:00:00. > :00:13.Chinese investment in Europe and the US continues to grow
:00:14. > :00:15.reaching almos $100 billion last year - but can the trend continue?
:00:16. > :00:40.Live from London, that's our top story on Monday 6th February.
:00:41. > :00:48.So why is investment from a nine chain in Europe and the US --
:00:49. > :01:11.mainland Europe and We will also speak to the
:01:12. > :01:14.award-winning business leader who took over a waste management company
:01:15. > :01:19.at the age of 19. Also today - Ryanair
:01:20. > :01:21.profits are down - So do you still have
:01:22. > :01:41.the cheap flights bug? If you are planning your holidays,
:01:42. > :01:42.why not tell us where you are off to?
:01:43. > :01:46.The political events of 2016 may have ignited an unprecedented period
:01:47. > :01:49.of uncertainty for the global economy but one thing that appears
:01:50. > :01:51.to remain unaffected is the growing appetite of Chinese investors.
:01:52. > :01:53.Last year Chinese investment in the US increased
:01:54. > :02:05.Meanwhile, Chinese investment into Europe grew by 90 percent.
:02:06. > :02:12.All of this gives the impression 2016 was a good year for Western
:02:13. > :02:16.economies when it comes to foreign investment.
:02:17. > :02:22.Well the UK is about to begin a two-year period of Brexit
:02:23. > :02:24.negotiations and this echoes wider concerns over the health
:02:25. > :02:33.France, Germany and the Netherlands are all set to head to the polls
:02:34. > :02:35.later this year and Eurosceptic parties are gaining ground
:02:36. > :02:40.And in the US the uncertainty about what the Trump administration
:02:41. > :02:46.means for future deals with China is very unclear.
:02:47. > :02:50.During the recent election campaign he vowed to impose punitive
:02:51. > :02:53.Add to that moves from Chinese authorities to crackdown on money
:02:54. > :03:01.Chinese overseas deals could have been worth billions of dollars more
:03:02. > :03:08.if Beijing had not blocked some 30 acquisitions with Europe and the US.
:03:09. > :03:11.Tim Gee is Mergers and Aquisitions Partner at Baker McKenzie and one
:03:12. > :03:16.He explained why those deals were blocked.
:03:17. > :03:21.Some of the transactions and ousted not complete because the Chinese bid
:03:22. > :03:28.was outbid. The Chinese bid for London City Airport was outbid by a
:03:29. > :03:35.Canadian pension fund. Then you also have regulatory control from the
:03:36. > :03:45.West, particularly in the US. Some deals were blocked there, including
:03:46. > :03:49.European deals. Then you have controls within China, and what we
:03:50. > :03:56.have seen is concern over capital outflow from China, and that has
:03:57. > :03:59.caused some transactions to be pulled as a result of China saying,
:04:00. > :04:05.we don't want this to happen. Linda Yueh is a Fellow in Economics
:04:06. > :04:08.at the University of Oxford and an Adjunct Professor
:04:09. > :04:19.of Economics at London Nice to see you, Linda. This report
:04:20. > :04:22.is interesting on what happened last year, because the numbers are
:04:23. > :04:27.staggering, the amount that was invested in the US and Europe, but
:04:28. > :04:34.also the amount that wasn't. Talk us through a bit more the reasons why.
:04:35. > :04:41.The Chinese are trying very hard to control out what capital movement.
:04:42. > :04:45.There are some economic reasons. One is to stabilise the value of the
:04:46. > :04:53.Chinese currency. Remember, China pegs its currency. They have to
:04:54. > :05:00.control the amount of currency flowing outside its borders. The
:05:01. > :05:08.other reason is they don't want companies companies being bought,
:05:09. > :05:11.but that is how commercial transactions should work. That is
:05:12. > :05:16.more of an excuse. The real reason is that they want to control the
:05:17. > :05:19.capital markets, just as they control pretty much everything else
:05:20. > :05:24.in the financial markets in the country. I wonder what your take is
:05:25. > :05:29.on the future appetite of Chinese investors investing in the US when
:05:30. > :05:33.we have quite convert of statements from Donald Trump, accusing China of
:05:34. > :05:39.manipulating its currency, questioning the one China policy.
