And how to stand out in a crowded market . We meet the firm thats using Computer Games to encourage us to buy more. Well explain how it works. And as critics blame ba for too many cost cuts we want to know is the golden age of travel over . Do you want more frills, not no frills . Let us know, use the hashtag bbc bizlive. Hello and welcome to Business Live. The no Frills Airline ryanair has reported its latest set of financial results. Europes biggest carrier by Passenger Numbers announced a 6 jump in full year net profit to 1. 46 billion. Ryanairs performance is a sign that its cost cutting measures are helping the business compete as overcapacity continues to dog the industry. Earlier, we spoke to neil sorahan, rya nairs chief financial officer. We saw our unit cost dropped by 11 last year. Excluding fuel, they were down 5 . So we are seeing unit cost savings coming through on all lines. There is a huge amount of uncertainty about brexit. There is no direction as to which way the uk will go on aviation. The best Case Scenario would be that they remaining open skies, meaning there is the change. But a hard brexit is looking more likely, meaning measures will have to be put in place. If things are not negotiated by october 2018, they will not be ratified in time for the exit from the eu on the 31st of march 2019. That could therefore be a distinct possibility of no flights for a period of time in and out of the uk and europe. That could be days, weeks or months, nobody knows. But it isa weeks or months, nobody knows. But it is a very real possibility. With me is victoria moores, bureau chief and the european editor of air transport world. So we heard from ryanair there. The interesting thing is that they are managing to fill their planes. They have cut prices, but they are still filling the planes. Yeah. Ryanair has a strategy where they are load factor passive, passenger active. That means we want to fill up as much as the aircraft as we can by charging low efforts. That does not mean we are desperate to fill them and we must cut the fares, it is their actual strategy to fill the aircraft. Then load factor is 94 . That means 94 of the seats on the aircraft on average are full. In old terms, that would be called pile em high, sell them cheap. That makes them very attractive to the airports, because they can get into those airports right the way around the continent. You have to look at the continent. You have to look at the wider environment in aviation at the wider environment in aviation at the moment. The legacy carriers Like British Airways and lufthansa and air france are under a lot of pressure both from the short haul low Cost Airlines like ryanair, and on long haulfrom carriers like etihad and emirates. So here, you have ryanair coming etihad and emirates. So here, you have ryanaircoming in etihad and emirates. So here, you have ryanair coming in very aggressively. The legacy carriers are tending to cap back. Meanwhile, ryanair is growing, so it makes it very appealing to have ryanair aircraft coming into your airport. The things you are vulnerable to, whether you are a cheap upstart when legacy carrier, are things like brexit and Terror Attacks. We have seen brexit and Terror Attacks. We have seen all the airlines suffer as a result of the Terror Attacks in various parts of the world. Is there a way to mitigate against that . Ryanairs approach a way to mitigate against that . Rya nairs approach has a way to mitigate against that . Ryanairs approach has been typical of rya nair. If ryanairs approach has been typical of ryanair. If there is a Terror Attack or some kind of security threat, they drop their fares again. That is to stimulate the market. They can because they have the low cost base and at the moment, fuel is very favourable. So it means they can stimulate the market, but it is a very competitive market and ryanair has the cheap costs to support that. They say they want to become the amazon of travel. What do they mean by that . They mean that they mean by that . They mean that they want to really extend their business. They have had a huge push into digital focus is business. They have had a huge push into digitalfocus is part business. They have had a huge push into digital focus is part of their new being nice strategy. So they have improved their app. Ryanair did not have the best reputation for nice previously. They had a reputation for cheap, and now they Wa Nt To Reputation for cheap, and now they want to be cheap and nice, a bit more like easyjet. Historically, easyj et has more like easyjet. Historically, easyjet has been more appealing to the business traveller. Ryanair are going after that market share as well by going into the herbs. The hubs. Cheap and nice. Sounds like you, ben victoria, thank you. Not cheap, but nice. Lets take a look at some of the other stories making the news. British airways says it will operate a normal schedule today after this weekends severe disruptions. The airlines Chief Executive blamed a power surge for the Computer Failure that affected 75,000 people. Many passengers are still without their luggage. Some estimates say the problems could cost ba more than 150m. Retail sales injapan rose more than 3 in april compared to a year ago. Thats higher than economists had been expecting and comes just weeks after Government Data showed the economy grew faster than forecast in the first three months of the year. Thats its longest period of expansion in more than a decade. New analysis suggests chinese speaking criminals may have been behind the Wannacry Ransomware that affected thousands of organisations worldwide. Researchers say the language used in the Ransom Notice indicates the writer was native or at least fluent in chinese. Singapore has fined two banks over the 1mdb scandal following a two year review by financial regulators. Malaysias 1mdb fund is at the centre of Money Laundering investigations