Browse content similar to 28/07/2016. Check below for episodes and series from the same categories and more!
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This is Business Live from BBC News with Aaron | :00:10. | :00:11. | |
With terror attacks across europe and a vote by the UK we look | :00:12. | :00:19. | |
at the state of the regions once booming tourism industry. | :00:20. | :00:21. | |
Live from London, that's our top story on Thursday the 28th of July. | :00:22. | :00:40. | |
It's an industry in turmoil and today Thomas Cook added | :00:41. | :00:43. | |
to the headache facing Europe's holiday business, saying that | :00:44. | :00:46. | |
Terrorism and Brexit would lead to a decrease in profits. | :00:47. | :00:50. | |
Were going to be looking at where next for the regions once | :00:51. | :00:53. | |
Also in the programme, we should learn later today | :00:54. | :01:10. | |
whether Britain's first new nuclear power plant in decades will actually | :01:11. | :01:14. | |
If confirmed - the new Hinkley Point plant will be | :01:15. | :01:17. | |
one of the biggest and most expensive energy projects ever | :01:18. | :01:19. | |
We will the markets, London opening flat, some of the Asian markets down | :01:20. | :01:26. | |
in the dumps. We will show you why. And we'll be getting | :01:27. | :01:29. | |
the inside track on the booze industry with the man behind brands | :01:30. | :01:31. | |
like Johnny Walker, Yes the head of Drinks Giant Diagio | :01:32. | :01:34. | |
will be in the studio as the firm We will actually be talking to him | :01:35. | :01:38. | |
live down the line. And a new report out today says that | :01:39. | :01:46. | |
sitting at your desk for eight hours Increasing the risk | :01:47. | :01:50. | |
of premature death by 60%. How long do you stay seated | :01:51. | :01:56. | |
for at work? And what do you do to try and stay | :01:57. | :01:58. | |
healthy in the office? Let us know using the | :01:59. | :02:01. | |
hashtag BBCBizLIVE. Thankfully he's not in the studio, | :02:02. | :02:19. | |
he would have brought props, you know what that means! Drinks early | :02:20. | :02:21. | |
in the morning. The global tourism industry | :02:22. | :02:23. | |
is going through a rough patch at the moment with terrorism, | :02:24. | :02:29. | |
Brexit and Zika all affecting Thomas Cook has just | :02:30. | :02:32. | |
released its third quarter results. The British travel company | :02:33. | :02:35. | |
cut its full-year profit target and saw a 5% reduction | :02:36. | :02:37. | |
in summer bookings. Safety and security concerns have | :02:38. | :02:45. | |
had a huge impact in tourism in locations such as France, | :02:46. | :02:50. | |
Egypt, Tunisia and Turkey, all of which have suffered deadly | :02:51. | :02:57. | |
terror attacks in recent times. As you can see from this map much | :02:58. | :03:02. | |
of the region is now considered to be under a 'high' level | :03:03. | :03:12. | |
of terrorist activity with the likes of Portugal and Italy having | :03:13. | :03:15. | |
an 'underlying threat' UK based travel firms have also had | :03:16. | :03:20. | |
to deal with the fall in the value That's made holidays abroad more | :03:21. | :03:30. | |
expensive for Brits and is having a knock impact on those countries | :03:31. | :03:34. | |
that rely on UK tourists. The Independent's travel editor | :03:35. | :03:40. | |
and all round tourism guru Aaron running us through numbers. | :03:41. | :03:54. | |
Europe's tourism industry seems to be in a terrible state. Turkey, down | :03:55. | :04:02. | |
50%. Tunisia, decimated. Is it too early to say it is in a state of | :04:03. | :04:07. | |
crisis? That depends where you are. On the fringes, Turkey, absolutely | :04:08. | :04:14. | |
dreadful. You go to the resorts and see almost nobody there. Down maybe | :04:15. | :04:20. | |
50%, largely because there is limited demand, I personally had a | :04:21. | :04:26. | |
vacation but in Turkey, the company said we're cancelling debt, there is | :04:27. | :04:32. | |
simply not the demand. Switching flights to the western | :04:33. | :04:34. | |
Mediterranean, Spain and Portugal. Spain will have a boom year, the | :04:35. | :04:39. | |
