22/02/2017 BBC Business Live


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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




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