04/04/2016 BBC Business Live


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This is Business Live from BBC News with Ben Thompson


The UK Government vows to offer financial support


to find a buyer for Tata Steel's UK plants,


but stops short of offering a clear plan to save the industry.


Live from London, that's our top story on Monday 4th April.


As the future of Britain's steel businesses hangs in the balance,


Europe also warns of heavy job losses amid a flood of cheap


Exposing the offshore tax havens -


a massive leak of documents from a law firm in Panama lifts


the lid on where the rich and powerful are hiding their wealth.


And markets are looking like this in early trade in Europe.


In the wake of recent terror attacks in Europe,


what impact does it have on the travel and tourism industry?


The boss of luxury hotel group Rosewood will be here.


And as one magazine says it's raising its price but ditching


adverts, we want to know would you pay more for your


newspapers and magazines if they got rid of the adverts?


Let us know, use the hashtag #BBCBizLive.


The UK Government says it is willing to offer support to find a buyer


for the Port Talbot steel works in South Wales.


Last week Tata Steel announced it was selling


Reports say that Indian tycoon Sanjeev Gupta wants to hold talks


with the Government about a possible purchase.


But it's not just the UK steel industry that's struggling.


Across Europe 320,000 people work in the industry


and the European Steel Association says thousands of jobs have been


More than 166-million tonnes of steel were made


Germany is the biggest producer, followed by Italy, France,


But steel plants say not enough is being done to protect them


from cheaper Chinese imports and are now pushing for higher


tariffs to be levied on those imports.


Charles de Lusignan is a spokesperson from


You represent European steel production, how do you think the


situation in the UK differs to Europe right now, because there is


trouble everywhere, isn't there? Yes, it is mainly the case that the


UK is in the first line when it comes to difficulties being faced by


the EU steel industry, this is because of a combination of factors.


They have high environmental costs, high business rates, and the


strength of the pound, when compared to the URL, means that the UK is


particularly exposed, but the problems are generalised, the


challenges faced by the entire EU, so where we see seven or 8000 jobs


lost in the last nine months or so, a good couple of thousand of these


are also from places such as France, Spain and Scandinavia. Absolutely,


there is a lot of steel exported and made in Europe, and a lot of it


exported to China. How much do you think China is to blame for the


problems we are seeing in Europe right now? The Chinese dumping is


certainly the largest, Chinese imports into the EU represents the


largest share of imports from any country outside of the EU. Chinese


dumping is extreme, volumes have gone from 3 million in 2013 to 4.5


million in 2014 to 7 million last year, we expect that to rise. Prices


have collapsed by 40% in the last year, this is an extreme case of


dumping across a range of product categories, and the effect this is


having is to depress prices across the EU, and this is where Port


Talbot sees a particular issue, but it is a case that applies to all EU


steel, that, while the bobbins themselves are not the largest, we


still use 150 million tonnes of steel year so you are talking a


small fraction, the price pressure on


sales when you sell the steel means that you are potentially operating


at unsustainable economic levels. How can Europe hope to compete when


that cheaper Chinese still have such an effect on the


market? Is there a way to compete with China? It is important to be


clear that Europe is still competitive to other countries. The


steel from China is unsustainably low priced,


it is dumped, sold and sent over here at less


than the cost of production, classic dumping, so when we complain of


cases of dumping, which is on specific


product categories, we have evidence to show that it is being produced at


less than it costs them to make it, and that is the


issue at play, they are selling at less than it costs to make it in


order to bulk up their exports at a time of slowing growth and massive


overcapacity in their own sector. OK, thank you for joining us.


The leak of 11-million confidential documents from a Panamanian law


firm has revealed the extent to which the world's rich


and powerful use tax havens to hide their wealth.


The documents, some seen by the BBC, show how clients were helped


to launder money, dodge sanctions, and evade tax.


The law firm at the centre of the revelations,


Mossack Fonseca, says it's operated beyond reproach for 40 years,


and has never been accused or charged with wrong-doing.


