:00:10. > :00:11.This is Business Live from BBC News with Aaron
:00:12. > :00:19.With terror attacks across europe and a vote by the UK we look
:00:20. > :00:21.at the state of the regions once booming tourism industry.
:00:22. > :00:40.Live from London, that's our top story on Thursday the 28th of July.
:00:41. > :00:43.It's an industry in turmoil and today Thomas Cook added
:00:44. > :00:46.to the headache facing Europe's holiday business, saying that
:00:47. > :00:50.Terrorism and Brexit would lead to a decrease in profits.
:00:51. > :00:53.Were going to be looking at where next for the regions once
:00:54. > :01:10.Also in the programme, we should learn later today
:01:11. > :01:14.whether Britain's first new nuclear power plant in decades will actually
:01:15. > :01:17.If confirmed - the new Hinkley Point plant will be
:01:18. > :01:19.one of the biggest and most expensive energy projects ever
:01:20. > :01:26.We will the markets, London opening flat, some of the Asian markets down
:01:27. > :01:29.in the dumps. We will show you why. And we'll be getting
:01:30. > :01:31.the inside track on the booze industry with the man behind brands
:01:32. > :01:34.like Johnny Walker, Yes the head of Drinks Giant Diagio
:01:35. > :01:38.will be in the studio as the firm We will actually be talking to him
:01:39. > :01:46.live down the line. And a new report out today says that
:01:47. > :01:50.sitting at your desk for eight hours Increasing the risk
:01:51. > :01:56.of premature death by 60%. How long do you stay seated
:01:57. > :01:58.for at work? And what do you do to try and stay
:01:59. > :02:01.healthy in the office? Let us know using the
:02:02. > :02:19.hashtag BBCBizLIVE. Thankfully he's not in the studio,
:02:20. > :02:21.he would have brought props, you know what that means! Drinks early
:02:22. > :02:23.in the morning. The global tourism industry
:02:24. > :02:29.is going through a rough patch at the moment with terrorism,
:02:30. > :02:32.Brexit and Zika all affecting Thomas Cook has just
:02:33. > :02:35.released its third quarter results. The British travel company
:02:36. > :02:37.cut its full-year profit target and saw a 5% reduction
:02:38. > :02:45.in summer bookings. Safety and security concerns have
:02:46. > :02:50.had a huge impact in tourism in locations such as France,
:02:51. > :02:57.Egypt, Tunisia and Turkey, all of which have suffered deadly
:02:58. > :03:02.terror attacks in recent times. As you can see from this map much
:03:03. > :03:12.of the region is now considered to be under a 'high' level
:03:13. > :03:15.of terrorist activity with the likes of Portugal and Italy having
:03:16. > :03:20.an 'underlying threat' UK based travel firms have also had
:03:21. > :03:30.to deal with the fall in the value That's made holidays abroad more
:03:31. > :03:34.expensive for Brits and is having a knock impact on those countries
:03:35. > :03:40.that rely on UK tourists. The Independent's travel editor
:03:41. > :03:54.and all round tourism guru Aaron running us through numbers.
:03:55. > :04:02.Europe's tourism industry seems to be in a terrible state. Turkey, down
:04:03. > :04:07.50%. Tunisia, decimated. Is it too early to say it is in a state of
:04:08. > :04:14.crisis? That depends where you are. On the fringes, Turkey, absolutely
:04:15. > :04:20.dreadful. You go to the resorts and see almost nobody there. Down maybe
:04:21. > :04:26.50%, largely because there is limited demand, I personally had a
:04:27. > :04:32.vacation but in Turkey, the company said we're cancelling debt, there is
:04:33. > :04:34.simply not the demand. Switching flights to the western
:04:35. > :04:39.Mediterranean, Spain and Portugal. Spain will have a boom year, the
:04:40. > :04:46.best year ever. Even that comes at a price. Pushing lots of marginal
:04:47. > :04:53.accommodation into the mix. Simply because you have 10 million extra
:04:54. > :04:58.tourists chasing beds. They are not necessarily gay did have a great
:04:59. > :05:06.holiday, not getting the value in places like Turkey and Tunisia. Let
:05:07. > :05:10.me ask you this. We spoke to Ryanair, Europe's largest carrier
:05:11. > :05:18.number by passenger numbers. One luxury for them, it's an area takes
:05:19. > :05:23.a downturn, they move the planes, focus of an area doing better. If
:05:24. > :05:29.you owned hotels, bricks and mortar, you are screwed, excuse my French.
:05:30. > :05:35.Those assets stay where you put them. That is the huge issue
:05:36. > :05:41.affecting Turkey and Tunisia, also Egypt. Seeing a shortfall in travel.