best year ever. Even that comes at a price. Pushing lots of marginal | :04:40. | :04:46. | |
accommodation into the mix. Simply because you have 10 million extra | :04:47. | :04:53. | |
tourists chasing beds. They are not necessarily gay did have a great | :04:54. | :04:58. | |
holiday, not getting the value in places like Turkey and Tunisia. Let | :04:59. | :05:06. | |
me ask you this. We spoke to Ryanair, Europe's largest carrier | :05:07. | :05:10. | |
number by passenger numbers. One luxury for them, it's an area takes | :05:11. | :05:18. | |
a downturn, they move the planes, focus of an area doing better. If | :05:19. | :05:23. | |
you owned hotels, bricks and mortar, you are screwed, excuse my French. | :05:24. | :05:29. | |
Those assets stay where you put them. That is the huge issue | :05:30. | :05:35. | |
affecting Turkey and Tunisia, also Egypt. Seeing a shortfall in travel. | :05:36. | :05:41. | |
The airlines are having a better time, not a brilliant time. An hour | :05:42. | :05:48. | |
ago, the chief executive Thomas Cook saying the German airline, Condor, | :05:49. | :05:51. | |
suffering because of the competition. All the planes pointing | :05:52. | :05:59. | |
towards Spain. If you have not yet but your summer location, they could | :06:00. | :06:07. | |
be bargains around. This year they have 90% of their summer holidays | :06:08. | :06:12. | |
but, up from 16 last year. Could put downward pressure on prices. A lotta | :06:13. | :06:18. | |
people choosing to stay at home. Something politicians have been | :06:19. | :06:22. | |
trumpeting. A drop in the pound, 10% drop. Great for the UK tourism | :06:23. | :06:30. | |
industry, is that true? The demand for foreign holidays, even when the | :06:31. | :06:35. | |
pound has been on par with the Euro, it continues to be strong. Quite a | :06:36. | :06:42. | |
lot of elasticity. The pound may sink by 10%, does not mean 10% fewer | :06:43. | :06:46. | |
people will go abroad. Even then people will go abroad. Even then | :06:47. | :06:50. | |
they won't necessarily, if they are feeling the pinch, uncertain about | :06:51. | :06:54. | |
what will happen with Brecht set, they were not necessarily spend that | :06:55. | :07:00. | |
on UK vacations. They made a stay at home. Not entirely good news. There | :07:01. | :07:06. | |
may be, hopefully in the next year or so an increase in overseas | :07:07. | :07:10. | |
visitors to the UK. If you see a decline in aviation, talking to | :07:11. | :07:18. | |
Ryanair, moving flights away from the UK, people cannot get there, | :07:19. | :07:22. | |
they will not be there spending money. Interesting, a nuanced | :07:23. | :07:27. | |
response under the headlines. Tuning to the BBC's Travel Show for the | :07:28. | :07:31. | |
latest. How to maximise your money. The Federal Reserve has kept | :07:32. | :07:37. | |
interest rates unchanged, maintaining the ultra-low level | :07:38. | :07:38. | |
they have been at The US central bank said "near-term | :07:39. | :07:40. | |
risks to the economic It is still expected to raise rates | :07:41. | :07:44. | |
twice this year. Investors expect the first | :07:45. | :07:48. | |
increase to come in autumn. Facebook posted quarterly | :07:49. | :07:58. | |
profit results yesterday which were above and beyond | :07:59. | :08:00. | |
what analysts were predicting. The social media giant posted a 59% | :08:01. | :08:02. | |
increase from a year ago. The huge boost has been attributed | :08:03. | :08:05. | |
to mobile ad revenue which is up 81% Investment in the new nuclear plant | :08:06. | :08:08. | |
to be built at Hinkley Point, Investment in the new nuclear plant | :08:09. | :08:25. | |
to be built at Hinkley Point, is set to get final approval today | :08:26. | :08:31. | |
from France's EDF. A third of the almost 24 billion | :08:32. | :08:33. | |
dollar project is being met It will be the UK's first nuclear | :08:34. | :08:36. | |
power plant in over 20 years and is expected to provide | :08:37. | :08:41. | |
7% of the UK's total For our UK audience we will be | :08:42. | :08:44. | |
bringing you more on this later. Let's take a look round the world | :08:45. | :08:57. | |
at what's business stories First, Strong smartphone sales have | :08:58. | :08:59. | |
