:00:00. > :00:00.We will be taking a look at that. You know how to get in touch with
:00:07. > :00:07.us. Get involved in the conversation on Business Live using the hashtag
:00:08. > :00:13.you can see behind me. Steel is back on the agenda today
:00:14. > :00:20.in a big way as bosses of some of Europe's biggest steel-makers
:00:21. > :00:23.are in Brussels demanding urgent action to support
:00:24. > :00:26.Europe's steel industry. They are going to march
:00:27. > :00:30.to the European Commission buildings where industry chiefs and unions
:00:31. > :00:33.will meet with senior commissioners including the European Vice
:00:34. > :00:35.President who is responsible The EU is the second largest
:00:36. > :00:43.producer of steel in the world after China, which has been accused
:00:44. > :00:45.of flooding the European market Last Friday the European Commission
:00:46. > :00:51.opened anti-dumping investigations Tanya Beckett explains
:00:52. > :01:09.what all the fuss is about. The price of steel has fallen
:01:10. > :01:14.dramatically in the past five years. The steel industry is dominated by
:01:15. > :01:18.China, accounting for almost half of global production. It produced
:01:19. > :01:24.nearly 900 million metric tonnes last year. But as growth in China's
:01:25. > :01:31.economies slows, it has been sending more steel abroad. Its exports have
:01:32. > :01:39.surged 51% whereas Japan and the EU have seen marginal changes. The
:01:40. > :01:45.European Steel Association says 5000 jobs have been lost across Europe in
:01:46. > :01:50.recent months with the UK particularly affected. Companies
:01:51. > :01:55.like Tata Steel and Redcar blamed prices as cheap Chinese steel. With
:01:56. > :01:59.more jobs on the line, the EU took action in January and set
:02:00. > :02:06.provisional duties on Chinese imports of between 9.2% and 13%. But
:02:07. > :02:12.many say these measures do not go far enough. The steel industry
:02:13. > :02:20.employs 328,000 people in Europe and thousands of these jobs are at risk
:02:21. > :02:21.from cheap Chinese imports. That was Tanya Beckett outlining some of the
:02:22. > :02:24.detail for us. US Steel Kosice is the largest
:02:25. > :02:26.integrated steel producer in central The company's President,
:02:27. > :02:37.Scott Buckiso, joins Thank you for being on the
:02:38. > :02:43.programme. Clearly the big European players in the steel industry feel
:02:44. > :02:47.they have a strong argument for more action from the European Commission.
:02:48. > :02:55.What do you want from them in terms of further action? Well, thank you
:02:56. > :02:59.for having me. We are here for two reasons. First of all, not only are
:03:00. > :03:03.the heads of the steel companies here but thousands of our colleagues
:03:04. > :03:10.and co-workers, I know I have had many of my colleagues from US Steel
:03:11. > :03:15.Kosice travel for two days to be here, that is how important it is to
:03:16. > :03:22.us. We have been aggressively participating in all of these trade
:03:23. > :03:29.cases. If you look at the piece just given, those percentages, the
:03:30. > :03:33.We are here to make sure that the We are here to make sure that the
:03:34. > :03:41.European Commission uses all of its tools and all of its laws to enforce
:03:42. > :03:47.fair trade. Right now, with the glut of steel coming in from China and
:03:48. > :03:57.Russia and others, it is not a level playing field. The European market
:03:58. > :04:03.is one of the most open markets in the world as China and others are
:04:04. > :04:08.using that to dump their overcapacity of steel that they have
:04:09. > :04:13.in their countries for economic purposes and allowing them to
:04:14. > :04:21.subsidise the steel market in their country and it is hurting the
:04:22. > :04:26.European industry. On that issue of cheaper Chinese steel
:04:27. > :04:29.on the market, as you say, that is an issue that those in your industry
:04:30. > :04:34.have been talking about for a long time. Do you think that Brussels has
:04:35. > :04:38.been slow to show leadership on this issue? We have not seen a
:04:39. > :04:42.pan-European directive to restrict imports or impose higher tariffs
:04:43. > :04:50.until now, until you are literally marching on Brussels? Absolutely.
