:00:21. > :00:22.More than a flight of fancy - investors scramble for safety
:00:23. > :00:24.as increasing uncertainty about the global economy leads big
:00:25. > :00:29.With the UK's referendum on it's EU membership just eight days away
:00:30. > :00:31.we hear from one small business who believes the country
:00:32. > :00:51.Financial markets worldwide are on edge with investors looking
:00:52. > :00:55.Today the US Federal Reserve concludes its monetary policy
:00:56. > :00:59.meeting but the focus is firmly on Europe.
:01:00. > :01:05.European markets took at beating on Tuesday as investors weighed up
:01:06. > :01:07.the consequences of next week's EU referendum vote.
:01:08. > :01:10.Add to that concerns about global growth and the commodity slump
:01:11. > :01:13.and there is little reason to be bullish. Despite Japan adopting
:01:14. > :01:16.negative interest rates in January, you can see here its currency,
:01:17. > :01:18.the Yen, has continued to strengthen against the dollar as investors
:01:19. > :01:21.flock to major currencies for their safe haven status.
:01:22. > :01:31.It has risen by more than $200 an ounce since the beginning
:01:32. > :01:33.of the year, with some economists predicting market uncertainty
:01:34. > :01:41.is likely to drive the price up even further.
:01:42. > :01:46.And of course investors have also been flocking to government bonds.
:01:47. > :01:49.On Tuesday the yield on German ten year bonds went into negative
:01:50. > :01:51.territory for the first time, with investors effectively paying
:01:52. > :02:00.for the privilege of leaving their money with the German government.
:02:01. > :02:03.Let's here about the impact this is having around the world now,
:02:04. > :02:13.starting in Asia where markets right now are mixed.
:02:14. > :02:21.Here in Singapore in investors have been focused on the value of the
:02:22. > :02:25.Japanese yen. It has approached its strongest level since October 20 14.
:02:26. > :02:29.More people have bought the yen as a safe haven currency because of
:02:30. > :02:33.concerns over the UK quitting the European Union -- 2014. And also
:02:34. > :02:37.because of uncertainty over whether central banks like the US Fed for
:02:38. > :02:42.instance will raise interest rates or not this week. Traders are also
:02:43. > :02:47.worried about China's economy. The IMF has warned that China faces
:02:48. > :02:56.growing vulnerabilities and has fewer buffers to deal with any
:02:57. > :03:00.future shocks. Here in London there is evidence of the flight to safety
:03:01. > :03:05.in the markets. The yield on German government debt has fallen into
:03:06. > :03:09.negative territory as investors put preserving capital ahead of any
:03:10. > :03:15.returns on their money. Government bond yields in the UK have also
:03:16. > :03:18.fallen. There are three interconnected reasons for this
:03:19. > :03:23.whisk off attitude. From the start of the year there had been global
:03:24. > :03:27.worries about the performance of the Chinese economy. Across Europe,
:03:28. > :03:33.interest rates are low, inflation is low and economic growth is slow. And
:03:34. > :03:39.then there is what is called Brexit whisk - could Britain leave the EU
:03:40. > :03:43.in the referendum in that country on June 23? That's creating uncertainty
:03:44. > :03:53.in the market and encouraging investors into safe haven assets
:03:54. > :03:58.like government debt. The focus in New York and here on Wall Street is
:03:59. > :04:01.the outcome of the Federal Reserve's two a policy meeting. The dismal May
:04:02. > :04:05.jobs report has pretty much rules out an interest rate hike this month
:04:06. > :04:12.but what investors want to know if not now, well, then when? --
:04:13. > :04:16.two-day. Adding to the Wall Street concerns are the recent falls that
:04:17. > :04:20.show growing support of a Brexit. While the US government bonds have
:04:21. > :04:26.not turned negative, they have flirted with some of its lowest
:04:27. > :04:33.levels in four years. The one bright spot are the strong US retail sales,
:04:34. > :04:37.in the month of May. Americans spend money on things like cars and other
:04:38. > :04:39.goods despite paying more for gas, suggesting perhaps the US economy
:04:40. > :04:43.has some strength. With me not to discuss
:04:44. > :04:57.this is Jeremy Cook, Good morning, Jeremy. So, let's
:04:58. > :05:04.start with the Fed, today's meeting - we're not expecting news from them
:05:05. > :05:07.pursuant no, it is strange when the meeting is overshadowed by
:05:08. > :05:16.everything else -- we're not expecting news from them? No. The
:05:17. > :05:20.May jobs report, 38,000 jobs added, was a poor number, two standard
:05:21. > :05:24.deviations away from the consensus with 100,000 jobs worse off than
:05:25. > :05:29.markets were looking for. That has checked everyone's thoughts. Is it a
:05:30. > :05:35.case of it is so bad that it means the Fed won't raise rates as opposed
:05:36. > :05:40.to delaying the inevitable rise? Janet Yellen mentioned the UK
:05:41. > :05:46.referendum as a reason to be cautious. When will the Fed make a
:05:47. > :05:52.move? On the central scenario that the UK remains part of the EU are
:05:53. > :05:55.think there is still a reasonable expectation that the Federal Reserve
:05:56. > :06:00.will raise rates in September. If we see a revision higher to the jobs
:06:01. > :06:03.number, retail has been good and if that creates inflation pressure,
:06:04. > :06:09.that is what the Federal Reserve will react too. Talking about safer
:06:10. > :06:16.havens, the Japanese yen is one of the places to put your money. Why?
