22/02/2017 BBC Business Live


22/02/2017

Similar Content

Browse content similar to 22/02/2017. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

This is Business Live from BBC News with Rachel Horne and Sally Bundock.

:00:00.:00:10.

The plane-maker's profits slump by more than 60%.

:00:11.:00:16.

Live from London, that's our top story on Wednesday, 22nd February.

:00:17.:00:33.

The big drag on Airbus profits was the company's A400M

:00:34.:00:38.

We'll find out where the project stands now.

:00:39.:00:43.

Also in the programme, Hong Kong's former leader, Donald Tsang

:00:44.:00:46.

We'll get the latest from our correspondent in Hong Kong.

:00:47.:00:58.

And check out the markets, Lloyds Banking Group has

:00:59.:01:00.

posted its best profits for ten years - their share price

:01:01.:01:03.

We continue our Disability Works series by meeting the boss

:01:04.:01:08.

of the tech company where all the consultants are

:01:09.:01:10.

And what's the most selfish thing that you've ever done?

:01:11.:01:25.

A new report on the toughest job interview questions is out

:01:26.:01:27.

and we want to know what's the most surprising thing you've ever been

:01:28.:01:30.

Now, profits have slumped at aerospace group Airbus during 2016.

:01:31.:01:48.

The aircraft manufacturer has reported a 63% fall in net income

:01:49.:01:50.

But that was after a one billion euro charge over its A400M

:01:51.:01:57.

It has been a tumultuous year for the company.

:01:58.:02:04.

It has been forced to accelerate last minute

:02:05.:02:06.

plane deliveries in order to meet key targets.

:02:07.:02:09.

There has also been a slowdown in demand for jets.

:02:10.:02:12.

It has been forced to cut production of the prestige A380 superjumbo.

:02:13.:02:20.

And the A400M military transport plane has also proved a major drag

:02:21.:02:23.

the project has been plagued by delays and technical problems.

:02:24.:02:29.

Robert Wall is senior aerospace and aviation editor,

:02:30.:02:31.

What do you make of the numbers? The Europe joins us now.

:02:32.:02:38.

What do you make of the numbers? The numbers are mixed. On the xhefrtion

:02:39.:02:46.

side, things are fine, it is overshadowed by A400 M where the 1.2

:02:47.:02:52.

billion charge on top of the 1 billion earlier in the year takes

:02:53.:02:56.

the shine off what would have been a decent year, but that programme is

:02:57.:03:01.

just something Airbus is unable to get its arms around and really get

:03:02.:03:04.

fixed. It seems to be failing to take off at the moment. When will

:03:05.:03:10.

they see that A400M project reaping some rewards for them? Well, that's

:03:11.:03:16.

a good question. Will it ever really reap rewards for them is another

:03:17.:03:21.

question? Right now they're worried about stopping the financial

:03:22.:03:26.

bleeding. The CEO spoke to some of us reporters this morning and said

:03:27.:03:30.

they're going back to the governments to ask for relief so

:03:31.:03:34.

some of the forced penalties that are being forced for delayed planes

:03:35.:03:38.

are being eased. They want the governments to co-operate more to

:03:39.:03:42.

get the plane into the field, that's been very difficult, that's a

:03:43.:03:45.

complicated programme structure. So, lots of reasons for these problems

:03:46.:03:50.

and no clear solutions and certainly no easy solutions. At the same time,

:03:51.:03:53.

the company though has restrict tured. It's the first set of

:03:54.:04:00.

results, isn't it, as Airbus Group, as posed to EADS, what's the outlook

:04:01.:04:06.

for the company as a whole, despite the A400M difficulties? You have to

:04:07.:04:11.

always think about the fact that A400M, it is an important programme

:04:12.:04:15.

for them, but Airbus is all about the commercial airliner delivery

:04:16.:04:18.

market. They delivered strongly last year. Aircraft deliveries, airliner

:04:19.:04:24.

deliveries this should be more than 700. They seem to be executing on

:04:25.:04:28.

their programmes reasonably well. This is another challenging year for

:04:29.:04:32.

them as they will admit. The outlook is good for them on that side, but

:04:33.:04:38.

you know, if you keep having to pay, have the big charges on one or two

:04:39.:04:42.

programmes that's obviously not something that management can really

:04:43.:04:45.

stomach. No, tricky. Tricky times, thank you. Robert Wall from the Wall

:04:46.:04:49.

