09/02/2017 BBC Business Live


09/02/2017

A look at the global business stories.


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This is Business Live from BBC News with Aaron Heslehurst and Ben Bland.

:00:00.:00:09.

Will US airlines reach new heights under President Trump?

:00:10.:00:13.

Their bosses land at the White House with concerns over fast-growing Gulf

:00:14.:00:17.

Live from London, that's our top story on Thursday 9th February.

:00:18.:00:39.

The President who used to run his own airline but failed -

:00:40.:00:43.

says he wants the bosses of US carriers to "buy American

:00:44.:00:46.

and hire American", but what can he to do help them?

:00:47.:00:49.

The little blue bird will tell us how much money's it's making

:00:50.:01:02.

or losing later today, but will Twitter get a big boost

:01:03.:01:04.

And, as always, we'll bring you the latest on the markets

:01:05.:01:13.

and tell you why today's driver is not a Trump on or

:01:14.:01:16.

And we'll be getting a rather colourful inside track today.

:01:17.:01:20.

The boss of one of the world's biggest paint firms ColArt will give

:01:21.:01:23.

us the brush strokes on how he's trying to make the environment

:01:24.:01:26.

And buyers pushed up shares in Snap Interactive,

:01:27.:01:29.

a little-known US start-up, mistaking it for Snapchat.

:01:30.:01:31.

So today we want to know, what's the most expensive

:01:32.:01:33.

Let us know - just use the hashtag #BBCBizLive.

:01:34.:01:49.

Then, if you use any more puns today, we are going to shoot you!

:01:50.:01:55.

We start in Washington where the bosses of America's top

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airlines and airports are due to meet President Trump

:01:58.:01:59.

There are some major issues on the table that could affect

:02:00.:02:04.

As we know from his inauguration speech,

:02:05.:02:13.

Mr Trump said he would follow two simple rules - "Buy American

:02:14.:02:18.

That could mean a major boost for plane-maker Boeing,

:02:19.:02:29.

if he leans on US airlines to buy from them.

:02:30.:02:32.

European rival Airbus also operates factories in the US

:02:33.:02:40.

and buys billions of dollars worth of US components like engines.

:02:41.:02:45.

Airbus claims to support 245,000 US jobs.

:02:46.:02:48.

Then there's the issue of foreign airlines operating in the US.

:02:49.:02:57.

This one, Norwegian, was given a foreign carrier licence,

:02:58.:03:03.

allowing them to expand their routes to and from the US -

:03:04.:03:07.

it was one of the last acts of the Obama administration.

:03:08.:03:15.

It caused howls of protest from US airlines and aviation unions.

:03:16.:03:20.

Again there's another side to it - Norwegian says it is creating

:03:21.:03:24.

at least 150 new US jobs and has ordered more

:03:25.:03:28.

than $18 billion worth of jets from Boeing.

:03:29.:03:34.

So what about the whole question of open skies,

:03:35.:03:36.

the deals that mean countries open their routes to each other?

:03:37.:03:39.

The US currently has 120 open skies agreements.

:03:40.:03:45.

US airline bosses are particularly unhappy about the expansion

:03:46.:03:47.

of Emirates, Etihad Airways, and Qatar Airways in the US.

:03:48.:03:58.

Last week they wrote to the government claiming Gulf

:03:59.:04:01.

carriers have received $50 billion in handouts from their governments

:04:02.:04:05.

over the past decade - something the Gulf airlines deny.

:04:06.:04:11.

The President of Emirates has long argued that an attack

:04:12.:04:16.

on their business by Washington would only damage the US economy.

:04:17.:04:24.

Well, Norman Gage is an Airline industry analyst

:04:25.:04:26.

He joins us live down the line now. Norman, this conversation happening

:04:27.:04:37.

between the airlines and President Trump, what could be the potential

:04:38.:04:41.

impact of it on people like you and I, passengers, and for the flights

:04:42.:04:46.

that we want to get and book? I'm not sure it will have too much

:04:47.:04:50.

effect on you and I because it is really affecting inbound flights to

:04:51.:04:54.