:05:42. > :05:48.The airlines are having a better time, not a brilliant time. An hour
:05:49. > :05:51.ago, the chief executive Thomas Cook saying the German airline, Condor,
:05:52. > :05:59.suffering because of the competition. All the planes pointing
:06:00. > :06:07.towards Spain. If you have not yet but your summer location, they could
:06:08. > :06:12.be bargains around. This year they have 90% of their summer holidays
:06:13. > :06:18.but, up from 16 last year. Could put downward pressure on prices. A lotta
:06:19. > :06:22.people choosing to stay at home. Something politicians have been
:06:23. > :06:30.trumpeting. A drop in the pound, 10% drop. Great for the UK tourism
:06:31. > :06:35.industry, is that true? The demand for foreign holidays, even when the
:06:36. > :06:42.pound has been on par with the Euro, it continues to be strong. Quite a
:06:43. > :06:46.lot of elasticity. The pound may sink by 10%, does not mean 10% fewer
:06:47. > :06:50.people will go abroad. Even then people will go abroad. Even then
:06:51. > :06:54.they won't necessarily, if they are feeling the pinch, uncertain about
:06:55. > :07:00.what will happen with Brecht set, they were not necessarily spend that
:07:01. > :07:06.on UK vacations. They made a stay at home. Not entirely good news. There
:07:07. > :07:10.may be, hopefully in the next year or so an increase in overseas
:07:11. > :07:18.visitors to the UK. If you see a decline in aviation, talking to
:07:19. > :07:22.Ryanair, moving flights away from the UK, people cannot get there,
:07:23. > :07:27.they will not be there spending money. Interesting, a nuanced
:07:28. > :07:31.response under the headlines. Tuning to the BBC's Travel Show for the
:07:32. > :07:37.latest. How to maximise your money. The Federal Reserve has kept
:07:38. > :07:38.interest rates unchanged, maintaining the ultra-low level
:07:39. > :07:40.they have been at The US central bank said "near-term
:07:41. > :07:44.risks to the economic It is still expected to raise rates
:07:45. > :07:48.twice this year. Investors expect the first
:07:49. > :07:58.increase to come in autumn. Facebook posted quarterly
:07:59. > :08:00.profit results yesterday which were above and beyond
:08:01. > :08:02.what analysts were predicting. The social media giant posted a 59%
:08:03. > :08:05.increase from a year ago. The huge boost has been attributed
:08:06. > :08:08.to mobile ad revenue which is up 81% Investment in the new nuclear plant
:08:09. > :08:25.to be built at Hinkley Point, Investment in the new nuclear plant
:08:26. > :08:31.to be built at Hinkley Point, is set to get final approval today
:08:32. > :08:33.from France's EDF. A third of the almost 24 billion
:08:34. > :08:36.dollar project is being met It will be the UK's first nuclear
:08:37. > :08:41.power plant in over 20 years and is expected to provide
:08:42. > :08:44.7% of the UK's total For our UK audience we will be
:08:45. > :08:57.bringing you more on this later. Let's take a look round the world
:08:58. > :08:59.at what's business stories First, Strong smartphone sales have
:09:00. > :09:03.helped Samsung Electronics post its best quarterly results
:09:04. > :09:25.in more than two years. Look at you, hello. At the top end,
:09:26. > :09:31.I said that in a nice way, by the way, at the top end, competition
:09:32. > :09:39.from Apple, at the bottom end, they had competitors. It is the battle of
:09:40. > :09:46.the smartphones, to a point, anyway. It is, in fact the world's bigger
:09:47. > :09:52.smartphone maker. Profits up 8% from the beginning of the year to June.
:09:53. > :09:59.That was in line with guidance. Tom Werner, mobiles. Profit jumping 57%
:10:00. > :10:04.from one year earlier. Pretty impressive. Consumers keen on the
:10:05. > :10:07.galaxies smartphones. You have to put this against the slowing
:10:08. > :10:12.smartphone industry. You talked about the iPhone, just this week
:10:13. > :10:19.Apple struggling to boost iPhone sales. The future for mobiles is not
:10:20. > :10:24.Albright. They expect mobile profits to weaken in the second half, hoping
:10:25. > :10:29.to offset that with strong demand from the various very lucrative
:10:30. > :10:33.components they make. The shares ended down, just over 1% in a week
:10:34. > :10:36.and market. Good on you, we will talk to you soon.
:10:37. > :10:38.Asian stocks were mostly lower today as Chinese stocks
:10:39. > :10:45.Japan's Nikkei fell more than 1% because of the stronger yen
:10:46. > :10:47.and nerves before the Bank of Japan's monetary policy
:10:48. > :11:03.All that said the Federal Reserve provided a positive assessment
:11:04. > :11:07.of the US economy taking away some of the risk.
