:00:00. > :00:08.This is Business Live from BBC News with Sally Bundock and Aaron
:00:09. > :00:12.Up for sale: Tata Steel says it plans
:00:13. > :00:14.to sell its loss-making business in the UK,
:00:15. > :00:18.putting thousands of steel jobs at risk.
:00:19. > :00:20.Live from London, that's our top story on Wednesday,
:00:21. > :00:40.Union leaders are calling for emergency talks
:00:41. > :00:42.with the British Prime Minister after Tata says trading conditions
:00:43. > :00:52.What now for Port Talbot and the UK steel industry?
:00:53. > :00:56.We'll be live to the Tata headquarters for the latest.
:00:57. > :00:57.Also in the programme.
:00:58. > :00:59.India's Prime Minister Narendra Modi is meeting with EU leaders
:01:00. > :01:02.in Brussels - the hope is trade talks can be re-energised.
:01:03. > :01:09.the US dollar is sinking and so is the price of oil -
:01:10. > :01:11.but markets across Europe have opened higher.
:01:12. > :01:13.We'll talk you through the winners and losers.
:01:14. > :01:16.And we talk to the man behind Ella's Kitchen -
:01:17. > :01:19.that's a UK-based baby food company which has become an international
:01:20. > :01:38.If you want to get in touch, we've love to hear from you.
:01:39. > :01:45.As ever, it's a packed show so let's get started.
:01:46. > :01:48.India's Tata Steel says it plans to sell its loss-making UK business,
:01:49. > :01:54.putting the jobs of thousands of workers at risk.
:01:55. > :01:57.Union leaders had travelled to Mumbai in a bid to persuade Tata
:01:58. > :02:00.too keep making steel at plants, including Port Talbot.
:02:01. > :02:03.The struggling steel works is estimated to be losing
:02:04. > :02:12.Tata says conditions have rapidly deteriorated due to the global
:02:13. > :02:13.oversupply of steel, high costs and currency volatility.
:02:14. > :02:17.Labour Member of Parliament Stephen Kinnock, whose constituency includes
:02:18. > :02:19.the Port Talbot plant, accompanied the union
:02:20. > :02:32.The indication was that the turnaround plan was not
:02:33. > :02:41.acceptable to the board and so then you have to look at other options.
:02:42. > :02:53.That's something that will move forward, I think,
:02:54. > :02:57.As we know the long products part of the business
:02:58. > :03:01.I think there's a lot of confidence that
:03:02. > :03:04.a buyer will be found and all of the options are now
:03:05. > :03:06.being explored and the European board of Tata Steel has
:03:07. > :03:14.Sameer Hashmi is in the BBC's Mumbai bureau.
:03:15. > :03:24.Good to see you. As you very well know, a huge story in Britain and a
:03:25. > :03:31.rather emotive story as well but for the company, this particular plant
:03:32. > :03:34.in Wales was losing nearly $1.5 million a day. I can only imagine
:03:35. > :03:38.the company and the board saying that they had no option, they can't
:03:39. > :03:46.keep running at those kind of losses. They have been toying with
:03:47. > :03:51.the idea for a while now. They took over the UK operations in 2007 after
:03:52. > :03:55.they bought Corus but they have struggled to make any kind of money
:03:56. > :03:59.from the beginning. It was the 2008 downturn and in the last few years,
:04:00. > :04:04.demand has fallen, global demand for steel. What has made operations
:04:05. > :04:07.really difficult for them and the market conditions really difficult
:04:08. > :04:10.are the cheap Chinese imports. If you talk to Tata Steel officials,
:04:11. > :04:14.they will tell you there's no way can compete with China. They will
:04:15. > :04:19.find it really difficult, even in the coming years, to find any new
:04:20. > :04:23.buyers which could help prop up the sales. And they also don't see
:04:24. > :04:30.demand for steel going up. If you look at the two main reasons behind
