:00:00. > :00:07.This is Business Live from BBC News with Jamie Robertson
:00:08. > :00:10.All eyes on Italy's beleaguered banking sector.
:00:11. > :00:13.The country's biggest lender slashes jobs and sets
:00:14. > :00:34.Live from London, that's our top story on Tuesday 13th December.
:00:35. > :00:38.Unicredit is just one of Italy's banks struggling with bad debt,
:00:39. > :00:43.and some fear the sector could be a problem for the entire eurozone.
:00:44. > :00:47.The world's most-powerful central bank meets to
:00:48. > :00:56.Will the US Federal Reserve increase the cost of borrowing?
:00:57. > :01:18.All of the markets ended up yesterday.
:01:19. > :01:20.Millions of people will take to the air this festive season,
:01:21. > :01:24.We'll meet the woman whose company provides a chaperone
:01:25. > :01:27.Christmas is coming and some people are calling for us
:01:28. > :01:29.to stop the spending and do more down-to-earth celebrating.
:01:30. > :01:34.Today we want to know, is it possible to enjoy the festive
:01:35. > :01:37.season without spending a lot of money, or is it the perfect
:01:38. > :01:52.Italy's biggest bank Unicredit has announced plans to slash 14,000 jobs
:01:53. > :01:56.and raise $13.8 billion in extra capital.
:01:57. > :01:59.The company has lost half its value this year and is pinning its hopes
:02:00. > :02:02.on a bold rescue plan to turn its fortunes around.
:02:03. > :02:06.Italy's banking sector is giving a lot of cause for concern.
:02:07. > :02:09.Top of the list is the world's oldest bank and Italy's third
:02:10. > :02:12.biggest, Banca Monte dei Paschi di Siena.
:02:13. > :02:16.The European Central Bank believes it is the most vulnerable.
:02:17. > :02:19.This is mainly because it is burdened with toxic debt,
:02:20. > :02:21.in other words loans that are unlikely to ever
:02:22. > :02:24.That's a problem that extends to the Italian
:02:25. > :02:30.So these lenders are trying to get rid of those loans by selling them
:02:31. > :02:34.to investors who specialise in toxic debt.
:02:35. > :02:36.As we've seen with Unicredit, some are also trying
:02:37. > :02:39.to raise new capital to strengthen their books
:02:40. > :02:47.so that they can better cope with future losses on problem loans.
:02:48. > :02:51.With me is Dr Paola Subacchi, director of the International
:02:52. > :02:58.Economics Department at Chatham House.
:02:59. > :03:07.Jamie talking about their new strategy, its plan, thousands of
:03:08. > :03:11.jobs going and more capital investment, is that enough?
:03:12. > :03:19.Probably. Unicredit has a problem with its business model, as opposed
:03:20. > :03:24.to the river bank, which has problems in terms of solvency and
:03:25. > :03:30.liquidity. In terms of Unicredit, if it were to be in trouble in a
:03:31. > :03:33.similar way to the other bank, we would be concerned, because of its
:03:34. > :03:48.size, and concern about contagion elsewhere in Europe? With Monte dei
:03:49. > :03:54.Paschi, we are wondering what to do, it failed yet ago, it has been
:03:55. > :03:59.recapitalised twice, it has gone through several business plans, and
:04:00. > :04:03.it is still stuck. It is a can that has been kicked down the road for
:04:04. > :04:08.too long. If it is continuously kicked and not sorted out,
:04:09. > :04:12.politically it is a big bubble in Italy, but it is not such a big
:04:13. > :04:19.copper in terms of exposure to other banks in Europe? Unicredit is the
:04:20. > :04:22.largest bank in Italy, Monte dei Paschi is the third largest, so they
:04:23. > :04:28.are both important. It is difficult to draw a line, whether one risk is
:04:29. > :04:34.more dangerous than the other. The situation is very difficult. They
