30/03/2016 BBC Business Live


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


Up for sale: Tata Steel says it plans


to sell its loss-making business in the UK,


putting thousands of steel jobs at risk.


Live from London, that's our top story on Wednesday,


Union leaders are calling for emergency talks


with the British Prime Minister after Tata says trading conditions


What now for Port Talbot and the UK steel industry?


We'll be live to the Tata headquarters for the latest.


Also in the programme.


India's Prime Minister Narendra Modi is meeting with EU leaders


in Brussels - the hope is trade talks can be re-energised.


the US dollar is sinking and so is the price of oil -


but markets across Europe have opened higher.


We'll talk you through the winners and losers.


And we talk to the man behind Ella's Kitchen -


that's a UK-based baby food company which has become an international


If you want to get in touch, we've love to hear from you.


As ever, it's a packed show so let's get started.


India's Tata Steel says it plans to sell its loss-making UK business,


putting the jobs of thousands of workers at risk.


Union leaders had travelled to Mumbai in a bid to persuade Tata


too keep making steel at plants, including Port Talbot.


The struggling steel works is estimated to be losing


Tata says conditions have rapidly deteriorated due to the global


oversupply of steel, high costs and currency volatility.


Labour Member of Parliament Stephen Kinnock, whose constituency includes


the Port Talbot plant, accompanied the union


The indication was that the turnaround plan was not


acceptable to the board and so then you have to look at other options.


That's something that will move forward, I think,


As we know the long products part of the business


I think there's a lot of confidence that


a buyer will be found and all of the options are now


being explored and the European board of Tata Steel has


Sameer Hashmi is in the BBC's Mumbai bureau.


Good to see you. As you very well know, a huge story in Britain and a


rather emotive story as well but for the company, this particular plant


in Wales was losing nearly $1.5 million a day. I can only imagine


the company and the board saying that they had no option, they can't


keep running at those kind of losses. They have been toying with


the idea for a while now. They took over the UK operations in 2007 after


they bought Corus but they have struggled to make any kind of money


from the beginning. It was the 2008 downturn and in the last few years,


demand has fallen, global demand for steel. What has made operations


really difficult for them and the market conditions really difficult


are the cheap Chinese imports. If you talk to Tata Steel officials,


they will tell you there's no way can compete with China. They will


find it really difficult, even in the coming years, to find any new


buyers which could help prop up the sales. And they also don't see


demand for steel going up. If you look at the two main reasons behind


that, you clearly realise that Tata Steel see no future in terms of


making any kind of money when it comes to the UK and even Europe if


you look at the big picture. I know the union leaders travel to Mumbai


and they were there yesterday at headquarters and had all sorts of


ideas and plans for restructuring. There is now talk that there would


be a sale but also possibly the workforce might team up and try to


buyout this part of the business. Various ideas being mooted now. Yes,


there are all sorts of talks and options being considered. Will the


UK Government intervene in some form? The Tatas have been talking to


the government for a while with the government with some kind of rescue


package coming in with the rules from the UK Government which is an


option the Tatas have not closed entirely. Although they want to sell


UK operations completely, they realise that realistically speaking,


it won't be possible any time in the near future because of market


conditions. Even a partial sale of the operations, some help from the


UK Government or some other investor, they are looking at all


the options. I think the key point is, they are not shutting operations


but they have not given any clear timeline either as to when they are


really going to wait until. That is the key question. If they don't find


a buyer in the next year or so, or in the near future, what will they


do? Wait longer? Could they go back to look at the whole option shutting


it down again? That is the key question which is still unanswered.


