:00:00. > :00:00.a blanket ban on the Russian team over the country's doping scandal.
:00:00. > :00:00.Those are the latest headlines from BBC World News.
:00:00. > :00:16.Now for the latest financial news with World Business Report.
:00:17. > :00:19.It's time for European airlines to fasten their belts.
:00:20. > :00:22.The region's largest, Ryanair, will tell us if it's flying the same
:00:23. > :00:25.course as Lufthansa and Easyjet - both hit hard by all
:00:26. > :00:35.Shares in the company behind Pokemon Go tumble in Tokyo.
:00:36. > :00:46.We're going to find out why Nintendo's investors have cooled.
:00:47. > :01:02.Now we go. Bring it down. Sorry about that. Hello, we have got a
:01:03. > :01:03.cracking programme. In under an hour's time
:01:04. > :01:05.the budget airline Ryanair will report its latest set
:01:06. > :01:07.of financial results. Last week, fellow budget carrier
:01:08. > :01:10.Easyjet reported a drop in profits following the UK's decision
:01:11. > :01:17.to leave the European Union. The referendum result has seen
:01:18. > :01:20.a 10% drop in the value This has made it more expensive
:01:21. > :01:25.for UK-based airlines to buy fuel. The weak currency also raises prices
:01:26. > :01:33.for British holidaymakers who decide And it's not just the exchange rate
:01:34. > :01:43.which has been affected At present, British airlines benefit
:01:44. > :01:52.from the EU's single aviation market, giving them
:01:53. > :01:58.unrestricted access to cities The referendum could potentially
:01:59. > :02:03.make it more difficult for companies like Ryanair to fly to Europe
:02:04. > :02:08.from its London-based airports. All of this has taken its toll
:02:09. > :02:14.on Ryanair's share price. The company has lost around 20%
:02:15. > :02:26.of its value in the last month. Let's get more on this. Peter
:02:27. > :02:31.Morris, chief economist at Ascend, joins us now. Thank you for coming
:02:32. > :02:35.in at this horrible time of the morning. A couple of weeks ago we
:02:36. > :02:41.were talking about easyJet's potential problems with exit. EU
:02:42. > :02:46.airlines as I have just said have that point to point access. EasyJet
:02:47. > :02:50.is a UK airline. When we leave the EU it will be a UK airline, it will
:02:51. > :02:54.not be able to do that point to point. But Ryanair is based in
:02:55. > :02:59.Ireland, still part of the EU. So it should have no problems? You have to
:03:00. > :03:03.look at the proportion of Ryanair routes that fly to and from the UK,
:03:04. > :03:09.which is nearly 40%. It was planning to increase year-on-year. 40% of its
:03:10. > :03:14.flights originate out of the UK? Either they fly into the UK, or they
:03:15. > :03:17.fly out of the UK. As a consequence, there is a dependence on UK
:03:18. > :03:22.travellers and the value of the British pound. OK. That could be a
:03:23. > :03:27.big potential problem. We will see what Ryanair says about that, when
:03:28. > :03:30.they release these numbers. But Ryanair does have an advantage on
:03:31. > :03:36.its side of the fact that it has a flexible model, right? Yes. So it
:03:37. > :03:40.sees a downturn in one area, it simply moves the plane somewhere
:03:41. > :03:44.else. Is that right? Well, whereas Lufthansa would fly at virtually
:03:45. > :03:49.everything to and from Germany, Ryanair has the advantage of ink
:03:50. > :03:52.spread all the way over Europe. It can rebalance its network to a
:03:53. > :03:56.degree, depending on the strength of individual currencies, depending on
:03:57. > :04:02.the strength of the economy, and so on. It has got that Flex ability.
:04:03. > :04:06.Nonetheless, it is now so big and operator that if you start to reduce
:04:07. > :04:12.the power of the UK market, it will have an impact. Let's talk about the
:04:13. > :04:17.drop in the pound sterling, which is around the 10% mark. It certainly
:04:18. > :04:22.has an impact on easyJet, as you know, but when airlines buy fuel
:04:23. > :04:25.they use dollars. They also use dollars to buy planes. Is that
:04:26. > :04:29.having an impact on the likes of Ryanair as well? You have to look at
:04:30. > :04:32.the shape of the UK market. Something like two thirds of that
:04:33. > :04:37.market is outbound. So the attraction of going from Marseille
:04:38. > :04:41.to Liverpool is not, perhaps, the same as going from Liverpool to
:04:42. > :04:44.Marseille. There is a natural flow. It does not mean that just because
:04:45. > :04:48.the pound is cheaper that everybody flows back to the UK to get the
:04:49. > :04:54.advantage of the pound. There is a north- south tourism development.
:04:55. > :04:56.Peter, short and sweet. We appreciate your time. That was Peter
:04:57. > :04:57.Morris. Shares of Nintendo tumbled as much
:04:58. > :05:00.as 16.5% in early trade this morning after the company said the smash-hit
:05:01. > :05:03.mobile game Pokemon Go would have only a limited impact
:05:04. > :05:17.on its earnings. Mariko Oi is in our Asia
:05:18. > :05:27.Business Hub in Singapore. Good to see you. I am not too sure
:05:28. > :05:33.that was the smartest thing for Nintendo to say, also very limited.
:05:34. > :05:40.The potential could be huge, but Nintendo were saying, not quite?
