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This is Business Live from BBC News with Rachel Horne and Sally Bundock.
The plane-maker's profits slump by more than 60%.
Live from London, that's our top story on Wednesday, 22nd February.
The big drag on Airbus profits was the company's A400M
We'll find out where the project stands now.
Also in the programme, Hong Kong's former leader, Donald Tsang
We'll get the latest from our correspondent in Hong Kong.
And check out the markets, Lloyds Banking Group has
posted its best profits for ten years - their share price
We continue our Disability Works series by meeting the boss
of the tech company where all the consultants are
And what's the most selfish thing that you've ever done?
A new report on the toughest job interview questions is out
and we want to know what's the most surprising thing you've ever been
Now, profits have slumped at aerospace group Airbus during 2016.
The aircraft manufacturer has reported a 63% fall in net income
But that was after a one billion euro charge over its A400M
It has been a tumultuous year for the company.
It has been forced to accelerate last minute
plane deliveries in order to meet key targets.
There has also been a slowdown in demand for jets.
It has been forced to cut production of the prestige A380 superjumbo.
And the A400M military transport plane has also proved a major drag
the project has been plagued by delays and technical problems.
Robert Wall is senior aerospace and aviation editor,
What do you make of the numbers? The Europe joins us now.
What do you make of the numbers? The numbers are mixed. On the xhefrtion
side, things are fine, it is overshadowed by A400 M where the 1.2
billion charge on top of the 1 billion earlier in the year takes
the shine off what would have been a decent year, but that programme is
just something Airbus is unable to get its arms around and really get
fixed. It seems to be failing to take off at the moment. When will
they see that A400M project reaping some rewards for them? Well, that's
a good question. Will it ever really reap rewards for them is another
question? Right now they're worried about stopping the financial
bleeding. The CEO spoke to some of us reporters this morning and said
they're going back to the governments to ask for relief so
some of the forced penalties that are being forced for delayed planes
are being eased. They want the governments to co-operate more to
get the plane into the field, that's been very difficult, that's a
complicated programme structure. So, lots of reasons for these problems
and no clear solutions and certainly no easy solutions. At the same time,
the company though has restrict tured. It's the first set of
results, isn't it, as Airbus Group, as posed to EADS, what's the outlook
for the company as a whole, despite the A400M difficulties? You have to
always think about the fact that A400M, it is an important programme
for them, but Airbus is all about the commercial airliner delivery
market. They delivered strongly last year. Aircraft deliveries, airliner
deliveries this should be more than 700. They seem to be executing on
their programmes reasonably well. This is another challenging year for
them as they will admit. The outlook is good for them on that side, but
you know, if you keep having to pay, have the big charges on one or two
programmes that's obviously not something that management can really
stomach. No, tricky. Tricky times, thank you. Robert Wall from the Wall
Street Journal. Interesting.
Yahoo has agreed to cut $350 million off its original asking price
in the sale of its internet business to US telecoms giant, Verizon.
The new deal comes after two huge cyber attacks at Yahoo ending months
The world's largest retailer has seen a boost in sales.
Wal-Mart has reported profits rising 1.8%, higher
An increase in online sales and higher number of customers
going in to their stores lifted profits, leading to
the tenth straight quarter of comparable sales growth.
That's pretty impressive. Lloyds reports its highest profits
for a decade. We'll talk more about that in a moment. But also when
you're talking about people walking into shops, not the case for the UK
high street. Slow progress here in the UK. In terms of access for
disabled people, that's part of our disability works week. There is lots
of other stories as well on our website. Of course, Lloyds shares
going up some 4% on the markets. But all sorts of other stories as well.
Just trying to find them here. Lots about Lloyds on the Business Live
page. But also Hayes UK, its profits have been stymied somewhat by the
decision last June, the UK, to exit the European Union. So an EU
referendum took the wind out of the UK interim results for the UK
that operating profits in the UK and that operating profits in the UK and
Ireland fell by 29% from the six months to the end of December. Also
we've got metro Bank, this is another good news story for banking.