Thank you for joining us. That is the latest from the bike and there


is so much detail online on this story. Take a look when you have


time. Indian Prime Minister Narendra Modi


is in Brussels to begin talks with EU leaders in an attempt


to restart stalled negotiations Trade between the two is worth more


than $81 billion a year. India would like to have greater


access to the single market - particularly for its IT


and out sourcing industries. particularly for its IT


and outsourcing industries. While the EU would like to see heavy


import duties on cars made Boeing says it will cut more


than 4,500 jobs by June. The plane-maker says it's


accelerating its cost-cutting The move comes despite record


orders for Boeing's jets. The group has recently been losing


market share to rival Airbus. More trouble for Brazil's


President Dilma Rousseff. The PMDB, the largest party


in the ruling coalition, has voted for an "immediate exit"


from her government. The move could hasten


impeachment proceedings against President Rousseff,


who the opposition want to remove over claims she manipulated accounts


to hide a growing deficit. The embattled president has now


cancelled a trip to attend a summit She has got stuff to deal with at


home. A lot on her plate. I very nicely did this, a lot on her plate


and a lot of money on this man's plate. I'm trying to find him. Look


at that, the Google boss, Sundar Pichai, got $100 million in his


first year at the helm. I know it's a big company but seriously?


Interesting to look back on their last 12 months and what they have


achieved. Of the top of my head, I don't know if their earnings have


been in those kind of figures. But if you were a Google shareholder and


you knew he was paid that much, you would want to know you are getting


value for money. It also just makes you think that we took the wrong


path! Seriously. We have both been here a very long


time. Let's take a look round the world


at what's business stories China's big four state-run


banks are set to report And it's not expected


to be good news. Ashleigh Nghiem is


in Singapore for us. This will give us an indication of


their health or otherwise of the banks, right? That's right, it's a


very different story to the Google boss! We had a bit of an idea


yesterday with the data out from China's fifth largest bank, the Bank


Of Communications where profits rose about 1% and we are likely to see


the same sort of result from the big four lenders which report today and


tomorrow. There profits are respected B-flat. The banks are


owned by the Chinese garment and their main road was our other state


owned enterprises. Chinese regulators last year flagged up that


non-performing loans were at a 10-year high, at a whopping $195


billion. They are trying to find ways for China's big banks to swap


their debt to the shares. That is not going down very well. In the


past 17 months, China's Central bank has cut interest rates six times


which is limiting profits and squeezing the margins. So we must of


course keep an eye out for the banks when they report and we will update


you when we hear from China's four biggest banks.


