:00:00. > :00:07.This is Business Live from BBC News with Ben Bland and Aaron Heslehurst.
:00:08. > :00:09.Today the world's leading central bankers are meeting
:00:10. > :00:16.Investors will be paying close attention to a speech
:00:17. > :00:22.by Janet Yellen, the chair of the US Federal Reserve.
:00:23. > :00:41.Live from London, that's our top story on Friday 26th of August.
:00:42. > :00:44.Is Janet Yellen pushing a boulder up a hill?
:00:45. > :00:46.As central banks around the world continue to pump money
:00:47. > :00:48.into the global economy, there are questions over
:00:49. > :00:50.whether the Fed will abandon its plans to move
:00:51. > :00:56.Also in the programme, Whatsapp opens the door
:00:57. > :01:01.It's the first change to the company's privacy policy
:01:02. > :01:14.since it was bought by the social media giant Facebook.
:01:15. > :01:19.Here's how the market start the trading day in Europe. Investors
:01:20. > :01:22.waiting to see what comes out of that meeting.
:01:23. > :01:24.Also in the programme, we have a special guest!
:01:25. > :01:27.We'll be speaking to the boss of a company which caters
:01:28. > :01:33.And he'll be joined by Monty the border terrier.
:01:34. > :01:38.Following changes to Whatsapp's privacy policy, today
:01:39. > :01:40.we want to know what you think about personalised adverts.
:01:41. > :01:45.Do social media companies know too much about you?
:01:46. > :01:51.Are targeted promotions too intrusive?
:01:52. > :02:01.Get in touch with us, just use that hashtag.
:02:02. > :02:05.Over the next three days, many of the world's most powerful
:02:06. > :02:07.financial players are gathering at Jackson Hole, a remote
:02:08. > :02:16.So how did this annual event become the Davos for central bankers?
:02:17. > :02:18.The Federal Reserve Bank of Kansas City first
:02:19. > :02:24.hosted its economic symposium at Jackson Hole in 1982.
:02:25. > :02:26.They chose the location because of trout fishing -
:02:27. > :02:29.back then it attracted Paul Volcker, Chairman of the Federal Reserve
:02:30. > :02:34.Volcker's regular attendance saw the event grow in importance.
:02:35. > :02:44.US Federal Reserve Chairwoman Janet Yellen, Bank of
:02:45. > :02:48.England Governor Mark Carney, and President of the European
:02:49. > :02:51.Central Bank Mario Draghi are among those who will debate how to try
:02:52. > :02:59.Central banks have cut interest rates to zero and beyond,
:03:00. > :03:02.and pumped trillions of dollars into the global financial system -
:03:03. > :03:09.As for the markets, the thing that matters most is whether Janet Yellen
:03:10. > :03:12.will gives any clues for the next increase in interest rates
:03:13. > :03:23.Our economics editor Andrew Walker is with me.
:03:24. > :03:33.Great to see you. This gathering has been coming and coming! There's
:03:34. > :03:38.quite a few questions I want to ask. Briefly, do you think she's going to
:03:39. > :03:43.paint a clearer picture because it's been a bit muddled? Will they raise
:03:44. > :03:46.interest rates? I would be quite surprised if she pushes herself in
:03:47. > :03:51.one direction or the other. The general expectation is that there is
:03:52. > :03:55.a fairly good chance of a rise in rates by the end of the year.
:03:56. > :03:59.Perhaps that the December meeting. She has prepared the ground for
:04:00. > :04:08.that. I think she will want to ensure that the Fed is in the
:04:09. > :04:12.position to respond to figures as they come out. When that lady speaks
:04:13. > :04:17.and that central bank makes a decision, it does affect the rest of
:04:18. > :04:25.the world. Do the other central banks that are there, and because
:04:26. > :04:29.for the uninitiated, does it matter to them what the US central bank
:04:30. > :04:36.does, if they've got their own central bank? Of course it does.