Street Journal. Interesting.

:04:50.:04:54.

Yahoo has agreed to cut $350 million off its original asking price

:04:55.:05:00.

in the sale of its internet business to US telecoms giant, Verizon.

:05:01.:05:02.

The new deal comes after two huge cyber attacks at Yahoo ending months

:05:03.:05:06.

The world's largest retailer has seen a boost in sales.

:05:07.:05:12.

Wal-Mart has reported profits rising 1.8%, higher

:05:13.:05:14.

An increase in online sales and higher number of customers

:05:15.:05:21.

going in to their stores lifted profits, leading to

:05:22.:05:23.

the tenth straight quarter of comparable sales growth.

:05:24.:05:32.

That's pretty impressive. Lloyds reports its highest profits

:05:33.:05:41.

for a decade. We'll talk more about that in a moment. But also when

:05:42.:05:45.

you're talking about people walking into shops, not the case for the UK

:05:46.:05:50.

high street. Slow progress here in the UK. In terms of access for

:05:51.:05:55.

disabled people, that's part of our disability works week. There is lots

:05:56.:05:58.

of other stories as well on our website. Of course, Lloyds shares

:05:59.:06:05.

going up some 4% on the markets. But all sorts of other stories as well.

:06:06.:06:10.

Just trying to find them here. Lots about Lloyds on the Business Live

:06:11.:06:17.

page. But also Hayes UK, its profits have been stymied somewhat by the

:06:18.:06:21.

decision last June, the UK, to exit the European Union. So an EU

:06:22.:06:26.

referendum took the wind out of the UK interim results for the UK

:06:27.:06:32.

that operating profits in the UK and that operating profits in the UK and

:06:33.:06:36.

Ireland fell by 29% from the six months to the end of December. Also

:06:37.:06:41.

we've got metro Bank, this is another good news story for banking.

:06:42.:06:50.

Metro bank's boss has been a guest on Business Live. The founder is a

:06:51.:06:56.

proud man. Metro Bank coming out with positive results. The markets

:06:57.:07:00.

are buoyant and enjoying the figures. Metro Bank is one of the

:07:01.:07:12.

banks that we're familiar with in the UK. Metro Bank is focussing on

:07:13.:07:18.

bringing customers in and maintaining that customer cashier

:07:19.:07:21.

we heard earlier in the week, we heard earlier in the week,

:07:22.:07:26.

opening three cashierless branches in the States. You just go in. Look

:07:27.:07:34.

at headline, "Boring is beautiful." Lloyds is back to being a boring

:07:35.:07:39.

bank and boring is good! News about lOulds. It was bailed out by the UK

:07:40.:07:43.

taxpayer following the 2008 financial crisis. The Government

:07:44.:07:48.

saying now that the Lloyds will be returned fully to private ownership.

:07:49.:07:52.

There is a 5% stake left which is owned by the UK or UK taxpayers as

:07:53.:07:57.

it were and the plan is for it to be returned fully to private ownership.

:07:58.:08:01.

So lots of stories on our website as ever. Rachel over to you.

:08:02.:08:07.

Sally, that was a thorough and comprehensive coverage of our news

:08:08.:08:13.

stories. Asian stocks up overnight. Despite

:08:14.:08:20.

the yen strengthened. Markets were boosted by strong

:08:21.:08:24.

reports from retailers including Wal-Mart. Let's look at the European

:08:25.:08:30.

markets. We mentioned Lloyds. Their shares are up by almost 5% this

:08:31.:08:34.

morning. They posted their best profits or ten years, also impacting

:08:35.:08:38.

the European markets we will have revised UK GDP figures out for the

:08:39.:08:42.

fourth quarter in under an hour's time. The first reading for the last

:08:43.:08:46.

three months of the year was 0.6%. This report out at 9.30am UK time is

:08:47.:08:51.

an update with more detail of investment. Economists expecting it

:08:52.:08:57.

to stick at 0.6%, something that could be revised up to 0.7%.

:08:58.:09:02.

And Michelle Fleury has the details about what's ahead

:09:03.:09:04.

Wall Street is the US Central Bank, not Donald Trump's economic policies

:09:05.:09:12.

that will be in the spotlight. The US Federal Reserve releases the

:09:13.:09:16.

minutes from its last policy meeting setting and investors will be

:09:17.:09:19.

pouring over it for clues about the timing of any future rate hike. Now,

:09:20.:09:23.

there has been a lot of speculation as to whether or not the Federal

:09:24.:09:29.

Reserve may increase rates, may lift rates, in March at their next

:09:30.:09:35.

meeting. Janet Yelland, the yet of the Central Bank was testifying on

:09:36.:09:38.

Capitol Hill and was suggesting that the economy was improving and there

:09:39.:09:42.

were dangers of waiting too long to move. Now, given that we're talking

:09:43.:09:46.

about an environment in which interest rates are going up, there

:09:47.:09:49.

has been concerns about what the knock-on effect will be on borrowing

:09:50.:09:53.

costs, specifically mortgages. We should get another clue as to how

:09:54.:10:00.

the housing sector is performing when the National Association of

:10:01.:10:02.

Realitiors releases home sales for January and Wall Street will be

:10:03.:10:05.

looking at that for any clues as to whether or not there is a slowdown

:10:06.:10:08.

in the housing sector which after all has been one of the bright spots

:10:09.:10:10.

for the US economy. Jane Foley is Senior

:10:11.:10:16.

Currency Strategist Nice to see you. So much going on

:10:17.:10:24.

and Michelle touching on the Fed minutes which are out today. Daopk

:10:25.:10:26.

there will be a lot of anticipation as to what might be in there in

:10:27.:10:30.

terms of clues about the next rate rise? There really is. We have had

:10:31.:10:33.

the statement for the meeting already. This was a couple of weeks

:10:34.:10:36.

ago. We get the full report and the market is looking for clues a to

:10:37.:10:40.

whether or not the Fed is of the mind to hike interest rates in March

:10:41.:10:43.

June. The Fed said it could hike three times this year. The markets

:10:44.:10:49.

are a little bit dubious or has been dubious, but there are seven more

:10:50.:10:51.

meetings this year, if it is going to do three hikes, it has got to get

:10:52.:10:57.

a move on. Several officials have been hawkish meaning that they are

:10:58.:11:00.

more likely perhaps to raise rates than not, but there is still lots of

:11:01.:11:07.

unsirenities in the US economy particularly related to Trump and

:11:08.:11:11.

what he could do with spending. This is the second rev of figures. Just

:11:12.:11:16.

explain that to us. We get the first GDP, only 40% of the information

:11:17.:11:19.

they need, is that right and then they get more and they go, "Yeah, we

:11:20.:11:25.

were right." Or, "No, we were wrong." They get more data coming in

:11:26.:11:30.

and they are able to fine tune the data and we will get more of the

:11:31.:11:33.

breakdown, we will see how investment was in the final quarter

:11:34.:11:36.

of last year and the services sector. The services sector is the

:11:37.:11:39.

biggest part of the UK economy and how that fared as well. What do you

:11:40.:11:43.

make of Lloyds? Shares up strongly. The numbers on the face of it look

:11:44.:11:47.

quite spectacular, don't they? They really do. This is a huge increase

:11:48.:11:52.

in profits relative to the previous quarter, but of course, there are a

:11:53.:11:58.

little bit of warning signs and provisions for bad loans up 14% and

:11:59.:12:03.

total income below last year. Lloyds said their outlook depends on that

:12:04.:12:07.

of the UK economy and there are warnings and uncertainty about the

:12:08.:12:10.

UK economy related to how the consumer will fair because of Brexit

:12:11.:12:13.

uncertainty. All right, thank you very much, Jane. Jane will be back.

:12:14.:12:18.

Jane have a think about what the trickiest interview question you've

:12:19.:12:22.

been asked. Or that you have asked! Oh yes. Confessions of an

:12:23.:12:26.

interviewer on Business Live! Still to come, we'll get the latest

:12:27.:12:31.

in our Disability Works series. The boss of a leading tech firm

:12:32.:12:34.

explains why his firm only employs You're with Business

:12:35.:12:37.

Live from BBC News. Lloyds Banking Group,

:12:38.:12:44.

which also owns Halifax and the Bank of Scotland,

:12:45.:12:48.

has reported its full It's annual pre-tax profits rose

:12:49.:12:51.

to ?4.2 billion from ?1.6 billion You might remember Lloyds was bailed

:12:52.:12:54.

out at the height of the financial crisis when the Government

:12:55.:12:59.

spent ?20.3 billion to But in recent months, the Government

:13:00.:13:01.

has been quietly selling off its remaining shares so it's now

:13:02.:13:08.

under 5% owned by the taxpayer. Our Business Correspondent Theo

:13:09.:13:11.

Leggett joins us now Give us a bit more detail on Lloyds.

:13:12.:13:20.

Look at that chart behind you. That talks about the reaction today.

:13:21.:13:26.

Well, you always know I like a big spike on one of my graphs. I've got

:13:27.:13:30.

one this morning. Is how the markets reacted from the results from

:13:31.:13:34.

Lloyds. Up 3.6%. A certainlying of optimism. On the face of it, the

:13:35.:13:40.

results look very good, but just as HSBC's results yesterday looked bad,

:13:41.:13:44.

but weren't as bad beneath the surface, these aren't as good

:13:45.:13:47.

beneath the surface. We are seeing a big increase in profits over last

:13:48.:13:51.

year when you account for things like PPI insurance payments. Now,

:13:52.:13:55.

last year, Lloyds had to set aside about ?4 billion for compensation

:13:56.:14:00.

for pment PI mis-selling, payment protection insurance, this year it

:14:01.:14:03.

is just ?1 billion and that elevates the profits. If you look at

:14:04.:14:08.

underlying profits, it is slightly worse than last year. So although we

:14:09.:14:12.

have had the enthusiastic response from the markets, underneath it all,

:14:13.:14:17.

you know, the bank is still trueing along reasonably well, but not in a

:14:18.:14:22.

spectacular fashion just as HSBC yesterday when you stripped out the

:14:23.:14:25.

one off items, the writing off the value of businesses that haven't

:14:26.:14:28.

performed well, underneath it all, it was doing pretty much the same as

:14:29.:14:33.

it had been the year. So reasons to be optimistic, but it depends really

:14:34.:14:37.

for Lloyds, it is a boring bank and the investors seem to like boring

:14:38.:14:40.

banks today, it is a bread and butter bank, it is a retail bank

:14:41.:14:45.

focussed on the UK, but that means its performance depends on what

:14:46.:14:48.

happens with the UK economy and we have a lot of uncertainty over the

:14:49.:14:50.

Brexit negotiations and that's going to affect Lloyds. They say the

:14:51.:14:53.

outlook is reasonable, but who can tell?

:14:54.:14:57.

Thank you, Theo, we will see you again soon.

:14:58.:15:01.

Have you ever been delayed on a flight? Yes. Shocking. Five airlines

:15:02.:15:08.

that fly into Europe have been told they must pay compensation to

:15:09.:15:12.

passengers for delays if they are at their final destination more three

:15:13.:15:15.

hours late. You're watching Business Live -

:15:16.:15:17.

our top story, European aircraft maker Airbus sees its profits plunge

:15:18.:15:19.

by more than sixty per cent. Its A400M military transport plane

:15:20.:15:25.

has been plagued by delays and technical problems,

:15:26.:15:30.

and has put a big dent in earnings. A quick look at how

:15:31.:15:33.

markets are faring.... Lloyds is the star of the week.

:15:34.:15:46.

Metro bank shares also other percent. -- up 1%.

:15:47.:15:55.

It's thought that around 70 million people around

:15:56.:15:57.

the world are somewhere on the autistic spectrum.

:15:58.:15:59.

Yet perceptions about autistic people and their abilities can

:16:00.:16:01.

We continue our week long Disability Works series by focusing

:16:02.:16:05.

It was founded by Dirk Muller-Remus in Berlin in November 2011.

:16:06.:16:24.

Auticon taps into the cognitive abilities of Autistic adults,

:16:25.:16:26.

skills such as logic, pattern recognition,

:16:27.:16:28.

precision and ability to intuitively spot errors -

:16:29.:16:30.

and gets them into mainstream employment as consultants.

:16:31.:16:32.

The enterprise employs 140 staff, 80% which are

:16:33.:16:34.

Its clients range from big corporate names like Siemens,

:16:35.:16:37.

Allianz and UniCredit to smaller start ups.

:16:38.:16:40.

Kurt Schoeffer is the CEO of Auticon.

:16:41.:16:47.

Thank you for coming in. How did the company come about? The founder is

:16:48.:16:59.

autistic himself, he could find ways strengths and deficits were. His

:17:00.:17:04.

thinking was, if he was helped with the deficits, should he not be

:17:05.:17:08.

people. The company was started, people. The company was started,

:17:09.:17:15.

presumably it was quite difficult to get going? Very specific company,

:17:16.:17:19.

looking for very specific individuals. How do you get the ball

:17:20.:17:26.

rolling? First of all, we were lucky to find quite fast and very good

:17:27.:17:29.

colleagues, we are very interesting CV 's. Particularly strong in the IT

:17:30.:17:39.

field. The issue was to find customers at the beginning. We were

:17:40.:17:44.

a tiny company, did not have a big track record, so one. The theme

:17:45.:17:51.

itself helped us, many people understand, if you bring autistic

:17:52.:17:54.

people into the right areas, they are good at working, mental

:17:55.:17:59.

recognition, finding mistakes without needing to look for it. We

:18:00.:18:06.

tried it out, fortunately we got big support from shareholders, we were

:18:07.:18:11.

able to step into companies like Siemens, and our colleagues did a

:18:12.:18:19.

tremendous job. Immediately the orders were elongated. We rolled out

:18:20.:18:27.

to Germany, then the UK and France. Happy to replicate this as often as

:18:28.:18:32.

possible. You get a consultant, you employ them, they work for you,

:18:33.:18:37.

somebody on the autistic spectrum. The pair them up with a buddy and a

:18:38.:18:41.

life coach, they go with them to the client, to help them with the things

:18:42.:18:45.

they are not so good at, the social skills. Exactly, besides the

:18:46.:18:53.

fantastic consultants, the most important role we have in the

:18:54.:18:59.

company is our job coaches. Their task, in a four month period,

:19:00.:19:02.

preparing the consultants before sending them out to customers, they

:19:03.:19:07.

need to understand what works, and what does not work. We are very open

:19:08.:19:12.

with that. We tell the customer exactly what he can expect. We tell

:19:13.:19:18.

the consultants what you can expect. We have a fantastic track record

:19:19.:19:22.

than we did not need to stop any project. Tell us some of the people

:19:23.:19:29.

you have taken on board. Quite incredible stories, trying over and

:19:30.:19:33.

over again to get employment, and failing. 10-15% of autistic people

:19:34.:19:41.

are on the first level market. How many of them having jobs suiting

:19:42.:19:44.

their special knowledge or special interest? The number is single

:19:45.:19:53.

unemployed, people who have not unemployed, people who have not

:19:54.:19:58.

survived the trial period in other companies five or six times. It is a

:19:59.:20:07.

whole range, the 20-year-old guy programming since he was eight years

:20:08.:20:12.

old, up to doctors and professors with 30 years professional

:20:13.:20:19.

experience. You have to provide a parental role as the boss of the

:20:20.:20:23.

company? You have to look after them completely. Not just about their

:20:24.:20:27.

role. Providing a service for the clients. The important thing is we

:20:28.:20:33.

do not want to offer jobs, we want to offer careers for the guys. They

:20:34.:20:37.

can develop nicely if you support them in the right area. At the end

:20:38.:20:42.

of the day, we feel very responsible for what we're doing, for the

:20:43.:20:47.

consultants, the employees. It is a fantastic thing to do. Our customers

:20:48.:20:54.

also feel quite strongly in the teams where the consultants are,

:20:55.:20:57.

they make a big difference, from a working point of view, they also

:20:58.:21:01.

change the perception. People who are different. That is what we can

:21:02.:21:09.

do in the end, we can help people to understand how good it is to have

:21:10.:21:12.

diverse teams, how beneficial it is for everybody. You are speaking in

:21:13.:21:17.

the green room from the attraction for a lot of clients is your

:21:18.:21:22.

consultants can solve the unsolvable. What sort of information

:21:23.:21:29.

do you need to give the clients. There may be brutal honesty? Do not

:21:30.:21:38.

force a handshake? First of all we call forces a different operating

:21:39.:21:43.

system. This can lead to results you would not expect. Typically as we

:21:44.:21:50.

know our consultants in and out, we have to give a few tips to help

:21:51.:21:53.

partners. Do not force them to shake hands. Do not be surprised about

:21:54.:22:00.

honesty, all those kind of things. Literally two, three things for

:22:01.:22:05.

consultant. If you see the feedback of our customers, you can see on one

:22:06.:22:11.

hand, great results, on the other side much easier than they thought

:22:12.:22:15.

to bring people. Thanks so much for coming in. Good to talk to you and

:22:16.:22:20.

hear about your company. So many more stories like this on our

:22:21.:22:21.

website. You can find more on our special

:22:22.:22:22.

coverage of this issue... and how businesses

:22:23.:22:25.

are dealing with it, And on Twitter at hashtag -

:22:26.:22:27.

disability works. The former leader of Hong Kong has

:22:28.:22:39.

been sentenced to 20 months in prison for the misconduct in office.

:22:40.:22:44.

He was found guilty of hiding dealings with Hong Kong tycoon when

:22:45.:22:50.

applying for broadcasting licences. We have more details from Hong Kong.

:22:51.:22:58.

Giuliana, this sounds quite shocking, the man in charge of the

:22:59.:23:03.

city stayed behind bars. Extremely shocking. The judge said never

:23:04.:23:10.

before in his entire judicial career had he seen someone falls so

:23:11.:23:15.

quickly. He was sentenced today. The jury found him guilty last week, one

:23:16.:23:20.

charge of misconduct in public office. They essentially believe he

:23:21.:23:25.

concealed his business relationship with a Hong Kong businessman, at the

:23:26.:23:30.

time that the businessman was trying to get his licences past three. --

:23:31.:23:40.

passing through. Guilty on one count, not guilty on the other.

:23:41.:23:44.

Looks like the prosecution will want to press for very real

:23:45.:23:48.

Jane Foley is Senior Currency Strategist at Rabobank -

:23:49.:23:55.

The 20 toughest interview questions. Some interesting questions? Some of

:23:56.:24:09.

them, I have been asking the make-up ladies some of them, asking about

:24:10.:24:13.

sexuality, whether they were planning to have a family. I was

:24:14.:24:18.

asked, what does your husband do? Trying to work out whether I was

:24:19.:24:23.

thinking of taking maternity leave. Not very nice questions. We had a

:24:24.:24:30.

tweet from one viewer, saying have you ever attempted to overthrow the

:24:31.:24:37.

government, or the state of Texas? What about the one, what am I

:24:38.:24:45.

thinking? You are thinking, you should hire me. Is that the right

:24:46.:24:54.

response? Some of the other stories. In the Telegraph, the Bank of

:24:55.:25:01.

England, our economic forecasts will always be wrong. That is the

:25:02.:25:05.

headline, but not actually what they said. It is referring to the

:25:06.:25:16.

forecast before breakfast. The doom and gloom of the leave out. The

:25:17.:25:21.

chief economist said it was a Michael Fish moment. One of the

:25:22.:25:25.

reasons they got it wrong, and many forecasters got it wrong, the bank

:25:26.:25:30.

anticipated that consumers would be so anxious they would stop spending

:25:31.:25:35.

and save more, they did not, in fact they borrowed more, or

:25:36.:25:36.

wheels of the economy. The most wheels of the economy. The most

:25:37.:25:41.

recent lending data, there has been a calming down, retail sales in

:25:42.:25:45.

December rising. For our international viewers,

:25:46.:25:54.

Michael Fish was a weather forecaster who got a very wrong. See

:25:55.:25:56.

you soon. -- got it very wrong. Hello. Some really nasty weather on

:25:57.:26:18.

the way tomorrow, in the guise of Storm Doris. Likely to cause some

:26:19.:26:20.

disruptive

:26:21.:26:22.

Download Subtitles

SRT

ASS