But now, the markets around the world and in Asia it was all about


reaction to Janet Yellen, the US chair of the Federal Reserve, giving


her speech about the state of the US economy and the global economy and


what it means for future interest-rate decisions. So caution


was the word from her. The dollar has gone down, the price of oil has


gone down and also Japan went down because the yen strengthened


significantly so goods made in Japan sold overseas are that much more


extended to buy is a big players in Japan had a tough day. But elsewhere


across the board in Asia, they were really pleased with what Janet


Yellen had to say. Looking at markets across Europe, gains right


across the board as well. Let's look head to the day on Wall Street as


well with Michelle. The question this Wednesday is can


the latest Janet Yellen rally last more than an after union? Federal


Reserve J Janet Yellen gave what was widely interpreted as a dovish


speech in New York on Tuesday which broke US stocks higher and the


dollar lower. Wednesday's trading should give us a clue as to whether


Janet Yellen has fundamentally shifted Wall Street's expectations


or if that was just a blip. Elsewhere, traders can take a look


at the payroll company ADP's gauge of the US job market and the


government's data is likely to show that the economy is continuing to


create jobs at a healthy pace, whatever slight worries about the


outlook Janet Yellen may be feeling. There's also earnings from the


world's biggest cruise operator, Carnival. Let's stay with the


markets with Richard Hunter. I guess let's stick with what Michelle said,


which is kind of the dominating factor at the moment, anyway, one


big part of the market is Janet Yellen, the big boss of the American


central bank. Not as gung ho as she was a few months ago, right? It


remains the world's largest economy but there are still questions over


China, let alone anywhere else. And so a lot of investors are looking to


the US for comfort. This is why it is so important, whenever she stand


up to speak, people are trying to read between the lines of what she


is saying. Easy to read between the lines this time because she brought


quite a bit of clarity. She did and the US markets were fairly positive


overnight. One of the things is perhaps the US economy is now strong


enough to withstand a further interest rate hike. Perhaps even


when it comes, it is still going to be on a pretty gradual basis. She's


not looking to deal rate -- to derail any recovery and sentiment


has certainly improved since where we were in mid-February. The FTSE


this morning, given the current games we are seeing, it is now down


well under 1% in the year-to-date which is a rather different


situation than we saw earlier in the year. Looking ahead to Friday, we


used to say it is the all-important US jobs numbers, the payroll. But


are we at a point now where the number is important but not as


important as it used to be because we are looking at other things now


like inflation and productivity. You are absolutely right, the 200,000


headline figure that markets like disease seems to be entrenched. The


unemployment rate is still clearly under control. It absolutely about


productivity. When it starts to tighten, that is when we didn't get


into some kind of inflation which is what everybody wants. When rates


going up again in the US? Probably June. I'm going to write that down.


You will come back and take us through the papers. We will see you


shortly. Still to come. We hear from the man who setup


a UK-based baby food company which has become


an international hit. You're with Business


Live from BBC News. Let's get more reaction to the news


that India's Tata Steel is to sell its loss-making UK


business, putting the jobs The UK and Welsh governments have


said they are working "tirelessly" to ensure the future


of the British steel industry, but unions say the once-proud


industry is "on the verge Ben has been following this story


this morning, and he's Good to see you, Ben, and also


reports are suggesting that the government has not ruled out


possible state control or something of that nature, right? Yes, it is


very early days. The amounts and that we got overnight that the


future is in doubt for the UK steel plants so big question is already


about the future of the entire industry in the UK. The Port Talbot


side, the biggest in the UK. To get a hint of about what might happen to


it, we have to look to Scunthorpe because the Tata Steel plant their


is currently on the table and a private equity firm is in talks to


buy it. They would buy it and run it as a going concern. A lot of people


looking at that is one option. No deal yet but they said the talks and


progress is on track. But also questions about whether the


government could get involved and whether there could be full


nationalisation or if they could take an equity stake in it to try to


prop it up with some cash. Already, questions about whether the current


management at Port Talbot could do a management buyout, to run the


business by injecting some cash and running it themselves. Lots of


options on the table but the big question which is the most viable? I


spoke to one expert at it earlier and this is what he told me.


One obvious option would be for the government to buy it out right. That


would have one great attraction. If they don't do that, the order book


from Port Talbot words ever way to the other Tata plant. That would be


one stop gap action. But in the longer run, a management buyout and


workforce buyout, would be one option but somebody would have to be


there with deep pockets. It is deep pockets they would need. It needs


modernising and restructuring. Early days about what would happen, but


the future of that is in doubt. Our top story today is Tata steel has


decided it will put its UK operations up for sale. Thousands of


steel jobs are hanging in the balance. A lot more on that online.


Imagine quitting your job as a TV executive to setup your own company


which becomes a global baby food brand in just a decade.


Ella's Kitchen started life ten years ago and now enjoys an annual


The company sells its products across 40 markets including the US,


Paul Lindley trained as an accountant and worked his way


up to being deputy managing director at Nickelodeon before deciding


Great to have you. Thanks for all the baby food Ruddock 's, by the


way. Not want! Let me ask you this, you set up this company to help


tackle childhood obesity. I am not a father, but surrounded by lots of


kids, this is baby food! The obesity problems is not with kids? It is,


from the early stages if you introduce them to vegetables, then


fruit and organic food from the very beginning, they will have that


relationship for the rest of their lives with the food. It is what I


started with, purpose and proffered together. Build a profitable


business but also have a purpose behind it. Talk us through that


journey. You were an accountant, then you are working at a kid's TV


channel. He became a dad and have two children, then you start a


business making food. How did you know it would become profitable


eventually because you ploughed a lot of your savings into this? You


don't know, because that is the risk. Entrepreneurs have to have a


passion for what they do, a belief in what they are doing and the


service they are providing. They have got to have some creativity.