helped Samsung Electronics post its best quarterly results | :09:00. | :09:03. | |
in more than two years. Look at you, hello. At the top end, | :09:04. | :09:25. | |
I said that in a nice way, by the way, at the top end, competition | :09:26. | :09:31. | |
from Apple, at the bottom end, they had competitors. It is the battle of | :09:32. | :09:39. | |
the smartphones, to a point, anyway. It is, in fact the world's bigger | :09:40. | :09:46. | |
smartphone maker. Profits up 8% from the beginning of the year to June. | :09:47. | :09:52. | |
That was in line with guidance. Tom Werner, mobiles. Profit jumping 57% | :09:53. | :09:59. | |
from one year earlier. Pretty impressive. Consumers keen on the | :10:00. | :10:04. | |
galaxies smartphones. You have to put this against the slowing | :10:05. | :10:07. | |
smartphone industry. You talked about the iPhone, just this week | :10:08. | :10:12. | |
Apple struggling to boost iPhone sales. The future for mobiles is not | :10:13. | :10:19. | |
Albright. They expect mobile profits to weaken in the second half, hoping | :10:20. | :10:24. | |
to offset that with strong demand from the various very lucrative | :10:25. | :10:29. | |
components they make. The shares ended down, just over 1% in a week | :10:30. | :10:33. | |
and market. Good on you, we will talk to you soon. | :10:34. | :10:36. | |
Asian stocks were mostly lower today as Chinese stocks | :10:37. | :10:38. | |
Japan's Nikkei fell more than 1% because of the stronger yen | :10:39. | :10:45. | |
and nerves before the Bank of Japan's monetary policy | :10:46. | :10:47. | |
All that said the Federal Reserve provided a positive assessment | :10:48. | :11:03. | |
of the US economy taking away some of the risk. | :11:04. | :11:07. | |
I will say that the dollar fell as some in the currency market had | :11:08. | :11:12. | |
hoped the Fed would give a clearer indication that it could raise | :11:13. | :11:15. | |
Europe opened flat, but remember yesterday on the FTSE | :11:16. | :11:28. | |
we saw the highest closing level in nearly a year, | :11:29. | :11:30. | |
with house builders among the top performers and mid-cap stocks | :11:31. | :11:34. | |
touching their best level since last month's shock Brexit vote. | :11:35. | :11:46. | |
OK, let's jump over the pond and see what'll be making the biz | :11:47. | :11:49. | |
In a week dominated by profit reports from the world's biggest | :11:50. | :12:04. | |
technology companies, Facebook's will be hard to top, reporting a | :12:05. | :12:09. | |
182% increase in net income. If anyone can challenge Facebook's | :12:10. | :12:15. | |
dominance in the digital advertising market, it is Google. They have | :12:16. | :12:20. | |
enjoyed rapid growth. The parent company Alphabet is expected to | :12:21. | :12:25. | |
announce a rise in profits after the stock market closes. Another tech | :12:26. | :12:33. | |
firm enjoying a banner year is Harmison, profits may be boosted by | :12:34. | :12:42. | |
the retail giant. The car-maker Ford, and credit card operator | :12:43. | :12:45. | |
MasterCard will both put out both their results first on Thursday. | :12:46. | :12:48. | |
Joining us is Richard Dunbar, Investment Director | :12:49. | :12:50. | |
We have had a raft of results coming in from various companies. One I | :12:51. | :13:03. | |
want to pick up on his Rolls-Royce. Posting an 80% drop in first-half | :13:04. | :13:10. | |
profit. That is a huge drop. Is it better than a lot of people are | :13:11. | :13:15. | |
expecting? They are poor on the face of it, a little better than the | :13:16. | :13:23. | |
market expected. The 80% fall reflects the mill they have been | :13:24. | :13:27. | |
through. Poor demand for aero engines and marine engines. | :13:28. | :13:31. | |
Rolls-Royce is not making enough profit from the sales of the after | :13:32. | :13:35. | |
service of the engines. They have gone through a massive restructuring | :13:36. | :13:39. | |
programme, that continues, cutting costs, doing things better, | :13:40. | :13:43. | |
restoring the company to the position it should be in. Results | :13:44. | :13:48. | |
slightly better than expected. The market expected a loss. Share price | :13:49. | :13:58. | |