America from the home bases of these particular airlines. Those airlines,

:04:55.:05:01.

through their home bases, act as a hub and therefore draw in people

:05:02.:05:07.

from the far east and from Africa to transfer and then fly on to America.

:05:08.:05:11.

So you and I, I'm not too sure it will have a great impact. In that

:05:12.:05:17.

case, then, there is the long-running competition between

:05:18.:05:22.

Boeing and Airbus, presumably Boeing will be pushing very hard to ride on

:05:23.:05:29.

the back of Donald Trump's ambitions for by American, higher American.

:05:30.:05:34.

What could that potentially do to the balance between the two major

:05:35.:05:39.

players? I think it would depend on if they exist, but I think a lot of

:05:40.:05:43.

the fleet order from these airlines has already been placed, so to

:05:44.:05:49.

cancel those would cost a lot of money, to purchase American, they

:05:50.:05:53.

would have to say, OK, if we are denied landing rights everywhere

:05:54.:05:56.

that we want to fly to under the bilateral agreement, if that gets

:05:57.:06:00.

torn up, then we have to reassess where those aircraft are positioned.

:06:01.:06:04.

But to suddenly switch from Airbus to Boeing can take a number of years

:06:05.:06:09.

and therefore may not be physically or financially viable. We have also

:06:10.:06:14.

missed out as well be Iran situation. Iran air, I believe, were

:06:15.:06:20.

going to be a massive purchaser of aircraft and have turned to Airbus

:06:21.:06:27.

to purchase those. Norman, can I ask, if President Trump gives these

:06:28.:06:31.

airline bosses are supportive ear, these airline bosses have been

:06:32.:06:36.

screaming mad against the likes of Emirates and Etihad, but in

:06:37.:06:41.

particular emirates. If he does give them a supportive ear and looks at,

:06:42.:06:46.

I don't know, maybe looking again at the open skies agreement, there

:06:47.:06:50.

could be huge ramifications for the global aviation industry? Yes, there

:06:51.:06:55.

could be, but then you also have to look at how many new people are

:06:56.:07:00.

these airlines lifting and taking to America, first-time riders. A lot of

:07:01.:07:04.

the routes that emirates have been developing into Florida, leisure

:07:05.:07:08.

destinations, so the implications go beyond the airlines. Changing the

:07:09.:07:13.

subject slightly, one of the things that Trump could be smoothing over

:07:14.:07:17.

with the airlines is to keep down the price of oil. His economic

:07:18.:07:23.

policies and some of his appointments seem to drive the push

:07:24.:07:27.

to keep drilling and pumping, so if they can keep the price of oil below

:07:28.:07:33.

$50 per barrel, the airlines will be making good profits and all of this

:07:34.:07:39.

other noise just is noise. Norman, thank you very much, good to get

:07:40.:07:44.

your thoughts. Did you know that President Trump

:07:45.:07:47.

used to run his own airline? I did, because I was listening when

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you told me! I do pay attention! That is how you

:07:52.:07:58.

become a millionaire, by running an ally. He started off as a

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billionaire! Oh, I see.

:08:03.:08:05.

-- by running an airline. Let's look at some of the news.

:08:06.:08:07.

Democrats have condemned President Donald Trump's tweet

:08:08.:08:09.

attacking a clothing retailer after it dropped a fashion line

:08:10.:08:11.

Mr Trump tweeted that "Ivanka has been treated so unfairly"

:08:12.:08:15.

A Democratic senator called the post "inappropriate"

:08:16.:08:18.

and an ex-White House ethics tsar dubbed it "outrageous".

:08:19.:08:20.

Earlier this month Nordstrom became the fifth retailer to drop

:08:21.:08:22.

the Ivanka Trump clothing line, citing lack of sales.

:08:23.:08:29.

Germany's exports reached a record high last year thanks to stronger

:08:30.:08:31.

demand from other European Union countries as the country

:08:32.:08:36.

recorded its biggest ever trade surplus of $270 billion.

:08:37.:08:40.

That was acheived despite a fall in the value of goods sold outside

:08:41.:08:43.

Last week, German Chanellor Angela Merkel was forced to reject comments

:08:44.:08:49.

made by one of President Trump's top business advisers that Germany

:08:50.:08:52.

uses an undervalued euro to exploit trading partners.