:04:51. > :04:54.That is why we are here. That is why literally thousands of people are
:04:55. > :05:00.here today. It is going to be catastrophic to the European economy
:05:01. > :05:04.and it will have social and economic effects throughout the entire
:05:05. > :05:09.European Union if the European Commission does not act and impose
:05:10. > :05:17.higher duties and stop the glut of steel coming onto the shores of
:05:18. > :05:23.Europe. They have not acted and they have not set proper duties on those
:05:24. > :05:27.steel imports. The second problem that we have at the second reason
:05:28. > :05:33.that we are here is that we feel that the European Commission cannot
:05:34. > :05:38.allow China to become a market economy or have market economy
:05:39. > :05:44.status. They do not meet the criteria. If they ground market
:05:45. > :05:48.economy status to China, it will be an open book for them to continue to
:05:49. > :05:54.dump unfairly traded steel into the dump unfairly traded steel into the
:05:55. > :05:59.European market, while subsidising their state-owned companies back in
:06:00. > :06:02.China. Very briefly, do you also admit that the steel industry
:06:03. > :06:08.generally speaking across Europe has got to see through some very
:06:09. > :06:13.difficult change? And that does mean job losses, regardless of China's
:06:14. > :06:18.dumping of steel in Europe, just because global demand has fallen and
:06:19. > :06:24.prices have fallen, so therefore the industry has got to change anyway.
:06:25. > :06:31.Yes. The industry has been changing. Since 2008, both in Europe and in
:06:32. > :06:38.the US, they have reduced their costs of doing business. However,
:06:39. > :06:41.with unfairly traded material continuing to be dumped excessively
:06:42. > :06:49.into the European market, we cannot cut costs fast enough. It should not
:06:50. > :06:53.take the company to be bankrupt or to lay off thousands of workers to
:06:54. > :06:57.prove injury and that is what is happening in the European Commission
:06:58. > :07:05.needs to act faster. We appreciate your time. The President of US Steel
:07:06. > :07:11.Kosice, thank you for your time. Just to say, we will keep you across
:07:12. > :07:14.this. Thank you for having me. A pleasure. We will keep you across
:07:15. > :07:16.everything going on in Brussels with that March. Some other news this
:07:17. > :07:20.hour. UK banking giant HSBC has
:07:21. > :07:23.announced it is to keep Concerns about stricter UK
:07:24. > :07:25.regulations led Europe's biggest bank to launch a review
:07:26. > :07:28.into whether to move elsewhere, with Hong Kong seen as the most
:07:29. > :07:30.likely alternative. But the bank said it had decided
:07:31. > :07:34.unanimously against the move and that London offered
:07:35. > :07:37.the best outcome for our Toyota says it has resumed
:07:38. > :07:43.operations at all vehicle assembly and parts plants in Japan
:07:44. > :07:48.after its longest domestic production suspension
:07:49. > :07:50.since the March 2011 The world's top automaker said
:07:51. > :07:55.earlier this month that it would temporarily stop all domestic
:07:56. > :08:01.vehicle production from 8th February to 13th February due
:08:02. > :08:04.to a components shortage following an explosion at supplier
:08:05. > :08:20.and affiliate Aichi Steel. Just looking at the Business Live
:08:21. > :08:24.page online, and just one story, coverage of HSBC and the twists and
:08:25. > :08:29.turns. This one made us chuckle because this debate is in no way
:08:30. > :08:33.new. This discussion about whether HSBC would move away from London,
:08:34. > :08:38.most likely to Hong Kong. There is an article here dated the 3rd of
:08:39. > :08:43.September, 2010. So this has been rumbling on for quite a long time.
:08:44. > :08:47.That is the UK Business Live page. If you want to know more about that,
:08:48. > :08:55.get stuck in. We can move to Japan now.
:08:56. > :08:57.The economy contracted in the final three months
:08:58. > :09:00.of 2015, adding to a string of setbacks for the government's
:09:01. > :09:03.Between October and December, official figures show the economy
:09:04. > :09:04.shrank by an annualised 1.4% percent.
:09:05. > :09:08.This is worse than expected - most predicted the economy
:09:09. > :09:11.Weaker domestic consumption was the biggest
:09:12. > :09:13.factor pulling down the economy, but slumping exports due
:09:14. > :09:17.to a stronger Japanese yen didn't help either.
:09:18. > :09:21.The news highlights the challenges facing Prime Minister Shinzo Abe
:09:22. > :09:23.in attempting to drag the world's third-biggest economy
:09:24. > :09:29.Many are now saying three years of so-called Abenomics
:09:30. > :09:35.Rupert Wingfield-Hayes joins us from Tokyo.