:04:35. > :04:40.need to sort out Monte dei Paschi. Monte dei Paschi is a problem for
:04:41. > :04:46.the Government. Unicredit is a problem for their board and their
:04:47. > :04:52.management. Should they not just be bought by the country? In principle,
:04:53. > :05:00.but in practice it is difficult, we have new banking regulations, so
:05:01. > :05:05.technically Monte dei Paschi should be bailed in, so the burden is on
:05:06. > :05:13.shareholders and bondholders. It is difficult. A lot of bad products
:05:14. > :05:20.were sold to the wrong people. A lot of savers, retail savers, got shares
:05:21. > :05:28.and bonds in their hands, so it becomes difficult to say, we will do
:05:29. > :05:36.a bail in, and you take the cost of it. What will happen? With Monte dei
:05:37. > :05:39.Paschi they will explore a market solution, and there will be a
:05:40. > :05:41.partial market solution, and then the Government will step in with a
:05:42. > :05:44.bailout. We will watch this space. China is launching a complaint
:05:45. > :05:47.at the World Trade Organization The complaint says that
:05:48. > :05:50.Washington and Brussels It says they do not accurately
:05:51. > :05:54.calculate whether Chinese goods Countries do this to work out how
:05:55. > :05:59.much to charge in duties to protect their own industries
:06:00. > :06:03.from cheap imports. Donald Trump has delayed
:06:04. > :06:06.an announcement on how he plans to separate his business-empire
:06:07. > :06:07.interests from his The US President-elect had been due
:06:08. > :06:14.to hold a rare press conference on Thursday to discuss how
:06:15. > :06:17.he would deal with perceived Mr Trump's spokesperson
:06:18. > :06:20.said the announcement Japanese brewer Asahi has agreed
:06:21. > :06:33.to buy five Eastern European brands from Anheuser-Busch InBev in a bid
:06:34. > :06:55.to appease competition regulators. Tell us more. Those five Eastern
:06:56. > :07:03.European brands belong to the SAB Miller, which InBev agreed to buy
:07:04. > :07:06.earlier this year. But because we are combining the two biggest
:07:07. > :07:10.brewers, they need to sell off some of their assets to get clearance
:07:11. > :07:14.from competition regulators, and that is where Asahi came in,
:07:15. > :07:20.purchasing five Eastern European brands for $8 billion, it would be
:07:21. > :07:29.their biggest ever takeover deal. It has also announced it will buy a few
:07:30. > :07:37.brands from SAB Miller. Shares in Asahi when the deal was first
:07:38. > :07:39.reported fell by 6%, ending the day 4.5% lower, investors seem to have
:07:40. > :07:44.thought the price tag was too high, with analysts think it is a good
:07:45. > :07:45.deal for the longer term, because Asahi wants to strengthen its
:07:46. > :08:02.presence overseas. All of the market up, but a bit of
:08:03. > :08:06.nervousness, wondering what will happen with the meeting of the
:08:07. > :08:09.Federal reserve about whether interest rates will go up, and what
:08:10. > :08:16.the Federal Reserve says about the the Federal Reserve says about the
:08:17. > :08:23.state of the economy. The FTSE 100 bobbling around. Nervous about what
:08:24. > :08:25.is happening in the knighted States. The European markets hardly moved.
:08:26. > :08:27.And Samira Hussain has the details about what's ahead
:08:28. > :08:36.The Federal Reserve will begin its meeting today, it is almost a
:08:37. > :08:41.certainty that they will vote to raise interest rates. Their economic
:08:42. > :08:46.forecast will be interesting, it will give us a glimpse into whether
:08:47. > :08:52.the American election has reshaped their growth and inflation outlook.
