30/05/2016 World Business Report

Now for the latest financial news with Aaron

Strike action and protests set to continue as French unions turn up

the heat, calling for more disruption across the country during

the Euro 2016 football championships.

And will this lady, the big boss of America's central bank, decide to

raise the cost of borrowing again for the world's biggest economy?

Or look at all the numbers and decide to sit on her hands?

Good morning, Britain and good morning, world. A public holiday

here, I've got the short straw but welcome to everyone out there. A

fascinating snapshot of the latest in business and money. Let's start

in France. A new strike threat has been issued

over the Euro 2016 football championships being held in France,

even as the petrol crisis there is After weeks of clashes

between police and protesters who've been demanding the government

withdraw a divisive labour bill, union leaders have called

for transport strikes in 10 cities The reforms are aimed

at bringing down France's double digit unemployment rate

and stimulating sluggish growth. It's currently around 10.2%. Much

more for youth employment. The law makes it easier hire

and fire French workers. It's hoped that companies will

take on more staff if they know The 35-hour working week stays

in force but is relaxed and treated as an average,

with firms able to negotiate hours, The reforms also make it easier

for companies to reduce pay as well as more freedom to negotiate

holidays and special leave. Meanwhile,

the French government says it will It says it is resuming talks with

unions in an effort to end the protests before France hosts

the Euro 2016 soccer tournament, Manji Cheto, Vice President

at political risk consultancy firm, Great to have you with us. You've

drawn the short straw as well, God love you, Manji. I get to spend time

with you, though. You're too kind. It's interesting, for viewers around

the world, you don't mess with European Championships, right

president but despite the threats by the unions, the French government

has said they will stick with the reforms but they kind of have to,

don't they? You have bosses and employers in France reluctant to

take on new workers at the moment and that's not good for any

economy. Absolutely, at the moment everyone recognises that the French

government perhaps we'll have to think about some kind of compromise,

what that will look like is yet to be determined. But with unions

threatening a strike were potentially you have 2.5 million

people coming to France, that's obviously quite significant for the

French economy and I'm not sure the French government will draw the

curtains and say we're not negotiating. There were some murmurs

and rumours on Friday that the French government may have to water

something down a little bit or backpedal a little bit, but at the

moment they are sticking to their guns. We are seeing the footage from

the protests and there is a lot of young people. Which made me think,

this is interesting, these young people are protesting and I'm

thinking, I wonder if they are shooting themselves in the foot? If

these labour reforms go through then it will allow one would imagine

young people to get a job. This is the kind of classic youth thinking,

you think you're invincible and you think actions now don't have an

impact on later on. As you rightly point out, a lot of these people

especially with social media and footage available, lots of young

people might find in future they have shot themselves in the foot. I

completely agree. Just briefly, when we talk about structural reforms in

France, it's been going on for a long time, and its economy has done

this since the recession, it has stagnated. Is it prove around the

world that reforms like this will give a boost to growth? Absolutely,

in the UK it's been quite controversial as well but we have

introduced more flexibility around the ability for employers to give

zero contract hours. It's very controversial but the UK economy has

done better than France. So reforms like this are important for

safeguarding the longer economic future of a country. Manji, thank

you so much, short and sweet but you're going to come back and go

through the papers later. Talk to you soon. Thank you very much.

There's a big week of economic data coming up

in the United States, which will provide investors with clues

as to when the US Federal Reserve may next raise interest rates,

A Fed rate hike could send shockwaves across the world

at a time when the global economy is slowing, in fact many will tell

you things are getting worse not better and that means emerging

Michelle Fleury reports from New York.

With the US economy taking baby steps forward there is renewed

uncertainty here on Wall Street as to how many times the US Federal

Reserve will raise interest rates this year. Traders are hoping to

pick up some pointers with this week's data. And here's what they'll

be watching. Tuesday sees the release April's the sake, PCE index,

the Fed's preferred measure of inflation. Wednesday has the latest

manufacturing snapshot and on Friday May's jobs report is due out. Good

numbers will strengthen the view that economic prosperity is

returning and that the world's largest economy is ready for higher

interest rates, perhaps even overdue according to this trader. The single

most important number will be the job slumber and that number has been

telling them they should have let rates normalise already, they are

late. A senior policy number inside the central bank suggested that the

Fed may be ready to act as the country moves closer to full

employment with inflation starting to pick up. Depending on the

incoming data and the following risks another increase may be

appropriate soon. So will rates go up at the Fed's next meeting in

June? At her most recent public appearance Fed chair Janet Yellen

was cagey. It's appropriate, and I've said this in the past, for the

Fed to gradually and cautiously increase our overnight low interest

rate over time. And probably in the coming months such a move would be

appropriate. For financial markets and the only

certainty is that the pace of future hikes will be gradual. Michelle

Fleury, BBC News, New York. A big week but we will keep that a

cross for you and bring you all the news on World Business Report.

Japan's Prime Minister Shinzo Abe may delay

the nation's sales tax hike to 2019, according to media reports,

The next tax hike was supposed to take place in April next year,

with an increase to 10% from the current 8%.

The increased to 8% was already hugely controversial in Japan and of

course Japan's economy isn't doing that great either, so he might be

postponing that. We will keep across that one.

A Chinese firm has apologised over an advert for detergent

which has provoked a storm of allegations of racism.

The manufacturer of Qiaobi said it strongly opposed and

In the ad, a black man is stuffed head-first

into a washing machine before emerging as a light-skinned Asian.

The firm had initially suggested that its critics

I'm reading pays for the first time, you're kidding me! -- reading this.

Rico has just popped up behind me. Where is the? -- he. Let's talk Tata

motors, of course it is famous for its Jaguar and Land Rover brand and

it hasn't been doing great of late. But correct me if I'm wrong, the

share prices is -- share price is up something like 40%? A change of

fortune, Aaron, what more can you ask for? Before they were stuck in

reverse but now they are in first and about to go to third. A blessing

of the year so far for one of India's biggest car manufacturers

amidst all the challenges. They got a new name after one of the cars was

called Zika because of the Zika virus. Their sales have been soaring

and so far sales have been good over the past few months. China has also

been strong, Aaron, for Tata motors despite the slowing economy. Jaguar

Land Rover is have been doing well, benefiting from operating leverage,

favourable currency movements and better geographic mix and lowering

raw material prices. Overall it will look good when they report later

this afternoon. I know you will keep across those numbers, we will talk

to you soon, not a public holiday there, Rico!

Don't forget you can get in touch with me and some of

I will be back with Chris and Manji to look through the newspapers in a

moment.