:04:37. > :04:43.Explain! If the Fed is raising interest rates it tends to pull the
:04:44. > :04:48.dollar up. If there and currency down that can be quite helpful for
:04:49. > :04:51.the European Central Bank and the Bank of England, which has been
:04:52. > :04:56.worrying about the potential impact of the Vote Leave referendum result.
:04:57. > :05:01.It does matter. What really matters as well is whatever the Fed does, it
:05:02. > :05:06.should work. They really need a strong growing US economy to be an
:05:07. > :05:12.important export market. If that works it's good for everyone. These
:05:13. > :05:15.gatherings, when these central bankers get together and I'd love to
:05:16. > :05:19.be a fly on the wall, if they all sit around after a few drinks and
:05:20. > :05:25.say, let's try to get a unified voice and tell governments around
:05:26. > :05:30.the world that this is not all our responsibility. This has been a big
:05:31. > :05:34.theme coming from central bankers that they can do a lot but not
:05:35. > :05:39.absolutely everything. There have been these repeated calls for more
:05:40. > :05:46.by way of structural reform in labour markets, making business
:05:47. > :05:51.competition more effective in business, and also believe it or not
:05:52. > :05:55.fiscal policy. Government spending and taxes. A lot of central banks
:05:56. > :06:00.would like to see governments throw off their hair shirt a little bit.
:06:01. > :06:06.Some do think they've been going too far by way of austerity and isn't
:06:07. > :06:09.that turn up, in a sense central bankers want governments to be a bit
:06:10. > :06:15.more irresponsible. Quite a surprise really. I just got hold in my ear
:06:16. > :06:24.that I introduced you as our economic editor. Andrew Walker our
:06:25. > :06:27.economic correspondent. I've just given you a promotion! Are you
:06:28. > :06:31.giving me the money? Not a chance! The Vice chairman of one of Korea's
:06:32. > :06:34.largest corporations has been found His body was discovered hours before
:06:35. > :06:39.he was due to be questioned by prosecutors who are conducting
:06:40. > :06:41.a criminal investigation Lotte's offices were raided back
:06:42. > :06:46.in June, when authorities were looking into a possible slush
:06:47. > :06:49.fund and a breach of trust involving Apple has released a software update
:06:50. > :06:56.to fix flaws in its iOS operating system which made it possible
:06:57. > :06:59.to install spyware merely by getting The discovery was made after a human
:07:00. > :07:05.rights lawyer alerted security researchers to unsolicited text
:07:06. > :07:11.messages he had received. Air New Zealand's profits
:07:12. > :07:14.are up a massive 42%. The airline posted record profits
:07:15. > :07:19.of US$338 million on the back New Zealand had 3.31 million visitor
:07:20. > :07:44.arrivals in the last year, I'm going to tell you something
:07:45. > :07:50.about New Zealand. Since the Brexit vote, since the UK voted to leave
:07:51. > :07:56.the European Union, enquiries from Brits to emigrate to New Zealand
:07:57. > :08:01.have doubled! In July nearly 10,000 enquiries. July last year, just
:08:02. > :08:05.under 5000 enquiries. Is this a heavy hint? New Zealand, look out,
:08:06. > :08:09.it's going to be a British invasion! Now to Asia - where it looks
:08:10. > :08:12.like Japan's deflationary The consumer price index
:08:13. > :08:16.fell by 0.5% in July - the biggest drop for more
:08:17. > :08:19.than three years. Leisha Chi is in Singapore for us
:08:20. > :08:24.this morning, Leisha - is Abenomics failing
:08:25. > :08:35.to do the trick? You can throw the kitchen sink at
:08:36. > :08:40.it, doesn't mean it'll work! It's not looking good for the Prime
:08:41. > :08:47.Minister. When he was elected a couple of years ago he unveiled
:08:48. > :08:50.these three things. Clearly still not working, missing their mark
:08:51. > :08:55.because they are still battling these falling prices. It's a battle
:08:56. > :08:59.they've been waiting for nearly two decades now. Those numbers still
:09:00. > :09:04.remain deeply in the red when the central bank target is 2%.
