:00:00. > :00:08.This is Business Live from BBC News, with Rachel Horne and Sally Bundock.
:00:09. > :00:10.The world's most-powerful central bank unsettles
:00:11. > :00:19.the markets with mixed messages over interest rates.
:00:20. > :00:35.Live from London, that's our top story on Tuesday 13th September.
:00:36. > :00:38.The prospect of more-expensive borrowing in the world's biggest
:00:39. > :00:41.economy is dominating market movements.
:00:42. > :00:48.Transport of delight or an uncomfortable ride?
:00:49. > :00:54.Our reporter Michelle Fleury takes a trip in Ford's new driverless car.
:00:55. > :00:57.And the European trading day is now underway and most markets recover
:00:58. > :01:00.following Monday's losses as investors get over the fear
:01:01. > :01:09.Many of us are put off owning a car because of congestion
:01:10. > :01:17.We'll be hearing from the boss of EasyCar.
:01:18. > :01:21.We'll also be asking him about the sharing economy on wheels.
:01:22. > :01:25.Would you be happy renting your car to stranger?
:01:26. > :01:43.A fog of uncertainty has descended over the future
:01:44. > :01:50.of the world's largest economy, with those pulling the economic
:01:51. > :01:54.An influential member of the board that sets US interest rates has
:01:55. > :01:56.suggested a rate rise might damage the economy.
:01:57. > :01:59.Her comments directly contradict several Fed officials,
:02:00. > :02:03.who have recently suggested the economic conditions justified
:02:04. > :02:06.considering another increase in rates this month.
:02:07. > :02:09.Speaking in Chigaco, Lael Brainard said the US central
:02:10. > :02:15.bank should avoid moves to "tighten policy pre-emptively".
:02:16. > :02:22.This seemed to clash with Federal Reserve Bank
:02:23. > :02:24.of Boston President Eric Rosengren's comments on Friday.
:02:25. > :02:27.He said "a reasonable case can be made" for raising rates
:02:28. > :02:29.And if you're wondering how much words matter,
:02:30. > :02:32.just look at the last three trading days on the Dow.
:02:33. > :02:35.The main stock market in the US reacted swiftly to those
:02:36. > :02:39.That's because raising the cost of borrowing in the US will mean
:02:40. > :02:43.higher debt repayments for many emerging market governments
:02:44. > :02:47.and businesses around the world as the amount owed is denominated
:02:48. > :02:51.And with the prospect of higher interest rates in America,
:02:52. > :02:54.this is attractive to international investors who are hungry for better
:02:55. > :03:00.returns on their investment capital, so money will be headed to the US
:03:01. > :03:21.I have got a real expert to pick it apart. Nice to see you again. What
:03:22. > :03:25.will happen next week? The greatest probability is we don't get an
:03:26. > :03:30.increase, the odds are 40% in favour of an increase. But that is still a
:03:31. > :03:35.reasonable probability. The economy is doing reasonably well, the
:03:36. > :03:40.hesitation may be something to do with the forthcoming election. And
:03:41. > :03:47.the possibility that if we get a result, markets are unhappy and can
:03:48. > :03:55.tackle it at that point in time. The adverse reaction on Friday, markets
:03:56. > :04:01.reacting to the comments of the one Fed member, now we are in the quiet
:04:02. > :04:07.period they cannot say anything until next week's meeting, what do
:04:08. > :04:11.you make of the mixed views? It is not surprising and it is healthy
:04:12. > :04:17.that there are contrasting views. We are at the low point for interest
:04:18. > :04:23.rate. We have had one injuries -- increase, but it is quite low. The
:04:24. > :04:26.economy is growing slowly, inflation is furtively low, so the point at
:04:27. > :04:31.which you make the next increase is a hard judgment. It is not that
:04:32. > :04:35.clear that the economy is growing that strongly and that inflation is
:04:36. > :04:40.growing that much. But there is also a sense, and I think this is where
:04:41. > :04:44.the comments came from last week, that we want to start to move
:04:45. > :04:47.towards a more normalised environment less emergency ward
:04:48. > :04:53.interest-rate policy and more progressive. When will they make the
:04:54. > :04:58.next move? The greatest odds seem to be for the end of the year. That
:04:59. > :05:04.would be after the election, when there is clarity. It would be a year
:05:05. > :05:09.after the first move. Very slow and gradual, which is what markets are
:05:10. > :05:11.expecting. Jane will return later when we talked with the papers.
:05:12. > :05:14.Reid Hoffman, the co-founder of the internet-based
:05:15. > :05:17.networking site LinkedIn, says he will donate up to $5 million
:05:18. > :05:20.to a veterans' charity if Donald Trump releases his tax
:05:21. > :05:24.returns before the US Presidential election in November.
:05:25. > :05:28.Mr Trump, who has released a self-reported financial disclosure
:05:29. > :05:31.form, says he will not make his tax returns public until
:05:32. > :05:35.the Internal Revenue Service completes audits of them.
:05:36. > :05:38.China's industrial output and retail-sales growth
:05:39. > :05:40.accelerated in August, with both of them exceeding
:05:41. > :05:44.expectations, in encouraging signs for the world's second-largest
:05:45. > :05:49.Industrial output rose by 6.3% in August from a year earlier,
:05:50. > :05:53.surprising analysts, who had expected it to pick up
:05:54. > :05:57.Retail sales, a key measure of consumer spending,
:05:58. > :06:03.also rose 10.6% in August, also ahead of expectations
:06:04. > :06:13.Samsung Electronics and LG Electronics were accused of agreeing
:06:14. > :06:16.not to poach each other's US employees, according to a US civil
:06:17. > :06:19.The proposed class action, filed in a California court
:06:20. > :06:24.by a former LG sales manager, accuses the two firms of antitrust
:06:25. > :06:26.violations and driving down employee wages.
:06:27. > :06:28.The case is similar to one against Apple, Google
:06:29. > :06:31.and other tech companies, which settled last
:06:32. > :06:45.Have you ever been in that place where you have bought your flatpack
:06:46. > :06:49.furniture and do have got to put it together?
:06:50. > :06:53.Yes, but we have a division of Labour in our house, I'd buy it, he
:06:54. > :07:00.constructs it. I don't put it together, because it
:07:01. > :07:05.would be a total disaster. Ikea are doing very well, the wealth's
:07:06. > :07:11.biggest furniture retailer, and sales have jumped 7% to a record
:07:12. > :07:15.34.2 billion euros. It says that China remains one of its
:07:16. > :07:19.fastest-growing markets. They are putting shelves together like there
:07:20. > :07:23.is no tomorrow in China. Ikea is almost worldwide domination.
:07:24. > :07:30.I remember before one opened in Northern Ireland, people would get
:07:31. > :07:33.the ferry to Scotland to stock up. Those candles, things you don't
:07:34. > :07:38.intend to buy it. You can tell we have been there!
:07:39. > :07:49.In China, there has been an enormous market flotation. Tell us more. It
:07:50. > :07:57.is called Postal Savings Bank of China, it has been called a monster
:07:58. > :08:00.size IPO. They are looking to raise $8.1 billion, making it the world's
:08:01. > :08:05.largest since Ali Baba went public two years ago. The bank is
:08:06. > :08:10.well-known in all of China's small towns, I had never heard of it
:08:11. > :08:16.before, but it has more outlets than any other Chinese lender. It has a
:08:17. > :08:21.pretty strong deposit base, giving it a reputation among investors as a
:08:22. > :08:26.sleepy but safe investment. But there are questions over this bank's
:08:27. > :08:32.exposure to shadow lending, which is unregulated activity. It will list
:08:33. > :08:38.in Hong Kong, more than 12 billion new shares will be sold, it begins
:08:39. > :08:40.today and will run for a week, and the shares are due to list and trade
:08:41. > :08:54.on September 28. The markets are bouncing back.
:08:55. > :08:59.Coming back following heavy losses at the start of the week, thanks to
:09:00. > :09:02.the comments we were talking about which gave the impression that we
:09:03. > :09:07.will not see increased rates in the US next week. In Europe, the markets
:09:08. > :09:15.are up, ending a three-day losing streak. Chasing those comments from
:09:16. > :09:21.the Federal reserve. What is happening on Wall Street today?
