:00:00. > :00:00.among them, one written to her by Ernest Hemingway. For the latest
:00:00. > :00:22.financial news with Sally. Taking the reins, the new boss of
:00:23. > :00:29.the American soul `` Central bank, faces the tough task of winning
:00:30. > :00:33.market of six years of keep money. And years or Cyprus teetering on the
:00:34. > :00:44.bank of bankruptcy and we look austerity in the banking sector to
:00:45. > :00:49.shake up there. Welcome. Also in the programme, it is budget Day in the
:00:50. > :00:53.UK, we will look at what George Osborne is likely to announce as he
:00:54. > :00:59.attempts to keep debt under control. First, she has finally taken the hot
:01:00. > :01:04.seat after months of waiting, chair day two of her first federal reserve
:01:05. > :01:09.meeting. The biggest test of the British it will be how she manages
:01:10. > :01:14.from firefighting mode to normal. The Fed has been cutting its large
:01:15. > :01:17.cash injections launched at the height of the financial crisis six
:01:18. > :01:26.years ago. Michelle reports from Washington. She is one of the most
:01:27. > :01:29.powerful women in the world. This Wednesday, Janet Yellen host her
:01:30. > :01:31.first news conference as Fed Chairwoman. Her words can move the
:01:32. > :01:34.global financial markets. In Wall Street, economists say this is a
:01:35. > :01:38.transitional moment for the US central bank.
:01:39. > :01:42.The economy is gaining momentum, and they are on the way. That's why the
:01:43. > :01:48.process of exiting the previous policy has begun. Managing a smooth
:01:49. > :01:55.exit from extraordinary monetary policy for the nation will be one of
:01:56. > :01:58.the main challenges. What can we expect?
:01:59. > :02:03.Tapering will continue. This means the Fed will still buy bonds, just
:02:04. > :02:06.not as many. The question Wall Street is watching closely is what
:02:07. > :02:11.will they say about forward guidance? It has said it won't raise
:02:12. > :02:18.rates as long as unemployment is above 6.5%. Unemployment in America
:02:19. > :02:22.has fallen faster than expected. But nobody believes the job market is
:02:23. > :02:27.terribly healthy. This threshold is likely to be scrapped. The change
:02:28. > :02:31.will be in how they knew was there forward guidance, their promise or
:02:32. > :02:34.pledge that rates will be kept low. I think the time frame will change
:02:35. > :02:45.from 2015 but we will see a change in how they talk about it.
:02:46. > :02:48.Janet Yellen may have more control over the world's economy than any
:02:49. > :02:51.other central banker, but it will be the health of the US economy that
:02:52. > :03:05.will determine when she declares victory and lets borrowing costs go
:03:06. > :03:08.on. Here in the UK, the finance minister
:03:09. > :03:14.is expected to focus on appealing to ordinary working people when he
:03:15. > :03:18.delivers his 2014 budget. The UK's large budget deficit will make it
:03:19. > :03:21.difficult for him to unveil many giveaways but he is expected to
:03:22. > :03:27.reveal a rise in the income tax threshold from ?10,000 to 10,500.
:03:28. > :03:35.And confirmed child`care subsidies to help people on low and middle
:03:36. > :03:40.income. In his role, he is also expected to use the budget speech to
:03:41. > :03:52.announce a new ?1 coin. The new tour sided coin is based on the old
:03:53. > :03:54.Threepenny bit. The old pound coin is vulnerable to counterfeiters,
:03:55. > :04:01.apparently. The new coin will be harder to copy and is considered to
:04:02. > :04:07.be as secure as modern banknotes. We will talk about the bank today.
:04:08. > :04:13.There is an awful lot on the website. Stay with us here all
:04:14. > :04:25.morning, we'll keep you across the news. One year ago this week,
:04:26. > :04:33.Cyprus, the EU's most easterly state was desperately trying to stave off
:04:34. > :04:40.bankruptcy. Cyprus got a 10 million euro bailout. For the first time
:04:41. > :04:43.they had to pay high price. Holdings were scrapped or taken away to help
:04:44. > :04:50.closing one bank and propping up others. We were there a year ago and
:04:51. > :04:56.we have returned to the capital, Nicosia, to see how Cyprus has
:04:57. > :05:00.fared. They were unprecedented scenes that shocked the EU. It was
:05:01. > :05:04.not just the bank machines that ran out of cash, an entire state was
:05:05. > :05:08.running on empty. Its leaders having no choice but to accept bailout
:05:09. > :05:13.terms that drained larger accounts opened here. One year on, the crowds
:05:14. > :05:18.have gone, maybe the most poignant reminder of those events a year
:05:19. > :05:22.ago, the closed up bank which was taken over by the bank of Cyprus
:05:23. > :05:27.still heavily exposed to the property loans. Enter the overall
:05:28. > :05:32.banking sector is half of the size it was but half of all bank owners
:05:33. > :05:38.here are in arrears. I have three statements. The last 12 months have
:05:39. > :05:42.been tortured for this British Cypriot who lost his life savings.
:05:43. > :05:52.His loss is compounded because the bank failed to put some of the cash
:05:53. > :05:55.in his wife names as he suggested. I was living a comfortable life and
:05:56. > :05:59.that has been cut in half. I thought I was safe and I could help my son
:06:00. > :06:07.is in the UK. Half of that money has gone. You sit down and you're 60 in
:06:08. > :06:15.half of your money is gone. When you go from here? The recession has not
:06:16. > :06:19.been as deep as expected but the jobless rate has been high. Cypriots
:06:20. > :06:22.say they have a means to rebuild the economy and finances as they did
:06:23. > :06:33.after the war with Turkey that divided the island 40 years ago. Can
:06:34. > :06:39.the dominant bank of Cyprus organise things it? What the bank of Cyprus
:06:40. > :06:42.needs to become is the most important bag on the island for
:06:43. > :06:50.onshore Cyprus and the hundred thousand people that are on this
:06:51. > :06:57.republic. `` 800,000 people. It will be a bank for the Entre activity.
:06:58. > :07:01.That is the purpose. It is possible that through managerial tourism of
:07:02. > :07:11.the past we have done too much. As the tourist season starts, young
:07:12. > :07:21.Cypriots are looking for new ways of creating wealth. The Russian
:07:22. > :07:29.billionaires sold his shares in US tech giants yesterday instead of
:07:30. > :07:35.buying shares in the Chinese Internet retailer Ali Barber, why?
:07:36. > :07:40.Because of the US sanctions which were pinpointed the Russian generals
:07:41. > :07:45.and politicians. As an Obama has made it clear that until Russia
:07:46. > :07:49.backs down in the Crimea, further sanctions will apply. What does this
:07:50. > :07:54.mean for companies that have assets in Russia and the Crimea and are we
:07:55. > :08:08.going to see a flood of Russian money leave the United States? I am
:08:09. > :08:14.joined now. Give us your take on his decisions yesterday, is this a site
:08:15. > :08:20.of things to come? It is a symbolic gesture at the present. If you take
:08:21. > :08:26.your assets out of the US, where do you move them? The US is a safe
:08:27. > :08:32.haven. I understand a lot has come to the UK? A lot has. We have seen
:08:33. > :08:38.$45 billion of investment since the robbery. A lot of that has come to
:08:39. > :08:42.the UK. Yet, the UK is with those, who are talking about sanctions, who
:08:43. > :08:49.are talking about being harder on Russia but Russian money is coming
:08:50. > :08:54.here. There is a difference between the EU and the United States
:08:55. > :09:04.position. The EU has ten times more trade with Russia. It is harder for
:09:05. > :09:07.EU members to impose sanctions. It seems symbolic. The thinking on
:09:08. > :09:10.behalf of those who have a lot of wealth, they think that if they
:09:11. > :09:15.invest in the long`term in the UK or elsewhere, this is hopefully a
:09:16. > :09:20.short`term issue? There is the perception of that. I do not think
:09:21. > :09:30.anyone wants to engage with a trade war with Russia. The parliament
:09:31. > :09:37.passed a law for Valerie Putin to do the same. What about the insurance
:09:38. > :09:45.market? How was that affected? Insurance market is a good barometer
:09:46. > :09:51.for risk assessment. When sanctions were first mentioned, we saw a pause
:09:52. > :09:55.in Russian risk underwriting because nobody knows how it will play out.
:09:56. > :10:05.The talk of sanctions has had a more detrimental impact than the
:10:06. > :10:09.sanctions themselves. Thank you. While we're on this subject, let's
:10:10. > :10:13.look at the markets. You can see a mixed picture emerging in Asia at
:10:14. > :10:18.the moment. I will show you how things ended in the United States.
:10:19. > :10:24.All eyes on the US central bank and the UK here. That is the World
:10:25. > :10:25.Business Report. Stay with us, we will review the papers in a few
:10:26. > :10:40.minutes. Thank you. Five years after the
:10:41. > :10:45.disappearance of Claudia Lawrence in North Yorkshire, police say they
:10:46. > :10:47.have uncovered new evidence. This links Claudia to people who have yet