:00:08. > :00:09.This is Business Live from BBC News, with Jamie Robertson
:00:10. > :00:13.Yesterday he financed superhero movies, today he's
:00:14. > :00:18.the new US Treasury Secretary, but has Steven Mnuchin got what it
:00:19. > :00:22.takes to balance the books of the world's biggest economy?
:00:23. > :00:44.Live from London, that's our top story.
:00:45. > :00:48.He's rejected claims he profiteered from the financial crash and vows
:00:49. > :00:52.to do everything he can to boost the US economy.
:00:53. > :00:55.Also in the programme, Toshiba shocks investors
:00:56. > :01:04.It says it's "not ready" to unveil financial results,
:01:05. > :01:10.as the mystery over its nuclear division gets even murkier.
:01:11. > :01:16.The biggest mover in the market so far is the Footsie.
:01:17. > :01:19.Tired of cramped legs and aching backs after
:01:20. > :01:24.We'll meet the company aiming to put the luxury back into flying,
:01:25. > :01:30.At the other end of the scale, Dubai has just tested its first
:01:31. > :01:38.Today we want to know, how comfortable would you feel
:01:39. > :01:45.being whizzed about in the air without a pilot on board?
:01:46. > :01:48.In the last few hours, former banker Steven Mnuchin has
:01:49. > :01:50.been confirmed as the new Treasury Secretary.
:01:51. > :01:52.As jobs go, it's a very important one.
:01:53. > :01:55.Besides serving as the nation's banker, paying its bills, collecting
:01:56. > :01:58.taxes and managing its debt, the Secretary is also one
:01:59. > :02:01.of the leading regulators of banks and Wall Street.
:02:02. > :02:07.So how well do we think he'll perform in this new role?
:02:08. > :02:10.He's been criticised as a Wall Street insider,
:02:11. > :02:17.having spent 17 years working for Goldman Sachs, and also setting
:02:18. > :02:24.This has enabled him to finance dozens of high-profile Hollywood
:02:25. > :02:27.films, including titles like Suicide Squad and
:02:28. > :02:33.Last April he joined the Trump campaign when the organisation's
:02:34. > :02:39.Now he's deeply involved in developing the President's tax
:02:40. > :02:44.proposals, which could deliver as much as $6 trillion in tax
:02:45. > :02:49.Most controversially, he's been accused of profiting
:02:50. > :02:55.In 2009, Mnuchin assembled a group of investors to buy
:02:56. > :03:01.He renamed it OneWest and turned it around,
:03:02. > :03:05.selling it for a large profit in 2014.
:03:06. > :03:08.Housing-advocacy groups claim OneWest foreclosed
:03:09. > :03:14.on more than 36,000 homeowners in California.
:03:15. > :03:16.Here's how Steven Mnuchin responded to the criticism.
:03:17. > :03:20.Since I was first nominated to serve as Treasury Secretary I have been
:03:21. > :03:25.maligned as taking advantage of others' hardship
:03:26. > :03:31.Nothing could be further from the truth.
:03:32. > :03:35.During the summer of 2008 I saw the devastation that was caused
:03:36. > :03:39.by the housing crisis, when I watched people line up
:03:40. > :03:45.to get their life's savings out of IndyMac bank.
:03:46. > :03:48.It was the middle of the financial crisis, and despite the global panic
:03:49. > :03:59.Professor Inderjeet Parmar, International Politics,
:04:00. > :04:12.First, let me finish my Twitter question. How would you feel about
:04:13. > :04:18.jumping into a pilotless drone? Would you fly? Let us know, use the
:04:19. > :04:25.hashtag. Let's get stuck into this story. What is going on with Donald
:04:26. > :04:30.Trump? You can never guess, but he said he is going to clean up the
:04:31. > :04:33.swamp, stop Wall Street from ruling, and one of the most important jobs
:04:34. > :04:40.he has placed a long term big Wall Street man. Absolutely, he has gone
:04:41. > :04:45.everything -- against everything he stood for in the election, he
:04:46. > :04:51.Clinton for Goldman Sachs, but this Clinton for Goldman Sachs, but this
:04:52. > :04:56.is a heavy accent on the power of Wall Street in American Government
:04:57. > :04:59.this time, because Barack Obama in the wake of the financial crisis
:05:00. > :05:05.also appointed somebody straight from the New York Federal reserve
:05:06. > :05:12.and a former central banker. So this is nothing new in that sense. The
:05:13. > :05:21.revolving door between Wall Street and Washington, DC continues to
:05:22. > :05:25.operate. Mottram has not changed it, but he is going to have a go at some
