15/03/2017 World Business Report

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Now for the latest financial news with Sally Bundock


Federal Reserve Chief Janet Yellen is expected to announce another rise


Watching the black stuff - oil prices are back in focus


with the price falling despite the efforts of OPEC.


Also in the programme, we have the latest numbers from Cathay Pacific.


They are back in the red. We will explain the details in a moment.


It's the day global markets have been waiting for -


on Tuesday, the US Federal Reserve started its two-day meeting


and is widely expected to raise interest rates when the meeting


Fed policymakers are tipped to raise interest rates by a quarter point,


and it won't surprise markets, they've already priced this in.


It's what Janet Yellen says after the meeting analysts


will scrutinise for clues about how fast rate rises


And the Fed may talk about reversing a key part of its financial crisis


recovery plan, to reduce its $1.76 trillion holding of mortgage-backed


securities - these assets were bought at the height


an improving US economy and the Trump Administration's


policy agenda of infrastructure spending and tax cuts,


We'll start our reports on a factory floor in New York


from where Michelle Fleury sent this report.


An increasingly common sight in America today. Machines making


everything from factory robots to aircraft landing gear. After a


painfully slow recovery, the sights and sounds of economic activity.


Nearly everyone who wants a job in the US has one. It has been getting


better for us since 2008 and 2009. It is the worst I have seen in my


working life. I am seeing more jobs coming back to the US. At this


factory in Brooklyn they make metal parts, mainly for the aviation


industry. Like many factories across the United States, there is lots


going on, and room to grow. We are fortunate we have a steady flow of


business now, and for the foreseeable future, we will have a


steady flow of business. Activity that has not gone unnoticed by this


woman. Federal Reserve chair Janet Yellen is among those making the


case that the world's largest economy is strong enough to


withstand higher interest rates, making the prospect of a rate hike


in March a near certainty. The economy is clearly ready for another


rate hike. Inflation is moving towards the Federal Reserve's target


of 2%, the job market is in very good shape, and financial market


conditions have eased. Back in Brooklyn, Mike D Marino sees the


prospects of higher rates as a vote of confidence in the economy. --


DiMarino. It is probably a good time to raise interest rates, although I


do not want to pay more interest. On Wall Street, investors are prepared,


even looking ahead and wondering about the pace of future hikes. If


the Federal Reserve does raise interest rates, this will be only


the third time it has done so since the global financial crisis. Almost


a decade later, it would send a signal that the US economy is


returning to some kind of normality. With me is Stephanie Hare,


independent political risk analyst. So, hearing from Michelle, gauging


how the economy is doing, those who are seeing it churn on the factory


floor, as it were, but today the rate rises seen as a given and so


the question is what is going to happen next? As you said, it is an


expected rate rise. We think there will be several more this year. And


there was one in December. It is important to take a longer view on


this. These rises are the result of the fact that we have not had many


rate rises since the financial crisis of 2008. So in one sense it


is a sign and a confirmation of the growth of the US economy, and if we


raise interest rates, it is because we are worried about things like


inflation, for instance. But there are all sorts of other problems


here, many things that can go in the mix. We are looking at how expensive


the US dollar is, how that is going to affect US exports. What will this


do for things like employment, productivity? And of course there is


a very big question about the independence of the Federal Reserve,


which President Trump has really question. The Federal Reserve chair,


Janet Yellen, will be under a lot of the sheer to decide her pace, what


she wants to do in trying to control this rate rise cadences. So she has


all but to consider, but also, her and her team at the Federal Reserve


have to figure out the impact of Trump's plans, infrastructure


spending and tax cuts, of which we still know very little about, so it


is hard to gauge? Exactly. We do not have the details you to understand


how to square that circle, and say that we are going to cut taxes and


have deregulation but we're not going to a rise in inflation. We are


also looking to see how that will trickle through India job market.


Who will benefit from this rate rise? Will it be banks, or workers?


Stephanie, thank you very much indeed. We will speak to her again


later on, but for now we are going to interrupt the business agenda. We


can take you live to South Korea, Busan. I am sure you recognise


Professor Robert Kelly with his beautiful wife and two children.


Let's listen in. ... She is frantically trying to salvage the


professionalism of the interview. Our children were not hurt.


TRANSLATOR TRANSLATES INTO KOREAN. When Maryanne speaks in the clip,


she says in Korean, "Why, ma'am?" Because she is responding in


surprise, because we normally do not treat our children the way that you


see in the clip. TRANSLATOR TRANSLATES INTO KOREAN. In the same


vein, no, I was not shoving Maryanne out of the way when I tried to move


her behind the chair. TRANSLATOR TRANSLATES INTO KOREAN. I was trying


to slide Maryanne behind the chair, because we have toys and looks in


the room. -- books. TRANSLATOR TRANSLATES INTO KOREAN. My hope was


that she would play with the looks for a few moments until the


interview ended. Books. TRANSLATOR TRANSLATES INTO


KOREAN. Yes, I was wearing pants. Somebody asked me today at lunch if


I was wearing pants. Strangers have asked me if I was wearing pants.


TRANSLATOR TRANSLATES INTO KOREAN. I chose not to stand. This is why


people think I was not wearing pants, because I chose not to stand.


I chose not to stand because I was trying to save the interview.


TRANSLATOR TRANSLATES INTO KOREAN. No, this was not staged. Any people


have asked me if we organised this, if we faked this. -- many people.


No, it was authentic. TRANSLATOR TRANSLATES INTO KOREAN. No, my wife


and I did not fight, we did not fight after the blooper. We did not


punish our children. In fact, actually, we thought that no


television network would ever call us again. TRANSLATOR TRANSLATES INTO


KOREAN. Finally, we have no serious comment about the many social


analyses about the video. TRANSLATOR TRANSLATES INTO KOREAN. We see this


simply is a very public family blooper. We do not see this in some


political or social way, or as a metaphor for anything. We have no


comment on that sort of stuff. Thank you. TRANSLATOR TRANSLATES INTO


KOREAN. OK. How should we do this? That is a press conference coming


live from Busan in South Korea. That was Professor Robert Kelly,


answering questions from the media about his interview, which I am sure


you have seen. If you have not seen it here on BBC World News you will


have seen it on social media, and he was being interviewed by my


colleague James Menendez about the impeachment of President Park in


South Korea last week. And of course his children, who you can see there,


his two children barged in on the interview and it went viral because


it was quite an unusual scenario. That is his lovely wife. They have


all spoken exclusively to our sins, here at the BBC, to tell us about


the experience. -- to us since. There was lots of comment and


discussion on social media about the children and their welfare and what


happened. As you can see, with the questions he is receiving now at the


press conference, there are questions about how it was staged or


so on. Let's listen in some more. I am not sure if we were actually say


much. Our thoughts are fairly prosaic, I guess. You have to be


flexible. This is my home office space. Normally I hope that my


children do not come in, I can get more work done. But we want our


children to feel more comfortable coming into the room and being able


to approach a father, so that means you cannot keep that strict boundary


where some rooms are off-limits. I suppose I could be more efficient if


my children never felt comfortable coming into the room. But I don't


want that has a father. So I guess that is one thing in our life, we do


not have these strict rules, right? I cannot lock my kids out of certain


rooms. My wife cannot be forced to do some things in our marriage and I


do other things. We have to mix and match. I am sorry, terribly prosaic,


but I am not sure I would have much more to add than that. TRANSLATOR


TRANSLATES INTO KOREAN. ABC news. Could you explain to us the exact


moment when you realise, this is going viral? When was it? TRANSLATOR


TRANSLATES INTO KOREAN. Two hours afterwards? Maybe? An hour? That is


it? Well, we didn't... We thought it was a disaster. I immediately called


or texted or emailed the BBC, I communicated with the BBC


immediately afterwards and I apologise to them. I said that if


they never called us back never asked to be to be on television


again, I would understand. I had assumes that this would end any


television appearances, that people would see this and assume that it


was just wildly unprofessional and nobody would ever call me again. You


know, that I would never speak on television again. I guess people


started cutting and pasting it from there DVR two or something like that


and it started taking off. I got the Twitter notifications. The BBC


called us and asked us if they could cut it and print it. We are very


grateful to them that they did so in a way that was gentle towards our


children and treated it, it was framed as kids being kids and the


parents doing the best that they can. We are very pleased that the


BBC framed it that way. So, this is my family. So, yes, within an hour,


I suppose. The BBC called us back to quit. They called us within 15 or 20


minutes. They realise pretty rapidly. We didn't know. It was just


a Skype interview in my home office, we had no idea about it. TRANSLATOR


TRANSLATES INTO KOREAN. Do you worry about your credibility


and have you considered to capitalise on this financially or in


other ways? I am a little bit wary of the fallout for my academic


credentials. We didn't want this. I mean, I guess is -- is the first


line of my obituary for a while. I hope people would read my work.