:09:22. > :09:28.The monthly budget report for August will come out, expected to show a
:09:29. > :09:33.budget deficit of $108 billion. Compare that with the month earlier
:09:34. > :09:38.in July, whether deficit was 113 billion. The Chief Executive of
:09:39. > :09:43.valiant pharmaceuticals will be at an investor conference in New York.
:09:44. > :09:48.Not surprisingly, he will be asked about interest from potential buyers
:09:49. > :09:53.of some of their assets of the company tries to dig itself out of a
:09:54. > :09:55.mountain of debt. Finally, the International energy agency will
:09:56. > :10:02.release its monthly oil report. Earlier this month they suggested
:10:03. > :10:07.that the current oversupply on oil markets will eventually ease by
:10:08. > :10:11.2017. But analysts and traders have become increasingly sceptical that
:10:12. > :10:19.the world's major producers will be able to agree to cap their output.
:10:20. > :10:30.Keep an eye on oil. We mentioned earlier in the programme some nice
:10:31. > :10:34.data out of China, which normally would grab our attention, but we are
:10:35. > :10:40.a test with the Federal reserve, but it is looking good. Yes, we were
:10:41. > :10:44.worrying about China and its rate of growth and whether or not it could
:10:45. > :10:49.manage the slowdown, and as you say our attention has been elsewhere,
:10:50. > :10:54.but the Chinese monetary authorities appear to be managing the balance
:10:55. > :10:58.between producing the amount of borrowing and credit in the economy
:10:59. > :11:01.and slowing it, but also maintaining a reasonable rate of growth in terms
:11:02. > :11:07.of retail sales and manufacturing and investment and so on. This was a
:11:08. > :11:12.good set of data, and slightly reassuring. UK if inflation figures
:11:13. > :11:17.out this morning for August, what are we expecting? We should start to
:11:18. > :11:22.see a pick-up in producer prices. That means imports and the raw
:11:23. > :11:29.materials that companies use for manufacturing and so on. Sterling's
:11:30. > :11:32.for means that goods coming from overseas are more expensive. In
:11:33. > :11:36.terms of the CPI, the inflation rate for the economy as a whole, that
:11:37. > :11:43.should also take up a little bit, but not as much. Is it about
:11:44. > :11:49.sterling being weaker? To a large extent, but having said that,
:11:50. > :11:55.employment is relatively full now, wages are ticking up a little bit,
:11:56. > :12:00.but not run away numbers, but we are seeing some upward pressure on
:12:01. > :12:02.inflation. She is not finished yet, we are making her work for her money
:12:03. > :12:04.this morning! We'll be talking to the boss
:12:05. > :12:07.of EasyCar and asking him if flexible hire really
:12:08. > :12:10.is a substitute for the convenience You're with Business
:12:11. > :12:15.Live from BBC News. JD Sports has just posted record
:12:16. > :12:31.half-year profits as they cash What can you tell us? Big contrast
:12:32. > :12:36.with Sports Direct, who we heard about last week, their profits are
:12:37. > :12:43.expected to fall, not doing too well. Contrasted with JD sports,
:12:44. > :12:51.pre-tax profits of 66%, ?77.4 million. Overall revenues up 20%,
:12:52. > :12:54.just under ?1 billion. I would like to draw your attention to the share
:12:55. > :12:59.price. This is the past six months. The middle of June it felt
:13:00. > :13:04.dramatically, just after the EU referendum. There was a reason, it
:13:05. > :13:09.was because JD Sports has been expanding heavily in Europe. In
:13:10. > :13:17.Germany, France, Belgium, the Netherlands, and so on. It bought
:13:18. > :13:22.eight chain in logical. Since then, the share price has been recovering.
