:00:00. > :00:00.visits to a resort in the North. Those are the latest headlines from
:00:00. > :00:00.BBC World News. Now for the latest financial news with World Business
:00:00. > :00:24.Report. Back in business, Chinese trade
:00:25. > :00:30.grows at a much faster pace than expected. Were the fears of a
:00:31. > :00:33.slowdown exaggerated? And all eyes on the governor of the Bank of
:00:34. > :00:37.England as he gets ready to evolve his controversial forward guidance.
:00:38. > :00:48.But will we have a better clue as to when interest rates will go up?
:00:49. > :00:52.Welcome to World Business Report. I'm Sally Bundock. In a minute,
:00:53. > :00:54.we'll also hear how the EU is planning to implement its
:00:55. > :01:05.controversial emissions trading scheme for airlines. But first, at
:01:06. > :01:08.last some good news from China about its economy. There's been a surprise
:01:09. > :01:11.spike in exports and imports in January. In fact shipments of goods
:01:12. > :01:13.overseas grew by 10% when compared to the year before. That's far
:01:14. > :01:16.better than most economists predicted. This is the first bit of
:01:17. > :01:19.encouraging news about the world's second largest economy for some time
:01:20. > :01:23.and has added to the feel good factor on financial markets. Rico
:01:24. > :01:36.Hizon is in our Asia Business hub in Singapore. Some good news from
:01:37. > :01:53.China. Is it a trend or a blip? That is the question. There are? -- two
:01:54. > :02:09.sides. This should allay fears that the economy is rolling down --
:02:10. > :02:18.slowing down. China may overtake the United States to be the world's
:02:19. > :02:28.largest importer. But some economists are worrying about the
:02:29. > :02:35.credibility of the data. There might be some round tripping trade between
:02:36. > :02:44.Hong Kong and China. There have also been mixed signals in the economy.
:02:45. > :02:57.There has been a slowing factory at liberty. -- activity. This has made
:02:58. > :03:07.some investors nervous. At the moment, there is boosted confidence.
:03:08. > :03:11.We will have to wait and see if this growth can be sustained and if it is
:03:12. > :03:17.consistent with the other growth in January. It will be interesting to
:03:18. > :03:27.see what growth we will see from the mainland. Thank you. At the end of
:03:28. > :03:38.the programme, I will talk to about how other markets are suggesting
:03:39. > :03:41.this news. -- digesting. Yesterday, all eyes were on Janet Yellen, as
:03:42. > :03:44.she made her first appearance before congress as Fed Chairwoman. What she
:03:45. > :03:47.had to say about the US economy and the central banks role in
:03:48. > :03:49.withdrawing stimulus gave markets around the world a boost. Will Mark
:03:50. > :03:52.Carney, the relatively newly appointed head of the UK central
:03:53. > :03:55.bank, have the same effect today? The Bank of England governor is set
:03:56. > :03:58.to overhaul his flagship forward guidance policy on interest rates
:03:59. > :04:02.after just six months. The governor had linked a rate rise to a fall in
:04:03. > :04:04.unemployment, but the policy is being reviewed after the jobless
:04:05. > :04:07.level fell faster than expected. The changes will come as Mr Carney
:04:08. > :04:11.delivers the bank's latest Inflation Report on the UK economy. With me is
:04:12. > :04:21.Rob Wood, UK economist at Berenberg Bank. What will he say? He will say
:04:22. > :04:34.that interest rates will go up, but they will go up gradually. When he
:04:35. > :04:38.talked about that six months ago. Other people thought it was
:04:39. > :04:45.fantastic. Was it a bad decision to talk about it? I think it was a
:04:46. > :04:56.mistake because the economy has turned around. Unemployment has come
:04:57. > :05:02.down very fast. The ability of the economy to grow has fallen, because
:05:03. > :05:09.we have grown a lot. It was a mistake. We had just come through a
:05:10. > :05:24.worry about the triple dip recession. Today, he will change
:05:25. > :05:33.that for -- forward guidance. They will give indications about wage
:05:34. > :05:39.growth. There is underemployment. He will say that they don't need to
:05:40. > :05:45.raise interest rates immediately. But because the economy has grown,
:05:46. > :05:51.they will have to be taken up earlier than previously thought. So
:05:52. > :06:00.we had been guessing about it before. We should be clear about the
:06:01. > :06:10.date when interest rates are due to rise. Bank of England said they
:06:11. > :06:19.would not go up until late 2016. They will move away from giving
:06:20. > :06:22.specific details. They will need to increase rates gradually. I think
:06:23. > :06:30.now is the right time to give that message. You would know because he
:06:31. > :06:36.used to work at Bank of England. Thank you for coming in. We will
:06:37. > :06:43.update you will we hear from Mark Carney. Away from the glamour and
:06:44. > :06:46.deal making of the Singapore Airshow, not all is harmony. The row
:06:47. > :06:49.over the European Union's attempts to impose an emissions trading
:06:50. > :06:52.scheme airlines to make them pay for their carbon emissions remains
:06:53. > :06:54.unresolved. The move has provoked widespread opposition elsewhere in
:06:55. > :06:56.the world and the UN-backed International Civil Aviation
:06:57. > :07:01.Organisation or ICAO wants to come up with a scheme by 2016. Will the
:07:02. > :07:05.EU go ahead on its own in the meantime? Sharanjit Leyl spoke to
:07:06. > :07:16.the EU Transport Commissioner at the airshow and asked him how the EU
:07:17. > :07:25.aims to resolve the issue. We have two different views. One is still to
:07:26. > :07:35.implement partly the emissions trading scheme. The other is to
:07:36. > :07:40.postpone it on to 2016. In the European Parliament, it now goes to
:07:41. > :07:52.the European Council for a final decision. We will expect an outcome
:07:53. > :07:58.soon. What happens if there is no resolution and the deal doesn't go
:07:59. > :08:06.through? Then there will be a confrontation between the EU and its
:08:07. > :08:18.partners. Everyone will be waiting on the outcome. Some of our partners
:08:19. > :08:25.are critical. Some of them have been talking about a court solution. We
:08:26. > :08:37.can't say anything more until this has been decided I'd be European
:08:38. > :08:47.Parliament. -- by the. We have been talking about withholding passes.
:08:48. > :09:00.How much pressure is the EU under? We are not looking for a trade war.
:09:01. > :09:03.That is very clear. In other news, the US House of Representatives has
:09:04. > :09:06.voted to suspend the country's debt limit until March 2015. The move
:09:07. > :09:09.raises the government's borrowing authority for one year in order to
:09:10. > :09:13.avoid a default at the end of this month. The outcome is a victory for
:09:14. > :09:15.President Obama, who has lobbied for weeks to have the debt ceiling
:09:16. > :09:19.raised without additional conditions and cuts. The 2015 plan goes now to
:09:20. > :09:23.the Democratic-led Senate. The recovery in the US labour market may
:09:24. > :09:26.be far from complete, but the US central bank is on track to continue
:09:27. > :09:29.pulling back on its stimulus programme. That is according to new
:09:30. > :09:31.Federal Reserve chair Janet Yellen. Her comments have been keenly
:09:32. > :09:34.awaited and her message was clear, no sudden changes. That means a slow
:09:35. > :09:38.reduction in the trillions of dollars of bonds bought by the
:09:39. > :09:54.Federal Reserve in the wake of the financial crisis. Those stories were
:09:55. > :10:03.key on the end of trading. Not strong gains, but steady. Toyota has
:10:04. > :10:13.released news that it has had to issue another recall. This is for
:10:14. > :10:22.the third generation of its Prius car. This is a huge recall. Most of
:10:23. > :10:28.those cars are in Japan and North America. I will see you soon as we
:10:29. > :10:29.talk about the