09/11/2015 BBC Business Live


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Hello, you are with Business Live. An industry in crisis. After


thousands of job cuts and plant closures, EU ministers have called


an emergency meeting in Brussels to discuss the fate of your's embattled


steel industry. That is our top story on Monday 9th of November.


Europe's steel industry is demanding tougher action against cheap imports


of Chinese steel that it blames for the low global steel prices. Also in


the programme, Lufthansa grounded again. The German airline has


cancelled almost 1000 flights as cabin crew go on strikes over


cost-cutting. Over 113,000 travellers stranded. Also today, the


markets have just started their week. The FTSE is bucking the trend


in Europe. We explain why. And we are joined by the perfume queen.


Yes, the shears, Jo Malone. Her story is a real rags to riches one.


She is going to be in the studio joining us later in the programme.


And snap chat. It says it now gets over 6 million views a day. -- 6


billion. This is what we want in all, do you use Snapchat or is it a


waste of time? Use the hash tag right there.


Aaron should appreciate my lines, really. Welcome to the programme. EU


ministers are meeting in Brussels to discuss the trouble steel industry


in Europe. Written's against steel maker Tata is facing turmoil. Last


month, the firm said it was cutting 1200 jobs in the UK as prices fall


around the world. As you can see, the price of the ion alloy has quite


literally fallen through the floor in the past five years. Production


is dominated by China. It makes almost 50% of the world's steel. You


can see very clearly the EU is lagging some way behind. As growth


in China's economy grows, it is sending more still overseas. Exports


are over 50% while other major producers have flat line. European


producers say that that glut in production is pushing the industry


to the point of collapse. Astonishing numbers. Peter Fisher is


managing director of steel consultancy NEP maps. He joins us


now. Thanks for joining us. Can make something clear of all. Big concerns


about China dumping cheap steel into Britain and Europe. I want to make


this clear. British manufacturers and European manufacturers are


buying this Chinese cheap steel. The Chinese are not putting a gun to


their That is true. There is no doubt that it is so competitive that


the fire is still don't really worry about what is happening at the other


end. They are obtaining this cheap steel and it helps. It helps costs.


Should countries produce their own steel? Do countries need to produce


their own steel, do you think? It is not absolutely net is only --


absolutely necessary, but it is good to have a base load steel-making to


be a manufacturing country. You do not want to wait for steel to


arrive. We won't disseminate in the country that you are


manufacturing,. -- you want a certain amount in the country.


Michael say that what is happening to them could spread to Europe. I


was speaking to annex that earlier. He said it costs twice as much to


make this deal in Britain than it does in, say, Germany. I think there


is a problem there. There are differences between EU countries and


the way they treat raw material imports and energy imports. That is


a difficult thing to solve. Our Government cannot insist in the


Germans pushing the price for energy up. It is a decision for us to get


into line with others. Peter, Mrs Sally joining in the conversation.


What are you hoping will happen in Brussels? I know that many in Europe


feel it takes far too long for Europe to react to the situation and


therefore the steel makers in Europe are really losing out. That is


perfectly true. In fact, it could be ten, 11 months before a complaint


goes in and any decision is taken. That is clearly too long. There are


ways that I think action could be taken. The US, for instance, and


India... If there is a complaint and that seems to be valid, they slap


tariffs on imports pretty quickly. I am not saying that will solve the


problem at a listed helps. Peter, thank you for your time.


Peter joining us there. Did you make sure you told him it was Sally in


case you thought my voice a change? It is just common cutter CX Mackie


is not with us in the studio and does not know who I am.


Shall we touch on some of the other stories making headlines? Back to


China. It saw imports drop in for the 12 month in a row, giving


further cause for concern over Chinese economy imports.


Trading fell 18% compared to... That is a slight improvement on


September's decline. China revealed its economy grew by 6.9% in the


third quarter, the weakest rate and they global economic crisis. The


World Bank has want 100 million more people will be pushed into poverty


by 2030 unless action is taken to prevent global warming. It forecast


food prices in Africa could rise by 12%. Millions more could be at risk


from malaria and migration could increase.


Quick look at this. I want to talk about this. Maggi noodles. That just


jumped, but I want to go back to the Maggi noodles. Big problems in India


over several months. There was too much...


It was alleged by Indian authorities that there was too much lead in the


noodles but actually Nestle, the owners of Maggi noodles, fought back


and it went on and on. It was appealed and found that that was not


the case. Anyway, they are back on sale.


They return to the shelves after a five-month absence. Talking about


German trade. It bounces back. We had industrial manufacturing numbers


from Germany. It is up and down but it is low and slow as one expert


tells me. You might get to meet him in the programme. Very important, of


course. We are talking about Europe's largest economy. Indeed.


Let's look at the big stories breaking in Asia today.


Sheba has been embroiled in an accounting scandal. -- Toshiba. We


have that story from Singapore now. How bad was it?


Toshiba's shares plunged 7.5% after the bad news. Over the weekend, the


company said it had an operating loss of $645 million in the


September quarter. On top of this, Toshiba is suing five former


executives, including three former CEOs, for mismanagement. This has to


do with the accounting scandal, $1.3 billion, that unravelled in July.


