:00:00. > :00:00.to seize the house where Adolf Hitler was born.
:00:00. > :00:00.This follows the repeated refusal of its owner to sell the building
:00:00. > :00:08.Now for the latest financial news with Sally Bundock
:00:09. > :00:19.The Fed hikes interest rates, and signals they will rise
:00:20. > :00:27.Are we seeing the first effects of Trumponomics?
:00:28. > :00:30.Plus, London's loss could be New York's gain.
:00:31. > :00:32.A House of Lords committee warns against pushing the City off
:00:33. > :00:53.We will show you all the market numbers very soon. I have to say
:00:54. > :00:55.that most of them are headed south. We will start with the reason why.
:00:56. > :00:57.We start with US interest rates, because America's Central Bank,
:00:58. > :01:00.the Federal Reserve, has raised the cost of borrowing.
:01:01. > :01:02.Nearly everyone predicted that would happen.
:01:03. > :01:05.What wasn't expected was a strong signal they will be going up faster,
:01:06. > :01:07.and higher, than most have been counting on.
:01:08. > :01:09.That's rattled stock markets and boosted the dollar.
:01:10. > :01:12.Higher rates will have a knock-on effect around the world.
:01:13. > :01:15.And what wasn't said, but was implied, was the role
:01:16. > :01:18.in all this of the economic plans of President-Elect Trump.
:01:19. > :01:23.The Fed has raised its main interest rate by a quarter of a percentage
:01:24. > :01:26.point It's now set at a range of a between 0.5% and 0.75%.
:01:27. > :01:29.The Fed is now predicting three rate rises next year,
:01:30. > :01:33.And three more a year for the following two years.
:01:34. > :01:35.So that borrowing costs will hit 3% by 2019.
:01:36. > :01:37.Again, that's higher than its previous predictions.
:01:38. > :01:42.Well, it wasn't spelled out, but there were strong hints it's
:01:43. > :01:46.His plans for lower taxes and more spending which should boost
:01:47. > :01:58.His plans for lower taxes and more spending which should boost
:01:59. > :02:05.From New York, here's Samira Hussain.
:02:06. > :02:08.This is only the second time America's Central Bank has raised
:02:09. > :02:11.interest rates since cutting them to almost zero in the depths
:02:12. > :02:15.A lot has changed in the last decade.
:02:16. > :02:18.The US labour market is strengthening and inflation
:02:19. > :02:22.is now inching closer to the Federal Reserve's target rate
:02:23. > :02:25.This change to monetary policy was expected,
:02:26. > :02:27.but what everyone wanted to know from the Chair
:02:28. > :02:30.of the Federal Reserve Janet Yellen, was how changes to America's fiscal
:02:31. > :02:34.policy may change the Fed's outlook "some of the participants but not
:02:35. > :02:36.all of the participants did incorporate some assumption
:02:37. > :02:44.of a change in fiscal policy into their projection.
:02:45. > :02:48.And that may have been a factors that was one of several that
:02:49. > :02:57.There was no mention of President-Elect Donald Trump
:02:58. > :03:01.by name, but the implication was clear.
:03:02. > :03:03.The plans of the incoming administration are beginning
:03:04. > :03:05.to influence what the Federal Reserve has forecast
:03:06. > :03:18.So, let's take a look at how markets are reacting to all of this in Asia.
:03:19. > :03:31.Talk us through it. Everything is headed south. That is right. Still
:03:32. > :03:37.in southern territory. Although, a quarter of a percent increase was
:03:38. > :03:45.expected. Investors were surprised to see the Fed is now projecting not
:03:46. > :03:48.two, but three, increases for 2017. Japan getting early gains after the
:03:49. > :03:58.release of upbeat manufacturing numbers. Hong Kong's Hang Seng Index
:03:59. > :04:04.falling. South Korea and the Shanghai Composite index also in
:04:05. > :04:11.negative territory. Apart from the US Fed, you also have the Hong Kong
:04:12. > :04:19.monetary authority immediately following the Fed's lead and raising
:04:20. > :04:22.the lending by a quarter of a percent. That is because
:04:23. > :04:27.policymakers in China's financial sector have no choice but to follow
:04:28. > :04:32.what the Fed does. Also, we are seeing strength in the dollar with
:04:33. > :04:39.the greenback at a ten month high against the Japanese yen. And the
:04:40. > :04:46.euro is at its lowest level against the greenback since March, 2015. So,
:04:47. > :04:50.things are not looking good for Asian currencies as well. Sally
:04:51. > :04:52.Bundock. Thank you, Rico Hizon. Good to see you.
:04:53. > :04:55.We are also continuing to follow fierce debate over Britain's
:04:56. > :04:59.There is a warning this morning from the House of Lords over
:05:00. > :05:02.the impact of Brexit on the UK's financial industry.
