:00:00. > :00:10.Also in the programme embattled air-bags maker -
:00:11. > :00:12.Takata is seeing its shares soar in Tokyo.
:00:13. > :00:22.On the Presidential campaign trail Donald Trump made it clear
:00:23. > :00:26.he was going to get tough on US car makers who out-sourced production,
:00:27. > :00:30.claiming it's already led to millions of job losses.
:00:31. > :00:33.Well he's not yet in office but already the automobile industry
:00:34. > :00:41.US car giant Ford has announced it will extend operations in Michigan,
:00:42. > :00:44.as you can see behind me, and cancel plans for a $1.6 billion
:00:45. > :00:50.Earlier, in this tweet, President-elect Donald Trump
:00:51. > :00:54.criticised Ford's rival General Motors for making cars
:00:55. > :00:57.in Mexico available tax-free in the United States.
:00:58. > :01:04.Michelle Fleury has more from New York.
:01:05. > :01:11.Donald Trump has launched a series of attacks by Twitter, the rating
:01:12. > :01:17.bigger US multinationals who import goods from abroad and seldom in
:01:18. > :01:22.America. The rating. He has spoken out against auto industry
:01:23. > :01:29.manufacturing cars across the border. NAFTA allows vehicles to be
:01:30. > :01:35.sold duty-free within the US and Canada and Mexico. If they are at
:01:36. > :01:41.least 65% made in the block but Trump wants to rip up the agreement
:01:42. > :01:50.and in prose and 35% border tax. On Tuesday, Ford said it is scrapping
:01:51. > :01:51.plans for a base in Mexico and expanding in Michigan instead.
:01:52. > :01:54.Speaking to BBC World business news the boss of Ford,
:01:55. > :01:57.Mark Fields, told us what prompted the decision to cancel the planned
:01:58. > :02:06.Overall, the reason we made this decision is it the right thing to
:02:07. > :02:09.our business. As you can imagine, we look at different factors when we
:02:10. > :02:13.look at decisions. The announcements we are making the day of $700
:02:14. > :02:17.million investment here in our fight rock Michigan plant and adding 700
:02:18. > :02:22.jobs, one of the factors we put into that is the more favourable US
:02:23. > :02:25.business environment that we see under President-elect Trump and to
:02:26. > :02:29.some of the pro- growth policies and reforms whether it is tax or
:02:30. > :02:34.revelatory but he's been talking about so that did play positively in
:02:35. > :02:36.this and it's a vote of confidence that he can deliver on those things.
:02:37. > :02:39.In a few hours time we'll receive the latest inflation figures
:02:40. > :02:44.The block managed growth of 0.3% in the third quarter of last year
:02:45. > :02:47.and a sustained rise in prices could lead to the scaling back
:02:48. > :02:50.of the European Central Banks de facto money-printing program.
:02:51. > :02:53.As you can see here - there has been a marked improvement
:02:54. > :02:56.in the rate of inflation for the block and in yellow you can
:02:57. > :02:59.see the 1% rate of inflation that Economists are predicting
:03:00. > :03:13.With me to discuss this is Jeremy Cook, Chief Economist,
:03:14. > :03:27.What are you expecting? 1% seems to be the consensus view. We had a big
:03:28. > :03:33.surprise out of Germany yesterday, two year high out of their prices,
:03:34. > :03:37.up to 1.7%. It could even be higher than 1% and that's a big step change
:03:38. > :03:42.from the month previous. A lot of this rise is as a result of oil
:03:43. > :03:48.pressures, the base Fx of the big fall in 2015, a slight pickup in
:03:49. > :03:54.2016. -- affects. What will the US central bank do in response? There
:03:55. > :03:58.are two types of inflation. Headline inflation and core inflation. This
:03:59. > :04:03.is focused on core inflation which takes out volatile food and oil
:04:04. > :04:10.measures and that will stay at around 1.8% --0 .8%. Core inflation,
:04:11. > :04:15.the stuff that really matters in the economy and the stuff we can in --
:04:16. > :04:21.control, is still much below target and they will keep that on the
:04:22. > :04:25.accelerator. The eurozone has really been struggling when it comes to
:04:26. > :04:29.delivering growth, unlike other economies around the world. What is
:04:30. > :04:33.this year going to be like in the terms of economic performance by the
:04:34. > :04:37.eurozone, given that there are two big members, France and Germany,
:04:38. > :04:41.with elections? It will be a fairly tough year for the continent as a
:04:42. > :04:47.whole. Everybody is spoken on politics but businesses who trade
:04:48. > :04:54.have two deal with volatility in currency markets -- focused on
:04:55. > :04:59.politics. They are at record lows against the US dollar. We need to
:05:00. > :05:04.seek growth at a rate that can start to lower the unemployment rate in
:05:05. > :05:08.the eurozone as a whole which is still almost double of what we see
:05:09. > :05:12.in the US and the UK. There is a lot of room for improvement in the
:05:13. > :05:17.eurozone. Given the situation, certainly the case in France with
:05:18. > :05:28.unemployment stubbornly high which is why France was a blonde is not
:05:29. > :05:32.going to try to get the job again -- Francoise Holland. A lot of it is
:05:33. > :05:40.due to the economy, isn't it? Jono yes and also change. -- yes, and
:05:41. > :05:46.also change. If we start to see in the run higher and start to see
:05:47. > :05:50.prices without wage increases seen each we are not likely to see in
:05:51. > :05:54.Germany or France or benevolence or Italy or Spain, and people will sit
:05:55. > :06:03.there saying, my life is more expensive, how can I change this?