:05:26. > :05:29.of the regulation that was introduced in the various laws after
:05:30. > :05:37.Barack Obama was elected. What do you think... Will he be determined
:05:38. > :05:41.as president Trump is to rein them in, and will Congress go along with
:05:42. > :05:49.Trump is. It separated Rigoletto is Trump is. It separated Rigoletto is
:05:50. > :05:53.from the regulated somewhat, protected through the kitchen
:05:54. > :06:01.production financial bureau some consumers, and those regulations
:06:02. > :06:05.will be stripped back. Progress is done on it by Republicans. Some of
:06:06. > :06:14.them may have reservations, but most of them will be looking forward to a
:06:15. > :06:19.bonfire of regulations in general. The Treasury Secretary also has
:06:20. > :06:23.control over sanctions. It will be very interesting. With Russia,
:06:24. > :06:25.right? The United States has imposed
:06:26. > :06:27.sanctions on Venezuela's Vice-President, accusing him
:06:28. > :06:30.of involvement in drug trafficking. The Americans say Tareck El Aissami
:06:31. > :06:34.facilitated huge shipments of narcotics from Venezuela by air
:06:35. > :06:37.and sea, and protected There was no immediate
:06:38. > :06:42.reaction from Mr El Aissami, Inflation in China reached 2.5%
:06:43. > :06:50.in January, the highest since May 2014, and faster
:06:51. > :06:56.than analysts had predicted. Inflation expectations are rising
:06:57. > :07:02.in most major economies as the recovery in commodities
:07:03. > :07:09.provides a boost to prices. Markets now believe that a Chinese
:07:10. > :07:13.interest rate rise is more likely, though inflation still remain
:07:14. > :07:15.within the central Japanese electronics giant Toshiba
:07:16. > :07:21.has seen shares plunge as the firm delayed a crucial announcement
:07:22. > :07:24.expected to detail Rupert Wingfield Hayes
:07:25. > :07:47.is in Tokyo for us. Who have got the latest news that
:07:48. > :07:51.they might have been a resignation? It is a roller-coaster here today,
:07:52. > :07:58.first they were going to announce their free quarterly results,
:07:59. > :08:01.Toshiba was not expected to announce a huge net loss, but then they
:08:02. > :08:10.cancelled the announcement. In the last half an hour the chairman of
:08:11. > :08:14.Toshiba came onto the stage at the headquarters to say he is resigning,
:08:15. > :08:19.to take responsibility for the mess that the company is in. Although he
:08:20. > :08:23.says he will stay on until the June shareholder meeting. He is
:08:24. > :08:29.definitely going, but not quite yet, perhaps. On the Japanese news agency
:08:30. > :08:34.in the last few seconds, they have said estimated losses for the last
:08:35. > :08:43.three quarters of 5 billion US dollars for Toshiba. That is more
:08:44. > :08:44.than was expected. That is not from the company, that is from the news
:08:45. > :08:54.agency. That they could look at the Asian
:08:55. > :09:09.markets. Guess why dedicate is down, maybe something to do with Toshiba.
:09:10. > :09:15.European markets have all opened pretty mixed at the moment, just
:09:16. > :09:27.waiting to see what happens. " Things coming up.
:09:28. > :09:32.Lawrence Gosling, editor-in-chief of Investment Week.
:09:33. > :09:42.Always good to see you. I was mentioning China's inflation
:09:43. > :09:49.numbers, we are getting inflation in the UK. We are expecting 1.9%, an
:09:50. > :09:55.increase. Still relatively low, but the direction of travel is what
:09:56. > :10:03.concerns economists. Will it keep increasing? On a global scale, do we
:10:04. > :10:09.like inflation? We like a little bit. Central banks like it if they
:10:10. > :10:15.can control it. They wanted to gently rise and then stop when they
:10:16. > :10:20.want. Businesses can put their prices up and nobody notices.
:10:21. > :10:25.Exactly. We like it as employees, because we might get more of a pay
:10:26. > :10:31.rise. It is an illusion. Not if you work for the BBC!
:10:32. > :10:38.Janet Yellen is speaking in the state.
:10:39. > :10:46.The boss of America's Central bank. She is before the Senate committee,
:10:47. > :10:50.economy, she is in the last few economy, she is in the last few
:10:51. > :10:53.months of her term in the Federal Reserve, so she will not say
:10:54. > :10:58.anything outlandish, we don't think. When Trump was coming in to power,
:10:59. > :11:07.we always thought they were going to butt heads,...