:08:53.:08:57.

Nissan has reported a 3.5% increase in profit, with sales rising

:08:58.:09:00.

The Japanese carmaker recorded profits of $1.2 billion

:09:01.:09:05.

Meanwhile, a South Korean court has ruled against Nissan,

:09:06.:09:15.

saying that the company had installed an emissions-cheating

:09:16.:09:18.

device in its Qashqai sport utility vehicle.

:09:19.:09:30.

Shares in Toshiba fell more than 12% at one point today.

:09:31.:09:35.

This has been going on for some time. Yes, its memory chip business,

:09:36.:09:39.

let's find out more. Shares ending the day about 7% lower

:09:40.:09:51.

after falling as much as 12%. It has really been nonstop for the company,

:09:52.:09:55.

which is just recovering from that accounting scandal since in December

:09:56.:10:02.

the company said it could face a huge write-down in its US nuclear

:10:03.:10:05.

business next Tuesday, we will find out exactly how much that breakdown

:10:06.:10:12.

is but reports suggest six. In order to raise money, that is why the

:10:13.:10:16.

company is selling its memory chip business, which is making a lot of

:10:17.:10:21.

money for the company, reports have been emerging about who might be

:10:22.:10:26.

interested in that unit, though it seems like all the industry rivals,

:10:27.:10:33.

investment fund. investment fund.

:10:34.:10:36.

Thank you for that, we will talk to you soon.

:10:37.:10:36.

Let's stay with the markets. Most Asian markets climbed

:10:37.:10:40.

to today as investors grew more confident about China,

:10:41.:10:43.

while the dollar slightly firmed in the wake of growing concerns over

:10:44.:10:45.

political instability in Now the Nikkei is down

:10:46.:10:49.

because of a stronger Yen and Japanese investors keen to see

:10:50.:10:55.

how the meeting with PM Abe goes tomorrow in Washington

:10:56.:10:59.

with President Donald Trump. In Europe, the uncertainty that has

:11:00.:11:05.

tainted trading floors for weeks continues to weigh as Donald Trump

:11:06.:11:12.

appears to press on with a protectionist agenda but provides

:11:13.:11:14.

no details on his pledge to ramp up Talking of the US, let's find

:11:15.:11:17.

out what'll be making the biz headlines there today -

:11:18.:11:29.

here she is, here's Samira. The results will certainly take more

:11:30.:11:31.

than 140 characters to get through. That's right, Twitter

:11:32.:11:34.

will be reporting earnings, and it seems measures

:11:35.:11:36.

to control costs are working. Twitter had been looking to try

:11:37.:11:39.

and sell itself over the past few months, but interest from potential

:11:40.:11:42.

buyers eventually waned. Coca-Cola's earnings may be

:11:43.:11:45.

fizzling out somewhat. The continued decline of fizzy

:11:46.:11:48.

drinks have the earnings of the world's largest beverage

:11:49.:11:51.

maker going flat. Even though Coca-Cola has been

:11:52.:11:54.

diversifying away from sugary sodas and into things like coconut

:11:55.:11:59.

and vitamin waters, the moves haven't been enough to offset

:12:00.:12:03.

the slide of sales of sodas. And finally, the owner

:12:04.:12:06.

of the Wall Street Journal and the New York Post will be

:12:07.:12:09.

reporting earnings and the turbulent US elections will be seen

:12:10.:12:12.

as a boost for News Corp, as it brought in more

:12:13.:12:14.

subscribers for its news pages. Joining us is Kathleen Brooks,

:12:15.:12:21.

research director for City Index. Good morning. Can I start on

:12:22.:12:33.