:05:03. > :05:05.It warns that Britain will need a 'transitional period' once it
:05:06. > :05:08.leaves the EU, so that financial firms don't face what it calls
:05:09. > :05:11.a "cliff edge" that pushes them to relocate their business.
:05:12. > :05:14.If we take a look at some of the details of the report.
:05:15. > :05:17.It points out that London is the world's top financial centre
:05:18. > :05:30.employing well over a million people.
:05:31. > :05:33.A lot of those are foreigners, 60,000 from the EU, 100,000
:05:34. > :05:38.The industry relies on the ability to access staff with the right
:05:39. > :05:40.skills and easily transfer them between the UK and EU.
:05:41. > :05:43.Then there is the key issue of "passporting," the ability
:05:44. > :05:46.of London-based firms to sell financial services across the EU,
:05:47. > :05:48.a privilege they might lose after Brexit.
:05:49. > :05:51.And it says the EU should also think carefully to avoid
:05:52. > :05:55.EU firms rely on the services provided in the UK, and pain caused
:05:56. > :05:58.to the UK's financial sector will not benefit the EU,
:05:59. > :06:02.On Wednesday, one of the people in charge of taking Britain out
:06:03. > :06:05.of the EU, the Brexit Secretary, David Davis, was facing questions
:06:06. > :06:15.from members of Parliament about the Government's plans.
:06:16. > :06:22.The government is now going to publish its plan for the
:06:23. > :06:28.negotiations before Article 50 is triggered. When can we expect to see
:06:29. > :06:34.this? As soon as we can, chairman. Once all the research and policy is
:06:35. > :06:40.complete. And the reason for the setting of the final possible date
:06:41. > :06:46.of the 31st of March was numerous. But one of those was the idea of
:06:47. > :06:52.sorting out policy first and consulting properly. So, next month,
:06:53. > :06:58.January, February? It will not be next month. The policy work is still
:06:59. > :07:06.under way and there are many decisions still to be made. We have
:07:07. > :07:15.carried out, well, 57, I think, each which I think has consequences with
:07:16. > :07:20.parts of the 85% economy. Some of those are still to be done. There is
:07:21. > :07:26.work still to be done on justice affairs. It will be as soon as we
:07:27. > :07:31.are ready. That is the UK Brexit Secretary, David Davis. Theresa May,
:07:32. > :07:33.the Prime Minister, is in Brussels today talking about all of that.
:07:34. > :07:37.Charles Dumas, Chief Economist at Lombard Street Research.
:07:38. > :07:44.Good morning. Good morning. Give us your take on this report from the
:07:45. > :07:48.House of Lords. Is it helpful? It seems to tell us what we already
:07:49. > :07:55.know. It is helpful because it highlights not much business will be
:07:56. > :07:59.moved to Paris or Frankfurt. If business moves it will go to New
:08:00. > :08:06.York. There is actually a general interest in making sure that be very
:08:07. > :08:11.coherent London scene does not get dismantled. They are pointing out
:08:12. > :08:15.the various issues at stake which are big issues when you look at the
:08:16. > :08:19.amount the city of London generates for the UK economy. Do you think
:08:20. > :08:23.there is an argument for a special deal for the financial sector as
:08:24. > :08:28.there has been for the car industry? I suppose there has to be one.
:08:29. > :08:33.Because finance is always mostly related to government. And
:08:34. > :08:37.government stands behind the financial industry, as we know.
:08:38. > :08:41.There has to be a special deal in some form or another, and in the
:08:42. > :08:46.British case, it is important. People will be concerned about it.
:08:47. > :08:51.Do we have any sense of where the EU is, that is, Michel Barnier and the
:08:52. > :09:02.others who have been given the job of negotiating with the city of
:09:03. > :09:07.London? It is not a question of were Michel Barnier is, but also Angela
:09:08. > :09:11.Merkel. And then you have front in this ring and autumn for Germany. I
:09:12. > :09:17.don't think any of these negotiations will get serious until
:09:18. > :09:20.we know who we are dealing with and people don't have to do a electoral
:09:21. > :09:25.politics any more and can just get on with business and the business of
:09:26. > :09:31.getting the best possible solution for themselves and for all of us.
:09:32. > :09:36.OK, we will leave it there, Charles. Thank you very much indeed for your
:09:37. > :09:38.thoughts and analysis. And there is more information about Angela Merkel
:09:39. > :09:41.and her visit to Brussels on the Yahoo says more than one billion
:09:42. > :09:45.user accounts may have been affected in a hacking attack
:09:46. > :09:47.dating back to 2013. The internet giant says it appears
:09:48. > :09:50.separate from a breach disclosed in September involving some 500
:09:51. > :09:52.million accounts that Yahoo said names, phone numbers,
:09:53. > :09:56.passwords and e-mail addresses were stolen, but not
:09:57. > :10:07.bank and payment data. We will talk some more about these
:10:08. > :10:09.stories when