Otherwise everybody would be doing it. We created brand-new innovation


in the packaging and made it different. The third thing is about


the consumer and understanding the consumers as best as possible. That


is what we did. You were quoted in an interview to Forbes magazine, you


advise entrepreneurs to think like a toddler, what are you mean by that?


So inspired by toddlers, they are all caught demographic and consumer.


What they do, they look at the world with open eyes and they are not


prejudiced by anything. They are more honest than we are as adults so


they don't miss communicate. They are more creative and can think


laterally. The world of toddlers, so much we could learn as an adult. We


are writing a book about it and it will be published next year. If I


could talk about Ella's Kitchen, the food products. I know it really


well, I have three boys and it was great for me at the time when I was


in a hurry and I wanted to feed my kids what I thought was healthy


food. You package it really well, list what is in it, rockabilly,


mashed potato and a bit of strawberry. Our use selling to the


wrong set of parents, in the sense that the children that might perhaps


struggle with issues of obesity and diabetes, or problems with food,


might not necessarily be the middle-class, yummy mummies, who I


know well that I using your products? About a third of our kids


are overweight and 20% are obese. It covers all parts of society. Ella's


Kitchen is sold in all supermarkets across the country and in 40


countries around the world. We can't have the market share we have in the


UK by just going to one demographic. But we do predominately sell our


products across the range. There are parts of the country we don't reach.


We use our credibility and influence what we have built up and out which


two other areas. In Leicester, couple of years ago we had this


project across a month where we gave free meals to kids at nurseries, we


had dieticians in supermarkets to help people shop. We gave cooking


lessons at food ranks in the Market Square. All designed to encourage a


change in behaviour. We need a behaviour change in this country. To


companies like you stop us from cooking? You make it too easy. We


want to improve children's lives. We produce cookbooks about cooking from


scratch, about the joy of encouraging your toddler to build a


shopping list, have fun in the supermarket, get the food out of the


oven when it is warm and they have cooked it. They are all involved


together. Involving people from scratch is what we are about. We


will have to leave it there, unfortunately, but we appreciate you


coming in. So you are surrounded by kids, Aaron? Yes, lots of nieces and


nephews. I thought you meant the people here.


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 business


news. We'll keep you up today with the details and analysis from


editors around the world. We want to hear from you. Get Involved on the


BBC business live web page. On Twitter... And you can find us on


Facebook... Business live on TV and online whenever you need to know.


False Lagan facing a 15 billion dollar hit over false advertising


claim. ! Volts wagon. When the scandal of the emissions broke, one


of the concerns investors had, wiped 40% of the share price quickly and


over any period of time, a number of lawsuits would be coming through.


It's not dissimilar to what we saw with BP and that took five or six


years for the lawsuits to come through and this is one of those


coming through in The States as what they consider misleading.


There will be more. Someone trying to gauge the cost of this to a


company, like we were, trying to total it up, we didn't hint it had a


TV advertising campaign to cause people to sue. You are right, some


of the speculation around the cumulative amount of the lawsuit


that could be coming from all sorts of unexpected corners, could exceed


the value of the company. That is one of the great unknown is that has


been a concern. And also Volkswagon having problems with its electric


them? Yes, fault in the batteries them? Yes, fault in the batteries


that is making the car stalled. While it is driving, it could stall?


Absolutely. It is a difficult time for Volkswagon. This time yesterday,


we didn't make it on there because we were rolling with the unfolding


drama in Larnaca airport in Cyprus where an aircraft was forced to land


by what they thought was a hijacker. Didn't turn out to be, but it wasn't


the mad bomber everybody thought. Here is this British guy who


decides, I am going to take a quick photo with the bomber. What do you


think? It has got to be a caption competition. Get me out of here! I


am not a celebrity, get me of this claim.


There will be more business news throughout the day on the BBC Live


web page and on World Business Report.


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