Twitter. Twitter will tell us some numbers later on but five years ago

:12:34.:12:38.

when Facebook went public we all sat here, I sat here with many experts

:12:39.:12:43.

going, Facebook's got to learn how to monetise those users, make money

:12:44.:12:48.

from adverts... Facebook cracked it. Twitter still stumbles. It really

:12:49.:12:55.

does. There are things, these live videos which are expected to... This

:12:56.:13:01.

is a new thing? It is, which could boost expectations, but it hasn't

:13:02.:13:06.

been able to monetise and increase its monthly average users, that has

:13:07.:13:09.

been stagnant, and half of the reason is because there is a lot of

:13:10.:13:12.

trolling and abuse on Twitter which puts people off from even signing

:13:13.:13:17.

up. The old adage that any publicity is good publicity and you cannot get

:13:18.:13:21.

more publicity than the President of the United States using you as a

:13:22.:13:25.

platform to get messages out. Do you think they will benefit from that?

:13:26.:13:32.

From a tweeter in chief?! It'll be interesting, because on their

:13:33.:13:35.

conference call after they announced earnings, they will have to address

:13:36.:13:40.

it, they will be asked about Trump and it has attracted a lot of people

:13:41.:13:43.

to follow him, whether that turns into users we will have see.

:13:44.:13:47.

Switching to Greece, Europe again watching closely, it has not gone

:13:48.:13:53.

away, and you actually told us this, the Greeks by Finance minister Yanis

:13:54.:14:02.

Varoufakis is in the building somewhere! Not on this show! But

:14:03.:14:09.

Greece will be back in the spotlight soon? It has a big debt repayments

:14:10.:14:14.

to pay back in July, tonnes of European election is going on and

:14:15.:14:19.

European governments don't want to do any type of consolidations or

:14:20.:14:21.

anything on their debt, they want them to pay back their debt, get the

:14:22.:14:26.

IMF is going against European authorities and saying, you have to

:14:27.:14:29.

do because there is no way they can grow themselves out of this crisis,

:14:30.:14:33.

you have to reduce the debt you want back, give yourselves a haircut

:14:34.:14:38.

otherwise the debt level will not be sustainable. This has been a problem

:14:39.:14:41.

now for seven years, where they have been not growing very well and in

:14:42.:14:47.

massive amounts of debt. They will never pay that back but because of

:14:48.:14:51.

all the elections in Europe, no-one in Europe wants to say, actually,

:14:52.:14:54.

let's be realistic and cut their debt levels. They all want to say,

:14:55.:14:59.

no, you need to pay us back otherwise we might not get elected

:15:00.:15:03.

in France in May or Germany in September. And if you cut the debt

:15:04.:15:07.

for Greece then you set President... For all the other countries,

:15:08.:15:10.

Portugal, Ireland, the other countries bailed out as. You will

:15:11.:15:16.

come back to take us through the papers, we will see you shortly.

:15:17.:15:18.

We'll talk to the boss of one of the world's biggest paint firms

:15:19.:15:23.

about how he's trying to colour the future of art.

:15:24.:15:27.

I told you, no more pardons! -- puns.

:15:28.:15:35.

You're with Business - live from BBC News.

:15:36.:15:37.

Travel group Thomas Cook have seen a ?200 million increase in revenue,

:15:38.:15:45.

as they have a pretty solid start to the year.

:15:46.:15:47.

But the firm is still struggling with a changing holiday market

:15:48.:15:50.

as demand for holidays - and weak sterling means holiday

:15:51.:15:52.

prices will be up as much as 9% this summer.

:15:53.:15:55.

Simon Calder is travel editor for the Independent.

:15:56.:15:59.

Also for our travel show on the BBC. Good to see you. 9%, more expensive

:16:00.:16:08.

holidays for Brits. Exactly right and that is driven partly because of

:16:09.:16:15.

the sterling effect. Sterling about six for a fifth weaker against the

:16:16.:16:20.

euro and US dollar, but mainly the inferences the cost of hotels in

:16:21.:16:23.

Spain, particularly in the Canary Islands and the Balearic Islands,

:16:24.:16:30.

which mean that given the very strong swing we'd seen away from

:16:31.:16:35.

Turkey towards Spain, if you insist on going there, you will be paying

:16:36.:16:39.

quite a lot more. Just been checking out some prices the peak August

:16:40.:16:43.

holidays. The lowest I can find to Lanzarote, one of the beautiful

:16:44.:16:49.

Canary Islands, is about $600 per person, and in Turkey the same sort

:16:50.:16:54.

of distance, same sort of holiday, $500. The chief executive of the

:16:55.:16:59.

