:00:00. > :00:07.This is Business Live from BBC News, with Sally Bundock
:00:08. > :00:11.Are we seeing the green shoots of recovery for the world's
:00:12. > :00:16.The Bank of Japan speaks of better times ahead following a fall
:00:17. > :00:36.Live from London, that's our top story on Tuesday 20th December.
:00:37. > :00:39.Could the shock election result in the US provide a boost
:00:40. > :00:49.Cyrus Mistry finally steps down from the boards of Tata companies,
:00:50. > :01:07.Markets in Europe hold steady despite the geopolitical concerns,
:01:08. > :01:09.intensified by events in Berlin and Ankara. We will tell you all we need
:01:10. > :01:11.to know. How do online retailers compete
:01:12. > :01:13.when a new start-up can set up We'll be speaking to the founder
:01:14. > :01:18.of a fast-growing fashion And if you'd like to get in touch
:01:19. > :01:22.about any of the stories covered in today's show,
:01:23. > :01:26.we'd love to hear from you. 2017 is looking like a brighter
:01:27. > :01:49.year for the world's The Bank of Japan says the recovery
:01:50. > :01:54.is now a moderate trend in a sign of better times for the rest
:01:55. > :01:56.of the world. At the central bank's last policy
:01:57. > :01:59.meeting of the year, they kept interest rates
:02:00. > :02:05.at minus 0.1%. The upbeat message was because of
:02:06. > :02:08.a weaker yen and a pickup in demand from abroad,
:02:09. > :02:11.which offer fresh hope for an economy that's been
:02:12. > :02:17.stagnating for more than a decade. In November, the value
:02:18. > :02:22.of the Japanese yen fell by over 9% as investors speculated that the US
:02:23. > :02:27.central bank would raise interest rates at its policy meeting this
:02:28. > :02:32.month, which it did. The weaker currency has been a boost
:02:33. > :02:35.to Japanese companies, Despite this, there are question
:02:36. > :02:42.marks over the so-called Abenomics programme designed
:02:43. > :02:45.to kick-start the economy. It means the central bank
:02:46. > :02:48.is currently buying around $680 billion worth of financial
:02:49. > :02:55.assets every year. The latest official data saw
:02:56. > :03:01.inflation come in at 0.1%. It's better than it was
:03:02. > :03:04.but still far below the Bank of Japan's target of 2%,
:03:05. > :03:07.and is why the banks says "powerful And there are also concerns over
:03:08. > :03:15.the longer-term "structural reforms" promised by Prime Minister Shinzo
:03:16. > :03:18.Abe. These include measures
:03:19. > :03:20.to improve employment rates Takashi Miwa is chief economist
:03:21. > :03:44.at the Japanese bank Nomura We have got inflation at just 0.1%,
:03:45. > :03:47.and we still have negative interest rates. There is not a lot to
:03:48. > :04:06.celebrate, is there? The weaker yen is a factor. As far
:04:07. > :04:12.as the governor mentioned, the bank of Japan must stay on hold for a
:04:13. > :04:15.while to get the benefit of the depreciation of the currency to get
:04:16. > :04:23.higher inflation in the future. Something that we continuously talk
:04:24. > :04:29.about when it comes to Japanese economic 's is structural reform,
:04:30. > :04:33.like an overhaul of your jobs market, when will Japan accept more
:04:34. > :04:40.immigration to balance the ageing population and workforce? Did you
:04:41. > :04:51.think you will get the reforms under Abe? The Prime Minister is being
:04:52. > :05:01.urged to make structural reforms in the Labour market. Higher wages are
:05:02. > :05:11.crucial, higher growth and higher inflation. What about the effect of
:05:12. > :05:15.Donald Trump in the New Year? He said he wants to pull out of the
:05:16. > :05:18.transpacific partnership, which was imported for Japan, but it looks
:05:19. > :05:26.like Japan could get a boost from his policies? We are expecting
:05:27. > :05:36.something positive will be coming out from Donald Trump. The situation
:05:37. > :05:40.is uncertain at the moment, whether he will have a protectionist
:05:41. > :05:48.approach or not. Japanese businesses are still waiting to make business
:05:49. > :05:53.president to come in the next year. president to come in the next year.
:05:54. > :06:01.In a nutshell, what shall outlook for 2017 for Japan? We expect that
:06:02. > :06:13.the Japanese economy will go on a gradual recovery. The uncertainty is
:06:14. > :06:23.quite high. The risks are from the US and from China and Europe.