:11:08. > :11:10.They are waiting. There will come a point where they will go
:11:11. > :11:15.head-to-head, especially when her successor begins to be mooted. A
:11:16. > :11:21.quick word on corporate news. Quite a lot of bad news around, we have
:11:22. > :11:28.heard about Toshiba, Rolls-Royce, what is the mood in the market in
:11:29. > :11:36.the way about corporate score? We heard about a lot of corporate news
:11:37. > :11:43.with in the regional companies that had problems building up. A binary
:11:44. > :11:47.market, good companies are doing well and about companies are getting
:11:48. > :11:52.the bad news out quite early in the year, so it is no cover incidents.
:11:53. > :11:59.Tired of getting off long-haul flights feeling achy and cranky?
:12:00. > :12:05.We'll get the science and secrets of designing
:12:06. > :12:13.You're with Business Live from BBC News.
:12:14. > :12:20.Engine maker Rolls-Royce has reported a ?4.6 billion loss
:12:21. > :12:29.It follows a tough few years for the British firm,
:12:30. > :12:34.which has been fined ?671 million for bribery, faced challenging
:12:35. > :12:40.market conditions and struggled with the recent fall in the pound.
:12:41. > :12:42.Joining us now from the Newsroom is independent aerospace
:12:43. > :13:01.It is a staggering number. Is it mostly due to the currency? To have
:13:02. > :13:07.a loss of 4.6 billion, is it mostly the drop in the pound? It is. This
:13:08. > :13:14.is a company that manufactures its aero engines in the UK and in
:13:15. > :13:18.Singapore and a few in the states. But it sells everything in dollars.
:13:19. > :13:23.If your costs are in sterling and sterling falls in the way it has,
:13:24. > :13:29.and these contracts are arranged several years in advance, you get an
:13:30. > :13:34.order and the delivery stage maybe six or seven years as head before it
:13:35. > :13:37.is completed, you have to take your hedging at the start, so you have to
:13:38. > :13:42.think where your currency might be five or six years before, that is
:13:43. > :13:45.the problem for them, nobody anticipated sterling could fall in
:13:46. > :13:54.the way it has, because we did not expect Brexit.
:13:55. > :14:01.They are going to say the worst is behind them, drawing a line in the
:14:02. > :14:07.sand, is that true? The worst is behind them in terms of hedging, I
:14:08. > :14:12.hope. It is behind them in terms of the deferred prosecution agreement,
:14:13. > :14:16.the cash is yet to come out, but there is one further straw in the
:14:17. > :14:19.wind, the change of accounting standards, which will fit them next
:14:20. > :14:24.year. It will be some years before we see really decent profits. The
:14:25. > :14:28.underlying profits will be there, and they will get better because of
:14:29. > :14:33.the cost efficiencies, but there are some straws in the wind yet. But
:14:34. > :14:36.Rolls-Royce is a strong company, it will get through this, and it is
:14:37. > :14:38.managing its way through all of its problems extreme you well with a
:14:39. > :14:57.very good team. You are such a creep! I'm joking.
:14:58. > :15:00.Our top story, there's a new man in charge
:15:01. > :15:06.Wall Street executive and Hollywood movie financier,
:15:07. > :15:08.Steven Mnuchin has been appointed US Treasury Secretary.
:15:09. > :15:14.A quick look at how markets are faring.
:15:15. > :15:23.A fairly mixed picture. The FTSE down. It is not mixed at all, it is
:15:24. > :15:30.all down, isn't it? There is the pound and dollar. It
:15:31. > :15:37.has been at 125, 130 all week. It is pretty stable. It is not going
:15:38. > :15:40.anywhere. That's perhaps because there is no big news to shake the
:15:41. > :15:44.pound, dollar rate. Have you ever touched down
:15:45. > :15:46.after a long-haul flight Well, our next guest
:15:47. > :15:50.is on a mission to make those days He's the boss of Acumen Design
:15:51. > :15:53.Associates which specialises in putting the luxury back
:15:54. > :15:55.into travel through The firm was founded in 1981
:15:56. > :15:59.and focuses on transport Acumen made its name in the aviation
:16:00. > :16:02.industry by designing the British Airways bed in the sky,
:16:03. > :16:05.the world's first flat bed aboard More recently Acumen has
:16:06. > :16:09.designed the next level in super-luxury commercial flight
:16:10. > :16:14.with the Etihad Airways Residence which includes a living room
:16:15. > :16:16.and separate bedroom with en suite Ian Dryburgh is CEO and Founder
:16:17. > :16:35.of Acumen Design Associates Ian, it is great to have you with us
:16:36. > :16:42.onth programme. I love this area. The first flat bed. Then and you're
:16:43. > :16:47.dealing with 35 different airlines. So yeah, my question would be, if I
:16:48. > :16:51.am he an airline, and I want you to make a seat, how are you going to
:16:52. > :16:57.make it any different for me when you've done 35 others? Clearly, they
:16:58. > :17:02.weren't all simultaneously. With every airline and every culture, an
:17:03. > :17:06.airline is almost a flag carrier effectively and so each airline
:17:07. > :17:10.generates its own brief. It generates new opportunities. So
:17:11. > :17:13.where did the ideas come from? Is it the airline who say, "This is what
:17:14. > :17:19.we want." Do you come up? Where is we want." Do you come up? Where is
:17:20. > :17:21.the creativity? Acumen is an inowe Environment Agency'ses company as
:17:22. > :17:31.much as waiting for a brief to come in. We've developed our own IP, I
:17:32. > :17:36.might come up with a new super efficient layout for Business Class
:17:37. > :17:41.as we've done for United Airlines so I would licence that IP to them.