:04:31. > :04:34.that, you clearly realise that Tata Steel see no future in terms of
:04:35. > :04:38.making any kind of money when it comes to the UK and even Europe if
:04:39. > :04:42.you look at the big picture. I know the union leaders travel to Mumbai
:04:43. > :04:46.and they were there yesterday at headquarters and had all sorts of
:04:47. > :04:49.ideas and plans for restructuring. There is now talk that there would
:04:50. > :04:54.be a sale but also possibly the workforce might team up and try to
:04:55. > :05:01.buyout this part of the business. Various ideas being mooted now. Yes,
:05:02. > :05:04.there are all sorts of talks and options being considered. Will the
:05:05. > :05:12.UK Government intervene in some form? The Tatas have been talking to
:05:13. > :05:15.the government for a while with the government with some kind of rescue
:05:16. > :05:19.package coming in with the rules from the UK Government which is an
:05:20. > :05:23.option the Tatas have not closed entirely. Although they want to sell
:05:24. > :05:27.UK operations completely, they realise that realistically speaking,
:05:28. > :05:30.it won't be possible any time in the near future because of market
:05:31. > :05:34.conditions. Even a partial sale of the operations, some help from the
:05:35. > :05:39.UK Government or some other investor, they are looking at all
:05:40. > :05:42.the options. I think the key point is, they are not shutting operations
:05:43. > :05:48.but they have not given any clear timeline either as to when they are
:05:49. > :05:52.really going to wait until. That is the key question. If they don't find
:05:53. > :05:57.a buyer in the next year or so, or in the near future, what will they
:05:58. > :06:01.do? Wait longer? Could they go back to look at the whole option shutting
:06:02. > :06:06.it down again? That is the key question which is still unanswered.
:06:07. > :06:10.Thank you for joining us. That is the latest from the bike and there
:06:11. > :06:11.is so much detail online on this story. Take a look when you have
:06:12. > :06:13.time. Indian Prime Minister Narendra Modi
:06:14. > :06:17.is in Brussels to begin talks with EU leaders in an attempt
:06:18. > :06:20.to restart stalled negotiations Trade between the two is worth more
:06:21. > :06:27.than $81 billion a year. India would like to have greater
:06:28. > :06:30.access to the single market - particularly for its IT
:06:31. > :06:32.and out sourcing industries. particularly for its IT
:06:33. > :06:34.and outsourcing industries. While the EU would like to see heavy
:06:35. > :06:37.import duties on cars made Boeing says it will cut more
:06:38. > :06:47.than 4,500 jobs by June. The plane-maker says it's
:06:48. > :06:50.accelerating its cost-cutting The move comes despite record
:06:51. > :06:53.orders for Boeing's jets. The group has recently been losing
:06:54. > :06:56.market share to rival Airbus. More trouble for Brazil's
:06:57. > :06:59.President Dilma Rousseff. The PMDB, the largest party
:07:00. > :07:07.in the ruling coalition, has voted for an "immediate exit"
:07:08. > :07:09.from her government. The move could hasten
:07:10. > :07:10.impeachment proceedings against President Rousseff,
:07:11. > :07:12.who the opposition want to remove over claims she manipulated accounts
:07:13. > :07:20.to hide a growing deficit. The embattled president has now
:07:21. > :07:34.cancelled a trip to attend a summit She has got stuff to deal with at
:07:35. > :07:38.home. A lot on her plate. I very nicely did this, a lot on her plate
:07:39. > :07:51.and a lot of money on this man's plate. I'm trying to find him. Look
:07:52. > :07:57.at that, the Google boss, Sundar Pichai, got $100 million in his
:07:58. > :07:59.first year at the helm. I know it's a big company but seriously?
