15/03/2017 World Business Report


Download Subtitles

SRT

ASS


15/03/2017

The latest business news with informed analysis from the world's financial centres.


Similar Content

Browse content similar to 15/03/2017. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

Now for the latest financial news with Sally Bundock

:00:00.:00:00.

Federal Reserve Chief Janet Yellen is expected to announce another rise

:00:00.:00:22.

Watching the black stuff - oil prices are back in focus

:00:23.:00:34.

with the price falling despite the efforts of OPEC.

:00:35.:00:39.

Also in the programme, we have the latest numbers from Cathay Pacific.

:00:40.:00:51.

They are back in the red. We will explain the details in a moment.

:00:52.:00:53.

It's the day global markets have been waiting for -

:00:54.:00:56.

on Tuesday, the US Federal Reserve started its two-day meeting

:00:57.:00:59.

and is widely expected to raise interest rates when the meeting

:01:00.:01:08.

Fed policymakers are tipped to raise interest rates by a quarter point,

:01:09.:01:14.

and it won't surprise markets, they've already priced this in.

:01:15.:01:17.

It's what Janet Yellen says after the meeting analysts

:01:18.:01:22.

will scrutinise for clues about how fast rate rises

:01:23.:01:25.

And the Fed may talk about reversing a key part of its financial crisis

:01:26.:01:34.

recovery plan, to reduce its $1.76 trillion holding of mortgage-backed

:01:35.:01:37.

securities - these assets were bought at the height

:01:38.:01:42.

an improving US economy and the Trump Administration's

:01:43.:01:57.

policy agenda of infrastructure spending and tax cuts,

:01:58.:02:01.

We'll start our reports on a factory floor in New York

:02:02.:02:08.

from where Michelle Fleury sent this report.

:02:09.:02:20.

An increasingly common sight in America today. Machines making

:02:21.:02:26.

everything from factory robots to aircraft landing gear. After a

:02:27.:02:32.

painfully slow recovery, the sights and sounds of economic activity.

:02:33.:02:37.

Nearly everyone who wants a job in the US has one. It has been getting

:02:38.:02:43.

better for us since 2008 and 2009. It is the worst I have seen in my

:02:44.:02:47.

working life. I am seeing more jobs coming back to the US. At this

:02:48.:02:52.

factory in Brooklyn they make metal parts, mainly for the aviation

:02:53.:02:56.

industry. Like many factories across the United States, there is lots

:02:57.:03:00.

going on, and room to grow. We are fortunate we have a steady flow of

:03:01.:03:06.

business now, and for the foreseeable future, we will have a

:03:07.:03:10.

steady flow of business. Activity that has not gone unnoticed by this

:03:11.:03:14.

woman. Federal Reserve chair Janet Yellen is among those making the

:03:15.:03:18.

case that the world's largest economy is strong enough to

:03:19.:03:21.

withstand higher interest rates, making the prospect of a rate hike

:03:22.:03:26.

in March a near certainty. The economy is clearly ready for another

:03:27.:03:30.

rate hike. Inflation is moving towards the Federal Reserve's target

:03:31.:03:35.

of 2%, the job market is in very good shape, and financial market

:03:36.:03:38.

conditions have eased. Back in Brooklyn, Mike D Marino sees the

:03:39.:03:43.

prospects of higher rates as a vote of confidence in the economy. --

:03:44.:03:50.

DiMarino. It is probably a good time to raise interest rates, although I

:03:51.:03:55.

do not want to pay more interest. On Wall Street, investors are prepared,

:03:56.:03:58.

even looking ahead and wondering about the pace of future hikes. If

:03:59.:04:02.

the Federal Reserve does raise interest rates, this will be only

:04:03.:04:06.

the third time it has done so since the global financial crisis. Almost

:04:07.:04:12.

a decade later, it would send a signal that the US economy is

:04:13.:04:14.

returning to some kind of normality. With me is Stephanie Hare,

:04:15.:04:19.

independent political risk analyst. So, hearing from Michelle, gauging

:04:20.:04:31.

how the economy is doing, those who are seeing it churn on the factory

:04:32.:04:35.

floor, as it were, but today the rate rises seen as a given and so

:04:36.:04:39.

the question is what is going to happen next? As you said, it is an

:04:40.:04:43.

expected rate rise. We think there will be several more this year. And

:04:44.:04:46.

there was one in December. It is important to take a longer view on

:04:47.:04:50.

this. These rises are the result of the fact that we have not had many

:04:51.:04:54.

rate rises since the financial crisis of 2008. So in one sense it

:04:55.:04:58.

is a sign and a confirmation of the growth of the US economy, and if we

:04:59.:05:02.

raise interest rates, it is because we are worried about things like

:05:03.:05:05.

inflation, for instance. But there are all sorts of other problems

:05:06.:05:09.

here, many things that can go in the mix. We are looking at how expensive

:05:10.:05:13.

the US dollar is, how that is going to affect US exports. What will this

:05:14.:05:16.

do for things like employment, productivity? And of course there is

:05:17.:05:20.

a very big question about the independence of the Federal Reserve,

:05:21.:05:23.

which President Trump has really question. The Federal Reserve chair,

:05:24.:05:27.