:06:04. > :06:05.That feeds into the votes. -- or the Netherlands. No doubt we will speak
:06:06. > :06:05.again. Troubled car parts maker Takata
:06:06. > :06:09.saw its shares jump by more than 17% today in Tokyo - this on reports
:06:10. > :06:12.the Japanese firm is close to settling a US criminal probe
:06:13. > :06:15.into faulty airbags that have been linked to 11 deaths
:06:16. > :06:19.and more than 100 injuries. Sharanjit Leyl joins me now
:06:20. > :06:31.from our Asia business hub Normally we are talking about Takata
:06:32. > :06:37.shares sinking and today we see the opposite. Indeed. The reason why it
:06:38. > :06:41.is today is it's really the first chance that many investors have two
:06:42. > :06:47.really react to the reports you mentioned last week. It's the first
:06:48. > :06:52.day of trade in Japan for 2017 so the shares are at the moment at
:06:53. > :06:56.17.5%. You mentioned the reports from last week essentially saying
:06:57. > :07:01.the troubled Japanese auto-parts maker was fairly close to settling a
:07:02. > :07:05.US criminal probe into the exploding airbag scandal. We know that Takata
:07:06. > :07:11.is the maker of the defective airbag is have been linked to at least 16
:07:12. > :07:15.deaths worldwide, 11 in the US, and they can apparently exploit with
:07:16. > :07:20.excessive force and send metal shrapnel inside cars and trucks.
:07:21. > :07:26.These reports citing sources say that the criminal charges could be
:07:27. > :07:31.settled before Obama administration leaves office next month. Part of
:07:32. > :07:34.the settlement will include Takata pleading guilty to criminal
:07:35. > :07:37.misconduct, according to the reports. The Justice Department have
:07:38. > :07:43.been investigating whether the firm had hidden information from safely
:07:44. > :07:48.great -- safety regulators and sources say a deal will likely
:07:49. > :07:52.include a monitor to ensure Takata's compliance with the agreement. One
:07:53. > :07:56.of the sources was the Wall Street Journal which reported a settlement
:07:57. > :08:00.could require Takata to pay as much as $1 billion and be reached as
:08:01. > :08:03.early as January. Both Takata and the Department of Justice have
:08:04. > :08:08.declined to comment but nonetheless, investors seem to like the news and
:08:09. > :08:09.they are buying up the shares. Thank you, Sharanjit Leyl, good to see
:08:10. > :08:10.you. Some British Airways cabin crew
:08:11. > :08:14.are to stage a 48 hour strike Members of the UK's Unite union have
:08:15. > :08:18.rejected a new offer aimed A previous walkout planned
:08:19. > :08:23.for Christmas Day and Boxing Day BA says it plans to ensure that
:08:24. > :08:38.all their customers can travel Kaesler, one of the world's biggest
:08:39. > :08:43.car makers of electronic cars increased profits. They made almost
:08:44. > :08:47.83,000 cars in 2016 -- Tesla. They missed the delivery target of the
:08:48. > :08:53.last three met -- last three months of it. Elon musk said Robinson with
:08:54. > :08:57.the hardware led to the company producing fewer vehicles than
:08:58. > :09:01.previously forecast. While Tesla may be producing more cars, it is also
:09:02. > :09:07.getting more competition. There are more tech start-ups unveiling the
:09:08. > :09:13.words fastest self driving electric car that can accelerate from 0- 60
:09:14. > :09:20.in 2.39 seconds. That is quite fast. I will see you soon.