Browse content similar to 16/03/2016. Check below for episodes and series from the same categories and more!
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Now, for the latest financial news with | :00:00. | :00:00. | |
Is the US economy strong enough to continue on its path of rake hikes? | :00:00. | :00:26. | |
George Osborne is walking a tightrope with less money | :00:27. | :00:30. | |
in government coffers and a weaker economy, | :00:31. | :00:32. | |
Also in the programme: Could the Foxconn | :00:33. | :00:42. | |
Shares in the Japanese electronics maker are plunging. | :00:43. | :00:51. | |
We've been watching Central Banks all this week, | :00:52. | :00:58. | |
but by far the biggest is the US Federal Reserve. | :00:59. | :01:01. | |
It's rate-setters have been meeting, and are due to hold | :01:02. | :01:03. | |
Investors will be looking for insights into the health | :01:04. | :01:09. | |
of the world's biggest economy and of global growth. | :01:10. | :01:12. | |
Economists will scrutinise every word uttered by | :01:13. | :01:14. | |
US Fed Chair Janet Yellen for clues about the path of interest rates, | :01:15. | :01:17. | |
known as the "dot plot," and about the outlook for the US economy. | :01:18. | :01:25. | |
The Fed raised the cost of borrowing in December for | :01:26. | :01:28. | |
And hinted rates could go up four more times this year, | :01:29. | :01:32. | |
although many economists now predict just two or three. | :01:33. | :01:35. | |
Recent data has shown the US economy in good health, with inflation and | :01:36. | :01:38. | |
Michelle Fleury reports from New York. | :01:39. | :01:54. | |
In midtown Manhattan, a familiar sight - the lunch cart. Not a bad | :01:55. | :02:01. | |
place to look to understand the challenge facing the Federal | :02:02. | :02:05. | |
Reserve. While the cost of eating has gone up, these office workers | :02:06. | :02:09. | |
told us their pay cheque haven't. When was your last pay rise? Never. | :02:10. | :02:15. | |
I haven't got one. Just at it. Ten years? Really? Really. I have had a | :02:16. | :02:27. | |
pay decrease. I am a contract. I have to find jobs where I can. And | :02:28. | :02:33. | |
wages not rising fast enough is an economic problem for those inside | :02:34. | :02:38. | |
here. America's central bank wants to raise interest rates, but some | :02:39. | :02:42. | |
Fed officials mightn't feel they can until they see signs of inflation. | :02:43. | :02:47. | |
It is a clear signal that economic slack caused by the great recession | :02:48. | :02:51. | |
has not been totally squeezed out of the system and if wage growth is | :02:52. | :02:58. | |
flat there will be little pressure on prices, so they can be more | :02:59. | :03:02. | |
patient. What can we expect from the Fed chair, Janet Yellen? It is very | :03:03. | :03:07. | |
unlikely they will make a change in interest rates but they might give | :03:08. | :03:10. | |
us a hint about how likely they might be moving in June. While the | :03:11. | :03:17. | |
US recovery is underwhelming, the country's economic fortunes are | :03:18. | :03:20. | |
moving in the right direction. That is why it increasingly people | :03:21. | :03:25. | |
believe that America's central bank will continue to raise interest | :03:26. | :03:26. | |
rates, just not this month. And we will be right across that US | :03:27. | :03:37. | |
Federal Reserve decision and press conference later on in the day, but | :03:38. | :03:40. | |
let's talk about the other big event. | :03:41. | :03:44. | |
That is taking place right here in the UK - | :03:45. | :03:49. | |
the British Finance Minister, George Osborne, will announce | :03:50. | :03:51. | |
After presenting a very upbeat report | :03:52. | :03:53. | |
on the health of the British economy last year, the chancellor now has | :03:54. | :03:57. | |
a series of headwinds to cause him concern - the most pressing being a | :03:58. | :04:00. | |
vote on whether the UK should leave the European Union trade block. | :04:01. | :04:03. | |
As sterling weakens and the British economy looks set to slow, | :04:04. | :04:06. | |
there are now concerns that more spending cuts are needed. | :04:07. | :04:08. | |
We ask three of the BBC's top editors what they | :04:09. | :04:12. | |
George Osborne has been the Chancellor for a long time and | :04:13. | :04:17. | |
during the six years, but of his reputation has been built on either | :04:18. | :04:20. | |
trying to sort the books out or making cuts to public spending, | :04:21. | :04:23. | |
depending which way you look at the argument. Look out for more cuts to | :04:24. | :04:28. | |
come. A couple of weeks ago he warned that because of the way the | :04:29. | :04:32. | |
economy was moving, he was still going to have to take the axe to | :04:33. | :04:37. | |
public spending, which might feel like a contrast to his statement six | :04:38. | :04:40. | |
months ago at the spending review when he suggested the economy was a | :04:41. | :04:45. | |
long way back from the crash. He wants to cut the ?70 billion budget | :04:46. | :04:49. | |
deficit to zero so the government earns more than it spends. I think | :04:50. | :04:55. | |
business taxes will probably be increased and also of course there | :04:56. | :04:58. | |
will be more cuts to some public services. But when it comes to | :04:59. | :05:04. | |
individuals, he may give us all a tax cut, which he will do by | :05:05. | :05:08. | |
increasing the level at which we start paying tax and also increase | :05:09. | :05:12. | |
in the level at which high rates of taxes kick in. One of the things of | :05:13. | :05:17. | |
the Chancellor will try to do is instil confidence in business which | :05:18. | :05:22. | |
