26/08/2016 BBC Business Live


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This is Business Live from BBC News with Ben Bland and Aaron Heslehurst.


Today the world's leading central bankers are meeting


Investors will be paying close attention to a speech


by Janet Yellen, the chair of the US Federal Reserve.


Live from London, that's our top story on Friday 26th of August.


Is Janet Yellen pushing a boulder up a hill?


As central banks around the world continue to pump money


into the global economy, there are questions over


whether the Fed will abandon its plans to move


Also in the programme, Whatsapp opens the door


It's the first change to the company's privacy policy


since it was bought by the social media giant Facebook.


Here's how the market start the trading day in Europe. Investors


waiting to see what comes out of that meeting.


Also in the programme, we have a special guest!


We'll be speaking to the boss of a company which caters


And he'll be joined by Monty the border terrier.


Following changes to Whatsapp's privacy policy, today


we want to know what you think about personalised adverts.


Do social media companies know too much about you?


Are targeted promotions too intrusive?


Get in touch with us, just use that hashtag.


Over the next three days, many of the world's most powerful


financial players are gathering at Jackson Hole, a remote


So how did this annual event become the Davos for central bankers?


The Federal Reserve Bank of Kansas City first


hosted its economic symposium at Jackson Hole in 1982.


They chose the location because of trout fishing -


back then it attracted Paul Volcker, Chairman of the Federal Reserve


Volcker's regular attendance saw the event grow in importance.


US Federal Reserve Chairwoman Janet Yellen, Bank of


England Governor Mark Carney, and President of the European


Central Bank Mario Draghi are among those who will debate how to try


Central banks have cut interest rates to zero and beyond,


and pumped trillions of dollars into the global financial system -


As for the markets, the thing that matters most is whether Janet Yellen


will gives any clues for the next increase in interest rates


Our economics editor Andrew Walker is with me.


Great to see you. This gathering has been coming and coming! There's


quite a few questions I want to ask. Briefly, do you think she's going to


paint a clearer picture because it's been a bit muddled? Will they raise


interest rates? I would be quite surprised if she pushes herself in


one direction or the other. The general expectation is that there is


a fairly good chance of a rise in rates by the end of the year.


Perhaps that the December meeting. She has prepared the ground for


that. I think she will want to ensure that the Fed is in the


position to respond to figures as they come out. When that lady speaks


and that central bank makes a decision, it does affect the rest of


the world. Do the other central banks that are there, and because


for the uninitiated, does it matter to them what the US central bank


does, if they've got their own central bank? Of course it does.


Explain! If the Fed is raising interest rates it tends to pull the


dollar up. If there and currency down that can be quite helpful for


the European Central Bank and the Bank of England, which has been


worrying about the potential impact of the Vote Leave referendum result.


It does matter. What really matters as well is whatever the Fed does, it


should work. They really need a strong growing US economy to be an


important export market. If that works it's good for everyone. These


gatherings, when these central bankers get together and I'd love to


be a fly on the wall, if they all sit around after a few drinks and


say, let's try to get a unified voice and tell governments around


the world that this is not all our responsibility. This has been a big


theme coming from central bankers that they can do a lot but not


absolutely everything. There have been these repeated calls for more


by way of structural reform in labour markets, making business


competition more effective in business, and also believe it or not


fiscal policy. Government spending and taxes. A lot of central banks


would like to see governments throw off their hair shirt a little bit.