:09:36. > :09:45.Nice to see you. Give us your take on this story because the Japanese
:09:46. > :09:50.economy does not seem to be improving and if anything is going
:09:51. > :09:56.in the other direction. Yes, definitely bad news. Three years
:09:57. > :09:59.into the so-called Abenomics and we are back where we started with the
:10:00. > :10:03.Japanese economy shrinking and the stock market falling in the last
:10:04. > :10:08.week. What were the last three years for and what has gone wrong? There
:10:09. > :10:13.are two components to this, the domestic component, what is going on
:10:14. > :10:18.with the domestic economy, massive amounts of quantitative easing over
:10:19. > :10:22.three years have pushed up the stock market and helped banks restore
:10:23. > :10:25.their balance sheet that this has not fed through to Japanese
:10:26. > :10:30.consumers and consumer demand has remained flat. That is why we are
:10:31. > :10:35.seeing these GDP figures. The other issue with experts. The value of the
:10:36. > :10:39.Japanese yen was pushed down over the last three years which has
:10:40. > :10:43.helped exporters a lot on exports were booming. Companies like Toyota
:10:44. > :10:46.were making record profits but in the last six months that has dropped
:10:47. > :10:50.off dramatically, a large part because of what is going on in
:10:51. > :10:54.China, the world economy slowing down, and in the last month the
:10:55. > :10:57.dramatic strengthening of the Japanese yen, not because of
:10:58. > :11:01.anything going on in Tokyo but because of a lack of confidence
:11:02. > :11:08.around the world. When that happens, investors rush to what they call
:11:09. > :11:12.save havens and the Japanese yen is considered a safe haven and because
:11:13. > :11:14.of it that has meant it has gone up in value and then the Japanese
:11:15. > :11:19.products cost more money. Thank you. A quick look at markets
:11:20. > :11:21.and in Japan, despite the dismal data that showed the economy
:11:22. > :11:25.contracted more than expected the Nikkei stocks rocketed
:11:26. > :11:32.on Monday, leading most Asian markets higher and in so doing
:11:33. > :11:35.snapping a five-day losing streak. That data raised hopes for more
:11:36. > :11:37.stimulus for Asia's second biggest And in China, Chinese shares dropped
:11:38. > :11:47.on their first day of trading after the week-long Lunar New Year
:11:48. > :11:50.holidays that coincided with a sharp European shares have
:11:51. > :11:59.opened sharply higher, following gains in Asia
:12:00. > :12:01.where a firmer Chinese currency And in Paris and Spain, all the
:12:02. > :12:23.markets are up 2% well. is Richard Jeffrey,
:12:24. > :12:33.Chief Investment Officer Happy new week. I feel like every
:12:34. > :12:37.Monday I have a conversation about how the week has begun. Since the
:12:38. > :12:44.start of 2016I am not sure about where we are going next. There has
:12:45. > :12:47.been a lot of turbulence and sentiment is understandably fragile.
:12:48. > :12:52.We need to get a grip on what is going on behind this and why
:12:53. > :12:55.sentiment is so fragile. I think it is part of this adjustment process
:12:56. > :12:59.for investors and other people taking economic and policy
:13:00. > :13:03.decisions. The adjustment process for those people to what is a new
:13:04. > :13:08.economic order. It is certainly a new economic order compared to what
:13:09. > :13:12.we got used to before the recession. Before the recession, we were seeing
:13:13. > :13:18.the West driving global demand and grows, and excess demand in the
:13:19. > :13:22.West. People in developing economies were feeding that through
:13:23. > :13:26.manufacturing activity and it was a period of strong global growth. That
:13:27. > :13:29.is slowing down and the West is not growing as quickly and people
:13:30. > :13:34.feeding the growth in the West are finding life much tougher. There
:13:35. > :13:38.were nervous given that China was opening for the first time in a week
:13:39. > :13:42.and last week was really turbulence in Japan and elsewhere. But actually
:13:43. > :13:49.we have not had any falling off a cliff moments today or any highly
:13:50. > :13:52.volatile sessions yet. I know it is early days, 45 minutes into the
:13:53. > :14:02.European date! 45 minutes and the FTSE 100 is up.
:14:03. > :14:10.The authorities were saying that they have no policy of devaluing it.
:14:11. > :14:14.They are going to keep it stable. They don't see the economy is headed
:14:15. > :14:18.for a hard landing and it is growing at a respectable rate. Whether they
:14:19. > :14:21.can fulfil both those two things remains to be seen, but the
:14:22. > :14:26.statements in themselves were reassuring.