:13:23. > :13:27.After these results, the market welcomed them, up 6%. This is a
:13:28. > :13:32.chain that is doing extremely well, it has a diversify strategy, and a
:13:33. > :13:36.lot of brands. It is worth remembering these results are up to
:13:37. > :13:41.the end of July, so only a month or so after the referendum vote. The
:13:42. > :13:47.company say so far it has seen positive reaction from the vote,
:13:48. > :13:51.because of the strength of the Euro, its European businesses gained their
:13:52. > :13:56.revenues in Europe, that has been a bonus for them. Further afield, the
:13:57. > :14:00.operations in Malaysia, for example, there are possible headwinds in the
:14:01. > :14:03.future, because of the weakness of sterling, but the first half of the
:14:04. > :14:06.year has gone well, we will have to see what happens in the second-half
:14:07. > :14:12.of the year, the peak period in run-up to Christmas.
:14:13. > :14:23.I am not going to burst into song. This is in the music, Esure is
:14:24. > :14:26.spinning off go compare into a separate business. A whole new
:14:27. > :14:29.advertising campaign should be lodged.
:14:30. > :14:34.I don't want them to change it! The chairman of Esure has said that
:14:35. > :14:40.the companies are distinct businesses which are owed
:14:41. > :14:42.underpinned by strong brands are but a demerger would allow separate
:14:43. > :14:47.management teams to focus them more independently. That is management
:14:48. > :14:51.speak for, we are splitting up. It sounds good.
:14:52. > :14:55.Our top story, mixed messages from the US Federal Reserve
:14:56. > :15:00.Leading members of the world's most powerful central bank have issued
:15:01. > :15:04.conflicting statements over interest rates.
:15:05. > :15:13.A quick look at how markets are faring.
:15:14. > :15:21.So far so good, but yesterday we saw alt the markets in Europe down by
:15:22. > :15:23.over, well over 1% on Monday. So as the week progresses we will see how
:15:24. > :15:28.it goes. Are the days of owning
:15:29. > :15:30.your own car numbered? Congestion, rising insurance charges
:15:31. > :15:32.and road pricing mean that many of us only
:15:33. > :15:34.use cars occasionally. And having such an expensive item
:15:35. > :15:36.gathering dust on the driveway means ownership doesn't make much economic
:15:37. > :15:39.sense for some people. Our next guest thinks all this means
:15:40. > :15:43.a real opportunity for flexible car rental companies
:15:44. > :15:50.like his - Easy car. Launched in 2000 as an extension
:15:51. > :15:53.of the EasyGroup, EasyCar is now operating in more than 160
:15:54. > :15:55.countries worldwide. Primarily offering a traditional car
:15:56. > :15:57.rental service, the company has revenues of over
:15:58. > :16:04.?20 million and rising. It's recent branching
:16:05. > :16:06.into the UK sharing economy saw them launch peer-to-peer
:16:07. > :16:10.EasyCar Club in Britain. But with London accounting for over
:16:11. > :16:13.85% of its activity and the rest of its customers based in cities,
:16:14. > :16:15.what scope is there Here to tell us more
:16:16. > :16:19.about the company's inception and ambitions in the sharing economy
:16:20. > :16:34.is Richard Laughton, Welcome to Business Live. We asked
:16:35. > :16:37.our viewers to get involved in this conversation a thief done. We will
:16:38. > :16:43.introduce their tweets later on. Tell us about you. How did you end
:16:44. > :16:46.up in the world of EasyCar? You were not within this sharing economy
:16:47. > :16:51.world at all, were you, you started off in banking in the City? I
:16:52. > :16:56.started trading at the start of my career before going through consul
:16:57. > :17:02.tans why and in house venturing. I set-up my own first venture around
:17:03. > :17:09.2000 which was a wine trading company. Wine not compatible with
:17:10. > :17:12.driving your car? Best not to be done at the same time. That venture
:17:13. > :17:17.was interesting. It was early for that particular one, but I got
:17:18. > :17:21.involved in other early stage ventures before being approached to
:17:22. > :17:25.join EasyCar and given my interest in markets, experience in the
:17:26. > :17:29.peer-to-peer world and you know the opportunity to work with a group
:17:30. > :17:32.which has disrupted a market, I thought it would be a challenge to
:17:33. > :17:36.accept. Now, we were discussing upstairs and one of the main things
:17:37. > :17:41.we were talking about is how would it work when it comes to insurance?
