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This is Business Live from BBC
News with David Eades
and Susannah Streeter.
Passengers are up but profits
are down, as Easyjet
gives its latest numbers
for the last year.
Live from London, that's our
top story on Tuesday
the 21st of November.
The low-cost carrier blamed
a weaker pound for a 17%
fall in pre-tax profits,
just as the company
is saying bon voyage
to Chief Executive Carolyn McCall,
who leaves in December.
Also in the programme,
the US government has filed
a lawsuit to try to stop
the multi-billion dollar takeover
by the American telecoms giant
AT&T of the media group,
A quick look at the markets and the
message coming out of Europe to
start with, it is down, bucking the
trend we've seen across Asia and the
Educating the masses: we'll be
speaking to the founder
of a tutoring company that's helped
20,000 students in just four years.
In the US, a turkey will be
pardoned by the President
ahead of Thanksgiving.
Today, we want to know
about your holiday traditions.
Is it trees and lights?
Is it too early?
Let us know.
Just use the hashtag BBCBizLive.
Hello and welcome to Business Live.
Easyjet has blamed a weaker
pound for a 17% fall
in annual pre-tax profits.
The budget carrier's profits
for the year ending in September
came in at $540 million.
However, it was not all gloomy news,
with passenger numbers rising
by 9.7% to 80 million.
In recent times, the company has
been looking to expand,
having put in offers to buy parts
of the now defunct AirBerlin
and Alitalia airlines.
It's been aided by the collapse
of rival Monarch earlier
in the year, especially
on some key routes.
And of course, its main rival
Ryanair is dealing with the fallout
of a disastrous scheduling
malfunction that led
to the cancellation of around 20,000
flights and shaved millions
from its bottom line.
This will be the last time
Chief Executive Carolyn McCall
reports earnings for the airline.
She finishes the job on December 1st
before taking up a new role as CEO
of ITV television here in London.
She told the BBC about
her decision to leave.
I think we have turned the company
into a really great airline.
So, I leave with sadness,
but I also think there is always
a time to leave and I would rather
be leaving when things are starting
to look very positive
and that's why I'm leaving.
I think seven-and-a-half years
is about the right time.
Victoria Moores is European
Editor and Bureau Chief
at Air Transport World.
Good morning. We heard from Carolyn
McCall, there, a good time to leave,
revenues up by 8%, even though
profits are not doing so well.
That's a real indication of the
where think -- way things are and
the air transport market at the
moment, passenger numbers up 9.7%,
revenues up by 8.1% but at the same
time, profits are down which
reflects the fact the passengers are
paying less for their seats. Less
than they have before.
It is more
about that than the currency
fluctuations or drop?
It's a mix of
everything that is going on in the
market. We have a fiercely
competitive market. Obviously,
things like currency fluctuations,
Brexit and the uncertainty around
that does not help but the main
thing is, European aviation, we have
got a lot of airlines and a lot of
But is it clear skies
for easyJet now? It has come out
with a good set of numbers, Ryanair
is struggling with scheduling, we
have had the collapse of Moloch. Do
you think the future looks good for
I don't think that any
airline ever celebrate another
airline's misfortune. But yes,
certainly if there are fewer players
in the market, fewer people fighting
for the passengers, it makes things
a bit easier if you have got
airlines that are really struggling
and desperately trying to get hold
of passengers exiting the market. We
have seen more of that busier than
we have in a long time, it has been
predicted for a long while that we
need consolidation and it's finally
happened this year.
But it feels
like a confident airline, Carolyn
McCall is obviously going to talk it
up as she goes but they are out on
the ground, looking to acquire,
looking to build for the future.
Absolutely. Willie Walsh was
speaking recently and he said the
traditional airlines were a bit
arrogant about the idea of low-cost
carriers when they first came on the
scene. Low-cost carriers have proven
they are to here stay, that the
business model works and under
Carolyn McCall's leadership, easyJet
has branched out to really attack
the primary hubs, to get business
passengers. EasyJet is a very
innovative airline as well, you see
them doing a lot of trials with
technology like using drones for
aircraft inspections, doing a lot of
automation together with Gatwick
Airport. They are really trying to
push the curve as opposed to
But possible turbulent
times ahead with the loss of the
open skies agreement with Brexit. Do
you think easyJet can weather that
They have already got some
contingencies in place. Airlines
have to be majority-owned within the
continent they operate or the market
they operate and they have set up a
new airline in Austria called
easyJet Europe to maintain the
rights to be able to fly the kind of
routes passengers are used to flying
with easyJet. They are putting
contingencies in place but there is
no doubt that doing that costs money
and ultimately when passengers are
not prepared to pay very much for
their tickets, it puts further
pressure on profits.