:17:42. > :17:46.Other times someone like another airline would come and say, "We want
:17:47. > :17:52.the best first class in the world. Can you help us?" United's new
:17:53. > :17:58.product, you designed that where? The idea came to me on the way home
:17:59. > :18:04.on the train! On a train? You were sitting there... I was scribbling an
:18:05. > :18:09.idea. Halfs it? What made you think about it? I was thinking it would be
:18:10. > :18:15.the Holy Grail for airlines and customers in terms of efficiency and
:18:16. > :18:25.by coming up with this new layout which nests the seats in line and
:18:26. > :18:30.her ring bone we managed to create a super efficient lay-out. Is this
:18:31. > :18:36.where you come up with your ideas, on the train? Quite often. Really?
:18:37. > :18:39.Not exclusively. We have a very good team at Acumen which I'm very proud
:18:40. > :18:49.of and it is very much a team effort. I'm wondering if you're part
:18:50. > :18:52.of the some of the problem now for the airlines, I'm jesting, but a lot
:18:53. > :18:58.of the airlines are getting rid of their first class product and it is
:18:59. > :19:02.becoming a business or top of their range executive product. It is hard
:19:03. > :19:06.to different ate between a first class seat now and the business
:19:07. > :19:13.class seats are first class seats, aren't they? Very true. When you
:19:14. > :19:18.look at what we created for BA, the bed in the sky, that was first class
:19:19. > :19:21.and that's business class now. With the airlines reducing the size of
:19:22. > :19:28.the first class cabins, most of them anyway, they often go down to our
:19:29. > :19:31.dual class or try class. The battle ground shifted to economy and
:19:32. > :19:36.business class moving forward. So you will design stuff for the likes
:19:37. > :19:41.of me, and not just for the likes of Aaron? We're on the case! That's
:19:42. > :19:48.going to be tricky. You are still limited. The airlines need X amount
:19:49. > :19:53.of seats and you have only got so much space? It is a fine balance
:19:54. > :20:00.when economics and looking after the passengers' interests and improving
:20:01. > :20:04.their lot obviously. You do paper towels and also some health products
:20:05. > :20:07.as well. That's right. Why do you suddenly rush off in different
:20:08. > :20:12.directions and do other things? I thought you would specialise in just
:20:13. > :20:16.doing seats and things like that? We are an innovations company. So we
:20:17. > :20:22.get involved with product design as much as transport design. On our
:20:23. > :20:25.innovation arm, we have been founding shareholders of start-ups,
:20:26. > :20:34.you know, in terms of the paper company like you referred to, the
:20:35. > :20:39.world's first round paper towel. A round paper towel? And medical
:20:40. > :20:46.products. We got involved in a start-up on anti- anti-Deep Vein
:20:47. > :20:51.Thrombosis. Clever professors came up with a technology and we turned
:20:52. > :20:56.it into a product. We've got to wrap it up Ian. You must travel around
:20:57. > :21:05.the world. How often do you fly on the seats that you've designed? Not
:21:06. > :21:09.as often as I'd like! What if you got into one of your seats and
:21:10. > :21:14.thought, "I don't like this. Maybe we need to tweak it." Hopefully that
:21:15. > :21:17.keeps us in employment. That's what my wife tells me.
:21:18. > :21:22.We appreciate your timement thank you very much.
:21:23. > :21:25.In a moment we'll take a look through the Business Pages but first
:21:26. > :21:28.here's a quick reminder of how to get in touch with us.
:21:29. > :21:30.The Business Live page is where you can stay
:21:31. > :21:32.ahead with all the day's breaking business news.
:21:33. > :21:34.We'll keep you up-to-date with all the latest details
:21:35. > :21:37.with insight and analysis from the BBC's team of editors
:21:38. > :21:39.right around the world and we want to hear from you too.