Metro bank's boss has been a guest on Business Live. The founder is a
proud man. Metro Bank coming out with positive results. The markets
are buoyant and enjoying the figures. Metro Bank is one of the
banks that we're familiar with in the UK. Metro Bank is focussing on
bringing customers in and maintaining that customer cashier
we heard earlier in the week, we heard earlier in the week,
opening three cashierless branches in the States. You just go in. Look
at headline, "Boring is beautiful." Lloyds is back to being a boring
bank and boring is good! News about lOulds. It was bailed out by the UK
taxpayer following the 2008 financial crisis. The Government
saying now that the Lloyds will be returned fully to private ownership.
There is a 5% stake left which is owned by the UK or UK taxpayers as
it were and the plan is for it to be returned fully to private ownership.
So lots of stories on our website as ever. Rachel over to you.
Sally, that was a thorough and comprehensive coverage of our news
stories. Asian stocks up overnight. Despite
the yen strengthened. Markets were boosted by strong
reports from retailers including Wal-Mart. Let's look at the European
markets. We mentioned Lloyds. Their shares are up by almost 5% this
morning. They posted their best profits or ten years, also impacting
the European markets we will have revised UK GDP figures out for the
fourth quarter in under an hour's time. The first reading for the last
three months of the year was 0.6%. This report out at 9.30am UK time is
an update with more detail of investment. Economists expecting it
to stick at 0.6%, something that could be revised up to 0.7%.
And Michelle Fleury has the details about what's ahead
Wall Street is the US Central Bank, not Donald Trump's economic policies
that will be in the spotlight. The US Federal Reserve releases the
minutes from its last policy meeting setting and investors will be
pouring over it for clues about the timing of any future rate hike. Now,
there has been a lot of speculation as to whether or not the Federal
Reserve may increase rates, may lift rates, in March at their next
meeting. Janet Yelland, the yet of the Central Bank was testifying on
Capitol Hill and was suggesting that the economy was improving and there
were dangers of waiting too long to move. Now, given that we're talking
about an environment in which interest rates are going up, there
has been concerns about what the knock-on effect will be on borrowing
costs, specifically mortgages. We should get another clue as to how
the housing sector is performing when the National Association of
Realitiors releases home sales for January and Wall Street will be
looking at that for any clues as to whether or not there is a slowdown
in the housing sector which after all has been one of the bright spots
for the US economy. Jane Foley is Senior
Currency Strategist Nice to see you. So much going on
and Michelle touching on the Fed minutes which are out today. Daopk
there will be a lot of anticipation as to what might be in there in
terms of clues about the next rate rise? There really is. We have had
the statement for the meeting already. This was a couple of weeks
ago. We get the full report and the market is looking for clues a to
whether or not the Fed is of the mind to hike interest rates in March
June. The Fed said it could hike three times this year. The markets
are a little bit dubious or has been dubious, but there are seven more
meetings this year, if it is going to do three hikes, it has got to get
a move on. Several officials have been hawkish meaning that they are
more likely perhaps to raise rates than not, but there is still lots of
unsirenities in the US economy particularly related to Trump and
what he could do with spending. This is the second rev of figures. Just
explain that to us. We get the first GDP, only 40% of the information
they need, is that right and then they get more and they go, "Yeah, we
were right." Or, "No, we were wrong." They get more data coming in
and they are able to fine tune the data and we will get more of the
breakdown, we will see how investment was in the final quarter
of last year and the services sector. The services sector is the
biggest part of the UK economy and how that fared as well. What do you
make of Lloyds? Shares up strongly. The numbers on the face of it look
quite spectacular, don't they? They really do. This is a huge increase
in profits relative to the previous quarter, but of course, there are a
little bit of warning signs and provisions for bad loans up 14% and
total income below last year. Lloyds said their outlook depends on that
of the UK economy and there are warnings and uncertainty about the
UK economy related to how the consumer will fair because of Brexit
uncertainty. All right, thank you very much, Jane. Jane will be back.
Jane have a think about what the trickiest interview question you've
been asked. Or that you have asked! Oh yes. Confessions of an
interviewer on Business Live! Still to come, we'll get the latest
in our Disability Works series. The boss of a leading tech firm
explains why his firm only employs You're with Business
Live from BBC News. Lloyds Banking Group,
which also owns Halifax and the Bank of Scotland,
has reported its full It's annual pre-tax profits rose
to ?4.2 billion from ?1.6 billion You might remember Lloyds was bailed
out at the height of the financial crisis when the Government
spent ?20.3 billion to But in recent months, the Government
has been quietly selling off its remaining shares so it's now
under 5% owned by the taxpayer. Our Business Correspondent Theo
Leggett joins us now Give us a bit more detail on Lloyds.
Look at that chart behind you. That talks about the reaction today.
Well, you always know I like a big spike on one of my graphs. I've got
one this morning. Is how the markets reacted from the results from
Lloyds. Up 3.6%. A certainlying of optimism. On the face of it, the
results look very good, but just as HSBC's results yesterday looked bad,
but weren't as bad beneath the surface, these aren't as good
beneath the surface. We are seeing a big increase in profits over last
year when you account for things like PPI insurance payments. Now,
last year, Lloyds had to set aside about ?4 billion for compensation
for pment PI mis-selling, payment protection insurance, this year it
is just ?1 billion and that elevates the profits. If you look at
underlying profits, it is slightly worse than last year. So although we
have had the enthusiastic response from the markets, underneath it all,
you know, the bank is still trueing along reasonably well, but not in a
spectacular fashion just as HSBC yesterday when you stripped out the
one off items, the writing off the value of businesses that haven't
performed well, underneath it all, it was doing pretty much the same as
it had been the year. So reasons to be optimistic, but it depends really
for Lloyds, it is a boring bank and the investors seem to like boring
banks today, it is a bread and butter bank, it is a retail bank
focussed on the UK, but that means its performance depends on what
happens with the UK economy and we have a lot of uncertainty over the
Brexit negotiations and that's going to affect Lloyds. They say the
outlook is reasonable, but who can tell?
Thank you, Theo, we will see you again soon.
Have you ever been delayed on a flight? Yes. Shocking. Five airlines
that fly into Europe have been told they must pay compensation to
passengers for delays if they are at their final destination more three
hours late. You're watching Business Live -
our top story, European aircraft maker Airbus sees its profits plunge
by more than sixty per cent. Its A400M military transport plane
has been plagued by delays and technical problems,
and has put a big dent in earnings. A quick look at how
markets are faring.... Lloyds is the star of the week.
Metro bank shares also other percent. -- up 1%.
It's thought that around 70 million people around
the world are somewhere on the autistic spectrum.
Yet perceptions about autistic people and their abilities can
We continue our week long Disability Works series by focusing
It was founded by Dirk Muller-Remus in Berlin in November 2011.
Auticon taps into the cognitive abilities of Autistic adults,
skills such as logic, pattern recognition,
precision and ability to intuitively spot errors -
and gets them into mainstream employment as consultants.
The enterprise employs 140 staff, 80% which are
Its clients range from big corporate names like Siemens,
Allianz and UniCredit to smaller start ups.
Kurt Schoeffer is the CEO of Auticon.
