:00:00. > :00:10.This is Business Live from BBC News with Ben Thompson and Sally Bundock.
:00:11. > :00:15.It is Super Wednesday with two of the world's most influential
:00:16. > :00:17.central banks making big decisions that could directly affect
:00:18. > :00:33.Live from London, that's our top story on Wednesday, 21st September.
:00:34. > :00:36.There was no change in the cost of borrowing from the Bank of Japan
:00:37. > :00:41.but all eyes now shift to America's Central Bank for any
:00:42. > :00:46.signs of a rate rise for the world's largest economy.
:00:47. > :00:50.Also in the programme, Tesla car gets hacked and they gain
:00:51. > :00:54.The firm has updated the software to correct the problem,
:00:55. > :00:58.but what safety issues does it raise for the electric car giant.
:00:59. > :01:01.And we'll bring you all the latest market reaction to that
:01:02. > :01:18.European markets up by 0.5%. Stay tuned for the reaction to what's
:01:19. > :01:20.happening on global markets. And we'll get the inside track
:01:21. > :01:23.on how technology is making life The website Live Better With sells
:01:24. > :01:28.non-medical products to help Could hi-tech fitness tracker make
:01:29. > :01:38.you fatter not fitter? It's being called super Wednesday
:01:39. > :02:09.with announcements from two central bank heavyweights -
:02:10. > :02:11.the Bank of Japan and The Bank of Japan has decided
:02:12. > :02:22.to keep rates on hold at minus 0.1% and hasn't
:02:23. > :02:32.added to its stimulus. Later it's the turn
:02:33. > :02:34.of America's Central Bank to tell us what it has
:02:35. > :02:36.decided to do. But the two are facing very
:02:37. > :02:38.different economic challenges and today's events show why central
:02:39. > :02:41.banks comes in for so much scrutiny. As economies have struggled to pick
:02:42. > :02:44.up after the global slowdown, Central Bank policy has become
:02:45. > :02:46.increasingly important but also Japan has led the way
:02:47. > :02:49.in lowering rates. And the cost of borrowing
:02:50. > :02:53.is hovering at near historic lows but also across most developed
:02:54. > :02:59.countries around the world. Such low rates has meant
:03:00. > :03:02.Central Banks have had to take other That's why we've seen a big rise
:03:03. > :03:06.in the use of quantitative easing, where central banks buy
:03:07. > :03:08.large amounts of debt and that frees up money
:03:09. > :03:11.in the wider economy for lending In Europe, for instance,
:03:12. > :03:14.the ECB is buying 80 billion euros a month and it includes government
:03:15. > :03:18.and corporate debt. But despite this unprecedented
:03:19. > :03:24.action, inflation has stayed stubbornly low and growth,
:03:25. > :03:26.except in America, So what tools do Central Banks
:03:27. > :03:32.actually have left to Karishma Vaswani is in Singapore
:03:33. > :03:48.and we've had that Bank Some reports say it is tinkering
:03:49. > :03:53.around the edges of a policy that's not working. Is that the case? That
:03:54. > :03:56.would be fair to say that's been the assessment among many of the
:03:57. > :04:00.analysts that I have been speaking to, but remember the Bank of Japan
:04:01. > :04:05.is always controversial or it has been recently certainly and
:04:06. > :04:16.investors in Tokyo re-Warded the policy statement with showing with a
:04:17. > :04:21.rise in shares, by over 12%. 1%, the yen weakened slightly. As you said
:04:22. > :04:25.the BOJ didn't push interest rates further below zero, but it is
:04:26. > :04:28.targeting the yield curve of ten-year-old bonds aim to go keep
:04:29. > :04:33.that around zero. Both the measures appear to be aimed at ensuring that
:04:34. > :04:37.those big banks and financials, remember they make up a huge portion
:04:38. > :04:40.of the Japanese economy, pension funds as well as insurance
:04:41. > :04:44.companies. They don't continue to see profits hurting the way they
:04:45. > :04:47.have been in the past and ever since that negative interest rate decision
:04:48. > :04:52.came into play around January, but analysts as I was saying earlier are
:04:53. > :04:56.pretty divided on whether the moves will be effective because as we have
:04:57. > :05:00.been talking about, the ammunition for central banks appears to be
:05:01. > :05:06.running out and key economic reforms have yet to take place there.
