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