:09:05. > :09:11.Economists have strong words for today's data, one of them said
:09:12. > :09:16.policies have failed. Tokyo announced this massive stimulus
:09:17. > :09:20.package but now following today's dated the expectation is that they
:09:21. > :09:25.could take even more steps at their September meeting. As. Reaction we
:09:26. > :09:28.saw the McKay and broader topics fall by more than 1% because of this
:09:29. > :09:36.negative news -- Nikkei. Asian stocks were steady on Friday
:09:37. > :09:38.with modest losses in some markets That reflects nervousness before
:09:39. > :09:42.that keenly anticipated speech by US Japan's Nikkei 225 fell by 0.5%
:09:43. > :09:48.after new figures showed that inflation remains way below
:09:49. > :09:56.the central bank's 2% target. For July it fell for
:09:57. > :09:58.the fifth consecutive month. US stocks were modestly lower
:09:59. > :10:02.on Thursday, weighed down by a drop in health care
:10:03. > :10:10.and consumer companies. European markets were also
:10:11. > :10:12.pulled lower on Thursday after White House candidate
:10:13. > :10:14.Hillary Clinton demanded price cuts Health care and mining stocks
:10:15. > :10:30.were a major weight on the FTSE 100. A bit lacklustre this morning as
:10:31. > :10:36.well. We are going to see what the US markets are going to do. Here's a
:10:37. > :10:47.look ahead. Wall Street's focus this Friday is on Janet Yellen. She is
:10:48. > :10:54.due to speak in Wyoming at the gathering of the world's central
:10:55. > :10:56.bankers. The Fed was targeting for rate hikes this year, now there is
:10:57. > :11:06.doubt they will manage one. Officials are split on whether it is
:11:07. > :11:13.needed soon. Markets have been treading water for most of the week
:11:14. > :11:17.in anticipation of her comments. Meanwhile, with unprecedented steps
:11:18. > :11:20.to stimulate economies, lack of growth is still a headache. The
:11:21. > :11:24.latest US economic data will bear that out and is expected to show
:11:25. > :11:25.that growth slowed in the second quarter more than previously
:11:26. > :11:29.thought. Joining us is Jane Sydenham,
:11:30. > :11:40.Investment Director Happy Friday. The meeting in
:11:41. > :11:44.Wyoming, I'm curious, are the markets more focused on something
:11:45. > :11:52.short like an interest rate rise or not, or are they interested in what
:11:53. > :11:56.the central bank's long-term strategy is? I think they focus more
:11:57. > :12:00.on the short term but whether or not it's reasonable for them to expect
:12:01. > :12:04.any short-term news, I suspect not. I suspect this is all about her
:12:05. > :12:08.setting up a long-term stall, what she can and can't do given different
:12:09. > :12:14.circumstances. There may be very little reaction at all unless there
:12:15. > :12:17.is some short-term news. Heavy weight of expectation. Some analysts
:12:18. > :12:20.earlier this week were saying we are not holding our breath any firm
:12:21. > :12:24.guidance on whether there will be a rise in interest rates. What we see
:12:25. > :12:29.is the markets basically holding their breath, investors not wanting
:12:30. > :12:33.to make any drastic moves until they do get a steer. In part it's because
:12:34. > :12:38.the US economy is performing quite well. We are expecting some kind of
:12:39. > :12:42.rate rise later this year, which obviously then starts to widen the
:12:43. > :12:46.gap between lowering rates in Europe, rising rates in America.
:12:47. > :12:50.There are economies moving at different speeds and different
:12:51. > :12:53.directions as far as policy is concerned. That's a big deal for
:12:54. > :12:56.people involved in markets because they have to start thinking
:12:57. > :13:01.differently about how they structure their funds. You are going to come
:13:02. > :13:06.up and take us through the papers. Watch out for that dog! He's a
:13:07. > :13:08.vicious rotter! No, he's cute I think.
:13:09. > :13:11.We've got a special guest here on Business Live!
:13:12. > :13:13.We'll be speaking to the boss of a company catering
:13:14. > :13:17.And he'll be joined by Monty the border terrier.
:13:18. > :13:24.You're with Business Live from BBC News.