:05:07. > :05:10.Thank you very much. There is more on the website. Thank you for now.
:05:11. > :05:13.Pippa Malmgren is founder of the DRPM Group and an international
:05:14. > :05:28.Nice to see you. So we've heard about the Bank of Japan. Give us
:05:29. > :05:33.your take on how they've tweaked things. In Japan they are literally
:05:34. > :05:36.running out of tools. They're minus interest rates. They have been
:05:37. > :05:41.pumping stimulus and they've tried it all, haven't they? So today they
:05:42. > :05:54.have said they are not going to have quantitative easing, they are going
:05:55. > :05:59.to have quantitative and qualative easing and price for interest rates
:06:00. > :06:04.for long-term and short-term money so it is more expensive to borrow
:06:05. > :06:08.long-term. That's to help the pension funds, they are really
:06:09. > :06:12.struggling? They surely are, but the thing is quantitative easing doesn't
:06:13. > :06:16.necessarily work the same way in every country and I would argue it
:06:17. > :06:19.doesn't work in Japan, but it does work in the United Kingdom and it
:06:20. > :06:22.work in the United States and that's why there is speculation that the
:06:23. > :06:26.Federal Reserve is going to raise interest rates potentially at some
:06:27. > :06:30.point, maybe today, but maybe soon, but in Japan, no. And there are lots
:06:31. > :06:33.of reasons, but I would say the main reason is they're not very
:06:34. > :06:37.supportive of small businesses which is where two-thirds of the net new
:06:38. > :06:41.jobs are created, firms that have less than 50 people. So in Japan,
:06:42. > :06:44.you can put all the money you want in the system, but it never gets to
:06:45. > :06:48.the little businesses, whereas it dus in the UK and the US. Let's talk
:06:49. > :06:52.about the Fed. It is an interesting one. One we've watched closely. All
:06:53. > :06:58.the speculation about will they do, when will they do and how much will
:06:59. > :07:02.they do it by? Today we could get some answers and we will see a
:07:03. > :07:05.direct impact on the markets? It looks like the polls are showing
:07:06. > :07:09.only a fifth of the traders in the market believe that they'll raise
:07:10. > :07:12.interest rates to. It would be a surprise if they acted, but they've
:07:13. > :07:15.told us that they want to raise interests interest rates. I think,
:07:16. > :07:20.they have not warned us as frequently as they did in the past
:07:21. > :07:24.so people are hesitating. But the reality is if they do, it is the
:07:25. > :07:31.equivalent of taking a teaspoonful of water out of a bathtub. It
:07:32. > :07:36.doesn't actually tighten the liquidity conditions much. I say
:07:37. > :07:40.even if they act, the market might be initially surprised, but I think
:07:41. > :07:49.it will make the stock market go up. Pippa, thank you. Michelle is
:07:50. > :07:50.stationed at the US Central Bank in Washington and will update us as
:07:51. > :07:55.soon as we get the news. The boss
:07:56. > :07:58.of American Bank, Wells Fargo, has apologised to customers,
:07:59. > :08:00.but refused to resign after a two hour grilling by a Senate Banking
:08:01. > :08:03.Committee yesterday. He was giving evidence
:08:04. > :08:05.after two million fake accounts were created at the bank that
:08:06. > :08:07.customers hadn't John Stumpf said he was "deeply
:08:08. > :08:11.sorry" for that and Oil and gas giant Exxon Mobil
:08:12. > :08:19.is being investigated over the way The company may have misled
:08:20. > :08:22.investors and the public by failing to reflect a slump in oil prices,
:08:23. > :08:25.increasing regulation and potential A Tesla car has been hacked
:08:26. > :08:32.by researchers in China, and the company has now updated
:08:33. > :08:35.the software in its vehicle The researchers managed to control
:08:36. > :08:41.the brake system on a moving vehicle and opened a car door
:08:42. > :08:44.using a laptop. Tesla says the attack could only be
:08:45. > :08:55.triggered when a web browser was in use and the vehicle was close
:08:56. > :09:08.enough to a malicious wi-fi It is very worrying, isn't it? Not a
:09:09. > :09:11.great thing to be able to control the brakes and the door from a
:09:12. > :09:17.laptop, for the people inside, anyway.
