:00:00. > :00:00.Now for the latest financial news with Aaron
:00:00. > :00:16.Strike action and protests set to continue as French unions turn up
:00:17. > :00:19.the heat, calling for more disruption across the country during
:00:20. > :00:31.the Euro 2016 football championships.
:00:32. > :00:35.And will this lady, the big boss of America's central bank, decide to
:00:36. > :00:40.raise the cost of borrowing again for the world's biggest economy?
:00:41. > :00:48.Or look at all the numbers and decide to sit on her hands?
:00:49. > :00:58.Good morning, Britain and good morning, world. A public holiday
:00:59. > :01:04.here, I've got the short straw but welcome to everyone out there. A
:01:05. > :01:05.fascinating snapshot of the latest in business and money. Let's start
:01:06. > :01:06.in France. A new strike threat has been issued
:01:07. > :01:09.over the Euro 2016 football championships being held in France,
:01:10. > :01:12.even as the petrol crisis there is After weeks of clashes
:01:13. > :01:18.between police and protesters who've been demanding the government
:01:19. > :01:20.withdraw a divisive labour bill, union leaders have called
:01:21. > :01:23.for transport strikes in 10 cities The reforms are aimed
:01:24. > :01:39.at bringing down France's double digit unemployment rate
:01:40. > :01:47.and stimulating sluggish growth. It's currently around 10.2%. Much
:01:48. > :01:53.more for youth employment. The law makes it easier hire
:01:54. > :01:55.and fire French workers. It's hoped that companies will
:01:56. > :01:58.take on more staff if they know The 35-hour working week stays
:01:59. > :02:12.in force but is relaxed and treated as an average,
:02:13. > :02:15.with firms able to negotiate hours, The reforms also make it easier
:02:16. > :02:21.for companies to reduce pay as well as more freedom to negotiate
:02:22. > :02:28.holidays and special leave. Meanwhile,
:02:29. > :02:30.the French government says it will It says it is resuming talks with
:02:31. > :02:34.unions in an effort to end the protests before France hosts
:02:35. > :02:37.the Euro 2016 soccer tournament, Manji Cheto, Vice President
:02:38. > :02:56.at political risk consultancy firm, Great to have you with us. You've
:02:57. > :03:03.drawn the short straw as well, God love you, Manji. I get to spend time
:03:04. > :03:07.with you, though. You're too kind. It's interesting, for viewers around
:03:08. > :03:10.the world, you don't mess with European Championships, right
:03:11. > :03:13.president but despite the threats by the unions, the French government
:03:14. > :03:18.has said they will stick with the reforms but they kind of have to,
:03:19. > :03:21.don't they? You have bosses and employers in France reluctant to
:03:22. > :03:26.take on new workers at the moment and that's not good for any
:03:27. > :03:30.economy. Absolutely, at the moment everyone recognises that the French
:03:31. > :03:34.government perhaps we'll have to think about some kind of compromise,
:03:35. > :03:38.what that will look like is yet to be determined. But with unions
:03:39. > :03:42.threatening a strike were potentially you have 2.5 million
:03:43. > :03:45.people coming to France, that's obviously quite significant for the
:03:46. > :03:49.French economy and I'm not sure the French government will draw the
:03:50. > :03:55.curtains and say we're not negotiating. There were some murmurs
:03:56. > :03:59.and rumours on Friday that the French government may have to water
:04:00. > :04:01.something down a little bit or backpedal a little bit, but at the
:04:02. > :04:07.moment they are sticking to their guns. We are seeing the footage from
:04:08. > :04:11.the protests and there is a lot of young people. Which made me think,
:04:12. > :04:15.this is interesting, these young people are protesting and I'm
:04:16. > :04:19.thinking, I wonder if they are shooting themselves in the foot? If
:04:20. > :04:24.these labour reforms go through then it will allow one would imagine
:04:25. > :04:30.young people to get a job. This is the kind of classic youth thinking,
:04:31. > :04:34.you think you're invincible and you think actions now don't have an
:04:35. > :04:38.impact on later on. As you rightly point out, a lot of these people
:04:39. > :04:41.especially with social media and footage available, lots of young
:04:42. > :04:47.people might find in future they have shot themselves in the foot. I
:04:48. > :04:51.completely agree. Just briefly, when we talk about structural reforms in
:04:52. > :04:55.France, it's been going on for a long time, and its economy has done
:04:56. > :05:01.this since the recession, it has stagnated. Is it prove around the
:05:02. > :05:05.world that reforms like this will give a boost to growth? Absolutely,
:05:06. > :05:08.in the UK it's been quite controversial as well but we have
:05:09. > :05:13.introduced more flexibility around the ability for employers to give
:05:14. > :05:18.zero contract hours. It's very controversial but the UK economy has
:05:19. > :05:21.done better than France. So reforms like this are important for
:05:22. > :05:24.safeguarding the longer economic future of a country. Manji, thank
:05:25. > :05:29.you so much, short and sweet but you're going to come back and go
:05:30. > :05:31.through the papers later. Talk to you soon. Thank you very much.