Here's our special correspondent Richard Bilton.


Panama's carnival attracts visitors from around the world.


But, away from the lights, this place is a thriving tax haven.


Investors come to Panama for secrecy.


You can go to Panama and you can get a foundation,


or a trust or a company, and you can use those complicated,


slightly strange structures to hide and disguise your ownership


An enormous leak of files from this company, Mossack Fonseca,


From outside, Mossack Fonseca looks like a perfectly respectable


company, but this is a business that's helped people from around


Suddeutsche Zeitung and shared with the International Consortium


Panorama has been analysing the documents.


We found links to 72 current or former heads of state.


Like the Icelandic Prime Minister Sigmundur Gunnlaugsson,


who had a secret stake in an offshore company.


The company held his wife's interests in Iceland's banks,


Nobody knew that when her husband was dealing with the Icelandic banks


after their collapse - including the British demands


for compensation, which he turned down.


He walked out when questioned by an Icelandic reporter.


Mr Gunnlaugsson is today facing calls for his resignation.


He says he has not broken any rules and his wife did not benefit


Mossack Fonseca say the services they provide are commonly used


worldwide and they are responsible members of the global financial


But some of the deals in the files are extraordinary.


We believe we have found a billion-dollar laundering


This man, cellist Sergei Roldugin - a close friend of President Putin -


was officially the owner of two secretive companies which benefited


For example, an offshore company borrows $6 million.


Three months later, the loan is written off for just $1.


Why would anyone want to give all this cash to a cellist?


There is nothing that I have seen that would make me do anything


other than say, "Stop, we need to investigate very closely


To you, does it look like money-laundering?


Yes, it does look like money-laundering to me, for sure.


Mr Roldugin hasn't answered our questions.


Mossack Fonseca say they have a strong compliance record.


Through the leak, the world can now see more clearly how the wealthy can


And if you're watching in the UK, you can see more on this story


Global viewers watching us right now on BBC World News,


check your local listings for when it's showing


The IMF's Christine Lagarde has warned that a new deal on Greece's


The comments were made in a letter to Prime Minister Alexis Tsipras.


Greece and its EU and IMF lenders are due to resume talks this week


to conclude a review of the country's bailout.


Iran says its oil exports have reached 2-million barrels a day,


following the lifting of sanctions in January.


The country says it won't take part in a meeting later this month


in Doha where freezing output will be discussed.


Iran has previously said it wants to increase production until it


than than 270,000 pre-orders for the new Model 3 electric vehicle.


The California-based firm unveiled the five-seater car on Thursday.


Potential owners need to put down $1000 deposits


And I'm sitting next to one of them. I wish!


You are not a card guy, really. Let's have a look at the stories


making the headlines on our website. Oil is very much on the minds of


investors today, if you can see the story here, or oil prices have


dropped yet again. The reason for this, Saudi Arabia, it said it will


only participate in global production freeze if Iran also takes


part, but Iran is not going to play ball.


As we heard in the round-up, some of the stories affecting Enron, after


sanctions were lifted on the country it is keen to get its oil and gas


exports back up so does not want to take part in a freeze that many


hoped would raise the price. Let's check in on


the market numbers. Jeremy Stretch is with us,


he's head of FX strategy at CIBC. Lots to talk about, let's start with


the US, all eyes on what the US will do. What is happening? It is the


case that it is the leader in terms of Monetary Policy Committee high in


first-rate direction. We saw the labour market data on Friday in the


US continued to show the US economy continues to generate good levels of


jobs growth, also signs of a pick-up in average earnings, said that has


implications for where markets will interpret US interest rates are


likely to move, and that has implications for other interest


rates markets but also for how equity markets will perform as well,


so all eyes will be on the US, particularly into the minutes from


the last meeting from the Federal Reserve this week, when they changed


their outlook, so that'll be something for investors to focus on.