:11:08. > :11:12.I will say that the dollar fell as some in the currency market had
:11:13. > :11:15.hoped the Fed would give a clearer indication that it could raise
:11:16. > :11:28.Europe opened flat, but remember yesterday on the FTSE
:11:29. > :11:30.we saw the highest closing level in nearly a year,
:11:31. > :11:34.with house builders among the top performers and mid-cap stocks
:11:35. > :11:46.touching their best level since last month's shock Brexit vote.
:11:47. > :11:49.OK, let's jump over the pond and see what'll be making the biz
:11:50. > :12:04.In a week dominated by profit reports from the world's biggest
:12:05. > :12:09.technology companies, Facebook's will be hard to top, reporting a
:12:10. > :12:15.182% increase in net income. If anyone can challenge Facebook's
:12:16. > :12:20.dominance in the digital advertising market, it is Google. They have
:12:21. > :12:25.enjoyed rapid growth. The parent company Alphabet is expected to
:12:26. > :12:33.announce a rise in profits after the stock market closes. Another tech
:12:34. > :12:42.firm enjoying a banner year is Harmison, profits may be boosted by
:12:43. > :12:45.the retail giant. The car-maker Ford, and credit card operator
:12:46. > :12:48.MasterCard will both put out both their results first on Thursday.
:12:49. > :12:50.Joining us is Richard Dunbar, Investment Director
:12:51. > :13:03.We have had a raft of results coming in from various companies. One I
:13:04. > :13:10.want to pick up on his Rolls-Royce. Posting an 80% drop in first-half
:13:11. > :13:15.profit. That is a huge drop. Is it better than a lot of people are
:13:16. > :13:23.expecting? They are poor on the face of it, a little better than the
:13:24. > :13:27.market expected. The 80% fall reflects the mill they have been
:13:28. > :13:31.through. Poor demand for aero engines and marine engines.
:13:32. > :13:35.Rolls-Royce is not making enough profit from the sales of the after
:13:36. > :13:39.service of the engines. They have gone through a massive restructuring
:13:40. > :13:43.programme, that continues, cutting costs, doing things better,
:13:44. > :13:48.restoring the company to the position it should be in. Results
:13:49. > :13:58.slightly better than expected. The market expected a loss. Share price
:13:59. > :14:02.up 15%. That reflects the views of the current management team are
:14:03. > :14:06.doing something right. Confidence going forward. When we talk about
:14:07. > :14:11.Rolls-Royce, people may think of a car, it is not the car company, they
:14:12. > :14:18.make engines, big plane engines. Cracking new engines out at the
:14:19. > :14:22.moment. In the next 20 years, Airbus and Boeing will say they need 20,000
:14:23. > :14:25.plus new aircraft. One third of the plane to get some will have
:14:26. > :14:30.Rolls-Royce on the side of the engine. One of Britain's's Best
:14:31. > :14:33.companies. One of the best of three engine makers in the world.
:14:34. > :14:38.Gradually getting back to the position it should have been in
:14:39. > :14:44.before. You will stick around to take us through the business papers.
:14:45. > :14:47.Some good stories. Who selected those?
:14:48. > :14:50.Still to come: We'll be speaking to a world leading
:14:51. > :14:53.The man behind brands like Johnnie Walker Scotch whisky,
:14:54. > :14:56.and Guinness beer will joins us live to talk about the company's latest
:14:57. > :14:59.results and why it's too early to say if Brexit is bad news
:15:00. > :15:13.You're with Business Live from BBC News.
:15:14. > :15:16.And now a look at some of the stories from around the UK.
:15:17. > :15:18.Investment in the new nuclear plant to be built in Hinkley Point,
:15:19. > :15:22.Somerset, is set to get final approval today.
:15:23. > :15:26.Our very own Ben Thompson joins me now from The London Stock Exchange
:15:27. > :15:40.Have you got any likes? It looks awfully dark. We will need that new
:15:41. > :15:46.plant just do like you up! Yes, welcome to my new space age area at
:15:47. > :15:55.the London stock exchange. It is a really big day for corporate news.
:15:56. > :15:59.One of the biggest news items we are keeping our eye on is that. EDF will
:16:00. > :16:06.tell us whether they will go ahead with that new nuclear power plant at
:16:07. > :16:10.Hinkley Point in Somerset. There are similar plants being built at the
:16:11. > :16:18.moment which are massively and long facing their opening. In northern
:16:19. > :16:23.France it is 7 billion euros over and at Colston it is six years late.
