15/02/2016 BBC Business Live


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We will be taking a look at that. You know how to get in touch with


us. Get involved in the conversation on Business Live using the hashtag


you can see behind me. Steel is back on the agenda today


in a big way as bosses of some of Europe's biggest steel-makers


are in Brussels demanding urgent action to support


Europe's steel industry. They are going to march


to the European Commission buildings where industry chiefs and unions


will meet with senior commissioners including the European Vice


President who is responsible The EU is the second largest


producer of steel in the world after China, which has been accused


of flooding the European market Last Friday the European Commission


opened anti-dumping investigations Tanya Beckett explains


what all the fuss is about. The price of steel has fallen


dramatically in the past five years. The steel industry is dominated by


China, accounting for almost half of global production. It produced


nearly 900 million metric tonnes last year. But as growth in China's


economies slows, it has been sending more steel abroad. Its exports have


surged 51% whereas Japan and the EU have seen marginal changes. The


European Steel Association says 5000 jobs have been lost across Europe in


recent months with the UK particularly affected. Companies


like Tata Steel and Redcar blamed prices as cheap Chinese steel. With


more jobs on the line, the EU took action in January and set


provisional duties on Chinese imports of between 9.2% and 13%. But


many say these measures do not go far enough. The steel industry


employs 328,000 people in Europe and thousands of these jobs are at risk


from cheap Chinese imports. That was Tanya Beckett outlining some of the


detail for us. US Steel Kosice is the largest


integrated steel producer in central The company's President,


Scott Buckiso, joins Thank you for being on the


programme. Clearly the big European players in the steel industry feel


they have a strong argument for more action from the European Commission.


What do you want from them in terms of further action? Well, thank you


for having me. We are here for two reasons. First of all, not only are


the heads of the steel companies here but thousands of our colleagues


and co-workers, I know I have had many of my colleagues from US Steel


Kosice travel for two days to be here, that is how important it is to


us. We have been aggressively participating in all of these trade


cases. If you look at the piece just given, those percentages, the


We are here to make sure that the We are here to make sure that the


European Commission uses all of its tools and all of its laws to enforce


fair trade. Right now, with the glut of steel coming in from China and


Russia and others, it is not a level playing field. The European market


is one of the most open markets in the world as China and others are


using that to dump their overcapacity of steel that they have


in their countries for economic purposes and allowing them to


subsidise the steel market in their country and it is hurting the


European industry. On that issue of cheaper Chinese steel


on the market, as you say, that is an issue that those in your industry


have been talking about for a long time. Do you think that Brussels has


been slow to show leadership on this issue? We have not seen a


pan-European directive to restrict imports or impose higher tariffs


until now, until you are literally marching on Brussels? Absolutely.


That is why we are here. That is why literally thousands of people are


here today. It is going to be catastrophic to the European economy


and it will have social and economic effects throughout the entire


European Union if the European Commission does not act and impose


higher duties and stop the glut of steel coming onto the shores of


Europe. They have not acted and they have not set proper duties on those


steel imports. The second problem that we have at the second reason


that we are here is that we feel that the European Commission cannot


allow China to become a market economy or have market economy


status. They do not meet the criteria. If they ground market


economy status to China, it will be an open book for them to continue to


dump unfairly traded steel into the dump unfairly traded steel into the


European market, while subsidising their state-owned companies back in


China. Very briefly, do you also admit that the steel industry


generally speaking across Europe has got to see through some very


difficult change? And that does mean job losses, regardless of China's


dumping of steel in Europe, just because global demand has fallen and


prices have fallen, so therefore the industry has got to change anyway.


Yes. The industry has been changing. Since 2008, both in Europe and in


the US, they have reduced their costs of doing business. However,


with unfairly traded material continuing to be dumped excessively


into the European market, we cannot cut costs fast enough. It should not


take the company to be bankrupt or to lay off thousands of workers to


prove injury and that is what is happening in the European Commission


needs to act faster. We appreciate your time. The President of US Steel


Kosice, thank you for your time. Just to say, we will keep you across


this. Thank you for having me. A pleasure. We will keep you across


everything going on in Brussels with that March. Some other news this


hour. UK banking giant HSBC has


announced it is to keep Concerns about stricter UK


regulations led Europe's biggest bank to launch a review


into whether to move elsewhere, with Hong Kong seen as the most


likely alternative. But the bank said it had decided


unanimously against the move and that London offered


the best outcome for our Toyota says it has resumed


operations at all vehicle assembly and parts plants in Japan


after its longest domestic production suspension


since the March 2011 The world's top automaker said


earlier this month that it would temporarily stop all domestic


vehicle production from 8th February to 13th February due


to a components shortage following an explosion at supplier


and affiliate Aichi Steel. Just looking at the Business Live


page online, and just one story, coverage of HSBC and the twists and


turns. This one made us chuckle because this debate is in no way


new. This discussion about whether HSBC would move away from London,


most likely to Hong Kong. There is an article here dated the 3rd of


September, 2010. So this has been rumbling on for quite a long time.


