conglomerate, has made a formal offer for Monsanto -
:07:16. > :07:16.the US seed company. The transaction would create
:07:17. > :07:19.an industry giant whose products include antibiotics,
:07:20. > :07:20.genetically modified It would have a combined annual
:07:21. > :07:28.revenue of more than $67 billion. Vietnam's VietJet agreed a firm
:07:29. > :07:31.order of 100 Boeing 737s The deal makes it one
:07:32. > :07:35.of the region's fastest The order comes as part
:07:36. > :07:41.of President Obama's official Exports from Japan fell
:07:42. > :07:47.by 10% in April compared It's the seventh
:07:48. > :07:57.consecutive month of falls. The weak trade data
:07:58. > :08:00.is thought to be mainly due to poorer demand from China
:08:01. > :08:18.and other emerging economies. As Victoria touched on the start,
:08:19. > :08:22.the FTSE 100 opening low, lots of uncertainty to kick off the week.
:08:23. > :08:26.The website is dominated by the ongoing debate about the EU
:08:27. > :08:35.referendum. Ryanair has been talking about the risk of Brexit. We have
:08:36. > :08:42.touched on that with our guest, but also more talk about whether it will
:08:43. > :08:46.cost jobs to the UK economy. This time coming from Radio 4's today's
:08:47. > :08:49.programme. 400,000 jobs is the cost, apparently. But this will more than
:08:50. > :08:54.likely be disputed by the other side in the campaigning towards the
:08:55. > :09:01.referendum. That is the Business Secretary
:09:02. > :09:03.saying that today. -- Shadow Business Secretary.
:09:04. > :09:05.Japan's central bank governor has defended his controversial negative
:09:06. > :09:08.interest policy which he first implemented in January this year.
:09:09. > :09:10.He'd signalled that he's willing to cut rates even
:09:11. > :09:14.Haru-Hiko Kuroda was speaking with our Asia Business
:09:15. > :09:16.Correspondent, Karishma Vaswani, on the sidelines of the G7
:09:17. > :09:34.We announced in January and actually implemented this new policy in the
:09:35. > :09:40.middle of February. We are still early May. Although the impact on
:09:41. > :09:51.the financial market is quite clear, and already made, but impact on the
:09:52. > :10:00.economy and prices will take more time. But I don't say that it will
:10:01. > :10:11.take one year, two years, or something like that, it will have a
:10:12. > :10:20.clear impact on the economy soon. If we judge it necessary to have an
:10:21. > :10:24.inflation target we can further ease our monetary policy in
:10:25. > :10:30.three-dimensional 's. Quantity, quality and interest rate. We have
:10:31. > :10:34.still enough room to do so. -- in three dimensions.
:10:35. > :10:36.Asia markets traded mixed on Monday, with Japan's shares dropping
:10:37. > :10:39.amid renewed strength in yen and fresh data showing the country's
:10:40. > :10:43.This is how the session has opened up in Europe -
:10:44. > :10:46.shares are lower in early trading - weighed down by losses
:10:47. > :10:56.While Bayer slumped after making an offer for Monsanto.
:10:57. > :10:59.Now - let's hear from Michelle Fleury in New York about what's
:11:00. > :11:22.The US Federal reserve has long considered its June meeting as a
:11:23. > :11:31.possible time to raise interest rates. But until last week investors
:11:32. > :11:53.thought the probability of that happening was quite low. Some doubt
:11:54. > :12:01.has crept in after several speeches by officials. The release of the
:12:02. > :12:29.minutes from April's meetings. solid economic data. As policymakers
:12:30. > :12:35.ponder whether the US economy is ready to handle an increase, one
:12:36. > :12:38.thing they are looking for is signs of inflation. They may not get the
:12:39. > :12:45.answer to that this week but there answer to that this week but there
:12:46. > :12:48.are three reports which should provide more clues as to the direct
:12:49. > :13:11.travel in the world's largest economy. The key report
:13:12. > :13:48.OK, James, for now, thank you. I know you will come back with us to
:13:49. > :14:01.talk about the papers. We speak to the boss of the business
:14:02. > :14:06.aiming to bring domesticication to a generation that's always on the
:14:07. > :14:13.move. The collapse of BHS will be back
:14:14. > :14:16.in the spotlight today when MPs They want to hear from those
:14:17. > :14:20.who sold off the retailer for just ?1 last year and whether they took
:14:21. > :14:23.enough care when selling the firm. Maureen Hinton is the Global
:14:24. > :14:27.Research Director at Verdict Retail. Maureen, what do the committee
:14:28. > :14:38.hope to find out today? Well, I think that they want to find
:14:39. > :14:44.out is who knew what when and whether there was enough diligence
:14:45. > :14:48.to find out if they had the skills to run the company, but to finance
:14:49. > :14:52.it and turn it around so it was profitable again. Considering Sir
:14:53. > :14:59.Philip Green hadn't been able to do that was a tall order. We saw the
:15:00. > :15:04.deal happen. Sold off for ?1, there were lots of questions about why BHS
:15:05. > :15:08.got into this position and how it could be sold off for ?1. Why are
:15:09. > :15:14.people only asking questions now and not at the time? I well, I think
:15:15. > :15:18.because it went bust a month ago. That's why it suddenly came to
:15:19. > :15:22.prominence with the public, but when it was sold, there was lots of talk
:15:23. > :15:25.about it in the trade about who were these people that bought it and what
:15:26. > :15:29.was going to happen to it? We have seen a ratcheting up in terms of the
:15:30. > :15:32.war of words between all the parties involved in this. It makes you
:15:33. > :15:37.wonder who is telling the truth here?
:15:38. > :15:43.Well, I think the thing is that a Parliamentary Committee have made
:15:44. > :15:46.assumptions primarily there was a lot of talk about the dividend and
:15:47. > :15:51.whether the dividend was taken out when the pension fund was losing
:15:52. > :15:55.money, but the dividend was taken out when the company was profitable
:15:56. > :16:00.and it was only when the company started to lose money that the
:16:01. > :16:06.pension fund went into deficit. So it's really finding out exactly what
:16:07. > :16:11.happened. I think as more and more information comes out, it becomes
:16:12. > :16:16.more clearer. Maureen Hinton, thank you. There is more online if you
:16:17. > :16:24.need to stay up-to-date. The MPs set to question BHS directors and add
:16:25. > :16:29.saOusors. -- advisors. The Business Live team
:16:30. > :16:31.will stay across that story throughout the day as we hear
:16:32. > :16:36.evidence about why it was sold off for ?1. What deals were done? And
:16:37. > :16:40.crucially, the future perhaps for the 11,000 staff at those stores up
:16:41. > :16:48.and down the country and crucially too, their pensions.
:16:49. > :16:50.Ou're watching Business Live - our top story - Europe's biggest
:16:51. > :16:52.Budget airline Ryanair has forecast a slowdown in profit growth.
:16:53. > :16:55.The company says that terror attacks and increased competition
:16:56. > :17:11.And now let's get the inside track on a business aiming
:17:12. > :17:17.Marley Spoon are a global food company who deliver exact amounts
:17:18. > :17:22.of ingredients to people who want to cook at home.
:17:23. > :17:24.They were launched in Germany in 2014 and have since expanded
:17:25. > :17:31.to the UK, the Netherlands, Australia and the US.
:17:32. > :17:37.With the expansion of the West Coast US operations, Marley Spoon will be
:17:38. > :17:40.The group also plans to expand its coverage throughout
:17:41. > :17:43.the east coast of Australia, which it says will bring the service
:17:44. > :17:47.Fabian Siegel, founder and CEO of Marley Spoon joins us now.
:17:48. > :17:53.Good morning to you and welcome to the programme. Thank you for having
:17:54. > :17:56.me. Now, reading your background is really interesting. You're from a
:17:57. > :18:00.tech background and you are seeing this business as a tech business and
:18:01. > :18:11.not a food business, explain how that works. Our company has a DNA.
