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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.