13/12/2016 BBC Business Live


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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


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