:00:00. > :00:09.This is Business Live from BBC News with Aaron Heslehurst and Ben Bland.
:00:10. > :00:13.Will US airlines reach new heights under President Trump?
:00:14. > :00:17.Their bosses land at the White House with concerns over fast-growing Gulf
:00:18. > :00:39.Live from London, that's our top story on Thursday 9th February.
:00:40. > :00:43.The President who used to run his own airline but failed -
:00:44. > :00:46.says he wants the bosses of US carriers to "buy American
:00:47. > :00:49.and hire American", but what can he to do help them?
:00:50. > :01:02.The little blue bird will tell us how much money's it's making
:01:03. > :01:04.or losing later today, but will Twitter get a big boost
:01:05. > :01:13.And, as always, we'll bring you the latest on the markets
:01:14. > :01:16.and tell you why today's driver is not a Trump on or
:01:17. > :01:20.And we'll be getting a rather colourful inside track today.
:01:21. > :01:23.The boss of one of the world's biggest paint firms ColArt will give
:01:24. > :01:26.us the brush strokes on how he's trying to make the environment
:01:27. > :01:29.And buyers pushed up shares in Snap Interactive,
:01:30. > :01:31.a little-known US start-up, mistaking it for Snapchat.
:01:32. > :01:33.So today we want to know, what's the most expensive
:01:34. > :01:49.Let us know - just use the hashtag #BBCBizLive.
:01:50. > :01:55.Then, if you use any more puns today, we are going to shoot you!
:01:56. > :01:57.We start in Washington where the bosses of America's top
:01:58. > :01:59.airlines and airports are due to meet President Trump
:02:00. > :02:04.There are some major issues on the table that could affect
:02:05. > :02:13.As we know from his inauguration speech,
:02:14. > :02:18.Mr Trump said he would follow two simple rules - "Buy American
:02:19. > :02:29.That could mean a major boost for plane-maker Boeing,
:02:30. > :02:32.if he leans on US airlines to buy from them.
:02:33. > :02:40.European rival Airbus also operates factories in the US
:02:41. > :02:45.and buys billions of dollars worth of US components like engines.
:02:46. > :02:48.Airbus claims to support 245,000 US jobs.
:02:49. > :02:57.Then there's the issue of foreign airlines operating in the US.
:02:58. > :03:03.This one, Norwegian, was given a foreign carrier licence,
:03:04. > :03:07.allowing them to expand their routes to and from the US -
:03:08. > :03:15.it was one of the last acts of the Obama administration.
:03:16. > :03:20.It caused howls of protest from US airlines and aviation unions.
:03:21. > :03:24.Again there's another side to it - Norwegian says it is creating
:03:25. > :03:28.at least 150 new US jobs and has ordered more
:03:29. > :03:34.than $18 billion worth of jets from Boeing.
:03:35. > :03:36.So what about the whole question of open skies,
:03:37. > :03:39.the deals that mean countries open their routes to each other?
:03:40. > :03:45.The US currently has 120 open skies agreements.
:03:46. > :03:47.US airline bosses are particularly unhappy about the expansion
:03:48. > :03:58.of Emirates, Etihad Airways, and Qatar Airways in the US.
:03:59. > :04:01.Last week they wrote to the government claiming Gulf
:04:02. > :04:05.carriers have received $50 billion in handouts from their governments
:04:06. > :04:11.over the past decade - something the Gulf airlines deny.
:04:12. > :04:16.The President of Emirates has long argued that an attack
:04:17. > :04:24.on their business by Washington would only damage the US economy.
:04:25. > :04:26.Well, Norman Gage is an Airline industry analyst
:04:27. > :04:37.He joins us live down the line now. Norman, this conversation happening
:04:38. > :04:41.between the airlines and President Trump, what could be the potential
:04:42. > :04:46.impact of it on people like you and I, passengers, and for the flights
:04:47. > :04:50.that we want to get and book? I'm not sure it will have too much
:04:51. > :04:54.effect on you and I because it is really affecting inbound flights to
:04:55. > :05:01.America from the home bases of these particular airlines. Those airlines,
:05:02. > :05:07.through their home bases, act as a hub and therefore draw in people
:05:08. > :05:11.from the far east and from Africa to transfer and then fly on to America.