:08:00. > :08:03.Interesting to look back on their last 12 months and what they have
:08:04. > :08:07.achieved. Of the top of my head, I don't know if their earnings have
:08:08. > :08:10.been in those kind of figures. But if you were a Google shareholder and
:08:11. > :08:14.you knew he was paid that much, you would want to know you are getting
:08:15. > :08:22.value for money. It also just makes you think that we took the wrong
:08:23. > :08:24.path! Seriously. We have both been here a very long
:08:25. > :08:26.time. Let's take a look round the world
:08:27. > :08:28.at what's business stories China's big four state-run
:08:29. > :08:34.banks are set to report And it's not expected
:08:35. > :08:38.to be good news. Ashleigh Nghiem is
:08:39. > :08:46.in Singapore for us. This will give us an indication of
:08:47. > :08:52.their health or otherwise of the banks, right? That's right, it's a
:08:53. > :08:57.very different story to the Google boss! We had a bit of an idea
:08:58. > :09:01.yesterday with the data out from China's fifth largest bank, the Bank
:09:02. > :09:06.Of Communications where profits rose about 1% and we are likely to see
:09:07. > :09:11.the same sort of result from the big four lenders which report today and
:09:12. > :09:13.tomorrow. There profits are respected B-flat. The banks are
:09:14. > :09:18.owned by the Chinese garment and their main road was our other state
:09:19. > :09:21.owned enterprises. Chinese regulators last year flagged up that
:09:22. > :09:27.non-performing loans were at a 10-year high, at a whopping $195
:09:28. > :09:30.billion. They are trying to find ways for China's big banks to swap
:09:31. > :09:35.their debt to the shares. That is not going down very well. In the
:09:36. > :09:37.past 17 months, China's Central bank has cut interest rates six times
:09:38. > :09:44.which is limiting profits and squeezing the margins. So we must of
:09:45. > :09:46.course keep an eye out for the banks when they report and we will update
:09:47. > :09:49.you when we hear from China's four biggest banks.
:09:50. > :09:55.But now, the markets around the world and in Asia it was all about
:09:56. > :09:59.reaction to Janet Yellen, the US chair of the Federal Reserve, giving
:10:00. > :10:01.her speech about the state of the US economy and the global economy and
:10:02. > :10:06.what it means for future interest-rate decisions. So caution
:10:07. > :10:10.was the word from her. The dollar has gone down, the price of oil has
:10:11. > :10:14.gone down and also Japan went down because the yen strengthened
:10:15. > :10:17.significantly so goods made in Japan sold overseas are that much more
:10:18. > :10:21.extended to buy is a big players in Japan had a tough day. But elsewhere
:10:22. > :10:24.across the board in Asia, they were really pleased with what Janet
:10:25. > :10:29.Yellen had to say. Looking at markets across Europe, gains right
:10:30. > :10:31.across the board as well. Let's look head to the day on Wall Street as
:10:32. > :10:38.well with Michelle. The question this Wednesday is can
:10:39. > :10:43.the latest Janet Yellen rally last more than an after union? Federal
:10:44. > :10:46.Reserve J Janet Yellen gave what was widely interpreted as a dovish
:10:47. > :10:49.speech in New York on Tuesday which broke US stocks higher and the
:10:50. > :10:53.dollar lower. Wednesday's trading should give us a clue as to whether
:10:54. > :10:58.Janet Yellen has fundamentally shifted Wall Street's expectations
:10:59. > :11:02.or if that was just a blip. Elsewhere, traders can take a look
:11:03. > :11:06.at the payroll company ADP's gauge of the US job market and the
:11:07. > :11:10.government's data is likely to show that the economy is continuing to
:11:11. > :11:14.create jobs at a healthy pace, whatever slight worries about the
:11:15. > :11:17.outlook Janet Yellen may be feeling. There's also earnings from the
:11:18. > :11:26.world's biggest cruise operator, Carnival. Let's stay with the
:11:27. > :11:30.markets with Richard Hunter. I guess let's stick with what Michelle said,
:11:31. > :11:33.which is kind of the dominating factor at the moment, anyway, one
:11:34. > :11:39.big part of the market is Janet Yellen, the big boss of the American
:11:40. > :11:44.central bank. Not as gung ho as she was a few months ago, right? It
