Transcripts For BBCNEWS BBC Business Live 20170206 : vimarsa

BBCNEWS BBC Business Live February 6, 2017

Award winning Business Leader who took over a Waste Management company at the age of 19. Also today ryanair profits are down but passengers are up. Fares continue to fall. So do you still have the cheap flights bug . Just use the hashtag bbcbizlive. If you are planning your holidays, why not tell us where you are off to . Welcome to the programme. The political events of 2016 may have ignited an unprecedented period of uncertainty for the Global Economy but one thing that appears to remain unaffected is the growing appetite of chinese investors. Last year Chinese Investment in the us increased by nearly 190 percent. Meanwhile, Chinese Investment into europe grew by 90 percent. All of this gives the impression 2016 was a good year for western economies when it comes to foreign investment. So will this trend continue . Well the uk is about to begin a two year period of brexit negotiations and this echoes wider concerns over the health of the european union. France, germany and the netherlands are all set to head to the polls later this year and eurosceptic parties are gaining ground in all three countries. And in the us the uncertainty about what the Trump Administration means for future deals with china is very unclear. During the recent Election Campaign he vowed to impose punitive tariffs on chinese imports. Add to that moves from chinese authorities to crackdown on money flowing out of china. Chinese overseas deals could have been worth billions of dollars more if beijing had not blocked some 30 acquisitions with europe and the us. Tim gee is mergers and Aquisitions Partner at Baker Mckenzie and one of the authors of the report. He explained why those deals were blocked. Some of the transactions and ousted not complete because the chinese bid was outbid. The chinese bid for London City Airport was outbid by a canadian pension fund. Then you also have regulatory control from the west, particularly in the us. Some deals were blocked there, including european deals. Then you have controls within china, and what we have seen is concern over capital outflow from china, and that has caused some transactions to be pulled as a result of china saying, we dont want this to happen. Linda yueh is a fellow in economics at the University Of Oxford and an adjunct professor of economics at London Business school. Nice to see you, linda. This report is interesting on what happened last year, because the numbers are staggering, the amount that was invested in the us and europe, but also the amount that wasnt. Talk us through a bit more the reasons why. The chinese are trying very hard to control out what capital movement. There are some economic reasons. One is to stabilise the value of the chinese currency. Remember, china p995 chinese currency. Remember, china pegs its currency. They have to control the amount of currency flowing outside its borders. The other reason is they dont Want Companies companies being bought, but that is how commercial transactions should work. That is more of an excuse. The real reason is that they want to control the capital markets, just as they control pretty much Everything Else in the Financial Markets in the country. I wonder what your take is on the future appetite of chinese investors investing in the us when we have quite convert of statements from donald trump, accusing china of manipulating its currency, questioning the one china policy. Will that affect investors willingness to pour money in . think the rhetoric will have some impact, but i wouldnt overstate it. Politically, there has always been a lot of tension between the us and china, but a lot of businesses do deals anyway. The chinese dont view donald trump that negatively. There are some who are worried, but there are some who are worried, but there are others who say, he is a businessman. He welcomed some Chinese Companies to make jobs businessman. He welcomed some Chinese Companies to makejobs in america. There are only two roles in an american economy, he said hire American People and by american products. Purchase american products. Purchase american products. There has been a shift away from. The Chinese Government is attempted to control notjust the Financial Markets but the whole economy. Chinas growth is slowing. It is one of the reasons why Big Companies want to invest overseas, to diversify. The government doesnt wa nt to diversify. The government doesnt want them to put money into things that they dont think will help chinas growth. They want innovation, expertise and things like high end financial services, high tech manufacturing, so their investment in america and europe tends to be permitted if it is of that ilk. It tends to be scrutinised if it is more about buying entertainment companies. Thanks, linda. All was good to have you on the programme. There is more about that on our website. Take a look when you have time. Some other news now. Apple, facebook, google and microsoft are among 97 companies to have filed an official Court Document opposing Donald Trumps travel ban. The us president s Executive Order prevents people from seven mainly muslim countries entering the united states. On saturday, the federal Appeals Court rejected the Trump Administrations request to reinstate the ban after it was initially blocked a day earlier. Ryanair has reported an 8 fall in profits as increased competition forced the Irish