:05:12. > :05:17.So you and I, I'm not too sure it will have a great impact. In that
:05:18. > :05:22.case, then, there is the long-running competition between
:05:23. > :05:29.Boeing and Airbus, presumably Boeing will be pushing very hard to ride on
:05:30. > :05:34.the back of Donald Trump's ambitions for by American, higher American.
:05:35. > :05:39.What could that potentially do to the balance between the two major
:05:40. > :05:43.players? I think it would depend on if they exist, but I think a lot of
:05:44. > :05:49.the fleet order from these airlines has already been placed, so to
:05:50. > :05:53.cancel those would cost a lot of money, to purchase American, they
:05:54. > :05:56.would have to say, OK, if we are denied landing rights everywhere
:05:57. > :06:00.that we want to fly to under the bilateral agreement, if that gets
:06:01. > :06:04.torn up, then we have to reassess where those aircraft are positioned.
:06:05. > :06:09.But to suddenly switch from Airbus to Boeing can take a number of years
:06:10. > :06:14.and therefore may not be physically or financially viable. We have also
:06:15. > :06:20.missed out as well be Iran situation. Iran air, I believe, were
:06:21. > :06:27.going to be a massive purchaser of aircraft and have turned to Airbus
:06:28. > :06:31.to purchase those. Norman, can I ask, if President Trump gives these
:06:32. > :06:36.airline bosses are supportive ear, these airline bosses have been
:06:37. > :06:41.screaming mad against the likes of Emirates and Etihad, but in
:06:42. > :06:46.particular emirates. If he does give them a supportive ear and looks at,
:06:47. > :06:50.I don't know, maybe looking again at the open skies agreement, there
:06:51. > :06:55.could be huge ramifications for the global aviation industry? Yes, there
:06:56. > :07:00.could be, but then you also have to look at how many new people are
:07:01. > :07:04.these airlines lifting and taking to America, first-time riders. A lot of
:07:05. > :07:08.the routes that emirates have been developing into Florida, leisure
:07:09. > :07:13.destinations, so the implications go beyond the airlines. Changing the
:07:14. > :07:17.subject slightly, one of the things that Trump could be smoothing over
:07:18. > :07:23.with the airlines is to keep down the price of oil. His economic
:07:24. > :07:27.policies and some of his appointments seem to drive the push
:07:28. > :07:33.to keep drilling and pumping, so if they can keep the price of oil below
:07:34. > :07:39.$50 per barrel, the airlines will be making good profits and all of this
:07:40. > :07:44.other noise just is noise. Norman, thank you very much, good to get
:07:45. > :07:47.your thoughts. Did you know that President Trump
:07:48. > :07:51.used to run his own airline? I did, because I was listening when
:07:52. > :07:58.you told me! I do pay attention! That is how you
:07:59. > :08:02.become a millionaire, by running an ally. He started off as a
:08:03. > :08:05.billionaire! Oh, I see.
:08:06. > :08:07.-- by running an airline. Let's look at some of the news.
:08:08. > :08:09.Democrats have condemned President Donald Trump's tweet
:08:10. > :08:11.attacking a clothing retailer after it dropped a fashion line
:08:12. > :08:15.Mr Trump tweeted that "Ivanka has been treated so unfairly"
:08:16. > :08:18.A Democratic senator called the post "inappropriate"
:08:19. > :08:20.and an ex-White House ethics tsar dubbed it "outrageous".
:08:21. > :08:22.Earlier this month Nordstrom became the fifth retailer to drop
:08:23. > :08:29.the Ivanka Trump clothing line, citing lack of sales.
:08:30. > :08:31.Germany's exports reached a record high last year thanks to stronger
:08:32. > :08:36.demand from other European Union countries as the country
:08:37. > :08:40.recorded its biggest ever trade surplus of $270 billion.
:08:41. > :08:43.That was acheived despite a fall in the value of goods sold outside
:08:44. > :08:49.Last week, German Chanellor Angela Merkel was forced to reject comments
:08:50. > :08:52.made by one of President Trump's top business advisers that Germany
:08:53. > :08:57.uses an undervalued euro to exploit trading partners.
