15/02/2016 BBC Business Live

We will be taking a look at that. You know how to get in touch with

us. Get involved in the conversation on Business Live using the hashtag

you can see behind me. Steel is back on the agenda today

in a big way as bosses of some of Europe's biggest steel-makers

are in Brussels demanding urgent action to support

Europe's steel industry. They are going to march

to the European Commission buildings where industry chiefs and unions

will meet with senior commissioners including the European Vice

President who is responsible The EU is the second largest

producer of steel in the world after China, which has been accused

of flooding the European market Last Friday the European Commission

opened anti-dumping investigations Tanya Beckett explains

what all the fuss is about. The price of steel has fallen

dramatically in the past five years. The steel industry is dominated by

China, accounting for almost half of global production. It produced

nearly 900 million metric tonnes last year. But as growth in China's

economies slows, it has been sending more steel abroad. Its exports have

surged 51% whereas Japan and the EU have seen marginal changes. The

European Steel Association says 5000 jobs have been lost across Europe in

recent months with the UK particularly affected. Companies

like Tata Steel and Redcar blamed prices as cheap Chinese steel. With

more jobs on the line, the EU took action in January and set

provisional duties on Chinese imports of between 9.2% and 13%. But

many say these measures do not go far enough. The steel industry

employs 328,000 people in Europe and thousands of these jobs are at risk

from cheap Chinese imports. That was Tanya Beckett outlining some of the

detail for us. US Steel Kosice is the largest

integrated steel producer in central The company's President,

Scott Buckiso, joins Thank you for being on the

programme. Clearly the big European players in the steel industry feel

they have a strong argument for more action from the European Commission.

What do you want from them in terms of further action? Well, thank you

for having me. We are here for two reasons. First of all, not only are

the heads of the steel companies here but thousands of our colleagues

and co-workers, I know I have had many of my colleagues from US Steel

Kosice travel for two days to be here, that is how important it is to

us. We have been aggressively participating in all of these trade

cases. If you look at the piece just given, those percentages, the

We are here to make sure that the We are here to make sure that the

European Commission uses all of its tools and all of its laws to enforce

fair trade. Right now, with the glut of steel coming in from China and

Russia and others, it is not a level playing field. The European market

is one of the most open markets in the world as China and others are

using that to dump their overcapacity of steel that they have

in their countries for economic purposes and allowing them to

subsidise the steel market in their country and it is hurting the

European industry. On that issue of cheaper Chinese steel

on the market, as you say, that is an issue that those in your industry

have been talking about for a long time. Do you think that Brussels has

been slow to show leadership on this issue? We have not seen a

pan-European directive to restrict imports or impose higher tariffs

until now, until you are literally marching on Brussels? Absolutely.

That is why we are here. That is why literally thousands of people are

here today. It is going to be catastrophic to the European economy

and it will have social and economic effects throughout the entire

European Union if the European Commission does not act and impose

higher duties and stop the glut of steel coming onto the shores of

Europe. They have not acted and they have not set proper duties on those

steel imports. The second problem that we have at the second reason

that we are here is that we feel that the European Commission cannot

allow China to become a market economy or have market economy

status. They do not meet the criteria. If they ground market

economy status to China, it will be an open book for them to continue to

dump unfairly traded steel into the dump unfairly traded steel into the

European market, while subsidising their state-owned companies back in

China. Very briefly, do you also admit that the steel industry

generally speaking across Europe has got to see through some very

difficult change? And that does mean job losses, regardless of China's

dumping of steel in Europe, just because global demand has fallen and

prices have fallen, so therefore the industry has got to change anyway.

Yes. The industry has been changing. Since 2008, both in Europe and in

the US, they have reduced their costs of doing business. However,

with unfairly traded material continuing to be dumped excessively

into the European market, we cannot cut costs fast enough. It should not

take the company to be bankrupt or to lay off thousands of workers to

prove injury and that is what is happening in the European Commission

needs to act faster. We appreciate your time. The President of US Steel

Kosice, thank you for your time. Just to say, we will keep you across

this. Thank you for having me. A pleasure. We will keep you across

everything going on in Brussels with that March. Some other news this

hour. UK banking giant HSBC has

announced it is to keep Concerns about stricter UK

regulations led Europe's biggest bank to launch a review

into whether to move elsewhere, with Hong Kong seen as the most

likely alternative. But the bank said it had decided

unanimously against the move and that London offered

the best outcome for our Toyota says it has resumed

operations at all vehicle assembly and parts plants in Japan

after its longest domestic production suspension

since the March 2011 The world's top automaker said

earlier this month that it would temporarily stop all domestic

vehicle production from 8th February to 13th February due

to a components shortage following an explosion at supplier

and affiliate Aichi Steel. Just looking at the Business Live

page online, and just one story, coverage of HSBC and the twists and

turns. This one made us chuckle because this debate is in no way

new. This discussion about whether HSBC would move away from London,

most likely to Hong Kong. There is an article here dated the 3rd of

September, 2010. So this has been rumbling on for quite a long time.

