14/02/2017 BBC Business Live


Similar Content

Browse content similar to 14/02/2017. Check below for episodes and series from the same categories and more!



This is Business Live from BBC News, with Jamie Robertson


Yesterday he financed superhero movies, today he's


the new US Treasury Secretary, but has Steven Mnuchin got what it


takes to balance the books of the world's biggest economy?


Live from London, that's our top story.


He's rejected claims he profiteered from the financial crash and vows


to do everything he can to boost the US economy.


Also in the programme, Toshiba shocks investors


It says it's "not ready" to unveil financial results,


as the mystery over its nuclear division gets even murkier.


The biggest mover in the market so far is the Footsie.


Tired of cramped legs and aching backs after


We'll meet the company aiming to put the luxury back into flying,


At the other end of the scale, Dubai has just tested its first


Today we want to know, how comfortable would you feel


being whizzed about in the air without a pilot on board?


In the last few hours, former banker Steven Mnuchin has


been confirmed as the new Treasury Secretary.


As jobs go, it's a very important one.


Besides serving as the nation's banker, paying its bills, collecting


taxes and managing its debt, the Secretary is also one


of the leading regulators of banks and Wall Street.


So how well do we think he'll perform in this new role?


He's been criticised as a Wall Street insider,


having spent 17 years working for Goldman Sachs, and also setting


This has enabled him to finance dozens of high-profile Hollywood


films, including titles like Suicide Squad and


Last April he joined the Trump campaign when the organisation's


Now he's deeply involved in developing the President's tax


proposals, which could deliver as much as $6 trillion in tax


Most controversially, he's been accused of profiting


In 2009, Mnuchin assembled a group of investors to buy


He renamed it OneWest and turned it around,


selling it for a large profit in 2014.


Housing-advocacy groups claim OneWest foreclosed


on more than 36,000 homeowners in California.


Here's how Steven Mnuchin responded to the criticism.


Since I was first nominated to serve as Treasury Secretary I have been


maligned as taking advantage of others' hardship


Nothing could be further from the truth.


During the summer of 2008 I saw the devastation that was caused


by the housing crisis, when I watched people line up


to get their life's savings out of IndyMac bank.


It was the middle of the financial crisis, and despite the global panic


Professor Inderjeet Parmar, International Politics,


First, let me finish my Twitter question. How would you feel about


jumping into a pilotless drone? Would you fly? Let us know, use the


hashtag. Let's get stuck into this story. What is going on with Donald


Trump? You can never guess, but he said he is going to clean up the


swamp, stop Wall Street from ruling, and one of the most important jobs


he has placed a long term big Wall Street man. Absolutely, he has gone


everything -- against everything he stood for in the election, he


Clinton for Goldman Sachs, but this Clinton for Goldman Sachs, but this


is a heavy accent on the power of Wall Street in American Government


this time, because Barack Obama in the wake of the financial crisis


also appointed somebody straight from the New York Federal reserve


and a former central banker. So this is nothing new in that sense. The


revolving door between Wall Street and Washington, DC continues to


operate. Mottram has not changed it, but he is going to have a go at some


of the regulation that was introduced in the various laws after


Barack Obama was elected. What do you think... Will he be determined


as president Trump is to rein them in, and will Congress go along with


Trump is. It separated Rigoletto is Trump is. It separated Rigoletto is


from the regulated somewhat, protected through the kitchen


production financial bureau some consumers, and those regulations


will be stripped back. Progress is done on it by Republicans. Some of


them may have reservations, but most of them will be looking forward to a


bonfire of regulations in general. The Treasury Secretary also has


control over sanctions. It will be very interesting. With Russia,


right? The United States has imposed


sanctions on Venezuela's Vice-President, accusing him


of involvement in drug trafficking. The Americans say Tareck El Aissami


facilitated huge shipments of narcotics from Venezuela by air


and sea, and protected There was no immediate


reaction from Mr El Aissami, Inflation in China reached 2.5%


in January, the highest since May 2014, and faster


than analysts had predicted. Inflation expectations are rising


in most major economies as the recovery in commodities


provides a boost to prices. Markets now believe that a Chinese


interest rate rise is more likely, though inflation still remain


within the central Japanese electronics giant Toshiba


has seen shares plunge as the firm delayed a crucial announcement


expected to detail Rupert Wingfield Hayes


is in Tokyo for us. Who have got the latest news that


they might have been a resignation? It is a roller-coaster here today,


first they were going to announce their free quarterly results,


Toshiba was not expected to announce a huge net loss, but then they


cancelled the announcement. In the last half an hour the chairman of


Toshiba came onto the stage at the headquarters to say he is resigning,


to take responsibility for the mess that the company is in. Although he


says he will stay on until the June shareholder meeting. He is


definitely going, but not quite yet, perhaps. On the Japanese news agency


in the last few seconds, they have said estimated losses for the last


three quarters of 5 billion US dollars for Toshiba. That is more


than was expected. That is not from the company, that is from the news


agency. That they could look at the Asian


markets. Guess why dedicate is down, maybe something to do with Toshiba.