:21:40. > :21:42.Get involved on the BBC Business Live web page.
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:21:46. > :22:00.Business Live, on TV and online, whenever you need to know.
:22:01. > :22:10.Just keep talking Jamie. Just keep talking, Jamie!
:22:11. > :22:11.We are going to look at some of the business news stories and on the BBC
:22:12. > :22:24.evens website. . website.. We got this story which sort of
:22:25. > :22:27.began to break in the Budget. Self employment, rise in self employment
:22:28. > :22:31.was damaging tax revenues because they are not paying as much tax? The
:22:32. > :22:34.employment legislation was designed for the old world of employment
:22:35. > :22:40.where everyone was directly employed or properly self-employed. Here you
:22:41. > :22:44.have a number of clients and you're not working exclusively for anyone.
:22:45. > :22:52.People who can work for one employer can be treated as self-employed like
:22:53. > :22:55.delivery drivers. The gig economy? It is a double-edged sword. Some
:22:56. > :22:58.people like it. They like freedom and at the BBC we have been talking
:22:59. > :23:02.to people who have been talking about the up sides of the gig
:23:03. > :23:05.economy, work when you want, but the down side is you don't get a
:23:06. > :23:09.pension, you don't get paid holiday and ruthless employers will make you
:23:10. > :23:13.rent the equipment you need to do your job. Really? It is a
:23:14. > :23:18.double-edged sword and I think over time and we have this Government
:23:19. > :23:25.report out today, over time employment legislation will tighten
:23:26. > :23:33.up. Will they get tax back? If you stand back. Corporation tax is in
:23:34. > :23:37.decline. We maybe heading for an era where corporation tax is no longer
:23:38. > :23:40.levied on companies. You will end up with a thing where activity will be
:23:41. > :23:43.taxed. That's where we're headed in the long-term. So employment
:23:44. > :23:48.activity will be taxed because it is easy for companies to avoid
:23:49. > :23:57.corporation tax. It becomes an optional activity. You're turning
:23:58. > :24:04.this into HardTalk. This is a paper review!
:24:05. > :24:10.Let's talk about drones. That is quite... Would you step into that?
:24:11. > :24:14.Would you? You have got to work your way around a propeller. It is a
:24:15. > :24:19.Chinese made drone. It was shown off at a show in Dubai. If you have been
:24:20. > :24:24.to Dubai, Dubai's traffic is terrible by any world city
:24:25. > :24:28.standards. It is awful. They have they will have this thing flying
:24:29. > :24:34.around in Dubai in July. It carries one person. I'm not sure I'd jump
:24:35. > :24:39.in. But if you travel on London Underground most of the time you're
:24:40. > :24:43.travelling on a not driver controlled train. Not a driverless
:24:44. > :24:47.train, but the trains are driven by computers. So transport systems are
:24:48. > :24:52.largely run by machines rather than men. What happens if you have masses
:24:53. > :24:58.of them up there, that's when it gets scary. And a Tube train is not
:24:59. > :25:01.flying 500 feet up! Hopefully the technology is good
:25:02. > :25:05.enough so it won't have lots of crashes. Less than a minute left.
:25:06. > :25:09.Greece is back in the headlines, right. The amount of money it has to
:25:10. > :25:15.pay off between now and July, it's staggering. There are periodic
:25:16. > :25:20.crisis in Greece. A good way of gauging is looking at the price of
:25:21. > :25:25.its bonds. Its debt? On its Government debt. When things are
:25:26. > :25:31.really bad it got above 14%, we're only at 10% and 11%. We are a few
:25:32. > :25:34.minutes away from midnight. It is the same argument, the IMF doesn't
:25:35. > :25:38.want to lend money until it is reformed. Greece will never be able
:25:39. > :25:44.to pay this money back. The debt will never be able to be repaid. At
:25:45. > :25:50.sometime they will have to bite the bullet. That's hard for any German
:25:51. > :25:57.politician to sell at the moment. It depends who is in charge in Europe
:25:58. > :26:02.with all the votes going on. Dominic, thank you, mate.
:26:03. > :26:05.Wrap it up Jamie. That's it from Business Live today. There will be
:26:06. > :26:11.more business news throughout the day. We will see you later.
:26:12. > :26:16.Hello there. Good morning. We will start with a look back at
:26:17. > :26:20.yesterday's morning. There was a variety on offer. Many of us saw a
:26:21. > :26:23.good deal of sunshine, but that wasn't the case for all. There was a
:26:24. > :26:24.fair bit of cloud across the north-east