Thank you for
We're going to bring
you a big story from the US.
The Department of Justice will sue
to block a proposed $85 billion
takeover of Time Warner by AT&T.
Regulatory concerns around the deal
have ramped up in recent months
and now the US Justice Department
is saying it violates rules
governing fair competition.
Samira Hussain reports
from New York.
This is a deal that has always made
sense for the two companies.
AT&T is one of America's leading
mobile telecom operators.
So owning Time Warner's news
and entertainment properties
would really give it a big
competitive advantage and based
on precedent like Comcast's
take-over of NBC which went
through in 2010, this AT&T merger
looked like it would be
accepted by regulators,
but as soon as it was announced
in 2016, then-presidential candidate
Donald Trump made it clear
that he did not like it.
Mr Trump has also been very clear
about his deep dislike for the news
coverage of CNN, which is
owned by Time Warner.
Now responding to the news that
Mr Trump's Justice Department
is going to try to block the deal,
AT&T's boss didn't hold back
from the politics of the situation.
The bottom line is that we cannot
and we will not be party to any
agreement that would even give
the perception of compromising
the first amendment
protections of the press.
So any agreement that results in us
forfeiting control of CNN
whether directly or indirectly
is a non-starter.
The Department of Justice
denies any suggestion
that the deal is being blocked
because of the president's animosity
towards CNN and says that the AT&T
and Time Warner would simply have
too much media power.
The companies are clearly determined
to challenge that view.
Let's take a look at some of
the other stories making the news.
The last big procedural hurdle
to the completion of Keystone XL
pipeline was cleared on Monday,
when five members of the Nebraska
Public Service Commission voted
to approve an amended route
through the state.
But opponents have promised to tie
the project up in court
for years and TransCanada
is still studying its
Colorado regulators have
fined Uber $8.9 million,
saying the ride-hailing app allowed
57 people to work as drivers
without a valid license or had
committed other offences that
would have disqualified them.
Uber said it recently discovered
an error in its background check
process and is working to correct
The Turkish lira has fallen
to a new record low,
after the country's central bank cut
borrowing limits for Turkish banks.
The move was made to reduce
liquidity of the currency,
which has led to high inflation over
the past 12 months.
-- which is one of the world's worst
performers over the past year.
Tencent, China's biggest social
network and gaming firm,
has become China's first
$500 billion technology giant It now
has sights on securing
success in the rest of the world.
Leisha Santorelli is in Singapore.
Do you think it has got its sights
set on becoming the next Facebook?
It is actually bigger than Facebook
by market capitalisation now and
this is really exciting news because
it is the first Asian company to
join that exclusive $500 billion
club. Its only other members being
Apple, Alphabet, Microsoft, Amazon
and Facebook. Many viewers are
probably unfamiliar with Tencent
because the bulk of its success
comes from within China. As you
mentioned, it is China's biggest
social network and online gaming
company but the crown jewel is its
messaging service, WeChat which is
WhatsApp but on steroids, both have
about 1 million users but an WeChat,
you can pay bills, order food and
hail a taxi so whether always can
duplicate its success is where
remains to be seen but its recent
investment in snatch at might be key
to that. -- in Snapchat.
a look at the markets, easyJet 9.7
up -- Oenone Wood is set up on the
passenger numbers. Let's see if we
can get the markets. Count to three
committee we go, they are there now.
This reflects how Europe has started
this morning, not very encouraging
when you think of the Asian markets,
the Hang Seng on a 10-year high in
Hong Kong again and also the Dow
Jones last night was going along
pretty nicely. But Europe, a rather
May be that reflect the increased
Michael Hewson is chief market
analyst as CMC Markets.
Good morning. What do you think? The
collapse of German government
coalition talks has raised the
spectre again that we thought had
been put to bed with the election of
Yeah, and I think
fractious European politics is
nothing new but now it appears to
have spread to Germany and we saw
the Dax rebounding yesterday after
ending last week lower, there was a
perception Germany would get past
this but the fact Angela Merkel
feels it necessary to call an
election throws a host of new
uncertainties out there and the
likelihood is this political
gridlock is likely to move into next
year. Part of the rebound of the Dax
yesterday was mastered by the fact
that VW announced a significant
infrastructure boost to German
factories which is why it rebounded
but I think political uncertainty is
going to make it very difficult, not
only for Germany to return to a
stable political climate but it is
also going to complicate the Brexit
talks as well.