European markets have all opened pretty mixed at the moment, just


waiting to see what happens. " Things coming up.


Lawrence Gosling, editor-in-chief of Investment Week.


Always good to see you. I was mentioning China's inflation


numbers, we are getting inflation in the UK. We are expecting 1.9%, an


increase. Still relatively low, but the direction of travel is what


concerns economists. Will it keep increasing? On a global scale, do we


like inflation? We like a little bit. Central banks like it if they


can control it. They wanted to gently rise and then stop when they


want. Businesses can put their prices up and nobody notices.


Exactly. We like it as employees, because we might get more of a pay


rise. It is an illusion. Not if you work for the BBC!


Janet Yellen is speaking in the state.


The boss of America's Central bank. She is before the Senate committee,


economy, she is in the last few economy, she is in the last few


months of her term in the Federal Reserve, so she will not say


anything outlandish, we don't think. When Trump was coming in to power,


we always thought they were going to butt heads,...


They are waiting. There will come a point where they will go


head-to-head, especially when her successor begins to be mooted. A


quick word on corporate news. Quite a lot of bad news around, we have


heard about Toshiba, Rolls-Royce, what is the mood in the market in


the way about corporate score? We heard about a lot of corporate news


with in the regional companies that had problems building up. A binary


market, good companies are doing well and about companies are getting


the bad news out quite early in the year, so it is no cover incidents.


Tired of getting off long-haul flights feeling achy and cranky?


We'll get the science and secrets of designing


You're with Business Live from BBC News.


Engine maker Rolls-Royce has reported a ?4.6 billion loss


It follows a tough few years for the British firm,


which has been fined ?671 million for bribery, faced challenging


market conditions and struggled with the recent fall in the pound.


Joining us now from the Newsroom is independent aerospace


It is a staggering number. Is it mostly due to the currency? To have


a loss of 4.6 billion, is it mostly the drop in the pound? It is. This


is a company that manufactures its aero engines in the UK and in


Singapore and a few in the states. But it sells everything in dollars.


If your costs are in sterling and sterling falls in the way it has,


and these contracts are arranged several years in advance, you get an


order and the delivery stage maybe six or seven years as head before it


is completed, you have to take your hedging at the start, so you have to


think where your currency might be five or six years before, that is


the problem for them, nobody anticipated sterling could fall in


the way it has, because we did not expect Brexit.


They are going to say the worst is behind them, drawing a line in the


sand, is that true? The worst is behind them in terms of hedging, I


hope. It is behind them in terms of the deferred prosecution agreement,


the cash is yet to come out, but there is one further straw in the


wind, the change of accounting standards, which will fit them next


year. It will be some years before we see really decent profits. The


underlying profits will be there, and they will get better because of


the cost efficiencies, but there are some straws in the wind yet. But


Rolls-Royce is a strong company, it will get through this, and it is


managing its way through all of its problems extreme you well with a


very good team. You are such a creep! I'm joking.


Our top story, there's a new man in charge


Wall Street executive and Hollywood movie financier,


Steven Mnuchin has been appointed US Treasury Secretary.


A quick look at how markets are faring.


A fairly mixed picture. The FTSE down. It is not mixed at all, it is


all down, isn't it? There is the pound and dollar. It


has been at 125, 130 all week. It is pretty stable. It is not going


anywhere. That's perhaps because there is no big news to shake the


pound, dollar rate. Have you ever touched down


after a long-haul flight Well, our next guest


is on a mission to make those days He's the boss of Acumen Design


Associates which specialises in putting the luxury back


into travel through The firm was founded in 1981


and focuses on transport Acumen made its name in the aviation


industry by designing the British Airways bed in the sky,


the world's first flat bed aboard More recently Acumen has


designed the next level in super-luxury commercial flight


with the Etihad Airways Residence which includes a living room


and separate bedroom with en suite Ian Dryburgh is CEO and Founder


of Acumen Design Associates Ian, it is great to have you with us


onth programme. I love this area. The first flat bed. Then and you're


dealing with 35 different airlines. So yeah, my question would be, if I


am he an airline, and I want you to make a seat, how are you going to


make it any different for me when you've done 35 others? Clearly, they


weren't all simultaneously. With every airline and every culture, an


airline is almost a flag carrier effectively and so each airline


generates its own brief. It generates new opportunities. So


where did the ideas come from? Is it the airline who say, "This is what


we want." Do you come up? Where is we want." Do you come up? Where is


the creativity? Acumen is an inowe Environment Agency'ses company as


much as waiting for a brief to come in. We've developed our own IP, I


might come up with a new super efficient layout for Business Class


as we've done for United Airlines so I would licence that IP to them.


Other times someone like another airline would come and say, "We want


the best first class in the world. Can you help us?" United's new


product, you designed that where? The idea came to me on the way home


on the train! On a train? You were sitting there... I was scribbling an


idea. Halfs it? What made you think about it? I was thinking it would be


the Holy Grail for airlines and customers in terms of efficiency and


by coming up with this new layout which nests the seats in line and


her ring bone we managed to create a super efficient lay-out. Is this


where you come up with your ideas, on the train? Quite often. Really?