What will investors want to see from the minutes? They will want some


degree of recognition as to why the Reserve changed its position so


markedly from December to March. We have seen global uncertainty through


that period, equity markets falling dramatically in January and


February, subsequently bouncing back, so investors will look to try


to determine where the Fed will be going and we have seen some


aggressive talk from Janet Yellen, the chair of the Federal Reserve,


last week, underlining the fact that the Federal Reserve, in her opinion,


have a lot of barriers to some degree of movement of interest rates


beyond what we saw in December. Let's talk about


oil, falling again as we touched on that. There is a danger that we get


too caught up on the oil market, that it actually has very little


bearing on reality. It is beer, expectation, dissipation, but there


is a correlation between oil prices and what everybody is thinking about


the state of the economy? That is true, and it has been elevated in


the first quarter of this year as investors have produced their


assumptions of global growth, which has played into negative demand and


expectations on the oil price site and when we see the supplied that


you have talked about in terms of Iran, it adds to that. It calls oil


markets to trade lower through the first part of this year and that had


negative feedback in equity markets and general sentiment. We need to


see some degree of stabilisation in terms of the demand and supply


balance, unfortunately that is why the upcoming meeting in Gauhar is


important, because of course as you correctly said Saudi Arabia do not


want to see their market share lost to Iran, and it undermines the


geopolitical tensions that impact on the oil price, which then comes back


to investor sentiment globally. OK, thank you, I know he will come back


and talk to us about the papers in a little while.


Still to come: Tourism in the face of terrorism.


How do international security fears change our willingness to travel,


and how is the industry weathering the storm?


The boss of global hotel chain Rosewood will be with us later


in the programme as it plans a rapid global expansion.


You're with Business Live from BBC News.


Homeowners living in areas at risk of flooding should be able


to save hundreds of pounds on their insurance premiums from today.


A new scheme called Flood Re has been designed to cut the cost


of insurance for those whose homes are at risk rather than having


to pay a large additional premium to make sure their homes


Let's speak to insurance specialist Louise Claro from Circle Insurance.


What has been announced? Basically, there will be 17 insurers who will


be offering this to start off with. The insurance industry, effectively,


is going to collect premiums off all householders, probably ?10.50 per


household that's insured and what's going to happen is that money is


going to be shunted into a special fund. It will be a levy and that


levy which is expected to raise about ?180 million will be used to


effectively fund flood risks that come to light as a result of claims.


They have They have been restricted and people had high premiums.


We think it will affect 350,000 households. 350,000, but not


everybody who sat risk risk will be able to get it? Businesses, they


were massively hit. We have got claims going through. Huge flood


damage and they won't be covered. It will be householders and tenants of


properties as well. Now, it means that the excesses in some cases I


have heard reports of people having to pay an excess of up to 10,000 or


?20,000, normal householders can't afford to write that cheque out if


they have an insurance claim, but we think that premiums could, they are


being reported come down to as little as ?250 which is more in line


with what you'd expect from a household insurance policy. Louise,


thank you very much. Interesting comparison between the


retail industry and the steel industry and what jobs are


considered important. Thousands of jobs have been lost in


the steel industry across Europe as a result of cheap Chinese imports.


We are staying across that story for you on the BBC.


The recent terrorist attacks in Brussels,


Paris and Istanbul have taken their toll on travel


Hotels, airlines and train companies have all reported a slowdown


in visitor numbers and a rise in cancellations.


And what can it do to reassure travellers?


Well, our next guest is the boss of global hotel giant Rosewood.


The firm was founded in 1979 and now operates 55 hotels in 18 countries.


The Hong-Kong based company has a strong US presence after a merger


in 2011 and runs more than 2,000 hotel rooms worldwide.


Radha Arora is the president of Rosewood.


