09/02/2017 BBC Business Live


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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.


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