:16:24. > :16:28.The initial estimates say it will cost around ?18 billion, and if that
:16:29. > :16:32.is the case, it would make it the most expensive nuclear power plant
:16:33. > :16:38.ever built, but some say the costs could escalate as high as ?37
:16:39. > :16:43.billion. Equally, there is a? Over the timing. When will it be built
:16:44. > :16:50.and when will it "Makes it is designed to meet 7% of the UK's
:16:51. > :16:56.energy needs but it is not due to open until 2025 and it could be
:16:57. > :16:58.later. Way over budget. Another company is Lloyds, their pre-tax
:16:59. > :17:04.profits have more than doubled but on this announcement it will cut
:17:05. > :17:08.some 3000 jobs. We have seen the share price drop dramatically. It is
:17:09. > :17:13.a bank in the eye of the Brexit storm. Yes, and a look at the share
:17:14. > :17:25.price now, it is one of the biggest borders. 3000 more jobs on top of
:17:26. > :17:28.the 9000 jobs it announced it would cut last year. It will also close
:17:29. > :17:30.another 200 branches. That is about 400 branches which will disappear by
:17:31. > :17:34.the end of the high street next year. They say that as a result of
:17:35. > :17:38.changing habits in how we do our banking, but also the record low
:17:39. > :17:41.interest rates which is squeezing the profit margins. They cannot
:17:42. > :17:45.charge more and for the banks it means smaller profits. Thank you for
:17:46. > :18:04.talking to us. The top stories the British travel
:18:05. > :18:09.company Thomas Cook had its results today, the terror attacks, Brexit
:18:10. > :18:14.and the failed coup in Turkey are all leading customers to cancel
:18:15. > :18:20.their holidays. We have a raft of results coming out and the decision
:18:21. > :18:22.by the US Federal Reserve to keep rates on hold. The European markets
:18:23. > :18:25.have opened fairly flat. In the last couple of hours Diageo
:18:26. > :18:28.reported a 2.8% increase in sales in the year 30 June -
:18:29. > :18:31.enabling the company to return You may not have heard of the drinks
:18:32. > :18:39.company, but you'll certainly have heard of some their
:18:40. > :18:42.international drinks brands. Diageo owns Captain Morgan's rum,
:18:43. > :18:47.Smirnoff vodka and Johnnie Walker Aaron is nodding. You are making me
:18:48. > :19:00.thirsty! Although Europe and North America
:19:01. > :19:02.accounts for the majority of the company's sales,
:19:03. > :19:04.Diageo also has a large and growing The company has given investors
:19:05. > :19:08.plenty to cheer about lately, since Britain took the decision
:19:09. > :19:10.to leave the European Union, the company's share price
:19:11. > :19:16.has risen around 16%. Let's speak to Ivan Menezes,
:19:17. > :19:25.Chief Executive Officer of Diageo. Many thanks for joining us on the
:19:26. > :19:30.programme. As I was just saying, your company has been, on the
:19:31. > :19:36.surface of it, a beneficiary of the UK vote to leave the EU. We saw your
:19:37. > :19:40.share price fall but article 50 is yet to be evoked. Are you concerned
:19:41. > :19:45.about what will happen to your business, access to the single
:19:46. > :19:50.market etc, if and when it is a vote? You know, Diageo is a global
:19:51. > :19:56.business. We have about 6% of our business in the UK. Scotch whiskey
:19:57. > :20:01.is 25%. It is one of the most healthy food and drink export
:20:02. > :20:13.businesses the UK has. As it relates to Brexit and what happens, our
:20:14. > :20:15.company is well positioned. If you look at the results we just
:20:16. > :20:18.announced, we grew at 3%, expanded margins. North America is a very
:20:19. > :20:22.important market, it is doing well. Europe is doing well and the
:20:23. > :20:26.emerging markets are growing. I am confident we will work our way
:20:27. > :20:32.through a post-Brexit world. What is most important to us is let's keep
:20:33. > :20:36.Scotch Whisky healthy. This is a thriving, successful business to the
:20:37. > :20:40.UK and my focus is ensuring we get the right conditions to continue to
:20:41. > :20:45.be successful, because the runway for Scotch whiskey around the world
:20:46. > :21:03.is very attractive, particularly in the emerging markets.
:21:04. > :21:07.Ivan, I want to ask you this, you mentioned the United States, the US
:21:08. > :21:10.accounts for nearly half of all your money, let's be frank, all the money
:21:11. > :21:13.you rake in, and you have seen a big improvement in the US, and I wonder
:21:14. > :21:15.what is behind that turnaround, why are the Americans drinking more? The
:21:16. > :21:17.Americans are drinking better and they are moving to spirits better!