You talk about VW.
What exactly... They said they would
invest in electric cars in
particular, quite a significant sum.
It's a five-year plan and they will
be investing about 30- 40 billion
euros between now and 2022 with 14
billion euros in German factories
alone so it will have a significant
impact, not only in German factories
but also the supply chain. That is
why you saw the Dax rebounding as
strongly as it did yesterday, VW
shares closed up 4%, as did
Portia's. -- Porsche was Mac.
that not been announced yesterday,
it makes you wonder how much further
we might have seen the falls.
think that is why you are seeing a
tale of this morning. If there had
been a substantial bounce to the
lower euro, we would have seen the
Dax build on those gains but I think
it is going to be difficult for it
to significantly move higher, given
it is fairly close to all-time highs
Michael, for now, thank you.
We will talk through the papers with
Still to come.
The price of top tutoring: we'll
meet the 22-year-old founder
of a company specialising
in education that's
now worth millions.
You're with Business
Live from BBC News.
Kingfisher, Europe's largest home
has reported a fall in sales.
The company, which runs B&Q
and Screwfix in Britain,
says weak sales in
France are to blame.
Theo Leggett joins us live
from the Business Newsroom.
The company announced a huge
restructuring plan a while back. Any
sign it is reaping rewards.
moment it is causing more problems
than reaping rewards. This is the
early stages of a five-year plan an
part of what it set out to do was to
rationalise the way Kingfisher
bought products for its different
chains so B and screw fixed in the
UK, Castorama an Brico Depot in
France and so on. At one point, very
few of the products were sold across
different stores which was seen as
being wasteful, they had nine
different purchasing teams, there
was too much duplication so now they
are trying to get rid of that but
the consequence has been that the
chain has been trying to sell off a
lot of old product and has been
having a bit of trouble finding
enough of the new product lines.
There's been a bit of what they call
business disruption as a result. But
they say they are confident that in
the years to come, this major
structural change will read big
France still clearly a
Absolutely and we don't entirely
know why that is. About half of
Kingfisher's business is done with
France through Castorama an Brico
Depot and both of them have seen
like-for-like sales fall. Across the
James Connor it is down by about 4%.
In the UK, it is more of a mixed
picture, Brico Depot down about 2.5%
but Brico Depot, this monitor
growing rapidly, saw its sales rise
10% so it is the shining light,
doing well indeed so a mix picture
across the different businesses of
what is quite a large retail group.
Thank you for joining us.
There is some breaking news about
how the drugs firm Concordia
overcharged the NHS by millions. The
Canadian drugs firm overcharged the
NHS for an essential tried royed
drug. This is from the Competition
and Markets Authority which
investigated how much the company
was charging for those certain
tablets. Much more on the BBC live
You're watching Business Live.
Our top story - in the last set
of results with Carolyn McCall
as chief executive, EasyJet has
reported record passenger
numbers but a 17% fall
in annual pre-tax profits.
Now making money from education.
It's a fast-growing sector -
particularly in emerging economies.
Last year, the global
education industry was worth
$3.3 trillion with India,
China and the Middle East
all strong growth areas.
One company which has been able
to take advantage of the growing
sector is the New Zealand-based firm
Set up just four years ago
by a 18-year-old student, it's now
worth more than $140 million and has
a network of more than 2,000
tutors and mentors.
Jamie Beaton, Founder and
CEO of Crimson Education.
Now 22 I understand. Jamie, how have
you managed to set this up alongside
your own education. You have set-up
this company now worth millions of
dollars. How did you do that?
been an incredible journey. I guess
it came out of my personal
experience, growing up in New
Zealand there weren't many students
heading overseas. My own experience
navigating going to Harvard. From
there it lass been a brilliant team
and amazing support. Frankly the
biggest thing has been the success
of our students. How well we do for
our students drives the growth and
it has been the incredible results.
You applied for and were accepted at
So, I presume
from that one thing you learnt apart
from the fact that you can get in
wherever you like, there are
different approaches for everywhere
you want to go which is the basis of
what you are delivering?
I guess students are faced with a
really challenging and complicated
decision today when they are
navigating through university
choices. Every university degree is
distinct and everyone has big
implications on your future. We
really help our students navigating
what is the best programme for them
anywhere in the world. Many students
are looking at US options and
Singapore and domestic options here
in the UK.