:11:45. > :11:49.remains the world's largest economy but there are still questions over
:11:50. > :11:54.China, let alone anywhere else. And so a lot of investors are looking to
:11:55. > :11:56.the US for comfort. This is why it is so important, whenever she stand
:11:57. > :12:02.up to speak, people are trying to read between the lines of what she
:12:03. > :12:10.is saying. Easy to read between the lines this time because she brought
:12:11. > :12:14.quite a bit of clarity. She did and the US markets were fairly positive
:12:15. > :12:16.overnight. One of the things is perhaps the US economy is now strong
:12:17. > :12:21.enough to withstand a further interest rate hike. Perhaps even
:12:22. > :12:26.when it comes, it is still going to be on a pretty gradual basis. She's
:12:27. > :12:29.not looking to deal rate -- to derail any recovery and sentiment
:12:30. > :12:33.has certainly improved since where we were in mid-February. The FTSE
:12:34. > :12:37.this morning, given the current games we are seeing, it is now down
:12:38. > :12:39.well under 1% in the year-to-date which is a rather different
:12:40. > :12:44.situation than we saw earlier in the year. Looking ahead to Friday, we
:12:45. > :12:51.used to say it is the all-important US jobs numbers, the payroll. But
:12:52. > :12:54.are we at a point now where the number is important but not as
:12:55. > :12:59.important as it used to be because we are looking at other things now
:13:00. > :13:03.like inflation and productivity. You are absolutely right, the 200,000
:13:04. > :13:07.headline figure that markets like disease seems to be entrenched. The
:13:08. > :13:11.unemployment rate is still clearly under control. It absolutely about
:13:12. > :13:14.productivity. When it starts to tighten, that is when we didn't get
:13:15. > :13:19.into some kind of inflation which is what everybody wants. When rates
:13:20. > :13:25.going up again in the US? Probably June. I'm going to write that down.
:13:26. > :13:26.You will come back and take us through the papers. We will see you
:13:27. > :13:29.shortly. Still to come. We hear from the man who setup
:13:30. > :13:32.a UK-based baby food company which has become
:13:33. > :13:33.an international hit. You're with Business
:13:34. > :13:37.Live from BBC News. Let's get more reaction to the news
:13:38. > :13:40.that India's Tata Steel is to sell its loss-making UK
:13:41. > :13:42.business, putting the jobs The UK and Welsh governments have
:13:43. > :13:49.said they are working "tirelessly" to ensure the future
:13:50. > :13:58.of the British steel industry, but unions say the once-proud
:13:59. > :14:00.industry is "on the verge Ben has been following this story
:14:01. > :14:10.this morning, and he's Good to see you, Ben, and also
:14:11. > :14:16.reports are suggesting that the government has not ruled out
:14:17. > :14:21.possible state control or something of that nature, right? Yes, it is
:14:22. > :14:24.very early days. The amounts and that we got overnight that the
:14:25. > :14:27.future is in doubt for the UK steel plants so big question is already
:14:28. > :14:32.about the future of the entire industry in the UK. The Port Talbot
:14:33. > :14:36.side, the biggest in the UK. To get a hint of about what might happen to
:14:37. > :14:40.it, we have to look to Scunthorpe because the Tata Steel plant their
:14:41. > :14:45.is currently on the table and a private equity firm is in talks to
:14:46. > :14:49.buy it. They would buy it and run it as a going concern. A lot of people
:14:50. > :14:57.looking at that is one option. No deal yet but they said the talks and
:14:58. > :15:00.progress is on track. But also questions about whether the
:15:01. > :15:02.government could get involved and whether there could be full
:15:03. > :15:07.nationalisation or if they could take an equity stake in it to try to
:15:08. > :15:11.prop it up with some cash. Already, questions about whether the current
:15:12. > :15:15.management at Port Talbot could do a management buyout, to run the
:15:16. > :15:18.business by injecting some cash and running it themselves. Lots of
:15:19. > :15:22.options on the table but the big question which is the most viable? I
:15:23. > :15:27.spoke to one expert at it earlier and this is what he told me.