:05:40. > :05:45.Will that affect investors' willingness to pour money in? I
:05:46. > :05:48.think the rhetoric will have some impact, but I wouldn't overstate it.
:05:49. > :05:52.Politically, there has always been a lot of tension between the US and
:05:53. > :05:57.China, but a lot of businesses do deals anyway. The Chinese don't view
:05:58. > :06:01.Donald Trump that negatively. There are some who are worried, but there
:06:02. > :06:09.are others who say, he is a businessman. He welcomed some
:06:10. > :06:16.Chinese companies to make jobs in America. There are only two roles in
:06:17. > :06:22.an American economy, he said - hire American people and by American
:06:23. > :06:37.products. -- purchase American products. . There has been a shift
:06:38. > :06:40.away from... The Chinese Government is attempted to control not just the
:06:41. > :06:47.financial markets but the whole economy. China's growth is slowing.
:06:48. > :06:51.It is one of the reasons why big companies want to invest overseas,
:06:52. > :06:55.to diversify. The Government doesn't want them to put money into things
:06:56. > :07:01.that they don't think will help china's growth. They want
:07:02. > :07:05.innovation, expertise and things like high-end financial services,
:07:06. > :07:10.high-tech manufacturing, so their investment in America and Europe
:07:11. > :07:15.tends to be permitted if it is of that ilk. It tends to be scrutinised
:07:16. > :07:18.if it is more about buying entertainment companies. Thanks,
:07:19. > :07:22.Linda. All was good to have you on the programme. There is more about
:07:23. > :07:25.that on our website. Take a look when you have time. Some other news
:07:26. > :07:28.now. Apple, Facebook, Google
:07:29. > :07:31.and Microsoft are among 97 companies to have filed an official court
:07:32. > :07:33.document opposing Donald The US President's executive order
:07:34. > :07:38.prevents people from seven mainly Muslim countries
:07:39. > :07:39.entering the United States. On Saturday, the federal appeals
:07:40. > :07:41.court rejected the Trump administration's request
:07:42. > :07:43.to reinstate the ban after it was initially
:07:44. > :07:49.blocked a day earlier. Ryanair has reported an 8% fall
:07:50. > :07:51.in profits as increased competition forced the Irish airline
:07:52. > :07:54.to cut fares. The company says that average ticket
:07:55. > :07:57.prices may have fallen by as much as 15 per cent over
:07:58. > :08:01.the winter period. Ryanair has warned that 2017
:08:02. > :08:06.will continue to be a difficult year for the industry,
:08:07. > :08:09.but the carrier left its profit Two of Japans biggest
:08:10. > :08:22.automakers have announced Toyota and Suzuki said they'd been
:08:23. > :08:34.working on the deal since October. This is interesting, isn't it?
:08:35. > :08:40.That's right. I just want to mention that Toyota has just released its
:08:41. > :08:44.latest earnings numbers. They have raised their profit forecast thanks
:08:45. > :08:52.to stronger sales. They say they expect profit of 15 billion US
:08:53. > :08:59.dollars in the financial year to March, a 10% increase from the last
:09:00. > :09:05.forecast. Toyota last year lost its title as the world's biggest
:09:06. > :09:09.car-maker to Volkswagen. The industry is getting more
:09:10. > :09:13.competitive. Tidying up with Suzuki is a means to address that. They
:09:14. > :09:17.will develop green cars and other technologies, but it is worth
:09:18. > :09:20.mentioning that both companies have a history of failed alliances, so
:09:21. > :09:27.let's hope that this relationship works out. Thank you very much.