:06:24. > :06:28.One other story we're keeping an eye on is the events in Berlin.
:06:29. > :06:30.The authorities there are questioning a man they believe
:06:31. > :06:36.intentionally drove a truck into a crowded Christmas market.
:06:37. > :06:39.At least 12 people were killed, and nearly 50 have been injured,
:06:40. > :06:44.The truck crashed into people gathered around wooden stalls that
:06:45. > :06:48.were serving mulled wine and sausages at the foot
:06:49. > :06:53.of the Kaiser Wilhelm church in west Berlin.
:06:54. > :06:55.Police are now describing the incident as a "suspected
:06:56. > :07:09.We have a special page on our website for what is going on in
:07:10. > :07:13.Berlin. It covers any new developments, any information
:07:14. > :07:22.regarding that particular event. To take a look at our website, we are
:07:23. > :07:28.updating it all the time. German TV says special forces have
:07:29. > :07:33.searched an airport hunger at the temple Hof airport. They says they
:07:34. > :07:39.have had their first hot leader following the incident.
:07:40. > :07:41.Keep across everything as when we receive it.
:07:42. > :07:44.There's been another twist in the Tata saga in India,
:07:45. > :07:47.with the ousted chairman of Tata Sons, Cyrus Mistry,
:07:48. > :07:50.resigning from the boards of all Tata Group companies.
:07:51. > :07:52.His move came ahead of several extraordinary general meetings,
:07:53. > :08:04.which had been called to remove him.
:08:05. > :08:15.What is the latest on that? His decision to resign from all Tata
:08:16. > :08:21.companies, ahead of these meetings, has come as a prop's surprise, but
:08:22. > :08:28.they are still going ahead with the meetings. There was one scheduled
:08:29. > :08:38.for the hospitality company, they are holding their meeting today.
:08:39. > :08:42.Tomorrow Tata Steel will hold one. Tata don't want him to have the
:08:43. > :08:48.final word, there want to put forward the reasons why they took
:08:49. > :08:54.the decision, and they want to show that shareholders are on their side.
:08:55. > :08:57.It will give a chance for shareholders to come forward and
:08:58. > :09:02.express their point of view. There have been concerns about the way the
:09:03. > :09:10.battle has played out in public. Tata has a very good image when it
:09:11. > :09:14.comes to the public, but given that the warring factions put so many
:09:15. > :09:22.allegations in the public domain, it has tarnished their reputation. We
:09:23. > :09:30.will rely on you in Mumbai to keep us a cross that. The markets in Asia
:09:31. > :09:39.wobbled a bit due to what is going in -- on in Berlin and Ankara.
:09:40. > :09:45.Hopefully my team can fix the black screen. The markets in Europe
:09:46. > :09:51.slightly up, we will hopefully bring the numbers to do. Holding steady.
:09:52. > :09:57.The big movers on the FTSE 100 is the Lloyds Banking Group, up 1%,
:09:58. > :10:01.they are buying a UK credit card company. They are wheeling and
:10:02. > :10:07.dealing, and that stock is on the move.
:10:08. > :10:08.Joining us is Trevor Greetham, head of multi-asset
:10:09. > :10:24.I want to talk about the Italian banks, they have been in the
:10:25. > :10:34.spotlight for some time, they are sitting on $400 billion of bad debt.
