04/01/2017 World Business Report

Also in the programme embattled air-bags maker -

Takata is seeing its shares soar in Tokyo.

On the Presidential campaign trail Donald Trump made it clear

he was going to get tough on US car makers who out-sourced production,

claiming it's already led to millions of job losses.

Well he's not yet in office but already the automobile industry

US car giant Ford has announced it will extend operations in Michigan,

as you can see behind me, and cancel plans for a $1.6 billion

Earlier, in this tweet, President-elect Donald Trump

criticised Ford's rival General Motors for making cars

in Mexico available tax-free in the United States.

Michelle Fleury has more from New York.

Donald Trump has launched a series of attacks by Twitter, the rating

bigger US multinationals who import goods from abroad and seldom in

America. The rating. He has spoken out against auto industry

manufacturing cars across the border. NAFTA allows vehicles to be

sold duty-free within the US and Canada and Mexico. If they are at

least 65% made in the block but Trump wants to rip up the agreement

and in prose and 35% border tax. On Tuesday, Ford said it is scrapping

plans for a base in Mexico and expanding in Michigan instead.

Speaking to BBC World business news the boss of Ford,

Mark Fields, told us what prompted the decision to cancel the planned

Overall, the reason we made this decision is it the right thing to

our business. As you can imagine, we look at different factors when we

look at decisions. The announcements we are making the day of $700

million investment here in our fight rock Michigan plant and adding 700

jobs, one of the factors we put into that is the more favourable US

business environment that we see under President-elect Trump and to

some of the pro- growth policies and reforms whether it is tax or

revelatory but he's been talking about so that did play positively in

this and it's a vote of confidence that he can deliver on those things.

In a few hours time we'll receive the latest inflation figures

The block managed growth of 0.3% in the third quarter of last year

and a sustained rise in prices could lead to the scaling back

of the European Central Banks de facto money-printing program.

As you can see here - there has been a marked improvement

in the rate of inflation for the block and in yellow you can

see the 1% rate of inflation that Economists are predicting

With me to discuss this is Jeremy Cook, Chief Economist,

What are you expecting? 1% seems to be the consensus view. We had a big

surprise out of Germany yesterday, two year high out of their prices,

up to 1.7%. It could even be higher than 1% and that's a big step change

from the month previous. A lot of this rise is as a result of oil

pressures, the base Fx of the big fall in 2015, a slight pickup in

2016. -- affects. What will the US central bank do in response? There

are two types of inflation. Headline inflation and core inflation. This

is focused on core inflation which takes out volatile food and oil

measures and that will stay at around 1.8% --0 .8%. Core inflation,

the stuff that really matters in the economy and the stuff we can in --

control, is still much below target and they will keep that on the

accelerator. The eurozone has really been struggling when it comes to

delivering growth, unlike other economies around the world. What is

this year going to be like in the terms of economic performance by the

eurozone, given that there are two big members, France and Germany,

with elections? It will be a fairly tough year for the continent as a

whole. Everybody is spoken on politics but businesses who trade

have two deal with volatility in currency markets -- focused on

politics. They are at record lows against the US dollar. We need to

seek growth at a rate that can start to lower the unemployment rate in

the eurozone as a whole which is still almost double of what we see

in the US and the UK. There is a lot of room for improvement in the

eurozone. Given the situation, certainly the case in France with

unemployment stubbornly high which is why France was a blonde is not

going to try to get the job again -- Francoise Holland. A lot of it is

due to the economy, isn't it? Jono yes and also change. -- yes, and

also change. If we start to see in the run higher and start to see

prices without wage increases seen each we are not likely to see in

Germany or France or benevolence or Italy or Spain, and people will sit

there saying, my life is more expensive, how can I change this?

That feeds into the votes. -- or the Netherlands. No doubt we will speak

again. Troubled car parts maker Takata

saw its shares jump by more than 17% today in Tokyo - this on reports

the Japanese firm is close to settling a US criminal probe

into faulty airbags that have been linked to 11 deaths

and more than 100 injuries. Sharanjit Leyl joins me now

from our Asia business hub Normally we are talking about Takata

shares sinking and today we see the opposite. Indeed. The reason why it

is today is it's really the first chance that many investors have two

really react to the reports you mentioned last week. It's the first

day of trade in Japan for 2017 so the shares are at the moment at

17.5%. You mentioned the reports from last week essentially saying

the troubled Japanese auto-parts maker was fairly close to settling a

US criminal probe into the exploding airbag scandal. We know that Takata

is the maker of the defective airbag is have been linked to at least 16

deaths worldwide, 11 in the US, and they can apparently exploit with

excessive force and send metal shrapnel inside cars and trucks.

These reports citing sources say that the criminal charges could be

settled before Obama administration leaves office next month. Part of

the settlement will include Takata pleading guilty to criminal

misconduct, according to the reports. The Justice Department have

been investigating whether the firm had hidden information from safely

great -- safety regulators and sources say a deal will likely

include a monitor to ensure Takata's compliance with the agreement. One

of the sources was the Wall Street Journal which reported a settlement

could require Takata to pay as much as $1 billion and be reached as

early as January. Both Takata and the Department of Justice have

declined to comment but nonetheless, investors seem to like the news and

they are buying up the shares. Thank you, Sharanjit Leyl, good to see

you. Some British Airways cabin crew

are to stage a 48 hour strike Members of the UK's Unite union have

rejected a new offer aimed A previous walkout planned

for Christmas Day and Boxing Day BA says it plans to ensure that

all their customers can travel Kaesler, one of the world's biggest

car makers of electronic cars increased profits. They made almost

83,000 cars in 2016 -- Tesla. They missed the delivery target of the

last three met -- last three months of it. Elon musk said Robinson with

the hardware led to the company producing fewer vehicles than

previously forecast. While Tesla may be producing more cars, it is also

getting more competition. There are more tech start-ups unveiling the

words fastest self driving electric car that can accelerate from 0- 60

in 2.39 seconds. That is quite fast. I will see you soon.