in at least six countries. Mariko oi is in singapore. We have talked about this a lot but this is just the latest episode, isnt it . Indeed, we have been talking about 1mdb for several years now. It is basically malaysias offer an world fund, set up in 2009 by the countrys Prime Minister. It was meant to turn the capital Kuala Lumpur Intoa was meant to turn the capital kuala lumpur into a financial hub, but instead it started to get negative attention when the Wall Street Journal reported four years ago that some 700 million were transferred from the 1mdb to the personal bank account of the Prime Minister. He denies any wrongdoing, but that triggered investigations in at least half a dozen countries including singapore. It has so far shutdown two swiss based private banks, imposed financial penalties over 20 million and this morning announced fines credit suisse. Thanks for that. Lets have a quick look at the markets. The ftse was closed yesterday because of the bank holiday here in the uk, but it has opened and is down two thirds, quite a sharp fall. We have had quite a sharp fall at the end of the long weekend. And Michelle Fleury has the details about whats ahead on wall street today. Economic data due out this week could support or undermine the case for Americas Central Bank to raise Interest Rates injune. Us markets were closed on monday for memorial day and the unofficial start to summer in america. But it is time for investors to put away the barbecue and get back to work, because there is plenty of Economic News due out this week. This tuesday, the Us Commerce Department is expected to report that Consumer Spending increased 0. 4 in april. Thats after being unchanged in march. The federal reserves favourite measure of inflation, the core pce price index, could well move the markets. Any pick up in inflation will raise the prospect of a faster rate hike schedule, something that wall street is keeping a close eye on. Economists are currently looking for a 1. 5 yearly increase in that index. That is still well below the feds 2 inflation target. Joining us is Justin Urquhart stewart, co founder and director of seven investment management. Lets start with the markets. Those boards tell you all you need to know. There is some unease about greece again and italy with a potential election there. Piling more uncertainty on. We have to put this into perspective. Last year, we had the oil price drop, feeding through into the global economy. Not just because of trump and things like that. We saw a lot of Companies Come through with big figures. That has also been reflected in europe, so we has also been reflected in europe, so we have had a good nine months. Then we had the trump effect. All his promises in terms of tax, which didnt happen, and in terms of infrastructure, which havent happened and all the other ideas which havent happened. So the trump pump has turned into the not so much a dump, but it has faded away. But you are talking about macro economics, the big picture. On a company basis, we are seeing good numbers coming through. That is what is astonishing. You get the Odd Basket Case like dish airways and plugging itself, but the rest have been showing good figures British Airways has been unplugging itself. It is not a bad situation. But i am worried because it has all been so good and we are now worrying about greece again. Are you just being contrary . No, here is an opportunity. When you start seeing numbers like this with a bit of volatility coming into the market, that is a time when a good investor can buy some assets quite cheaply. During the summer, there is often a period of volatility triggered by who knows what. Some build up some cash. So you are saying sell in may . No, iwant cash. So you are saying sell in may . No, i want to buy. If you have got some cash, by during the summer. word on politics. I normally dont like talking about politics, but last night in the uk we had interviews with theresa may, the Prime Minister and jeremy corbyn, leader of the opposition here. We didnt learn a whole lot. It wasnt particularly exciting. The markets looked at it and walked away. There was nothing on finance there. I would like to see some radical common sense about your areas of funding, how we get more investment coming in. The key thing with brexit is to make sure we firstly protect the crucible we have developed in the crucible we have developed in the past few years in starting new companies, which have we have been very effective at and secondly, radical changes with regards to taxation and fundraising and being able to have more investment funds. Not short term funds, but longer term ones. We have barely got one at the moment. We should go back to regional investment. The Northern Powerhouse should really have a Northern Investment mechanism to go with it. Let local people invest in local businesses. Justin, thank you. Still to come. Can a Computer Game persuade us to buy more at the supermarket . We meet the firm that says it can cut through the Advertising Clutter and its got big business on board. Youre with Business Live from bbc news. Could brexit affect the car market . On one hand you might think the two are unrelated, but a new report says consumers could put off making a big purchase, or buy a cheaper one, given the uncertainty. Chris bosworth is directory of strategy for Close Brothers motor finance, who produced the report. Explain a bit more about why this would happen. Why would people be put off by brexit . It is about certainty and uncertainty. That has been the theme of your programme this morning. When people feel less certain, there is Less Consumer confidence. It is quite a big investment, usually peoples second biggest capital asset, their car. And they spend less when they are not certain about the future of the economy. Brexit and the election on the mind that certainty. What does that mean for retailers . We have seen record car figures of late. What does it mean for those retailers themselves . It depends where you fit in the ecosystem. The kadeena can turn it into a positive. They can sell more used cars or different models to say to that new Consumer Appetite the car dealer can turn it into a positive. For the Car Manufacturer it is more difficult. At the moment, it is quite expensive for a customer who is not sure about the future. Are you just projecting this is what could happen . On the election it a bit too soon to tell but on brexit we saw Capital Investment into the Motor Industry Ball Last year to 1. 