:17:42. > :17:45.If I've got my car on the driveway, I have got my insurance and maybe my
:17:46. > :17:48.partner is named on it. If I was to rent my car out, and if something
:17:49. > :17:52.happened to it, would it be covered by EasyCar EasyCar, would my
:17:53. > :17:58.insurance become invalid because I'm renting it out? We've partnered with
:17:59. > :18:03.Admiral, the car insurance provider to make sure we have got the car
:18:04. > :18:11.insurance covered up. When anyone signs up as a aren'tal with EasyCar
:18:12. > :18:15.Club, we make sure that Admiral is happy to cover them. If anything
:18:16. > :18:21.happens, it will be covered by Admiral. EasyCar Club is happening
:18:22. > :18:27.in the UK and it has been for a few years, but not the UK, but EasyCar
:18:28. > :18:31.is global, isn't it? It is, yes. Through EasyCar, you can book a car
:18:32. > :18:36.in 160 different territories around the world. EasyCar Club we focussed
:18:37. > :18:40.on the UK to start with because it is a new modelment the model does
:18:41. > :18:44.exist elsewhere, but we will be looking to expand that. Some users
:18:45. > :18:49.said they used EasyCar every time years ago because it was cheaper,
:18:50. > :18:55.but you're no longer cheaper. There is a lot of competition out there,
:18:56. > :18:59.why would we choose EasyCar? We have a best price guarantee. What we find
:19:00. > :19:03.with the peer-to-peer side is we tend to price below standard rental
:19:04. > :19:09.and because the cars are much closer to your house, if you are looking at
:19:10. > :19:13.the peer-to-peer business, it tends to be cheaper and more convenient.
:19:14. > :19:17.Within the brokerage, we aim to be price competitive. You talk about
:19:18. > :19:21.being a disruptor, a couple of years ago when it started, it was a
:19:22. > :19:25.disruptor, but the whole sharing economy is something that's become
:19:26. > :19:30.the norm now. Now that it is more established, what new challenges are
:19:31. > :19:33.you facing? Well, I think, so the sharing economy is much, it features
:19:34. > :19:38.larger in the public consciousness. There is still a hell of a long way
:19:39. > :19:40.to go in terms of growing it out. I think as technology changes, and we
:19:41. > :19:45.have been talking about the internet of things for many years, but now we
:19:46. > :19:49.are starting to see sensors placed not only in holes, but in cars and
:19:50. > :19:53.as that technology rolls out, it will make sharing easy. Does it only
:19:54. > :20:00.work in big cities? I don't think so. We do, as you said, most of our
:20:01. > :20:06.members are in London. And that's where we launched originally because
:20:07. > :20:09.had it had good demographics for this service, we have members over
:20:10. > :20:11.the country who don't rent their cars out every day, but have
:20:12. > :20:16.opportunities to rent their cars out from time to time. So we have, you
:20:17. > :20:19.know, someone who runs a B in the Orkney Islands who rents her car
:20:20. > :20:22.three or four times a year. It is an opportunity to make money from an
:20:23. > :20:25.asset which would otherwise be gathering dust. We have had a tweet
:20:26. > :20:30.from a viewer saying, "If the stranger will care for the car as I
:20:31. > :20:34.do and I can track its every move" Then he would be happy to do it. Is
:20:35. > :20:39.there any way that you can track where the car is going or do you set
:20:40. > :20:43.a maximum mileage? We let owners set that if they want to. There are
:20:44. > :20:48.technologies that allow you to track cars. We don't install the
:20:49. > :20:52.technology that allows you to do that or on board diagnostics, but
:20:53. > :20:57.those things are becoming much more standard in cars already. We are
:20:58. > :21:04.doing experimentation and things like on board diagnostics and dash
:21:05. > :21:09.cams to catch what happens. Can you be specific about children? No
:21:10. > :21:14.children, smearing or no dogs, no... You can. We say no smoking, no dogs,
:21:15. > :21:18.but people can change their settings. We haven't set no children
:21:19. > :21:26.yet! But I can understand why you might!
:21:27. > :21:30.I have We have got three little boys between us.
:21:31. > :21:33.US car giant Ford says it will have a mass-produced
:21:34. > :21:36.self-driving car for sale by 2025 and now wants to be seen
:21:37. > :21:40.However the firm has a long way to go if it's going to catch
:21:41. > :21:43.up with the likes of Google, Volvo and Tesla.