Lovely to meet you. Thank you for coming to talk to us. Let's cover


the terrorism aspect because I'm sure it is playing on many hotel


companies minds across the world. How big an impact have the recent


terrorist attacks and events that we have seen worldwide had on business


and how does one deal with it? Well, in answer to your first question we


have not had a scale back. People are becoming more and more resilient


in the face of terrorism. It is unfortunate that it continues to


happen and I lived through the IRA bombings back in the 70s and the 80s


here and we found ourselves to be resilient. So what is happening is


that people are cautious. It is our obligation to work with the local


communities to mitigate that risk. And we adhere to the responses that


we have had from the companies and as I said, our obligation is to take


care of them and make it a safe haven. What can you do to reashire


to people that the country they are coming to, the hotel they are


staying at will be safe and that they need not change their travel


plans? Well, we continue to through our website we continue to mention


the fact that it is a safe haven. Some of the destination that is we


have our properties in are resort destinations. We are not in loads of


risk affected destinations. If you go to Mexico, the Caribbean,


Antigua, from London and we know London is a safe, is the safest


airport in the world to travel from. So that's always there. But again,


as I said, we work with the local communities and local governments to


mitigate that risk and when people ask us those questions we will


reassure them. Let's talk about Rosewood. You have


many luxury high end hotels across the world. You have a big presence


in America. You are well-known there, perhaps not so much in Europe


and in London. What are you doing to change that? What are your expansion


plans? Well, the company was founded in Dallas many years ago. There is a


whole sense of mantra that we use is very different, very deliberate and


hence the reason why we have taken a long time to evolve in Europe. We


have actually as you know, we opened Rosewood London two years ago. It


received so many awards. It is a typical sense of place des anyone


nation. What do you mean? It is in hold burn. We have created


destination... Poor hold burn? There wasn't a luxury operator in hold


burn and now it is seen as a mid-town destination for London, you


have got Covent Garden nearby and the theatre district nearby. So by


arriving in London, we have kind of put a flag in London. We have


announced a Rosewood hotel in Paris. And Rosewood which is an


800-year-old destination in Tuscany. City and resort destinations so we


are continuing to evolve and make a statement in Europe. During the


expansion, of course, you are doing so in an environment we keep hearing


the word uncertainty and uncertainty about the UK's membership of the EU,


uncertainty about a slowdown in China and debt deals in Europe. What


is the biggest risk to you? What's the thing that keeps you awake at


night amongst many? What's the one you are most worried about?


Certainly, the aspect of European Union. Our office is based in Los


Angeles, it is not something I have given thought to, but something that


does keep me up at night is other brand operators in our luxury... Who


are your big rivals? Can I mention them? Yes, of course. Four Seasons,


Peninsula. We deliberate over finding the unique destinations and


you see Rosewood London, in Paris, we want to create this auz thentic


experience so what does keep me up at night is the fact how do we


continue to different ate ourselves and finding ourselves separated from


our competition? Interesting stuff. Thank you for coming in. Nice to see


you. The Business Live page is where you


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Business Live on TV and online wherever you need to know.


Let s take a quick look at the stories making business


Falling rates for adverts because they are not able to charge as much?


What we have seen is the print media are finding themselves squeezed. It


is by lower ad revenue and lower levels of circulation. So they have


taken this solution so say well, we will cut ads and reduce the number


of pages and hope they can recoup and maintain a core residual


readership which will be enough to maintain readability. We have seen


in the Evening Standard where they have added advertising and removed


the purchase price. There are two models being followed by the print


media to maintain their sector in the market. This is a horrible


picture! It is about cockroaches. It is about the new word for companies


that are survivors and resilient because cockroaches are. They will


survive a nuclear hollow Cors. We talking about companies that will


survive. Well, we are talking about traditional means of building up a


company, starting small and starting slow and keeping costs low. And


what's what this article is implying. Jeremy, thank you.


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


webpage and on World Business Report.


Hello. Yesterday temperatures hit 17 Celsius at Gravesend. The warmest


day of the year so far. You maybe wondering if we have got more of


that warm weather to come this


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