:08:53. > :08:57.Jet blue Airways is holding an investor day, they will talk about
:08:58. > :09:03.in -- expectations for the manned, bookings and trends for 2017. With
:09:04. > :09:06.the holiday season here, it is important to talk about one company
:09:07. > :09:11.that will be speaking to investors, the makers of Scotch tape, the kind
:09:12. > :09:18.you wrap presents with, and the maker of posted pads. They will be
:09:19. > :09:20.hosting a conference call to talk about their financial outlook for
:09:21. > :09:26.2017. Joining us is Jessica Ground,
:09:27. > :09:38.UK equities fund manager, Schroders. There is a lot going on, but the big
:09:39. > :09:44.focus is the Federal Reserve. We think we know what they would say.
:09:45. > :09:51.The initial rate rise is expected, more .25%. But now people are
:09:52. > :09:55.wondering, how much longer does the tightening go on for, especially
:09:56. > :09:59.against the backdrop of more inflation, enter structure spending
:10:00. > :10:05.and higher oil prices. I have read criticism about a Donald Trump room,
:10:06. > :10:10.the idea that the markets are on the up, inflation is on the up, people
:10:11. > :10:15.are getting cynical about that. It is important to think about where we
:10:16. > :10:20.have come from. Bonds and Bond like assets had a fantastic rally for a
:10:21. > :10:26.long time, but we have seen a strong performance since mid-2015. A lot of
:10:27. > :10:33.what we are seeing is not so much a boom, it is an unwinding of people
:10:34. > :10:36.focusing on the safe assets. We have the Federal Reserve, but we have UK
:10:37. > :10:43.information coming out today as well. It will be so interesting. We
:10:44. > :10:52.will start to the impact weaker sterling, starting to nudge a bit
:10:53. > :10:57.higher. We are seeing both input, producers and consumers having
:10:58. > :10:58.pressure. When we get the UK information data, we will update
:10:59. > :10:59.you. We'll meet the woman
:11:00. > :11:06.starting a chaperone service for unaccompanied children taking
:11:07. > :11:20.to the air. I don't think she would take mine,
:11:21. > :11:21.three little boys! I can't pay her enough!
:11:22. > :11:23.You're with Business Live from BBC News.
:11:24. > :11:25.Employers are the most optimistic they've been for two years,
:11:26. > :11:29.according to the latest confidence data from recruitment firm Manpower.
:11:30. > :11:32.It says that more companies are expected to grow their staff
:11:33. > :11:35.in the next year than reduce it, but that the growth is coming
:11:36. > :11:38.from the private sector, with the public sector continuing
:11:39. > :11:42.Marc Cahil is the managing director of Manpower,
:11:43. > :11:55.White? We thought there would be a slowdown in recruitment. People were
:11:56. > :12:03.thinking about how uncertain the times were, around the Brexit vote,
:12:04. > :12:07.but the uncertainty is continuing, so companies are shrugging off the
:12:08. > :12:13.problem. They say, we just have to move forward. As we have mentioned,
:12:14. > :12:22.the public sector seen cutbacks, which we can continue, because of
:12:23. > :12:24.the -- we can understand, because of the Government cutbacks, so where is
:12:25. > :12:33.the growth? Utility and construction. In utility, we need
:12:34. > :12:37.smart meters in all homes by 2018, I believe, which create something like
:12:38. > :12:44.20,000 roles, and a lot of customer service roles. In construction, we
:12:45. > :12:48.heard investment from the Chancellor in the Autumn Statement, so that
:12:49. > :12:53.will be a good, positive one for us. We have heard some dire stories from
:12:54. > :12:59.recruitment agencies in financial services, do you have anything on
:13:00. > :13:02.that? We split it into two, we believe the banking sector is
:13:03. > :13:08.showing negativity, not quite so optimistic for Q1 next year, but
:13:09. > :13:17.financial services are looking OK, especially in the London area.
:13:18. > :13:27.And not on our page today about Southern Rail, a 48 hour strike
:13:28. > :13:34.started at midnight last night, the Aslef union striking, it is a
:13:35. > :13:40.nightmare. There is a Southern Rail strike life page with updates, there
:13:41. > :13:42.was an update one minute ago, providing as much information as
:13:43. > :13:47.possible. In many ways this is the big
:13:48. > :13:50.business story for people who live in that area. When you bear in mind
:13:51. > :13:53.how many people... 300,000 passengers usually use this
:13:54. > :13:57.service. It is all on the website. Our top story, Italy's biggest
:13:58. > :14:02.lender is slashing 14,000 jobs and raising almost $14 billion
:14:03. > :14:06.in new capital. Unicredit has lost half
:14:07. > :14:08.its value this year. The country's banking sector
:14:09. > :14:11.is giving cause for concern as it struggles with huge amounts
:14:12. > :14:15.of bad debt. A quick look at how
:14:16. > :14:27.markets are faring. The markets in Italy are moving all
:14:28. > :14:33.the time, yo-yoing depending on the speculation about the rescue of the
:14:34. > :14:36.banks. In Europe it is mixed. The market is treading water globally
:14:37. > :14:38.until we get the news from the Federal Reserve tomorrow in terms of
:14:39. > :14:42.the cost of borrowing. It's never easy putting your child
:14:43. > :14:45.on a plane but it could be made easier if only you could
:14:46. > :14:47.have a nanny on board. Well, here's Air Nanny
:14:48. > :14:49.to the rescue. It's a professional chaperone
:14:50. > :14:54.service, was launched last month. How much demand could there
:14:55. > :14:58.be for this service? Well, more and more children
:14:59. > :15:00.are travelling long-haul, with over half of children doing
:15:01. > :15:03.so before the age of four. According to figures released
:15:04. > :15:07.by London's Heathrow Airport, one in ten children will do so,
:15:08. > :15:10.before their first birthday. Yet, companies like British Airways,
:15:11. > :15:12.are scrapping their popular The Air Nanny believes
:15:13. > :15:19.its professional chaperone It provides tailor-made packages
:15:20. > :15:25.starting from ?1,000, This is all the brainchild
:15:26. > :15:30.of Angela Enel who is the founder of The Air Nanny and Angela
:15:31. > :15:44.joins me now. It h morphed from the hotel nanny.
:15:45. > :15:49.I'm thinking who on earth would want to take my three boys on the plane?
:15:50. > :15:56.Would it ?1,000 per boy? Goodness, no. That's better! That already
:15:57. > :16:02.sounds better! Goodness me, that would be
:16:03. > :16:05.expensive. No, it is one private nanny per family so regardless of
:16:06. > :16:11.the amount of children. What made you launch this? Was it something
:16:12. > :16:14.you saw a demand for because of course Hotel Nanny has been going
:16:15. > :16:19.for sometime? Yes, with the luxury hotel industry. With the Air Nanny
:16:20. > :16:25.it came from an experience with a friend of mine who was newly
:16:26. > :16:28.divorced and who was having problems getting her children over to New
:16:29. > :16:33.York where her ex-husband was living and finding a sustainable and viable
:16:34. > :16:38.service that could do that trip with her child, two, three, four, five
:16:39. > :16:42.times a year. At the top end of the market which is the end you're
:16:43. > :16:47.looking for, one of your prime markets is the Gulf and some
:16:48. > :16:56.airlines provide their own service. Isn't that a problem? No, not
:16:57. > :17:00.specifically. Some car injuries the flying nanny. That's the
:17:01. > :17:04.stewardesses on board and they are there to look after the families,
:17:05. > :17:08.heating the milk and when those jobs are done they go back to their air
:17:09. > :17:13.stewarding. So it is a different service? It is a different service.
:17:14. > :17:17.Ours is a private nanny service to fly with the children, from their
:17:18. > :17:23.home if they need it or from the airport to the home of the father or
:17:24. > :17:28.the mother on the other side. The nannies, they're employees of yours,
:17:29. > :17:34.aren't they? Yes. They are not on a freelance basis? No. Isn't that high
:17:35. > :17:39.cost? They are zero-hours contract, aren't they? Yes, at the moment, but
:17:40. > :17:43.we are looking to extend that. We will be extending to part-time and
:17:44. > :17:47.full-time nanny pogsz, but they are zero-hours at the moment, but that's
:17:48. > :17:51.how we can retain and really keep key nannies and really the high
:17:52. > :17:58.calibre that we are very well known for. We know Mary Poppins of course
:17:59. > :18:07.which is the best nanny out there. I know she is a fictional character...
:18:08. > :18:13.We have lots of them. No mannies on your website? That's a good point.
:18:14. > :18:18.We did have some mannies on our team, but there really wasn't a lot
:18:19. > :18:26.of demand for them I have to say. Really purely because our customer
:18:27. > :18:30.base is specifically 80% of our customers have toddlers or newborns
:18:31. > :18:36.and I found the mannies were very much in their space with the older
:18:37. > :18:41.children and that's where they really came into their own, but for
:18:42. > :18:46.us specifically, it didn't work as well. Tell me about who you're
:18:47. > :18:51.marketing this to and how you market it? Do you use social media? Yes, of
:18:52. > :18:57.course. That really has to be the case. As well as going directly to
:18:58. > :19:01.the key markets that we opened this service for, obviously I've
:19:02. > :19:08.mentioned that the Air Nanny was established very much from having
:19:09. > :19:11.that experience with a friend, newly divorced, so divorce lawyers for
:19:12. > :19:15.example are a target for us that we're speaking and opening up
:19:16. > :19:19.conversations with that as offering that intermediary service. It is the
:19:20. > :19:23.one consistent time that parents find it very difficult to make that
:19:24. > :19:27.trip especially if they're executives and have demanding roles
:19:28. > :19:34.to take time out to travel to and from. Something you're looking into
:19:35. > :19:38.in the future is corporate? It is a very big space and exciting space.
:19:39. > :19:41.How will it work? This is where we are speaking and we have already
:19:42. > :19:45.opened up discussions with some of the Big Four. So this is a very...
:19:46. > :19:51.Big Four what? The financial services. I thought you meant the
:19:52. > :19:56.Big Four families! The Big Four dynasties and the grand
:19:57. > :20:02.charn? Well that, too! Something that's very dear to my hear as well
:20:03. > :20:06.obviously is to keep female executives in the boardroom and to
:20:07. > :20:11.nurture that space for females keeping. The nanny will be in the
:20:12. > :20:20.workplace? The nanny will be offering the support service for
:20:21. > :20:27.when female executives... It is the kind of thing the CEO of Yahoo would
:20:28. > :20:31.have had. Yes, if somebody has two, three, four conferences a year it is
:20:32. > :20:39.hard to go away abroad two or three day to say attend training events or
:20:40. > :20:42.conferences. So our service and our offering with the Hotel Nanny and
:20:43. > :20:48.the Air Nanny is bringing that corporate offering. Because it has
:20:49. > :20:52.been spun off or extended out from the Hotel Nanny, it is almost all
:20:53. > :20:55.profit. Every time you send somebody out, you're making a profit because
:20:56. > :21:00.you don't have that capital cost at the beginning? Right. There has been
:21:01. > :21:06.a fair amount at the beginning, of course. People, I mean, employing
:21:07. > :21:10.people and behind the scenes that takes a lot of cost to make sure
:21:11. > :21:17.that we are working a seamless operation and a very high-end
:21:18. > :21:23.operation so really the concierge polish to what we give clients and
:21:24. > :21:29.marketing. Any disasters? You marketing. Any disasters? You
:21:30. > :21:34.haven't lost anyone? No. Goodness, no, we are filling that space
:21:35. > :21:39.because there has been lost children in the space before. So we are
:21:40. > :21:43.coming as a solution to be their holding the children's hands all the
:21:44. > :21:47.way through. I know how hard that is. I have three and it is not easy
:21:48. > :21:51.at all! Cuba's state-run telecommunications
:21:52. > :21:55.company has signed an agreement with the internet provider,
:21:56. > :21:57.Google, in Havana. Under the deal the company can