:08:58. > :09:00.Nissan has reported a 3.5% increase in profit, with sales rising
:09:01. > :09:05.The Japanese carmaker recorded profits of $1.2 billion
:09:06. > :09:15.Meanwhile, a South Korean court has ruled against Nissan,
:09:16. > :09:18.saying that the company had installed an emissions-cheating
:09:19. > :09:30.device in its Qashqai sport utility vehicle.
:09:31. > :09:35.Shares in Toshiba fell more than 12% at one point today.
:09:36. > :09:39.This has been going on for some time. Yes, its memory chip business,
:09:40. > :09:51.let's find out more. Shares ending the day about 7% lower
:09:52. > :09:55.after falling as much as 12%. It has really been nonstop for the company,
:09:56. > :10:02.which is just recovering from that accounting scandal since in December
:10:03. > :10:05.the company said it could face a huge write-down in its US nuclear
:10:06. > :10:12.business next Tuesday, we will find out exactly how much that breakdown
:10:13. > :10:16.is but reports suggest six. In order to raise money, that is why the
:10:17. > :10:21.company is selling its memory chip business, which is making a lot of
:10:22. > :10:26.money for the company, reports have been emerging about who might be
:10:27. > :10:33.interested in that unit, though it seems like all the industry rivals,
:10:34. > :10:36.investment fund. investment fund.
:10:37. > :10:36.Thank you for that, we will talk to you soon.
:10:37. > :10:40.Let's stay with the markets. Most Asian markets climbed
:10:41. > :10:43.to today as investors grew more confident about China,
:10:44. > :10:45.while the dollar slightly firmed in the wake of growing concerns over
:10:46. > :10:49.political instability in Now the Nikkei is down
:10:50. > :10:55.because of a stronger Yen and Japanese investors keen to see
:10:56. > :10:59.how the meeting with PM Abe goes tomorrow in Washington
:11:00. > :11:05.with President Donald Trump. In Europe, the uncertainty that has
:11:06. > :11:12.tainted trading floors for weeks continues to weigh as Donald Trump
:11:13. > :11:14.appears to press on with a protectionist agenda but provides
:11:15. > :11:17.no details on his pledge to ramp up Talking of the US, let's find
:11:18. > :11:29.out what'll be making the biz headlines there today -
:11:30. > :11:31.here she is, here's Samira. The results will certainly take more
:11:32. > :11:34.than 140 characters to get through. That's right, Twitter
:11:35. > :11:36.will be reporting earnings, and it seems measures
:11:37. > :11:39.to control costs are working. Twitter had been looking to try
:11:40. > :11:42.and sell itself over the past few months, but interest from potential
:11:43. > :11:45.buyers eventually waned. Coca-Cola's earnings may be
:11:46. > :11:48.fizzling out somewhat. The continued decline of fizzy
:11:49. > :11:51.drinks have the earnings of the world's largest beverage
:11:52. > :11:54.maker going flat. Even though Coca-Cola has been
:11:55. > :11:59.diversifying away from sugary sodas and into things like coconut
:12:00. > :12:03.and vitamin waters, the moves haven't been enough to offset
:12:04. > :12:06.the slide of sales of sodas. And finally, the owner
:12:07. > :12:09.of the Wall Street Journal and the New York Post will be
:12:10. > :12:12.reporting earnings and the turbulent US elections will be seen
:12:13. > :12:14.as a boost for News Corp, as it brought in more
:12:15. > :12:21.subscribers for its news pages. Joining us is Kathleen Brooks,
:12:22. > :12:33.research director for City Index. Good morning. Can I start on
:12:34. > :12:38.Twitter. Twitter will tell us some numbers later on but five years ago
:12:39. > :12:43.when Facebook went public we all sat here, I sat here with many experts
:12:44. > :12:48.going, Facebook's got to learn how to monetise those users, make money
:12:49. > :12:55.from adverts... Facebook cracked it. Twitter still stumbles. It really
:12:56. > :13:01.does. There are things, these live videos which are expected to... This
:13:02. > :13:06.is a new thing? It is, which could boost expectations, but it hasn't
:13:07. > :13:09.been able to monetise and increase its monthly average users, that has
:13:10. > :13:12.been stagnant, and half of the reason is because there is a lot of
:13:13. > :13:17.trolling and abuse on Twitter which puts people off from even signing
:13:18. > :13:21.up. The old adage that any publicity is good publicity and you cannot get
:13:22. > :13:25.more publicity than the President of the United States using you as a
:13:26. > :13:32.platform to get messages out. Do you think they will benefit from that?