:15:28. > :15:37.One obvious option would be for the government to buy it out right. That
:15:38. > :15:44.would have one great attraction. If they don't do that, the order book
:15:45. > :15:54.from Port Talbot words ever way to the other Tata plant. That would be
:15:55. > :16:00.one stop gap action. But in the longer run, a management buyout and
:16:01. > :16:07.workforce buyout, would be one option but somebody would have to be
:16:08. > :16:11.there with deep pockets. It is deep pockets they would need. It needs
:16:12. > :16:24.modernising and restructuring. Early days about what would happen, but
:16:25. > :16:31.the future of that is in doubt. Our top story today is Tata steel has
:16:32. > :16:35.decided it will put its UK operations up for sale. Thousands of
:16:36. > :16:41.steel jobs are hanging in the balance. A lot more on that online.
:16:42. > :16:45.Imagine quitting your job as a TV executive to setup your own company
:16:46. > :16:47.which becomes a global baby food brand in just a decade.
:16:48. > :16:50.Ella's Kitchen started life ten years ago and now enjoys an annual
:16:51. > :16:59.The company sells its products across 40 markets including the US,
:17:00. > :17:05.Paul Lindley trained as an accountant and worked his way
:17:06. > :17:08.up to being deputy managing director at Nickelodeon before deciding
:17:09. > :17:33.Great to have you. Thanks for all the baby food Ruddock 's, by the
:17:34. > :17:44.way. Not want! Let me ask you this, you set up this company to help
:17:45. > :17:50.tackle childhood obesity. I am not a father, but surrounded by lots of
:17:51. > :17:59.kids, this is baby food! The obesity problems is not with kids? It is,
:18:00. > :18:05.from the early stages if you introduce them to vegetables, then
:18:06. > :18:08.fruit and organic food from the very beginning, they will have that
:18:09. > :18:12.relationship for the rest of their lives with the food. It is what I
:18:13. > :18:16.started with, purpose and proffered together. Build a profitable
:18:17. > :18:23.business but also have a purpose behind it. Talk us through that
:18:24. > :18:30.journey. You were an accountant, then you are working at a kid's TV
:18:31. > :18:33.channel. He became a dad and have two children, then you start a
:18:34. > :18:38.business making food. How did you know it would become profitable
:18:39. > :18:45.eventually because you ploughed a lot of your savings into this? You
:18:46. > :18:48.don't know, because that is the risk. Entrepreneurs have to have a
:18:49. > :18:52.passion for what they do, a belief in what they are doing and the
:18:53. > :18:55.service they are providing. They have got to have some creativity.
:18:56. > :19:00.Otherwise everybody would be doing it. We created brand-new innovation
:19:01. > :19:05.in the packaging and made it different. The third thing is about
:19:06. > :19:11.the consumer and understanding the consumers as best as possible. That
:19:12. > :19:16.is what we did. You were quoted in an interview to Forbes magazine, you
:19:17. > :19:23.advise entrepreneurs to think like a toddler, what are you mean by that?
:19:24. > :19:30.So inspired by toddlers, they are all caught demographic and consumer.
:19:31. > :19:34.What they do, they look at the world with open eyes and they are not
:19:35. > :19:39.prejudiced by anything. They are more honest than we are as adults so
:19:40. > :19:45.they don't miss communicate. They are more creative and can think
:19:46. > :19:50.laterally. The world of toddlers, so much we could learn as an adult. We
:19:51. > :19:55.are writing a book about it and it will be published next year. If I
:19:56. > :20:00.could talk about Ella's Kitchen, the food products. I know it really
:20:01. > :20:06.well, I have three boys and it was great for me at the time when I was
:20:07. > :20:10.in a hurry and I wanted to feed my kids what I thought was healthy
:20:11. > :20:13.food. You package it really well, list what is in it, rockabilly,
:20:14. > :20:19.mashed potato and a bit of strawberry. Our use selling to the
:20:20. > :20:26.wrong set of parents, in the sense that the children that might perhaps
:20:27. > :20:32.struggle with issues of obesity and diabetes, or problems with food,
:20:33. > :20:36.might not necessarily be the middle-class, yummy mummies, who I
:20:37. > :20:43.know well that I using your products? About a third of our kids
:20:44. > :20:49.are overweight and 20% are obese. It covers all parts of society. Ella's
:20:50. > :20:52.Kitchen is sold in all supermarkets across the country and in 40
:20:53. > :20:57.countries around the world. We can't have the market share we have in the
:20:58. > :21:01.UK by just going to one demographic. But we do predominately sell our
:21:02. > :21:06.products across the range. There are parts of the country we don't reach.
