10/05/2017 BBC Business Live


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This is Business Live from BBC News with Rachel Horne and Sally Bundock.


The Japanese car-maker Toyota faces a bumpy road ahead as it


reports its first fall in profit for five years.


Live from London, that's our top story on Wednesday, 10th May.


Toyota's profits have fallen by more than a fifth.


We'll be live in Tokyo for the latest on the world's second


biggest car-maker and we'll get an expert view on what it needs


Australia slaps a levy on the country's biggest banks.


We'll cross live to Sydney for the latest reaction.


And the European markets are open and trading.


Also in the programme, we'll be getting the Inside Track


on the music business with a veteran of the industry.


Later we'll be speaking to Chris Wright, the man responsible


The New York Times is offering people a Brexit tour of London. It


is the Brexit means Brexit tour. We're asking you today what's your


most memorable tour and was it that expensive? Just use the hashtag BBC


We start with the world's second biggest car-maker, Toyota,


which has just reported its latest set of financial results.


This is the first time in five years that the company has


Our correspondent Rupert Wingfield-Hayes is in Tokyo.


Rupert, what more can you tell us about the figures? Good morning,


Rachel. It is a fall for Toyota as expectedment more than expected, but


it's still, you know, if profits of $16 billion are bad then it is a


problem that a lot of companies would like to have, but that's a


fall to 1.83 trillion yen and there is expectation that it will fall


again this financial year to 1.6 trillion yen. So it looks like


Toyota's overall sales or overall profits rather are on a decline, but


it is actually on sales that are still going up. So sales last year


were 10.25 million vehicles which is actually up from 10.91 million


vehicles the previous yearment the reason for the fall in profits is


the strengthening of the Japanese yen because most of Toyota's cars


are produced outside Japan, in United States, Europe and China and


when the profits are converted into yen the strengthening of the yen is


hurting them. Also, flat sales in the United States on a rising


market. Record sales of vehicles in the United States last year, but


Toyota's sales are flat so obviously that's a disappointment for the


company. OK, Rupert wing field haste, thank you.


With me is Krish Bhaskar, automotive consultant


You were listening to Rupert there and you've been looking at the


numbers since they were releasedment what do you make of them? There is a


6% drop in the first four months in the US and that's a big drop for


Toyota which is used to increases, but the big thing is, it hasn't got


enough product. It's the wrong product mix in the US, it needs more


SUVs and more pick-ups and that's hurting Toyota badly. Whilst Toyota


is hurting, it's rivals in the US are doing well, the ones that


traditionally churn out the SUVs, aren't they? It is making America


great again tag going on in that part of the world in terms of what


people perhaps want to buy? Yes, 65% of the market is now SUVs and light


trucks, what they call light trucks which is MPVs and pick-ups. For


example one of its competitives, Nissan introduced a new vehicle and


that's selling brilliantly. Whereas Toyota hasn't really introduced


much. It has a new small SUV, but it's not doing that well. So are you


concerned about the outlook for Toyota? It has warmed today about --


warned today about future profits and earnings which will probably


take money off its share price tomorrow when markets re-open in


Tokyo. How concerned are you? What the president says, Toyota...


Toyota, not Trump! At Toyota. He says we realise we've got a boring


image and we're going to change and they're investing heavily in new


things like robotics, artificial intelligence, autonomous driving,


but they're trying to get more desirable vehicles. They're trying


to put a motion into their vehicles -- emotion into their vehicles. If


they're successful, it would be good. They've overtaken Volkswagen


now so they are number one in the world. All right. Well, let's talk


about the other president, President Trump, he has criticised Japan, the


car makers and Toyota in particular and yet Toyota invested a lot in the


US. How does that affect the company, do you think? I think what


Toyota will do a they'll see what's going to happen and they'll react.


They'll rebalance their production towards the US. They've already


given more R D in the States. They've built a big new centre in


think he can get around President think he can get around President


Trump. They can meet him because a lot of their cars, the bulk of their


cars are produced in the US. All right. We appreciate your time this


morning and your analysis, thank you for coming in.


Let's take a look at some of the other stories making the news.


China's ChemChina has won around 82% support from Syngenta shareholders


for its $43 billion takeover of the Swiss pesticides


The takeover announced last year was prompted by China's desire


to use Syngenta's portfolio of top-tier chemicals and


It is China's biggest foreign acquisition to date.


Profits at Walt Disney jumped 11% in the first three months of 2017,


bolstered by attendance at its theme parks and resorts.