:14:27. > :14:28.Thank you, Richard. He will be back in myself more minutes. More work to
:14:29. > :14:32.do for Richard! We'll to hear
:14:33. > :14:35.from a firm that calls itself the Silicon Valley of shipping
:14:36. > :14:38.and a plan to build greener, wind powered cargo ships that
:14:39. > :14:45.reduces fuel consumption You're with Business
:14:46. > :14:49.Live from BBC News. As we mentioned earlier,
:14:50. > :14:51.Europe's largest bank HSBC has decided to keep its headquarters
:14:52. > :14:55.in the UK despite concerns about increased regulation
:14:56. > :15:01.and the risk of a Brexit. Tanya Beckett is back
:15:02. > :15:13.with us and joins us Nice to see you, Tanya. It was no
:15:14. > :15:17.big surprise, was it, really? Yes. HSBC has been deliberating this move
:15:18. > :15:21.for really sometime and some ten months and the feeling was that UK
:15:22. > :15:27.was held to ransom because it was a big impact on the UK. It provides up
:15:28. > :15:31.to about ?1 billion of revenues every year in just terms of the levy
:15:32. > :15:35.it pays because it has an enormous balance sheet. It is Europe's
:15:36. > :15:43.largest bank after all. But this was a bank that has its roots in the Far
:15:44. > :15:50.East, in Asia, in 1865 it was set-up. So relatively short time in
:15:51. > :15:56.the context of its history, but it hires a lot of people. 26,000 to be
:15:57. > :16:00.precise and in the UK, there are 48,000 of those people, so although
:16:01. > :16:04.it would have been costly for the bank to move, it would have been a
:16:05. > :16:08.huge decision, it would have cost ?1.5 billion to do it. The feeling
:16:09. > :16:12.is a little bit that it was very keen to lean on the Treasury here in
:16:13. > :16:16.the UK, and try to get some concessions and where it has been
:16:17. > :16:21.successful is certainly reducing the bank levy. It lobbied very, very
:16:22. > :16:26.hard there. Also, of course, it is concern about the possibility of the
:16:27. > :16:30.UK exiting the EU, but it says that it has large operations in France
:16:31. > :16:35.and can fall back on those, but unquestionably what we have seen in
:16:36. > :16:38.terms of the turmoil in China and of course, Japan, perhaps raises
:16:39. > :16:42.questions about how stable the growth is that we have seen in the
:16:43. > :16:47.Far East and therefore, perhaps, makes it less attractive, although
:16:48. > :16:49.one would imagine that the short-term fluctuations wouldn't
:16:50. > :16:54.really play into a long-term des, certainly they must colour the
:16:55. > :16:56.picture. -- decision, but certainly, they
:16:57. > :17:11.must colour the picture. A story that grabbed Alice's
:17:12. > :17:17.attention because she was having an opposite story last week about
:17:18. > :17:20.rents. Apparently, it slowed in the previous quarter, but that
:17:21. > :17:23.north-south divide is still very much an issue.
:17:24. > :17:26.Protests over the state of Europe's steel industry,
:17:27. > :17:28.battered by a perfect storm of cheap Chinese imports,
:17:29. > :17:41.Bosses of steel companies are marching on the European
:17:42. > :17:43.Commission's head quarters for action.
:17:44. > :17:45.Shipping is the life blood of the global economy.
:17:46. > :17:48.Without the raw materials, food and manufactured goods
:17:49. > :17:52.transported by sea, economies would grind to a halt.
:17:53. > :17:55.Clearly, there's no doubt that the industry is a polluter,
:17:56. > :18:01.but aircraft and lorries are far bigger emitters of CO2.
:18:02. > :18:04.The sheer volume of sea cargo means there's a need
:18:05. > :18:07.The Smart Green Shipping Alliance, the SGSA, calls itself
:18:08. > :18:11.It's a pan-industry initiative to develop commercially
:18:12. > :18:17.viable, environmentally-friendly vessels.
:18:18. > :18:20.The Alliance is using technology, initially developed for high
:18:21. > :18:22.performance yachts, to design a hybrid cargo ship
:18:23. > :18:37.The high-tech design reduces fuel use by 50%.
:18:38. > :18:39.This is important as the global shipping industry carries around 90%
:18:40. > :18:42.Diane Gilpin is the Founder and Chief Executive
:18:43. > :18:44.of the Smart Green Shipping Alliance.