:05:32. > :05:34.There's a big week of economic data coming up
:05:35. > :05:37.in the United States, which will provide investors with clues
:05:38. > :05:40.as to when the US Federal Reserve may next raise interest rates,
:05:41. > :05:58.A Fed rate hike could send shockwaves across the world
:05:59. > :06:02.at a time when the global economy is slowing, in fact many will tell
:06:03. > :06:05.you things are getting worse not better and that means emerging
:06:06. > :06:13.Michelle Fleury reports from New York.
:06:14. > :06:19.With the US economy taking baby steps forward there is renewed
:06:20. > :06:22.uncertainty here on Wall Street as to how many times the US Federal
:06:23. > :06:27.Reserve will raise interest rates this year. Traders are hoping to
:06:28. > :06:31.pick up some pointers with this week's data. And here's what they'll
:06:32. > :06:37.be watching. Tuesday sees the release April's the sake, PCE index,
:06:38. > :06:42.the Fed's preferred measure of inflation. Wednesday has the latest
:06:43. > :06:46.manufacturing snapshot and on Friday May's jobs report is due out. Good
:06:47. > :06:50.numbers will strengthen the view that economic prosperity is
:06:51. > :06:54.returning and that the world's largest economy is ready for higher
:06:55. > :06:58.interest rates, perhaps even overdue according to this trader. The single
:06:59. > :07:01.most important number will be the job slumber and that number has been
:07:02. > :07:07.telling them they should have let rates normalise already, they are
:07:08. > :07:11.late. A senior policy number inside the central bank suggested that the
:07:12. > :07:15.Fed may be ready to act as the country moves closer to full
:07:16. > :07:19.employment with inflation starting to pick up. Depending on the
:07:20. > :07:23.incoming data and the following risks another increase may be
:07:24. > :07:29.appropriate soon. So will rates go up at the Fed's next meeting in
:07:30. > :07:33.June? At her most recent public appearance Fed chair Janet Yellen
:07:34. > :07:40.was cagey. It's appropriate, and I've said this in the past, for the
:07:41. > :07:43.Fed to gradually and cautiously increase our overnight low interest
:07:44. > :07:48.rate over time. And probably in the coming months such a move would be
:07:49. > :07:53.appropriate. For financial markets and the only
:07:54. > :07:55.certainty is that the pace of future hikes will be gradual. Michelle
:07:56. > :08:02.Fleury, BBC News, New York. A big week but we will keep that a
:08:03. > :08:03.cross for you and bring you all the news on World Business Report.
:08:04. > :08:07.Japan's Prime Minister Shinzo Abe may delay
:08:08. > :08:10.the nation's sales tax hike to 2019, according to media reports,
:08:11. > :08:15.The next tax hike was supposed to take place in April next year,
:08:16. > :08:24.with an increase to 10% from the current 8%.
:08:25. > :08:30.The increased to 8% was already hugely controversial in Japan and of
:08:31. > :08:35.course Japan's economy isn't doing that great either, so he might be
:08:36. > :08:36.postponing that. We will keep across that one.
:08:37. > :08:38.A Chinese firm has apologised over an advert for detergent
:08:39. > :08:43.which has provoked a storm of allegations of racism.
:08:44. > :08:46.The manufacturer of Qiaobi said it strongly opposed and
:08:47. > :08:52.In the ad, a black man is stuffed head-first
:08:53. > :08:55.into a washing machine before emerging as a light-skinned Asian.
:08:56. > :08:57.The firm had initially suggested that its critics
:08:58. > :09:14.I'm reading pays for the first time, you're kidding me! -- reading this.
:09:15. > :09:26.Rico has just popped up behind me. Where is the? -- he. Let's talk Tata
:09:27. > :09:30.motors, of course it is famous for its Jaguar and Land Rover brand and
:09:31. > :09:36.it hasn't been doing great of late. But correct me if I'm wrong, the
:09:37. > :09:41.share prices is -- share price is up something like 40%? A change of
:09:42. > :09:44.fortune, Aaron, what more can you ask for? Before they were stuck in
:09:45. > :09:49.reverse but now they are in first and about to go to third. A blessing
:09:50. > :09:53.of the year so far for one of India's biggest car manufacturers
:09:54. > :10:02.amidst all the challenges. They got a new name after one of the cars was
:10:03. > :10:06.called Zika because of the Zika virus. Their sales have been soaring
:10:07. > :10:13.and so far sales have been good over the past few months. China has also
:10:14. > :10:18.been strong, Aaron, for Tata motors despite the slowing economy. Jaguar
:10:19. > :10:20.Land Rover is have been doing well, benefiting from operating leverage,
:10:21. > :10:26.favourable currency movements and better geographic mix and lowering
:10:27. > :10:30.raw material prices. Overall it will look good when they report later
:10:31. > :10:33.this afternoon. I know you will keep across those numbers, we will talk
:10:34. > :10:36.to you soon, not a public holiday there, Rico!
:10:37. > :10:39.Don't forget you can get in touch with me and some of
:10:40. > :10:44.I will be back with Chris and Manji to look through the newspapers in a
:10:45. > :10:46.moment.