Thank you for coming in. How did the company come about? The founder is
autistic himself, he could find ways strengths and deficits were. His
thinking was, if he was helped with the deficits, should he not be
people. The company was started, people. The company was started,
presumably it was quite difficult to get going? Very specific company,
looking for very specific individuals. How do you get the ball
rolling? First of all, we were lucky to find quite fast and very good
colleagues, we are very interesting CV 's. Particularly strong in the IT
field. The issue was to find customers at the beginning. We were
a tiny company, did not have a big track record, so one. The theme
itself helped us, many people understand, if you bring autistic
people into the right areas, they are good at working, mental
recognition, finding mistakes without needing to look for it. We
tried it out, fortunately we got big support from shareholders, we were
able to step into companies like Siemens, and our colleagues did a
tremendous job. Immediately the orders were elongated. We rolled out
to Germany, then the UK and France. Happy to replicate this as often as
possible. You get a consultant, you employ them, they work for you,
somebody on the autistic spectrum. The pair them up with a buddy and a
life coach, they go with them to the client, to help them with the things
they are not so good at, the social skills. Exactly, besides the
fantastic consultants, the most important role we have in the
company is our job coaches. Their task, in a four month period,
preparing the consultants before sending them out to customers, they
need to understand what works, and what does not work. We are very open
with that. We tell the customer exactly what he can expect. We tell
the consultants what you can expect. We have a fantastic track record
than we did not need to stop any project. Tell us some of the people
you have taken on board. Quite incredible stories, trying over and
over again to get employment, and failing. 10-15% of autistic people
are on the first level market. How many of them having jobs suiting
their special knowledge or special interest? The number is single
unemployed, people who have not unemployed, people who have not
survived the trial period in other companies five or six times. It is a
whole range, the 20-year-old guy programming since he was eight years
old, up to doctors and professors with 30 years professional
experience. You have to provide a parental role as the boss of the
company? You have to look after them completely. Not just about their
role. Providing a service for the clients. The important thing is we
do not want to offer jobs, we want to offer careers for the guys. They
can develop nicely if you support them in the right area. At the end
of the day, we feel very responsible for what we're doing, for the
consultants, the employees. It is a fantastic thing to do. Our customers
also feel quite strongly in the teams where the consultants are,
they make a big difference, from a working point of view, they also
change the perception. People who are different. That is what we can
do in the end, we can help people to understand how good it is to have
diverse teams, how beneficial it is for everybody. You are speaking in
the green room from the attraction for a lot of clients is your
consultants can solve the unsolvable. What sort of information
do you need to give the clients. There may be brutal honesty? Do not
force a handshake? First of all we call forces a different operating
system. This can lead to results you would not expect. Typically as we
know our consultants in and out, we have to give a few tips to help
partners. Do not force them to shake hands. Do not be surprised about
honesty, all those kind of things. Literally two, three things for
consultant. If you see the feedback of our customers, you can see on one
hand, great results, on the other side much easier than they thought
to bring people. Thanks so much for coming in. Good to talk to you and
hear about your company. So many more stories like this on our
website. You can find more on our special
coverage of this issue... and how businesses
are dealing with it, And on Twitter at hashtag -
disability works. The former leader of Hong Kong has
been sentenced to 20 months in prison for the misconduct in office.
He was found guilty of hiding dealings with Hong Kong tycoon when
applying for broadcasting licences. We have more details from Hong Kong.
Giuliana, this sounds quite shocking, the man in charge of the
city stayed behind bars. Extremely shocking. The judge said never
before in his entire judicial career had he seen someone falls so
quickly. He was sentenced today. The jury found him guilty last week, one
charge of misconduct in public office. They essentially believe he
concealed his business relationship with a Hong Kong businessman, at the
time that the businessman was trying to get his licences past three. --
passing through. Guilty on one count, not guilty on the other.
Looks like the prosecution will want to press for very real
Jane Foley is Senior Currency Strategist at Rabobank -
The 20 toughest interview questions. Some interesting questions? Some of
them, I have been asking the make-up ladies some of them, asking about
sexuality, whether they were planning to have a family. I was
asked, what does your husband do? Trying to work out whether I was
thinking of taking maternity leave. Not very nice questions. We had a
tweet from one viewer, saying have you ever attempted to overthrow the
government, or the state of Texas? What about the one, what am I
thinking? You are thinking, you should hire me. Is that the right
response? Some of the other stories. In the Telegraph, the Bank of
England, our economic forecasts will always be wrong. That is the
headline, but not actually what they said. It is referring to the
forecast before breakfast. The doom and gloom of the leave out. The
chief economist said it was a Michael Fish moment. One of the
reasons they got it wrong, and many forecasters got it wrong, the bank
anticipated that consumers would be so anxious they would stop spending
and save more, they did not, in fact they borrowed more, or
wheels of the economy. The most wheels of the economy. The most
recent lending data, there has been a calming down, retail sales in
December rising. For our international viewers,
Michael Fish was a weather forecaster who got a very wrong. See
you soon. -- got it very wrong. Hello. Some really nasty weather on
the way tomorrow, in the guise of Storm Doris. Likely to cause some