:09:28. > :09:31.Asian markets rose as investors tracked a record on Wall Street.
:09:32. > :09:38.That was fuelled by a better than expected jump in US jobs.
:09:39. > :09:40.Financial stocks in particular have been boosted by Donald Trump's
:09:41. > :09:45.He's likely to relax the tighter regulations that were imposed
:09:46. > :09:53.on banks after the 2008 crash to try and prevent a repeat of that.
:09:54. > :09:59.In Europe the main markets opened a shade higher - but fairly flat.
:10:00. > :10:01.Some things to watch out for this week -
:10:02. > :10:07.investors will be looking at the results from BP and Total
:10:08. > :10:11.They are two of Europe's biggest energy companies.
:10:12. > :10:16.Will their results reflect the rebound in oil prices?
:10:17. > :10:18.And Samira Husain has the details about what's ahead
:10:19. > :10:33.If the last two weeks were anything to go by, we could see another busy
:10:34. > :10:38.week. It will also be a busy week per business news, as companies
:10:39. > :10:44.continue to report earnings. General Motors will release results on
:10:45. > :10:50.Tuesday and it is expected to have a record year. Coca-Cola is also
:10:51. > :10:53.reporting this year. Fizzy drinks are going flat as consumers look for
:10:54. > :10:58.a healthier options. The company has been trying to diversify away from
:10:59. > :11:03.sugary drinks into coconut and vitamin water, but it hasn't been
:11:04. > :11:13.enough -- but has it been enough? Wall Street is -- twitter is
:11:14. > :11:18.reporting as well. Joining us is Trevor Greetham,
:11:19. > :11:31.Head of multi asset A lot going on, as usual. We'd been
:11:32. > :11:34.touching on some of the issues. Let's talk about travel, because
:11:35. > :11:42.that seems to be impacting trade in Asia, with shares doing well.
:11:43. > :11:51.Perhaps an executive order on financial regulation coming up soon?
:11:52. > :11:56.Yes, and you will generally here Donald Trump using the short form of
:11:57. > :12:05.the consumer protection act. He wants to deregulate the American
:12:06. > :12:13.market generally, which would mean getting banks... Wasn't the
:12:14. > :12:19.regulation brought in to protect us against another 2008 - style crisis?
:12:20. > :12:24.Yes. It is that a question about whether it will be a good thing or a
:12:25. > :12:29.bad thing, but it will have to go through Congress. There will be
:12:30. > :12:33.opposition. Generally, we are testing America's separation of
:12:34. > :12:41.powers. Donald Trump will say stuff and then see what happens. The
:12:42. > :12:46.challenge to immigration. Companies now joining the legal case to try
:12:47. > :12:50.and get the travel ban overturned. From his point of view, he can't
:12:51. > :12:54.lose, because he says, I will ban people from these countries, and he
:12:55. > :13:00.is then stopped from doing it, but he can say to his supporters, I
:13:01. > :13:05.tried and I was stopped by so-called judges and so-called politicians. He
:13:06. > :13:08.has nothing to lose. There is a continual war in the markets between
:13:09. > :13:14.what it sees good, such as stimulus, and what they see as bad, all the
:13:15. > :13:20.crazy stuff. Other crazy stuff coming up this week - what are you
:13:21. > :13:24.watching? Amongst all this political noise, the world economy is strong,
:13:25. > :13:32.which is good. Markets. China is strong this year, whereas it was
:13:33. > :13:40.weak for four or five years. Maybe they don't want to slam the brakes
:13:41. > :13:41.on, so it will stay quite strong. Thank you for joining us.
:13:42. > :13:44.Still to come: We'll speak to the woman who unexpectedly took
:13:45. > :13:47.over the family firm at the age of 19 and turned it into
:13:48. > :13:55.You're with Business Live from BBC News.
