:00:15. > :00:18.We start in Japan where Prime Minister Shinzo Abe is hosting
:00:19. > :00:21.Russian President Vladimir Putin at a summit in Tokyo.
:00:22. > :00:24.He's the first G7 leader to host Mr Putin since
:00:25. > :00:29.sanctions were imposed over the Ukraine conflict.
:00:30. > :00:32.That's not the only reason it's a big deal.
:00:33. > :00:36.The two countries have never signed a peace treaty formally
:00:37. > :00:38.ending World War Two because they are still
:00:39. > :00:41.in dispute over four islands in the Western Pacific,
:00:42. > :00:46.which Soviet forces occupied at the end of the war.
:00:47. > :00:50.But the reality is they have a serious business relationship
:00:51. > :01:00.Trade between Russia and Japan has soared in recent years.
:01:01. > :01:03.It is now worth more than $33 billion a year.
:01:04. > :01:07.That's three times what it was ten years ago.
:01:08. > :01:12.Japan is cash-rich and Russia is desperate for investment,
:01:13. > :01:15.particularly to its far eastern region.
:01:16. > :01:20.Russian officials say some 68 deals have already been signed.
:01:21. > :01:23.There are reports that its huge state gas company Gazprom
:01:24. > :01:25.is exploring partnerships with Japanese conglomerates
:01:26. > :01:40.Basically, Japan needs all of its energy brought in.
:01:41. > :01:42.At the moment it relies on the Arabian Gulf -
:01:43. > :01:45.but Russia has huge amounts and is on its doorstep.
:01:46. > :01:47.It also wants help with issues like cyber security.
:01:48. > :01:49.Chris Weafer is the co-founder of analysts Macro Advisory Partners.
:01:50. > :02:02.Welcome to the programme. Darren Cave is that background, but in the
:02:03. > :02:06.headlines we have also heard that Barack Obama, still US president,
:02:07. > :02:10.has said they will tackle the hacking situation that came from
:02:11. > :02:13.Russia. We have heard also that EU leaders want to extend sanctions
:02:14. > :02:19.against Russia for another six months. None of this seems to
:02:20. > :02:23.concern Shinzo Abe? Know, and it is not concerning investors. The
:02:24. > :02:26.markets are strongly this year, just this week we heard that German
:02:27. > :02:31.companies have invested more in Russia this year in the first nine
:02:32. > :02:33.months than in all of 2015. People are beginning to look beyond the
:02:34. > :02:38.Obama administration so it will end Obama administration so it will end
:02:39. > :02:40.in January when Donald Trump comes in with a different agenda, it is
:02:41. > :02:45.also clear that the EU struggles more and more each meeting to get a
:02:46. > :02:49.consensus to end sanctions. The view that business and investors take is
:02:50. > :02:53.that we are nearly at the end, provided nothing bad happens in
:02:54. > :02:56.2017. As Aaron points out, the
:02:57. > :03:02.relationship between Russia and Japan makes a lot of sense, Japan is
:03:03. > :03:07.energy poor and cashrich, Russia has a lot of energy. These energy deals
:03:08. > :03:10.could be worked through? Both countries were talking about energy
:03:11. > :03:16.cooperation before sanctions, we are getting back to that agenda again.
:03:17. > :03:20.They say there is a lot of energy in Russia and it is very close to
:03:21. > :03:25.Japan. Japan is looking at the fact that its neighbour, South Korea, has
:03:26. > :03:30.been raising investment quite substantially in Russia and Central
:03:31. > :03:36.Asia and does not want to lose out. From the Japanese perspective there
:03:37. > :03:40.is either the issue of China and Chinese dominance affecting Russia,
:03:41. > :03:45.perhaps they can act as a moderating influence, rather than if it was
:03:46. > :03:47.entirely sided with China, which is a great fear.
:03:48. > :03:52.You look at the picture of Russia and President Putin and you go, what
:03:53. > :04:00.is going on? Cooperation with the Saudis, a deal with Qatar, deals
:04:01. > :04:06.with Japan, Putin has this... More of a global vision today? We have
:04:07. > :04:10.seen that evolving, particularly since 2014. President Putin bemoaned
:04:11. > :04:14.the fact that what he saw was Russia had moved too closely to the west,
:04:15. > :04:21.it was going to put all its eggs in one basket. In 2014 there was almost
:04:22. > :04:25.a knee jerk reaction to the China pivot, that has not worked out.
