15/03/2017 BBC Business Live


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This is Business Live from BBC News with Ben Thompson and Sally Bundock.


Federal Reserve Chief Janet Yellen is expected to announce another rise


But the question is how many more and when?


Live from London, that's our top story on Wednesday, 15th March.


Will the US dollar continue it's onward march as the central bank


Also in the programme, headwinds for Hong Kong's national carrier.


Cathay Pacific makes its first loss since the financial crisis.


All eyes will be on the Fed, but this is how European markets opened.


We'll get the details later. And we'll be getting the inside


track on all that glitters. The man behind gold mining firm


Petro Pav Lovsk is here to tell us how the firm came close to collapse


and how he managed to put the shine And here in the UK the top ten


weirdest jobs have been revealed, we will talk you through them


and we want to know what weird Keep your comments coming in. Some


days I think this is the weirdest job in the world.


It's the day global markets have been waiting for.


The US Federal Reserve is widely expected to raise interest


Fed policymakers are tipped to raise interest rates by a quarter point -


It's what Janet Yellen says after the meeting that


They'll be looking for clues about future rate rises,


when and how quickly they might come?


And the Fed may talk about undoing some of the measures it


introduced at the height of the financial crisis.


It bought up over $1.75 trillion worth of mortgage-backed


securities, but now it wants to offload them.


Janet Yellen is also having to weigh up an improving US economy but


at the same time as President Trump's policy of building,


infrastructure spending and tax cuts - all of which could


Andrew Walker is here. So just fill us in. The rate rises is priced in.


We're expecting that. The question is what is she going to say in the


press conference? She will be talking about how the US economy is


growing reasonably well. It's strong and the labour market is


particularly strong and we've got unemployment, the latest figures are


4.7%, the Fed's policy makers think that's about the minimum level that


it can get without generating, accelerating inflation. It's worth


saying it has been at 5% or below for 18 months now, but there are


wider measures of weakness, of slack, if you like in the labour


market that have also improved, that's looking at people who aren't


officially counted as unemployed, but want to get jobs, but aren't


actively looking and people who are working shorter hours than they


want. If you look at those factors, the labour market has continued to


strengthen in a way that's not fully reflected in the headline figure and


that's an important consideration for Fed policy makers. What is


interesting because I was grilling you before we came on air about the


fact that wage growth is good in the States as well? The most recent


figure for hourly earning is a 2.8% increase. That's comfortably above


inflation. The Fed's target is 1.9% and that's another factor, the Fed


has a target of 2%. If you look at their figure they're close to


target. If you take out the food and energy prices, it is lower, but it


is clearly getting there. So I think the Fed is very much wanting to


ensure that inflation stays within its target range, concerned that if


it doesn't move soon then it could have a problem down the line of


excessive inflation. So with that in mind and also within mind President


Trump's plans that he keeps telling us about, although we have little


detail on infrastructure spending and tax cuts, what are we expecting


the Fed to do the rest of this year, do you think? The general


expectation is perhaps two, maybe three more rate rises, but it will


very much depend on how the data unfolds and how the issues unfold.


We don't really know what he's going to do, what President Trump is going


to do by way of tax cuts. Infrastructure spending. The


preliminarications for that for demand depend on how he's proposing


to finance that. There might be a lot of private sector money coming,


if it boosts the deficit that has the potential for being inflationary


and they will be important factors that the Fed will take into


consideration in the months ahead. Thank you very much indeed, Andrew


Walker. And we will be across the news from Washington when it breaks


later today. Lorry drivers moving goods


in Western Europe for Ikea and other retailers,


are living out of their cabs for months at a time


as they cannot afford to live According to a BBC


report, some drivers - brought over from poorer countries


by lorry firms based in Eastern Europe, say


their salary is less than three Ikea has said it is


"saddened" by the report. The Australian Transport


Safety Bureau has warned against using battery-powered


devices on flights after a passenger's headphones caught


fire during a flight It says the phone's lithium-ion


battery was the likely cause. The incident follows several


incidents of Samsung Galaxy phones and hoverboards exploding


and being banned on planes. Cathay Pacific has reported its


first full-year loss since the 2008 The Hong Kong based airline,


like many of its peers has been struggling with overcapacity and hot


competition from carriers Simon, tell us more about Cathay


Pacific. It is a very tough environment for this company? This


is Asia's biggest international airline. 2016 was a very difficult


year and today it revealed how difficult. It lost $74 million last


year. That compares to the profit of ?6 billion the year before. It is


struggling to fill space on its planes, but in the holds of its


cargo planes and there is competition from mainland China.


These are airlines who are flying direct to the US and to Europe. So


they're hovering up the Chinese passengers who might have flown via


Hong Kong. It no longer makes sense for many of them to do so Cathay


Pacific is losing out. What are they going to do about it? They said they


would make job cuts. And there were no more details. Today, no more


information and that's one of the reasons why the shares have fallen


sharply in Hong Kong. Simon, good stuff, it is always good to see you.


