13/03/2017 BBC Business Live


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This is Business Live from BBC News with some new chap called


The Dutch prepare to make their choice in a critical general


election, with the economy up and crime down why are


Live from London, that's our top story on Monday the 13th March.


Could the far-right Dutch candidate, Geert Wilders, provide another


setback to the European project and what could it mean for the Euro.


Also in the programme, all change at HSBC!


A new boss for the global banking giant.


We'll head live to Asia fopr the latest.


We'll head live to Asia for the latest.


And markets on the move - Asian markets mostly


higher on Monday, this is how Europe has opened


after that much better than expected jobs report in the US last week.


The Chinese economy may be slowing, but tourism is booming


we'll get the Inside Track on China's rise


Another form of tourism doing well is adventure


With retirees fuelling the growth, swapping the cruise ship for the


canoe. Is it your idea of holiday hell. We want to hear from you.


Decision day is getting ever closer for the Dutch


and tonight they get what - for many - could be a decisive last


and tonight they get what, for many, could be a decisive last


look at the candidates before Wednesday elections.


The leading candidates will hold their final TV debate later.


The Dutch vote is the first of three big elections across Europe this


year casting uncertainty over the continent.


Soon after come the votes in France and Germany.


Financial markets are watching them all closely.


Not least for what their results might mean for


The current Dutch Prime Minister Mark Rutte faces a tough challenge


from the far-right populist candidate Geert Wilders who has been


But there is no standout leader in the polls giving greater


Whilst the rise of populism is often linked with falling living


standards, the Dutch remain one of the wealthiest


Average income is nearly $53,000 per person.


And economic growth is forecast at a steady 2% for this


year with wages growing and unemployment falling.


So one key election issue has been the foreign ownership of Dutch


companies with the Labour Party, part of the current coalition,


proposing the government should be able to block takeovers they deem


Our next guest is from the Netherlands but working in the UK.


Dr Stijn van Kessel is Lecturer in Politics


Talk us through, from your perspective, what is on the minds of


those going to the polls? There is an open race at the moment, no clear


party is standing out. So voters have a tough choice if they want to


determine who will eventually govern the country. It is an open race


between six or seven parties which are all predicted to win around ten


and 15% of the vote. From the international point of view, the


focus as being on Geert Wilders, immigration and the far right, as it


were. In the Netherlands, what have been the issues when it comes to


what they have been debating and discussing and how will be enticed


people to vote for them? They are important issues and they may become


more important because of the diplomatic row between Turkey and


the Netherlands. But there is a wide range of issues such as euthanasia,


the ability to end your life for the terminally ill. Pension age is an


issue, which came up a lot. But culture and immigration is the


biggest issue. What do you think the outcome will be on Wednesday, it is


difficult to predict? Yes, I don't want to make any predictions. It is


difficult to predict their memory. In most elections, there is normally


two parties clear. But the previously smaller Liberals and the


Greens are doing well. There is no clear horse race affect. We put it


in the context of Europe, many have said Brexit equals Donald Trump,


equals Nexit. Internationally speaking, there is these events, so


there is Brexit, Donald Trump and the French and German elections


coming. So this vote is about Geert Wilders and whether people see this


populist right-wing splurge. The difference between Brexit, Trump and


the French elections, the outcome of this election doesn't signify a


winner takes all principle. Geert Wilders, will perhaps win between


around 15 and 20% of the vote but it doesn't get him very far because all


of the other parties who are most important have ruled out of


governing with him. Thank you for your time. Fascinating and it is


something we will keep a close eye on here at the BBC.


Just want to take you to the BBC website. It is important day here as


well as far as Brexit is concerned. Ministers are expected to reject the


changes by the House of Lords. They sent it back to the Commons and


wanted two significant changes to the proposed bill before it would


allow the Prime Minister to trigger Article 50. If they do agree on it,


it formally starts the Brexit process and that could happen as


early as tomorrow. So all eyes will be on the Commons as far as that


vote is concerned. Change at the top of HSBC. Let's speak to the


Macdonald in Singapore. Talk us through the significance of this, it


is a big change? Yes, Mark Tucker is due to take over in October. He will


succeed Douglas Flynn. And he is a one-time professional footballer but


has had plenty of experience as an executive. He was the head of AIA


and prior to that he held a leadership position with Prudential.


HSBC is in the middle of the board and executive reshuffle, which


showed poor profits last year which blamed Donald Trump and


uncertainties caused by Brexit. The markets seem to like what they see,


shares rose more than 2% on the Hong Kong exchange after the


announcement. We will get the reaction from London in a little


while. First order of business will be to find news chief executive to


succeed Stuart Gulliver, who is planning to next year. Good to talk


to you. We saw the figures from the markets on the screen. All of that


coming of the better-than-expected jobs figures in the US last week.


This is how Asia is looking at close on the Dow on Friday. Let's talk


about what Europe is doing, the stronger growth is helping prop up


the wider market. This is what Europe is doing. As well as the Fed


meeting, central banks in four other rich economies, they are due to


deliver their decisions on Thursday. We should Saint none of them expect


to follow what the Fed is doing and tighten monetary policy, but they


have the job of trying to get their economies back on track. For the


Bank of England, it is trying to prepare the UK for Brexit. We will


talk about that in a moment. Michelle has the details from New


York. It'll be a busy week. On Tuesday, the US Federal Reserve will


begin its two-day meeting. After the stellar job report and the


continuing strengthening economy, the Fed will likely raise interest


rates for only the third time since the global financial crisis. The Fed


chair will be holding a press chair will be holding a press


conference at the end of the policy meeting on Wednesday, where


journalists will be asking her about her outlook on the US economy. And


the equity markets will likely react as well. Other events, the White


House budget director will release the Trump administration's budget


proposal the same day. The US is also running up against its debt the


newly installed Treasury Secretary has said the US will have to use


extraordinary measures to pay its bills at the March the 17th, or else


it runs the risk of defaulting. Michelle in New York. A busy week


ahead in the United States. Always lovely to see you Justin. Brand-new


trading week. The Fed is very much in focus. We have seen confirmation


that the American economy is in very good shape. Contrary to what


President Trump has been saying. Unemployment figures are good and


growth is fine so rates will be going up. Janet Yellen, has told us


last week that rates were going up and so she will stand up and confirm


it. What we want to know is are they going to go up any more after this?


It is pencilled in for two more rate rises this year. Not so worried


about growth this year, it is going to 18 and 19 when you slow down and


that is when you start putting rates down. You cannot cut rates until you


raise them. So this is good news, even though some people might be


worried. Compare what other central banks are doing, they are trying to


get back to normality? Central banks in the UK won't be raising rates.


The head of Bank of England has said they will focus on growth. That is


right, because of the concerns over Brexit and economy could be slowing.


In Europe, the Eurozone, there is more talk about rates going up


because the economies are doing well. It is interesting, the


whispering in the markets that perhaps rates could go up in the


Eurozone has caused the Euro to go up. If that were to happen, it would


be a way of? It doesn't have to happen yet. We were talking about


September. We were listening to the head of the ECB and he said not yet.


But the next move is going to happen and that is a positive sign. We are


asking our viewers for their least favourite holiday idea. You have got


many scary stories? Yes, but some joys of going into Uganda, probably


not the best place to go. Where are you going next? I going to Galilee


to do a date. I know what it means doing a date, what does it mean?


Digging on a Roman empire and it will be northern Israel. Any issues,


you are in a trench so you should be OK? Yes, I will take a tin hat so I


will be fine. Moral of the story, don't go on holiday with you. Have a


good week. Still to come, why


China is booming - not for manufacturing,


or exports - but for tourists. We speak to one firm that's cashing


in the rising demand You're with Business


Live from BBC News. If you're in the UK and you plan to


travel by rail, you will have noticed disruption.


Guards and drivers working for Northern Rail and Merseyrail


are striking over the introduction of Driver Only Operated trains -


and similar action is continuing on Southern Rail.


Steph McGovern is at Leeds Railway Station.


Getting busy, the rush hour underway, but some people could


struggle to get to where they want to go? They certainly could. If you


look at the board is it doesn't look too bad because actually the


majority of the services, the Northern Rail operators are on time,


but this is the revised timetable. but this is the revised timetable.


When you talk to commuters, a lot of them have been waiting for trains.


Northern Rail say they are only operating 40% of their services


today. Also they have had to put rail replacement buses. We were


chatting to people earlier who said they had to get the bus. It all adds


to the roads and we know what they like during rush hour. Lots of


commuters are facing this headline when they are handed this paper this


morning. March madness as a million hit by train chaos. This is a main


station for Northern Rail services. In the north-west you have


Merseyrail. They are also facing disruption. They were hoping to put


trains on every half an hour. They are normally on every 15 minutes,


but there are quite a few drivers who haven't crossed the picket line


so therefore they haven't got the drivers in order to be able to


operate as many trains as they had hoped today. If you couple that with


what is going on on Southern rail, they have faced so much disruption.


They are also saying there will be disruption today but they are


running 90% of their services. If you are going on those lines, look


before you travel. But is it from me. I know how cold reads train


station is, I am loving that fur collar. zbLez Bovis grabbed the


headlines since it revealed two take-over bids have come through


over the weekend. House-builder shares doing extremely well on the


FTSE 250 today on the back of that development.


China, once a net exporter of tourists around the world,


is now opening its borders and welcoming visitors in greater


China is now the world's fourth most popular tourist destination,


Nearly 57 million people travelled to China in 2015 for holidays -


according to the World Tourism Organisation.


Most foreign visitors come from elsewhere in Asia


But there are huge numbers of Western tourists


visiting China every year - especially from the US.


Wendy Wu Tours is cashing in on this trend specialising in off-the-beaten


track tours to China, and has seen a big jump in bookings.


Joining us now is Wendy Wu, founder of Wendy Wu Tours.


Welcome. Good morning. Just tell us Wendy about how it started for you.


You established your company quite a long time ago, but what caused you


to go down this road in the first place? When I was 20 I went to


Australia. I decided to go on a big holiday to China. I'm Chinese so I


did all the research myself, but I didn't want to go by myself. So two


weeks before the holiday I put a little ad in the paper to say, "This


is how much it will cost. This is the place I'm going to go to.


Whoever wants to come along, I will be your free guide." That was the ad


and that's how we started and we took off from there. And from that


point, of course, you've grown into a huge business. It is not just


about booking a holiday, it's about everything that you get with it,


it's the package, it is not just about a flight or hotel or a


commute. Yes. And that's the most important thing because for many


people going to China, it is the unknown. They don't know where to go


and what to see and you put all that together and that's your unique


selling point, is it? Ben, you've got it. What we do all the special


experiences. I'm Chinese and I know Tibet inside out. So therefore, for


example we take you to to see the Great Wall and we have the best


guides in China and we also, because we know where we go, so therefore,


for example, our customers will come back again and again with us. That


helps us to grow. So we say OK, I helps us to grow. So we say OK, I


have been to China so many times with you and where else do you want


to go? Then we take them to Japan. China is just growing and growing


because of that. It is growing and Western interest in holidays in


China has exploded. And you have made the most of that and this year


in terms of your turn over you've smashed last year's increasing turn


over, haven't you and we're only in March. What I found interesting, I


looked at your website and it was great and interesting, but I


understand from last week you could book online. Is that not a little


bit backwards? I would have thought you should have had us booking


online many years ago? Yes. We grew very fast and because the


destinations that we do such as China and Japan, people like to talk


with us and they need our expertise and knowledge. We do audio


experiences for example, over our holiday. Our job is to make it easy


for you to go to China and experience the hole thing. So it's a


three meal stay and all the entertainment and everywhere in


China. So that's the reason we grow so fast. In the past, even working


with our travel agents they are very strong for us so we grow on the back


of that, but technology is very, very important especially for the


future. So we decided we want to do it right. So we bought the


technology in-house. So we have the technology in-house. Where will the


growth come from? Will it be from the website or travel agents that


you have relied on for so long? OK. You're right, we're doing both


because for us in the past we actually, the customer asked for


brochures so we have beautiful brochures and we have travel agents.


They know us inside out and they have customers every day, so they


have expertise in their area so they know how good we are and the growth


comes from yeah, that experience, it is our inside knowledge that makes


us grow and in future, for example we are building a special platform


with the travel agents so we can grow with the customers. Take a


look. 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 of all the day's


breaking business news. We'll keep you up-to-date


with the latest details of insight and analysis from the BBC's team


of editors right around the world. Get involved on the BBC


Business Live web page On Twitter, we're @bbcbusiness,


and you can find uson On Twitter, we're @bbcbusiness,


and you can find us on Business Live on TV and online,


whenever you need to know. Get in touch. No excuses. You can


see and hear about Dominic on our website.


The BBC's Dominic O'Connell is with us.


To say to Dominic and all of you out there, we have been enjoying your


tweets about your least favourite holiday. We have got a travel theme.


Ben, I don't know if you want to talk about those. Ritchie says,


"Anywhere that's cold is his nightmare holiday. I would rather do


beach, sun and sand." Marie says, "I hate beach and drinking holidays.


Benidorm is my nightmare." Chris' favourite holiday is a beach holiday


with no luxuries. Dominic, what's your holiday from hell? Being


originally from New Zealand the idea of a seaside holiday where there is


rain and cloud is kind of strange. Why would you go to the sea... So


you haven't hold dayed in Wales? There is a perverse enjoyment to be


had from with standing the elements. The wind break, what is that? That's


the must have when on the beach in the UK! If it is that windy, don't


go! Let's look at some other stories out


there. This one grabbed my attention, Iceland to end capital


controls in place since 2008. Iceland is back. Yeah, well, it is


the end of a saga, if you excuse the pun. In 2008 Iceland built up a


banking sector which was 14 times the size of its economy. Completely


crashed the economy. The controls were put in place to protect the


economy from more damage because a lot of Icelandic people had


borrowings in foreign currency and it was to stop all that money


rushing out of the Icelandic economy and slowly, over the years, those


controls have been released. Even up until recently, if you are an


Icelandic person and wanting to go on holiday and buy currency, you had


to go to the bank with airline tickets to prove you were going.


That's nine years after the crisis they are finally back in the wider


international community. Yes, it is fascinating and you see the


repercussions on a big clamp-down on where money goes? It was three


banks. It was a big deal for many UK bankers as well? Yes, lots of retail


banks and British Councils had borrowed and the original


entrepreneurs bought up a huge chunk of the high street. What's


interesting is the turn around story of Iceland given the crisis it was


in and you look at other countries in a financial crisis and they are


in the thick of their crisis. Iceland is not? Iceland has been a


rich economy based on primary industries, fishing, tourism and


agriculture. It has gone become to those traditional strengths and it's


doing well. Can we talk about IKEA? Are you any good at putting IKEA


furniture together? I don't mind. It is screws and Alan keys. It is fine


if you haven't got kids running off with the bits! No screws and no Alan


keys, it clicks together, it is like giant Lego. It takes the fun out of


it. When you can put together a really complicated IKEA kit you've


made it. It probably saves them cost because they're not having to put


components in, but it comes down design in every day life and it's


stuff like this that really shows the power of design. It is all made


to an amazing standard. Not many IKEA kits go wrong. When was


last time that you had an IKEA kit last time that you had an IKEA kit


when the parts weren't there. It is when the parts weren't there. It is


perfect example. Sell a lot of them perfect example. Sell a lot of them


and sell them cheap. Dominic, thank you. So what's your holiday hell


then? Oh, always having to work on holiday, and e-mails on holiday, but


beach holiday all the way for me. Holiday without the kids! No, not


necessarily. Family holidays are great too! See you soon. Bye-bye.


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