:10:35. > :10:37.might have to step in, they are might have to step in, they are
:10:38. > :10:45.talking about passing a vote to raise 20 billion euros. Is that a
:10:46. > :10:50.bailout? It is nationalisation? They are trying to navigate the EU rules
:10:51. > :10:56.on state capital injections. If they inject capital into the bank, they
:10:57. > :11:01.have to share the pain with some of the bondholders. The Italian
:11:02. > :11:05.Government stuck between a rock and a hard place. If they were to let a
:11:06. > :11:10.bank fail, there would be depositors losing money, if they bail a out,
:11:11. > :11:18.bondholders lose money. That is a bail in. A lot of the bondholders in
:11:19. > :11:22.Italy in particular or individuals. They make themselves unpopular with
:11:23. > :11:28.savers or savers. They have a tricky situation. They are trying to
:11:29. > :11:33.encourage private sector capital to come in, but so far, since 2009, the
:11:34. > :11:38.bank has had 4 billion euros of public money and 8 billion euros of
:11:39. > :11:43.private money, it is looking for another five, and it is touch and
:11:44. > :11:48.go. What Italy needs is some growth and inflation. And some structural
:11:49. > :11:52.reform may be? That would help, but getting growth and inflation going
:11:53. > :12:00.when you cannot weaken your currency is fickle. You could see the
:12:01. > :12:03.political tension. We had the bank of Japan meeting, the last of the
:12:04. > :12:09.central banks to meet this year. China releasing its growth figure
:12:10. > :12:17.that it expects to hit next year. 6.5%. It is always 6.5! The Chinese
:12:18. > :12:20.economy grows rapidly and slows down, there are interesting things,
:12:21. > :12:26.but the official numbers never seem to change. Last year, when we kicked
:12:27. > :12:29.off, there was a panic about China having a hard landing and the
:12:30. > :12:34.currency was weak and oil prices were collapsing, but now if anything
:12:35. > :12:38.the issue is the other way around, the economy is strengthening,
:12:39. > :12:44.housing market is booming. We have seen a shift, which is what Beijing
:12:45. > :12:50.has wanted to do. It has not been the factory floor, it is the
:12:51. > :12:53.services. The housing market. A lot of stimulus was thrown at China over
:12:54. > :12:57.the last couple of years, including currency weakness, and they have
:12:58. > :13:02.turned inflationary for the world, and that is why will see interest
:13:03. > :13:08.rates going up and bark -- bond market selling off. If the interest
:13:09. > :13:15.rates go up, that could be a problem.
:13:16. > :13:17.Have a Merry Christmas, it is the last time we will see you before the
:13:18. > :13:18.New Year. How do online retailers compete
:13:19. > :13:22.when a new start-up can set up We'll be speaking to the founder
:13:23. > :13:26.of a fast-growing fashion You're with Business
:13:27. > :13:32.Live from BBC News. At this time of year,
:13:33. > :13:36.many of us will be stocking up on drinks and going out
:13:37. > :13:39.for Christmas parties, but what we're choosing
:13:40. > :13:41.to buy is changing. Sales of gin and rum are up by more
:13:42. > :13:50.than 10% in the last year. Steph McGovern is in Warrington
:13:51. > :13:53.at one of the UK's oldest gin distilleries to find out how they're
:13:54. > :14:09.keeping up with demand. Hello. This is one of the UK's
:14:10. > :14:15.oldest distilleries, and they have been making gin here for 250 years.
:14:16. > :14:18.We are here because sales of gin have been increasing, it is really
:14:19. > :14:23.popular now, up 10% over the last year. Joanne is the master
:14:24. > :14:32.distiller. Tell us what goes into gin. It is made of three building
:14:33. > :14:36.blocks, spirit, British wheat, water, a local water, and
:14:37. > :14:40.botanicals. The only botanical we have to put in is juniper berries.
:14:41. > :14:49.They come from the Toscana region in Italy. We also have coriander from
:14:50. > :14:54.Morocco and lemon peel from pain. -- Spain. It is hand peeled, sitting
:14:55. > :15:00.around in the Spanish sun and peeling those are. It has got eight
:15:01. > :15:06.different botanicals, we will put them in pots. Replace everything in
:15:07. > :15:11.there with water and spirits, heat everything up. At 80 degrees that
:15:12. > :15:15.alcohol boils and the vapour travels up the column and goes over the Lion
:15:16. > :15:21.arm, it's the condenser and into the receiving tanks.
:15:22. > :15:30.Why do you think gin is so popular? It is a versatile spirit. It lends
:15:31. > :15:36.itself well to cocktails. It smells lovely in here today. That's it from
:15:37. > :15:41.me here at one of the UK's oldest gin distilleries.