Profits in the first three months of the year were $2.4 billion.


But the media giant's revenue gains were more muted.


The firm remains on track for modest growth, in spite of subscriber


losses at its sports television network ESPN.


Qantas chief executive Alan Joyce has said he intends to press charges


against a man who hit him in the face with a pie.


Mr Joyce was giving a speech in Perth on Tuesday when the man


walked on stage and shoved the pie in his face.


A man identified by local media as the attacker later criticised


the airline chief's support for same-sex marriage,


Australia has introduced a new levy on its biggest banks as part


of its annual budget, with the aim of raising


Hywel Griffith is live in Sydney. What's the reaction been?


Politically, it came as a surprise coming from a Conservative-leaning


Government that prides itself on its business links, but even more of a


surprise for the banks themselves given the reaction. The Australian


Bankers' Association saying it would hurt every Australian by harming


investment and hinting rather menacingly towards rather unintended


consequences. We've heard from the banks, Westpack Commonwealth warning


they think it would fall on the customers shoulders. They couldn't


absorb it. We have heard from the Australian Government's treasurer


who has warned the banks against putting this levy on their customers


shoulders. He says, "They don't like you very much already. Think again


about put the charge on the customers fees."


Asian stocks. They have been up for the third day in a row. Investors


enjoying strong corporate earnings. The Dow closed down slightly, but it


is, just down a tad because it has been the best US earnings season for


five years. The US futures index slipped on the


news that Donald Trump has sacked James Comey. The markets are down,


but they are only down slightly. The markets feeling settled after


Emmanuel Macron's election victory and still the strong earning figures


given investors a sense of settling. Samira has the details on Wall


Street. It was over two months ago when Snap, the parent company to


Snapchat started trading on the New York Stock Exchange. On Wednesday,


they will be reporting earnings for the first time. Now the company's


first quarter revenue is expected to rise, helped by advertising on its


messaging app, but competition for that pool of advertising dollars is


quickly heating up. Investors will want to hear how Snap plans on


getting more users and advertisers. Now, also reporting on Wednesday, 21


Century Fox. The company's cable News Channel has seen a boost to


revenues as Donald Trump's victory in the US Presidential elections has


attracted more audiences. Now with Fox News facing a number of sexual


harassment and discrimination lawsuits, investors will be looking


out for any updates on that and the potential tie up between them and


the UK's Sky. Joining us is Sue Noffke, UK


Equities Fund Manager at Schroders. How are you? I'm very well. Good.


Apple busting through $800 billion market valuation. I mean, when is it


going to stop? I don't know. We have seen very strong earnings and we've


also seen re-ratings of tech and growth companies so far in 201 and


that's a reversal from that Trump trade that was so strong post the US


Presidential election in November last year. So quite a change in mix


of what's driving markets forward. It is back to Facebook, Apple,


Google, all the big tech names and really the rest of the US market


struggling to keep pace, but because those five stocks are so big, it's


really powered the overall headline indexes. I think the earnings story


is broader than just the US. So we have seen strong earnings and also


in Europe where there is perhaps more of a cyclical mix so its


financials, it's oils, as much as technology companies and that's also


been powering the markets internationally. Now, one of the big


stories out of the US was the sacking of the FBI director James


Comey, we think it will have an impact on the markets when they


open. It is affecting the futures markets. It has led to some sell-off


in the futures, but it's important to remember that we are at elevated


levels for markets. Volatility index, the fear gauge of the VIC


index. Is it the unpredictability of this president? You might just see


the focus shift away from good earnings, the Fed under control, all


the labour stats being pretty supportive for growth, go back to


some sort of risk analysis and politics taking over. All right. Sue


will return later the she might even reveal her most memorable tour which


is our question for you today. The Inside Track


on the music business Later in the programme we'll


speak to Chris Wright, the man responsible for signing


Spandau Ballet and Blondie. You're with Business


Live from BBC News. Barclays is holding its annual


general meeting today, amid a backdrop of trouble


and controversy around Last month, it was revealed


that he had attempted to find out the identity of a whistleblower


in the company. He apologised and referred


himself to the regulator. Today will be the first time that


Mr Staley has publicly faced shareholders since then


and there's increasing pressure on shareholders not


to re-elect him as the boss. Our business editor Simon Jack,


joins us from the newsroom. Simon, I don't know if you're going,


but I'd like to be a fly on the wall? I think it will be an


interesting one. It is no exaggeration to say that Jes Staley


is in a fight for his professional life. The most serious strike


against him was that he tried to uncover the identity of a


whistle-blower. He hired an old friend from JP Morgan days. Someone


sent a letter to the board members questioning the personal conduct of


the person who was hired and the relationship with Jes Staley. He


said it was an honest mistake and he looked into it. HR said it wasn't a


whistle-blowing incident. He thought he licence to track down the person


who sent it. He was wrong and this has been referred to the Financial


Conduct Authority. Those are sub divisions of the Bank of England.


