30/05/2017 World Business Report

No frills airline, Ryanair, thought to be about to announce

We'll find out what they are doing right while others struggle.

More banks fines in the wake of the 1MDB scandal.

Singapore's UOB and Credit Suisse are fined just over a million

dollars for money laundering for transactions related

to Malaysia's scandal-ridden state fund.

Japan, how consumers are making a bit of a comeback. The biggest in

something like ten years. In a few hours' time,

the no frills airline, Ryanair, will report its latest set

of financial results. Europe's biggest carrier

by passenger numbers is expected to announce a 14% jump in full year

profit to around $1.5 billion US. Ryanair's performance is a sign

that its cost-cutting measures are helping the business compete

as overcapacity continues Investors seem encouraged by

the progress the company is making. Ryanair's share price is up around

70% compared to its post-Brexit low. Nonetheless, it's been a difficult

period for airlines with security fears and political uncertainty

clouding the skies for many What's more, there could be further

turbulence ahead as the rising oil price hampers any

attempts to reduce costs. The world's oil producing nations

have just agreed to extend production cuts, though

it remains to be seen With me is Graham Dunn,

editor at Flightglobal. They seem to have managed to do this

because of cost-cutting. What have they done? RyanAir have been in

expansion mode. They placed a big order for 7800s they are cheaper to

run. And as you get bigger, you can make better deals. They have

long-term partnership deals with airports. They have promised to grow

new routes. When they last were talking before the Brexit referendum

and immediately afterwards, they said it would be a real problem for

them. There was a lot of uncertainty around it. At that time, no one

quite knew what was going to happen. Currencies obviously had a big

impact. Tickets sold in the UK, a large market for them, obviously,

the yields from that went down because of the drop in currency. Why

else? Surely they were selling a lot not just in the UK. Yet. That is the

success of its model, it has a pan-European carrier model. It is

right across Europe. That gives it the opportunity to, you know, ramp

up in areas that are prosperous and doing well. The airline has talked

about perhaps doing... It has talked about pivoting back, I think that is

the expression used, growth in the UK amid Brexit. Do we have any idea

what will happen with Open Skies after, during, the Brexit

negotiations? That is at the heart of it. The answer is no, really. I

think no one thinks there is not a desire to make it happen. The big

concern is does it become a political football, collateral in

something else? If Bradford does not turn out to be smooth, the

negotiations, that makes it difficult. -- Brexit. Airline like

certainty and the rules and regulations they are operating

under. They like to know those. Thank you.

Singapore has fined two banks over the 1MDB scandal.

Singaporean bank UOB and Credit Suisse are facing

penalties of more than half a million dollars each.

Let's go to Sharanjit leyl in our Asia Business Hub

Let's go to Sharanjit leyl in our Asia Business Hub in Singapore.

Tell us what happened. What was the scandal? That is right. It follows a

two year review by financial regulators here. We know that

Malaysia's 1MDB fund is at the centre of money laundering

allegations. Six different countries had it set up by the Prime Minister.

It was meant to turn Kuala Lumpur law into something of a financial

hub. It attracted a lot of attention just two years ago after it missed

payments for some of the $11 billion it owed to banks and bond holders.

There was The Wall Street Journal article, a number of reports,

alleging that they had seen a lot of that money, some 700 million of the

fund, go into the Prime Minister's personal bank account. Quite the big

scandal here. Many countries are investigating financial institutions

linked to 1MDB. And Singapore is right across the border. It has been

partially affected as well, of course, according to the managing

director of the Central Bank. The two year-long review holds key

lessons for both it and financial institutions in Singapore following

abuses linked to the 1MDB fund flows, they say. He went on to say

that the price for keeping them clean as they grow in size and

interconnect is vigilance, according to him. So, yes, these fines being

forced on these two banks. They are not the only ones under scrutiny.

There have been others as well, with fines adding up to $20 million of

penalties. Eight different banks here. Thank you so much, Sharanjit

Leyl. It is two months since

British Prime Minister, Theresa May, started the process

of leaving European Union. How are businesses

reacting to the news? Anita Massarella is an exclusive

dress designer based Her average dress sells

for over $12,000 and she imports her materials

from all over the world. The business is designed. We

specialise in designing and producing dresses. My biggest break

was when I got a telephone call from silk suppliers who wanted beauty

wherefore Margaret Thatcher. -- beautyware. We design everything it

in-house. Everything is made in Britain. I always use the best

suppliers of fabrics. We used silk from China, India, France, and good

old Yorkshire. The world's finest cashmere. British suppliers are

using Brexit to put up prices. No one else around the world even

mentions it. I think because I have been in business for 27 years, I

cannot see that Brexit is going to affect the way I trade with anyone.

With Brexit, I do think it is going to be a good thing. I can only see

it opens up a much wider world. It would be wonderful if we can

generate better trading agreements with Asia and other parts of the

world. We... I find, personally, it is easy to deal with traders from

other parts of the world. I think Britain needs to get its act

together. I think the worst trouble for us as we are not good sales

people. I am the daughter of Italian immigrants so I think Britain has

given immigrants and amazing opportunity and it has brought all

these very skilled people together, which I think is absolutely

wonderful. But at the same time, I think we have got to get out further

into a bigger world if Britain is to survive as a nation doing business.

Anita Massarella talking there. And now for some other news.

Retail sales in Japan rose more than 3% in April

That's higher than economists had been expecting and comes just weeks

after government data showed the economy grew faster

than expected in the first three months of the year,

clocking its longest period of expansion in more than a decade.

A quick look at the markets. I hope. The Nikkei is down. The oil price

around $52. Not doing a huge amount despite attempts by OPEC and

non-OPEC countries to cut back on production. We will be back in a

short while to talk about the