Thomas cut group said sales were doing well in Cyprus, Portugal,

:17:00.:17:03.

Croatia and Bulgaria but he also said, and this may be will help out

:17:04.:17:10.

those Greek finance people, that demand for Greece has increased by

:17:11.:17:16.

more than 50%. The slump in Turkey continues and Egypt is picking up

:17:17.:17:21.

just a little bit, with more bookings to the red Sea resort of

:17:22.:17:33.

Haugaard. -- Hughada. He answered all the questions! I had a second

:17:34.:17:37.

question but I think you answered it anyway.

:17:38.:17:44.

Plenty on the business live page. Waitrose looking to close six shops

:17:45.:17:54.

with 500 potential job losses. Read it on the website!

:17:55.:17:59.

Lots of other stories that is updated throughout the day. For the

:18:00.:18:01.

very latest, log on. You're watching Business

:18:02.:18:08.

Live - our top story: President Trump is getting ready

:18:09.:18:14.

to meet airline bosses Their compliants about competition

:18:15.:18:16.

from their Gulf rivals The likes of emirates and Qatar. And

:18:17.:18:36.

ageing airports, the infrastructure, because President Trump says he is

:18:37.:18:37.

going to build. That has been his message during the

:18:38.:18:42.

campaign and when he was inaugurated. A quick look at the

:18:43.:18:43.

markets. Take my glasses off so I can see

:18:44.:18:51.

that far! And now let's get the inside track

:18:52.:18:54.

on the business of creativity. ColArt is the parent company behind

:18:55.:18:57.

some of the world's best known paint and art supply brands -

:18:58.:19:00.

including Windsor Newton, The company, whose heritage brands

:19:01.:19:02.

date back hundreds of years, boasts an annual turnover

:19:03.:19:10.

of ?140 million - that's around The firm's products sold in over 120

:19:11.:19:16.

countries worldwide to both aspiring Dennis Van Schie, CEO

:19:17.:19:20.

of ColArt joins us. You are Dutch. Welcome to the

:19:21.:19:41.

programme. It is fascinating, some people say, I've never heard of this

:19:42.:19:45.

company big paint is everywhere. What I find fascinating, you have

:19:46.:19:49.

some of the oldest paint in the world that were used by the masters.

:19:50.:19:54.

That is absolutely right. ColArt is the name and a company that is not

:19:55.:19:58.

necessarily well-known but all those fantastic heritage brands used by

:19:59.:20:01.

the masters in the world, they have been there for hundreds of years, as

:20:02.:20:05.

you said. We are about to change the company and about to inspire every

:20:06.:20:10.

artist in the world through a massive transformation. The world

:20:11.:20:14.

needs more creativity and more art. Your background is in engineering.

:20:15.:20:19.

Correct. What was the appeal of a paint company, do you paint

:20:20.:20:25.

yourself? Not necessarily, I'm trying. Engineering and then Sony

:20:26.:20:33.

smartphones. That's right. The paint, what it does, how you create

:20:34.:20:40.

beauty and masterpieces that actually tell a story. As an

:20:41.:20:44.

engineer, I love to make things, I love to create things and that is a

:20:45.:20:47.

very obvious link between what I've done at Sony and into one of the

:20:48.:20:54.

most beautiful world market leaders in the fine art industry. We were

:20:55.:20:57.

talking about the countries you sell the product in, 120. Where is the

:20:58.:21:05.

biggest market. The US. That is a big market for you. After your

:21:06.:21:11.

businesses in the US? Revenues wise? Yes. Concerned? About Trump? And

:21:12.:21:21.

closing trade barriers? Yes and no. As a political opinion, yet I'm

:21:22.:21:26.

concerned. But for business, it is a fantastic opportunity. These are

:21:27.:21:29.

times of political and economic instability and people want to

:21:30.:21:32.

express themselves. That is happening in the US and all over the

:21:33.:21:36.

world. Art is a universal language, it brings together. We believe in

:21:37.:21:42.

collaboration collective brainpower. We don't believe isolation, which is

:21:43.:21:49.

in the US, is a good thing. We are being told to wrap it up. I want to

:21:50.:21:53.

squeeze this a Swedish company based in the UK, operate all around the

:21:54.:21:57.

world. Brexit, do you think it will have an impact? Not for us. We

:21:58.:22:02.

believe we are a global company, we inspire every artist in the world

:22:03.:22:05.

that's what we are here for. Whatever political circumstances

:22:06.:22:10.

will be. We appreciate your time, good luck with everything and the

:22:11.:22:14.

transformation, it wasn't that bad? No! Thank you.