Some shareholders think he might be in for a rough ride with them. There


is no rules about how senior managers are supposed to behave and


these question marks about his judgment and his temperament are


going to be taken very seriously. Now, as far as shareholders go, if


it was just down to them, I think that he would be safe. Generally


he's popular with shareholders. He turned the bank around. He


restructured. They like what he has been doing, but as I say, it won't


necessarily be down to them if he loses the confidence of the Bank of


England as we saw with his American predecessor, Bob Diamond, the Bank


of England can see off any Chief Executive. We know that too well. On


the Business Live page there will be updates about how the AGM goes at


Barclays Bank. There is other stories including snap judgment.


Snap's first earnings will be posted today. It will be watched closely by


investors to see how the latest tech upstart is doing on the markets.


Indeed, the first since they floated. A top story, the world's


biggest car manufacturer Toyota have just posted results. They bit of a


mixed bag. It all came out after the trading


day ended in Tokyo. We will see how Toyota shares go tomorrow.


For many of us, our next guest has been responsible for the soundtrack


of the '70s and '80s, signing acts like Blondie,


Chris Wright created independent label Chrysalis almost 50 years ago,


sold it to a big industry player and is now back


at the helm as Chrysalis is re-born as an independent.


He co-founded Chrysalis in 1968 with Terry Ellis


He then set up a radio and TV business, which included Heart


and Galaxy stations, and diversified into television -


making Midsomer Murders and covering Formula 1.