:13:25. > :13:26.Could the North-South divide in house prices
:13:27. > :13:37.New figures this morning show house price growth in southern cities
:13:38. > :13:38.is beginning to slow, with northern cities
:13:39. > :13:41.Glasgow had the fastest growing quarterly growth at 5.2%
:13:42. > :13:47.while cities like Cambridge have seen a 1% fall.
:13:48. > :13:52.Richard Donnell is Insight Director at Hometrack who compiled the Index.
:13:53. > :14:04.What's the matter with Cambridge? Cambridge has performed almost like
:14:05. > :14:08.London, it seems stellar grades in the last five years but because it's
:14:09. > :14:13.a smaller city, prices are more volatile. What we are seeing is that
:14:14. > :14:17.prices have fallen a bit. The year-on-year rate of growth in
:14:18. > :14:23.Cambridge is still at 7%. Cambridge is slowing quite quickly. What do
:14:24. > :14:29.you put this difference down to, Richard? Well, the difference across
:14:30. > :14:33.the country is really, I mean London and the south-east, house prices are
:14:34. > :14:37.up almost 60% compared to eight years ago. In a lot of big northern
:14:38. > :14:42.cities house prices are still on a par with where they were eight years
:14:43. > :14:46.ago. Affordability is better in places like Manchester, Glass go and
:14:47. > :14:52.other places. Consumers are feeling more confident. -- Manchester and
:14:53. > :14:57.Glasgow. Sales are holding up in northern cities whereas in London we
:14:58. > :15:04.have a widening supply and demand imbalance with demand growing. The
:15:05. > :15:06.whole UK story is the house price story, has always been a supply and
:15:07. > :15:19.demand issue. That's correct. Short-changes all
:15:20. > :15:23.driven by changes in demand. We are effectively short on supply, so it
:15:24. > :15:27.is about changes which can feed directly into prices. That is what
:15:28. > :15:33.we are seeing in southern places. Stamp duty changes happened, few
:15:34. > :15:40.investors are now buying as a result. The cooling in demand is now
:15:41. > :15:44.feeding into the house prices. Thanks very much, have a great
:15:45. > :15:52.weekend. I cannot get the picture working on this. This is the head of
:15:53. > :15:56.Sue was recycling and recovery talking about picking up tonnes of
:15:57. > :16:01.waste after Notting Hill Carnival. waste after Notting Hill Carnival.
:16:02. > :16:03.You're watching Business Live - our top story - today the world's
:16:04. > :16:06.leading central bankers are meeting in Jackson Hole, Wyoming.
:16:07. > :16:09.Investors will be paying close attention to a speech by the chair
:16:10. > :16:14.of the US Federal Reserve as it contemplates raising interest rates.
:16:15. > :16:19.A quick look at how markets are faring.
:16:20. > :16:27.It's August, it's boring, not much going on. We're all waiting this
:16:28. > :16:32.meeting. Although, Jane said there might not be much of a reaction.
:16:33. > :16:35.But, you know, people on holiday, that is all there is. Take them off,
:16:36. > :16:36.let's move on, we have something more exciting.
:16:37. > :16:40.It's the debate that never ends - but how much would you spend
:16:41. > :16:44.The pet food market is worth $70 billion globally,
:16:45. > :16:52.with the US and Canada spending more than any other country in the world.
:16:53. > :16:55.And with 25% of American pet owners worried that the food on offer
:16:56. > :16:58.is making their pets obese, it's clear that healthy eating
:16:59. > :17:10.Look at that fatty. Don't talk about me like that.
:17:11. > :17:13.Tails.com is capitalising on the trend - the business sells
:17:14. > :17:15.specialist food for dogs, taking into account breed, age,
:17:16. > :17:24.He's the co founder and CEO of Tails.com -
:17:25. > :17:30.a start-up that creates tailor-made food for dogs.