:04:26. > :04:30.China has not invested much. Since the last year we have seen Russia
:04:31. > :04:34.adopting globalisation, diversification, trying to do as
:04:35. > :04:38.many deals as possible for the Kremlin. That is good business and
:04:39. > :04:43.good politics. I think globalisation will be the way forward.
:04:44. > :04:46.Looking forward briefly, how does that tell you about trade deals and
:04:47. > :04:50.how they will go in the future, we are looking at more bilateral
:04:51. > :04:58.country to country and putting aside these big multi-country deals? The
:04:59. > :05:00.belt this is a discussion about globalisation -- this is a
:05:01. > :05:05.discussion about globalisation and there is thought that it is coming
:05:06. > :05:10.to an end. If the Trump administration follows through, it
:05:11. > :05:14.will mark the end of the old-style globalisation. Bilateral deals, I
:05:15. > :05:19.think bartering is as good a word as any. Russia has always been good at
:05:20. > :05:21.that and that is the intention, we have energy or whatever rocks, in
:05:22. > :05:28.return we want investment political support. Bilateral deals,
:05:29. > :05:30.old-fashioned bartering is where we are heading.
:05:31. > :05:33.Thank you very much for your time this morning. Have a good weekend.
:05:34. > :05:36.Pressure on Yahoo has continued to grow after the internet company
:05:37. > :05:38.revealed that it was the victim of another huge hacking attack
:05:39. > :05:50.in 2013 - in which 1 billion user accounts were accessed.
:05:51. > :05:56.The hack was done in 2013, that was revealed yesterday, that it was 1
:05:57. > :05:57.billion people. The company's shares closed down
:05:58. > :06:00.more than 6% on Wall Street on fears that a planned $4.8 billion sale
:06:01. > :06:02.to telecoms firm Verizon According to reports in the US,
:06:03. > :06:06.Verizon is now trying to persuade Yahoo to amend the terms
:06:07. > :06:08.of the acquisition agreement The Greek parliament has defied
:06:09. > :06:11.international creditors providing its bailout funds
:06:12. > :06:13.and voted through a one-off Plans for the 617 million euro
:06:14. > :06:19.pre-Christmas handout were opposed by European bodies negotiating
:06:20. > :06:21.Greece's financial lifeline. A deal agreed earlier this month
:06:22. > :06:25.to provide the next tranche of debt Prime Minister Alexis Tsipras said
:06:26. > :06:35.Greece would not be blackmailed. US authorities have accused six
:06:36. > :06:40.pharmaceutical firms from the US, It is alleged the companies
:06:41. > :06:44.conspired to raise the price of the antibiotic doxycycline
:06:45. > :06:53.and diabetes drug glyburide. The civil lawsuit has been
:06:54. > :06:57.filed in 20 US states. It follows criminal charges being
:06:58. > :06:59.brought against former executives Figures from the US Treasury show
:07:00. > :07:11.that Japan has overtaken China China has been selling its foreign
:07:12. > :07:15.currency reserves in a bid to prop John Sudworth is in our Beijing
:07:16. > :07:31.bureau and can tell us more. Good to see you, happy Friday. Japan
:07:32. > :07:37.holds more debt, US debt, than any other country in the world?
:07:38. > :07:41.That's right, it has taken the crown back, if you like, as the biggest
:07:42. > :07:46.holder of US debt. It is not because of what it has been doing but what
:07:47. > :07:52.China has been doing, selling off US Treasuries. What China wants at the
:07:53. > :07:56.moment, basically, is dollar assets to use them to prop up the value of
:07:57. > :08:03.its currency, which isn't a huge amount of pressure. All of the
:08:04. > :08:09.debate we heard in the US election cycle about China devaluing its
:08:10. > :08:14.currency, the truth is that all the action is focused on trying to prop
:08:15. > :08:20.up the value, because China fears a rapid and uncontrolled devaluation,
:08:21. > :08:27.and the more likely it looks that US interest rates will rise further,
:08:28. > :08:31.the more pressure it puts on the Chinese UN and the more that has to
:08:32. > :08:35.be done to stem the tide of capital rushing for the exit. What does it
:08:36. > :08:39.mean for the rest of us? Good question. China is burning through
:08:40. > :08:45.its foreign currency reserves for the same purpose, added some point
:08:46. > :08:49.China may need to consider either a devaluation or putting in place
:08:50. > :08:54.stringent capital controls. But, of course, would send a shocking signal
:08:55. > :08:59.to the rest of the economy and indeed be likely to have an impact
:09:00. > :09:02.on us all elsewhere in the world. John, I am glad you raise the
:09:03. > :09:07.question and answer that, because I was opposed to! Bet I was supposed
:09:08. > :09:08.to. Asian stocks struggled for traction
:09:09. > :09:10.on Friday as global markets continued adjusting to the idea
:09:11. > :09:13.of higher US interest rates. Remembering a lot of those emerging
:09:14. > :09:16.economies are holding US dollar debt and higher interest rates in America
:09:17. > :09:18.- makes that debt more Europe - pretty much the same story
:09:19. > :09:26.- still digesting the FED decision and looking to Wall Street -
:09:27. > :09:29.which I must say had its worst day in two months or put it this way -
:09:30. > :09:33.four stocks fell for every one that Talking of the US - let's pop over
:09:34. > :09:42.and see what should be making the biz headlines
:09:43. > :09:51.today, here's Samira. Investors will be looking for more
:09:52. > :09:56.fallout from the revelation that Yahoo faced a massive data breach
:09:57. > :10:00.affecting 1 billion customers. How is the US housing market herring
:10:01. > :10:04.these days? The commerce Department is expected to say that housing
:10:05. > :10:06.starts fell in the month of November.
:10:07. > :10:11.Building permits are expected to slip for the month. With the recent
:10:12. > :10:15.rise to US interest rates, many will be paying attention to the housing
:10:16. > :10:21.market and how higher borrowing costs may impact that sector.
:10:22. > :10:26.Finally, error parts maker Honeywell International is scheduled to
:10:27. > :10:27.announce its financial expectations for the year 2017 before US markets
:10:28. > :10:31.opened for trading. Joining us is Jane Foley, Senior
:10:32. > :10:40.Currency Strategist at Rabobank. Thank you for coming in. We wanted
:10:41. > :10:45.to start with sterling, it has rallied recently? Looking back to
:10:46. > :10:49.October, we had a sharp fall in sterling on top of what we had after
:10:50. > :10:53.the referendum in June, that is because the market was very fearful
:10:54. > :10:59.of hard Brexit. That just means Brexit without access to the
:11:00. > :11:02.European single market. Since then, the market has taken a different
:11:03. > :11:06.tone and has begun to think that there might be access after all,
:11:07. > :11:12.sterling has a very binary relationship with talk about hard
:11:13. > :11:19.Brexit, soft Brexit. Since October, sterling has performed better. This
:11:20. > :11:22.year has been very political, Trump, Brexit, the Italian referendum. What
:11:23. > :11:28.will the market to be keeping their eye on next year? Politics? Very
:11:29. > :11:32.much so, Brexiters very much there, in 2017 we will find out how
:11:33. > :11:38.complicated Brexit will be, then it is elections in Europe. We have seen
:11:39. > :11:41.in the US and Brexit lots of protest votes, movement towards the far
:11:42. > :11:44.right and the far left in some countries, the elections next year
:11:45. > :11:47.we have the Dutch elections in March, the French presidential
:11:48. > :11:51.election in the spring and the German election. We are likely to
:11:52. > :11:54.see more votes cast for the far right, but opinion polls right now
:11:55. > :11:58.suggest they will not be able to form a Government in the Netherlands
:11:59. > :12:03.and France, certainly not in Germany, so the euro will be there
:12:04. > :12:06.Eve Pollard tile, it will have a dominating effect on the markets.