Some do think they've been going too far by way of austerity and isn't


that turn up, in a sense central bankers want governments to be a bit


more irresponsible. Quite a surprise really. I just got hold in my ear


that I introduced you as our economic editor. Andrew Walker our


economic correspondent. I've just given you a promotion! Are you


giving me the money? Not a chance! The Vice chairman of one of Korea's


largest corporations has been found His body was discovered hours before


he was due to be questioned by prosecutors who are conducting


a criminal investigation Lotte's offices were raided back


in June, when authorities were looking into a possible slush


fund and a breach of trust involving Apple has released a software update


to fix flaws in its iOS operating system which made it possible


to install spyware merely by getting The discovery was made after a human


rights lawyer alerted security researchers to unsolicited text


messages he had received. Air New Zealand's profits


are up a massive 42%. The airline posted record profits


of US$338 million on the back New Zealand had 3.31 million visitor


arrivals in the last year, I'm going to tell you something


about New Zealand. Since the Brexit vote, since the UK voted to leave


the European Union, enquiries from Brits to emigrate to New Zealand


have doubled! In July nearly 10,000 enquiries. July last year, just


under 5000 enquiries. Is this a heavy hint? New Zealand, look out,


it's going to be a British invasion! Now to Asia - where it looks


like Japan's deflationary The consumer price index


fell by 0.5% in July - the biggest drop for more


than three years. Leisha Chi is in Singapore for us


this morning, Leisha - is Abenomics failing


to do the trick? You can throw the kitchen sink at


it, doesn't mean it'll work! It's not looking good for the Prime


Minister. When he was elected a couple of years ago he unveiled


these three things. Clearly still not working, missing their mark


because they are still battling these falling prices. It's a battle


they've been waiting for nearly two decades now. Those numbers still


remain deeply in the red when the central bank target is 2%.


Economists have strong words for today's data, one of them said


policies have failed. Tokyo announced this massive stimulus


package but now following today's dated the expectation is that they


could take even more steps at their September meeting. As. Reaction we


saw the McKay and broader topics fall by more than 1% because of this


negative news -- Nikkei. Asian stocks were steady on Friday


with modest losses in some markets That reflects nervousness before


that keenly anticipated speech by US Japan's Nikkei 225 fell by 0.5%


after new figures showed that inflation remains way below


the central bank's 2% target. For July it fell for


the fifth consecutive month. US stocks were modestly lower


on Thursday, weighed down by a drop in health care


and consumer companies. European markets were also


pulled lower on Thursday after White House candidate


Hillary Clinton demanded price cuts Health care and mining stocks


were a major weight on the FTSE 100. A bit lacklustre this morning as


well. We are going to see what the US markets are going to do. Here's a


look ahead. Wall Street's focus this Friday is on Janet Yellen. She is


due to speak in Wyoming at the gathering of the world's central


bankers. The Fed was targeting for rate hikes this year, now there is


doubt they will manage one. Officials are split on whether it is


needed soon. Markets have been treading water for most of the week


in anticipation of her comments. Meanwhile, with unprecedented steps


to stimulate economies, lack of growth is still a headache. The


latest US economic data will bear that out and is expected to show


that growth slowed in the second quarter more than previously


thought. Joining us is Jane Sydenham,


Investment Director Happy Friday. The meeting in


Wyoming, I'm curious, are the markets more focused on something


short like an interest rate rise or not, or are they interested in what


the central bank's long-term strategy is? I think they focus more


on the short term but whether or not it's reasonable for them to expect


any short-term news, I suspect not. I suspect this is all about her


setting up a long-term stall, what she can and can't do given different


circumstances. There may be very little reaction at all unless there


is some short-term news. Heavy weight of expectation. Some analysts


earlier this week were saying we are not holding our breath any firm


guidance on whether there will be a rise in interest rates. What we see


is the markets basically holding their breath, investors not wanting


to make any drastic moves until they do get a steer. In part it's because


the US economy is performing quite well. We are expecting some kind of


rate rise later this year, which obviously then starts to widen the


gap between lowering rates in Europe, rising rates in America.


There are economies moving at different speeds and different


directions as far as policy is concerned. That's a big deal for


people involved in markets because they have to start thinking


differently about how they structure their funds. You are going to come


up and take us through the papers. Watch out for that dog! He's a


vicious rotter! No, he's cute I think.


We've got a special guest here on Business Live!


We'll be speaking to the boss of a company catering


And he'll be joined by Monty the border terrier.


You're with Business Live from BBC News.