Janet Yellen, will be under a lot of the sheer to decide her pace, what

:05:28.:05:32.

she wants to do in trying to control this rate rise cadences. So she has

:05:33.:05:37.

all but to consider, but also, her and her team at the Federal Reserve

:05:38.:05:42.

have to figure out the impact of Trump's plans, infrastructure

:05:43.:05:45.

spending and tax cuts, of which we still know very little about, so it

:05:46.:05:50.

is hard to gauge? Exactly. We do not have the details you to understand

:05:51.:05:53.

how to square that circle, and say that we are going to cut taxes and

:05:54.:05:57.

have deregulation but we're not going to a rise in inflation. We are

:05:58.:06:01.

also looking to see how that will trickle through India job market.

:06:02.:06:04.

Who will benefit from this rate rise? Will it be banks, or workers?

:06:05.:06:08.

Stephanie, thank you very much indeed. We will speak to her again

:06:09.:06:13.

later on, but for now we are going to interrupt the business agenda. We

:06:14.:06:17.

can take you live to South Korea, Busan. I am sure you recognise

:06:18.:06:22.

Professor Robert Kelly with his beautiful wife and two children.

:06:23.:06:28.

Let's listen in. ... She is frantically trying to salvage the

:06:29.:06:40.

professionalism of the interview. Our children were not hurt.

:06:41.:06:47.

TRANSLATOR TRANSLATES INTO KOREAN. When Maryanne speaks in the clip,

:06:48.:06:53.

she says in Korean, "Why, ma'am?" Because she is responding in

:06:54.:06:57.

surprise, because we normally do not treat our children the way that you

:06:58.:07:00.

see in the clip. TRANSLATOR TRANSLATES INTO KOREAN. In the same

:07:01.:07:18.

vein, no, I was not shoving Maryanne out of the way when I tried to move

:07:19.:07:21.

her behind the chair. TRANSLATOR TRANSLATES INTO KOREAN. I was trying

:07:22.:07:31.

to slide Maryanne behind the chair, because we have toys and looks in

:07:32.:07:41.

the room. -- books. TRANSLATOR TRANSLATES INTO KOREAN. My hope was

:07:42.:07:49.

that she would play with the looks for a few moments until the

:07:50.:07:51.

interview ended. Books. TRANSLATOR TRANSLATES INTO

:07:52.:08:09.

KOREAN. Yes, I was wearing pants. Somebody asked me today at lunch if

:08:10.:08:13.

I was wearing pants. Strangers have asked me if I was wearing pants.

:08:14.:08:25.

TRANSLATOR TRANSLATES INTO KOREAN. I chose not to stand. This is why

:08:26.:08:29.

people think I was not wearing pants, because I chose not to stand.

:08:30.:08:35.

I chose not to stand because I was trying to save the interview.

:08:36.:08:42.

TRANSLATOR TRANSLATES INTO KOREAN. No, this was not staged. Any people

:08:43.:08:47.

have asked me if we organised this, if we faked this. -- many people.

:08:48.:08:52.

No, it was authentic. TRANSLATOR TRANSLATES INTO KOREAN. No, my wife

:08:53.:09:03.

and I did not fight, we did not fight after the blooper. We did not

:09:04.:09:12.

punish our children. In fact, actually, we thought that no

:09:13.:09:15.

television network would ever call us again. TRANSLATOR TRANSLATES INTO

:09:16.:09:25.

KOREAN. Finally, we have no serious comment about the many social

:09:26.:09:31.

analyses about the video. TRANSLATOR TRANSLATES INTO KOREAN. We see this

:09:32.:09:39.

simply is a very public family blooper. We do not see this in some

:09:40.:09:43.

political or social way, or as a metaphor for anything. We have no

:09:44.:09:47.

comment on that sort of stuff. Thank you. TRANSLATOR TRANSLATES INTO

:09:48.:10:03.

KOREAN. OK. How should we do this? That is a press conference coming

:10:04.:10:09.

live from Busan in South Korea. That was Professor Robert Kelly,

:10:10.:10:12.

answering questions from the media about his interview, which I am sure

:10:13.:10:16.

you have seen. If you have not seen it here on BBC World News you will

:10:17.:10:20.

have seen it on social media, and he was being interviewed by my

:10:21.:10:23.

colleague James Menendez about the impeachment of President Park in

:10:24.:10:27.