Executives had a hand in overstating the company's profit over seven


years. Toshiba is seeking 2.4 billion dollars in damages.


Investors are not impressed at the restructuring process of the


business and she is down on was 40% this year. -- shares are down.


Japan ended the day up nearly 2%. Hong Kong pretty flat. That is the


close on Friday in the US. China coming out with trade figures that


were not that encouraging. It has not spooked markets too much.


Looking at Europe, fairly mixed. Just you the Dax in Frankfurt. Then


just slightly. And the FTSE up a little bit. What's going on today.


The CBI conference in London, a lot of the big business leaders, many


listed in London, meeting to discuss all sorts of issues. We will touch


on that later. Let's take a look on what is in store if you're watching


Wall Street. This week is full of data that


should spell more good news for the United States economic recovery. On


Thursday, we will get a look at the number of Americans affected by


unemployment. And on Friday, the Labor Department will release


figures for October's producer price index. Full is the it will give a


sneak peek on inflation. -- it will give a sneak peek on inflation and


it is a piece of data that will be looked at to see whether or not


interest rates will be raised. And how cable companies deal with


competition from online streaming services. We will find out on


Thursday. Changes in viewership will have set advertising revenue and


will weigh on profit. Let's stay with the markets. Pleased


to see you. Can I just do this quote Mark Shand tell him I am Sally as


well? I know that you want to say


something about the steel. It is a big problem in Britain. It is a huge


problem. The Government managed to hamstring us straightaway by making


the power charges double what they are in Europe. If we have another


cold snap as we had in 2012, we have shut the major plant since then, we


will have blackouts. In Sheffield, Sheffield is shifting more steel


highly manufactured, highway highly manufactured, highway


engineer staff and doing very well indeed. It is the actual steel


production itself, that is the area we are losing out to. The top end


area, we are doing very well. So have a look at Sheffield. US jobs.


271,000! The expectation was for 186,000. This is cracking and it


means we big boss cannot say no no. She will have to make our mind up.


The Fed do not agree with what is going on but now she has no choice.


These basic figures... Now it is really... Immediate reaction in the


markets, use the dollar rise significantly against the pound at


that looks like it is a move how much? What, maybe. I would have


moved before to say, actually, we trimmed the sales and are heading in


that direction. Bearing in mind there is no sign of inflation. That


will be one of the key measures to have but there is no choice now. We


will see a law, slower world in the next few years. Raise rates now on


the basis you can cut them later. You can talk to just the next time.


-- Justin. Promise. Let's speak to... Later, we will be


speaking to the founder of the pair fume empire, Jo Malone. She will be


with us in the studio. This is Business Live, from business


news. Let's talk about Britain's future in Europe. Of course a very


hot topic at the moment and it will be one of the topics under


discussion at the UK's conference of business leaders. The British Prime


Minister, David Cameron, is addressing the CBI conference later.


It will consider whether Britain will be more successful inside or


outside the EU. Our correspondent is at the conference, where they are


looking at the challenges facing business. What is going on?


Welcome to the Grosvenor house hotel ballroom, where the glitterati of UK


business will come to see David Cameron on the stage and about one


hour give an update on how his negotiations for reform of the


Russian ship between the UK and EU are going. The role of business in


this referendum is important and very interesting. Businesses cannot


vote but their voices powerful. You will see underneath the CBI, The


Voice Of Business. They are largely saying they are in favour of staying


in a reformed European Union. But that voice is being disputed.


Another group, called Business for Britain is throwing their lot in


with Vote Leave to see that this does not show the full voice of


British business. The business voice came very late to the Scottish


referendum and it is coming out of this one. Already there are deep


divisions. David Cameron will be here and about one hour to outline


how those renegotiations are going. You have a sit in Taiwan! -- suit


and tie on! For once. That is something about radio. He is


so lucky. He can dress down. If I was on radio, I would wear my


pyjamas! Send us e-mails if you want a dress down day and we will tell


the bosses. Spending cuts. Less tough than they look.


This is about George Osborne, he is expected to announce today he has


done deals with four Government departments. That is Treasury,


Transport, local environment... That is significant cuts if it were


confirmed. He is expected to make this announcement today. Abigail


Hughes talking about this and David Cameron speaking at the CBI. Indeed,


we will be all others like a rash. -- all over this.


Our top story, ministers from the EU states will meet today to discuss


this dire issue facing steelmakers in the region. Many plants have been


close, thousands of jobs cut, the price of steel falling off a cliff


and your's steel industry is pushing for tougher action on cheap Chinese


imports which they say are falling down. They say are tsunami of


Chinese steel. That is how it was described to me this morning. The


British blog. Chinese tsunami of British Steel. -- the British


bloke. Today's guest has a rags to riches story. Jo Malone is a


successful businesswoman who is known for her perfume fragrance. She


Lescott 14 with no qualifications. At the age of 21, she started her


first business in the kitchen, mixing bath oils that she then sold


her facial clients. They were so popular her husband quit his job to


help get up and running in Chelsea, and she went on to run an


multi-million pound fragrance business. In 1999, she sold the


business to Estee Lauder and stayed business to Estee Lauder and stayed


on for seven years before leaving. In 2011, she wants -- launched her


new fragrance business and it is called Jo Loves. Jo Malone is here.


