:00:00. > :00:00.Now, for the latest financial news with
:00:00. > :00:26.Is the US economy strong enough to continue on its path of rake hikes?
:00:27. > :00:30.George Osborne is walking a tightrope with less money
:00:31. > :00:32.in government coffers and a weaker economy,
:00:33. > :00:42.Also in the programme: Could the Foxconn
:00:43. > :00:51.Shares in the Japanese electronics maker are plunging.
:00:52. > :00:58.We've been watching Central Banks all this week,
:00:59. > :01:01.but by far the biggest is the US Federal Reserve.
:01:02. > :01:03.It's rate-setters have been meeting, and are due to hold
:01:04. > :01:09.Investors will be looking for insights into the health
:01:10. > :01:12.of the world's biggest economy and of global growth.
:01:13. > :01:14.Economists will scrutinise every word uttered by
:01:15. > :01:17.US Fed Chair Janet Yellen for clues about the path of interest rates,
:01:18. > :01:25.known as the "dot plot," and about the outlook for the US economy.
:01:26. > :01:28.The Fed raised the cost of borrowing in December for
:01:29. > :01:32.And hinted rates could go up four more times this year,
:01:33. > :01:35.although many economists now predict just two or three.
:01:36. > :01:38.Recent data has shown the US economy in good health, with inflation and
:01:39. > :01:54.Michelle Fleury reports from New York.
:01:55. > :02:01.In midtown Manhattan, a familiar sight - the lunch cart. Not a bad
:02:02. > :02:05.place to look to understand the challenge facing the Federal
:02:06. > :02:09.Reserve. While the cost of eating has gone up, these office workers
:02:10. > :02:15.told us their pay cheque haven't. When was your last pay rise? Never.
:02:16. > :02:27.I haven't got one. Just at it. Ten years? Really? Really. I have had a
:02:28. > :02:33.pay decrease. I am a contract. I have to find jobs where I can. And
:02:34. > :02:38.wages not rising fast enough is an economic problem for those inside
:02:39. > :02:42.here. America's central bank wants to raise interest rates, but some
:02:43. > :02:47.Fed officials mightn't feel they can until they see signs of inflation.
:02:48. > :02:51.It is a clear signal that economic slack caused by the great recession
:02:52. > :02:58.has not been totally squeezed out of the system and if wage growth is
:02:59. > :03:02.flat there will be little pressure on prices, so they can be more
:03:03. > :03:07.patient. What can we expect from the Fed chair, Janet Yellen? It is very
:03:08. > :03:10.unlikely they will make a change in interest rates but they might give
:03:11. > :03:17.us a hint about how likely they might be moving in June. While the
:03:18. > :03:20.US recovery is underwhelming, the country's economic fortunes are
:03:21. > :03:25.moving in the right direction. That is why it increasingly people
:03:26. > :03:26.believe that America's central bank will continue to raise interest
:03:27. > :03:37.rates, just not this month. And we will be right across that US
:03:38. > :03:40.Federal Reserve decision and press conference later on in the day, but
:03:41. > :03:44.let's talk about the other big event.
:03:45. > :03:49.That is taking place right here in the UK -
:03:50. > :03:51.the British Finance Minister, George Osborne, will announce
:03:52. > :03:53.After presenting a very upbeat report
:03:54. > :03:57.on the health of the British economy last year, the chancellor now has
:03:58. > :04:00.a series of headwinds to cause him concern - the most pressing being a
:04:01. > :04:03.vote on whether the UK should leave the European Union trade block.
:04:04. > :04:06.As sterling weakens and the British economy looks set to slow,
:04:07. > :04:08.there are now concerns that more spending cuts are needed.
:04:09. > :04:12.We ask three of the BBC's top editors what they
:04:13. > :04:17.George Osborne has been the Chancellor for a long time and
:04:18. > :04:20.during the six years, but of his reputation has been built on either
:04:21. > :04:23.trying to sort the books out or making cuts to public spending,
:04:24. > :04:28.depending which way you look at the argument. Look out for more cuts to
:04:29. > :04:32.come. A couple of weeks ago he warned that because of the way the
:04:33. > :04:37.economy was moving, he was still going to have to take the axe to
:04:38. > :04:40.public spending, which might feel like a contrast to his statement six
:04:41. > :04:45.months ago at the spending review when he suggested the economy was a
:04:46. > :04:49.long way back from the crash. He wants to cut the ?70 billion budget
:04:50. > :04:55.deficit to zero so the government earns more than it spends. I think
:04:56. > :04:58.business taxes will probably be increased and also of course there
:04:59. > :05:04.will be more cuts to some public services. But when it comes to
:05:05. > :05:08.individuals, he may give us all a tax cut, which he will do by
:05:09. > :05:12.increasing the level at which we start paying tax and also increase
:05:13. > :05:17.in the level at which high rates of taxes kick in. One of the things of
:05:18. > :05:22.the Chancellor will try to do is instil confidence in business which
:05:23. > :05:25.has taken a knock with EU Referendum uncertainty, so expect him to try to
:05:26. > :05:29.lay out certainty for business about what taxes and costings they will
:05:30. > :05:33.face, perhaps a business tax roadmap to try to achieve that. The other
:05:34. > :05:38.thing to look out for is that the Northey is in trouble. He is making
:05:39. > :05:41.no tax on the profits from the North Sea -- North Sea. He might cut taxes
:05:42. > :05:50.to stimulate more investment. Laura, Kamal R, all on Twitter, by
:05:51. > :05:53.the way -- and Simon. They will be tweeting throughout the day and we
:05:54. > :05:58.have the Business Live page online, do watch it, as it will be updated
:05:59. > :06:02.constantly on the latest announcements and it will be
:06:03. > :06:05.broadcast on TV and online as well. If you want to know what's
:06:06. > :06:08.happening, be sure to stay with us here on the BBC. Let's move on.