:15:42. > :15:51.That was Steph, of course, who looks completely sober. I'm glad I didn't
:15:52. > :15:55.do that OB! There is a lot of detail on the
:15:56. > :16:00.website. Second day of strikes. Hundreds of workers on strike again
:16:01. > :16:05.today for the Post Office and Southern Rail guards as well. Keep
:16:06. > :16:07.up-to-date. The poor people that rely on Southern Rail, I tell you
:16:08. > :16:15.what, tough times. Our top story, 2017 is looking
:16:16. > :16:20.like a brighter year for the world's The Bank of Japan says
:16:21. > :16:25.its recovery is now "moderate" The upbeat message was attributed
:16:26. > :16:31.to a weaker yen and a pick up A quick look at how
:16:32. > :16:52.markets are faring. Holding steady given events going on
:16:53. > :16:56.in Europe at the moment. There is talk of the Santa rally which is
:16:57. > :17:00.historically a period of time where markets head higher in the run-up to
:17:01. > :17:03.Christmas and in the funny week between Christmas and New Year when
:17:04. > :17:06.some markets are open for short periods of the there is a lot of
:17:07. > :17:08.distortion on markets because of thin trade. But that's how they are
:17:09. > :17:11.at the moment. For a boutique fashion retailer -
:17:12. > :17:14.trying to expand by opening new outlet stores can
:17:15. > :17:17.be incredibly expensive. The costs of new leases,
:17:18. > :17:20.staff and additional merchandise can One website trying to make it easier
:17:21. > :17:31.is Farfetch, but for a price. The firm sells goods from almost 500
:17:32. > :17:34.boutique stores to customers Last year it saw sales rise by 70%,
:17:35. > :17:39.reaching more than $0.5 billion. Its clients don't mind splashing
:17:40. > :17:42.the cash with customers on average Jose Neves is the Chief Executive
:17:43. > :17:57.and founder of FarFetch. Good morning. Welcome to Business
:17:58. > :18:02.Live. Can I start with this? What are you? Are you a retailer or are
:18:03. > :18:10.you like a software tech company? We are a platform. We are an E-commerce
:18:11. > :18:17.platform. We are not a retailer. You don't hold any goods. You don't have
:18:18. > :18:21.any stuff in terms of infantries sitting in warehouses? No. We
:18:22. > :18:26.connect the most beautiful stars around the world to a digital
:18:27. > :18:30.platform and that allows customers around the world to shop the streets
:18:31. > :18:39.of London, Paris, Milan, Tokyo and Calais. The logistics of this, like
:18:40. > :18:48.getting it to the, all the items could be in one country and I order
:18:49. > :18:54.from a boutique. The logistics of getting the goods must abnightmare?
:18:55. > :18:59.We ship from 40 countries to 150 with no surprises. Through Customs
:19:00. > :19:08.clearance and local currencies and local payment systems. We have 12
:19:09. > :19:15.offices that we have local teams. So we have local teams in all key areas
:19:16. > :19:20.and they are taking care of our customers and making sure all these
:19:21. > :19:28.logistics are spotless and impeccable. As far as you're
:19:29. > :19:33.concerned, you were coding at the age of nine and you grew up in a
:19:34. > :19:36.fashion world, didn't you, really? You designed your own shoes
:19:37. > :19:43.initially which are still selling today, aren't they? The brand is
:19:44. > :19:47.Swear? Yes, I started programming computers. It was my passion since I
:19:48. > :19:51.was a little kid and at the age of 19 I started my own business. Being
:19:52. > :19:58.from the north of Portugal there is a big fashion cluster. It is close.
:19:59. > :20:04.One hour drive from the largest fashion company in the world. My
:20:05. > :20:06.actual customers, when I was a programmer were fashion businesses
:20:07. > :20:11.that got me close to fashion and fell in love with that industry and
:20:12. > :20:16.came to London in 1996 to design and start my shoe label and that's it.
:20:17. > :20:21.We often use the word because it is banded around quite a bit, unicorn a
:20:22. > :20:25.company that's valued at $1 billion before it goes to the markets.
:20:26. > :20:35.That's you guys are. Is that a help or a hindrance? Obviously, it is
:20:36. > :20:39.good for media. It gets media attention. It gets some media
:20:40. > :20:46.attention and quite frankly it is good for recruitment because if
:20:47. > :20:53.you're trying to recruit someone that doesn't necessarily know about
:20:54. > :20:56.your company, they Google it and see there was significant valuation
:20:57. > :21:00.event throughout the company. But that's it. That's not what we care
:21:01. > :21:06.about. Just briefly, you're Portuguese. You lived in the UK,
:21:07. > :21:10.well in London for over 20 years and you employ many overseas, but in the
:21:11. > :21:14.UK alone 300 odd people. Yes. You're wondering if you will be able to
:21:15. > :21:21.stay, aren't you, depending on how Brexit goes? Well, the worry is more
:21:22. > :21:30.long-term. So 50% of our workforce here in London is not British. Not
:21:31. > :21:36.by design. It is because we found the best dofrles or the best fashion
:21:37. > :21:42.merchandisers or from Sweden or from the West or from Spain or wherever
:21:43. > :21:47.they are. That's the key concern. I often joke I wouldn't have, if there
:21:48. > :21:51.was a points system I wouldn't be given a visa package! Surely you
:21:52. > :21:56.would get the points if you employ 300 people. At the time, I wouldn't.
