08/03/2016 BBC Business Live


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This is Business Live from BBC News with Sally Bundock and Victoria


Two years on from the disappearance of flight MH370, has safety


We look at the facts as key players in the industry warn important


changes are not being made fast enough.


Live from London, that's our focus today -


Two years on since flight MH370 disappeared,


new global standards are announced for flight safety.


But it will take years before they come into force.


We ask, has enough been done to improve flight safety?


Also in the programme: The energy firm Npower says it's cutting almost


2400 jobs in the UK as it announces a loss of more than $150-million


And we've got the latest from the markets -


where China trade tumbles, the mood sours on stock markets


and traders wonder is the slowdown deepening?


And on International Woman's Day the head of the International


Monetary Fund Christine Lagarde speaks exclusively to


the BBC about lots of things


including her view on the UK's future in Europe.


Plus bonuses on Wall Street have fallen 27% in the last 10


years - the average bonus is now around $146,000.


Today we want to know, is this too high?


Do you feel for the bankers whose bonuses are declining?


Don't hold back, you know how to get in touch -


It's been two years since Malaysia Airlines flight


And, despite a $130 million search operation,


the aircraft has still not been found.


Many questions were raised at the time about flight safety -


The UN's aviation agency has adopted rules that aircrafts


in distress need to report their location every minute.


The idea is that it makes missing planes easier to find.


Those rules come into effect in 2021.


It has also approved plans to extend the life of the location beacons


But that, too, will take time - coming into force in 2018.


The US says by 2020 all aircraft in its airspace


will need to be fitted with a new type of satellite


tracking technology, but so far there's been no agreed


The head of the NTSB - America's crash investigation agency


- says he's concerned about the slow pace of progress,


in adopting new technologies - and that it's long overdue.


Independent aviation expert David Learmount is with us.


Why are these changes taking so long? Much of the demands are


extremely technologically demanding, such as making


sure that a black box that goes to the bottom of the sea can continue


to send its signal, it is much, much easier to say than to do. To keep it


in perspective, the airlines are voluntarily adopting a lot of the


technology that can be adopted, and they have already done it.


But none of the technology will prevent events happening. They are


all designed to enable us to find the wreckage,


case of MH370, after two years we still have not, and therefore to


learn what happened, and possibly if we are tracking the aircraft all the


time, if we had been tracking MH370 all the time, we might have been


able to save a few lives wherever it went down, and that of course


is a possibility. That technology is already here. Sorry to


interrupt, Sally. You are saying that even if these improvements come


into effect in the next few years, planes are not


going to be, in and of themselves, any safer? They will not be safer,


because the black-box recorder is easier to find. We will learn more


quickly what happened to the aircraft, we will even


find the aircraft more quickly. We will be able to improve, if


technology was involved in the failure, but increasingly nowadays


when aircraft go missing or have an accident it isn't technology.


Aircraft and engineering is getting so good now that it is usually human


factors, and there is not much you can do about that technology. And


where is it that planes are out of Because it is not won a plane is


overland, is it, but when they are over the


ocean? Mostly if they are overland, there are some wilderness or desert


areas where it would not be true that they would be on radar or some


other form of surveillance. It is over the host Yannick areas,


by and large, that the aircraft cannot be seen. -- the oceanic


areas. But technology has been adopted by a lot of airlines for


making sure the owners can track the aircraft at all times. Basically


they send out a pinger via satellite and the


agreement is that every 15 minutes you get an update of that aircraft's


position. We appreciate your time, thank you


for coming in and talking about that. It is a story that has been


covered extensively today on BBC world News Addis is the two-year


anniversary. -- as it is the two-year anniversary.


Energy firm Npower says it's cutting almost 2500 jobs,


more than a fifth of its UK workforce.


The German-owned firm made an operating loss of more


than $150-million last year and it warned billing issues


would lead to more problems this year.


The sportswear giant Nike has suspended its ties


with the tennis star Maria Sharapova, after she admitted


Energy firm Npower says it's cutting almost 2500 jobs,


The positive test was for meldonium - a substance she claims she has


been taking since 2006 for health issues.