:13:33. > :13:35.From a tweeter in chief?! It'll be interesting, because on their
:13:36. > :13:40.conference call after they announced earnings, they will have to address
:13:41. > :13:43.it, they will be asked about Trump and it has attracted a lot of people
:13:44. > :13:47.to follow him, whether that turns into users we will have see.
:13:48. > :13:53.Switching to Greece, Europe again watching closely, it has not gone
:13:54. > :14:02.away, and you actually told us this, the Greeks by Finance minister Yanis
:14:03. > :14:09.Varoufakis is in the building somewhere! Not on this show! But
:14:10. > :14:14.Greece will be back in the spotlight soon? It has a big debt repayments
:14:15. > :14:19.to pay back in July, tonnes of European election is going on and
:14:20. > :14:21.European governments don't want to do any type of consolidations or
:14:22. > :14:26.anything on their debt, they want them to pay back their debt, get the
:14:27. > :14:29.IMF is going against European authorities and saying, you have to
:14:30. > :14:33.do because there is no way they can grow themselves out of this crisis,
:14:34. > :14:38.you have to reduce the debt you want back, give yourselves a haircut
:14:39. > :14:41.otherwise the debt level will not be sustainable. This has been a problem
:14:42. > :14:47.now for seven years, where they have been not growing very well and in
:14:48. > :14:51.massive amounts of debt. They will never pay that back but because of
:14:52. > :14:54.all the elections in Europe, no-one in Europe wants to say, actually,
:14:55. > :14:59.let's be realistic and cut their debt levels. They all want to say,
:15:00. > :15:03.no, you need to pay us back otherwise we might not get elected
:15:04. > :15:07.in France in May or Germany in September. And if you cut the debt
:15:08. > :15:10.for Greece then you set President... For all the other countries,
:15:11. > :15:16.Portugal, Ireland, the other countries bailed out as. You will
:15:17. > :15:18.come back to take us through the papers, we will see you shortly.
:15:19. > :15:23.We'll talk to the boss of one of the world's biggest paint firms
:15:24. > :15:27.about how he's trying to colour the future of art.
:15:28. > :15:35.I told you, no more pardons! -- puns.
:15:36. > :15:37.You're with Business - live from BBC News.
:15:38. > :15:45.Travel group Thomas Cook have seen a ?200 million increase in revenue,
:15:46. > :15:47.as they have a pretty solid start to the year.
:15:48. > :15:50.But the firm is still struggling with a changing holiday market
:15:51. > :15:52.as demand for holidays - and weak sterling means holiday
:15:53. > :15:55.prices will be up as much as 9% this summer.
:15:56. > :15:59.Simon Calder is travel editor for the Independent.
:16:00. > :16:08.Also for our travel show on the BBC. Good to see you. 9%, more expensive
:16:09. > :16:15.holidays for Brits. Exactly right and that is driven partly because of
:16:16. > :16:20.the sterling effect. Sterling about six for a fifth weaker against the
:16:21. > :16:23.euro and US dollar, but mainly the inferences the cost of hotels in
:16:24. > :16:30.Spain, particularly in the Canary Islands and the Balearic Islands,
:16:31. > :16:35.which mean that given the very strong swing we'd seen away from
:16:36. > :16:39.Turkey towards Spain, if you insist on going there, you will be paying
:16:40. > :16:43.quite a lot more. Just been checking out some prices the peak August
:16:44. > :16:49.holidays. The lowest I can find to Lanzarote, one of the beautiful
:16:50. > :16:54.Canary Islands, is about $600 per person, and in Turkey the same sort
:16:55. > :16:59.of distance, same sort of holiday, $500. The chief executive of the
:17:00. > :17:03.Thomas cut group said sales were doing well in Cyprus, Portugal,
:17:04. > :17:10.Croatia and Bulgaria but he also said, and this may be will help out
:17:11. > :17:16.those Greek finance people, that demand for Greece has increased by
:17:17. > :17:21.more than 50%. The slump in Turkey continues and Egypt is picking up
:17:22. > :17:33.just a little bit, with more bookings to the red Sea resort of
:17:34. > :17:37.Haugaard. -- Hughada. He answered all the questions! I had a second
:17:38. > :17:44.question but I think you answered it anyway.