Yeah, I guess I'm a little bit concerned, what I think there is a


general sense that this sort of happened, so I guess not. If we are


still talking about this in six months I guess I would be genuinely


uncomfortable. I am surprised this is still rolling along. Day five and


we can't answer the phone. By the way, my apologies if some of you


have phoned us. We have been very under phone calls and messages and


Twitter and everything else, so if any of you have called us and we


haven't answered the phone it is because we couldn't and it is crazy


and it still is pretty hard. What was the second one? Maybe we should


stop for her. TRANSLATION IN KOREAN. It would feel a little unseemly to


try to monetise something that really was something that began with


my children. I'm a little uncomfortable with that. I haven't


really been approached seriously by anything. There have been a couple


of minor business opportunities. People saw me and said, this guy


knows something about Korea, let's give him a call. Really minor stuff.


We've really not been approached in any kind of meaningful way and I


don't know how we would use it in that way. I just see this as a


fluke. I really don't know. I hadn't thought that far ahead. TRANSLATION


IN KOREAN. I am trying to make sure that


everyone gets heard. QUESTION IN KOREAN.


You have become so famous and people want to see you. What is the reason


you are becoming such an interesting person? Me or my family? I'm not


that interesting! My guess is as I said in a statement this is the sort


of thing that a lot of working parents can relate to. Your children


interrupted in the middle of some sort of project. There is... The


question was asked at the beginning about the work- life balance. People


increasingly work from home. I Skype all the time from home for news


agencies. Earlier in the day I did CNN. I do this a lot. I sort of


create this veneer of professionalism inside my house,


right? I straighten up my house and whatever and I wear a jacket in


front of the camera. But the rest of my house looks like anyone else's. I


think the reason why this went viral is because my real life sort of


punched through the fake cover I had created for television. There I am


in my suit delivering my talking points or whatever, and then


suddenly reality burst in. That's my sense of why this is so resonant.




ask, do you have any concerns about problems or issues as a foreign


Korean couple? ANSWERS IN KOREAN. This is BBC News. As you can see we


are lies in South Korea at the moment. This is Robert Kelly's wife.


They have their little son on her lap and there are little girl,


Marion. This is the family that has gone famous after a BBC interview


last week when Professor Kelly was talking about problems in South


Korea when the president was removed from office. My colleague James


Menendez was interviewing Professor Kelly when Marion and James decided


to make their debut on global television and barged into his home


office. And I am sure you know the rest, either from seeing it on BBC


or on social media. They are now responding to lots of questions they


are receiving. As they have been saying, they've been bombarded with


calls and enquiries since the interview last week and it really


has been quite a whirlwind for them all as a family. They have done an


exclusive interview with us that you can see on our website and you can


read on internet, but Professor Kelly talking about the whirlwind


that is occurred since the interview and how he is having to respond to


all sorts of questions, not about politics, he is a political analyst,


but questions about parenting, about working from home, about all sorts


of things. Let's have a listen to what he has to say. Which is the


best microphone? Where should I speak? My children will soon be


jumping out of these chairs, so why do we pose any questions about the


interview and details about our family or what happened now while


they can stay in the room, because they really will not be able to sit


still much longer. And then if anyone wants to ask me work-related


questions, the writing, North Korea and South Korea and the impeachment,


I can do that, but that will be easier after they've exited. Can we


segment of the interview that weeklies? Family stuff first and


then lifestyle first and politics second?


This is BBC World News. More at the top of the hour, from me and Sally.


If you are with BBC One you will join Breakfast.


Things are going to turn more unsettled as we head towards the end


on across the pond at the moment.


A potent winter storm, which has already dumped half


a metre of snow across parts of the north-east USA,