:12:07. > :12:11.The opinion polls say that the far right will not be able to farm --
:12:12. > :12:16.for those governments. Will be US dollar continue going up? May before
:12:17. > :12:19.now, but we are a bit sceptical about the revelations so maybe
:12:20. > :12:23.things will be looking different by the end of next year. We will see
:12:24. > :12:25.you shortly for a look at the paper. -- papers.
:12:26. > :12:27.The US central bank raised interest rates this week -
:12:28. > :12:30.and said more hikes are probably in the works for next year.
:12:31. > :12:33.We'll chew over that - and the rest of the week's news
:12:34. > :12:35.with our economics editor Kamal Ahmed.
:12:36. > :12:42.You're with Business Live from BBC News.
:12:43. > :12:44.A few months ago, the future of low-cost airline
:12:45. > :12:48.Then it secured ?165 million of funds from its shareholder,
:12:49. > :12:54.Greybull Capital and has just updated the City on its profits.
:12:55. > :12:56.Joining us from the BBC Newsroom is Andrew Swaffield,
:12:57. > :13:09.Great to have you want the programme. Let's be frank, a hell of
:13:10. > :13:21.a year for you guys? Slightly relieved with the numbers today? I'm
:13:22. > :13:23.pleased with a profitable results, ?48 million EBITDA profit in a
:13:24. > :13:27.difficult year with a combination of terrorism and the collapse in the
:13:28. > :13:32.value of the pound, as I'm sure your viewers are aware the British
:13:33. > :13:36.airlines take most of their revenue in pounds and most of our costs go
:13:37. > :13:41.out in euros and dollars, sue the exchange rate has a big effect. It
:13:42. > :13:45.has been a challenging year, but pleased to be profitable and looking
:13:46. > :13:49.forward we see strong bookings, especially for next summer, which we
:13:50. > :13:55.are encouraged about. On the point of looking forward, you are going to
:13:56. > :14:00.have new destinations, but I want to talk about a new fleet, a new fuel
:14:01. > :14:08.efficient fleet you will bring on board, around 2018? Finnair
:14:09. > :14:12.introduced the Airbus 350 and now saves a million bucks a year on fuel
:14:13. > :14:16.on that aircraft, you're looking at 18 of those, a savings of 80
:14:17. > :14:22.million, these new fuel-efficient planes are important? The Boeing 737
:14:23. > :14:32.Max eight comes in from March 2018 for us, we expect 24% fuel savings
:14:33. > :14:37.on an annual fuel budget of ?130 million. That is a phenomenal boost
:14:38. > :14:40.to the bottom line. It is great for the environment as well and these
:14:41. > :14:47.are much quieter aircraft. They also have a much more customer friendly
:14:48. > :14:58.interior as well. Very excited. I'm sure the customers will be
:14:59. > :15:04.excited. Thank you for joining us. Let's see what is going on live
:15:05. > :15:08.page. Which? Is bringing a super complaint against the banks, to help
:15:09. > :15:11.people tricked into transferring money into a fraudster's account but
:15:12. > :15:15.unfortunately it looks like they will not get them to pay the money
:15:16. > :15:21.back but they want to give them more assistance. OK.
:15:22. > :15:25.You're watching Business Live - the leaders of Russia and Japan have
:15:26. > :15:28.agreed more than 60 trade deals as Shinzo Abe becomes the first G7
:15:29. > :15:30.leader to host Vladimir Putin since sanctions were imposed
:15:31. > :15:35.on Moscow because of the Ukraine conflict.
:15:36. > :15:40.A quick look at how markets are faring.
:15:41. > :15:49.They are still digestive and what we saw on Wednesday, same old story.
:15:50. > :15:52.American Central bank, the US Fed, been a long time coming, they
:15:53. > :15:57.pressed the button, the cost of borrowing rose in the world's
:15:58. > :16:01.biggest economy but the markets are still digestive that. It's one of
:16:02. > :16:05.the big stories of the week. It is what we are going to talk to Kamal
:16:06. > :16:14.Ahmed about. He joins us to talk about that story. The US Federal
:16:15. > :16:18.Reserve have raised interest rates, the UK Central bank held it steady,
:16:19. > :16:22.why the different approaches? It is about economic performances.