Now nearly 50 years after his first signing, Chris is back in charge


after the acquisition of Chrysalis Music by


So much to talk about. He is with us in the studio. Welcome to Business


Live, Chris. Good morning. Such a shame we only have three or four


minutes. But you decided to come back as chairman of chrysalis was it


last year? Do you mind me mentioning your age? 71. 72, sorry! When you


decided you would go into a nice semiretirement. Why did you come


back? I never fully retired, I was just unemployed. Fair enough, but


was it an offer you couldn't resist? Yes, it was put together by Jeremy


Hill used to work with me at Chrysalis and Robin Miller, and the


opportunity was there and absolutely why not? It is not very often you


get the opportunity to buy back a company that you formed Tom had 30


years, and sold 20 years ago. You have been working in the music


industry since the 60s, when you were entertainment officer that the


students union at Manchester United. How has the music industry changed,


from the heady days when you are making or your money through selling


albums and singles, then you have digital. How has it changed? It has


changed so much, it is hard to even remember the days you started. It


was almost the days of 78 rpm signals before 45s. And I am talking


a language that most people today would have no concept of what it was


really like. The big change is that we used to sell records. You know,


they were things you put on a turntable and played, and they


morphed into both tapes and CDs. And now the whole thing has morphed into


the fact that you listen to what you want to listen to buy just streaming


it. Do you think something has been lost? Was it more fun back then,


wasn't more about the music and less about the money and volume? I think


that applies to a lot of industries, it was more about the products, and


now it is so sophisticated, it is more about the bottom line. But,


yes, and also in those days, music was like everything to people. If


you were a young kid, the only thing that mattered in your life was


having the new record by whoever it was that you were particularly in


love with. But if you are a young kid today, you want to be on the X


factor or something like that, today's stars are found like that,


as opposed to you discovering Blondie? The X Factor artist are


different kind of people, OK, one or two come good, and you can't knock


the success one direction have had for example, but most of them you


haven't heard of a year or two later. But none of them are people


that write their own songs. You know, they are not like the Beatles


or the Rolling Stones or Bob Dylan or Paul Simon. They wouldn't get on


the X Factor, because they wouldn't be allowed to sing the songs that


they are writing. So they are not really developing careers. But they


are entertaining the masses. And that is part of the equation. They


are churning it out. You are back in charge now, what do you want to


achieve? The first thing we are doing is trying to re-evaluate the


catalogue. We bought most of the old records back, not all, because it is


quite complicated, but a lot of it. We need to just make sure we


reinvigorate that, and get the names of the artists back in the public's


mines. There are a lot of people there that people are still


interested in, catalogues of old artists are all very well now, and


streaming makes it so much easier. Because if you want to buy a record


that came out say 40 years ago, you might not get it in a record store


easily, you can get everything on the streaming sites, and you listen


to it. Then you have no delivery charges, no manufacturing costs. It


is a different kind of industry now. We have got to get you to clarify


the situation with Mr David Bowie, because it is reported often that


you guys listened, and thought no, one-hit wonder, but that apparently


is fake news. It is, in a way. He was a bit of a one-hit wonder,


because he had had a very big hit with space oddity and then


disappeared off the scene. We signed him as a songwriter to our


burgeoning music publishing company. He made a record, which was the


hunky-dory album, which was a brilliant album. My ex-partner,


which to his credit was fundamentally responsible for


signing Blondie, did listen to the David Bowie hunky-dory album, didn't


like it. I happen to be in the States of the time, he said I have


heard the Bowie album, no good, we are not signing it, I said OK. I


came back to the States and listen to it, and thought big mistake,


Terry, and was. We did have him sign to us as a songwriter, so it wasn't


like we were totally not involved in his career, because we were. Thank


you so much coming in. Show me couldn't talk to you more. Chris,


come back and we will get half an hour out of here. I would love to.


Lovely to meet you. Eurostar, the train operator that run services


between London, Paris and Brussels, has reported its first quarterly


results. Sales were up 15% year-on-year powered by strong


performance in business travel and overseas markets. I spoke to the


boss earlier, this is what he had to say. We are very pleased with the


quarter. We have a strong UK business market, which came back,


which is very good news, and also we will release a prized by the


strength of the North American market. Loads of Americans coming to


Europe to visit, taking advantage of the weak pound and a weak euro by


historical standards, so they have really powered the growth of the


first quarter. We are really pleased. I think a lot of


businesses, they see the political risk diminishing, so there is a real


appetite to do more business. Some businesses are looking also, because


of Brexit, OK, shall we set up a new subsidiary in France? Emmanuel


Macron had a very good share of the votes. He has been very up front


about what he wanted to do. If he gets a majority at the parliament,


he will get a mandate to implement the change, which may be in previous


times, it came without that clear warning, I would say, warning sign


on it. So I am optimistic. I think he knows how to handle difficult


situations, so I am very optimistic. Nicholas Petkovic, the boss of


Eurostar. We are asking you this morning, what


memorable tours have you been, because Sue has returned to talk to


us about these stories in the papers today. The New York Times has


offered a ?4600 Brexit means Brexit tour of London. Would you pay that?


It seems a bit steep. Six days, and it is all in London, but I think


what it does do is bring together a package of people. So it is not just


wondering around, following someone with an amber alert. You get the


whole thing. Do you meet the person who coined Brexit means Brexit,


Prime Minister Theresa May? It doesn't say that in the itinerary,


but you get to go into a pub frequented by MPs, so maybe she will


drop in. You could do that for free, though, couldn't you? Rachel and I


are thinking of coming up with an alternative tour. ?3000 may be. We


will undercut them. Tell us what you think. What is your most memorable


tour? On a corporate level, it has to be flying up to Barrow in


Furness, and seeing these enormous nuclear submarines being built,


standing on the gantry. It was incredible. Just to see the state of


manufacturing. It was wonderful. Are used to take tours, as a summer camp


leader, I would take small children and dress them up in boiler suits,


hard hats and light and we would go through the Marble Arch Caves. I


loved the pin-up of the store in London, wine tasting engine tasting.


Do you remember it? I remember most of it. What else is in the papers


question that we must mention Kenneth, the temples in and around


Tokyo and Kyoto, he says. Sounds nice. Another story in The Times,


finance merger leaves 800 without jobs. Gas, so this is an interesting


one. When the merger was announced earlier in the year, so this is


Aberdeen and standard life, so two big financial firms, dominated in


Scotland. When the merger was announced, it was quite


controversial, because you have both heads still being part of the


ongoing group, and made play down the impact the job losses. This 800


job losses now leaking out could be as much as one in ten staff over


three years. So that is really very significant. A large nub of people,


and it is quite politicised because it is Scotland. -- a large number of


people. That is it from Business Live today, we will be back


tomorrow. See you soon.


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