13/12/2016 BBC Business Live

This is Business Live from BBC News with Jamie Robertson

All eyes on Italy's beleaguered banking sector.

The country's biggest lender slashes jobs and sets

Live from London, that's our top story on Tuesday 13th December.

Unicredit is just one of Italy's banks struggling with bad debt,

and some fear the sector could be a problem for the entire eurozone.

The world's most-powerful central bank meets to

Will the US Federal Reserve increase the cost of borrowing?

All of the markets ended up yesterday.

Millions of people will take to the air this festive season,

We'll meet the woman whose company provides a chaperone

Christmas is coming and some people are calling for us

to stop the spending and do more down-to-earth celebrating.

Today we want to know, is it possible to enjoy the festive

season without spending a lot of money, or is it the perfect

Italy's biggest bank Unicredit has announced plans to slash 14,000 jobs

and raise $13.8 billion in extra capital.

The company has lost half its value this year and is pinning its hopes

on a bold rescue plan to turn its fortunes around.

Italy's banking sector is giving a lot of cause for concern.

Top of the list is the world's oldest bank and Italy's third

biggest, Banca Monte dei Paschi di Siena.

The European Central Bank believes it is the most vulnerable.

This is mainly because it is burdened with toxic debt,

in other words loans that are unlikely to ever

That's a problem that extends to the Italian

So these lenders are trying to get rid of those loans by selling them

to investors who specialise in toxic debt.

As we've seen with Unicredit, some are also trying

to raise new capital to strengthen their books

so that they can better cope with future losses on problem loans.

With me is Dr Paola Subacchi, director of the International

Economics Department at Chatham House.

Jamie talking about their new strategy, its plan, thousands of

jobs going and more capital investment, is that enough?

Probably. Unicredit has a problem with its business model, as opposed

to the river bank, which has problems in terms of solvency and

liquidity. In terms of Unicredit, if it were to be in trouble in a

similar way to the other bank, we would be concerned, because of its

size, and concern about contagion elsewhere in Europe? With Monte dei

Paschi, we are wondering what to do, it failed yet ago, it has been

recapitalised twice, it has gone through several business plans, and

it is still stuck. It is a can that has been kicked down the road for

too long. If it is continuously kicked and not sorted out,

politically it is a big bubble in Italy, but it is not such a big

copper in terms of exposure to other banks in Europe? Unicredit is the

largest bank in Italy, Monte dei Paschi is the third largest, so they

are both important. It is difficult to draw a line, whether one risk is

more dangerous than the other. The situation is very difficult. They

need to sort out Monte dei Paschi. Monte dei Paschi is a problem for

the Government. Unicredit is a problem for their board and their

management. Should they not just be bought by the country? In principle,

but in practice it is difficult, we have new banking regulations, so

technically Monte dei Paschi should be bailed in, so the burden is on

shareholders and bondholders. It is difficult. A lot of bad products

were sold to the wrong people. A lot of savers, retail savers, got shares

and bonds in their hands, so it becomes difficult to say, we will do

a bail in, and you take the cost of it. What will happen? With Monte dei

Paschi they will explore a market solution, and there will be a

partial market solution, and then the Government will step in with a

bailout. We will watch this space. China is launching a complaint

at the World Trade Organization The complaint says that

Washington and Brussels It says they do not accurately

calculate whether Chinese goods Countries do this to work out how

much to charge in duties to protect their own industries

from cheap imports. Donald Trump has delayed

an announcement on how he plans to separate his business-empire

interests from his The US President-elect had been due

to hold a rare press conference on Thursday to discuss how

he would deal with perceived Mr Trump's spokesperson

said the announcement Japanese brewer Asahi has agreed

to buy five Eastern European brands from Anheuser-Busch InBev in a bid

to appease competition regulators. Tell us more. Those five Eastern

European brands belong to the SAB Miller, which InBev agreed to buy

earlier this year. But because we are combining the two biggest

brewers, they need to sell off some of their assets to get clearance

from competition regulators, and that is where Asahi came in,

purchasing five Eastern European brands for $8 billion, it would be

their biggest ever takeover deal. It has also announced it will buy a few

brands from SAB Miller. Shares in Asahi when the deal was first

reported fell by 6%, ending the day 4.5% lower, investors seem to have

thought the price tag was too high, with analysts think it is a good

deal for the longer term, because Asahi wants to strengthen its

presence overseas. All of the market up, but a bit of

nervousness, wondering what will happen with the meeting of the

Federal reserve about whether interest rates will go up, and what

the Federal Reserve says about the the Federal Reserve says about the

state of the economy. The FTSE 100 bobbling around. Nervous about what

is happening in the knighted States. The European markets hardly moved.

And Samira Hussain has the details about what's ahead

The Federal Reserve will begin its meeting today, it is almost a

certainty that they will vote to raise interest rates. Their economic

forecast will be interesting, it will give us a glimpse into whether

the American election has reshaped their growth and inflation outlook.