:09:18. > :09:18.In Europe, it is all about what is happening at the central banks.
:09:19. > :09:22.Michael Hewson from CMC Markets is in London.
:09:23. > :09:28.We are 40 minutes into the European day, what's going on? Are people
:09:29. > :09:34.reacting to Japan are just looking ahead to the Fed or a bit of both? A
:09:35. > :09:39.bit of both. The financial stocks are up significantly on the Bank of
:09:40. > :09:43.Japan's tweaking of its policy framework, but all eyes will be on
:09:44. > :09:47.the Fed. It is clear the Federal Reserve is split down the middle as
:09:48. > :09:51.to whether it should raise rates. The window is closing for the Fed to
:09:52. > :09:56.act and while markets aren't expecting a rate rise today, there
:09:57. > :10:00.is an expectation that Janet Yellen could give guidance on a potential
:10:01. > :10:03.rate rise in December. Michael, when we talk about the reaction on the
:10:04. > :10:08.markets, what is it that investors want to see? Is it just clarity,
:10:09. > :10:11.some sort of direction rather than this scrabbling around for any tool
:10:12. > :10:14.that's left or is it that they actually want to see a rate rise
:10:15. > :10:18.because it makes money more attractive? Absolutely. I think
:10:19. > :10:21.that's exactly what investors want to see. At the beginning of this
:10:22. > :10:25.year we were told to expect four rate rises this year. Thus far, we
:10:26. > :10:29.are still waiting for the first one. Ultimately, I think, the perception
:10:30. > :10:33.out there is get it out of the way, get it done and update the market as
:10:34. > :10:37.to what your inflation expectations are going forward. Michael, as
:10:38. > :10:41.always, it is really good to talk to you.
:10:42. > :10:44.Joining us is James Quinn, Group Business Editor
:10:45. > :10:57.We promised we would talk about at thes lard, it sounds worrying,
:10:58. > :11:03.Chinese hackers controlling the brakes? There was a team of Chinese
:11:04. > :11:06.hackers 12 miles from the car. They published the video online and at
:11:07. > :11:11.thes lard were able to issue an update to the software. You say it
:11:12. > :11:14.is good they figured this out now before the cars, clearly, the cars
:11:15. > :11:18.are up and running and on the road, but spot it early, get the patch
:11:19. > :11:21.sent out and the software updated and they say no one needs to take
:11:22. > :11:25.the car in, they have been able to do this over the air? That's
:11:26. > :11:29.different compared to with what happened to VW and the emissions
:11:30. > :11:32.scandal which is still leading to the recall of hundreds of thousands
:11:33. > :11:37.of cars across Europe. This is how it works with innovation with
:11:38. > :11:41.companies pushing into new frontiers, but the news about the at
:11:42. > :11:51.thes lard vehicles has been negative lately. It has had an effect on the
:11:52. > :11:54.share price? Yes, it closed at $204 yesterday compared to 240, the
:11:55. > :11:58.question is regulation. The regulation is not really keeping up.
:11:59. > :12:04.The US yesterday releasing rules to try and work out how companies like
:12:05. > :12:09.at thes lard and Uber which is testing autonomous cars keep us all
:12:10. > :12:12.safe. The regulation issue is a really interesting one. As touched
:12:13. > :12:16.on, all this innovation is happening faster than the regulation can keep
:12:17. > :12:20.up with, so you might find that the regulators are just having to do
:12:21. > :12:25.piecemeal bits of regulation to stay on top of it and it strikes me they
:12:26. > :12:29.need to step back and think this is the future, how are we going to deal
:12:30. > :12:38.with this, but they can't do that yet? It is country by country. In
:12:39. > :12:41.the US alone... State by State. The federal regulators said companies
:12:42. > :12:44.should share their data and whether they do that, that's a different
:12:45. > :12:50.matter. James, we will see you later. More to talk to James about
:12:51. > :12:53.in terms of stories in the media. Including the fitness trackers and
:12:54. > :13:02.whether they make you fatter or fitter!
