Transcripts For BBCNEWS BBC Business Live 20170424 : vimarsa

Transcripts For BBCNEWS BBC Business Live 20170424

Strong, especially in paris. And well be getting the inside track on a business thats been able to draw on the artistic talents of its founder. Were going to be speaking to co founder and Creative Director of wrendale designs. Today we want to know, as uk politicians consider offering a price cap on energy bills, we want to know what purchases would you like to see a price cap on . Maybe your daily cup of coffee . Let us know. Just use the hashtag bbcbizlive. Welcome to the programme. Centrist Emmanuel Macron has gone through to the second round of the french election, where he will face far right leader Marine Le Pen. Mr macron, a former banker, is seen as a political outsider, having never run an Election Campaign before. The euro rose by 2 on the news its highest level in five months before giving up some ground this morning. Investors had worried that far leftjean Luc Melenchon would beat mr macron, giving voters a choice between two eurosceptic candidates. Macron is now considered to be the favorite to win the second round ballot and markets have warmed to his pledge to lower corporate taxes while lightening the Administrative Burden on firms. However, economic problems and challenges remain for whoever walks into the elysee palace. Top of the list, frances Unemployment Rate is running at around 10 , which is more than twice the rate of the uk and germany. So, how have Global Markets reacted to the results . Theo leggett is at Berenberg Bank in the city of london. So the euro is soaring and now Share Markets in europe are soaring too . Absolutely. The currency is up, and so are absolutely. The currency is up, and so are the Share Markets, and its easy to see why. This isnt about what has happened in the first round of the president ial election as opposed to what has not happened. We now know we will not see a second round run off between the far right candidate Marine Le Pen of the National Front and jean Luc Melenchon, the hard left candidate who models his economic policies on those of people like the later venezuelan leader hugo chavez. For business people, that was seen as the nightmare scenario, two eurosceptic candidates, one of whom Wa Nted Eurosceptic candidates, one of whom wanted to take france out of the euro, and a candidate who favoured extremely high taxation for the rich and a lot of State Intervention in industry. That hasnt happened. The run off will be between Emmanuel Macron, the Centrist Reformist candidate, and Marine Le Pen. In that scenario, nearly every poll puts Emmanuel Macron, and you can see what that has done on the markets. This is the paris stock exchange. As you can see, at the open was up exchange. As you can see, at the open was up more exchange. As you can see, at the open was up more than 5 . It is telling off a bit, but nevertheless, thatis telling off a bit, but nevertheless, that is a relief rally. Banking stocks are doing well. That it because the risk premium on bonds is going down, so bond yields are going to go up. Things are more settled. But lets not forget that there are two weeks to go before the second round of the president ial election and although Emmanuel Macron does look like the clear winner according to polls taken today, you can never guarantee anything. And that is the point. Once this relief rally tails off and people think ahead to may the 7th, people may wonder what a new government may look like. