:00:00. > :00:07.This is Business Live from BBC News with Ben Thompson
:00:08. > :00:13.It's flying high, but are there be headwinds on the horizon?
:00:14. > :00:14.Ryanjet says profits are up,
:00:15. > :00:16.but warns of more Brexit uncertainty.
:00:17. > :00:37.Live from London, that's our top story on the 25th July.
:00:38. > :00:40.Ryanair releases their latest results, but the shadow of Brexit
:00:41. > :00:42.looms large over their plans for the future.
:00:43. > :00:45.We'll be speaking to the company's top man money man in just a moment.
:00:46. > :00:47.Also in the programme, what goes up, must come down.
:00:48. > :00:50.Shares in Nintendo, the company behind Pokemon GO tumbles in Tokyo,
:00:51. > :00:53.we're going to find out why investors have cooled on last week's
:00:54. > :01:07.This is what the markets are doing this morning. Optimism on the
:01:08. > :01:09.European markets, after a good session last week. In Asia and the
:01:10. > :01:12.US. We have the details. Augmented reality technology has
:01:13. > :01:15.already swept the globe thanks to the smash-hit smartphone game
:01:16. > :01:18.Pokemon Go. So we'll get the Inside Track on how
:01:19. > :01:21.real-time imaging is revolutionising And as one of the UK's
:01:22. > :01:26.biggest newspapers slumps to a record loss of ?180m,
:01:27. > :01:29.we want to know, do Let us know, just use
:01:30. > :01:50.the hashtag #BBCBizLive. It's a good job it's written in
:01:51. > :01:54.about five places on the screen. The world's second largest budget
:01:55. > :02:01.airline, Ryanair says the UK's decision to leave the EU means
:02:02. > :02:04.that it will "pivot" growth away from the country's airports
:02:05. > :02:06.and instead focus on growing The company made the comments as it
:02:07. > :02:10.announced its latest numbers, a modest a 4% rise in profits
:02:11. > :02:19.for the first quarter of the financial year,
:02:20. > :02:21.bringing in Euro 256 million, But the company insists that it's
:02:22. > :02:26.on track for its best ever year despite the uncertainty surrounding
:02:27. > :02:28.the Uk's vote to leave the European Union, but warned
:02:29. > :02:32.there could be further implications if the UK is unable
:02:33. > :02:34.to negotiate access The referendum result has seen
:02:35. > :02:39.a 10% drop in the value Although Ryanair is an Irish
:02:40. > :02:46.airline, it still makes a lot of its money
:02:47. > :02:49.in pounds and they just aren't worth It's not just the exchange rate
:02:50. > :02:52.that's been affected British airlines still benefit
:02:53. > :02:55.from the EU's single aviation market, giving them
:02:56. > :02:57.unrestricted access to cities The referendum could potentially
:02:58. > :03:05.make it more difficult for companies like Ryanair to fly to Europe
:03:06. > :03:15.from its London-based airports. Neil Sorahan, Ryanair's Chief
:03:16. > :03:27.Financial Officer, joins us now. The big-money man. Good to have you
:03:28. > :03:30.with us. How are you? I am fine. I will let you do some positive at the
:03:31. > :03:37.beginning, some have been telling us this morning, and I know for a fact,
:03:38. > :03:42.Ryanair have a fairly decent, flexible model. The beauty is that
:03:43. > :03:47.if you have a downturn in one area, you can up sticks, move those planes
:03:48. > :03:50.to another area that is doing relatively better, right? Yeah, we
:03:51. > :03:55.operate in 33 different country with just over 350 aircraft in the fleet.
:03:56. > :03:58.The beauty of the model is that we have a low-cost model, more airports
:03:59. > :04:05.searching for our business and aircraft available. We have a lot of
:04:06. > :04:09.flexibility built into the model. There is the positive, flexible
:04:10. > :04:14.business model. I am not too sure how flexible it is going to be when
:04:15. > :04:20.the UK is out of the EU. Something like almost 40% of your flights, I
:04:21. > :04:25.can imagine close to nearly half of your revenue, involves flights in
:04:26. > :04:34.and out of the UK. I would correct you, 28% of our revenue, 21% of our
:04:35. > :04:39.cause offsetting that. It is not as big a financial impact. 28%. Let's
:04:40. > :04:44.rounded up, 30%, that is a big chunk. Almost 40% of your flights,
:04:45. > :04:48.not your revenue but 40% of your flights in and out of the UK, that
:04:49. > :04:54.will be a bit tricky once the UK is out of the EU. No, if you look at
:04:55. > :04:57.it, Aaron, if they leave the EU and they have two negotiate bilaterals
:04:58. > :05:03.with the EU negotiation to travel rights, what would be impacted would
:05:04. > :05:05.be three domestic routes in the UK stopped 1800 routes in the entire
:05:06. > :05:09.network in three of those would be under question. At that stage we
:05:10. > :05:13.would have to decide whether we keep them operating or not or whether we
:05:14. > :05:18.would just get a UK air operated certificate. In the context of 1800
:05:19. > :05:22.routes the network, not hugely significant. UK-based airlines, it
:05:23. > :05:27.does become a bigger issue for them. In as far as a lot of their traffic
:05:28. > :05:30.would be into the EU. Unless the correct bilaterals are put in place,
:05:31. > :05:35.to makes it difficult for them to travel around in Europe. What I am
:05:36. > :05:38.interested in is this concept of pivoting away as we talked about
:05:39. > :05:44.earlier. What it means on the ground. Does it mean less investment
:05:45. > :05:48.in the UK? Yes, as we take delivery of 52 aircraft, they are issuing
:05:49. > :05:52.another 50 next year. The growth rate we would have planned for the
:05:53. > :05:56.UK will lowdown, somewhat. This winter, we will start moving some
:05:57. > :06:00.capacity out of Stansted. We are already a couple of years ahead of
:06:01. > :06:03.our long-term deal with them. While we don't plan to close any routes
:06:04. > :06:07.this winter, we will reduce frequencies on a number of different
:06:08. > :06:16.routes out of Stansted over the winter. Future growth and future
:06:17. > :06:22.revenue growth, bottoms on seats, it is a good number. Other airlines
:06:23. > :06:26.would like it. 95%. That makes it very difficult to grow, you don't
:06:27. > :06:32.have more seats on the plains to sell. Where do you look at growing
:06:33. > :06:36.future revenue? We have a lot of opportunities around Europe. As you
:06:37. > :06:41.said, we have an eye watering load factor, 95% on aircraft in the last
:06:42. > :06:46.quarter. We will consider new to see those load factors being maintained
:06:47. > :06:53.throughout the year, 93% load factor for the year. 2019, we start taking
:06:54. > :06:59.delivery of the Boeing 737, the game changes, as we call them, 4% more
:07:00. > :07:03.capacity, eight extra seats. We can spread our cost of a more passengers
:07:04. > :07:08.and enhance ancillary opportunities. No short places to grow around here.
:07:09. > :07:10.We appreciate your time, thank you very much for joining us. We will
:07:11. > :07:14.talk to you sometime soon. Bank you. Reports say US telecoms giant
:07:15. > :07:19.Verizon is to buy Yahoo's search and advertising operations
:07:20. > :07:20.for $5 billion. Yahoo announced in February
:07:21. > :07:22.it was looking at "strategic alternatives" for its core internet
:07:23. > :07:25.business, but Verizon has declined A formal announcement is expected
:07:26. > :07:34.later today before US markets open China's Huawei has reported a
:07:35. > :07:44.40% jump in first half sales and says it's confident the growth
:07:45. > :07:47.will continue in the The telecoms equipment maker is also
:07:48. > :07:50.China's biggest smartphone maker. But, the company is currently
:07:51. > :07:53.being sued by rival Samsung, which accuses it of
:07:54. > :07:56.copying its designs. Who isn't suing everybody in that
:07:57. > :08:05.industry? You said it so well. European Commission President
:08:06. > :08:07.Jean-Claude Juncker has poured cold water on any ideas of a quick
:08:08. > :08:10.accession of Turkey to the EU. Speaking earlier on French
:08:11. > :08:12.television, Juncker said that Turkey is in no situation to become
:08:13. > :08:15.a member of the EU any time soon. He added a stern warning,
:08:16. > :08:17.saying that if Turkey re-introduced the death penalty,
:08:18. > :08:20.accession talks would be halted Shares in Nintendo have fallen
:08:21. > :08:34.sharply after the Japanese gaming giant said Pokemon Go's success
:08:35. > :08:37.would have a limited impact At one point it was down 18% in
:08:38. > :08:52.Tokyo. Our Business Correspondent, Tim
:08:53. > :09:00.McDonald is in Singapore with more. I'm getting caught under the desk.
:09:01. > :09:04.But to see you. I don't know if they had to make this statement, we had
:09:05. > :09:11.to say. Did they not think this has got legs to carry it further? It's
:09:12. > :09:15.not a matter of Pokemon not being a huge global hit and phenomenon, it
:09:16. > :09:19.is the investors worried they won't see much money from it. Nintendo
:09:20. > :09:24.itself is a bit more removed from Pokemon and perhaps many investors
:09:25. > :09:30.realise. The game is a collaboration between the Pokemon company which
:09:31. > :09:34.owns the licensing rights, it is Pickachu and the US game studio with
:09:35. > :09:38.Nintendo holding it states in those companies. Nintendo reports its
:09:39. > :09:44.first quarter is this week and says the game will not have that much of
:09:45. > :09:48.an impact. Investors are not happy. Nintendo stocks plummeted almost 18%
:09:49. > :09:52.in trading today. Lowest since 1990. It needs to be kept in perspective.
:09:53. > :09:57.Even with today's sell-off, the shares are still up about 60% in the
:09:58. > :10:04.game launched in the US, Australia and New Zealand on July sixth. Thank
:10:05. > :10:08.you. It's my favourite joke, how would you get Pikachu on a bus? You
:10:09. > :10:10.Pokemon. Japan's Nikkei paring back its early
:10:11. > :10:13.gains and ended flat at the start of the week as investors cashed
:10:14. > :10:17.in with abit of profit taking. That is why the numbers in Asia are
:10:18. > :10:20.down slightly. Hopes that the Bank of Japan
:10:21. > :10:23.will unveil more stimulus later this week also boosted the numbers
:10:24. > :10:27.earlier this week. For markets in Europe,
:10:28. > :10:29.they're coming off four consecutive weeks of decent gains,
:10:30. > :10:31.largely driven by the expectation that interest rates are likely
:10:32. > :10:40.to stay lower for longer. Economic data has been
:10:41. > :10:42.better than expected in the last couple of weeks,
:10:43. > :10:45.despite some worries, We'll talk more about that
:10:46. > :10:50.in a moment, but here's Michelle with the details about the day
:10:51. > :10:56.ahead on Wall Street. Prepare for an action-packed week,
:10:57. > :10:59.Wall Street gets a peek at the growth in the second quarter,
:11:00. > :11:02.where GDP figures are released this With the US economy showing signs
:11:03. > :11:08.of improvement, after a weak start to the year, will America's
:11:09. > :11:14.central bank raise interest rates? The Federal Reserve announces
:11:15. > :11:17.its decision on Wednesday. Most investors consider a rate hike
:11:18. > :11:20.unlikely at this time. This Monday, chip-maker
:11:21. > :11:24.Texas Instruments report The recent drop in
:11:25. > :11:27.iPhone sales could put We will hear more from
:11:28. > :11:30.the tech sector this week when big names such as Apple,
:11:31. > :11:33.Facebook and Amazon, among others, Joining us now is Brenda Kelly,
:11:34. > :11:49.an independent market analyst. A familiar face and our friend.
:11:50. > :11:53.Great to have you with us. The big central bank seen again, it
:11:54. > :11:59.continues will stop American central bank meeting this week. Expectations
:12:00. > :12:03.will it do something? Also, bank of Japan, is it going to... I don't
:12:04. > :12:08.know, more stimulus? Negative interest rates already in Japan,
:12:09. > :12:11.despite the fact that you have Corroda lined negative interest
:12:12. > :12:14.rates were possible three days before invoking them. At this
:12:15. > :12:19.particular point it is hard to know what the bank of Japan can do.
:12:20. > :12:23.Helicopter money is one of those areas that has been banded around
:12:24. > :12:27.for a while. It has never been tested, he has denied it is a
:12:28. > :12:32.possibility but loss of credibility in respect of other monetary policy
:12:33. > :12:36.decisions in the past, it could happen. For the time being, Japan's
:12:37. > :12:39.exports were a bit better than were expected in terms of the fall but
:12:40. > :12:44.they have fallen for nine consecutive month in a row. Strong
:12:45. > :12:50.currency we have seen as a result of the risk of in equity markets has
:12:51. > :12:53.led to a strong yen. It did not help exports. Nine consecutive months in
:12:54. > :12:57.April of declining exports in Japan, something will need to happen.
:12:58. > :13:02.Indeed. It will, I should say. We will have to leave it there. Time is
:13:03. > :13:07.short but you will take us through the newspapers. Helicopter money is
:13:08. > :13:10.the bank of Japan injecting money into people's personal bank
:13:11. > :13:13.accounts. These phrases we learnt in the course of this job. We will keep
:13:14. > :13:15.you up-to-date. Still to come,
:13:16. > :13:18.we'll take a closer look at the future for
:13:19. > :13:20.augmented-reality technology. We'll be speaking to the co-founder
:13:21. > :13:22.of a business which hopes to revolutionise the way we search
:13:23. > :13:24.for information online. You're with Business
:13:25. > :13:29.Live from BBC News. And now a look at some
:13:30. > :13:32.of the stories from around the UK. MPs who've examined
:13:33. > :13:34.the collapse of BHS have called its former owner,
:13:35. > :13:36.Sir Philip Green, the "unacceptable
:13:37. > :13:42.face of capitalism". A joint report by the Business
:13:43. > :13:45.and Work and Pensions committees accuses Sir Philip of making
:13:46. > :13:46."incredible wealth on the back of BHS",
:13:47. > :13:49.and in doing so reducing its ability Our Economics Correspondent
:13:50. > :14:05.Andrew Walker joins me now They can say all of that, but can
:14:06. > :14:12.they do anything about it? I didn't hear you. They can say all of
:14:13. > :14:18.this... Accusations against Philip green, but can they do anything? Can
:14:19. > :14:21.they claw back money, can he lose his knighthood? They can certainly
:14:22. > :14:24.make life very uncomfortable for him, do a great deal of damage to
:14:25. > :14:30.his reputation but they have very limited powers. But they can put a
:14:31. > :14:35.certain amount of moral pressure, if you like, on authorities that do
:14:36. > :14:39.have some powers. You mentioned his knighthood, that, we know, is under
:14:40. > :14:45.review. The decision on whether or not it should read stripped from him
:14:46. > :14:48.is one that is basically a recommendation that can be made by a
:14:49. > :14:53.committee of very senior civil servants.
:14:54. > :14:58.It would then be sent on by the Prime Minister to the Queen, who
:14:59. > :15:03.makes the final decision on whether that would happen. It certainly has
:15:04. > :15:08.been, something that has been done on a number of occasions in the
:15:09. > :15:12.past. Fred Goodwin, former chief executive of RBS was one example,
:15:13. > :15:16.but then he was seen by some people as a central player in the near
:15:17. > :15:21.collapse of the British financial system. Other examples have tended
:15:22. > :15:26.to be people convicted of criminal offences, but that is undoubtably an
:15:27. > :15:32.option for the government to consider and I think the strong
:15:33. > :15:38.language of this report does, I suppose, pushed them a little bit
:15:39. > :15:44.further in that direction. OK, good stuff. Andrew, thank you as always.
:15:45. > :15:49.All the data and information we are getting through from those BHS
:15:50. > :15:53.comments are on the business live pages. That damning report by MPs
:15:54. > :15:57.and the collapse of BHS. The important thing at the moment is the
:15:58. > :16:01.staff involved who are not just currently working there, but their
:16:02. > :16:06.pensions. Thousands of pensioners with their money saved in BHS, what
:16:07. > :16:09.future for them? There is a black hole of ?570 million was that many
:16:10. > :16:11.employees with an uncertain future. You're watching Business Live.
:16:12. > :16:21.Our top story: Europe's largest airline by
:16:22. > :16:24.passenger numbers, Ryanair, has reported its latest set of financial
:16:25. > :16:27.figures following Britten's decision to leave the EU.
:16:28. > :16:29.It's net profit rose by 4% compared to the same quarter last
:16:30. > :16:32.year to 256 million Euros, that's $281 million.
:16:33. > :16:41.A quick look at the market boards. Not a huge amount of movement in the
:16:42. > :16:47.markets. It is in Asia where the attention is focused. The exchange
:16:48. > :16:48.rate their... Wall Street had another record close
:16:49. > :16:51.as well. Chances are, you'd never heard
:16:52. > :16:54.of augmented reality until this And now everyone's talking
:16:55. > :17:02.about it, all thanks to the smartphone game Pokemon Go,
:17:03. > :17:06.which has hit the headlines and sent The technology superimposes virtual
:17:07. > :17:18.images onto a real-life feed captured, using a smartphone
:17:19. > :17:21.camera or 3D headset. Aside from games, it's hoped that AR
:17:22. > :17:26.can help provide relevant information to people
:17:27. > :17:28.out-and-about in the real world. When consumers use an app called
:17:29. > :17:34.Blippar, they can point their camera at an object,
:17:35. > :17:37.for example a dog, and the software will provide information
:17:38. > :17:42.about the dog. The company behind Blippar hopes it
:17:43. > :17:47.will provide an alternative Jess Butcher, co-founder
:17:48. > :17:59.of Blippar is with us. Welcome to the programme. Great to
:18:00. > :18:04.have you with us. It sounds... You showed me in the green room what it
:18:05. > :18:13.is. I have to say it is amazing, but what is also amazing... A unicorn.
:18:14. > :18:18.For the uninitiated a company valued at $1 billion before you even go to
:18:19. > :18:24.market. Yes. That is pretty impressive. It is a pretty fluffy
:18:25. > :18:28.term. We don't really discuss our valuation but we are proud to be
:18:29. > :18:35.part of a very small groups of businesses in Europe, and of British
:18:36. > :18:42.tech companies. Most of the big names and big verbs in technology
:18:43. > :18:44.are all West Coast businesses. Our aspiration is there will be a
:18:45. > :18:53.British business to become the next big verbs and we will be Blipping
:18:54. > :18:56.before we know it. We had a go at explaining how it works, talk us
:18:57. > :19:00.through it and why it is so important. We have seen the big rise
:19:01. > :19:07.in Nintendo shares, not just because of the game but the commercial value
:19:08. > :19:11.and what they can do with it. Blippar is a real-world visual
:19:12. > :19:15.browser. You can point a camera at anything in the physical world
:19:16. > :19:20.around you and instantaneously satisfy your curiosity about that.
:19:21. > :19:26.Whether it is pets, food, works of art, buildings, the natural world,
:19:27. > :19:30.you can find out whatever your general curiosity will be about that
:19:31. > :19:36.image or object. That is very powerful, a new form of discovery, a
:19:37. > :19:41.new form of search and one that doesn't require language. In
:19:42. > :19:45.traditional searches you need to type in the question to find the
:19:46. > :19:50.answer. Blippar allows the ability to look at anything and bring it to
:19:51. > :19:54.life. That has massive ramifications for how people go about their daily
:19:55. > :19:58.lives, simply extracting information and putting the Internet on the
:19:59. > :20:03.physical world around us. For brands and advertisers who on much of that
:20:04. > :20:06.physical world, there is a huge opportunity for very contextually
:20:07. > :20:12.putting their message in that place at that time, whether it is a dog
:20:13. > :20:15.food next to a dog, for example. Our priority is to make sure the
:20:16. > :20:18.information the consumer is getting his most relevant and likely to
:20:19. > :20:24.answer whatever that spontaneous curiosity might be. How much of this
:20:25. > :20:28.is a change of mindset? To get people away from searching by text?
:20:29. > :20:32.I suppose it is just a habit, to get people to hold up their phone to
:20:33. > :20:37.search for something? Sure. There is a new behaviour and that is our
:20:38. > :20:41.biggest challenge, to get people looking and unlocking the world in
:20:42. > :20:45.that way. The phone is a visual medium, it is all ready out. The
:20:46. > :20:53.photo -based businesses are the most successful in the world right now.
:20:54. > :20:57.We are taking selfies, snapchatting. We are a very visual human race and
:20:58. > :21:01.looking at everything. It is not that big a leap of faith that
:21:02. > :21:10.behaviour will happen. Pokemon go is massive. It must've been a godsend.
:21:11. > :21:14.A game changer for us in terms of adopting AR and understanding what
:21:15. > :21:18.it is. Our biggest complaint about the AR space is it won't get there
:21:19. > :21:24.until Rivera VR headsets on the hardware has come up to scratch. We
:21:25. > :21:32.wasted the phone is capable of this. Pokemon Go, there has never been so
:21:33. > :21:39.many downloads. Can I just ask you, you, co-founder, five years, how did
:21:40. > :21:48.you get into this? Have you always been a techie? I studied ancient
:21:49. > :21:52.history! So no, but I love technology, I love disruption and
:21:53. > :21:56.disruption is happening in tech right now. My desire is to affect
:21:57. > :22:03.behavioural change and that is what Blippar is trying to do. I'm all
:22:04. > :22:12.about the translation of that tech in a way that is meaningful for
:22:13. > :22:16.translators. I am the marketer and communications expert on our team,
:22:17. > :22:23.with some very smart technology people behind me. Blipping, I love
:22:24. > :22:28.it! We will continue the conversation later on Facebook live.
:22:29. > :22:39.But for now, thank you, Jess. In a moment we'll take a look
:22:40. > :22:41.through the Business Pages, but first here's a quick reminder
:22:42. > :22:47.of how to get in touch with us. Stay ahead of the breaking news,
:22:48. > :22:50.we'll keep you up-to-date with the latest details with insight and
:22:51. > :22:54.analysis from the BBC's team of editors from around the world. We
:22:55. > :23:03.want to hear from you. Get on the BBC live web page. You can also get
:23:04. > :23:09.in touch on Twitter, and on Facebook. Business Live on TV and
:23:10. > :23:16.online whenever you need to know. Michelle with the details on how to
:23:17. > :23:22.get in touch. Brenda is back to talk us through some of the papers. The
:23:23. > :23:28.Guardian, an important newspaper, one of the biggest newspapers in the
:23:29. > :23:32.UK. Expected to see a record loss of ?170 million. We asked people at the
:23:33. > :23:36.start of the programme to get in touch, and see if you still buy a
:23:37. > :23:40.newspaper. One says I don't buy one but its very one that the
:23:41. > :23:45.supermarket. She said it is great for a paint job or wrapping things.
:23:46. > :23:52.Another says, I have bought the express for the last 60 years. Let
:23:53. > :23:56.us know. Do you? I do on a Sunday, I prefer a Sunday newspaper. Every
:23:57. > :24:02.single day I would be more about online. The Guardian is free online.
:24:03. > :24:06.And it is out of date so quickly. The way news changes these days, if
:24:07. > :24:13.you're looking at it on Facebook or Twitter, it is out of date. Yes, I
:24:14. > :24:17.look at social media as well. I prefer the feel of a newspaper or a
:24:18. > :24:23.book in hand, but it is starting to bite. It will have a record loss of
:24:24. > :24:26.?173 million, the Guardian group, when it announces on Wednesday.
:24:27. > :24:30.Despite the fact there has been a lot of cost-cutting and taken
:24:31. > :24:36.restructuring charges and tried up the ante in of digital advertising,
:24:37. > :24:40.they are still seeing a massive fall off in its normal print advertising.
:24:41. > :24:47.It will be interesting for the newspaper story here. Even the FT is
:24:48. > :24:52.likely to see a drop back and there Brexit scenarios likely to impact
:24:53. > :24:57.there advertising revenue as companies hold off. Switching gears
:24:58. > :25:02.but staying somewhat, this is the challenge the print. If we talk
:25:03. > :25:09.about Yahoo. They mention of February they wanted to flog its
:25:10. > :25:13.core business. The US telecoms giant, we are expecting an
:25:14. > :25:20.announcement today, $5 billion. Is it a good deal for everyone involved
:25:21. > :25:24.Chris Wratt Yahoo have lost a lot of market share. They haven't really
:25:25. > :25:30.had a lot of focus, despite the fact they have been through several CEOs
:25:31. > :25:40.and the last few years. It with seem to have reached the end of its line.
:25:41. > :25:44.It will sell part of its company to Verizon. It is going to be quite a
:25:45. > :25:53.big company and it will take advantage of a lot of content Yahoo
:25:54. > :25:59.already has. Yahoo and AOL, two massive names. Yes. Thank you for
:26:00. > :26:03.your company today. Same time and place tomorrow with business Live.