:13:03. > :13:04.Tech support, how one firm is using technology
:13:05. > :13:08.We'll speak to the woman behind the website that's simplifying
:13:09. > :13:13.You're with Business Live from BBC News.
:13:14. > :13:16.In the UK, Royal Bank of Scotland has had a setback trying to offload
:13:17. > :13:23.Selling the branches was a key condition of RBS' taxpayer-funded
:13:24. > :13:25.bailout at the height of the financial crisis.
:13:26. > :13:31.Theo Leggett has the details in our business newsroom.
:13:32. > :13:37.Theo, they have been trying to sell them, but the buyer pulled out. Just
:13:38. > :13:42.explain this for us. Well, this is a real problem for RBS because they
:13:43. > :13:46.have, as you say a legal requirement to sell 315 branches by the end of
:13:47. > :13:49.next year. That was a condition attached to the taxpayer bail out in
:13:50. > :13:53.2008, but the problem is at the moment, there aren't many buyers for
:13:54. > :13:56.banking branches. We're all moving our accounts online and they're not
:13:57. > :13:59.particularly profitable and bank accounts anyway aren't particularly
:14:00. > :14:01.profitable as an investment because of low interest rates and there are
:14:02. > :14:05.a couple of million accounts we understand that come with the
:14:06. > :14:11.branches. So RBS is trying to sell them. Santander was one buyer, it
:14:12. > :14:16.was interested and it pulled out in 2012, RBS then tried to set-up a
:14:17. > :14:20.stand alone business under the Williams and Glyn brand. That wasn't
:14:21. > :14:24.working out and then Santander came into the picture, but they are
:14:25. > :14:29.disagreeing over price. RBS would like ?1.5 billion and ?2 billion and
:14:30. > :14:32.Santander isn't willing to pay that much. There is not many potential
:14:33. > :14:34.buyers out there. Whilst this is going on, what about the wider
:14:35. > :14:47.problems at RBS? Look at this share price from just a
:14:48. > :14:51.few days ago. That was because of the fines which the Department of
:14:52. > :14:57.Justice is thinking about imposing on Deutsche Bank for misselling
:14:58. > :14:59.mortgage security. Now, RBS is also in the firing line for that kind of
:15:00. > :15:05.thing. So you can see investor reaction there. Not only that but a
:15:06. > :15:09.recently reported $2 billion loss for the first six months of this
:15:10. > :15:12.year, which is partly linked to a legal hangover from payment
:15:13. > :15:18.protection insurance misselling. The big picture for RBS is that there
:15:19. > :15:22.are a lot of things on the line. It is not going terribly well. And
:15:23. > :15:32.investors, as you can see, are not terribly happy, either. Majestic
:15:33. > :15:37.Wine has warned that profits will be hit by a slow down in its commercial
:15:38. > :15:39.business, and also a failure in its direct mail campaign in the US. More
:15:40. > :15:53.on that on the websites. Japan's Central Bank keeps
:15:54. > :16:01.rates on hold at -0.1%, and now, all eyes shift Stateside
:16:02. > :16:04.for the Federal Reserve's decision, as Central Banks struggle to revive
:16:05. > :16:16.growth in the world economy. The big question - do they have any
:16:17. > :16:17.tools left to tackle sluggish growth? That's what we have been
:16:18. > :16:20.discussing this morning. Now, we know technology has
:16:21. > :16:23.changed our everyday lives, but can it also help ease
:16:24. > :16:26.pain from illness? The website Live Better With was
:16:27. > :16:33.launched late last year to help millions of people suffering
:16:34. > :16:37.from cancer to find non-medical products specifically for them,
:16:38. > :16:43.all in one place. Over 500,000 visitors have used
:16:44. > :16:48.the site, with 20,000 patients and carers now part
:16:49. > :16:52.of the online community. Live Better With has offices
:16:53. > :16:55.in London and New York and has received over ?2 million in private
:16:56. > :16:58.investment in the last few months. Tamara Rajah is the founder and CEO
:16:59. > :17:10.of the website Live Better With. She joins us now. Nice to see you.