66, so already the manufacturers are investing 1. 66, so already the manufacturers a re investing less 1. 66, so already the manufacturers are investing less in uk manufacturing debility. That is pretty dramatic. Are people that worried, do you think it will get worse in terms of investment . worried, do you think it will get worse in terms of investment . I am not sure it can get much worse than the 2016 figure, i think that a shock to the system. I think we saw the nissan discussion with the government, other companies with big facilities in the uk as well. Thank you very much. Remember there is much more on that story and the latest on events at Heathrow Airport asa latest on events at Heathrow Airport as a result of the British Airways disturbances on the website. Youre watching Business Live. Our top story, the no Frills Airline ryanair has reported its latest set of financial results. Europes biggest carrier by Passenger Numbers announced a 6 jump in full year net profit to 1. 46 billion. Ryanairs performance is a sign that its cost cutting measures are helping the business compete as overcapacity continues to dog the industry. Full details of that on the website. Turning our attention elsewhere now. Computer games are on our phone, our laptops, and even finding their way onto movie screens. They seem to be almost everywhere. But one company is taking things even further by tempting customers to purchase goods by playing games right in the shop or supermarket. Ksubaka is a Singapore Based Tech Startup Which has established a network of Gaming Kiosks in Supermarket Aisles across china, singapore and australia. The aim is to tempt shoppers with games featuring Global Brands like coca cola, colgate and heineken which have are already signed up. The company says it now reaches more than 15 Million People per month. Joining us is giles corbett, co founder of ksuba ka. Good to see you, thank you for coming in. Pleasure. You are based in singapore but not from there. We are based in london and singapore, all of the Engineering Teams and the quys all of the Engineering Teams and the guys who build the software to enable guys who build the software to E Na Ble Less Guys who build the software to enable less are in london and the Business Development today is predominantly out of asia and singapore. We briefly ran through what it is, tell us how it works, its a kiosk which goes into a store and it is to try to tempt me to maybe buy another can of coca cola or tube of toothpaste by point ain . Or tube of toothpaste by point again . We are helping brands and retailers tell their stories to shoppers in a way which engages them. And by do so when literally a few feet away from the product, you are right, we do this on ourfleet of Interactive Advertising displays. We have some 8000 of them throughout china in over 150 chinese cities in a whole range of retailers. Shoppers walk up to a kiosk, the display is incredibly attractive, this is using the language of games to get people to go into it. As they touch the screen they engage with what ever story the brand is keen to tell. On average for over a minute time. You have brought one end so we can look at it but it strikes me the last thing i would want to do going into a supermarket is play a game, i want to be in there for the shortest possible time. This one looks attractive, interesting graphics, i would have a look but i would not start playing, i want to get in and get out. And so many of us are in that situation but while you want to go in and get out you are probably with a Family Member or friend who is not in the same frame of mind of getting the milk and leaving. They are looking for a distraction and those are the people who will engage with it. It works in asia, what makes you think it will work here, will it be culturally different . Of course, and the content is adapted to each market we are in. However the actual act of looking for a playful distraction is universal. We have piloted this in australia, we get better results on some metrics. Take the tube here in london and observe how many people are playing games on the phone, people play games on the phone, people play games the world over. Games on the phone, people play games the world overlj games on the phone, people play games the world over. I am looking at the consul now and its going to lots of different things, what there would me by, its one thing to pass time but how do you convert it into sales . Time but how do you convert it into sales . Most advertising is putting a message and a brand in the consumer s mind and we are using the Science Behind playful learning to facilitate and develop that. We are taking any brands story and decomposing it into one core message and we will turn that message into a game, maybe a toothpaste you have a special molecule which blocks micro cavities, we will turn that into a micro cavities, we will turn that intoa game, micro cavities, we will turn that into a game, you can block the cavities and you have understood this molecule will help. And does it work, does it make me buy more toothpaste . It does you have to say that this is what retailers tell us, this is all a big data plate and what we see through the analytics is two things, we see how consumers preferences change over time and how they change