:06:09. > :06:11.Shares in the Japanese electronics giant, Sharp, have fallen 9% over
:06:12. > :06:14.fears a takeover by the Taiwanese firm Foxconn may be in jeopardy.
:06:15. > :06:29.It is nice to see you, Rico. It is on and off, where are we? Well, at
:06:30. > :06:32.least moment, it seems like it is in limbo and there is a possibility
:06:33. > :06:40.that this deal, Sally, could be in trouble. At this point, sources said
:06:41. > :06:48.some of those familiar with the deal say it mightn't happen this week.
:06:49. > :06:52.What could really stifle this arrangement is the Taiwan group
:06:53. > :06:57.wants clarity on the liabilities of Sharp that it has uncovered to the
:06:58. > :06:59.end of 2015, and they are seeking guidance from the loss-making
:07:00. > :07:04.Japanese electronics maker on its latest quarterly performance. A
:07:05. > :07:06.Sharp spokesman said the companies are working hard to reach a
:07:07. > :07:12.satisfactory agreement as soon as practically possible, and having not
:07:13. > :07:17.set a signing date. That's why we are seeing investors nervous with
:07:18. > :07:23.this uncertainty, unloading Sharp stocks amidst calls the deal
:07:24. > :07:28.mightn't materialise. Going back to where it started, the Sharp board
:07:29. > :07:34.announcing Foxconn's offer acceptance worth $6 billion over a
:07:35. > :07:42.competing bid from innovation network Corporation of Japan, and it
:07:43. > :07:46.would be the largest purchase of a Japanese company from a foreign
:07:47. > :07:50.company. That is all. Thank you, Rico.
:07:51. > :07:59.South Korea has had a contraction in the manufacturing and construction
:08:00. > :08:02.sector in South Korea. Nigeria's state-owned oil company
:08:03. > :08:04.has failed to pay the government $16 billion in what an official
:08:05. > :08:08.audit says is a suspected fraud. The auditor general says
:08:09. > :08:09.the Nigerian National Petroleum Corporation has provided no
:08:10. > :08:12.explanation for the missing funds. Apple has said the Founding Fathers
:08:13. > :08:15.of the US would be "appalled" by the ongoing battle
:08:16. > :08:17.between the technology giant and the US government over access to
:08:18. > :08:20.an encrypted mobile phone. The FBI wants Apple to develop
:08:21. > :08:23.software so it can unlock the iPhone which belonged to one
:08:24. > :08:26.of the gunmen involved in the Google's head
:08:27. > :08:34.of its self-driving cars has urged politicians to make sure the US sets
:08:35. > :08:37.consistent laws on the technology. Chris Urmson told
:08:38. > :08:39.a Senate hearing the US Transport Secretary should be given authority
:08:40. > :08:57.over the matter rather than it being Let's have a look at markets. So, in
:08:58. > :09:01.Asia, they are treading nervously, really, ahead of today's decision
:09:02. > :09:05.and news conference from the Federal Reserve. Everybody, pretty much
:09:06. > :09:08.everybody, is in agreement that today nothing will happen in terms
:09:09. > :09:13.of interest rate changes, but many economistss predict the next rise in
:09:14. > :09:16.US rates will take place around June. So, what's happening today?
:09:17. > :09:22.The dolly strengthening, which is good news for Japan. -- dollar is
:09:23. > :09:26.strengthening. Shares are lower and Sharp is the big loser in Tokyo.
:09:27. > :09:30.This is how things ended in the US. Of course, the Fed started their
:09:31. > :09:34.meeting yesterday, and it finishes today. A mixed picture emerging in
:09:35. > :09:39.the United States. Keep an eye on the town today with the budget as it
:09:40. > :09:43.is announced, beginning at 12:30pm UK time. The US dollar will likely
:09:44. > :09:47.remain strong today with the Federal Reserve very much in focus. We will
:09:48. > :09:50.talk about those issuers in more detail in a couple of minutes when
:09:51. > :10:01.we review the papers. I will see you then. -- issues.
:10:02. > :10:03.An extra ?1.5 billion in education funding is set
:10:04. > :10:05.to be the key giveaway when the Chancellor, George Osborne,
:10:06. > :10:11.He will also give details on another ?4 billions he wants to
:10:12. > :10:12.make in spending cuts as he tries to balance the country's books.
:10:13. > :10:12.He will also give details on another ?4 billions he wants to
:10:13. > :10:15.make in spending cuts as he tries to balance the country's books.