:21:18. > :21:21.This works really well for Diageo. What we have done in the last few
:21:22. > :21:28.years is really sharpened up our focus on the consumer, our marketing
:21:29. > :21:33.is much better, and you know I love America, because to me, it is the
:21:34. > :21:38.world's most attractive developing market. You have wonderful
:21:39. > :21:43.demographics, a growing population, the multi-cultural shifts in
:21:44. > :21:50.America, the growth of the U know and Asian consumer is very good for
:21:51. > :21:57.us and it is profitable. Ed is about half our profits and it is the most
:21:58. > :22:02.sustainable and exciting growth engine for the company and our
:22:03. > :22:08.brands do really well. Our higher end brands like tequila and Bullet
:22:09. > :22:12.bourbon are growing right now and it is all about the trend to drink
:22:13. > :22:17.better and people love their cocktails. Indeed they do! One thing
:22:18. > :22:21.I am interested in is do you think it is a good time to renegotiate
:22:22. > :22:27.some of your trade deals, some of the tariffs out there which already
:22:28. > :22:32.exist? The UK now has an opportunity to negotiate its own deals,
:22:33. > :22:39.companies like India, given India in particular has huge tariffs, 150%,
:22:40. > :22:48.as I'm aware of, of wines and spirits, do you see opportunities
:22:49. > :22:52.now? I do. We as the UK need to get out aggressively and create the best
:22:53. > :22:58.trade conditions around the world. You point to India. We have a
:22:59. > :23:03.fabulous business in India in local spirits. It is our number two market
:23:04. > :23:07.after the United States. Indians love whiskey and Scotch whiskey
:23:08. > :23:12.still has very high tariffs. If the UK and India could get to a free
:23:13. > :23:16.trade agreement, that would be very positive for Diageo and I think both
:23:17. > :23:21.countries have a long connection and to me, this is what the new
:23:22. > :23:30.government needs to be out doing, creating the conditions outside the
:23:31. > :23:32.EU to create favourable trade agreements. OK, really good to talk
:23:33. > :23:39.to you, thank you. Ivan Menezes, chief executive of Diageo. And
:23:40. > :23:46.remember, we like props next time! He wants us to drink better.
:23:47. > :23:48.I wonder if Donald Trump is making the Americans drink more?
:23:49. > :23:51.In a moment we'll take a look through the Business Pages but first
:23:52. > :23:54.here's a quick reminder of how to get in touch with us.
:23:55. > :23:58.The Business Live page is where you can stay ahead with all the breaking
:23:59. > :24:04.business news. We will keep you up-to-date with all the details and
:24:05. > :24:08.analysis from the BBC's team right around the world. And we want to
:24:09. > :24:13.hear from you as well. Get involved on the BBC live web page. And you
:24:14. > :24:22.can find us on Twitter and Facebook. Richard Dunbar, Investment Director
:24:23. > :24:34.at Aberdeen Asset Management Can we start with this first story?
:24:35. > :24:39.I'm going off camera now. Sitting is not good. Apparently, it is as bad
:24:40. > :24:43.as cigarette smoking. As someone who started work when you could smoke in
:24:44. > :24:46.the office, I find it hard to believe this is the case but
:24:47. > :24:50.nevertheless, Cambridge University have told us it is. They say if you
:24:51. > :24:54.walk around for an hour, that is all you need to do. You do not need to
:24:55. > :24:56.join the gym and standing up in itself is a good thing is so good
:24:57. > :25:13.news for all of us who wish to cancel our gym
:25:14. > :25:15.subscription! A scary statistic that sitting down for eight hours
:25:16. > :25:17.straight increases the risk of premature death for 60%. In our
:25:18. > :25:20.office there are buttons which raise the desk up so you could stand
:25:21. > :25:23.instead of sit but sometimes it is like a field of sunflowers rising
:25:24. > :25:26.and falling as people rise and fall at their computers but nevertheless,
:25:27. > :25:34.it is positive for this kind of action. US real estate company
:25:35. > :25:40.buying a big chunk of the UK? They are buying into Pinewood Studios. It
:25:41. > :25:43.is a US investor taking advantage of a weaker sterling and still having
:25:44. > :25:47.confidence in the UK real estate market. Some we were worried about
:25:48. > :25:52.after the Brexit vote and it seems this company is less worried than
:25:53. > :25:56.others. The fifth biggest economy in the world still standing strong!
:25:57. > :25:57.Thank you. That is all we have time for.
:25:58. > :26:02.There will be more business news throughout the day on the BBC Live
:26:03. > :26:04.webpage and on World Business Report.