sustainably after using one of these experiences but we also see the uplift themselves. You are going to know too much about me. We are going to no amount the types of people in and an door. At times we dont need to know your name or personal identifiers we are going to know more about the type of people in a particular store. Thank you for coming in, in people in a particular store. Thank you ft, coming in, in people in a particular store. Thank you ft, the ing in, in people in a particular store. Thank you ft, the debti, in people in a particular store. Thank you ft, the debt pile up in the us the ft, the debt pile up in the us car market sparks sub prime of the year. It has been talked about being that, we associate it with housing loa ns that, we associate it with Housing Loans which caused the 2008 crash, the fear was that sub prime had spread to car loans. People who could not afford a car would take a cheap one. The big banks are pulling right back on the car market. Wells fargo said a third less auto loans in the past quarter. The signs are all beer that the market has reached the top, they have spotted it and are stopping but have they stopped soon are stopping but have they stopped soon enough is the question . The car industry will suffer, car sales in america are expected to slow down sharply because the lone figure is a leading indicator of sales. Do we have an idea of how big it is . Its a few trolley and rather than tens of trillions like the housing market. They are not worried about Consumer Credit and people not being able to afford loans it is because ka values are falling, when you re possess a ka values are falling, when you repossess a car they sell it. Up up until the last set of figures. Done by some kind of Consumer Finance product which is the auto loa ns we finance product which is the auto loans we are talking about. What is driving that, the consumer saying they need to update their card but cannot afford to take it on credit . Cheap finance, and it is also used cars, about 40 of used car sales done on finance. Interest rates, if they continue to go up, we think in they continue to go up, we think in the next couple of months in the United States . Certainly everyone thinks one is due. Another reason to steer clear of sub prime. Brief word on this story, check out free shopping, i like the idea of it but it sounds. We read about this quite often, people scanning things with their smartphones, anna zorn has just opened one with their smartphones, Anna Zorn Hasjust opened one amazon has opened one and its based on tracking your movement around the store, iam not tracking your movement around the store, i am not sure how to reconcile it. I could buy a whole lot of things i did not think i had. Or you could go into a normal shop and what about all the stuff you could go into normal shop and what out all the stuff without paying for it. Biggar thank i there will be more Business News throughout the day on the bbc live webpage and on World Business report. Well see you again tomorrow. Weve seen a rather cloudy start across weve seen a rather cloudy start a cross m ost weve seen a rather cloudy start across most parts of the uk, quite a mild start as well, temperatures well into double figures already. For today, quickly just well into double figures already. For today, quicklyjust need to, today, there we go, just go back. There we go, ok. Good morning, it was a rather mild start to the day, temperatures are widely in the mid teens but lots of cloud, misty and Market Conditions class most areas, a few showers as we go through today but for many of us it will turn a bit brighter later on, the brighter weather will come primarily across the north west, that will also introduce some fresher conditions but even further south and east the code breaking up nicely into the afternoon. Northern ireland will see the best of the sunshine, feeling fresher, less humidity, temperature is around 17 degrees, brighter towards Western Scotland but we still have rain towards the north and east. Some showers for northern parts of england, quite cloudy, even during the day at times youll see brighter skies and i think the cloud Breaking Up Skies and i think the cloud breaking up quite nicely. Good catch one or two showers but i think for most of us it will stay dry, temperatures getting up into the high teens, perhaps the low and 20s. Through this evening and tonight we will keep quite a bit of cloud across southern areas but further north with clear skies it will turn colder, temperatures getting down into a fairly low single figures, a touch of grass frost, the South Holding onto mild air. For wednesday, things quite settled, calmer conditions i think. Some cloud around, particularly towards southern and western parts but i think for most of us a much brighter and sunnier day across most areas. It will feel pleasant, temperatures up it will feel pleasant, temperatures up to 18, 201 it will feel pleasant, temperatures up to 18, 20 1 degrees, perhaps 2324 in up to 18, 20 1 degrees, perhaps 23 24 in the south east. Goodbye. Hello. Its tuesday, its 9 oclock. Im victoria derbyshire, welcome to the programme. A zookeeper killed by a tiger in cambridgeshire has been described as the shining light of the park. Rosa king s attack at hamerton zoo yesterday. This was her speaking a year ago. We do a lot of work for conservation, a lot of breeding to try and save the species, just like the Malayan Tiger here theres only about 300 left in the wild and theyre being poached. At least theyre safe here. Before 10, well speak to an eyewitness who was there with his family when it happened. Plus well talk to a surgeon who treated dozens of seriously wounded patients after the manchester Terror Attacks which killed 22 people. Well, are you single, nigel . Thats a very good question a lot of people are asking that question
comparemela.com © 2020. All Rights Reserved.