09/02/2017 World Business Report

Download Subtitles




The latest business news with informed analysis from the world's financial centres.

Similar Content

Browse content similar to 09/02/2017. Check below for episodes and series from the same categories and more!



Will open skies stay open under President Trump?


US airline bosses take their grievances to the White House today.


Top of the list, their fast-growing rivals from the Gulf.


Could the President's love of Twitter stop the rot


Some of you are going, what is he doing, it isn't even Friday? I will


tell you what, give me a minute and I will give you a snapshot of the


world of business and money. 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 That could mean a major


boost for 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. It 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, as one of the last acts of


the Obama administration. This caused howls of protest from US


airlines and unions. Norwegian says its creating at least


150 new US jobs and has ordered more than $18 billion worth


of planes 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. It is far too important for the US


economy for multiple reasons - for the activities of the Gulf carriers


to be cut back, because once you do that and you close the open skies


that you have today it has enormous ramifications. The US economy would


be severely affected by a closure, a shutting down of the open skies


arrangement, which has manifestly produced huge amounts of wealth for


Aerospace, Boeing, General Electric as well as everything else.


You and I know him quite well, Tim Clark, he is a big figure in the


industry. John Strickland, director of JLS


Consulting, joins me now. Thank you for coming in at this


horrid hour. You always do it, you need a medal. So, Tim Clark has a


point, doesn't he, and it is interesting because he is the boss


of the airline Emirates which is the one the US airlines are gunning for,


are they? Yes, the big airlines put in a complaint about the Gulf


carriers. They wanted to go to Congress. They made allegations of


unfair competition, these carriers from the Gulf came into the market,


and the document originally produced, which was about 50 pages,


the three Gulf carriers issued rebuttals into the hundreds of


pages, evidence countering the arguments, these carriers have


increased their services, the boss of Kata Airways told me last year, I


have at world US mayors in my office imploring me to start services to


the US -- Qatar Airways. The key beyond the end services and what it


means for access to major US cities which of course is all part of the


economy and job creation and so on is these guys by large numbers of


Boeing aircraft and a massive customers for Boeing. If there is


any poster boy for jobs it is Boeing. You are right that all three


are fast-growing and Emirates has been around since the 1980s but they


are all fast-growing and they purchase a lot of aircraft, they


seem to have the money compare to others, but is it at a point where


the worry is if President Trump says, OK, you know what, I am


scrubbing the open skies with the UAE and the Gulf regions, they will


save goodbye to Boeing and go to Airbus. With the buyback and jobs


for America, the aerospace industry, not only Boeing, sub suppliers and


engine manufacturers, are a massive part of the economy and support jobs


at home. We don't have a unified view in the airline community. The


D3 might lobby against Gulf carriers but others like Federal Express have


the reverse ID and they say the open skies agreements which allow the


Allied in our positive -- idea. They are positive for job creation. The


message is not even united in the industry. And the irony of it is


open skies, which many countries use, is a US concept. I have to ask,


if President Trump listens to airline bosses and rips up the open


skies with parts of the Gulf area, that will have a huge ramifications


for the global aviation industry. It could have a massive effect because


the US is the origin of these open skies agreement and they have been


seen as positive to global trade, positive to economic development in


tourism and airlines from the US and other countries, in whichever


partnership of open skies the US has formed, have developed air services


in part of a 21st-century economy. Aviation is so fundamental not only


directly for what it creates but how it supports and catalyses economic


growth more broadly so it will be a very interesting meeting today.


Indeed, we are going to be watching it closely. Thank you for coming in.


We appreciate it. Let's move on quickly.


It has been struggling to grow its user base and to make


Those are the main reasons why Twitter shares are down by almost


But could the election of avid Twitter user Donald Trump be giving


Analysts have been pointing out a rise in people


They say that could help Twitter finally find a buyer.


James Erskine is director of the online marketing company


It is good to see you and thank you for coming in. Let me ask you,


Twitter, you know, we are here again, Facebook when it went public


with were saying the same thing, it has to learn how to make money, it


has to learn how to make money from the users and it has done that.


Twitter still hasn't done that. It hasn't, no, and there are a number


of reasons we see for that, social circle, it is our job to see how


people engage with content across lots of different social media


platforms and Twitter, we are starting to see people see authentic


content from real people, and slowly they are starting to engage, so


Twitter before was having a problem with people using it more like a


newsfeed rather than a social network. One thing you need from a


social network is engage in it. Things to engage with. I have to


ask, talking of engaging, President Trump has been very engaged on


Twitter. Do you think that could actually give the company a boost?


You know, I think it could not necessarily because of him


specifically but more what it is indicative of, so fierce political


discourse and debate amplified in an online environment. We also saw it


with Brexit as well, Twitter have lots and lots of opinions around the


key political issues and I suppose the next step is what else people


can debate, so, does it go beyond politics, to other niche communities


where they can have those back and forth opinions? OK, will they find a


buyer, yes or no, I have to go, will they? Eventually, yes, it is all


about the content on Twitter to allow them to do that. We appreciate


your time, short and sweet, thank you very much, and I will be back to


look at the papers from around the world. Follow me on Twitter. I will


see you shortly. A new law designed to help protect


people in England from so called revenge evictions by rogue


landlords isn't working. That's according to senior MPs


and housing lawyers.