:13:56. > :14:07.Let's tell you a bit more about Ryanair reporting and 8% fall in
:14:08. > :14:15.profits. They said average fares fell to ?28 per customer, a fall of
:14:16. > :14:22.17%. Traffic was up 16% on last year. The chief financial officer of
:14:23. > :14:27.Ryanair joins us now. It's an interesting time for you as a
:14:28. > :14:30.company, as many of your rivals. More people travelling but you're
:14:31. > :14:35.making less money per passenger and your profits are going down. Good to
:14:36. > :14:40.talk to you. We're having a relatively good year, to be honest.
:14:41. > :14:51.Our profits in the first nine months were up. As you said, passenger
:14:52. > :15:01.numbers were exceptionally strong. We had record load factors of 95%.
:15:02. > :15:08.An average fare of ?28. Fares could be down as much as 15% in the fourth
:15:09. > :15:13.quarter. We have maintained our guidance of 1.35 billion, which
:15:14. > :15:18.would be record profits for Ryanair this year. It really is an issue for
:15:19. > :15:21.you, isn't it? We have heard you will sustain those low prices the
:15:22. > :15:24.rest of this year and probably the first quarter of next, so your
:15:25. > :15:32.profits will be more and more squeezed, when they? -- won't they?
:15:33. > :15:36.We have the lowest fares of anyone out there, and we announced this
:15:37. > :15:42.morning that our total costs will be down by 4%. When you consider that
:15:43. > :15:49.our next nearest competitor's 's 40% higher than ours, and yet we're
:15:50. > :15:52.looking at unit cost reductions, excluding fuel, that puts is in a
:15:53. > :15:56.strong position relative to everyone else. We're better hedged next year
:15:57. > :16:01.compared to competitors. We have compared to competitors. We have
:16:02. > :16:06.which is our biggest cost, and there which is our biggest cost, and there
:16:07. > :16:09.will be significant savings on fuel. We are very good at cutting costs in
:16:10. > :16:16.the businesses and keeping competitive advantage. We grow
:16:17. > :16:18.profitably on the back of it. Next year, our plan is to deliver 130
:16:19. > :16:28.million customers. That's the chief financial officer.
:16:29. > :16:29.More detail is on our website on Ryanair's earnings and other
:16:30. > :16:33.companies out with news. Our top story, Chinese direct
:16:34. > :16:38.investment into the US and Europe more than doubled to a record
:16:39. > :16:40.$94 billion last year. Lawyers Baker McKenzie say
:16:41. > :16:46.that was despite $75 billion worth A quick look at how
:16:47. > :16:59.markets are faring. This is how they're looking after a
:17:00. > :17:04.fairly flat open. The FTSE is up a shade. The DAX and the Cac down
:17:05. > :17:10.slightly. In the UK alone, the industry
:17:11. > :17:20.is worth more than ?0.5 billion. But it is in a predominantly
:17:21. > :17:22.male-run sector, Jacqueline O'Donovan stands
:17:23. > :17:27.out as a rare female leader. At the age of 19, Jacqueline took
:17:28. > :17:30.over the family business 30 years on and O'Donovan Waste
:17:31. > :17:37.Disposal is a fast-growing firm It employs 160 people
:17:38. > :17:43.and mostly operates in London and the South East,
:17:44. > :17:45.a complex and very Jacqueline O'Donovan,
:17:46. > :18:01.Managing Director Tell our viewers about the beginning
:18:02. > :18:04.for you. Because your father died suddenly when you were just 17. He
:18:05. > :18:09.was running the company? He was, yes. He had a successful business
:18:10. > :18:13.and he died back in 1985 when I was 17 and I'm the youngest of four. The
:18:14. > :18:18.youngest of four? The youngest of four. But it fell on your shoulders
:18:19. > :18:23.to run the business? It fell on all our shoulders, but it took a couple
:18:24. > :18:26.of years to stabilise and once it stabilised, we picked our role and
:18:27. > :18:31.mine was managing director. How did you manage that at such a young age?