:17:31. > :17:42.And we can just see Monty. Hello. CHUCKLES
:17:43. > :17:44.Seriously, we come to you, we say I've got a five-year-old .com it has
:17:45. > :17:48.a skin condition, you actually put a skin condition, you actually put
:17:49. > :17:55.the food together for that specific dog. -- a five-year-old dog. That's
:17:56. > :17:59.right, we will work out the nutrition requirement to give the
:18:00. > :18:07.dog ate healthy and long life. How's business? -- a healthy. Really good.
:18:08. > :18:14.We get 100 independent reviews each week telling us how good we have
:18:15. > :18:21.been for their pet, it's great. What breed is this for? Not just a breed.
:18:22. > :18:23.Monty is a border terrier, one-year-old. And this one is for a
:18:24. > :18:31.Siberian Husky, who is a ten-year-old. A Siberian Husky. That
:18:32. > :18:40.is a different blend. He will eat it, but he prefers his own blend. It
:18:41. > :18:44.is essential to give your dog the right nutrition, as it is for
:18:45. > :18:48.humans. Nutrition is immense medicine to humans, and that is the
:18:49. > :18:52.same for dogs. Talking about the obese pets, could you pass me one of
:18:53. > :19:00.those and explain how these work? The -- these are designed to make
:19:01. > :19:07.sure you don't give your pet too much food. 45% of owners are unaware
:19:08. > :19:15.their dog is overweight. We give one of those for portion control. That
:19:16. > :19:19.is for a 25 kilos Siberian Husky. Monty, who is six kilos, he needs
:19:20. > :19:24.fewer calories, hence the difference in size. It is expensive, isn't it?
:19:25. > :19:28.Compared to what is out there. People say, I would just buy a can
:19:29. > :19:35.of the shelf. Because we work directly with our customers we have
:19:36. > :19:44.an average customer paying 50p per day. Monty is even less than that.
:19:45. > :19:48.I'm curious, are you a vet? The vet was one of our co-founders. He had
:19:49. > :19:55.the original idea. There are 11 of us overall. We all came from a wide
:19:56. > :19:58.variety of different backgrounds. My background was for human food and
:19:59. > :20:02.how to manufacture it at a high-quality. We have vets,
:20:03. > :20:08.nutritionists, veterinary nurses, a very experienced team who designed
:20:09. > :20:14.the food and lens. Do you have stiff competition? Just looking at the
:20:15. > :20:21.supermarket shelves, there are gourmet varieties from cats and dogs
:20:22. > :20:26.already. -- and blends. We are focused on nutrition. And the very
:20:27. > :20:30.best nutrition for the type of dog. Not many people are doing that in
:20:31. > :20:34.the same way as we are. In fact, we are the only people making a real
:20:35. > :20:39.success of it. I've heard this, is it difficult to switch a dog from a
:20:40. > :20:44.food that is used to eating, which is probably full of rubbish, to
:20:45. > :20:48.better quality food? Because they may not eat it and then you are
:20:49. > :20:52.stuck with it. It can be difficult for owners to get through it. We
:20:53. > :20:56.offer lots of advice. Adding a bit of water to the blend. Phasing it in
:20:57. > :21:00.with the food they are used to. Warming it to release some of the
:21:01. > :21:03.smells. If you want to get your pet on to better food, it is worth
:21:04. > :21:07.taking the time and effort to help the transition process go as smooth
:21:08. > :21:12.as possible. How much of a role does Monty play in the business? He is in
:21:13. > :21:16.our office most days of the week. He has a big job, along with the other
:21:17. > :21:23.dogs in the office. But he doesn't want to play at the moment, does he?
:21:24. > :21:27.This is very new for him. A lot of us have dogs and test the products
:21:28. > :21:33.and understand what works. Oh! Oh! He's going for me.
:21:34. > :21:37.CHUCKLES You may have come up with some good
:21:38. > :21:42.nutritional food, but you are a rubbish dog trainer. Practice on the
:21:43. > :21:48.training, will you? I'm joking. We have to wrap it up. Are you going to
:21:49. > :21:53.get into cats? Our owners ask ask and we are thinking about it. My
:21:54. > :21:58.wife has two little kittens, and they need some food. Good on you,
:21:59. > :22:03.Monty. You mess down there and you are dead.