Ms Sharapova is the world's highest paid female athlete.


And Japan's economy shrank less than previously thought in the last


Asia's number two economy contracted at an annualised rate of 1.1%.


This is a slight improvement on the previous estimate.


Japan has been trying to revive its flagging economy,


which has struggled with deflation for nearly 20 years.


programme, we will hear from some rising stars in business


including Christine Lagarde. This lady on the Business Live page,


Martha Lane Fox, who became very well-known in the UK many years ago


when she and another individual launched lastminute.com, which many


people bought would disappear very quickly when the dot-com bubble


burst, but it is still going strong. She is talking about the fact that


the percentage of women running or


involved in technology companies in the UK is less than the number of


women in parliament, which I found astounding


They say only about 17% of women work in tech, she says it is even


smaller in the venture capital world, 9% of the people she deals


with our women overall in that sector.


focus on China yet again, bad news from the world's number two economy.


Latest economic figures from China show that exports in February


plunged to their lowest level in six years.


Are they taking their cue from what has happened with trade figures?


They have, stocks fell before recovering before the close of trade


in China. Today the numbers were grim, exports fell by more than 25%


last month, compared that to about 11% in January, imports falling 14%,


cooling demand both at home and abroad, so this is reinforcing


worries that there is weakness in China's economy. It is worth


mentioning that the trade numbers have been affected by the lunar New


Year holiday when factory shut down for a week so businesses come to a


standstill. But economists say ultimately there is a deep malaise


in China's economy and its trading partners are affected so we see a


corresponding drop in their numbers as well. The question is what the


Chinese government will do to stimulate growth. When the leaders


gather in Beijing this week, we will keep a close eye on what their


economic plans are going to be. We certainly will, thank you.


They're tracking, as is often the case these days,


what's going on with the commodities markets.


Energy stocks across Asia were lower.


At one stage on Monday, Brent crude oil was trading at $41.04.


We're seeing oil come back from that point though.


Trading across Europe already low, the Footsie dragged down by mining


stocks. Michelle Fleury is our


correspondent in New York. Here she is, with America's


business agenda. Fears about the help of the US


economy have been overdone, the American stock market has broadly


speaking been in rally mode for the last few weeks and last Friday's


jobs report pointed to a growing Labour force. In a relatively light


week for economic data, one to watch this Tuesday is the national


Federation of Independent business is optimism report, investors pay


attention to this to see if small businesses are braving pay, and


early sign that wage growth across the economy may soon be coming. If


the labour market were overheating it would support the Federal


reserve's case for raising rates this year, but economists do not


expect America's Central Bank to make any move at its policy meeting


next week. On the earnings front, a sporting retailer will be announcing


its results, with its fortunes expected


to be lifted because of the bankruptcy of a rebel.


We are joined by Richard Hunter, independent market analyst.


Good taboo here. Do you feel the rated as an


independent?! Good to have you here, We could not reveal the numbers in


the screens, but it all headed south in Europe. A lot going on, safety is


back in passion today, and yet not that long ago I was saying it was


out of passion, everybody getting back into shares, the oil price


going down, today it is still above $40 a barrel. Yes, and the Dow Jones


finished slightly up yesterday, down about 2% on the year-to-date, which


compares to mid-February when it was down 10%. We know the European


markets have had a rally as well. It is probably too early to decide


whether we have turned a corner, a couple of things have changed over


the last few days which could be rather more positive. The market is


not going to go up in a straight line as we are seeing this morning


but on the one hand you have the five-year economic plan from China


over the weekend which implied, apart from an annual GDP growth of


6.5-7%, it implied a move away from manufacturing into a more consumer


the back burner which means the the back burner which means the


Chinese are focusing on growth. At the same time, another good set of


jobs figures from the state on Friday, 242,000 above expectations,


and the likelihood of a June interest rate hike in the States in


terms of the spread betters, if you like, has gone up to 50%. One of the


worries we have had in the year to date is slowing global growth and in


particular recession in the States, but those two latest indicators from


the two worlds largest economies are a pretty good mood. There is a lot


riding on the US. We will have you back here later to talk about the


papers. Still to come, Christine Lagarde


speaks exclusively to the BBC, giving her views on lots of


different things, including what the UK should do about its future in


Europe. This is Business Live from BBC News.