:05:41. > :05:43.That is right. I think that is the big question investors have had,
:05:44. > :05:53.whether people can continue chasing Pokemon Go Rector 's for that much
:05:54. > :05:59.longer. -- Pergamon characters. -- Pokemon. The statement did affect
:06:00. > :06:01.the company's share prices, but I should add that its shares have
:06:02. > :06:07.jumped by some 60% since the launch of Pokemon Go, so be company is
:06:08. > :06:11.still doing OK. But it is important to remember that Pokemon Go was not
:06:12. > :06:16.actually developed by Nintendo. It gave the rights to an American
:06:17. > :06:19.start-up company, to use the characters, to create this game.
:06:20. > :06:24.That is why the statement came out saying that its impact on the
:06:25. > :06:31.earnings might be somewhat limited. Indeed. Well, we will keep across
:06:32. > :06:36.it. Have you played it? No. No? It is not available in Singapore! Well,
:06:37. > :06:39.there you go. I have not played it either. It is available here, isn't
:06:40. > :06:41.it? Of course it is. Finance ministers together
:06:42. > :06:44.with central bank governors have been meeting in Chengdu
:06:45. > :06:46.in China this weekend. The members of the G20 pledged
:06:47. > :06:49.to support global growth and improve The meeting in Chengdu was somewhat
:06:50. > :06:53.dominated by the impact of Brexit, Also at the summit, Britain's
:06:54. > :07:03.finance minister Philip Hammond said the UK is keen on a free
:07:04. > :07:06.trade deal with China. Guy Foster is and economist and head
:07:07. > :07:25.of research at Brewin Dolphin. Guy, great to have you with us.
:07:26. > :07:32.Let's begin with that deal, because a lot of the pro- exit campaigners
:07:33. > :07:35.during the lead up to the referendum, that is what they were
:07:36. > :07:39.talking about, these sorts of things. "We Can do a deal with
:07:40. > :07:43.China, with the United States". It would be a great deal to get done,
:07:44. > :07:48.but let's be frank. The UK cannot you any deals until it has
:07:49. > :07:51.officially left. Absolutely right. It is not in a position to start
:07:52. > :07:55.negotiating deals while it is still an EU member, and that is one of the
:07:56. > :07:59.things that people found distasteful about membership of the European
:08:00. > :08:04.Union, really. I think the issue with China, obviously it is one of
:08:05. > :08:07.the best economies in the world, so aesthetically it looks very
:08:08. > :08:13.positive, if you can do a trade deal with China. It and the United
:08:14. > :08:19.States, they are still a long way geographically from the UK, so in
:08:20. > :08:28.terms of trade in goods there are going to be challenges to overtake
:08:29. > :08:33.Europe, where we are already very established in our trade
:08:34. > :08:36.relationships. That said, we keep talking about how China will be an
:08:37. > :08:41.attractive offer, but the UK is an attractive offer as well, right?
:08:42. > :08:45.China still wants access to the UK's economy, the fifth biggest in the
:08:46. > :08:50.world. It does, and there have been a lot of areas in which China and
:08:51. > :08:57.the UK have co-ordinated, most notably in things like clearing and
:08:58. > :09:01.the administration of the Chinese currency, the plan for which is that
:09:02. > :09:11.it will become a much more significant vehicle within global
:09:12. > :09:15.trade. It's just hasn't been the case, -- it just has not been the
:09:16. > :09:17.case over the past few years. It has actually been diminishing, it is a
:09:18. > :09:23.less important currency than the pound sterling. We are running out
:09:24. > :09:26.of time, but I will ask you this. After the G20 get together they
:09:27. > :09:31.issue a letter, a communique. Talk about boring. It is always the same
:09:32. > :09:36.stuff, we want to do this, we want to do that. The fact is, they have
:09:37. > :09:39.really done nothing, and there is nothing that they can do, or are
:09:40. > :09:44.prepared to do, that will boost global growth. Yeah, well, the
:09:45. > :09:49.communique is always something of a sort of wish list. It would be great
:09:50. > :09:52.if we could co-ordinate more to reduce environmental damage, if we
:09:53. > :09:55.could co-ordinate more to support growth, most notably, if we could
:09:56. > :10:00.co-ordinate more on things like taxation. That is the big story that
:10:01. > :10:04.the Chinese are trying to push. Then you have these individual topics of
:10:05. > :10:08.interest. At the moment it is Italian balance sheets. Well, they
:10:09. > :10:12.don't mention Italian banks by name, but everybody knows that is what
:10:13. > :10:15.they are talking about. And the statement that they would like to
:10:16. > :10:19.see, everybody would like to see, the UK to continue to have a close
:10:20. > :10:24.relationship with Europe. That was the other topical issue in question
:10:25. > :10:26.at the moment. OK. I wish I had more time on the programme, but we
:10:27. > :10:29.appreciate your time. US telecoms giant Verizon
:10:30. > :10:31.Communications is to buy Yahoo's search and advertising
:10:32. > :10:33.operations for $5 billion, US internet firm Yahoo announced
:10:34. > :10:37.in February that it was looking at "strategic alternatives"
:10:38. > :10:39.for its core internet business. Verizon declined to
:10:40. > :10:42.comment on the reports. A formal announcement is expected
:10:43. > :10:45.later on Monday before US markets Japan's latest trade figures showed
:10:46. > :10:50.a 7.4% drop in June exports from one year ago, as a strong
:10:51. > :11:01.yen made Japanese goods Don't go anywhere. I am staying
:11:02. > :11:03.right here to take a look at some of the newspapers from around the
:11:04. > :11:05.world, coming up. See you shortly.