:16:23. > :16:25.We are seeing macroeconomic trends that will dominate next year, so if
:16:26. > :16:30.we look at America and why the Fed raised rates after threatening to
:16:31. > :16:35.four 12 months, the American economy is strengthening, clearly. -- for 12
:16:36. > :16:39.months. Unemployment is at record lows, some inflation is coming back
:16:40. > :16:42.into the system and the world is waiting to see what President-elect
:16:43. > :16:46.Trump will do on the fiscal side with boosting infrastructure
:16:47. > :16:51.investment. That compares with Europe, Britain and the Eurozone and
:16:52. > :16:55.the other members of the European Union where growth is still
:16:56. > :16:59.relatively weak, there are still fears over the trajectory of travel
:17:00. > :17:04.for the economies in Europe and the European Central Bank still doing
:17:05. > :17:08.negative interest rates to stimulate the economy monetarily. And then you
:17:09. > :17:13.have Asia and the problem of capital flows coming out of Asia into the
:17:14. > :17:16.American markets because there are higher levels of yield so the Asian
:17:17. > :17:20.currencies are under pressure. America is going in One Direction,
:17:21. > :17:22.Europe in the middle and Asia on the other side, this big diversion will
:17:23. > :17:28.be the big macro trend for next year. What does that mean in real
:17:29. > :17:34.terms, the US powering ahead and we are back here. It is about
:17:35. > :17:37.investment money. If you imagined a big investment funds which look
:17:38. > :17:40.where to put the money in the investment in businesses which
:17:41. > :17:44.create jobs, they are thinking to themselves, where will I get the
:17:45. > :17:47.best yield and return for my money? America looks more attractive
:17:48. > :17:51.because of high interest rates meaning you get better returns and
:17:52. > :17:55.the banks are operating with better profit margins meaning they invest
:17:56. > :17:58.more into the economy, lend more to businesses and at the same time as
:17:59. > :18:02.there are still fears about Europe, talking about political risk on the
:18:03. > :18:05.programme already. In Asia we have the big issue of what is the
:18:06. > :18:11.relationship between Japan, China and Russia? If America becomes more
:18:12. > :18:15.in Schiller how will that play out? The Asian economies have these
:18:16. > :18:19.issues are very connected to America. If capital flows to America
:18:20. > :18:23.how will the Asian economies perform? We can now talk about EU
:18:24. > :18:27.sanctions, as we hear they have been extended against Russia for another
:18:28. > :18:31.six months. Not all EU countries were in favour, they wanted it
:18:32. > :18:33.easing slightly because of the impact on their economies. Germany
:18:34. > :18:37.is the country that has the strongest links in trade terms with
:18:38. > :18:42.Russia, but again this is all about the issue around the pivot and where
:18:43. > :18:46.does Russia now look to for allies. Of course, in the Middle East and
:18:47. > :18:49.what is going on in Syria will have some effect about the economic
:18:50. > :18:54.relationships with the rest of the world. America may now have a more
:18:55. > :18:59.friendly President in President-elect Trump than it has
:19:00. > :19:01.had under President Obama. And also, what will the relationship be
:19:02. > :19:07.between China, Russia and Japan in Asia? And at that stage, the
:19:08. > :19:12.European Union is worrying, to an extent, given the rise in commodity
:19:13. > :19:15.prices. Russia still produces a third of commodities exported around
:19:16. > :19:19.the world. What will Europe's relationship be with Russia if we
:19:20. > :19:22.have this aggressive sanctions regime at the time Russia is looking
:19:23. > :19:28.to increase its economic activity with other countries around the
:19:29. > :19:32.world. I thought we would have 20 seconds, I was going to ask about
:19:33. > :19:36.the Fox and Sky deal, they tried five years ago and failed. They are
:19:37. > :19:39.looking for a bigger content platform to take them from Europe,
:19:40. > :19:42.India and America and bring all of those bits of the business together.
