:00:00. > :00:18.with Aaron and World Business Report.
:00:19. > :00:22.Africa's biggest economy faces its worst crisis in decades
:00:23. > :00:26.as airlines pull out and foreign currency runs low.
:00:27. > :00:30.Plus - you've heard of Carlsberg, but what about Hisense?
:00:31. > :00:33.Or the state oil company of Azerbaijan?
:00:34. > :00:35.They're just some of the companies sponsoring Euro 2016.
:00:36. > :00:47.We'll be finding out what's in it for football's brand new friends.
:00:48. > :01:02.It is Friday. We have that feeling. This is a bite-size snapshot of
:01:03. > :01:04.everything in the world of business and money. We have lots going on.
:01:05. > :01:06.We start in Nigeria, because Africa's biggest economy
:01:07. > :01:08.is facing its worst crisis in decades.
:01:09. > :01:11.The price of oil, which is how the country makes most
:01:12. > :01:14.of its money, is less than half what it was two years ago.
:01:15. > :01:16.That's brought growth to a standstill.
:01:17. > :01:19.And there is a chronic shortage of foreign currency -
:01:20. > :01:22.so much so that two major airlines, United and Iberia,
:01:23. > :01:25.have said they will no longer fly to the country because of a lack
:01:26. > :01:30.of demand and trouble collecting payments.
:01:31. > :01:37.Nigeria's currency, the naira, is pegged to the US dollar
:01:38. > :01:41.at this - an official exchange rate of 198.
:01:42. > :01:46.The problem is it's worth nothing like that anymore.
:01:47. > :01:47.In fact, on the black market on Thursday,
:01:48. > :01:52.a US dollar would have cost you 368 naira.
:01:53. > :01:55.Two weeks ago, the government promised to free up the exchange
:01:56. > :02:00.rate so it reflects reality - but they have been stalling.
:02:01. > :02:04.They know it's going to mean a hefty devaluation.
:02:05. > :02:09.That means foreign firms are reluctant to invest in Nigeria.
:02:10. > :02:13.They are fearful of getting their money out again,
:02:14. > :02:24.There has been a plunge in capital coming into the country.
:02:25. > :02:28.In the first three months of this year, it was down almost 75% on last
:02:29. > :02:34.With good reason, perhaps - for instance airlines are now owed
:02:35. > :02:37.$600 million from tickets sold in Nigeria that the government has
:02:38. > :02:45.Still, some economists are hopeful that the promise of currency reform
:02:46. > :02:52.will mean much needed foreign cash coming in soon.
:02:53. > :02:55.It sends a signal even to investors out there because now everybody has
:02:56. > :02:58.been waiting for an adjustment of the currency so now that
:02:59. > :03:01.investors have seen that, yes, this is the line or the path
:03:02. > :03:03.that the central bank is towing, they're likely to bring
:03:04. > :03:06.It was mentioned also that one of the supply
:03:07. > :03:09.sources is from foreign investors, so I expect that at least down
:03:10. > :03:12.the line, now that this message has been passed across,
:03:13. > :03:15.we should see some investment flows coming in.
:03:16. > :03:17.Anna Rosenberg is director for Sub-Saharan Africa Research
:03:18. > :03:32.Great to have you in. For the uninitiated who don't follow this
:03:33. > :03:35.kind of story, we keep saying Nigeria is having a problem with
:03:36. > :03:42.foreign currency. Can you break that down? What does that mean for an
:03:43. > :03:44.economy if it is lacking in foreign currency? For an economy like
:03:45. > :03:50.Nigeria, it means a lot. They depend on imports. It does not produce as
:03:51. > :03:55.much locally. Oil is a major source of foreign currency earnings. It
:03:56. > :04:04.sells it in dollars, so Nigeria gets the dollars and uses it to... Is
:04:05. > :04:10.lack buy products. Does that mean they are importing less? Yes, to
:04:11. > :04:14.some extent, because they can't get access to goods because they can't
:04:15. > :04:18.pay for them. You have a massive problem with inflation because
:04:19. > :04:23.prices are going up for pretty much everything, simple things like
:04:24. > :04:32.tomatoes, 100% price increase. Is that why be Nigerian government
:04:33. > :04:42.Israelite and to put its currency, flight it? If it devalues its
:04:43. > :04:49.currency, then things go up, the prices of everything? Fear of hyper
:04:50. > :04:53.inflation. There is a lot of political fear as well, because the
:04:54. > :04:57.president, who had a brief stint of power in 80s, witnessed massive
:04:58. > :05:01.currency depreciation that was supposed to fuel local
:05:02. > :05:07.industrialisation but didn't, and caused massive price increases and a
:05:08. > :05:10.major economic crisis. He is reluctant to contribute to a new
:05:11. > :05:16.depreciation of the economy. But at this point it is a necessity.