Not exclusively. We have a very good team at Acumen which I'm very proud


of and it is very much a team effort. I'm wondering if you're part


of the some of the problem now for the airlines, I'm jesting, but a lot


of the airlines are getting rid of their first class product and it is


becoming a business or top of their range executive product. It is hard


to different ate between a first class seat now and the business


class seats are first class seats, aren't they? Very true. When you


look at what we created for BA, the bed in the sky, that was first class


and that's business class now. With the airlines reducing the size of


the first class cabins, most of them anyway, they often go down to our


dual class or try class. The battle ground shifted to economy and


business class moving forward. So you will design stuff for the likes


of me, and not just for the likes of Aaron? We're on the case! That's


going to be tricky. You are still limited. The airlines need X amount


of seats and you have only got so much space? It is a fine balance


when economics and looking after the passengers' interests and improving


their lot obviously. You do paper towels and also some health products


as well. That's right. Why do you suddenly rush off in different


directions and do other things? I thought you would specialise in just


doing seats and things like that? We are an innovations company. So we


get involved with product design as much as transport design. On our


innovation arm, we have been founding shareholders of start-ups,


you know, in terms of the paper company like you referred to, the


world's first round paper towel. A round paper towel? And medical


products. We got involved in a start-up on anti- anti-Deep Vein


Thrombosis. Clever professors came up with a technology and we turned


it into a product. We've got to wrap it up Ian. You must travel around


the world. How often do you fly on the seats that you've designed? Not


as often as I'd like! What if you got into one of your seats and


thought, "I don't like this. Maybe we need to tweak it." Hopefully that


keeps us in employment. That's what my wife tells me.


We appreciate your timement thank you very much.


In a moment we'll take a look through the Business Pages but first


here's a quick reminder of how to get in touch with us.


The Business Live page is where you can stay


ahead with all the day's breaking business news.


We'll keep you up-to-date with all the latest details


with insight and analysis from the BBC's team of editors


right around the world and we want to hear from you too.


Get involved on the BBC Business Live web page.


On Twitter we're at BBC business and you can find us on Facebook.


Business Live, on TV and online, whenever you need to know.


Just keep talking Jamie. Just keep talking, Jamie!


We are going to look at some of the business news stories and on the BBC


evens website. . website.. We got this story which sort of


began to break in the Budget. Self employment, rise in self employment


was damaging tax revenues because they are not paying as much tax? The


employment legislation was designed for the old world of employment


where everyone was directly employed or properly self-employed. Here you


have a number of clients and you're not working exclusively for anyone.


People who can work for one employer can be treated as self-employed like


delivery drivers. The gig economy? It is a double-edged sword. Some


people like it. They like freedom and at the BBC we have been talking


to people who have been talking about the up sides of the gig


economy, work when you want, but the down side is you don't get a


pension, you don't get paid holiday and ruthless employers will make you


rent the equipment you need to do your job. Really? It is a


double-edged sword and I think over time and we have this Government


report out today, over time employment legislation will tighten


up. Will they get tax back? If you stand back. Corporation tax is in


decline. We maybe heading for an era where corporation tax is no longer


levied on companies. You will end up with a thing where activity will be


taxed. That's where we're headed in the long-term. So employment


activity will be taxed because it is easy for companies to avoid


corporation tax. It becomes an optional activity. You're turning


this into HardTalk. This is a paper review!


Let's talk about drones. That is quite... Would you step into that?


Would you? You have got to work your way around a propeller. It is a


Chinese made drone. It was shown off at a show in Dubai. If you have been


to Dubai, Dubai's traffic is terrible by any world city


standards. It is awful. They have they will have this thing flying


around in Dubai in July. It carries one person. I'm not sure I'd jump


in. But if you travel on London Underground most of the time you're


travelling on a not driver controlled train. Not a driverless


train, but the trains are driven by computers. So transport systems are


largely run by machines rather than men. What happens if you have masses


of them up there, that's when it gets scary. And a Tube train is not


flying 500 feet up! Hopefully the technology is good


enough so it won't have lots of crashes. Less than a minute left.


Greece is back in the headlines, right. The amount of money it has to


pay off between now and July, it's staggering. There are periodic


crisis in Greece. A good way of gauging is looking at the price of


its bonds. Its debt? On its Government debt. When things are


really bad it got above 14%, we're only at 10% and 11%. We are a few


minutes away from midnight. It is the same argument, the IMF doesn't


want to lend money until it is reformed. Greece will never be able


to pay this money back. The debt will never be able to be repaid. At


sometime they will have to bite the bullet. That's hard for any German


politician to sell at the moment. It depends who is in charge in Europe


with all the votes going on. Dominic, thank you, mate.


Wrap it up Jamie. That's it from Business Live today. There will be


more business news throughout the day. We will see you later.


Hello there. Good morning. We will start with a look back at


yesterday's morning. There was a variety on offer. Many of us saw a


good deal of sunshine, but that wasn't the case for all. There was a


fair bit of cloud across the north-east


Download Subtitles