That is the UK Business Live page. If you want to know more about that,


get stuck in. We can move to Japan now.


The economy contracted in the final three months


of 2015, adding to a string of setbacks for the government's


Between October and December, official figures show the economy


shrank by an annualised 1.4% percent.


This is worse than expected - most predicted the economy


Weaker domestic consumption was the biggest


factor pulling down the economy, but slumping exports due


to a stronger Japanese yen didn't help either.


The news highlights the challenges facing Prime Minister Shinzo Abe


in attempting to drag the world's third-biggest economy


Many are now saying three years of so-called Abenomics


Rupert Wingfield-Hayes joins us from Tokyo.


Nice to see you. Give us your take on this story because the Japanese


economy does not seem to be improving and if anything is going


in the other direction. Yes, definitely bad news. Three years


into the so-called Abenomics and we are back where we started with the


Japanese economy shrinking and the stock market falling in the last


week. What were the last three years for and what has gone wrong? There


are two components to this, the domestic component, what is going on


with the domestic economy, massive amounts of quantitative easing over


three years have pushed up the stock market and helped banks restore


their balance sheet that this has not fed through to Japanese


consumers and consumer demand has remained flat. That is why we are


seeing these GDP figures. The other issue with experts. The value of the


Japanese yen was pushed down over the last three years which has


helped exporters a lot on exports were booming. Companies like Toyota


were making record profits but in the last six months that has dropped


off dramatically, a large part because of what is going on in


China, the world economy slowing down, and in the last month the


dramatic strengthening of the Japanese yen, not because of


anything going on in Tokyo but because of a lack of confidence


around the world. When that happens, investors rush to what they call


save havens and the Japanese yen is considered a safe haven and because


of it that has meant it has gone up in value and then the Japanese


products cost more money. Thank you. A quick look at markets


and in Japan, despite the dismal data that showed the economy


contracted more than expected the Nikkei stocks rocketed


on Monday, leading most Asian markets higher and in so doing


snapping a five-day losing streak. That data raised hopes for more


stimulus for Asia's second biggest And in China, Chinese shares dropped


on their first day of trading after the week-long Lunar New Year


holidays that coincided with a sharp European shares have


opened sharply higher, following gains in Asia


where a firmer Chinese currency And in Paris and Spain, all the


markets are up 2% well. is Richard Jeffrey,


Chief Investment Officer Happy new week. I feel like every


Monday I have a conversation about how the week has begun. Since the


start of 2016I am not sure about where we are going next. There has


been a lot of turbulence and sentiment is understandably fragile.


We need to get a grip on what is going on behind this and why


sentiment is so fragile. I think it is part of this adjustment process


for investors and other people taking economic and policy


decisions. The adjustment process for those people to what is a new


economic order. It is certainly a new economic order compared to what


we got used to before the recession. Before the recession, we were seeing


the West driving global demand and grows, and excess demand in the


West. People in developing economies were feeding that through


manufacturing activity and it was a period of strong global growth. That


is slowing down and the West is not growing as quickly and people


feeding the growth in the West are finding life much tougher. There


were nervous given that China was opening for the first time in a week


and last week was really turbulence in Japan and elsewhere. But actually


we have not had any falling off a cliff moments today or any highly


volatile sessions yet. I know it is early days, 45 minutes into the


European date! 45 minutes and the FTSE 100 is up.


The authorities were saying that they have no policy of devaluing it.


They are going to keep it stable. They don't see the economy is headed


for a hard landing and it is growing at a respectable rate. Whether they


can fulfil both those two things remains to be seen, but the


statements in themselves were reassuring.