Stocks in Tokyo fell with energy firms down on weak oil prices


and investors are waiting for news from the Fed meeting.


Shares in Toshiba also down sharply on fears over its future.


While the US Central Bank is considered odds-on


to tighten borrowing costs, traders are most interested


in what its plans are for future hikes, with boss Janet Yellen's


post-meeting comments the main focus.


In Europe, here's how the numbers are looking.


In the UK, unemployment rate expected to rise to 5% from 4.8%


We'll also get eurozone jobs numbers too.


In the corporate world, the UK Government has reduced its stake


in Lloyds to just below 3%, putting the lender on track to be


back in private ownership within the next few months.


But over in the US, the headlines are dominated by the tax


The American TV network, MSNBC, has shown two pages,


of what it says, are Donald Trump's federal tax returns for 2005.


Mr Trump has always refused to release his returns.


The Pulitzer prize winning journalist David Cay Johnston


told MSNBC he'd received the documents in the post,


The White House response - is that the documents


demonstrate Mr Trump paid - $38 million in taxes.


On an income of more than $150 million.


Our correspondent Tulip Mazumdar in Washington says there


is still massive interest in President Trump's tax returns.


These are just summary pages from his 2005 tax returns with two main


headline figures. He earned $150 million in 2005 and paid $38 million


in taxes, around 25%. So nothing hugely controversial or revelatory


there, but this is significant because Donald Trump has been asked


for many months now both as a candidate and now as president to


release his tax returns and he has so far refused to do saying he can't


because the internal revenue service is currently auditing him and that


prevents him from doing that. Now tax experts say that's not


necessarily true and if he wanted to, he could release them, but all


this caused a lot of anger at the White House. They sent out a


statement shortly before all this information came out on American TV


over here and they said, "It is totally illegal to steal unpublished


tax returns. The dishonest media can continue to make this part of their


agenda while the president will focus on his which includes tax


reform and will benefit all Americans."


Joining us is Jane Sydenham, Investment Director,


Give us your take on the Fed? The markets are expecting a rate rise


and if there wasn't one, we would see surprise, but what we're


expecting is rate rises in the second, perhaps the second quarter


and maybe the third quarter. As Andrew was saying, you know, it is


that look ahead that really matters, but I think today's move is


certainly priced in. So that priced, a bit of certainty there, but there


is a lot of political uncertainty in Europe right now, we talked about it


at the start of the week. We've got the Dutch elections and the French


elections later in the spring and obviously the German elections in


the autumn and the issue actually, what is interesting is the way that


risk manifests itself for investors is through Government bonds and


actually at the moment, they're calm. Yields are very low. There is


no expectation in markets... That's always worrying, is it not? It is.


When you say investors reaction to risk, just explain how that works


because we assume, OK, bonds are seen as a safer investment Yes. But


if there is political risk in certain countries presumably their


bonds are not as attractive? That's right. How does it work? The way


that investors look at this, they actually look at a country and say


I'd rather not have French bonds because I'm worried about the


election so I'll sell them so the yields on those bonds will rise, it


is a view on that country and its credit worthiness. It is all about


the bond market. Jane, we'll return soon because we're going to talk


about the UK's top ten weirdest jobs! Yes. So, Jane have a think.


Maybe she had one in her career. The comments are coming in. I'll save


them for later because some are great. What is your weirdest moment?


It didn't have a title. I just had to water hanging baskets for weeks.


I worked in a pie factory. I was at a conveyor-belt and I did this for


eight hours. Pies from there, over to there. Wow. I was very good at


it. Where they good pies? I can't eat pies. It put me off for life. It


is a well-known retailer, but I won't reveal.


We'll talk about that and we'll talk about digging gold.


You're with Business Live from BBC News.


The owner of fashion chain Zara has reported its full


Inditex is the world's biggest clothing retailer and also owns high


street brands such as Bershka and Pull and Bear, it said that


sales were helped by new store openings and online growth.


Theo Leggett has more from the Business Newsroom.


Nice to see you, Theo. This is the company that seemingly can do no


wrong, but what's going on today? I'm looking at that graph behind you


and I see a drop. This is, I think, managing expectations. Inditix, its


profits were up 10%. Sales up 10%, dividend increased by 13 percent,


you'd think investors would welcome that. What we saw was a brief spike


this morning and then the share price dropped very rapidly. It is


nudging back up again. I think that is because this particular company


expectations are always very, very high so even if it does well,


sometimes people are selling off shares, maybe taking a bit of profit


if the share price has been rising recently. So you don't always get an


automatic bounce, but it is creeping back up a bit.


This company has an unusual business model producing small amounts of


clothes quickly, not bulk producing. It waits to see what consumers are


buying and then starts to produce and distribute them which allows


them to react quickly to what people on the street actually want to buy.


If you compare what is happening with them with French connection


which a result of yesterday it is doing better. It is also growing


rapidly. It has 7300 stores around the world, give or take a few, and


it is growing. It has opened several hundred new stores this year and is


opening stores in 56 markets. Bent on expansion. Thank you. There is


lots more in terms of the corporate stories on the Business Life page.


Lorry drivers moving goods in Western Europe for IKEA and other


retailers living out of their caps for months at a time.


The European Council president Donald Tusk has been commenting on


Brexit saying Britain would mostly hugged itself if it left the


European Union without agreement -- hurt. He has been tweaking we will


not be intimidated by threats that now Brexit deal is bad for everyone


above the UK. Interesting the rhetoric fighting back and forth


between London and Brussels. Expect more of that as we approach


Article 50 and two years of negotiations. We will watch it. .


Now, let's talk gold, because the man behind gold mining


The firm, formerly called Peter Hambro Mining,


has been operating in the far east of Russia since 1994.


But it has been on a bit of a journey over the past few years.


The falling price of gold nearly pushed the company


But the firm's boss and founder, Peter Hambro, says the company has


gone through a transformation since then, and come


Joining us now is Peter Hambro, chairman of Petropavlovsk.


first met you in 2002. You were a tiny company and you have gone from


strength to strength, five men in Russia. You have a bullion in your


pocket. -- mines. And I hold it? You may. I am not taking this home.


Worth $38,000. If I drop that it bounces. Give us a sense of the


story of your company because it has gone from something very small to


wear back it is today but on the verge of collapse two years ago. You


are at the mercy of what their cells for in global markets. We started


the company in 1994. Me and my partner. We built it up into a major


operation and have produced 7.5 million and Susan Gold, $8 billion


worth of gold in 23 years, just a little bit more. One of the largest


taxpayers in the Russian Far East where we operate on the borders with


China. Very popular because we have created huge amounts of jobs there


where there are not any other jobs. Get on very well with the


administration who have been helpful to rise. The Russian state? Yes. I


am thrilled to have done it. I started my training career in the


Soviet Union. When I was a gold trader. It was a natural progression


to go and join that side of the world in production. You touched on


the roller-coaster ride. We saw the show pros on the screen. Shares went


down to about 8p. Talk me through how you cope with that. And how you


get the business by contract. Talk me three how my wife got through it!


It was a horrid thing to happen. We decided to process the new and


harder to process called which exists in larger quantities in


Russia. We did not finance that properly. We borrowed money to do it


and the back to place well before we could get it into production. That


has changed again and we will be in production from 2018. How hard is it


not to focus on the share price? You basically want to carry on running


your business and do what you do every day and you also have an eye


on the share price and you think investors do not like what we are


doing, I going to have to do it differently? It is certainly a


factor. When I was interviewed by you years ago and the share price


had fallen she asked what I was going to do about it and I said


there's nothing I can do because my job is to produce this. You have


been operating in Russia for many years. We have reported on the


difficulties that companies have trying to operate in Russia, BPB in


one of those. I've have Ukip the state on board? -- how have you


kept. How does it work? With sanctions on Russia how has that


affected your business? One of their main players has become a friend,


one of the few British companies who have succeeded in Russia. The


problems they faced and we faced problems they faced and we faced


occasionally was a low level of interference not by the state but by


competitors effectively which we have overcome. We have paid our


taxes, worked at the highest level of environmental, very good health


and safety, done it how you have to do it. Russia is a very well-managed


country now. We are going to have to leave it there but there is so much


more to discuss. I know you will keep in touch with us. We will make


sure he takes that, him. There is security as well. I was


going to suggest he leaves it. 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. You can stay ahead with the business


live page. We will keep you up-to-date with details with insight


and analysis from the BBC's team of editors around the world and we want


to hear from you. Get involved on the BBC Business Live page. You can


find us on Twitter and Facebook. Whenever you need to know.


Jane Sydenham is joining us again to discuss.


A report in the Independent about people who have very strange job


titles. Some of then I cannot mention because of the connotations.


I definitely fits into the customer happiness hear bracket because I


used to work in the management complaints department in a store so


complaints only reached this department of someone had not had


their goods after six months. They were really happy. On the verge of


litigation. A handbag stuffer who had to roll up to shoot paper and


put them in the bags -- tissue. Watching ants in and colony. After


A-levels, artificial insemination of goats. I should have taken a


checkout job in hindsight. He needs counselling, I am sure. Acoustics


consultant. I have no idea. Air cartographer. Brexit, the Irish are


complaining about rivals in the Brexit race. Different countries


vying for the top spot of London loses out. Luxembourg seems to be


the place that ARG seem to assign itself to have a reserve position as


a result of Brexit and the Irish are unhappy about that. You are going to


see these areas vying for business effectively. They will be staffing


up banks and operations. Dublin has done very well. Since June's result


last year, lots of banks, sorry businesses, some banks, businesses


have registered places in Dublin. Yes. Not necessarily moved anyone


but have registered. Yes, and they have infrastructure and capital


adequacy and all the things that businesses need. Thank you.


I pressure is dominating the weather is so largely fine and dry before


things turn more unsettled later in the week and into the weekend.


Bringing wetter and windy weather and feeling


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