South Korea last week. And of course his children, who you can see there,

:10:28.:10:31.

his two children barged in on the interview and it went viral because

:10:32.:10:36.

it was quite an unusual scenario. That is his lovely wife. They have

:10:37.:10:42.

all spoken exclusively to our sins, here at the BBC, to tell us about

:10:43.:10:49.

the experience. -- to us since. There was lots of comment and

:10:50.:10:52.

discussion on social media about the children and their welfare and what

:10:53.:10:56.

happened. As you can see, with the questions he is receiving now at the

:10:57.:10:59.

press conference, there are questions about how it was staged or

:11:00.:11:03.

so on. Let's listen in some more. I am not sure if we were actually say

:11:04.:11:09.

much. Our thoughts are fairly prosaic, I guess. You have to be

:11:10.:11:15.

flexible. This is my home office space. Normally I hope that my

:11:16.:11:20.

children do not come in, I can get more work done. But we want our

:11:21.:11:24.

children to feel more comfortable coming into the room and being able

:11:25.:11:27.

to approach a father, so that means you cannot keep that strict boundary

:11:28.:11:31.

where some rooms are off-limits. I suppose I could be more efficient if

:11:32.:11:34.

my children never felt comfortable coming into the room. But I don't

:11:35.:11:40.

want that has a father. So I guess that is one thing in our life, we do

:11:41.:11:44.

not have these strict rules, right? I cannot lock my kids out of certain

:11:45.:11:48.

rooms. My wife cannot be forced to do some things in our marriage and I

:11:49.:11:52.

do other things. We have to mix and match. I am sorry, terribly prosaic,

:11:53.:11:58.

but I am not sure I would have much more to add than that. TRANSLATOR

:11:59.:12:38.

TRANSLATES INTO KOREAN. ABC news. Could you explain to us the exact

:12:39.:12:45.

moment when you realise, this is going viral? When was it? TRANSLATOR

:12:46.:12:55.

TRANSLATES INTO KOREAN. Two hours afterwards? Maybe? An hour? That is

:12:56.:13:04.

it? Well, we didn't... We thought it was a disaster. I immediately called

:13:05.:13:11.

or texted or emailed the BBC, I communicated with the BBC

:13:12.:13:13.

immediately afterwards and I apologise to them. I said that if

:13:14.:13:16.

they never called us back never asked to be to be on television

:13:17.:13:20.

again, I would understand. I had assumes that this would end any

:13:21.:13:23.

television appearances, that people would see this and assume that it

:13:24.:13:26.

was just wildly unprofessional and nobody would ever call me again. You

:13:27.:13:30.

know, that I would never speak on television again. I guess people

:13:31.:13:35.

started cutting and pasting it from there DVR two or something like that

:13:36.:13:39.

and it started taking off. I got the Twitter notifications. The BBC

:13:40.:13:43.

called us and asked us if they could cut it and print it. We are very

:13:44.:13:50.

grateful to them that they did so in a way that was gentle towards our

:13:51.:13:55.

children and treated it, it was framed as kids being kids and the

:13:56.:14:01.

parents doing the best that they can. We are very pleased that the

:14:02.:14:08.

BBC framed it that way. So, this is my family. So, yes, within an hour,

:14:09.:14:15.

I suppose. The BBC called us back to quit. They called us within 15 or 20

:14:16.:14:18.

minutes. They realise pretty rapidly. We didn't know. It was just

:14:19.:14:24.

a Skype interview in my home office, we had no idea about it. TRANSLATOR

:14:25.:14:26.

TRANSLATES INTO KOREAN. Do you worry about your credibility

:14:27.:15:02.

and have you considered to capitalise on this financially or in

:15:03.:15:09.

other ways? I am a little bit wary of the fallout for my academic

:15:10.:15:14.

credentials. We didn't want this. I mean, I guess is -- is the first

:15:15.:15:22.

line of my obituary for a while. I hope people would read my work.

:15:23.:15:28.

Yeah, I guess I'm a little bit concerned, what I think there is a

:15:29.:15:32.

general sense that this sort of happened, so I guess not. If we are

:15:33.:15:36.

still talking about this in six months I guess I would be genuinely

:15:37.:15:40.

uncomfortable. I am surprised this is still rolling along. Day five and

:15:41.:15:45.

we can't answer the phone. By the way, my apologies if some of you

:15:46.:15:49.

have phoned us. We have been very under phone calls and messages and

:15:50.:15:53.

Twitter and everything else, so if any of you have called us and we

:15:54.:15:57.

haven't answered the phone it is because we couldn't and it is crazy

:15:58.:16:00.

and it still is pretty hard. What was the second one? Maybe we should

:16:01.:16:02.

stop for her. TRANSLATION IN KOREAN. It would feel a little unseemly to

:16:03.:16:55.

try to monetise something that really was something that began with

:16:56.:16:59.

my children. I'm a little uncomfortable with that. I haven't

:17:00.:17:02.

really been approached seriously by anything. There have been a couple

:17:03.:17:06.

of minor business opportunities. People saw me and said, this guy

:17:07.:17:10.

knows something about Korea, let's give him a call. Really minor stuff.