:21:07. > :21:10.We use our credibility and influence what we have built up and out which
:21:11. > :21:13.two other areas. In Leicester, couple of years ago we had this
:21:14. > :21:20.project across a month where we gave free meals to kids at nurseries, we
:21:21. > :21:25.had dieticians in supermarkets to help people shop. We gave cooking
:21:26. > :21:29.lessons at food ranks in the Market Square. All designed to encourage a
:21:30. > :21:36.change in behaviour. We need a behaviour change in this country. To
:21:37. > :21:48.companies like you stop us from cooking? You make it too easy. We
:21:49. > :21:51.want to improve children's lives. We produce cookbooks about cooking from
:21:52. > :21:58.scratch, about the joy of encouraging your toddler to build a
:21:59. > :22:03.shopping list, have fun in the supermarket, get the food out of the
:22:04. > :22:06.oven when it is warm and they have cooked it. They are all involved
:22:07. > :22:14.together. Involving people from scratch is what we are about. We
:22:15. > :22:18.will have to leave it there, unfortunately, but we appreciate you
:22:19. > :22:24.coming in. So you are surrounded by kids, Aaron? Yes, lots of nieces and
:22:25. > :22:29.nephews. I thought you meant the people here.
:22:30. > :22:31.In a moment we'll take a look through the Business Pages but first
:22:32. > :22:35.here's a quick reminder of how to get in touch with us.
:22:36. > :22:41.The business live page is where you can stay ahead with the business
:22:42. > :22:46.news. We'll keep you up today with the details and analysis from
:22:47. > :22:53.editors around the world. We want to hear from you. Get Involved on the
:22:54. > :23:02.BBC business live web page. On Twitter... And you can find us on
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:23:14. > :23:29.False Lagan facing a 15 billion dollar hit over false advertising
:23:30. > :23:34.claim. ! Volts wagon. When the scandal of the emissions broke, one
:23:35. > :23:40.of the concerns investors had, wiped 40% of the share price quickly and
:23:41. > :23:46.over any period of time, a number of lawsuits would be coming through.
:23:47. > :23:52.It's not dissimilar to what we saw with BP and that took five or six
:23:53. > :23:57.years for the lawsuits to come through and this is one of those
:23:58. > :24:01.coming through in The States as what they consider misleading.
:24:02. > :24:06.There will be more. Someone trying to gauge the cost of this to a
:24:07. > :24:12.company, like we were, trying to total it up, we didn't hint it had a
:24:13. > :24:18.TV advertising campaign to cause people to sue. You are right, some
:24:19. > :24:23.of the speculation around the cumulative amount of the lawsuit
:24:24. > :24:28.that could be coming from all sorts of unexpected corners, could exceed
:24:29. > :24:34.the value of the company. That is one of the great unknown is that has
:24:35. > :24:41.been a concern. And also Volkswagon having problems with its electric
:24:42. > :24:49.them? Yes, fault in the batteries them? Yes, fault in the batteries
:24:50. > :24:55.that is making the car stalled. While it is driving, it could stall?
:24:56. > :25:00.Absolutely. It is a difficult time for Volkswagon. This time yesterday,
:25:01. > :25:05.we didn't make it on there because we were rolling with the unfolding
:25:06. > :25:12.drama in Larnaca airport in Cyprus where an aircraft was forced to land
:25:13. > :25:17.by what they thought was a hijacker. Didn't turn out to be, but it wasn't
:25:18. > :25:22.the mad bomber everybody thought. Here is this British guy who
:25:23. > :25:31.decides, I am going to take a quick photo with the bomber. What do you
:25:32. > :25:41.think? It has got to be a caption competition. Get me out of here! I
:25:42. > :25:44.am not a celebrity, get me of this claim.
:25:45. > :25:49.There will be more business news throughout the day on the BBC Live
:25:50. > :25:53.web page and on World Business Report.