Welcome. Can I start with this? Yes, go for it! I am going to get you to


show us what this is all about. Why fragrances? I heard you have a good


nose. You have that thing, haven't you? Apparently, I do. Apparently, I


have that thing. I am dyslexic, so my nose is like Mike paintbrush. I


tasted, I smell fragrance. You see colours? I see colour. Like the


poppy, ie see the colour of the poppy and I need you smell something


before I see the colour. Synaesthesia? Apparently. That is


amazing. You left school at 14 with no qualifications and work in a


florist at 16, which goes with all your senses, as you said. But then


to actually create and make stuff... I wouldn't know where to


begin. And the business sense behind it, webs that come from? It was cut


dumber gut instinct. --. Inspect. I got my business knowledge from my


father. He was also a magician. So I was the magician's assistant on


Saturday. That is where I learnt the of entertainment and entertaining


someone. The importance of a story. So all of those things. And my first


job was in a flower shop, which I absolutely love. I love taking the


flowers and making the bouquets and going to the market. Must have


driven me crazy, all the smells around you constantly! I could watch


when the market and when I ordered flowers, I would know where I was by


smell. I would also know that the orange blossom that was freshest,


because they did not allow strong because the body had not come out.


It makes sense that you're making money is the smell. I mean,


completely. He went from there, 21, mixing things in your kitchen and


came up with fragrances and candles and the whole business. I would hear


these genes in my head. -- tunes. I had eight or nine ladies, to have


their faces done. As a little thank you, I created oil. It was a thank


you to them for coming. One lady Wendy ordered 100 bottles and that


was the crossroads and the timing point of everything. From there, we


saw this huge kind of demand for products and I was making it in a


little kitchen no bigger than that. It went to this multi-million pound


business you created. In 1999, Estee Lauder knocked on the door. They


might have been knocking on the door earlier than that, but you decide,


yes, now 's the time to... What was like going from being your own


business to working with them? Your market was different. As the creator


and founder, I still continue to delight headed for a while. I was


really happy for a long time creating and learning, travelling


the world. Taking pictures... The whole thing was a wonderful,


incredible adventure. We are fortunate running out of time but it


was an incredible adventure, but then you're diagnosed with


aggressive best cancer. You had to fight that and it was at that sort


of time you left Estee Lauder. -- aggressive breast cancer. I spent


one year fighting that and after one year, I was in the same person. I


stepped away in 2006 and left. So then, Jo Loves was born? After five


years, I wanted to go back in the industry and build another global


brand and this is my little baby at the moment. It is one set, and then


this is another one and it makes this one together. Unfortunately,


we're running out of time we appreciate you coming in. Can you


make that disappear? By! Thank you, Jo As ever, we would like to hear


from you. Do get in touch. This is to be involved. The business live


pages where you can stay ahead with other day's breaking business news.


It'll keep you up-to-date with all the latest details with insight and


analysis from the BBC's team of editors around the world. And we


want to hear from you, too. Get involved on the BBC Business Life


Web Page. You Can Also Find Us On Twitter And Facebook.


Justin is back. We will look at some of the other stories in the business


news today. This says, I love Snapchat, it is not as personal as


Facebook. We will talk about that in more detail in a moment but first of


all, Lufthansa. They have had a torrid year. We have lost count of


how many strikes you have had to deal with. They have lost millions


of dollars from the pilot strike. This is trying to compete with the


Gulf carriers. This is the issue. All the old


carriers have to try and reinvent themselves. BA had to go through


this with Willie Walsh and Iberia, which is really painful. And they


have done it and come through the other side and it is now making


money. Making quite a lot of money. The French are not very good at


reforms, as you can see. With reforms, as you can see. With


cancer, you would have fought the would have addressed this but they


have not. They are very conservative. We have got to get


through this quickly and it will be painful. Anyone working and airlines


to look at the ones that are successful and the other one is that


we organise their business style. A lot of those, the heavy discounters,


the exceptions would be the Middle Eastern ones, but again they start


off with a blank sheet of paper. They start off and don't have the


overhead is that the old-fashioned carriers have. Snapchat. Are you a


user? Not argue. I thought it was user? Not argue. I thought it was


something young people do not did things with. I did not realise it


was such a big thing. Not just a lot of things, I have to clarify that.


These things are developing like flowers blooming and then dying


thereafter because the technology changes so quickly. And so the


younger generation will click onto the next one. Meanwhile, Facebook,


Twitter and the others have to catch up with the applications. Snapchat


says it gets over 6 billion views a day. Is this bit worried or will it


think, maybe we should buy this company? What you're finding is the


bringing in more technology to try and beat it. Thank you very much.


Pleasure. The table! Banging the table. We will see you later.




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