Airline to cut fares. The company says that average Ticket Prices may have fallen by as much as 15 per cent over the winter period. Ryanair has warned that 2017 will continue to be a difficult year for the industry, but the carrier left its profit forecast unchanged. Two of japans biggest automakers have announced plans to work together. Toyota and suzuki said theyd been working on the deal since october. Leisha chi is in singapore. This is interesting, isnt it . Thats right. I just this is interesting, isnt it . Thats right. Ijust want this is interesting, isnt it . Thats right. I just want to this is interesting, isnt it . Thats right. Ijust want to mention that toyota has just released its latest earnings numbers. They have raised their profit forecast thanks to stronger sales. They say they expect profit of 15 Billion Us Dollars in the Financial Year to march, a 10 increase from the last forecast. Toyota last year lost its title as the worlds biggest car maker to volkswagen. The industry is getting more competitive. Tidying up with suzuki isa competitive. Tidying up with suzuki is a means to address that. They will develop green cars and other technologies, but it is worth mentioning that both companies have a history of failed alliances, so lets hope that this relationship works out. Thank you very much. Asian markets rose as investors tracked a record on wall street. That was fuelled by a better than expected jump in usjobs. Financial stocks in particular have been boosted by Donald Trumps review of trading regulations. Hes likely to relax the tighter regulations that were imposed on banks after the 2008 crash to try and prevent a repeat of that. In europe the main markets opened a shade higher but fairly flat. Some things to watch out for this week investors will be looking at the results from bp and total for the last three months of 2016. They are two of europes Biggest Energy companies. Will their results reflect the rebound in oil prices . And Samira Husain has the details about whats ahead on wall street today. If the last two weeks were anything to go by, we could see another busy week. It will also be a busy week per Business News, as Companies Continue to report earnings. General motors will release results on tuesday and it is expected to have a record year. Coca cola is also reporting this year. Fizzy drinks are going flat as consumers look for are going flat as consumers look for a healthier options. The company has been trying to diversify away from sugary drinks into coconut and vitamin water, but it hasnt been enough but has it been enough . Wall street is twitter is reporting as well. Joining us is trevor greetham, head of multi asset at Royal London Asset management. A lot going on, as usual. Wed been touching on some of the issues. Lets talk about travel, because that seems to be impacting trade in asia, with shares doing well. Perhaps an Executive Order on Financial Regulation coming up soon . Yes, and you will generally here donald trump using the short form of the Consumer Protection act. He wa nts to the Consumer Protection act. He wants to deregulate the American Market generally, which would mean getting banks. Wasnt the regulation brought in to protect us against another 2008 style crisis . Yes. It is that a question about whether it will be a good thing or a bad thing, but it will have to go through congress. There will be opposition. Generally, we are testing americas separation of powers. Donald trump will say stuff and then see what happens. The challenge to immigration. Companies now joining challenge to immigration. Companies nowjoining the legal case to try and get the travel ban overturned. From his point of view, he cant lose, because he says, i will ban people from these countries, and he is then stopped from doing it, but he can say to his supporters, i tried and i was stopped by so called judges and so called politicians. He has nothing to lose. There is a continual war in the markets between what it sees good, such as stimulus, and what they see as bad, all the crazy stuff. Other crazy stuff coming up this week what are you watching . Amongst all this political noise, the World Economy is strong, which is good. Markets. China is strong this year, whereas it was wea k strong this year, whereas it was weak for strong this year, whereas it was Weakforfour Orfive Strong this year, whereas it was weak for four or five years. Maybe they dont want to slam the brakes on, so it will stay quite strong. Thank you forjoining us. Still to come well speak to the woman who unexpectedly took over the family firm at the age of 19 and turned it into a multi Million Dollars business. Youre with Business Live from bbc news. Lets tell you a bit more about ryanair reporting and 8 fall in profits. They said average fares fell to £28 per customer, a fall of 1796. Fell to £28 per customer, a fall of 17 . Traffic was up 16 on last year. The chief Financial Officer of Ryanairjoins Us year. The chief Financial Officer of ryanair joins us now. Year. The chief Financial Officer of Ryanairjoins Us now. Its an interesting time for you as a company, as many of your rivals. More people travelling but youre making less money per passenger and your profits are going down. Good to talk to you. Were having a relatively good year, to be honest. 0ur profits in the first nine months we re 0ur profits in the first nine months were up. As you said, Passenger Numbers were exceptionally strong. We had record load factors of 95 . An average fare of £28. Fares could be down as much as 15 in the fourth quarter. We have maintained our guidance of 1. 