Npower, the British unit of German utility RWE,


has announced it will cut 2,400 out of 11,500 positions,


after it made an operating loss last year.


Joe Lynam has been following the story for us.


These jobs numbers coming in, they were widely trailed over the


weekend, more detail coming through today. How bad is the situation for


Europe and the energy prices that we are seeing?


Yes, we had the 2400 jobs -- we heard that 2400 jobs would be going,


the number touted at the weekend was 2500 so slightly better than we


expected. Losses for and power the 20 14th at around ?100 million, huge


loss -- losses the Npower in 2014. The last three months have got


progressively worse. It is the question of customer service, that


is the real issue for Npower. They had a poor reputation for customer


service and will find ?26 million by the regulator, Ofgem, in December


for treating customers unfairly. They say they have radically changed


things around and in their statement this morning


they said they would fundamentally change the business so it reflects


the needs of shareholders and customers. They put their hand up


and say it is going to be a huge task and would take a while, two


years with these job cuts to kick in. Let me show you the RW we share


price, you can see it has pretty much tracked the fall in oil prices


around the world but over the last three months it has stabilised bit


as oil you have been discussing, have also


stabilised. So Npower putting 2400 jobs, now confirmed.


Lots more about that story on the Business Live page, including this


story as well, Burberry shares doing well today.


Shares rising today on reports that we're going to be talking about in


our papers section with Richard about possible bid actually for the


company. Someone is building a stake in the firm at the moment. They


don't actually know who it is. So the search is on and Richard, our


markets guy who, is coming back, he says he has a Burberry tie.