has taken a knock with EU Referendum uncertainty, so expect him to try to | :05:23. | :05:25. | |
lay out certainty for business about what taxes and costings they will | :05:26. | :05:29. | |
face, perhaps a business tax roadmap to try to achieve that. The other | :05:30. | :05:33. | |
thing to look out for is that the Northey is in trouble. He is making | :05:34. | :05:38. | |
no tax on the profits from the North Sea -- North Sea. He might cut taxes | :05:39. | :05:41. | |
to stimulate more investment. Laura, Kamal R, all on Twitter, by | :05:42. | :05:50. | |
the way -- and Simon. They will be tweeting throughout the day and we | :05:51. | :05:53. | |
have the Business Live page online, do watch it, as it will be updated | :05:54. | :05:58. | |
constantly on the latest announcements and it will be | :05:59. | :06:02. | |
broadcast on TV and online as well. If you want to know what's | :06:03. | :06:05. | |
happening, be sure to stay with us here on the BBC. Let's move on. | :06:06. | :06:08. | |
Shares in the Japanese electronics giant, Sharp, have fallen 9% over | :06:09. | :06:11. | |
fears a takeover by the Taiwanese firm Foxconn may be in jeopardy. | :06:12. | :06:14. | |
It is nice to see you, Rico. It is on and off, where are we? Well, at | :06:15. | :06:29. | |
least moment, it seems like it is in limbo and there is a possibility | :06:30. | :06:32. | |
that this deal, Sally, could be in trouble. At this point, sources said | :06:33. | :06:40. | |
some of those familiar with the deal say it mightn't happen this week. | :06:41. | :06:48. | |
What could really stifle this arrangement is the Taiwan group | :06:49. | :06:52. | |
wants clarity on the liabilities of Sharp that it has uncovered to the | :06:53. | :06:57. | |
end of 2015, and they are seeking guidance from the loss-making | :06:58. | :06:59. | |
Japanese electronics maker on its latest quarterly performance. A | :07:00. | :07:04. | |
Sharp spokesman said the companies are working hard to reach a | :07:05. | :07:06. | |
satisfactory agreement as soon as practically possible, and having not | :07:07. | :07:12. | |
set a signing date. That's why we are seeing investors nervous with | :07:13. | :07:17. | |
this uncertainty, unloading Sharp stocks amidst calls the deal | :07:18. | :07:23. | |
mightn't materialise. Going back to where it started, the Sharp board | :07:24. | :07:28. | |
announcing Foxconn's offer acceptance worth $6 billion over a | :07:29. | :07:34. | |
competing bid from innovation network Corporation of Japan, and it | :07:35. | :07:42. | |
would be the largest purchase of a Japanese company from a foreign | :07:43. | :07:46. | |
company. That is all. Thank you, Rico. | :07:47. | :07:50. | |
South Korea has had a contraction in the manufacturing and construction | :07:51. | :07:59. | |
sector in South Korea. Nigeria's state-owned oil company | :08:00. | :08:02. | |
has failed to pay the government $16 billion in what an official | :08:03. | :08:04. | |
audit says is a suspected fraud. The auditor general says | :08:05. | :08:08. | |
the Nigerian National Petroleum Corporation has provided no | :08:09. | :08:09. | |
explanation for the missing funds. Apple has said the Founding Fathers | :08:10. | :08:12. | |
of the US would be "appalled" by the ongoing battle | :08:13. | :08:15. | |
between the technology giant and the US government over access to | :08:16. | :08:17. | |
an encrypted mobile phone. The FBI wants Apple to develop | :08:18. | :08:20. | |
software so it can unlock the iPhone which belonged to one | :08:21. | :08:23. | |
of the gunmen involved in the Google's head | :08:24. | :08:26. | |
of its self-driving cars has urged politicians to make sure the US sets | :08:27. | :08:34. | |
consistent laws on the technology. Chris Urmson told | :08:35. | :08:37. | |
a Senate hearing the US Transport Secretary should be given authority | :08:38. | :08:39. | |
over the matter rather than it being Let's have a look at markets. So, in | :08:40. | :08:57. | |
Asia, they are treading nervously, really, ahead of today's decision | :08:58. | :09:01. | |
and news conference from the Federal Reserve. Everybody, pretty much | :09:02. | :09:05. | |
everybody, is in agreement that today nothing will happen in terms | :09:06. | :09:08. | |
of interest rate changes, but many economistss predict the next rise in | :09:09. | :09:13. | |
US rates will take place around June. So, what's happening today? | :09:14. | :09:16. | |
The dolly strengthening, which is good news for Japan. -- dollar is | :09:17. | :09:22. | |
strengthening. Shares are lower and Sharp is the big loser in Tokyo. | :09:23. | :09:26. | |
This is how things ended in the US. Of course, the Fed started their | :09:27. | :09:30. | |
meeting yesterday, and it finishes today. A mixed picture emerging in | :09:31. | :09:34. | |
the United States. Keep an eye on the town today with the budget as it | :09:35. | :09:39. | |
is announced, beginning at 12:30pm UK time. The US dollar will likely | :09:40. | :09:43. | |
remain strong today with the Federal Reserve very much in focus. We will | :09:44. | :09:47. | |
talk about those issuers in more detail in a couple of minutes when | :09:48. | :09:50. | |
we review the papers. I will see you then. -- issues. | :09:51. | :10:01. | |
An extra ?1.5 billion in education funding is set | :10:02. | :10:03. | |
to be the key giveaway when the Chancellor, George Osborne, | :10:04. | :10:05. | |
He will also give details on another ?4 billions he wants to | :10:06. | :10:11. | |
make in spending cuts as he tries to balance the country's books. | :10:12. | :10:12. | |
He will also give details on another ?4 billions he wants to | :10:13. | :10:12. | |
make in spending cuts as he tries to balance the country's books. | :10:13. | :10:15. |