Could the North-South divide in house prices


New figures this morning show house price growth in southern cities


is beginning to slow, with northern cities


Glasgow had the fastest growing quarterly growth at 5.2%


while cities like Cambridge have seen a 1% fall.


Richard Donnell is Insight Director at Hometrack who compiled the Index.


What's the matter with Cambridge? Cambridge has performed almost like


London, it seems stellar grades in the last five years but because it's


a smaller city, prices are more volatile. What we are seeing is that


prices have fallen a bit. The year-on-year rate of growth in


Cambridge is still at 7%. Cambridge is slowing quite quickly. What do


you put this difference down to, Richard? Well, the difference across


the country is really, I mean London and the south-east, house prices are


up almost 60% compared to eight years ago. In a lot of big northern


cities house prices are still on a par with where they were eight years


ago. Affordability is better in places like Manchester, Glass go and


other places. Consumers are feeling more confident. -- Manchester and


Glasgow. Sales are holding up in northern cities whereas in London we


have a widening supply and demand imbalance with demand growing. The


whole UK story is the house price story, has always been a supply and


demand issue. That's correct. Short-changes all


driven by changes in demand. We are effectively short on supply, so it


is about changes which can feed directly into prices. That is what


we are seeing in southern places. Stamp duty changes happened, few


investors are now buying as a result. The cooling in demand is now


feeding into the house prices. Thanks very much, have a great


weekend. I cannot get the picture working on this. This is the head of


Sue was recycling and recovery talking about picking up tonnes of


waste after Notting Hill Carnival. waste after Notting Hill Carnival.


You're watching Business Live - our top story - today the world's


leading central bankers are meeting in Jackson Hole, Wyoming.


Investors will be paying close attention to a speech by the chair


of the US Federal Reserve as it contemplates raising interest rates.


A quick look at how markets are faring.


It's August, it's boring, not much going on. We're all waiting this


meeting. Although, Jane said there might not be much of a reaction.


But, you know, people on holiday, that is all there is. Take them off,


let's move on, we have something more exciting.


It's the debate that never ends - but how much would you spend


The pet food market is worth $70 billion globally,


with the US and Canada spending more than any other country in the world.


And with 25% of American pet owners worried that the food on offer


is making their pets obese, it's clear that healthy eating


Look at that fatty. Don't talk about me like that.


Tails.com is capitalising on the trend - the business sells


specialist food for dogs, taking into account breed, age,


He's the co founder and CEO of Tails.com -


a start-up that creates tailor-made food for dogs.


And we can just see Monty. Hello. CHUCKLES


Seriously, we come to you, we say I've got a five-year-old .com it has


a skin condition, you actually put a skin condition, you actually put


the food together for that specific dog. -- a five-year-old dog. That's


right, we will work out the nutrition requirement to give the


dog ate healthy and long life. How's business? -- a healthy. Really good.


We get 100 independent reviews each week telling us how good we have


been for their pet, it's great. What breed is this for? Not just a breed.


Monty is a border terrier, one-year-old. And this one is for a


Siberian Husky, who is a ten-year-old. A Siberian Husky. That


is a different blend. He will eat it, but he prefers his own blend. It


is essential to give your dog the right nutrition, as it is for


humans. Nutrition is immense medicine to humans, and that is the


same for dogs. Talking about the obese pets, could you pass me one of


those and explain how these work? The -- these are designed to make


sure you don't give your pet too much food. 45% of owners are unaware


their dog is overweight. We give one of those for portion control. That


is for a 25 kilos Siberian Husky. Monty, who is six kilos, he needs


fewer calories, hence the difference in size. It is expensive, isn't it?


Compared to what is out there. People say, I would just buy a can


of the shelf. Because we work directly with our customers we have


an average customer paying 50p per day. Monty is even less than that.