Unfortunately he forgot to put it on today. Had he known, he would have


put it on! Our top story, two years


on from the disappearance Key players in the industry warn


important changes are not being made Today is International Women's Day


and all day we're going to be bringing you the thoughts of women


in business right across the world. She's the chief financial officer


of the Indian telecoms giant The company has one of the longest


undersea cable networks It stretches more than


500,000 kilometres. The company also owns the world's


only fibre optic ring Tata Communications has more


than 8,000 staff globally The BBC's Jamie Robertson caught up


with Pratibha Advani, to find out more about the business


and the obstacles facing women trying to rise to the top


of business in India. In all fairness I have to confess I


haven't found that women hit the glass ceiling. And really not faced


any obstacles so when I look back and reflect on my career journey, I


have worked with the large Indian conglomerate where the company


policies were so good. When I had my kids, I recall for almost a year I


was working half days. Haven't you just been lucky, do you think? Not


really. If you actually see some of the women in business in India for


example, a large private bank in India is headed by a woman. There is


another multinational bank in India whose CEO used to be a woman. So you


are seeing a lot of women rising up to the top positions in India. But


generally, for women, isn't it hard for them to rise up through the


ranks in a business in India? I would say from an organisation's


standing point, yes women are acceptable across all levels. But


what tends to happen, at mid-career level you start to see them dropping


out. So at the lower levels, you will see a lot of women. So almost


30%, 40% of the workforce would be women. But as they start to climb


the careers is when the dropping off starts to happen and I think that's


more an account of family pressure, the need to raise children and I


guess Indian men will still take some time to be equal partners. But


what can you do at the top of an organisation to help the process of


gender diversification? I think there is a lot of emphasis being


placed on organisations to drive gender diversity. Just leaving it to


corporations is not something I believe in. As a matter of fact, we


need to move on and become more gender neutral both at home as well


as an organisation. So you're putting the onus on society, not on


business? Business can't do very much, can it? Actually in India, the


biggest enemies for women are women themselves. You will find the


mother-in-law was always trying to badger the daughter-in-law. So


unless we start to educate women, and once you educate them, they're


going to see the need and realise the need for, you know, their


daughters and daurls to go out and work -- daughter in laws to go out


and create a place for themselves. Pratibha Advani there from Tata


Communications. Big players are being brought,


whether they like it or not, into the debate over whether Britain


should leave the European Union. Later today the Governor


of the Bank of England, Mark Carney, will be asked


about the Bank's preparations in the event of Britain's


departure from the EU. Meanwhile, the Managing Director


of the IMF, Christine Lagarde, says both the UK and the EU


would suffer if Britain decided The IMF boss told the BBC's Katy Kay


that any uncertainty surrounding Well, at the IMF we believe it is


critical that this situation be resolved as quickly as possible to


eliminate the uncertainty which is all negative for economic


circumstances and decision making processes. My intuition tells me


that outcome would be better for both the UK and Europe if it was a


positive one, in other words, if the UK was to stay, we are currently


working... You would prefer to see Britain stay? I would personally,


that's a personal preference, I would personally very much prefer to


see the UK stay in European Union, but I believe our economic findings


will strongly support that view that it would hurt both, the UK and the


EU if the UK was to go. We are working on that. We will be


delivering the results of our findings later on in the year, in


May. Before the referendum? Well, that's when our Article 4, the audit


of each large economy will be completed and we will come out


publicly in that respect, yes. Christine had a lot more to say to


Katy Kay, you can catch that interview full-on our website.


As promised, Richard the independent is back. It is a hot topic ta always


gets a big response from viewers bankers bonuses. We have had a few


tweets in. One viewer says, "The real question is should they be


deserved? No profit or still owning Government money. Therefore, no know


bus." We have got many more which are negative. Another viewer says,


"They are a great incentive to increase productivity. The higher


the better." Richard, your thought? The drop is no surprise. We are


talking about 2006 which was two years prior to the financial crisis


when the world was a different place. In terms of 2016 quite apart


fromle volatility that we have had in the intervening years in terms of


regulation, and general regulatory red tape, banks had to employ more


and more compliance people. That brings the average bonus down. There


has been as we have seen in the UK, the requirement to ring-fence the


retail and investment banking operations. All of these things, of


course, had an impact. This has been discussed in the financial times


today. Regulation is taking its toll on bonuses, the average bonus is


?146,200. Many argue they are getting the benefits, but it happens


through other means? What happens in investment banking is bonuses been


calculated as some percentage of the overall profit. Clearly, even the


investment banks in this day and age are not making the kind of money


they were making before and therefore, the percentages are lower


and not surprisingly the bonuses have drifted lower also.


On that story, I saw on the Evening Standard there is a big pay


disparity between men and women when it comes to bonuses in financial


services. However, I will move on. Let's talk about a story that's in


the Times and the Financial Times, Burberry is trying to find out the


identity of a mystery investor, they have built up a stake of 5% in the


group and shares today are rising? Yes, that's right. The potential of


any sort of M and A activity is something the market likes. Burberry


had a tough time of late. It has a large exposure to China where a lot


of the consumers are pulling their belts it. It shouldn't be too


difficult for Burberry to find out the identity of this individual or


individuals, there is disclosure rules. If your share holding goes up


to 3%, they can find out. The picture in the times is of


Christopher Bailey who is relatively new of Chief Executive as Burberry,


he is there with Cate Blanchett, he took over when the former Chief


Executive was head-hunted by Apple. Just to say, as it is international


women's day, a couple of years ago, as CEO of Burberry, she was the


highest paid CEO in the UK. So she was not only a FTSE 100 chief, the


highest paid FTSE 100 chief sthnchts yeah, that's right and Burberry had


a very good few years of it. What about since she left? There were a


lot of questions... That's been more difficult. Not so much in terms of


his particular background which is more on the sort of design side, but


also of course, given Burberry's exposure to Asia and China in


particular, they have had a slightly rockier ride. The flip side of that,


of course, is Japanese and Chinese tourists haven't been coming to


Europe so much and that was another big area for Burberry as well. They


have had a tricky time. Yeah, that's it from Business Live


for today. There will be more business news


throughout the day on the BBC Live webpage and on World Business


Report. Zblel Hello, the weather is chopping


and changing a fair bit through the rest of this week. It has been a


cold start, but it should be milder by the end, this morning, we were


well below freezing for


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