:17:11.:17:16.

We've really not been approached in any kind of meaningful way and I

:17:17.:17:20.

don't know how we would use it in that way. I just see this as a

:17:21.:17:24.

fluke. I really don't know. I hadn't thought that far ahead. TRANSLATION

:17:25.:17:27.

IN KOREAN. I am trying to make sure that

:17:28.:17:56.

everyone gets heard. QUESTION IN KOREAN.

:17:57.:18:05.

You have become so famous and people want to see you. What is the reason

:18:06.:18:16.

you are becoming such an interesting person? Me or my family? I'm not

:18:17.:18:27.

that interesting! My guess is as I said in a statement this is the sort

:18:28.:18:33.

of thing that a lot of working parents can relate to. Your children

:18:34.:18:38.

interrupted in the middle of some sort of project. There is... The

:18:39.:18:43.

question was asked at the beginning about the work- life balance. People

:18:44.:18:48.

increasingly work from home. I Skype all the time from home for news

:18:49.:18:53.

agencies. Earlier in the day I did CNN. I do this a lot. I sort of

:18:54.:18:58.

create this veneer of professionalism inside my house,

:18:59.:19:03.

right? I straighten up my house and whatever and I wear a jacket in

:19:04.:19:08.

front of the camera. But the rest of my house looks like anyone else's. I

:19:09.:19:12.

think the reason why this went viral is because my real life sort of

:19:13.:19:18.

punched through the fake cover I had created for television. There I am

:19:19.:19:23.

in my suit delivering my talking points or whatever, and then

:19:24.:19:27.

suddenly reality burst in. That's my sense of why this is so resonant.

:19:28.:19:30.

TRANSLATION IN KOREAN. QUESTION IN KOREAN. She wants to

:19:31.:20:37.

ask, do you have any concerns about problems or issues as a foreign

:20:38.:20:42.

Korean couple? ANSWERS IN KOREAN. This is BBC News. As you can see we

:20:43.:21:04.

are lies in South Korea at the moment. This is Robert Kelly's wife.

:21:05.:21:16.

They have their little son on her lap and there are little girl,

:21:17.:21:21.

Marion. This is the family that has gone famous after a BBC interview

:21:22.:21:27.

last week when Professor Kelly was talking about problems in South

:21:28.:21:32.

Korea when the president was removed from office. My colleague James

:21:33.:21:38.

Menendez was interviewing Professor Kelly when Marion and James decided

:21:39.:21:41.

to make their debut on global television and barged into his home

:21:42.:21:47.

office. And I am sure you know the rest, either from seeing it on BBC

:21:48.:21:52.

or on social media. They are now responding to lots of questions they

:21:53.:21:59.

are receiving. As they have been saying, they've been bombarded with

:22:00.:22:01.

calls and enquiries since the interview last week and it really

:22:02.:22:05.

has been quite a whirlwind for them all as a family. They have done an

:22:06.:22:10.

exclusive interview with us that you can see on our website and you can

:22:11.:22:14.

read on internet, but Professor Kelly talking about the whirlwind

:22:15.:22:18.

that is occurred since the interview and how he is having to respond to

:22:19.:22:23.

all sorts of questions, not about politics, he is a political analyst,

:22:24.:22:28.

but questions about parenting, about working from home, about all sorts

:22:29.:22:31.

of things. Let's have a listen to what he has to say. Which is the

:22:32.:22:39.

best microphone? Where should I speak? My children will soon be

:22:40.:22:47.

jumping out of these chairs, so why do we pose any questions about the

:22:48.:22:52.

interview and details about our family or what happened now while

:22:53.:22:56.

they can stay in the room, because they really will not be able to sit

:22:57.:23:00.

still much longer. And then if anyone wants to ask me work-related

:23:01.:23:04.

questions, the writing, North Korea and South Korea and the impeachment,

:23:05.:23:09.

I can do that, but that will be easier after they've exited. Can we

:23:10.:23:12.

segment of the interview that weeklies? Family stuff first and

:23:13.:23:15.

then lifestyle first and politics second?

:23:16.:23:24.

This is BBC World News. More at the top of the hour, from me and Sally.

:23:25.:23:34.

If you are with BBC One you will join Breakfast.

:23:35.:23:40.

Things are going to turn more unsettled as we head towards the end

:23:41.:23:46.

on across the pond at the moment.

:23:47.:23:48.

A potent winter storm, which has already dumped half

:23:49.:23:50.

a metre of snow across parts of the north-east USA,

:23:51.:23:54.