:18:32. > :18:34.You're running a company, what sort of business experience did you have
:18:35. > :18:41.at that stage and were you just winging it? I was winging it. I ran
:18:42. > :18:47.out of school at 16. I couldn't wait to get out the gatesment I had a job
:18:48. > :18:51.as a childminder in Germany which I didn't take on and the rest is
:18:52. > :18:55.history. What reaction do you get from friends when you tell them your
:18:56. > :19:00.line of work? They say what line of work are you in and I say, "I bet
:19:01. > :19:04.you can't guess." Which they can't! It is a difficult business to be in
:19:05. > :19:08.anyway, I imagine 30 years ago, at the age of 19, being a woman running
:19:09. > :19:11.this company in London it was extremely tough. What kind of
:19:12. > :19:16.barriers and difficulties did you face? First of all, the biggest
:19:17. > :19:19.barrier was I was a female in a male dominated industry which I think
:19:20. > :19:24.bothered the men more than it bothered me. Then I didn't play
:19:25. > :19:29.golf. That was also a bit of a hurdle especially when it came to...
:19:30. > :19:34.Do you play golf now? No, no time to shop or golf. That was a hurdle. But
:19:35. > :19:39.I just saw them as challenges and worked my way over them each and
:19:40. > :19:43.everyone. How did you overcome them? Was it by proving to people that you
:19:44. > :19:46.could hold your own and you were just as able to grasp this industry
:19:47. > :19:51.as they were? I didn't really think about it at all. It wasn't something
:19:52. > :19:55.that I thought about, oh, my gosh, I'm a woman in a male dominated
:19:56. > :19:59.industry. It was something I took as a challenge. I enjoy a challenge and
:20:00. > :20:04.I got on with it. The males felt more intimidated than I did.
:20:05. > :20:10.The actual industry itself has changed in that period of time? Oh,
:20:11. > :20:14.massively. We just chuck everything away in one bag and you guys would
:20:15. > :20:20.take it away. I imagine in the UK many viewers around the world have a
:20:21. > :20:24.similar experience, we're separating our waste, we might get fined if we
:20:25. > :20:28.don't do it properly and it is left behind. It has completely changed.
:20:29. > :20:34.What has that meant for your business? It brought us to the fore
:20:35. > :20:37.front. 20 years ago if you were at a social event with regards to
:20:38. > :20:40.business you would tell people you were in waste disposal, it was right
:20:41. > :20:44.move on to the next question or the next subject. Now, they want to know
:20:45. > :20:48.how you do it, what equipment is involved, whether people are still
:20:49. > :20:53.involved, and people are more interested in how it's done. Is it
:20:54. > :20:58.harder to make money now? Oh, yeah, without a shadow of a doubt because
:20:59. > :21:03.it takes a lot more money, a lot more equipment to recycle more. So
:21:04. > :21:07.yeah, the prices have gone completely. What's your ambition for
:21:08. > :21:11.the business. Where do you take a waste disposal business in the
:21:12. > :21:16.future? Bigger and better things. I would like to try different waste
:21:17. > :21:22.streams. We would like to expand as a family. So yeah, bigger and
:21:23. > :21:26.better. Are we sitting on a waste time bomb in London? I imagine any
:21:27. > :21:30.capital city around the world in terms of waste is a big problem? I
:21:31. > :21:37.wouldn't say it is a time bomb. I think it is very well handled.
:21:38. > :21:41.Behind the scenes what normal people don't see is very well handled. How
:21:42. > :21:45.much is landfill and how much in terms of percentages? We are 100%
:21:46. > :21:49.diverted from landfill and we have been for years. The old landfill,
:21:50. > :21:53.the biggest issue is food waste going to landfill. That's the next
:21:54. > :21:58.hurdle for the food waste industry. I could talk to you for hours,
:21:59. > :22:03.couldn't you? Yes. Fascinating. We can't. Thank you for coming in.