:17:11. > :17:13.First of all, just explain the concept behind the website. It
:17:14. > :17:17.strikes me, there's lots of places you can get these kind of things
:17:18. > :17:22.online, but this is about bringing them altogether? Yes, they're all
:17:23. > :17:25.over the place. If you're suffering from cancer or a long-term
:17:26. > :17:28.condition, or you're caring for somebody who is, how do you bring
:17:29. > :17:32.together what could be hopeful for them? That's the whole purpose
:17:33. > :17:36.behind this. It should be at your thing tips. That's what we do, it's
:17:37. > :17:39.to make day-to-day life a little bit better, bring together all the
:17:40. > :17:48.things which can be useful and curated them. So if we look at your
:17:49. > :17:55.website, we've got all the different elements. You've got different kinds
:17:56. > :17:59.of problems, with skin, with Herrera, you can click on that
:18:00. > :18:04.particular area. How do you make money out of this? We bring together
:18:05. > :18:06.all of the products which would be helpful for people living with
:18:07. > :18:13.cancer. They are available on the site. So you can come there knowing
:18:14. > :18:16.only how you feel. So, I feel sick. Click on it and find all the things
:18:17. > :18:23.which other people feeling sick have felt helpful, and then buy it, all
:18:24. > :18:27.on one site. How do you get all of that information from so many people
:18:28. > :18:31.you're talking to, it is an enormous task, how many people have you got
:18:32. > :18:36.doing it? We're a team of eight at the moment, but through us, we reach
:18:37. > :18:39.thousands of people living with cancer, through our online community
:18:40. > :18:45.and through face-to-face interviews. But presumably you've got to check
:18:46. > :18:49.the products are legitimate? Yes, so, a lot of the products are things
:18:50. > :18:53.that may have been recommended in a very fragmented way by individual
:18:54. > :18:57.doctors and nurses. So again, bringing together all of that in one
:18:58. > :19:00.place. At the minute this specifically looks at cancer. It
:19:01. > :19:04.strikes me the business model would apply to different conditions as
:19:05. > :19:08.well - do you have plans to expand? The vision is to help all people
:19:09. > :19:11.with long-term illnesses. Exactly as you say, the business model extends
:19:12. > :19:16.to people living with chronic conditions who have different side
:19:17. > :19:19.effects and symptoms. But to start with, we're focusing on cancer, and
:19:20. > :19:23.for that alone, there's hundreds of products. Talkers through the
:19:24. > :19:26.journey of getting this up and running. It's a lovely website, you
:19:27. > :19:30.conceive the need for it, but there must have been a lot of pain and
:19:31. > :19:35.long hours and blood, sweat and tears going into getting it off the
:19:36. > :19:37.ground? And looking at some of the stuff, it's about bringing together
:19:38. > :19:42.the experts as well? It absolutely is, it's a balance of content, as
:19:43. > :19:46.well as the products themselves. Each of those needs a lot of
:19:47. > :19:49.searching and validating and curating and clearing it all up.
:19:50. > :19:54.It's balancing this social mission that we have two make life better
:19:55. > :19:57.for people with cancer, with building a sustainable business,
:19:58. > :20:01.which is what will help it grow in the long-term. You have been around
:20:02. > :20:07.for a year, and most people don't know about you. It's a very, very
:20:08. > :20:16.busy, noisy environment online. How on earth will you get your voice out
:20:17. > :20:24.there, other than being on Business Life -- On Business Live? That Is
:20:25. > :20:28.The Thing, We Have This Burning Need To Reach Everybody With Cancer In
:20:29. > :20:34.The Whole World. That's what striving us. It is a huge mission!
:20:35. > :20:37.But everybody should know where to find these things. That's what's
:20:38. > :20:43.behind it. We are partnering with charities, with hospitals, and other
:20:44. > :20:47.people as well. Where does the money come from to scale up on this, with
:20:48. > :20:51.that sort of ambition, as well as with the charities on the hospitals,
:20:52. > :20:56.you need to partner with financial institutions, clearly. How receptive
:20:57. > :21:01.have they been to this? Yes. You mentioned the investment that we've
:21:02. > :21:05.had, and it's got a very warm reception from investors. And I
:21:06. > :21:08.think that balance of what we're doing for people with these
:21:09. > :21:13.conditions, plus building a sustainable business, but coupled
:21:14. > :21:20.together makes it an attractive investment story. Thanks for your
:21:21. > :21:23.time today, and all the very best. Very interesting concept. We will
:21:24. > :21:30.keep an eye on how it progresses. Best of luck to.