up 15%. That reflects the views of the current management team are | :13:59. | :14:02. | |
doing something right. Confidence going forward. When we talk about | :14:03. | :14:06. | |
Rolls-Royce, people may think of a car, it is not the car company, they | :14:07. | :14:11. | |
make engines, big plane engines. Cracking new engines out at the | :14:12. | :14:18. | |
moment. In the next 20 years, Airbus and Boeing will say they need 20,000 | :14:19. | :14:22. | |
plus new aircraft. One third of the plane to get some will have | :14:23. | :14:25. | |
Rolls-Royce on the side of the engine. One of Britain's's Best | :14:26. | :14:30. | |
companies. One of the best of three engine makers in the world. | :14:31. | :14:33. | |
Gradually getting back to the position it should have been in | :14:34. | :14:38. | |
before. You will stick around to take us through the business papers. | :14:39. | :14:44. | |
Some good stories. Who selected those? | :14:45. | :14:47. | |
Still to come: We'll be speaking to a world leading | :14:48. | :14:50. | |
The man behind brands like Johnnie Walker Scotch whisky, | :14:51. | :14:53. | |
and Guinness beer will joins us live to talk about the company's latest | :14:54. | :14:56. | |
results and why it's too early to say if Brexit is bad news | :14:57. | :14:59. | |
You're with Business Live from BBC News. | :15:00. | :15:13. | |
And now a look at some of the stories from around the UK. | :15:14. | :15:16. | |
Investment in the new nuclear plant to be built in Hinkley Point, | :15:17. | :15:18. | |
Somerset, is set to get final approval today. | :15:19. | :15:22. | |
Our very own Ben Thompson joins me now from The London Stock Exchange | :15:23. | :15:26. | |
Have you got any likes? It looks awfully dark. We will need that new | :15:27. | :15:40. | |
plant just do like you up! Yes, welcome to my new space age area at | :15:41. | :15:46. | |
the London stock exchange. It is a really big day for corporate news. | :15:47. | :15:55. | |
One of the biggest news items we are keeping our eye on is that. EDF will | :15:56. | :15:59. | |
tell us whether they will go ahead with that new nuclear power plant at | :16:00. | :16:06. | |
Hinkley Point in Somerset. There are similar plants being built at the | :16:07. | :16:10. | |
moment which are massively and long facing their opening. In northern | :16:11. | :16:18. | |
France it is 7 billion euros over and at Colston it is six years late. | :16:19. | :16:23. | |
The initial estimates say it will cost around ?18 billion, and if that | :16:24. | :16:28. | |
is the case, it would make it the most expensive nuclear power plant | :16:29. | :16:32. | |
ever built, but some say the costs could escalate as high as ?37 | :16:33. | :16:38. | |
billion. Equally, there is a? Over the timing. When will it be built | :16:39. | :16:43. | |
and when will it "Makes it is designed to meet 7% of the UK's | :16:44. | :16:50. | |
energy needs but it is not due to open until 2025 and it could be | :16:51. | :16:56. | |
later. Way over budget. Another company is Lloyds, their pre-tax | :16:57. | :16:58. | |
profits have more than doubled but on this announcement it will cut | :16:59. | :17:04. | |
some 3000 jobs. We have seen the share price drop dramatically. It is | :17:05. | :17:08. | |
a bank in the eye of the Brexit storm. Yes, and a look at the share | :17:09. | :17:13. | |
price now, it is one of the biggest borders. 3000 more jobs on top of | :17:14. | :17:25. | |
the 9000 jobs it announced it would cut last year. It will also close | :17:26. | :17:28. | |
another 200 branches. That is about 400 branches which will disappear by | :17:29. | :17:30. | |
the end of the high street next year. They say that as a result of | :17:31. | :17:34. | |
changing habits in how we do our banking, but also the record low | :17:35. | :17:38. | |
interest rates which is squeezing the profit margins. They cannot | :17:39. | :17:41. | |
charge more and for the banks it means smaller profits. Thank you for | :17:42. | :17:45. | |
talking to us. The top stories the British travel | :17:46. | :18:04. | |
company Thomas Cook had its results today, the terror attacks, Brexit | :18:05. | :18:09. | |
and the failed coup in Turkey are all leading customers to cancel | :18:10. | :18:14. | |