:18:12. > :18:15.We love food and eating. While in the end we deliver products to
:18:16. > :18:18.customers. There is a lot of software that people don't see when
:18:19. > :18:22.they see the boxes coming to their home, but there is a lot of
:18:23. > :18:25.technology that goes into getting the food to the customer's home
:18:26. > :18:30.straight from the farm to the customer. So forgive the bluntness
:18:31. > :18:37.of the question, but why would I use this? Why would I not order a
:18:38. > :18:41.take-away? Why not just order a take-away? I think there is both. I
:18:42. > :18:46.have a family. I have got three kids and sometimes we want a take-away,
:18:47. > :18:49.do I want to feed pizza to my kids every day? I want to cook and bring
:18:50. > :18:53.something healthy to the table and sit with everybody around the table
:18:54. > :18:56.and have some community. Cooking is something that people just do, but
:18:57. > :19:00.the way that supermarkets serve cooking is poor. I run into the
:19:01. > :19:04.supermarket and I have to pick the stuff and in the end I end up
:19:05. > :19:07.cooking the same stuff. Steak and broccoli every time, the same, you
:19:08. > :19:13.know. I feel we want to have some change and this is something like, I
:19:14. > :19:16.have a bamboo aloo here and I wouldn't cook that otherwise if
:19:17. > :19:20.Marley Spoon didn't bring it to me. I'm going to open this and see if it
:19:21. > :19:24.was something I could do. I want to talk about the cost of this.
:19:25. > :19:27.Because, of course, this is not the cheapest way of cooking.
:19:28. > :19:31.Particularly if you were a large family for example, buying in bulk
:19:32. > :19:36.from a supermarket has got to be more cost effective for a family
:19:37. > :19:39.than using one of these? Well, the interesting thing is cooking with
:19:40. > :19:44.Marley Spoon is not more expensive than the supermarket. Why would that
:19:45. > :19:47.be the case? Well, the thing is supermarkets, they throw away a lot
:19:48. > :19:52.of food. There is more than 100 million tonnes of food thrown away
:19:53. > :19:56.in the European Union. More than 30% of the fresh products thrown out by
:19:57. > :20:02.the supermarket because it is perishable. Who pays for that? You
:20:03. > :20:07.pay for that by the price. When you need celery and you need two sticks,
:20:08. > :20:13.what do you do with the celery? You throw it away. It is not more
:20:14. > :20:18.expensive to cook with Marley Spoon than the supermarket. OK, so the
:20:19. > :20:23.idea is so eliminate food waste and therefore, reduce the costs to the
:20:24. > :20:29.consumer. I'm chucking out less from my fridge? Right. I'm wondering
:20:30. > :20:34.whether where this leaves the supermarket shop, is this an idea of
:20:35. > :20:40.the past that we go to supermarkets or is so far into the future that it
:20:41. > :20:44.is cyber? Customers that use Marley Spoon they replace the supermarket
:20:45. > :20:49.for the cooking part which is 40% of the market is for cooking and 60%
:20:50. > :20:54.other stuff. People that use Marley Spoon, they don't have to go to a
:20:55. > :21:02.supermarket, they still have to buy the milk and the cereal. I think in
:21:03. > :21:06.the end, does it make sense to have prime real estate on the high street
:21:07. > :21:10.just to be there for perishable goods lying around and going to
:21:11. > :21:14.waste? Yes, we replace the supermarkets for the part of cooking
:21:15. > :21:21.and there is online retailers that do you a pantry. This looks great. I
:21:22. > :21:24.would love to have this delivered. It is simple ingredients, how much
:21:25. > :21:28.of them is a mark-up of the service you're offering? The trick here is,
:21:29. > :21:32.the reason why we can offer this for the same price as the supermarket is
:21:33. > :21:36.the supermarkets throw away 30% of their fresh products and they price
:21:37. > :21:42.that in. You pay for that. This is our margin. We can offer this for
:21:43. > :21:50.the same price as the supermarket which starts at ?3.75 per portion,
:21:51. > :21:54.?3.75 per portion for a fresh home cooked meal. I think it is a more
:21:55. > :21:58.sustainable way to cook at home without actually paying more and you
:21:59. > :22:06.get the great recipe card. You have six simple steps. And everybody can
:22:07. > :22:10.cook with these six simple steps a delightful meal. What people say
:22:11. > :22:16.that use Marley Spoon, they try it out once and then specifically
:22:17. > :22:20.customers with structured lives like families and empty nesters, people
:22:21. > :22:24.who have a structured life, they actually really like to have a box
:22:25. > :22:29.coming to their home once a week and the cooking has just been taken care
:22:30. > :22:38.of. It looks very nice. And it smells amazing. We will put that to
:22:39. > :22:40.the test. I will bring that in tomorrow.