That is the UK Business Live page. If you want to know more about that,

get stuck in. We can move to Japan now.

The economy contracted in the final three months

of 2015, adding to a string of setbacks for the government's

Between October and December, official figures show the economy

shrank by an annualised 1.4% percent.

This is worse than expected - most predicted the economy

Weaker domestic consumption was the biggest

factor pulling down the economy, but slumping exports due

to a stronger Japanese yen didn't help either.

The news highlights the challenges facing Prime Minister Shinzo Abe

in attempting to drag the world's third-biggest economy

Many are now saying three years of so-called Abenomics

Rupert Wingfield-Hayes joins us from Tokyo.

Nice to see you. Give us your take on this story because the Japanese

economy does not seem to be improving and if anything is going

in the other direction. Yes, definitely bad news. Three years

into the so-called Abenomics and we are back where we started with the

Japanese economy shrinking and the stock market falling in the last

week. What were the last three years for and what has gone wrong? There

are two components to this, the domestic component, what is going on

with the domestic economy, massive amounts of quantitative easing over

three years have pushed up the stock market and helped banks restore

their balance sheet that this has not fed through to Japanese

consumers and consumer demand has remained flat. That is why we are

seeing these GDP figures. The other issue with experts. The value of the

Japanese yen was pushed down over the last three years which has

helped exporters a lot on exports were booming. Companies like Toyota

were making record profits but in the last six months that has dropped

off dramatically, a large part because of what is going on in

China, the world economy slowing down, and in the last month the

dramatic strengthening of the Japanese yen, not because of

anything going on in Tokyo but because of a lack of confidence

around the world. When that happens, investors rush to what they call

save havens and the Japanese yen is considered a safe haven and because

of it that has meant it has gone up in value and then the Japanese

products cost more money. Thank you. A quick look at markets

and in Japan, despite the dismal data that showed the economy

contracted more than expected the Nikkei stocks rocketed

on Monday, leading most Asian markets higher and in so doing

snapping a five-day losing streak. That data raised hopes for more

stimulus for Asia's second biggest And in China, Chinese shares dropped

on their first day of trading after the week-long Lunar New Year

holidays that coincided with a sharp European shares have

opened sharply higher, following gains in Asia

where a firmer Chinese currency And in Paris and Spain, all the

markets are up 2% well. is Richard Jeffrey,

Chief Investment Officer Happy new week. I feel like every

Monday I have a conversation about how the week has begun. Since the

start of 2016I am not sure about where we are going next. There has

been a lot of turbulence and sentiment is understandably fragile.

We need to get a grip on what is going on behind this and why

sentiment is so fragile. I think it is part of this adjustment process

for investors and other people taking economic and policy

decisions. The adjustment process for those people to what is a new

economic order. It is certainly a new economic order compared to what

we got used to before the recession. Before the recession, we were seeing

the West driving global demand and grows, and excess demand in the

West. People in developing economies were feeding that through

manufacturing activity and it was a period of strong global growth. That

is slowing down and the West is not growing as quickly and people

feeding the growth in the West are finding life much tougher. There

were nervous given that China was opening for the first time in a week

and last week was really turbulence in Japan and elsewhere. But actually

we have not had any falling off a cliff moments today or any highly

volatile sessions yet. I know it is early days, 45 minutes into the

European date! 45 minutes and the FTSE 100 is up.

The authorities were saying that they have no policy of devaluing it.

They are going to keep it stable. They don't see the economy is headed

for a hard landing and it is growing at a respectable rate. Whether they

can fulfil both those two things remains to be seen, but the

statements in themselves were reassuring.