35 billion, which would be record profits for ryanair this year. It really is an issue for you, isnt it . We have heard you will sustain those low prices the rest of this year and probably the First Quarter of next, so your profits will be more and more squeezed, when they . Wont they . We have the lowest fares of anyone out there, and we announced this morning that our total costs will be down by 4 . When you consider that our next nearest competitors s 40 higher than ours, and yet were looking at unit cost reductions, excluding fuel, that puts is in a strong position relative to everyone else. Were better hedged next year compared to competitors. We have aged 85 of our fuel requirement, which is our biggest cost, and there will be significant savings on fuel. We are very good at cutting costs in the businesses and keeping competitive advantage. We grow profitably on the back of it. Next year, our plan is to deliver 130 million customers. Thats the chief Financial Officer. More detail is on our website on ryanairs earnings more detail is on our website on rya nairs earnings and more detail is on our website on ryanairs earnings and other companies out with news. Youre watching Business Live. Our top story, Chinese Direct Investment into the us and europe more than doubled to a record 91; billion last year. Lawyers Baker Mckenzie say that was despite 75 billion worth of deal falling through. A quick look at how markets are faring. This is how theyre looking after a fairly flat open. The ftse is up a shade. The dax and the cac down slightly. Waste disposal is big business. In the uk alone, the industry is worth more than £0. 5 billion. But it is in a predominantly male run sector, jacqueline 0donovan stands out as a rare female leader. At the age of 19, jacqueline took over the Family Business following her fathers death. 30 years on and 0donovan Waste Disposal is a Fast Growing Firm with annual turnover of £19 million. It employs 160 people and mostly operates in london and the south east, a complex and very competitive environment. Jacqueline 0donovan, managing director of 0donovan Waste Disposal is here. Tell our viewers about the beginning for you. Because your father died suddenly when you were just 17. He was running the company . He was, yes. He had a successful business and he died back in 1985 when i was 17 and im the youngest of four. The youngest of four . The youngest of four. But it fell on your shoulders to run the business . It fell on all our shoulders, but it took a couple of years to stabilise and once it stabilised, we picked our role and mine was managing director. How did you manage that at such a young age . Youre running a company, what sort of Business Experience did you have at that stage and were you just winging it . I was winging it. At that stage and were you just winging it . Iwas winging it. I ran out of school at 16. I couldnt wait to get out the gatesment i had a job asa to get out the gatesment i had a job as a childminder in germany which i didnt take on and the rest is history. What reaction do you get from friends when you tell them your line of work . They say what line of work are you in and i say, i bet you cant guess. Which they cant it isa you cant guess. Which they cant it is a difficult business to be in anyway, i imagine 30 years ago, at the age of 19, being a woman running this company in london it was extremely tough. What kind of barriers and difficulties did you face . First of all, the biggest barrier was i was a female in a male dominated industry which i think bothered the men more than it bothered the men more than it bothered me. Then i didnt play golf. That was also a bit of a hurdle especially when it came to. Do you play golf now . No, no time to shop or golf. That was a hurdle. But ijust shop or golf. That was a hurdle. But i just saw them as challenges and worked my way over them each and everyone. How did you overcome them . Was it by proving to people that you could hold your own and you were just as able to grasp this industry as they were . I didnt really think about it at all. It wasnt something that i thought about, oh, my gosh, im a woman in a male dominated industry. It was something i took as a challenge. I enjoy a challenge and i got on with it. The males felt more intimidated than i did. The actual industry itself has changed in that period of time . Oh, massively. We just chuck everything away in one bag and you guys would ta ke away in one bag and you guys would take it away. I imagine in the uk many viewers around the world have a similar experience, were separating our waste, we might get fined if we dont do it properly and it is left behind. It has completely changed. What has that meant for your business . It brought us to the fore front. 20 years ago if you were at a social event with regards to business you would tell people you we re business you would tell people you were in Waste Disposal, it was right move on to the next question or the next subject. Now, they want to know how you do it, what equipment is involved, whether people are still involved, whether people are still involved, and people are more interested in how its done. Is it harder to make money now . Oh, yeah, without a shadow of a doubt because it takes a lot more money, a lot more equ

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