06/01/2014 World Business Report

Those are the latest headlines from BBC World News. Now for the latest

financial news with Sally Bundock and World Business Report.

Three months after her nomination by the White House, the Senate votes on

Janet Yellen's appointment as chair of the most powerful Central Bank in

the world. Riding the wave higher - as stocks

markets in Asia start the new year, we take a look at whether the record

gains of 2013 will continue. Welcome to World Business Report.

I'm Sally Bundock. Also in the programme: The professions that are

disappearing from our cities. Today, we head to Seville in Spain.

Ben Bernanke's decisions have affected the global economy for

years. At the end of the month, he will hand over the reins of power.

Today, the US Senate is expected to vote and confirm that Janet Yellen

will be the next chairperson of the most powerful Central Bank in the

world, replacing Bernanke on the 1st of February. A change in leadership

is relatively rare. The 67-year-old will become the fourth person to

lead the Federal Reserve in the last 35 years, and be the first woman to

do so. The changeover comes at a tricky time. Michelle Fleury reports

from New York. Inside the boardroom of an important

Central Bank. The decision was taken to buy up lots of bonds to revive

the US economy and reduce unemployment. Led by Ben Bernanke,

the Fed announced it was ready to start withdrawing support. Janet

Yellen will have to finish the job. At a recent confirmation hearing,

she said the bond purchases helped America's recovery. These purchases

made a meaningful contribution to economic growth and recruiting --

improving their outlook. She is tough. Obama's decision to nominate

accomplished economic academic is an endorsement of that idea. She wants

to stimulate the economy. She is concerned about the labour market,

people with long-term unemployment, the shrinking labour participation

rate, . Opponents have likened the Fed's massive money creation to an

addiction that is hard to break. Some people to like the policies if

it has pursued. They think the Fed has printed to much money and made

it the easy for the President and Congress away without giving the

deficit. Some think she is too liberal for the job. The interest

rates have helped here. Stock markets have benefited from the year

of cheap money. If confirmed, Janet Yellen's Central Bank will have

different. Asia and beyond will take close attention as she returns

policies to normal levels. The markets will be firmly focused

on that date. As Michelle Fleury was just saying, stocks around the

continent in particular have benefited massively from the money

the US Central Bank has pumped into the global economy in recent years.

Let us look at the performance in Asia in 2013. In 2013, Australia's

ASX 200 rose 13%. In China, the Shenzhen Composite was up 21%. But

the outright winner in the region? Well, that was Japan. Its stock

market, the Nikkei, climbed a massive 57% in 2013. That is its

biggest annual rise in more than 40 years. The moves were also driven by

the government initiatives to boost the nation's economy, encourage

economic expansion and weaken the yen. But can the confidence in Japan

outstrip other markets in Asia this year? Today, the Nikkei opens for

the first time in 2014. Let's get a gauge on how the

Japanese market is doing today. Rico Hizon is in our Asia bureau for us

now. Happy New Year. How is it going in Japan? That is a lot of tension

in the Japanese market and attention on Shinzo Abe. People are seeing

higher Shinzo Abe meant the reforms. So far, a disappointing

start. The Nick Cave tumbled more than 2%. -- Nikkei. Investors were

bullish in the past year after Shinzo Abe implemented eating and

fiscal stimulus to jump the weak economy. The third point has to be

fired. Structural reform for Abenomics to be successful and for

the market gains to be sustained in the 2014. This is a particular year

for reforms to be put in place. In April, Japan will raise its

consumption tax from 5% to 8%. Nobody knows the impact of that. The

increase can stifle growth, anger consumers and derail popular support

for Abenomics and Shinzo Abe. We have to wait and see if reforms will

be put in place and the impact of the economy and markets. We have

weak economic news out of China. We have weaker than expected purchasing

manager's index. It is a catalyst for the decline in Asian markets.

Singapore, Thailand and Malaysia are in negative territory. Growth

declined sharply. This is raising concern about the pace of recovery

in the mainland. Traders say the focal point for Asian investors is

on Chinese growth and the political situation and how it will pan out

this year, rather than worrying about the tapering off of the US

bond-buying programme. We often take a look at new

developments, new trends and the very latest technologies. But what

about the things that are being lost? Well, over the coming week,

we'll be looking at some of the professions that are vanishing

around the world. Our first stop on the journey is Spain, where the

traditional way of sharpening knives is under threat of extinction. The

service arrives via motorbike on your doorstep. Sadly, the tuneful

whistle of Spain's knife-sharpeners is an increasingly rare sound on

Spain's streets. Tom Burridge reports from Andalucian capital of

Seville. It is a sound that everyone here

knows. And melody that people grew up with in Spain. It means shopping

time. Rafael has been sharpening knives in the city of Seville since

he was 13. TRANSLATION: He travels around Seville, warning

potential customers that he is nearby.

Then he sets up. His engine spins a steering wheel. The sharpening

starts. Regular customers taking 3 euros per night. The perfect

service. -- per knife. Raphael lives in a pot of Seville

that tourists do not see. Poverty is right here. Unemployment is high.

His wife and son are both out of work.

Despite the meagre money he makes, roughly all keeps on working. He

says he will keep sharpening knives until he dies.

That is it for World Business Report. See you soon.

More coastal flooding is expected this morning as strong winds

continue to batter the west coast of England and Wales, south-west

Scotland and the eastern coast of Northern Ireland. Dozens of flood

warnings are in place. The Environment Agency says many areas

will remain at