Thank you, Richard. He will be back in myself more minutes. More work to


do for Richard! We'll to hear


from a firm that calls itself the Silicon Valley of shipping


and a plan to build greener, wind powered cargo ships that


reduces fuel consumption You're with Business


Live from BBC News. As we mentioned earlier,


Europe's largest bank HSBC has decided to keep its headquarters


in the UK despite concerns about increased regulation


and the risk of a Brexit. Tanya Beckett is back


with us and joins us Nice to see you, Tanya. It was no


big surprise, was it, really? Yes. HSBC has been deliberating this move


for really sometime and some ten months and the feeling was that UK


was held to ransom because it was a big impact on the UK. It provides up


to about ?1 billion of revenues every year in just terms of the levy


it pays because it has an enormous balance sheet. It is Europe's


largest bank after all. But this was a bank that has its roots in the Far


East, in Asia, in 1865 it was set-up. So relatively short time in


the context of its history, but it hires a lot of people. 26,000 to be


precise and in the UK, there are 48,000 of those people, so although


it would have been costly for the bank to move, it would have been a


huge decision, it would have cost ?1.5 billion to do it. The feeling


is a little bit that it was very keen to lean on the Treasury here in


the UK, and try to get some concessions and where it has been


successful is certainly reducing the bank levy. It lobbied very, very


hard there. Also, of course, it is concern about the possibility of the


UK exiting the EU, but it says that it has large operations in France


and can fall back on those, but unquestionably what we have seen in


terms of the turmoil in China and of course, Japan, perhaps raises


questions about how stable the growth is that we have seen in the


Far East and therefore, perhaps, makes it less attractive, although


one would imagine that the short-term fluctuations wouldn't


really play into a long-term des, certainly they must colour the


picture. -- decision, but certainly, they


must colour the picture. A story that grabbed Alice's


attention because she was having an opposite story last week about


rents. Apparently, it slowed in the previous quarter, but that


north-south divide is still very much an issue.


Protests over the state of Europe's steel industry,


battered by a perfect storm of cheap Chinese imports,


Bosses of steel companies are marching on the European


Commission's head quarters for action.


Shipping is the life blood of the global economy.


Without the raw materials, food and manufactured goods


transported by sea, economies would grind to a halt.


Clearly, there's no doubt that the industry is a polluter,


but aircraft and lorries are far bigger emitters of CO2.


The sheer volume of sea cargo means there's a need


The Smart Green Shipping Alliance, the SGSA, calls itself


It's a pan-industry initiative to develop commercially


viable, environmentally-friendly vessels.


The Alliance is using technology, initially developed for high


performance yachts, to design a hybrid cargo ship


The high-tech design reduces fuel use by 50%.


This is important as the global shipping industry carries around 90%


Diane Gilpin is the Founder and Chief Executive


of the Smart Green Shipping Alliance.


Welcome to Business Live. Thank you very much. It sounds like a tall


order really to make this happen. Where did the idea first come into


being? I think, it is a tall order. We work clabtively and I think the


idea of wind at sea isn't exactly new. We have had thousands of years


of experience of propelling ships through the water using renewable


energy. In fact our world has been built on wind. My personal


experience comes from driving start up innovations. I worked for


Secretnet and I went to work in Formula One and what was really


interesting about that was the -- Cellnet. I move from Formula One


into yacht racing and there was no con daout for the experience,


expertise, technology that was being developed in yacht racing to go into


commercial shipping in the same way as it did from Formula One to


automotive. So, working also in renewable energy you start to think,


you know what, there is a lot of knowledge there. We can start to


transfer that technology. So that coupled with the very urgent need to


start looking at how we can reduce cost, reduce vulnerability, and


exposure to volatile fuel prices going into the future. A ship built


today, will last for 30 years. So, you know, the outcome that we expect


in Paris would mean that that ship would have to be net zero emissions.


Diane you have designed this hybrid cargo ship using technology that was


used for high performance yacht racing, but it is a tall order you


face as Sally was ind mating. At a time when we have a glut of ships in


the world compared to the amount of goods we need to ship and also at a


time of historically low oil prices, how receptive do you think the


industry will be to taking on more cost to building these new highly


developed ships in your blog from the Paris Climate talks, you talk


about selective deafness? It wasn't me that designed the ships. It was


one of the leading yacht designers. We work with Lloyds Register to


combine commercial shipping with the industrialised version of yacht


racing. But it is difficult and there are decenting voices. Change


is a difficult thing for a human being in any shape or form and I


think the shipping industry is no different to that, but having said


that, we work clabtively and we have got fantastic members of our


alliance who are working across the shipping structure. So we're working


on three separate, but interconnected work streams, we are


doflgt fast rig which is the technology to harness the power of


the wind. We're developing a big data analysis tool called Trade Wind


where we're working with the Met Office where we have 20, 30 years of


weather data. So we can predict how much free fuel we can harness. And


we're working with the finance commercial sector law. How we


reengineer the finance arrangements. So you have some extra, as you say,


Alice, extra upfront capital cost, and that's over a 30 year period.


You can start to put resilience and certainty back into the system and


it badly needs it. We appreciate your time. Thank you


for coming in from Smart Green Shipping Alliance.


We have to move on. The time is getting the better of us today.


Imagine clothing that improves your performance


We'll hear from the boss of high tech sportswear firm,


In a moment we'll take a look through the Business Pages but first


here's a quick reminder of how to get in touch with us.


The Business Live page is where you can stay ahead with the day's


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whenever you need to know. Richard is back. This story caught


our attention. City's top bankers could avoid UK rules. What's that


about? It is an interesting story. It has an echo of stories we were


talking about before a couple of weeks ago, how do you tax companies


which have operations across international borders. How do you


regulate companies? In particular for this one, should people who run


overseas operations of a bank, who are based in London, be subject to


the London regulatory rules or should they be regulated elsewhere?


What City is arguing they should be relegated elsewhere and not subject


to a new regime that's being introduced over the next month or


so. None of the other major banks are following suit, are they? No,


but they will be watching closely.


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