I'm curious, are you a vet? The vet was one of our co-founders. He had


the original idea. There are 11 of us overall. We all came from a wide


variety of different backgrounds. My background was for human food and


how to manufacture it at a high-quality. We have vets,


nutritionists, veterinary nurses, a very experienced team who designed


the food and lens. Do you have stiff competition? Just looking at the


supermarket shelves, there are gourmet varieties from cats and dogs


already. -- and blends. We are focused on nutrition. And the very


best nutrition for the type of dog. Not many people are doing that in


the same way as we are. In fact, we are the only people making a real


success of it. I've heard this, is it difficult to switch a dog from a


food that is used to eating, which is probably full of rubbish, to


better quality food? Because they may not eat it and then you are


stuck with it. It can be difficult for owners to get through it. We


offer lots of advice. Adding a bit of water to the blend. Phasing it in


with the food they are used to. Warming it to release some of the


smells. If you want to get your pet on to better food, it is worth


taking the time and effort to help the transition process go as smooth


as possible. How much of a role does Monty play in the business? He is in


our office most days of the week. He has a big job, along with the other


dogs in the office. But he doesn't want to play at the moment, does he?


This is very new for him. A lot of us have dogs and test the products


and understand what works. Oh! Oh! He's going for me.


CHUCKLES You may have come up with some good


nutritional food, but you are a rubbish dog trainer. Practice on the


training, will you? I'm joking. We have to wrap it up. Are you going to


get into cats? Our owners ask ask and we are thinking about it. My


wife has two little kittens, and they need some food. Good on you,


Monty. You mess down there and you are dead.


You have cats, and you are going to go home and smell of dog.


I know. 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. We will keep you up-to-date with all


that the latest detail with insight and analysis from the BBC's team of


editors around the world. We want to hear from you. Get involved in the


business -- get involved on the BBC business live page. You can find us


on Facebook, as well. Business Live on TV and online whenever you need


to know. Let's see what other


stories are being talked Jane is back. Good to see you. We


are going to pick up with WhatsApp. I love it. I don't use Facebook. Am


I safe? Possibly. This is about Facebook trying to monetise


WhatsApp, trying to get some advertising revenue. We should start


to see some of that coming through. You can opt out. You don't have to


have this advertising. They have got to start earning money from it at


some point. Exactly. We expect things to be free, but they can't


be, right? Lots of tweets. I'd rather pay a subscription than


the adverts, we already bombarded with too many on those social media


platforms. Jack says it pays for your free


product content, how else does everybody get paid? Understand that.


Michael from Durham says they should give the option to pay as they did


previously. There is a general census, people are prepared to pay a


little bit. I think we are coming into a new era where people would


rather have the content they want, rather than stuff targeted at them


in a random fashion. We had lots on this one. Peter says disgusting, an


invasion of privacy, any smartphone made without social media


applications would be better, but I think some people would be lost


without them. What other stories? Volkswagen have


done this deal with dealers in the US. But it might not be enough? It


looks as though the larger cars, the three litre cask of which there are


85,000, they've still got to find some way of fixing the problem. --


three litre cars. They are still on the road. This needs to be fixed.


The judge has said if you can't replace them, you need to fix them.


This will cost BMW even more. On top of that, if the Europeans jumped


on... We don't have the class action lawsuit, we were doing this story


few ago where Volkswagen owners in the US were going to get $20,000?


That's right. If you owned a Volkswagen that was affected by the


dodgy emissions stuff, you would get a plastic pipe in Europe, that's not


fair, so they are trying to get together. If they have to pay


Europeans, as well? Big bill. But it is a big company. It is, the share


prices is already reflecting this. It has fallen substantially. They


have the wherewithal to deal with it, but this is another step towards


a larger liability. As this will dog them for years to come.


Consumers have memory sometimes, don't we? Have a great, long


weekend. Thank you for joining us. There will be more business


news throughout the day on the BBC Live web page


and on World Business Report We'll Good morning. The bank holiday


weekend looming large. Looks like there will be reasonable weather on


offer but there will be some rain on Saturday night into Sunday. Today


looks like a decent


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