:17:45. > :17:54.Plenty on the business live page. Waitrose looking to close six shops
:17:55. > :17:59.with 500 potential job losses. Read it on the website!
:18:00. > :18:01.Lots of other stories that is updated throughout the day. For the
:18:02. > :18:08.very latest, log on. You're watching Business
:18:09. > :18:14.Live - our top story: President Trump is getting ready
:18:15. > :18:16.to meet airline bosses Their compliants about competition
:18:17. > :18:36.from their Gulf rivals The likes of emirates and Qatar. And
:18:37. > :18:37.ageing airports, the infrastructure, because President Trump says he is
:18:38. > :18:42.going to build. That has been his message during the
:18:43. > :18:43.campaign and when he was inaugurated. A quick look at the
:18:44. > :18:51.markets. Take my glasses off so I can see
:18:52. > :18:54.that far! And now let's get the inside track
:18:55. > :18:57.on the business of creativity. ColArt is the parent company behind
:18:58. > :19:00.some of the world's best known paint and art supply brands -
:19:01. > :19:02.including Windsor Newton, The company, whose heritage brands
:19:03. > :19:10.date back hundreds of years, boasts an annual turnover
:19:11. > :19:16.of ?140 million - that's around The firm's products sold in over 120
:19:17. > :19:20.countries worldwide to both aspiring Dennis Van Schie, CEO
:19:21. > :19:41.of ColArt joins us. You are Dutch. Welcome to the
:19:42. > :19:45.programme. It is fascinating, some people say, I've never heard of this
:19:46. > :19:49.company big paint is everywhere. What I find fascinating, you have
:19:50. > :19:54.some of the oldest paint in the world that were used by the masters.
:19:55. > :19:58.That is absolutely right. ColArt is the name and a company that is not
:19:59. > :20:01.necessarily well-known but all those fantastic heritage brands used by
:20:02. > :20:05.the masters in the world, they have been there for hundreds of years, as
:20:06. > :20:10.you said. We are about to change the company and about to inspire every
:20:11. > :20:14.artist in the world through a massive transformation. The world
:20:15. > :20:19.needs more creativity and more art. Your background is in engineering.
:20:20. > :20:25.Correct. What was the appeal of a paint company, do you paint
:20:26. > :20:33.yourself? Not necessarily, I'm trying. Engineering and then Sony
:20:34. > :20:40.smartphones. That's right. The paint, what it does, how you create
:20:41. > :20:44.beauty and masterpieces that actually tell a story. As an
:20:45. > :20:47.engineer, I love to make things, I love to create things and that is a
:20:48. > :20:54.very obvious link between what I've done at Sony and into one of the
:20:55. > :20:57.most beautiful world market leaders in the fine art industry. We were
:20:58. > :21:05.talking about the countries you sell the product in, 120. Where is the
:21:06. > :21:11.biggest market. The US. That is a big market for you. After your
:21:12. > :21:21.businesses in the US? Revenues wise? Yes. Concerned? About Trump? And
:21:22. > :21:26.closing trade barriers? Yes and no. As a political opinion, yet I'm
:21:27. > :21:29.concerned. But for business, it is a fantastic opportunity. These are
:21:30. > :21:32.times of political and economic instability and people want to
:21:33. > :21:36.express themselves. That is happening in the US and all over the
:21:37. > :21:42.world. Art is a universal language, it brings together. We believe in
:21:43. > :21:49.collaboration collective brainpower. We don't believe isolation, which is
:21:50. > :21:53.in the US, is a good thing. We are being told to wrap it up. I want to
:21:54. > :21:57.squeeze this a Swedish company based in the UK, operate all around the
:21:58. > :22:02.world. Brexit, do you think it will have an impact? Not for us. We
:22:03. > :22:05.believe we are a global company, we inspire every artist in the world
:22:06. > :22:10.that's what we are here for. Whatever political circumstances
:22:11. > :22:14.will be. We appreciate your time, good luck with everything and the
:22:15. > :22:32.transformation, it wasn't that bad? No! Thank you.
:22:33. > :22:43.Tim Cooke spoke to us earlier about Apple. We have employees who secured
:22:44. > :22:46.a work please, they brought their families to the United States, they
:22:47. > :22:52.happen to be outside the United States when the executive order was
:22:53. > :23:00.and all of a sudden their families split. They couldn't get back in.
:23:01. > :23:11.And arguably that's a crisis. Can you imagine that? Well, what other
:23:12. > :23:14.business stories has the media been taking interesting? Kathleen Brooks
:23:15. > :23:18.is back to discuss them. We have spoken a lot about the Twitter
:23:19. > :23:27.effect. The tweet from President Trump about Nordstrom dropping his
:23:28. > :23:32.daughter's fashion line. Interesting. A father sticking up
:23:33. > :23:39.for his daughter. Nordstrom are trying to say it is for business
:23:40. > :23:42.reasons. But sales did very well so maybe it is politics. He is the
:23:43. > :23:45.president and he shouldn't be pointing out companies. What is
:23:46. > :23:52.interesting is he has pointed out other companies' failings before,
:23:53. > :23:56.and that has caused the share prices to fall dramatically. But
:23:57. > :24:01.Nordstrom's share price rose yesterday and so did other
:24:02. > :24:07.retailers, who may follow suit and drop the Ivanka Trump line.
:24:08. > :24:11.Nordstrom stores tend to be democratic heart lines on both
:24:12. > :24:15.coasts, they may have been anti-Trump WACA and voted in their
:24:16. > :24:19.millions for Hillary and that's not always a bad thing to be picked out
:24:20. > :24:28.by Trump. It is the fifth retailer in the US to have dropped Ivanka
:24:29. > :24:32.fashion line. Yes. He is definitely unconventional in how he operates as
:24:33. > :24:37.president. Unconventional with a capital U.
:24:38. > :24:41.Record numbers of US citizens renouncing their citizenship.
:24:42. > :24:47.Before Trump, we should say. This is not a Trump fact.
:24:48. > :24:52.Quite a sharp rise. It was, and I think this is
:24:53. > :24:56.Americans have decided maybe it was better to drop citizenship rather
:24:57. > :25:00.than pay tax twice. Unlike other countries, in the US they tend to
:25:01. > :25:05.have a global taxation. For example, Boris Johnson on the front here said
:25:06. > :25:09.he would have been liable to $50,000 in tax for how is he sold in
:25:10. > :25:12.Islington and the profits he gained on that but he hasn't lived in the
:25:13. > :25:16.US since he was five years old. But because he was a US citizen back
:25:17. > :25:20.then when he sold the house he would still have been liable. It will be
:25:21. > :25:23.interesting to see this year if we see another rise, based on expats
:25:24. > :25:26.wanting to have nothing to do with the US if they were Democrat
:25:27. > :25:31.supporters and they don't like the political direction the US is going
:25:32. > :25:39.into. In 20 seconds can you tell us the snap story, it's hilarious? It
:25:40. > :25:44.is. Snap interactive, a dating app saw their share price increase
:25:45. > :25:52.because people thought they were Snapchat and this only worth about
:25:53. > :25:55.25 million. Expensive mistake. Kathleen Brooks, always a pleasure.
:25:56. > :25:58.There will be more business news throughout the day
:25:59. > :26:01.on the BBC Live webpage and on World Business Report.
:26:02. > :26:14.Good morning, I'm sure it feels cold enough already but it will be even
:26:15. > :26:15.more cold in the next few days. A classic weather pattern where
:26:16. > :26:19.nothing is moving.