their holidays. We have a raft of results coming out and the decision | :18:15. | :18:20. | |
by the US Federal Reserve to keep rates on hold. The European markets | :18:21. | :18:22. | |
have opened fairly flat. In the last couple of hours Diageo | :18:23. | :18:25. | |
reported a 2.8% increase in sales in the year 30 June - | :18:26. | :18:28. | |
enabling the company to return You may not have heard of the drinks | :18:29. | :18:31. | |
company, but you'll certainly have heard of some their | :18:32. | :18:39. | |
international drinks brands. Diageo owns Captain Morgan's rum, | :18:40. | :18:42. | |
Smirnoff vodka and Johnnie Walker Aaron is nodding. You are making me | :18:43. | :18:47. | |
thirsty! Although Europe and North America | :18:48. | :19:00. | |
accounts for the majority of the company's sales, | :19:01. | :19:02. | |
Diageo also has a large and growing The company has given investors | :19:03. | :19:04. | |
plenty to cheer about lately, since Britain took the decision | :19:05. | :19:08. | |
to leave the European Union, the company's share price | :19:09. | :19:10. | |
has risen around 16%. Let's speak to Ivan Menezes, | :19:11. | :19:16. | |
Chief Executive Officer of Diageo. Many thanks for joining us on the | :19:17. | :19:25. | |
programme. As I was just saying, your company has been, on the | :19:26. | :19:30. | |
surface of it, a beneficiary of the UK vote to leave the EU. We saw your | :19:31. | :19:36. | |
share price fall but article 50 is yet to be evoked. Are you concerned | :19:37. | :19:40. | |
about what will happen to your business, access to the single | :19:41. | :19:45. | |
market etc, if and when it is a vote? You know, Diageo is a global | :19:46. | :19:50. | |
business. We have about 6% of our business in the UK. Scotch whiskey | :19:51. | :19:56. | |
is 25%. It is one of the most healthy food and drink export | :19:57. | :20:01. | |
businesses the UK has. As it relates to Brexit and what happens, our | :20:02. | :20:13. | |
company is well positioned. If you look at the results we just | :20:14. | :20:15. | |
announced, we grew at 3%, expanded margins. North America is a very | :20:16. | :20:18. | |
important market, it is doing well. Europe is doing well and the | :20:19. | :20:22. | |
emerging markets are growing. I am confident we will work our way | :20:23. | :20:26. | |
through a post-Brexit world. What is most important to us is let's keep | :20:27. | :20:32. | |
Scotch Whisky healthy. This is a thriving, successful business to the | :20:33. | :20:36. | |
UK and my focus is ensuring we get the right conditions to continue to | :20:37. | :20:40. | |
be successful, because the runway for Scotch whiskey around the world | :20:41. | :20:45. | |
is very attractive, particularly in the emerging markets. | :20:46. | :21:03. | |
Ivan, I want to ask you this, you mentioned the United States, the US | :21:04. | :21:07. | |
accounts for nearly half of all your money, let's be frank, all the money | :21:08. | :21:10. | |
you rake in, and you have seen a big improvement in the US, and I wonder | :21:11. | :21:13. | |
what is behind that turnaround, why are the Americans drinking more? The | :21:14. | :21:15. | |
Americans are drinking better and they are moving to spirits better! | :21:16. | :21:17. | |
This works really well for Diageo. What we have done in the last few | :21:18. | :21:21. | |
years is really sharpened up our focus on the consumer, our marketing | :21:22. | :21:28. | |
is much better, and you know I love America, because to me, it is the | :21:29. | :21:33. | |
world's most attractive developing market. You have wonderful | :21:34. | :21:38. | |
demographics, a growing population, the multi-cultural shifts in | :21:39. | :21:43. | |
America, the growth of the U know and Asian consumer is very good for | :21:44. | :21:50. | |
us and it is profitable. Ed is about half our profits and it is the most | :21:51. | :21:57. | |
sustainable and exciting growth engine for the company and our | :21:58. | :22:02. | |
brands do really well. Our higher end brands like tequila and Bullet | :22:03. | :22:08. | |
bourbon are growing right now and it is all about the trend to drink | :22:09. | :22:12. | |