:05:17. > :05:20.Absolutely. Is it almost like a dog chasing its tail that foreign
:05:21. > :05:24.investors are sitting back and looking at what is going on with
:05:25. > :05:28.Nigeria and going, at the moment, I don't want to put money in to that
:05:29. > :05:33.economy? Yes. To some extent is true. We work with Western
:05:34. > :05:38.multinationals that do business across emerging markets. Some have
:05:39. > :05:42.been investing in Nigeria for the past three years aggressively, and
:05:43. > :05:46.they still believe in the long-term opportunity of country. They are
:05:47. > :05:51.more cautious and are revising targets, but remain committed. Then
:05:52. > :05:55.there are those who have been eyeing Nigeria for a while and looking for
:05:56. > :05:59.excuses not to make more significant investments because there are so
:06:00. > :06:03.many problems in the world they preferred to focus on the few big
:06:04. > :06:06.growing economies like India or even Poland. They are more reluctant.
:06:07. > :06:11.Short and sweet, but thank you. To football now - because you can't
:06:12. > :06:14.fail to have noticed that the European Championship -
:06:15. > :06:17.otherwise known as Euro 2016 - It is the most-watched sports event
:06:18. > :06:23.in the world after the Olympics Companies have spent some $450
:06:24. > :06:28.million to be official sponsors - But are they getting good
:06:29. > :06:32.value for money? We've put together a little
:06:33. > :06:46.explainer for you. Jacques de Cock is from
:06:47. > :08:00.London School of Marketing. Great to have you with us. Who are
:08:01. > :08:04.the official sponsors for Euro 2016? The major one doing it every year is
:08:05. > :08:12.Adidas, Donald, Carlsberg and Continental. You saw that clip and
:08:13. > :08:17.that study with people who thought Carlsberg is the official beer, but
:08:18. > :08:20.they thought it was something else. Does it really pay? Some of these
:08:21. > :08:25.companies have paid millions and not getting recognition. Before the
:08:26. > :08:35.event, they know the sponsors of their teams. If you ask an English
:08:36. > :08:41.person who is sponsoring your 216 -- Euro 2016, they will say it Nike.
:08:42. > :08:46.But then never see on television Adidas, McDonald's and all of those
:08:47. > :08:53.people. They will see them. Football seems to have new friends. The state
:08:54. > :08:58.oil company of Azerbaijan? And this Chinese tech company called Hisense?
:08:59. > :09:08.As a vagina is really weird. They want to prove -- Azerbaijan is
:09:09. > :09:14.really weird. What better opportunity than a billion people
:09:15. > :09:23.seeing their brand in the next month. After a month people will no
:09:24. > :09:27.what the state all coming is. Also interesting, this Chinese take them.
:09:28. > :09:35.They are having a big push into football and sports, so it is
:09:36. > :09:42.interesting we have a Chinese them on board. Hisense is a state firm
:09:43. > :09:45.that is growing out of their setup. Televisions, mobile phones, and they
:09:46. > :09:51.will make a push of their own brand in Europe. They will become the new
:09:52. > :09:54.Samsung or whatever. That is right they sponsoring football because
:09:55. > :09:58.they get maximum visibility. It is the biggest tournament by a long
:09:59. > :10:03.while. We appreciate your time. Thank you for coming in. Have a
:10:04. > :10:08.great weekend. Will I have time for this? Let me leave you with a couple
:10:09. > :10:10.of stories making headlines around the world.
:10:11. > :10:13.The downturn in the UK oil and gas sector could could have cost more
:10:14. > :10:17.than 120,000 jobs by the end of this year, according to a report.
:10:18. > :10:20.Oil Gas UK says 84,000 jobs linked to the industry went in 2015,
:10:21. > :10:22.with 40,000 losses expected this year.
:10:23. > :10:25.Many companies have been struggling under the weight of a sustained fall
:10:26. > :10:46.It is not a pretty picture in Asia. All numbers in the red. Will be fed
:10:47. > :10:55.raise the cost of borrowing in the world's the best economy? --
:10:56. > :10:58.biggest. You can find me on Twitter. I will be back to take a look at the
:10:59. > :11:03.pictures. -- papers.