:21:31. > :21:37.In a moment, we'll take a look through the business pages.
:21:38. > :21:45.Including those fitness devices. My love of burgers, what can I say?!
:21:46. > :21:53.But first, here's a quick reminder of how to get in touch with us.
:21:54. > :22:00.We will keep you up-to-date with all the latest details, with insight and
:22:01. > :22:03.analysis from the BBC's team of editors around the world. And we
:22:04. > :22:18.want to hear from you, too. Get involved on our web page.
:22:19. > :22:31.Let's talk about that story that we have now mentioned a few times. I
:22:32. > :22:34.just want to talk you through the story first of all. This is about
:22:35. > :22:38.fitness trackers and weather they can make you fat or fitter. A lot of
:22:39. > :22:41.you getting in touch with us this morning. This one says, personally I
:22:42. > :22:46.think it makes me smarter and fitter. It lets you check on the
:22:47. > :22:52.amount of calories and nutrients. Where does he get that from, being
:22:53. > :22:59.more smart? Is it about eating smart, do you think? Your thoughts?
:23:00. > :23:02.The story is based on a University of Pittsburgh study which look that
:23:03. > :23:07.500 people over two years. Those who did not have the trackers actually
:23:08. > :23:11.lost more wait, there were people who were doing weight counselling in
:23:12. > :23:15.any case. As Ben was saying earlier, you are thinking that you only have
:23:16. > :23:19.to walk 10,000 steps and everything is all right - that's probably not
:23:20. > :23:22.quite right. I think it is an interesting concept because it is
:23:23. > :23:27.about this kind of outsourcing responsibility for your fitness.
:23:28. > :23:31.It's not about thinking of a work-out plan, it's, I just need to
:23:32. > :23:38.walk 10,000 steps. It's brilliant to get people moving, but then... I
:23:39. > :23:42.haven't got one, but they do more than just how many steps, don't
:23:43. > :23:46.they? Yes, it's smartphones and watches now have got lots of
:23:47. > :23:50.different techniques to outsource health, and there is big business in
:23:51. > :23:55.it. Google and others are trying to get into it. There is that thing,
:23:56. > :23:59.all the gear and no idea. People posting about where they have run,
:24:00. > :24:06.how long they have run for... Clearly you're not a fan! Let's move
:24:07. > :24:13.on! The base rate could lead to any UK mortgages under 1%. Mortgage --
:24:14. > :24:19.mortgage rates, should I say. People will be thinking, yes, please! I
:24:20. > :24:24.think there are some banks where you can get that already, like HSBC, for
:24:25. > :24:32.those with a 35% deposit, you can get a rate of under 1%. Thanks for
:24:33. > :24:39.turning all the viewers about that, I don't mind! I think it's good to
:24:40. > :24:42.be open. I think if the Bank of England cuts at the end of the year,
:24:43. > :24:47.we should see another fall in mortgage rates. It's clearly good
:24:48. > :24:52.for first-time buyers and those looking to switch mortgages. So what
:24:53. > :24:55.is the downside? People might be thinking, I can make those payments,
:24:56. > :24:59.but if the rates go up, even slightly, then people will get
:25:00. > :25:05.indebted to a rate they cannot afford. And we are a bit addicted to
:25:06. > :25:09.cheap money. We expect it always to be cheap and when it goes up, we
:25:10. > :25:14.will suffer. The idea that money is cheap and you can borrow. Our
:25:15. > :25:21.parents generation would be horrified. That's right. The big
:25:22. > :25:23.companies have already got into this, with the impact of
:25:24. > :25:27.quantitative easing on corporate debt. I think the impact of
:25:28. > :25:34.quantitative easing on personal debt will have a similar effect. Nice to
:25:35. > :25:39.see you, James. Are you going to be busy with the Fed decision later
:25:40. > :25:45.today? Definitely, it will be a full day. Busy day for James, and for the
:25:46. > :26:08.rest of us! I will be busy not using my fitness tracker! Bye-bye!
:26:09. > :26:12.Good morning. The mist has arrived, with some dense fog patches across
:26:13. > :26:13.eastern