:22:41. > :22:45.Thank you. The world's largest insurer, AXA,
:22:46. > :22:47.is to ditch its investments in the tobacco industry,
:22:48. > :22:49.worth nearly $2 billion. It says investing in the sector
:22:50. > :22:52.makes no sense, given that smoking kills some six million
:22:53. > :22:54.people a year. Imogen Foulkes sat down
:22:55. > :22:56.with the firm's new Chief Executive and asked him
:22:57. > :23:00.about the new strategy. We are a large provider
:23:01. > :23:06.of healthcare insurance and what we have seen more and more
:23:07. > :23:09.that obviously chronic diseases We need to invest more
:23:10. > :23:17.into prevention in order to prevent the chronic diseases
:23:18. > :23:30.and we want to really support that and not invest in something
:23:31. > :23:32.which creates more chronic diseases. You are a health insurance,
:23:33. > :23:37.it is more than 50 years since Government officials first
:23:38. > :23:47.warned about the dangers of tobacco? Yeah, but you can only see really
:23:48. > :23:50.now that particular interbuckle that it has turned from a lethal
:23:51. > :23:53.disease into a chronic disease and you see now the effects or now
:23:54. > :23:56.is the right time to do it. Now is also the time
:23:57. > :23:58.where the public awareness Let's see what other
:23:59. > :24:11.stories are being talked James Quinn is back with us. Let's
:24:12. > :24:19.start with this story in the Huffington Post. We have had a
:24:20. > :24:27.couple of tweets. Ryan says his peeve is when people were too much
:24:28. > :24:31.Cologne or perfume. By beggest bugbear at the BBC, we have eight
:24:32. > :24:38.floors and it is people who go one floorment that's what the stairs are
:24:39. > :24:42.for, is it not? I think so. One of the factors was small talk. People
:24:43. > :24:48.you don't know asking you what the weather has been like today or how
:24:49. > :24:53.busy your day is? Isn't it about everybody else listening to your
:24:54. > :24:59.conversation? Different radio stations are playing and you can get
:25:00. > :25:04.into the radio-free list. The danger with that, Radio 1, the lifts are
:25:05. > :25:09.glass and everyone can see you when you're dancing! Let's turn our
:25:10. > :25:13.attention away from lifts to Saudi which could do with a financial
:25:14. > :25:20.lift. I see what you've done there, Ben! So cheesy! Contractors face
:25:21. > :25:24.being paid in IOUs, that's astonishing that one of the world's
:25:25. > :25:39.richest countries could be having to pay contract contractors with an
:25:40. > :25:44.IOU? Saudi facing tough times. An article in the Telegraph pointing
:25:45. > :25:47.out that IOUs are a real likelihood and workers will be paid in those
:25:48. > :25:50.and what the impact will have on the population will be significant.
:25:51. > :25:54.Yeah, one we'll watch closely. Jails, the time is against us today.
:25:55. > :26:01.But that's a really interesting one and one we'll follow closely. James
:26:02. > :26:06.There will be more business news throughout the day
:26:07. > :26:11.on the BBC Live webpage and on World Business Report.
:26:12. > :26:13.There. Hello there. Good morning, it was a dry and bright start