I suppose, as well,
different schools offer varying
degrees of help for their students
depending on whether they are
private schools, state schools and
what they can offer?
High schools do
a fantastic job of working for their
students. The key thing is for the
career councillor, there is so much
complexity. It is hard for any one
person to have all that content in
mind. So our students work with the
teams and mentors, based around the
world helping navigate the difficult
Some are under graduates. I
can see the attraction for a bit of
extra cash, but others, they have
gone through the process. They are
in jobs as well. They are still
willing to be mentors?
Yes, so our
network is incredibly diverse. We
have got over 2,000, that includes
season educated experts. One of our
team, Kevin Simm got students into
Oxbridge and bridge and many have
won gold medals. So there is a huge
diversity in the age and background
of the mentors. The key thing is the
How does the mentoring
take place? Is it via Skype, or face
time or do the mentors meet the
students in person?
It is a blended
mix. We think that's the most
effective combination. We have built
an online classroom experience for
our students that let's them road
map their future and plan the
different years of university. They
can work with their mentors online
and share resources, but we have in
person delivery in London for our
This is not something you
pick up when you start revising and
say help me get through this. This
is a long-term strategic view for
youngsters to take, maybe a couple
of years even?
that's going to cost?
Yes. I guess
the key thing is many of our
students are signing up when they
are 13, 14, 15 with the view that
they are going to spend multiple
years in high school. The key thing
for us is to unpick their interests.
This is another example how you just
have to be wealthy to access the
best education. Surely, it's not
really fair for those people who
can't afford your fees?
with that. One thing we are focussed
on at Crimson is access. So any
student can apply and get funding
for our programmes and we are
committed to making sure whatever
students have the potential to go
overseas do that and we have do that
through our platform Crimson hub. We
are really trying to improve the
base and level of access for anyone
in any country going through the
Give us an idea of what it
would cost? I need two years of help
to get through and to get to my
dream university. What's that going
to set me back?
£3,000 to £10,000
for an annual programme. It is
personalised so some students come
to us, they have one mentor that
helps them with a specific
application and in other cases it is
a four year intensive programme.
is a good little earner for the
mentors who are at university I
suppose who don't have to work in a
bar, they can work on Skype. I'm
glad you have come along after my
boys left university. That's another
bank of dad it sounds like to me.
is important you are investing in
education and all that money on your
degree on the best programme. Many
of our students get financial aid.
In many cases our fees are paid for
by the scholarships.
Thank you very
In a moment, we'll take a look
through the Business Pages but first
here's a quick reminder of how
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Michael is back to
look at the papers.
We will talk about the Brexit talks
and this headline in the papers
today that apparently there is going
to be an up in the offer for the
Interesting dynamic that because I
think with the Budget tomorrow, I
think it's increasingly obvious that
the Chancellor is very
cash-strapped. So I think where to
the Budget it will be difficult for
him to do anything. Given the fact
that there is talk that the offer is
going to be upped. Contingent on
parallel trade talks by another 20
20 billion euros.
That's a good question, it might be
I think that's in the
negotiation! Nothing is agreed until
everything is greed. I think this
will be a tough sell for some in the
Conservative Party. When you've got
widespread austerity that we're
going to stump up 40 billion euros.
We don't know what the end result is
going to be.
Boris Johnson has gone
from go whistle to something for
something. So there is shifting
There is shifting, but you've
got to look at it from the EU's
side. Michel Barnier yesterday
suggested that ultimately they may
not get what they want with respect
to parallel trade talks in the Irish
border issue is resolved to their
We have headlines
saying no matter what divorce bill
is agreed and where the trade talks
start, banks in particular,
financial services firms will start
moving staff abroad because it's too
Well, from what Michel Barnier
said, UK banks are going to lose
their passporting rights. So it's
good planning to have some
contingency in place within the EU
for any business that you need to do
within the EU. So, given the
shambolic nature of this
government's Brexit negotiations and
the lack of any real opposition to
I really want to bring in
this last story about the turkeys
waiting for a pardon in the United
States. They are waiting in a hotel
room. Look at this! There they are.
They have had a luxury wait for the
turkeys in Washington.
President Trump is not expecting a
thank you from them otherwise he
will spend the next 14 hours
shouting at them.
Ray Grant saying
he is not going to be eating turkey.
He will be watching football with
his family and friends.
Thank you very much.
Those turkeys have come from
Minnesota this year, but which one
will get the pardon. Only one is
going back to Minnesota. We will see
what happens. That's it from
Business Live today. Thank you for
being with us.
Thank you, goodbye.