Thank you, Richard. He will be back in myself more minutes. More work to

do for Richard! We'll to hear

from a firm that calls itself the Silicon Valley of shipping

and a plan to build greener, wind powered cargo ships that

reduces fuel consumption You're with Business

Live from BBC News. As we mentioned earlier,

Europe's largest bank HSBC has decided to keep its headquarters

in the UK despite concerns about increased regulation

and the risk of a Brexit. Tanya Beckett is back

with us and joins us Nice to see you, Tanya. It was no

big surprise, was it, really? Yes. HSBC has been deliberating this move

for really sometime and some ten months and the feeling was that UK

was held to ransom because it was a big impact on the UK. It provides up

to about ?1 billion of revenues every year in just terms of the levy

it pays because it has an enormous balance sheet. It is Europe's

largest bank after all. But this was a bank that has its roots in the Far

East, in Asia, in 1865 it was set-up. So relatively short time in

the context of its history, but it hires a lot of people. 26,000 to be

precise and in the UK, there are 48,000 of those people, so although

it would have been costly for the bank to move, it would have been a

huge decision, it would have cost ?1.5 billion to do it. The feeling

is a little bit that it was very keen to lean on the Treasury here in

the UK, and try to get some concessions and where it has been

successful is certainly reducing the bank levy. It lobbied very, very

hard there. Also, of course, it is concern about the possibility of the

UK exiting the EU, but it says that it has large operations in France

and can fall back on those, but unquestionably what we have seen in

terms of the turmoil in China and of course, Japan, perhaps raises

questions about how stable the growth is that we have seen in the

Far East and therefore, perhaps, makes it less attractive, although

one would imagine that the short-term fluctuations wouldn't

really play into a long-term des, certainly they must colour the

picture. -- decision, but certainly, they

must colour the picture. A story that grabbed Alice's

attention because she was having an opposite story last week about

rents. Apparently, it slowed in the previous quarter, but that

north-south divide is still very much an issue.

Protests over the state of Europe's steel industry,

battered by a perfect storm of cheap Chinese imports,

Bosses of steel companies are marching on the European

Commission's head quarters for action.

Shipping is the life blood of the global economy.

Without the raw materials, food and manufactured goods

transported by sea, economies would grind to a halt.

Clearly, there's no doubt that the industry is a polluter,

but aircraft and lorries are far bigger emitters of CO2.

The sheer volume of sea cargo means there's a need

The Smart Green Shipping Alliance, the SGSA, calls itself

It's a pan-industry initiative to develop commercially

viable, environmentally-friendly vessels.

The Alliance is using technology, initially developed for high

performance yachts, to design a hybrid cargo ship

The high-tech design reduces fuel use by 50%.

This is important as the global shipping industry carries around 90%

Diane Gilpin is the Founder and Chief Executive

of the Smart Green Shipping Alliance.

Welcome to Business Live. Thank you very much. It sounds like a tall

order really to make this happen. Where did the idea first come into

being? I think, it is a tall order. We work clabtively and I think the

idea of wind at sea isn't exactly new. We have had thousands of years

of experience of propelling ships through the water using renewable

energy. In fact our world has been built on wind. My personal

experience comes from driving start up innovations. I worked for

Secretnet and I went to work in Formula One and what was really

interesting about that was the -- Cellnet. I move from Formula One

into yacht racing and there was no con daout for the experience,

expertise, technology that was being developed in yacht racing to go into

commercial shipping in the same way as it did from Formula One to

automotive. So, working also in renewable energy you start to think,

you know what, there is a lot of knowledge there. We can start to

transfer that technology. So that coupled with the very urgent need to

start looking at how we can reduce cost, reduce vulnerability, and

exposure to volatile fuel prices going into the future. A ship built

today, will last for 30 years. So, you know, the outcome that we expect

in Paris would mean that that ship would have to be net zero emissions.

Diane you have designed this hybrid cargo ship using technology that was

used for high performance yacht racing, but it is a tall order you

face as Sally was ind mating. At a time when we have a glut of ships in

the world compared to the amount of goods we need to ship and also at a

time of historically low oil prices, how receptive do you think the

industry will be to taking on more cost to building these new highly

developed ships in your blog from the Paris Climate talks, you talk

about selective deafness? It wasn't me that designed the ships. It was

one of the leading yacht designers. We work with Lloyds Register to

combine commercial shipping with the industrialised version of yacht

racing. But it is difficult and there are decenting voices. Change

is a difficult thing for a human being in any shape or form and I

think the shipping industry is no different to that, but having said

that, we work clabtively and we have got fantastic members of our

alliance who are working across the shipping structure. So we're working

on three separate, but interconnected work streams, we are

doflgt fast rig which is the technology to harness the power of

the wind. We're developing a big data analysis tool called Trade Wind

where we're working with the Met Office where we have 20, 30 years of

weather data. So we can predict how much free fuel we can harness. And

we're working with the finance commercial sector law. How we

reengineer the finance arrangements. So you have some extra, as you say,

Alice, extra upfront capital cost, and that's over a 30 year period.

You can start to put resilience and certainty back into the system and

it badly needs it. We appreciate your time. Thank you

for coming in from Smart Green Shipping Alliance.

We have to move on. The time is getting the better of us today.

Imagine clothing that improves your performance

We'll hear from the boss of high tech sportswear firm,

In a moment we'll take a look through the Business Pages but first

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whenever you need to know. Richard is back. This story caught

our attention. City's top bankers could avoid UK rules. What's that

about? It is an interesting story. It has an echo of stories we were

talking about before a couple of weeks ago, how do you tax companies

which have operations across international borders. How do you

regulate companies? In particular for this one, should people who run

overseas operations of a bank, who are based in London, be subject to

the London regulatory rules or should they be regulated elsewhere?

What City is arguing they should be relegated elsewhere and not subject

to a new regime that's being introduced over the next month or

so. None of the other major banks are following suit, are they? No,

but they will be watching closely.