:22:15.:22:32.

Tim Cooke spoke to us earlier about Apple. We have employees who secured

:22:33.:22:43.

a work please, they brought their families to the United States, they

:22:44.:22:46.

happen to be outside the United States when the executive order was

:22:47.:22:52.

and all of a sudden their families split. They couldn't get back in.

:22:53.:23:00.

And arguably that's a crisis. Can you imagine that? Well, what other

:23:01.:23:11.

business stories has the media been taking interesting? Kathleen Brooks

:23:12.:23:14.

is back to discuss them. We have spoken a lot about the Twitter

:23:15.:23:18.

effect. The tweet from President Trump about Nordstrom dropping his

:23:19.:23:27.

daughter's fashion line. Interesting. A father sticking up

:23:28.:23:32.

for his daughter. Nordstrom are trying to say it is for business

:23:33.:23:39.

reasons. But sales did very well so maybe it is politics. He is the

:23:40.:23:42.

president and he shouldn't be pointing out companies. What is

:23:43.:23:45.

interesting is he has pointed out other companies' failings before,

:23:46.:23:52.

and that has caused the share prices to fall dramatically. But

:23:53.:23:56.

Nordstrom's share price rose yesterday and so did other

:23:57.:24:01.

retailers, who may follow suit and drop the Ivanka Trump line.

:24:02.:24:07.

Nordstrom stores tend to be democratic heart lines on both

:24:08.:24:11.

coasts, they may have been anti-Trump WACA and voted in their

:24:12.:24:15.

millions for Hillary and that's not always a bad thing to be picked out

:24:16.:24:19.

by Trump. It is the fifth retailer in the US to have dropped Ivanka

:24:20.:24:28.

fashion line. Yes. He is definitely unconventional in how he operates as

:24:29.:24:32.

president. Unconventional with a capital U.

:24:33.:24:37.

Record numbers of US citizens renouncing their citizenship.

:24:38.:24:41.

Before Trump, we should say. This is not a Trump fact.

:24:42.:24:47.

Quite a sharp rise. It was, and I think this is

:24:48.:24:52.

Americans have decided maybe it was better to drop citizenship rather

:24:53.:24:56.

than pay tax twice. Unlike other countries, in the US they tend to

:24:57.:25:00.

have a global taxation. For example, Boris Johnson on the front here said

:25:01.:25:05.

he would have been liable to $50,000 in tax for how is he sold in

:25:06.:25:09.

Islington and the profits he gained on that but he hasn't lived in the

:25:10.:25:12.

US since he was five years old. But because he was a US citizen back

:25:13.:25:16.

then when he sold the house he would still have been liable. It will be

:25:17.:25:20.

interesting to see this year if we see another rise, based on expats

:25:21.:25:23.

wanting to have nothing to do with the US if they were Democrat

:25:24.:25:26.

supporters and they don't like the political direction the US is going

:25:27.:25:31.

into. In 20 seconds can you tell us the snap story, it's hilarious? It

:25:32.:25:39.

is. Snap interactive, a dating app saw their share price increase

:25:40.:25:44.

because people thought they were Snapchat and this only worth about

:25:45.:25:52.

25 million. Expensive mistake. Kathleen Brooks, always a pleasure.

:25:53.:25:55.

There will be more business news throughout the day

:25:56.:25:58.

on the BBC Live webpage and on World Business Report.

:25:59.:26:01.

Good morning, I'm sure it feels cold enough already but it will be even

:26:02.:26:14.

more cold in the next few days. A classic weather pattern where

:26:15.:26:15.

nothing is moving.

:26:16.:26:19.