:19:43. > :19:46.It's part of the picture, we are seeing content providers hooking up
:19:47. > :19:48.with distributors. Kamal Ahmed, thank you for your time
:19:49. > :19:49.this morning. Venezuela's most popular
:19:50. > :19:51.banknote is no longer The 100 Bolivar note is worth
:19:52. > :19:55.less than two US cents. And the country's economic crisis
:19:56. > :19:57.has meant extradordinary They will introduce new coins and
:19:58. > :20:08.banknotes. The International Monetary Fund
:20:09. > :20:11.estimates that next year's prices And this latest move
:20:12. > :20:14.is already causing even more Joining us is Jane Foley, Senior
:20:15. > :21:42.Currency Strategist at Rabobank. We are going to talk through the
:21:43. > :21:47.papers. Starting with the story we mentioned at the top, these flatpack
:21:48. > :21:50.apartments, flats being used as one way to tackle the UK's housing
:21:51. > :21:55.crisis, they are being used around the world and also in the UK. These
:21:56. > :22:00.are in south London in the picture. I think it looks amazing.
:22:01. > :22:04.Is about the size of a shipping container, containing a two-bedroom
:22:05. > :22:11.flat. It says in the article, it had something that cost. So much for the
:22:12. > :22:16.highlighting! What do you think of these? The cost is 20% cheaper than
:22:17. > :22:19.a traditional house and this particular product in Luton the
:22:20. > :22:23.article says will be sold off, so these flats are temporary but the
:22:24. > :22:27.beauty is they can be taken down and rebuilt somewhere else up to five
:22:28. > :22:33.times. Just take them off and pop them like Lego. They are timber
:22:34. > :22:37.framed and I am trying to build a timber framed house myself so I can
:22:38. > :22:40.confidently say I would live in one of these. They are timber framed and
:22:41. > :22:44.in the factory big kitchens and washing machines are put into them
:22:45. > :22:48.and they are dropped in place from the back of a lorry already done.
:22:49. > :22:53.The lift and stairs must be put in afterwards that they have a fairly
:22:54. > :22:56.fast completion time. I must say, the reports from the residents here,
:22:57. > :23:01.people who have been moved into them, are very positive. I think
:23:02. > :23:06.they are a great solution. If it works.
:23:07. > :23:11.Given the prices of London property. This report size 120,000 children
:23:12. > :23:14.homeless at the moment and they also cite that although we are building
:23:15. > :23:17.more houses we are nowhere near building as many as we need to at
:23:18. > :23:22.the moment. Let's talk about the big hacking
:23:23. > :23:26.story. Yahoo, they came out and said they had 1 billion accounts hacked
:23:27. > :23:30.in 2013, apparently didn't know about it. This is the thing, we
:23:31. > :23:35.didn't know about it, we knew about a scandal in 2014, 500 million
:23:36. > :23:38.accounts, and this is something we hadn't heard about and it happened
:23:39. > :23:44.before and it was 1 billion accounts hacked. Did they really know or not?
:23:45. > :23:48.They have been negotiating this near $5 billion deal with Verizon, the
:23:49. > :23:55.former boss walked away with a nice big paycheque. They are talking
:23:56. > :23:58.about having to walk away from the steel or maybe discount it and the
:23:59. > :24:02.discount is reported in here today are up to 3 billion, so 3 billion
:24:03. > :24:07.potential discount on a deal worth 4.8 billion is huge. Verizon's
:24:08. > :24:10.concern is that Yahoo will lose users and they will lose the
:24:11. > :24:15.valuable customer base. Yes, this is why they want to buy Yahoo to rival
:24:16. > :24:19.the likes of Facebook and Google. They want consumers' information to
:24:20. > :24:22.help them with advertising. That is what they want and if consumers walk
:24:23. > :24:26.away there is nothing there for them. Grace Dove, Jane. Merry
:24:27. > :24:30.Christmas, have a wonderful time off. That's it. You are off for
:24:31. > :24:34.Christmas as well. I am, so lucky. That is it for
:24:35. > :24:47.today. More business news on Monday. Hi, it has been a cloudy week and
:24:48. > :24:50.today will be a cloudy day again. Weather front across western areas,
:24:51. > :24:55.you can see on the satellite picture coming across the Atlantic and
:24:56. > :24:56.stalling and becoming slow-moving. This streak of cloud is a front