13/03/2017 BBC Business Live


13/03/2017

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

:00:00.:00:07.

The Dutch prepare to make their choice in a critical general

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election, with the economy up and crime down why are

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

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

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

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Also in the programme, all change at HSBC!

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A new boss for the global banking giant.

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We'll head live to Asia fopr the latest.

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We'll head live to Asia for the latest.

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And markets on the move - Asian markets mostly

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higher on Monday, this is how Europe has opened

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

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The Chinese economy may be slowing, but tourism is booming

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

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Another form of tourism doing well is adventure

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

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

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Decision day is getting ever closer for the Dutch

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

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

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look at the candidates before Wednesday elections.

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The leading candidates will hold their final TV debate later.

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

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year casting uncertainty over the continent.

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Soon after come the votes in France and Germany.

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Financial markets are watching them all closely.

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Not least for what their results might mean for

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The current Dutch Prime Minister Mark Rutte faces a tough challenge

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

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But there is no standout leader in the polls giving greater

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Whilst the rise of populism is often linked with falling living

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standards, the Dutch remain one of the wealthiest

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Average income is nearly $53,000 per person.

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

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year with wages growing and unemployment falling.

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

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

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proposing the government should be able to block takeovers they deem

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

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Dr Stijn van Kessel is Lecturer in Politics

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

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

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

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

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

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

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

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

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

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

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more important because of the diplomatic row between Turkey and

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

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

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

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

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

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

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two parties clear. But the previously smaller Liberals and the

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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wanted two significant changes to the proposed bill before it would

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

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it formally starts the Brexit process and that could happen as

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

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

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

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

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

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

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

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

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showed poor profits last year which blamed Donald Trump and

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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continuing strengthening economy, the Fed will likely raise interest

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

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

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

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

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

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House budget director will release the Trump administration's budget

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

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

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

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

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

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

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

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President Trump has been saying. Unemployment figures are good and

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

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

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

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

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

:10:59.:11:03.

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

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

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

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

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

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

:11:38.:11:43.

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

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

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

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

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

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

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

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

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

:12:24.:12:27.

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

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

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

:12:41.:12:47.

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

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

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good week. Still to come, why

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China is booming - not for manufacturing,

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

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in the rising demand You're with Business

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

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travel by rail, you will have noticed disruption.

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Guards and drivers working for Northern Rail and Merseyrail

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are striking over the introduction of Driver Only Operated trains -

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and similar action is continuing on Southern Rail.

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Steph McGovern is at Leeds Railway Station.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

:14:47.:14:51.

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

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

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

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

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

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

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

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

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

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

:15:40.:15:47.

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

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FTSE 250 today on the back of that development.

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

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is now opening its borders and welcoming visitors in greater

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

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

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according to the World Tourism Organisation.

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Most foreign visitors come from elsewhere in Asia

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But there are huge numbers of Western tourists

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visiting China every year - especially from the US.

:16:27.:16:38.

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

:16:39.:16:40.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

:17:52.:17:55.

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

:17:56.:17:59.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

:19:09.:19:15.

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

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

:19:20.:19:23.

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

:19:24.:19:27.

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

:19:28.:19:31.

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

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three meal stay and all the entertainment and everywhere in

:19:38.:19:41.

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

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

:19:47.:19:51.

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

:19:52.:19:56.

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

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

:20:02.:20:06.

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

:20:07.:20:11.

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

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

:20:17.:20:21.

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

:20:22.:20:27.

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

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

:20:33.:20:37.

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

:20:38.:20:47.

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

:20:48.:20:55.

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

:20:56.:20:57.

look. In a moment we'll take a look

:20:58.:21:01.

through the Business Pages but first here's a quick reminder of how

:21:02.:21:04.

to get in touch with us. The Business Live page

:21:05.:21:07.

is where you can stay ahead of all the day's

:21:08.:21:09.

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

:21:10.:21:11.

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

:21:12.:21:14.

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

:21:15.:21:17.

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

:21:18.:21:21.

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

:21:22.:21:28.

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

:21:29.:21:31.

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

:21:32.:21:42.

see and hear about Dominic on our website.

:21:43.:21:46.

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

:21:47.:21:50.

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

:21:51.:21:56.

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

:21:57.:22:00.

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

:22:01.:22:04.

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

:22:05.:22:09.

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

:22:10.:22:14.

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

:22:15.:22:18.

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

:22:19.:22:22.

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

:22:23.:22:26.

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

:22:27.:22:33.

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

:22:34.:22:41.

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

:22:42.:22:45.

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

:22:46.:22:49.

go! Let's look at some other stories out

:22:50.:22:56.

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

:22:57.:22:59.

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

:23:00.:23:05.

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

:23:06.:23:10.

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

:23:11.:23:13.

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

:23:14.:23:18.

economy from more damage because a lot of Icelandic people had

:23:19.:23:22.

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

:23:23.:23:26.

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

:23:27.:23:30.

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

:23:31.:23:34.

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

:23:35.:23:40.

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

:23:41.:23:44.

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

:23:45.:23:48.

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

:23:49.:23:53.

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

:23:54.:24:02.

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

:24:03.:24:11.

banks and British Councils had borrowed and the original

:24:12.:24:15.

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

:24:16.:24:20.

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

:24:21.:24:23.

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

:24:24.:24:26.

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

:24:27.:24:34.

rich economy based on primary industries, fishing, tourism and

:24:35.:24:37.

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

:24:38.:24:42.

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

:24:43.:24:48.

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

:24:49.:24:53.

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

:24:54.:25:01.

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

:25:02.:25:07.

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

:25:08.:25:15.

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

:25:16.:25:21.

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

:25:22.:25:25.

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

:25:26.:25:31.

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

:25:32.:25:33.

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

:25:34.:25:37.

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

:25:38.:25:41.

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

:25:42.:25:44.

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

:25:45.:25:51.

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

:25:52.:25:55.

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

:25:56.:26:01.

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

:26:02.:26:09.