Browse content similar to 15/03/2017. Check below for episodes and series from the same categories and more!
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This is Business Live from BBC News with Ben Thompson and Sally Bundock. | :00:00. | :00:08. | |
Federal Reserve Chief Janet Yellen is expected to announce another rise | :00:09. | :00:14. | |
But the question is how many more and when? | :00:15. | :00:19. | |
Live from London, that's our top story on Wednesday, 15th March. | :00:20. | :00:35. | |
Will the US dollar continue it's onward march as the central bank | :00:36. | :00:44. | |
Also in the programme, headwinds for Hong Kong's national carrier. | :00:45. | :00:51. | |
Cathay Pacific makes its first loss since the financial crisis. | :00:52. | :00:58. | |
All eyes will be on the Fed, but this is how European markets opened. | :00:59. | :01:02. | |
We'll get the details later. And we'll be getting the inside | :01:03. | :01:06. | |
track on all that glitters. The man behind gold mining firm | :01:07. | :01:08. | |
Petro Pav Lovsk is here to tell us how the firm came close to collapse | :01:09. | :01:12. | |
and how he managed to put the shine And here in the UK the top ten | :01:13. | :01:15. | |
weirdest jobs have been revealed, we will talk you through them | :01:16. | :01:20. | |
and we want to know what weird Keep your comments coming in. Some | :01:21. | :01:45. | |
days I think this is the weirdest job in the world. | :01:46. | :01:47. | |
It's the day global markets have been waiting for. | :01:48. | :01:55. | |
The US Federal Reserve is widely expected to raise interest | :01:56. | :01:57. | |
Fed policymakers are tipped to raise interest rates by a quarter point - | :01:58. | :02:02. | |
It's what Janet Yellen says after the meeting that | :02:03. | :02:14. | |
They'll be looking for clues about future rate rises, | :02:15. | :02:22. | |
when and how quickly they might come? | :02:23. | :02:24. | |
And the Fed may talk about undoing some of the measures it | :02:25. | :02:27. | |
introduced at the height of the financial crisis. | :02:28. | :02:31. | |
It bought up over $1.75 trillion worth of mortgage-backed | :02:32. | :02:37. | |
securities, but now it wants to offload them. | :02:38. | :02:42. | |
Janet Yellen is also having to weigh up an improving US economy but | :02:43. | :02:45. | |
at the same time as President Trump's policy of building, | :02:46. | :02:47. | |
infrastructure spending and tax cuts - all of which could | :02:48. | :02:50. | |
Andrew Walker is here. So just fill us in. The rate rises is priced in. | :02:51. | :03:06. | |
We're expecting that. The question is what is she going to say in the | :03:07. | :03:10. | |
press conference? She will be talking about how the US economy is | :03:11. | :03:15. | |
growing reasonably well. It's strong and the labour market is | :03:16. | :03:18. | |
particularly strong and we've got unemployment, the latest figures are | :03:19. | :03:22. | |
4.7%, the Fed's policy makers think that's about the minimum level that | :03:23. | :03:26. | |
it can get without generating, accelerating inflation. It's worth | :03:27. | :03:31. | |
saying it has been at 5% or below for 18 months now, but there are | :03:32. | :03:34. | |
wider measures of weakness, of slack, if you like in the labour | :03:35. | :03:38. | |
market that have also improved, that's looking at people who aren't | :03:39. | :03:42. | |
officially counted as unemployed, but want to get jobs, but aren't | :03:43. | :03:46. | |
actively looking and people who are working shorter hours than they | :03:47. | :03:49. | |
want. If you look at those factors, the labour market has continued to | :03:50. | :03:53. | |
strengthen in a way that's not fully reflected in the headline figure and | :03:54. | :03:57. | |
that's an important consideration for Fed policy makers. What is | :03:58. | :04:00. | |
interesting because I was grilling you before we came on air about the | :04:01. | :04:06. | |
fact that wage growth is good in the States as well? The most recent | :04:07. | :04:11. | |
figure for hourly earning is a 2.8% increase. That's comfortably above | :04:12. | :04:18. | |
inflation. The Fed's target is 1.9% and that's another factor, the Fed | :04:19. | :04:22. | |
has a target of 2%. If you look at their figure they're close to | :04:23. | :04:25. | |
target. If you take out the food and energy prices, it is lower, but it | :04:26. | :04:29. | |
is clearly getting there. So I think the Fed is very much wanting to | :04:30. | :04:33. | |
ensure that inflation stays within its target range, concerned that if | :04:34. | :04:37. | |
it doesn't move soon then it could have a problem down the line of | :04:38. | :04:42. | |
excessive inflation. So with that in mind and also within mind President | :04:43. | :04:46. | |
Trump's plans that he keeps telling us about, although we have little | :04:47. | :04:49. | |
detail on infrastructure spending and tax cuts, what are we expecting | :04:50. | :04:53. | |
the Fed to do the rest of this year, do you think? The general | :04:54. | :04:56. | |
expectation is perhaps two, maybe three more rate rises, but it will | :04:57. | :05:02. | |
very much depend on how the data unfolds and how the issues unfold. | :05:03. | :05:06. | |
We don't really know what he's going to do, what President Trump is going | :05:07. | :05:09. | |
to do by way of tax cuts. Infrastructure spending. The | :05:10. | :05:15. | |
preliminarications for that for demand depend on how he's proposing | :05:16. | :05:19. | |
to finance that. There might be a lot of private sector money coming, | :05:20. | :05:24. | |
if it boosts the deficit that has the potential for being inflationary | :05:25. | :05:28. | |
and they will be important factors that the Fed will take into | :05:29. | :05:32. | |
consideration in the months ahead. Thank you very much indeed, Andrew | :05:33. | :05:36. | |
Walker. And we will be across the news from Washington when it breaks | :05:37. | :05:37. | |
later today. Lorry drivers moving goods | :05:38. | :05:45. | |
in Western Europe for Ikea and other retailers, | :05:46. | :05:48. | |
are living out of their cabs for months at a time | :05:49. | :05:50. | |
as they cannot afford to live According to a BBC | :05:51. | :05:52. | |
report, some drivers - brought over from poorer countries | :05:53. | :06:01. | |
by lorry firms based in Eastern Europe, say | :06:02. | :06:04. | |
their salary is less than three Ikea has said it is | :06:05. | :06:07. | |
"saddened" by the report. The Australian Transport | :06:08. | :06:13. | |
Safety Bureau has warned against using battery-powered | :06:14. | :06:15. | |
devices on flights after a passenger's headphones caught | :06:16. | :06:17. | |
fire during a flight It says the phone's lithium-ion | :06:18. | :06:19. | |
battery was the likely cause. The incident follows several | :06:20. | :06:25. | |
incidents of Samsung Galaxy phones and hoverboards exploding | :06:26. | :06:28. | |
and being banned on planes. Cathay Pacific has reported its | :06:29. | :06:36. | |
first full-year loss since the 2008 The Hong Kong based airline, | :06:37. | :06:39. | |
like many of its peers has been struggling with overcapacity and hot | :06:40. | :06:48. | |
competition from carriers Simon, tell us more about Cathay | :06:49. | :07:09. | |
Pacific. It is a very tough environment for this company? This | :07:10. | :07:12. | |
is Asia's biggest international airline. 2016 was a very difficult | :07:13. | :07:16. | |
year and today it revealed how difficult. It lost $74 million last | :07:17. | :07:25. | |
year. That compares to the profit of ?6 billion the year before. It is | :07:26. | :07:31. | |
struggling to fill space on its planes, but in the holds of its | :07:32. | :07:34. | |
cargo planes and there is competition from mainland China. | :07:35. | :07:37. | |
These are airlines who are flying direct to the US and to Europe. So | :07:38. | :07:43. | |
they're hovering up the Chinese passengers who might have flown via | :07:44. | :07:47. | |
Hong Kong. It no longer makes sense for many of them to do so Cathay | :07:48. | :07:53. | |
Pacific is losing out. What are they going to do about it? They said they | :07:54. | :08:00. | |
would make job cuts. And there were no more details. Today, no more | :08:01. | :08:03. | |
information and that's one of the reasons why the shares have fallen | :08:04. | :08:07. | |
sharply in Hong Kong. Simon, good stuff, it is always good to see you. | :08:08. | :08:14. | |
Stocks in Tokyo fell with energy firms down on weak oil prices | :08:15. | :08:23. | |
and investors are waiting for news from the Fed meeting. | :08:24. | :08:28. | |
Shares in Toshiba also down sharply on fears over its future. | :08:29. | :08:35. | |
While the US Central Bank is considered odds-on | :08:36. | :08:39. | |
to tighten borrowing costs, traders are most interested | :08:40. | :08:42. | |
in what its plans are for future hikes, with boss Janet Yellen's | :08:43. | :08:44. | |
post-meeting comments the main focus. | :08:45. | :08:46. | |
In Europe, here's how the numbers are looking. | :08:47. | :08:53. | |
In the UK, unemployment rate expected to rise to 5% from 4.8% | :08:54. | :08:56. | |
We'll also get eurozone jobs numbers too. | :08:57. | :09:08. | |
In the corporate world, the UK Government has reduced its stake | :09:09. | :09:15. | |
in Lloyds to just below 3%, putting the lender on track to be | :09:16. | :09:18. | |
back in private ownership within the next few months. | :09:19. | :09:24. | |
But over in the US, the headlines are dominated by the tax | :09:25. | :09:27. | |
The American TV network, MSNBC, has shown two pages, | :09:28. | :09:34. | |
of what it says, are Donald Trump's federal tax returns for 2005. | :09:35. | :09:38. | |
Mr Trump has always refused to release his returns. | :09:39. | :09:56. | |
The Pulitzer prize winning journalist David Cay Johnston | :09:57. | :09:59. | |
told MSNBC he'd received the documents in the post, | :10:00. | :10:01. | |
The White House response - is that the documents | :10:02. | :10:05. | |
demonstrate Mr Trump paid - $38 million in taxes. | :10:06. | :10:11. | |
On an income of more than $150 million. | :10:12. | :10:17. | |
Our correspondent Tulip Mazumdar in Washington says there | :10:18. | :10:19. | |
is still massive interest in President Trump's tax returns. | :10:20. | :10:23. | |
These are just summary pages from his 2005 tax returns with two main | :10:24. | :10:33. | |
headline figures. He earned $150 million in 2005 and paid $38 million | :10:34. | :10:40. | |
in taxes, around 25%. So nothing hugely controversial or revelatory | :10:41. | :10:43. | |
there, but this is significant because Donald Trump has been asked | :10:44. | :10:47. | |
for many months now both as a candidate and now as president to | :10:48. | :10:51. | |
release his tax returns and he has so far refused to do saying he can't | :10:52. | :10:56. | |
because the internal revenue service is currently auditing him and that | :10:57. | :11:01. | |
prevents him from doing that. Now tax experts say that's not | :11:02. | :11:04. | |
necessarily true and if he wanted to, he could release them, but all | :11:05. | :11:08. | |
this caused a lot of anger at the White House. They sent out a | :11:09. | :11:12. | |
statement shortly before all this information came out on American TV | :11:13. | :11:17. | |
over here and they said, "It is totally illegal to steal unpublished | :11:18. | :11:22. | |
tax returns. The dishonest media can continue to make this part of their | :11:23. | :11:25. | |
agenda while the president will focus on his which includes tax | :11:26. | :11:30. | |
reform and will benefit all Americans." | :11:31. | :11:37. | |
Joining us is Jane Sydenham, Investment Director, | :11:38. | :11:41. | |
Give us your take on the Fed? The markets are expecting a rate rise | :11:42. | :11:52. | |
and if there wasn't one, we would see surprise, but what we're | :11:53. | :11:55. | |
expecting is rate rises in the second, perhaps the second quarter | :11:56. | :11:58. | |
and maybe the third quarter. As Andrew was saying, you know, it is | :11:59. | :12:02. | |
that look ahead that really matters, but I think today's move is | :12:03. | :12:06. | |
certainly priced in. So that priced, a bit of certainty there, but there | :12:07. | :12:11. | |
is a lot of political uncertainty in Europe right now, we talked about it | :12:12. | :12:16. | |
at the start of the week. We've got the Dutch elections and the French | :12:17. | :12:19. | |
elections later in the spring and obviously the German elections in | :12:20. | :12:24. | |
the autumn and the issue actually, what is interesting is the way that | :12:25. | :12:28. | |
risk manifests itself for investors is through Government bonds and | :12:29. | :12:32. | |
actually at the moment, they're calm. Yields are very low. There is | :12:33. | :12:36. | |
no expectation in markets... That's always worrying, is it not? It is. | :12:37. | :12:41. | |
When you say investors reaction to risk, just explain how that works | :12:42. | :12:45. | |
because we assume, OK, bonds are seen as a safer investment Yes. But | :12:46. | :12:50. | |
if there is political risk in certain countries presumably their | :12:51. | :12:52. | |
bonds are not as attractive? That's right. How does it work? The way | :12:53. | :12:56. | |
that investors look at this, they actually look at a country and say | :12:57. | :13:01. | |
I'd rather not have French bonds because I'm worried about the | :13:02. | :13:04. | |
election so I'll sell them so the yields on those bonds will rise, it | :13:05. | :13:09. | |
is a view on that country and its credit worthiness. It is all about | :13:10. | :13:14. | |
the bond market. Jane, we'll return soon because we're going to talk | :13:15. | :13:18. | |
about the UK's top ten weirdest jobs! Yes. So, Jane have a think. | :13:19. | :13:26. | |
Maybe she had one in her career. The comments are coming in. I'll save | :13:27. | :13:29. | |
them for later because some are great. What is your weirdest moment? | :13:30. | :13:35. | |
It didn't have a title. I just had to water hanging baskets for weeks. | :13:36. | :13:39. | |
I worked in a pie factory. I was at a conveyor-belt and I did this for | :13:40. | :13:42. | |
eight hours. Pies from there, over to there. Wow. I was very good at | :13:43. | :13:48. | |
it. Where they good pies? I can't eat pies. It put me off for life. It | :13:49. | :13:53. | |
is a well-known retailer, but I won't reveal. | :13:54. | :14:03. | |
We'll talk about that and we'll talk about digging gold. | :14:04. | :14:10. | |
You're with Business Live from BBC News. | :14:11. | :14:15. | |
The owner of fashion chain Zara has reported its full | :14:16. | :14:18. | |
Inditex is the world's biggest clothing retailer and also owns high | :14:19. | :14:26. | |
street brands such as Bershka and Pull and Bear, it said that | :14:27. | :14:29. | |
sales were helped by new store openings and online growth. | :14:30. | :14:32. | |
Theo Leggett has more from the Business Newsroom. | :14:33. | :14:36. | |
Nice to see you, Theo. This is the company that seemingly can do no | :14:37. | :14:42. | |
wrong, but what's going on today? I'm looking at that graph behind you | :14:43. | :14:47. | |
and I see a drop. This is, I think, managing expectations. Inditix, its | :14:48. | :14:57. | |
profits were up 10%. Sales up 10%, dividend increased by 13 percent, | :14:58. | :15:00. | |
you'd think investors would welcome that. What we saw was a brief spike | :15:01. | :15:04. | |
this morning and then the share price dropped very rapidly. It is | :15:05. | :15:09. | |
nudging back up again. I think that is because this particular company | :15:10. | :15:13. | |
expectations are always very, very high so even if it does well, | :15:14. | :15:16. | |
sometimes people are selling off shares, maybe taking a bit of profit | :15:17. | :15:20. | |
if the share price has been rising recently. So you don't always get an | :15:21. | :15:23. | |
automatic bounce, but it is creeping back up a bit. | :15:24. | :15:29. | |
This company has an unusual business model producing small amounts of | :15:30. | :15:38. | |
clothes quickly, not bulk producing. It waits to see what consumers are | :15:39. | :15:42. | |
buying and then starts to produce and distribute them which allows | :15:43. | :15:46. | |
them to react quickly to what people on the street actually want to buy. | :15:47. | :15:51. | |
If you compare what is happening with them with French connection | :15:52. | :15:57. | |
which a result of yesterday it is doing better. It is also growing | :15:58. | :16:04. | |
rapidly. It has 7300 stores around the world, give or take a few, and | :16:05. | :16:09. | |
it is growing. It has opened several hundred new stores this year and is | :16:10. | :16:13. | |
opening stores in 56 markets. Bent on expansion. Thank you. There is | :16:14. | :16:25. | |
lots more in terms of the corporate stories on the Business Life page. | :16:26. | :16:37. | |
Lorry drivers moving goods in Western Europe for IKEA and other | :16:38. | :16:40. | |
retailers living out of their caps for months at a time. | :16:41. | :16:49. | |
The European Council president Donald Tusk has been commenting on | :16:50. | :17:04. | |
Brexit saying Britain would mostly hugged itself if it left the | :17:05. | :17:10. | |
European Union without agreement -- hurt. He has been tweaking we will | :17:11. | :17:15. | |
not be intimidated by threats that now Brexit deal is bad for everyone | :17:16. | :17:25. | |
above the UK. Interesting the rhetoric fighting back and forth | :17:26. | :17:29. | |
between London and Brussels. Expect more of that as we approach | :17:30. | :17:33. | |
Article 50 and two years of negotiations. We will watch it. . | :17:34. | :17:40. | |
Now, let's talk gold, because the man behind gold mining | :17:41. | :17:42. | |
The firm, formerly called Peter Hambro Mining, | :17:43. | :17:45. | |
has been operating in the far east of Russia since 1994. | :17:46. | :17:48. | |
But it has been on a bit of a journey over the past few years. | :17:49. | :17:53. | |
The falling price of gold nearly pushed the company | :17:54. | :17:55. | |
But the firm's boss and founder, Peter Hambro, says the company has | :17:56. | :18:01. | |
gone through a transformation since then, and come | :18:02. | :18:03. | |
Joining us now is Peter Hambro, chairman of Petropavlovsk. | :18:04. | :18:15. | |
first met you in 2002. You were a tiny company and you have gone from | :18:16. | :18:25. | |
strength to strength, five men in Russia. You have a bullion in your | :18:26. | :18:42. | |
pocket. -- mines. And I hold it? You may. I am not taking this home. | :18:43. | :18:52. | |
Worth $38,000. If I drop that it bounces. Give us a sense of the | :18:53. | :18:59. | |
story of your company because it has gone from something very small to | :19:00. | :19:03. | |
wear back it is today but on the verge of collapse two years ago. You | :19:04. | :19:08. | |
are at the mercy of what their cells for in global markets. We started | :19:09. | :19:14. | |
the company in 1994. Me and my partner. We built it up into a major | :19:15. | :19:19. | |
operation and have produced 7.5 million and Susan Gold, $8 billion | :19:20. | :19:26. | |
worth of gold in 23 years, just a little bit more. One of the largest | :19:27. | :19:31. | |
taxpayers in the Russian Far East where we operate on the borders with | :19:32. | :19:36. | |
China. Very popular because we have created huge amounts of jobs there | :19:37. | :19:41. | |
where there are not any other jobs. Get on very well with the | :19:42. | :19:43. | |
administration who have been helpful to rise. The Russian state? Yes. I | :19:44. | :19:53. | |
am thrilled to have done it. I started my training career in the | :19:54. | :20:00. | |
Soviet Union. When I was a gold trader. It was a natural progression | :20:01. | :20:04. | |
to go and join that side of the world in production. You touched on | :20:05. | :20:09. | |
the roller-coaster ride. We saw the show pros on the screen. Shares went | :20:10. | :20:16. | |
down to about 8p. Talk me through how you cope with that. And how you | :20:17. | :20:23. | |
get the business by contract. Talk me three how my wife got through it! | :20:24. | :20:33. | |
It was a horrid thing to happen. We decided to process the new and | :20:34. | :20:39. | |
harder to process called which exists in larger quantities in | :20:40. | :20:49. | |
Russia. We did not finance that properly. We borrowed money to do it | :20:50. | :20:52. | |
and the back to place well before we could get it into production. That | :20:53. | :20:59. | |
has changed again and we will be in production from 2018. How hard is it | :21:00. | :21:04. | |
not to focus on the share price? You basically want to carry on running | :21:05. | :21:07. | |
your business and do what you do every day and you also have an eye | :21:08. | :21:11. | |
on the share price and you think investors do not like what we are | :21:12. | :21:15. | |
doing, I going to have to do it differently? It is certainly a | :21:16. | :21:20. | |
factor. When I was interviewed by you years ago and the share price | :21:21. | :21:23. | |
had fallen she asked what I was going to do about it and I said | :21:24. | :21:27. | |
there's nothing I can do because my job is to produce this. You have | :21:28. | :21:31. | |
been operating in Russia for many years. We have reported on the | :21:32. | :21:36. | |
difficulties that companies have trying to operate in Russia, BPB in | :21:37. | :21:41. | |
one of those. I've have Ukip the state on board? -- how have you | :21:42. | :21:51. | |
kept. How does it work? With sanctions on Russia how has that | :21:52. | :21:59. | |
affected your business? One of their main players has become a friend, | :22:00. | :22:05. | |
one of the few British companies who have succeeded in Russia. The | :22:06. | :22:07. | |
problems they faced and we faced problems they faced and we faced | :22:08. | :22:14. | |
occasionally was a low level of interference not by the state but by | :22:15. | :22:18. | |
competitors effectively which we have overcome. We have paid our | :22:19. | :22:23. | |
taxes, worked at the highest level of environmental, very good health | :22:24. | :22:29. | |
and safety, done it how you have to do it. Russia is a very well-managed | :22:30. | :22:36. | |
country now. We are going to have to leave it there but there is so much | :22:37. | :22:39. | |
more to discuss. I know you will keep in touch with us. We will make | :22:40. | :22:45. | |
sure he takes that, him. There is security as well. I was | :22:46. | :22:48. | |
going to suggest he leaves it. In a moment we'll take a look | :22:49. | :22:56. | |
through the Business Pages but first here's a quick reminder of how | :22:57. | :23:00. | |
to get in touch with us. You can stay ahead with the business | :23:01. | :23:07. | |
live page. We will keep you up-to-date with details with insight | :23:08. | :23:11. | |
and analysis from the BBC's team of editors around the world and we want | :23:12. | :23:16. | |
to hear from you. Get involved on the BBC Business Live page. You can | :23:17. | :23:29. | |
find us on Twitter and Facebook. Whenever you need to know. | :23:30. | :23:35. | |
Jane Sydenham is joining us again to discuss. | :23:36. | :23:39. | |
A report in the Independent about people who have very strange job | :23:40. | :23:50. | |
titles. Some of then I cannot mention because of the connotations. | :23:51. | :23:56. | |
I definitely fits into the customer happiness hear bracket because I | :23:57. | :24:00. | |
used to work in the management complaints department in a store so | :24:01. | :24:03. | |
complaints only reached this department of someone had not had | :24:04. | :24:07. | |
their goods after six months. They were really happy. On the verge of | :24:08. | :24:16. | |
litigation. A handbag stuffer who had to roll up to shoot paper and | :24:17. | :24:25. | |
put them in the bags -- tissue. Watching ants in and colony. After | :24:26. | :24:36. | |
A-levels, artificial insemination of goats. I should have taken a | :24:37. | :24:41. | |
checkout job in hindsight. He needs counselling, I am sure. Acoustics | :24:42. | :24:50. | |
consultant. I have no idea. Air cartographer. Brexit, the Irish are | :24:51. | :25:01. | |
complaining about rivals in the Brexit race. Different countries | :25:02. | :25:04. | |
vying for the top spot of London loses out. Luxembourg seems to be | :25:05. | :25:11. | |
the place that ARG seem to assign itself to have a reserve position as | :25:12. | :25:16. | |
a result of Brexit and the Irish are unhappy about that. You are going to | :25:17. | :25:21. | |
see these areas vying for business effectively. They will be staffing | :25:22. | :25:26. | |
up banks and operations. Dublin has done very well. Since June's result | :25:27. | :25:36. | |
last year, lots of banks, sorry businesses, some banks, businesses | :25:37. | :25:39. | |
have registered places in Dublin. Yes. Not necessarily moved anyone | :25:40. | :25:47. | |
but have registered. Yes, and they have infrastructure and capital | :25:48. | :25:51. | |
adequacy and all the things that businesses need. Thank you. | :25:52. | :25:56. | |
I pressure is dominating the weather is so largely fine and dry before | :25:57. | :26:17. | |
things turn more unsettled later in the week and into the weekend. | :26:18. | :26:20. | |
Bringing wetter and windy weather and feeling | :26:21. | :26:22. |