better and people love their cocktails. Indeed they do! One thing | :22:13. | :22:17. | |
I am interested in is do you think it is a good time to renegotiate | :22:18. | :22:21. | |
some of your trade deals, some of the tariffs out there which already | :22:22. | :22:27. | |
exist? The UK now has an opportunity to negotiate its own deals, | :22:28. | :22:32. | |
companies like India, given India in particular has huge tariffs, 150%, | :22:33. | :22:39. | |
as I'm aware of, of wines and spirits, do you see opportunities | :22:40. | :22:48. | |
now? I do. We as the UK need to get out aggressively and create the best | :22:49. | :22:52. | |
trade conditions around the world. You point to India. We have a | :22:53. | :22:58. | |
fabulous business in India in local spirits. It is our number two market | :22:59. | :23:03. | |
after the United States. Indians love whiskey and Scotch whiskey | :23:04. | :23:07. | |
still has very high tariffs. If the UK and India could get to a free | :23:08. | :23:12. | |
trade agreement, that would be very positive for Diageo and I think both | :23:13. | :23:16. | |
countries have a long connection and to me, this is what the new | :23:17. | :23:21. | |
government needs to be out doing, creating the conditions outside the | :23:22. | :23:30. | |
EU to create favourable trade agreements. OK, really good to talk | :23:31. | :23:32. | |
to you, thank you. Ivan Menezes, chief executive of Diageo. And | :23:33. | :23:39. | |
remember, we like props next time! He wants us to drink better. | :23:40. | :23:46. | |
I wonder if Donald Trump is making the Americans drink more? | :23:47. | :23:48. | |
In a moment we'll take a look through the Business Pages but first | :23:49. | :23:51. | |
here's a quick reminder of how to get in touch with us. | :23:52. | :23:54. | |
The Business Live page is where you can stay ahead with all the breaking | :23:55. | :23:58. | |
business news. We will keep you up-to-date with all the details and | :23:59. | :24:04. | |
analysis from the BBC's team right around the world. And we want to | :24:05. | :24:08. | |
hear from you as well. Get involved on the BBC live web page. And you | :24:09. | :24:13. | |
can find us on Twitter and Facebook. Richard Dunbar, Investment Director | :24:14. | :24:22. | |
at Aberdeen Asset Management Can we start with this first story? | :24:23. | :24:34. | |
I'm going off camera now. Sitting is not good. Apparently, it is as bad | :24:35. | :24:39. | |
as cigarette smoking. As someone who started work when you could smoke in | :24:40. | :24:43. | |
the office, I find it hard to believe this is the case but | :24:44. | :24:46. | |
nevertheless, Cambridge University have told us it is. They say if you | :24:47. | :24:50. | |
walk around for an hour, that is all you need to do. You do not need to | :24:51. | :24:54. | |
join the gym and standing up in itself is a good thing is so good | :24:55. | :24:56. | |
news for all of us who wish to cancel our gym | :24:57. | :25:13. | |
subscription! A scary statistic that sitting down for eight hours | :25:14. | :25:15. | |
straight increases the risk of premature death for 60%. In our | :25:16. | :25:17. | |
office there are buttons which raise the desk up so you could stand | :25:18. | :25:20. | |
instead of sit but sometimes it is like a field of sunflowers rising | :25:21. | :25:23. | |
and falling as people rise and fall at their computers but nevertheless, | :25:24. | :25:26. | |
it is positive for this kind of action. US real estate company | :25:27. | :25:34. | |
buying a big chunk of the UK? They are buying into Pinewood Studios. It | :25:35. | :25:40. | |
is a US investor taking advantage of a weaker sterling and still having | :25:41. | :25:43. | |
confidence in the UK real estate market. Some we were worried about | :25:44. | :25:47. | |
after the Brexit vote and it seems this company is less worried than | :25:48. | :25:52. | |
others. The fifth biggest economy in the world still standing strong! | :25:53. | :25:56. | |
Thank you. That is all we have time for. | :25:57. | :25:57. | |
There will be more business news throughout the day on the BBC Live | :25:58. | :26:02. | |
webpage and on World Business Report. | :26:03. | :26:04. |