:22:04. > :22:08.Really good to have you on the programme. Thanks.
:22:09. > :22:11.And now for the latest instalment of our ongoing CEO secrets series
:22:12. > :22:14.we're going to hear from the head of a family company that's now
:22:15. > :22:17.Paul Symington is chairman of the Portuguese wine company
:22:18. > :22:21.This is the business advice he wishes he had been given
:22:22. > :22:26.If you were going to have a big row, leave it for the really important
:22:27. > :22:28.things and don't have arguments over the small things.
:22:29. > :22:39.We're a family business that goes back into the 19th century.
:22:40. > :22:43.A family business that is united is unbeatable and there
:22:44. > :22:46.is incressing evidence of the success of family businesses
:22:47. > :22:52.Put aside the little irritations because they're not important.
:22:53. > :22:54.Take a deep breath, sleep on it, come back and then
:22:55. > :22:59.If you let small niggly things get in the way,
:23:00. > :23:09.you really break up a really, really fantastic business.
:23:10. > :23:16.There you have it. Loads of top tips from bosses on the programme today.
:23:17. > :23:18.Let's see what other stories are being talked
:23:19. > :23:30.We have to talk about Brexit. It is on the front page of the FT today. A
:23:31. > :23:33.survey which indicates big quota companies are negative on the UK
:23:34. > :23:38.following the vote to leave the European Union. Which is hardly
:23:39. > :23:42.surprising given in the run-up in the campaign most of these people
:23:43. > :23:48.would have campaigned in favour of Remain. That's despite all the data,
:23:49. > :23:54.you know, proving them perhaps wrong? Yeah, it shows the UK is
:23:55. > :23:59.growing reasonably at the quarter it was 0.6% one of the best of the G7.
:24:00. > :24:01.Are they wrong? Well, it matters if they have a negative outlook because
:24:02. > :24:05.they are the ones who drive investment into the UK. They are the
:24:06. > :24:12.ones who provide jobs for the k. I must say also the survey is at odds
:24:13. > :24:16.with the ones I've talked to, most business people are prag pattic
:24:17. > :24:19.about life. Most business people I speak to are let's get on it. Some
:24:20. > :24:24.companies will have to move people, but by and large business people are
:24:25. > :24:28.flexible and adaptable, I think. Let's talk about this fascinating
:24:29. > :24:33.story about the boss of Tiffany. He was shown the exit door in a kind
:24:34. > :24:39.of... He has been in the job for two years. He got the boot on Sunday
:24:40. > :24:45.night they announced it. Just before the Super Bowl when Tiffany had one
:24:46. > :24:49.of its first time ads? Tiffany sells upmarket jewellery. Tourists going
:24:50. > :24:54.to New York, you know, it costs them more to buy Tiffany jewellery, if
:24:55. > :24:58.you know New York, Tiffany's main store is right beside Trump Tower.
:24:59. > :25:02.They said it was getting hard for them to get people in and out of the
:25:03. > :25:08.door because of the motorcades arriving, it is a double Trump
:25:09. > :25:14.thump. Why get rid of the boss? That's not his fault? It is often
:25:15. > :25:18.the boss that carries the can. It is difficult for Tiffany. All the up
:25:19. > :25:21.market brands are flying on the edge. One mistack and you can easily
:25:22. > :25:28.fall out of favour. There you go. On the ropes. He's looking for a new
:25:29. > :25:32.job. Thanks Dominic. That's the end of another packed show. It flies by.
:25:33. > :25:34.There will be more business news throughout the day on the live page
:25:35. > :25:36.and on world business report. We will see you soon. Take care.
:25:37. > :26:10.Bye-bye. Hello there. The week has started on
:26:11. > :26:14.a cold note with quite a widespread frost this morning. The week will
:26:15. > :26:19.end on a cold note as well as I'll show new a moment, but we have a wet
:26:20. > :26:20.and windy interlude to get through first and that's heading our way