Jet blue Airways is holding an investor day, they will talk about

in -- expectations for the manned, bookings and trends for 2017. With

the holiday season here, it is important to talk about one company

that will be speaking to investors, the makers of Scotch tape, the kind

you wrap presents with, and the maker of posted pads. They will be

hosting a conference call to talk about their financial outlook for

2017. Joining us is Jessica Ground,

UK equities fund manager, Schroders. There is a lot going on, but the big

focus is the Federal Reserve. We think we know what they would say.

The initial rate rise is expected, more .25%. But now people are

wondering, how much longer does the tightening go on for, especially

against the backdrop of more inflation, enter structure spending

and higher oil prices. I have read criticism about a Donald Trump room,

the idea that the markets are on the up, inflation is on the up, people

are getting cynical about that. It is important to think about where we

have come from. Bonds and Bond like assets had a fantastic rally for a

long time, but we have seen a strong performance since mid-2015. A lot of

what we are seeing is not so much a boom, it is an unwinding of people

focusing on the safe assets. We have the Federal Reserve, but we have UK

information coming out today as well. It will be so interesting. We

will start to the impact weaker sterling, starting to nudge a bit

higher. We are seeing both input, producers and consumers having

pressure. When we get the UK information data, we will update

you. We'll meet the woman

starting a chaperone service for unaccompanied children taking

to the air. I don't think she would take mine,

three little boys! I can't pay her enough!

You're with Business Live from BBC News.

Employers are the most optimistic they've been for two years,

according to the latest confidence data from recruitment firm Manpower.

It says that more companies are expected to grow their staff

in the next year than reduce it, but that the growth is coming

from the private sector, with the public sector continuing

Marc Cahil is the managing director of Manpower,

White? We thought there would be a slowdown in recruitment. People were

thinking about how uncertain the times were, around the Brexit vote,

but the uncertainty is continuing, so companies are shrugging off the

problem. They say, we just have to move forward. As we have mentioned,

the public sector seen cutbacks, which we can continue, because of

the -- we can understand, because of the Government cutbacks, so where is

the growth? Utility and construction. In utility, we need

smart meters in all homes by 2018, I believe, which create something like

20,000 roles, and a lot of customer service roles. In construction, we

heard investment from the Chancellor in the Autumn Statement, so that

will be a good, positive one for us. We have heard some dire stories from

recruitment agencies in financial services, do you have anything on

that? We split it into two, we believe the banking sector is

showing negativity, not quite so optimistic for Q1 next year, but

financial services are looking OK, especially in the London area.

And not on our page today about Southern Rail, a 48 hour strike

started at midnight last night, the Aslef union striking, it is a

nightmare. There is a Southern Rail strike life page with updates, there

was an update one minute ago, providing as much information as

possible. In many ways this is the big

business story for people who live in that area. When you bear in mind

how many people... 300,000 passengers usually use this

service. It is all on the website. Our top story, Italy's biggest

lender is slashing 14,000 jobs and raising almost $14 billion

in new capital. Unicredit has lost half

its value this year. The country's banking sector

is giving cause for concern as it struggles with huge amounts

of bad debt. A quick look at how

markets are faring. The markets in Italy are moving all

the time, yo-yoing depending on the speculation about the rescue of the

banks. In Europe it is mixed. The market is treading water globally

until we get the news from the Federal Reserve tomorrow in terms of

the cost of borrowing. It's never easy putting your child

on a plane but it could be made easier if only you could

have a nanny on board. Well, here's Air Nanny

to the rescue. It's a professional chaperone

service, was launched last month. How much demand could there

be for this service? Well, more and more children

are travelling long-haul, with over half of children doing

so before the age of four. According to figures released

by London's Heathrow Airport, one in ten children will do so,

before their first birthday. Yet, companies like British Airways,

are scrapping their popular The Air Nanny believes

its professional chaperone It provides tailor-made packages

starting from ?1,000, This is all the brainchild

of Angela Enel who is the founder of The Air Nanny and Angela

joins me now. It h morphed from the hotel nanny.

I'm thinking who on earth would want to take my three boys on the plane?

Would it ?1,000 per boy? Goodness, no. That's better! That already

sounds better! Goodness me, that would be

expensive. No, it is one private nanny per family so regardless of

the amount of children. What made you launch this? Was it something

you saw a demand for because of course Hotel Nanny has been going

for sometime? Yes, with the luxury hotel industry. With the Air Nanny

it came from an experience with a friend of mine who was newly

divorced and who was having problems getting her children over to New

York where her ex-husband was living and finding a sustainable and viable

service that could do that trip with her child, two, three, four, five

times a year. At the top end of the market which is the end you're

looking for, one of your prime markets is the Gulf and some

airlines provide their own service. Isn't that a problem? No, not

specifically. Some car injuries the flying nanny. That's the

stewardesses on board and they are there to look after the families,

heating the milk and when those jobs are done they go back to their air

stewarding. So it is a different service? It is a different service.

Ours is a private nanny service to fly with the children, from their

home if they need it or from the airport to the home of the father or

the mother on the other side. The nannies, they're employees of yours,

aren't they? Yes. They are not on a freelance basis? No. Isn't that high

cost? They are zero-hours contract, aren't they? Yes, at the moment, but

we are looking to extend that. We will be extending to part-time and

full-time nanny pogsz, but they are zero-hours at the moment, but that's

how we can retain and really keep key nannies and really the high

calibre that we are very well known for. We know Mary Poppins of course

which is the best nanny out there. I know she is a fictional character...

We have lots of them. No mannies on your website? That's a good point.

We did have some mannies on our team, but there really wasn't a lot

of demand for them I have to say. Really purely because our customer

base is specifically 80% of our customers have toddlers or newborns

and I found the mannies were very much in their space with the older

children and that's where they really came into their own, but for

us specifically, it didn't work as well. Tell me about who you're

marketing this to and how you market it? Do you use social media? Yes, of

course. That really has to be the case. As well as going directly to

the key markets that we opened this service for, obviously I've

mentioned that the Air Nanny was established very much from having

that experience with a friend, newly divorced, so divorce lawyers for

example are a target for us that we're speaking and opening up

conversations with that as offering that intermediary service. It is the

one consistent time that parents find it very difficult to make that

trip especially if they're executives and have demanding roles

to take time out to travel to and from. Something you're looking into

in the future is corporate? It is a very big space and exciting space.

How will it work? This is where we are speaking and we have already

opened up discussions with some of the Big Four. So this is a very...

Big Four what? The financial services. I thought you meant the

Big Four families! The Big Four dynasties and the grand

charn? Well that, too! Something that's very dear to my hear as well

obviously is to keep female executives in the boardroom and to

nurture that space for females keeping. The nanny will be in the

workplace? The nanny will be offering the support service for

when female executives... It is the kind of thing the CEO of Yahoo would

have had. Yes, if somebody has two, three, four conferences a year it is

hard to go away abroad two or three day to say attend training events or

conferences. So our service and our offering with the Hotel Nanny and

the Air Nanny is bringing that corporate offering. Because it has

been spun off or extended out from the Hotel Nanny, it is almost all

profit. Every time you send somebody out, you're making a profit because

you don't have that capital cost at the beginning? Right. There has been

a fair amount at the beginning, of course. People, I mean, employing

people and behind the scenes that takes a lot of cost to make sure

that we are working a seamless operation and a very high-end

operation so really the concierge polish to what we give clients and

marketing. Any disasters? You marketing. Any disasters? You

haven't lost anyone? No. Goodness, no, we are filling that space

because there has been lost children in the space before. So we are

coming as a solution to be their holding the children's hands all the

way through. I know how hard that is. I have three and it is not easy

at all! Cuba's state-run telecommunications

company has signed an agreement with the internet provider,

Google, in Havana. Under the deal the company can

install servers in Cuba which should significantly improve connectivity

speeds to Google content. Cuba currently has some

of the lowest online The agreement reached

between the Cuban government and the internet giant should pave

the way towards something many Cubans have wanted for years -

faster Internet speeds. By allowing Google to install

servers on the Communist-run island, their key content, such as Gmail,

Google Drive and YouTube, should be much quicker for users

inside Cuba to access. The deal does not, however,

either expand Cuba's aged and obsolete internet infrastructure

nor improve the connectivity Most Cubans are still not permitted

to have the internet at home and instead must rely

on expensive public-access wi-fi As the deal has been

reached in the final weeks of the Obama Administration,

officials on both sides seem keen the cement their months

of negotiations into hard contracts As a candidate, Mr Trump

made arguments both for and against improved

ties with Cuba. And there is some uncertainty

on the island as to what his Donald Trump is everywhere. We can't

get away from it! This story in the New York Times looks at the fact

that the Secretary of State has been hand-picked? He has gone from a

businessman to be a Secretary of State. So America's main voice on

the world stage. Not any businessman? An oil man? He has been

chairman of ex--on for ten years and he made that company his own. He has

driven it out around the world and taken it around the Gulf and to

Russia. He did a big deal with the main commercial arm of the Kremlin

in 2011. He has known Putin for 20 years? He got an Order of Merit from

the Kremlin. Ironically, ex--on hasn't been able to take money out

of the deal because of US sanctions against Russia because of the

Ukraine. It is interesting that he's chairman and Chief Executive. This

is chrkistic of the Trump ethos? It is common to put the two together.

It was Chief Executive in 2006 I think it was he became both. This

man, he has written for the Guardian is dreaming of a frugile Christmas.

Meet the people who stopped shopping? It is an extension of the

idea of the moneyless consumer. So there are people out there who try

and spend as little as possible but they specialise at Christmas and not

spend any money at Christmas. Give people your time. What would happen

to the global economy if we didn't spend money at Christmas? All

retailers would be bust! The average retailer makes a third of their

profits every year from Christmas. Jeffrey is a dancer from Canada who

is in the middle of a buy nothing year apparently. Joe says, "I really

enjoying shopping. Maybe too much." Anna Liza says, "I'm broke." This

guy in the top says all he got from Christmas was gaffer tape and

tinfoil and he was happy with that! There is a reaction of over

commercialisation of Christmas. Whether you can spend no money at

all? This is surrounded by adverts for things!

Hello. Good morning. We've got quite mixed weather conditions today, but

for just about all of us, it is cloudy with hill fog patches and

we've got