:21:57. > :22:03.Back then, you wouldn't. You're here 20 years, you are part of the
:22:04. > :22:18.furniture! You would hope so. Say merry Christmas in Portuguese.
:22:19. > :22:21.In a moment we'll take a look through the Business Pages but first
:22:22. > :22:24.here's a quick reminder of how to get in touch with us.
:22:25. > :22:32.The Business Live page is where you can stay ahead. We will keep you
:22:33. > :22:35.up-to-date with the latest analysis from the BBC's team of editors
:22:36. > :22:41.around the world. We want to hear from you too, get involved on the
:22:42. > :22:45.BBC Business Live page. On Twitter we are at:
:22:46. > :22:47.You can find us on Facebook at: Business Live on TV and online
:22:48. > :22:52.whenever you need to know. The BBC's Dominic
:22:53. > :23:03.O'Connell is with us. This result in France regarding
:23:04. > :23:08.Christine Lagarde and allegations when she was Finance Minister and
:23:09. > :23:15.they have decided she was in the wrong. There was a criminal case. No
:23:16. > :23:25.fine and no sanction. No sanction at all. The IMF said, "We are sticking
:23:26. > :23:28.by her." Not long ago she took over from Dominique Strauss-Kahn. He left
:23:29. > :23:34.under a cloud. He was not convicted of anything. She has bvenlt after
:23:35. > :23:38.allegations of assault against a New York hotel maid. There is something
:23:39. > :23:43.about IMF and French politicians, but you can understand why the IMF
:23:44. > :23:50.have done it, the Trump presidency, they don't want to be looking for a
:23:51. > :23:55.new managing director right now. Is she regarded as somebody who does a
:23:56. > :23:57.good job? She is a good figure head for the IMF, she is instantly
:23:58. > :24:03.recognisable and very, very quotable. She is great on media. All
:24:04. > :24:08.these things make her a good head for the IMF, you might say the IMF
:24:09. > :24:13.hasn't covered itself in glory over the last few years, but she is
:24:14. > :24:17.regarded as a safe pair of hands. It would have been a surprise if they
:24:18. > :24:22.had to get rid of her. A conviction is a conics even if there is no
:24:23. > :24:27.penalty. Monopoly set-up a helpline to stop bust-ups at Christmas time.
:24:28. > :24:35.We play it our home. Do you have bust-ups? It can cause real dos. Do
:24:36. > :24:42.you play it? This is a PR stunt. It is open for two days. Which two
:24:43. > :24:47.days? It opens on Christmas Eve and finishes on Boxing Day. But really
:24:48. > :24:53.it is just a PR stunt, Hasbro who makes Monopoly would love if people
:24:54. > :24:58.play it. These days they are more likely to be on digital games. Is it
:24:59. > :25:04.not so popular just like Lego. It goes on and on, Monopoly? There is a
:25:05. > :25:07.kids version of Monopoly which doesn't have the nasty little rules
:25:08. > :25:12.and it is over in 15 minutes. The key is you want the yellow ones, the
:25:13. > :25:17.green ones and the dark blue ones. Yeah. The most expensive. Purple
:25:18. > :25:22.then! Park Lane. I like coming off when
:25:23. > :25:28.you come around the purple and the orange. You are the dog. Don't you
:25:29. > :25:33.have a free parking rule, every time you pay a penalty? This is one of
:25:34. > :25:37.the biggest bones of contention. The biggest thing was people stealing
:25:38. > :25:44.from the bank! 13% of people admit to stealing from the bank! The other
:25:45. > :25:52.thing is what is a free parking rule. I wonder what Christine
:25:53. > :25:56.Lagarde's rules are when she plays? Sally, I wouldn't even go there!
:25:57. > :26:09.That's it for another day. Bye-bye. Bye-bye.
:26:10. > :26:15.We're seeing a change to our weather starting today across Scotland and
:26:16. > :26:16.Northern Ireland. Wet and windy weather moving in here