:21:44. > :21:45.Michelle Fleury reports now from Michigan where Ford is testing
:21:46. > :22:00.You will be in a level four technology fusion.
:22:01. > :22:02.That will drive autonomously with a safety driver.
:22:03. > :22:05.He won't be doing anything and it will be driving through this campus
:22:06. > :22:11.This is a 10,000 person campus with people doing what they do
:22:12. > :22:17.So that's the level of capability we have right now.
:22:18. > :22:20.Ford is keen to prove it can do anything Silicon Valley can.
:22:21. > :22:22.Uber is launching a self-driving taxi service in Pittsburgh
:22:23. > :22:28.It feels like being a passenger in an ordinary car.
:22:29. > :22:37.Light beams and cameras are used to read the environment around the car.
:22:38. > :22:42.So hang on a second, there's a truck right up in front.
:22:43. > :22:45.There is also a stop sign so we're going to stop.
:22:46. > :22:48.So you promise your foot wasn't on the brake?
:22:49. > :22:52.I wouldn't call it a wild ride, but then that's probably no bad
:22:53. > :22:54.thing when you're talking about driverless cars on the road.
:22:55. > :22:57.The question of safety has come up again after a driver was killed
:22:58. > :22:59.recently using at Teslar's auto pilot feature.
:23:00. > :23:01.Part of the problem is that the technology is moving
:23:02. > :23:16.faster than the rules can be written.
:23:17. > :23:29.Would you get in a driverless car? It feels a bit early. I would want
:23:30. > :23:35.to be behind the steering wheel with the option of overriding. Foot
:23:36. > :23:40.hoovering over the brake. I might as well drive myself! The new ?5 is
:23:41. > :23:45.entering circulation today and it is a plastic fiver. So it will last
:23:46. > :23:52.longer. It will not get torn, it goes through ATMs in a better
:23:53. > :23:55.fashion. And washing machines. It survives the washing machine, Jane,
:23:56. > :23:59.do we need one of these? I haven't actually seen a five pound note
:24:00. > :24:07.coming out of a cash machine for sometime. The ones I go to only seem
:24:08. > :24:11.to issue ?10 notes! But yes, of course, they are used a lot and I
:24:12. > :24:17.think this extends their life by five times so it has got to be worth
:24:18. > :24:22.it. There are two issues, one, many people are saying with contactless
:24:23. > :24:27.and the rise you can phone, your watch, your card, is it the time to
:24:28. > :24:32.be bringing it out? We have these back in Northern Ireland, Northern
:24:33. > :24:36.Bank issued plastic ?5 notes as a commemorative notes and I saw them
:24:37. > :24:42.on eBay this morning for ?15. So maybe it is a good way to get a
:24:43. > :24:47.return... No, I spent it. You spent them all in IKEA, didn't you?
:24:48. > :24:53.Apparently they can be sticky because they're plastic. So if it is
:24:54. > :25:07.hot they might stick together. This is in the Guardian.
:25:08. > :25:15.Guardian Jean-Claude Juncker has launched an investigation. Explain
:25:16. > :25:21.what's going on here. 140,000 people signed a petition about this. The
:25:22. > :25:25.former EU Commissioner is going to have a lot of inside information as
:25:26. > :25:29.to how the EU works and is it really, you know, is he going to
:25:30. > :25:35.give that to Goldman Sachs, is he going to cross ethical lines? Is it
:25:36. > :25:38.sort of too blurred, the lines are too blurred between politics and
:25:39. > :25:42.business, and does it give Goldman Sachs an unfair advantage? If you
:25:43. > :25:45.are an European Commission president does that mean that jobs you take
:25:46. > :25:50.afterwards have to be specific, there is EU rules about that? There
:25:51. > :25:56.is a life long obligation to act with integrity. For all of us. Yes.
:25:57. > :26:00.Jane, thank you for your time today. She worked hard for Business Live
:26:01. > :26:04.today. We appreciate that. That's it from Business Live today.
:26:05. > :26:10.There will be more business news throughout the day on the channel: