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