:06:17. > :06:20.When markets get crazy and fearful they want a safe haven. That might
:06:21. > :06:25.be government debt. In the currency world it is the US dollar and the
:06:26. > :06:29.Japanese yen. Investors look for large economies, deep capital
:06:30. > :06:32.markets, the will of law is stable. It has been in a poor state for a
:06:33. > :06:37.long time and yet people pile money into their currency. They are not
:06:38. > :06:41.looking for a return on their money but off their money. Look at
:06:42. > :06:46.inflation dynamics. It is low, nonexistence, and has been for ages
:06:47. > :06:49.in Japan. Even if they put their money into the Japanese yen it won't
:06:50. > :06:53.be eroded by inflation and they won't lose money either. Expect it
:06:54. > :06:57.to strengthen if we see these market interruptions. Not good news for
:06:58. > :07:01.those exporters in Japan at all. Thank you. It is nice to see you and
:07:02. > :07:05.of course we will be across everything as it happens here on the
:07:06. > :07:07.BBC, as you can understand. Let's move on.
:07:08. > :07:10.While many of the headlines relating to the UK's EU referendum have been
:07:11. > :07:14.generated by the views of big firms, there are in fact more people
:07:15. > :07:16.working in small and medium sized businesses, or SMEs,
:07:17. > :07:18.who will have a chance to vote on the issue.
:07:19. > :07:21.Today BBC Business continues its series of films focusing
:07:22. > :07:23.on what this important part of the UK's economy thinks
:07:24. > :07:40.I am John Hancock, I have been in the fishing industry for 45 years, I
:07:41. > :07:45.was a skipper for 30 years, the managing director of a company
:07:46. > :07:50.called Charisma UK limited in porting fresh and frozen fish from
:07:51. > :07:55.Norway. When I first art of year there were 400 boats and now there
:07:56. > :08:02.are five or six, and this is down to government policy and of course the
:08:03. > :08:06.EU and at increasing bureaucracy that is involved in the fishing
:08:07. > :08:11.industry. Because stocks have recovered, I think we are able to
:08:12. > :08:15.rebuild the fishing industry, piece by piece, once outside. We're not
:08:16. > :08:20.going to the halcyon days that we once had but we can regain the core
:08:21. > :08:25.trades that are needed to run a fishing fleet, engineers, and
:08:26. > :08:32.electricians, welders, villages, fish packing, everything involved,
:08:33. > :08:38.which means the community thrives -- filleters. It is about the whole of
:08:39. > :08:41.the UK and all the Coastal Communities.
:08:42. > :08:44.The world's biggest stock index provider, MSCI,
:08:45. > :08:47.has again delayed the inclusion of China's mainland domestic shares
:08:48. > :08:50.Inclusion on the index would have been a major step forward
:08:51. > :08:53.for Beijing as it attempts to open up its financial markets
:08:54. > :08:56.China has in recent months increased its efforts
:08:57. > :08:59.to reform its often volatile stock market, but MSCI said global
:09:00. > :09:08.A top US federal appeals court has upheld some of the strongest net
:09:09. > :09:13.It rules that high-speed internet service can be defined as a utility.
:09:14. > :09:15.The sweeping decision clears the way for more rigorous policing
:09:16. > :09:25.of broadband providers and greater protections for web users.
:09:26. > :09:28.More than two dozen companies have signed a pledge to address gender
:09:29. > :09:29.inequality in the workplace by regularly reviewing
:09:30. > :09:33.The pledge is part of the first United State of Women Summit,
:09:34. > :09:36.hosted by the White House and the 28 signatories include Pepsi,
:09:37. > :09:40.Each of the companies has agreed to undertake an organisation-wide
:09:41. > :09:42.analysis of their salary policies, to review hiring and promotion
:09:43. > :09:44.practices, and to include equal pay efforts in other equality
:09:45. > :10:07.Let's look at financial markets. So things have calmed a little in Asia.
:10:08. > :10:12., my goodness, we have come up straightaway. I would try to get
:10:13. > :10:16.them back. -- oh, my goodness. Let's not forget Japan lost 4% on Monday
:10:17. > :10:20.and even more ground on Tuesday with the yen remained very strong.
:10:21. > :10:24.Although this is a slight increase on markets in Asia to date, do not
:10:25. > :10:37.be fooled, it doesn't mean a better day ahead will start in Europe later
:10:38. > :10:38.-- today. That things ended in the States. I'll see you soon. -- that