:22:04. > :22:05.You have cats, and you are going to go home and smell of dog.
:22:06. > :22:07.I know. In a moment we'll take a look
:22:08. > :22:10.through the Business Pages but first here's a quick reminder of how
:22:11. > :22:20.to get in touch with us. We will keep you up-to-date with all
:22:21. > :22:25.that the latest detail with insight and analysis from the BBC's team of
:22:26. > :22:34.editors around the world. We want to hear from you. Get involved in the
:22:35. > :22:41.business -- get involved on the BBC business live page. You can find us
:22:42. > :22:42.on Facebook, as well. Business Live on TV and online whenever you need
:22:43. > :22:44.to know. Let's see what other
:22:45. > :23:02.stories are being talked Jane is back. Good to see you. We
:23:03. > :23:09.are going to pick up with WhatsApp. I love it. I don't use Facebook. Am
:23:10. > :23:15.I safe? Possibly. This is about Facebook trying to monetise
:23:16. > :23:19.WhatsApp, trying to get some advertising revenue. We should start
:23:20. > :23:25.to see some of that coming through. You can opt out. You don't have to
:23:26. > :23:30.have this advertising. They have got to start earning money from it at
:23:31. > :23:36.some point. Exactly. We expect things to be free, but they can't
:23:37. > :23:39.be, right? Lots of tweets. I'd rather pay a subscription than
:23:40. > :23:43.the adverts, we already bombarded with too many on those social media
:23:44. > :23:51.platforms. Jack says it pays for your free
:23:52. > :23:54.product content, how else does everybody get paid? Understand that.
:23:55. > :23:59.Michael from Durham says they should give the option to pay as they did
:24:00. > :24:02.previously. There is a general census, people are prepared to pay a
:24:03. > :24:05.little bit. I think we are coming into a new era where people would
:24:06. > :24:13.rather have the content they want, rather than stuff targeted at them
:24:14. > :24:20.in a random fashion. We had lots on this one. Peter says disgusting, an
:24:21. > :24:22.invasion of privacy, any smartphone made without social media
:24:23. > :24:25.applications would be better, but I think some people would be lost
:24:26. > :24:30.without them. What other stories? Volkswagen have
:24:31. > :24:36.done this deal with dealers in the US. But it might not be enough? It
:24:37. > :24:40.looks as though the larger cars, the three litre cask of which there are
:24:41. > :24:47.85,000, they've still got to find some way of fixing the problem. --
:24:48. > :24:53.three litre cars. They are still on the road. This needs to be fixed.
:24:54. > :24:59.The judge has said if you can't replace them, you need to fix them.
:25:00. > :25:04.This will cost BMW even more. On top of that, if the Europeans jumped
:25:05. > :25:09.on... We don't have the class action lawsuit, we were doing this story
:25:10. > :25:15.few ago where Volkswagen owners in the US were going to get $20,000?
:25:16. > :25:19.That's right. If you owned a Volkswagen that was affected by the
:25:20. > :25:23.dodgy emissions stuff, you would get a plastic pipe in Europe, that's not
:25:24. > :25:29.fair, so they are trying to get together. If they have to pay
:25:30. > :25:34.Europeans, as well? Big bill. But it is a big company. It is, the share
:25:35. > :25:38.prices is already reflecting this. It has fallen substantially. They
:25:39. > :25:44.have the wherewithal to deal with it, but this is another step towards
:25:45. > :25:48.a larger liability. As this will dog them for years to come.
:25:49. > :25:52.Consumers have memory sometimes, don't we? Have a great, long
:25:53. > :25:55.weekend. Thank you for joining us. There will be more business
:25:56. > :25:59.news throughout the day on the BBC Live web page
:26:00. > :26:12.and on World Business Report We'll Good morning. The bank holiday
:26:13. > :26:16.weekend looming large. Looks like there will be reasonable weather on
:26:17. > :26:18.offer but there will be some rain on Saturday night into Sunday. Today
:26:19. > :26:19.looks like a decent