:21:58. > :22:00.install servers in Cuba which should significantly improve connectivity
:22:01. > :22:01.speeds to Google content. Cuba currently has some
:22:02. > :22:03.of the lowest online The agreement reached
:22:04. > :22:13.between the Cuban government and the internet giant should pave
:22:14. > :22:16.the way towards something many Cubans have wanted for years -
:22:17. > :22:21.faster Internet speeds. By allowing Google to install
:22:22. > :22:23.servers on the Communist-run island, their key content, such as Gmail,
:22:24. > :22:26.Google Drive and YouTube, should be much quicker for users
:22:27. > :22:31.inside Cuba to access. The deal does not, however,
:22:32. > :22:37.either expand Cuba's aged and obsolete internet infrastructure
:22:38. > :22:40.nor improve the connectivity Most Cubans are still not permitted
:22:41. > :22:50.to have the internet at home and instead must rely
:22:51. > :22:52.on expensive public-access wi-fi As the deal has been
:22:53. > :23:03.reached in the final weeks of the Obama Administration,
:23:04. > :23:05.officials on both sides seem keen the cement their months
:23:06. > :23:07.of negotiations into hard contracts As a candidate, Mr Trump
:23:08. > :23:10.made arguments both for and against improved
:23:11. > :23:12.ties with Cuba. And there is some uncertainty
:23:13. > :23:35.on the island as to what his Donald Trump is everywhere. We can't
:23:36. > :23:40.get away from it! This story in the New York Times looks at the fact
:23:41. > :23:43.that the Secretary of State has been hand-picked? He has gone from a
:23:44. > :23:47.businessman to be a Secretary of State. So America's main voice on
:23:48. > :23:55.the world stage. Not any businessman? An oil man? He has been
:23:56. > :23:58.chairman of ex--on for ten years and he made that company his own. He has
:23:59. > :24:04.driven it out around the world and taken it around the Gulf and to
:24:05. > :24:09.Russia. He did a big deal with the main commercial arm of the Kremlin
:24:10. > :24:15.in 2011. He has known Putin for 20 years? He got an Order of Merit from
:24:16. > :24:18.the Kremlin. Ironically, ex--on hasn't been able to take money out
:24:19. > :24:22.of the deal because of US sanctions against Russia because of the
:24:23. > :24:29.Ukraine. It is interesting that he's chairman and Chief Executive. This
:24:30. > :24:33.is chrkistic of the Trump ethos? It is common to put the two together.
:24:34. > :24:39.It was Chief Executive in 2006 I think it was he became both. This
:24:40. > :24:44.man, he has written for the Guardian is dreaming of a frugile Christmas.
:24:45. > :24:50.Meet the people who stopped shopping? It is an extension of the
:24:51. > :24:57.idea of the moneyless consumer. So there are people out there who try
:24:58. > :25:02.and spend as little as possible but they specialise at Christmas and not
:25:03. > :25:06.spend any money at Christmas. Give people your time. What would happen
:25:07. > :25:10.to the global economy if we didn't spend money at Christmas? All
:25:11. > :25:14.retailers would be bust! The average retailer makes a third of their
:25:15. > :25:20.profits every year from Christmas. Jeffrey is a dancer from Canada who
:25:21. > :25:30.is in the middle of a buy nothing year apparently. Joe says, "I really
:25:31. > :25:38.enjoying shopping. Maybe too much." Anna Liza says, "I'm broke." This
:25:39. > :25:43.guy in the top says all he got from Christmas was gaffer tape and
:25:44. > :25:49.tinfoil and he was happy with that! There is a reaction of over
:25:50. > :25:56.commercialisation of Christmas. Whether you can spend no money at
:25:57. > :25:58.all? This is surrounded by adverts for things!
:25:59. > :26:16.Hello. Good morning. We've got quite mixed weather conditions today, but
:26:17. > :26:17.for just about all of us, it is cloudy with hill fog patches and
:26:18. > :26:19.we've got