:18:45. > :18:53.Welcome to Business Live. Thank you very much. It sounds like a tall
:18:54. > :19:00.order really to make this happen. Where did the idea first come into
:19:01. > :19:05.being? I think, it is a tall order. We work clabtively and I think the
:19:06. > :19:10.idea of wind at sea isn't exactly new. We have had thousands of years
:19:11. > :19:14.of experience of propelling ships through the water using renewable
:19:15. > :19:19.energy. In fact our world has been built on wind. My personal
:19:20. > :19:26.experience comes from driving start up innovations. I worked for
:19:27. > :19:33.Secretnet and I went to work in Formula One and what was really
:19:34. > :19:38.interesting about that was the -- Cellnet. I move from Formula One
:19:39. > :19:42.into yacht racing and there was no con daout for the experience,
:19:43. > :19:45.expertise, technology that was being developed in yacht racing to go into
:19:46. > :19:51.commercial shipping in the same way as it did from Formula One to
:19:52. > :19:54.automotive. So, working also in renewable energy you start to think,
:19:55. > :20:00.you know what, there is a lot of knowledge there. We can start to
:20:01. > :20:08.transfer that technology. So that coupled with the very urgent need to
:20:09. > :20:11.start looking at how we can reduce cost, reduce vulnerability, and
:20:12. > :20:17.exposure to volatile fuel prices going into the future. A ship built
:20:18. > :20:21.today, will last for 30 years. So, you know, the outcome that we expect
:20:22. > :20:30.in Paris would mean that that ship would have to be net zero emissions.
:20:31. > :20:34.Diane you have designed this hybrid cargo ship using technology that was
:20:35. > :20:39.used for high performance yacht racing, but it is a tall order you
:20:40. > :20:43.face as Sally was ind mating. At a time when we have a glut of ships in
:20:44. > :20:48.the world compared to the amount of goods we need to ship and also at a
:20:49. > :20:51.time of historically low oil prices, how receptive do you think the
:20:52. > :20:57.industry will be to taking on more cost to building these new highly
:20:58. > :21:03.developed ships in your blog from the Paris Climate talks, you talk
:21:04. > :21:08.about selective deafness? It wasn't me that designed the ships. It was
:21:09. > :21:13.one of the leading yacht designers. We work with Lloyds Register to
:21:14. > :21:18.combine commercial shipping with the industrialised version of yacht
:21:19. > :21:22.racing. But it is difficult and there are decenting voices. Change
:21:23. > :21:25.is a difficult thing for a human being in any shape or form and I
:21:26. > :21:29.think the shipping industry is no different to that, but having said
:21:30. > :21:32.that, we work clabtively and we have got fantastic members of our
:21:33. > :21:37.alliance who are working across the shipping structure. So we're working
:21:38. > :21:40.on three separate, but interconnected work streams, we are
:21:41. > :21:46.doflgt fast rig which is the technology to harness the power of
:21:47. > :21:50.the wind. We're developing a big data analysis tool called Trade Wind
:21:51. > :21:56.where we're working with the Met Office where we have 20, 30 years of
:21:57. > :22:02.weather data. So we can predict how much free fuel we can harness. And
:22:03. > :22:07.we're working with the finance commercial sector law. How we
:22:08. > :22:14.reengineer the finance arrangements. So you have some extra, as you say,
:22:15. > :22:18.Alice, extra upfront capital cost, and that's over a 30 year period.
:22:19. > :22:22.You can start to put resilience and certainty back into the system and
:22:23. > :22:27.it badly needs it. We appreciate your time. Thank you
:22:28. > :22:30.for coming in from Smart Green Shipping Alliance.
:22:31. > :22:34.We have to move on. The time is getting the better of us today.
:22:35. > :22:36.Imagine clothing that improves your performance
:22:37. > :22:47.We'll hear from the boss of high tech sportswear firm,
:22:48. > :22:51.In a moment we'll take a look through the Business Pages but first
:22:52. > :22:53.here's a quick reminder of how to get in touch with us.
:22:54. > :22:57.The Business Live page is where you can stay ahead with the day's
:22:58. > :23:00.breaking business news. We will keep you up-to-date with all the latest
:23:01. > :23:03.details. With insight and analysis from the BBC's team of editors right
:23:04. > :23:11.around the world. And we want to hear from you too. Get involved on
:23:12. > :23:17.the BBC Business Live web page. And on Twitter:
:23:18. > :23:20.You can find us on Facebook: Business Live on TV and online
:23:21. > :23:34.whenever you need to know. Richard is back. This story caught
:23:35. > :23:37.our attention. City's top bankers could avoid UK rules. What's that
:23:38. > :23:42.about? It is an interesting story. It has an echo of stories we were
:23:43. > :23:47.talking about before a couple of weeks ago, how do you tax companies
:23:48. > :23:52.which have operations across international borders. How do you
:23:53. > :23:59.regulate companies? In particular for this one, should people who run
:24:00. > :24:04.overseas operations of a bank, who are based in London, be subject to
:24:05. > :24:08.the London regulatory rules or should they be regulated elsewhere?
:24:09. > :24:11.What City is arguing they should be relegated elsewhere and not subject
:24:12. > :24:16.to a new regime that's being introduced over the next month or
:24:17. > :24:18.so. None of the other major banks are following suit, are they? No,
:24:19. > :24:23.but they will be watching closely.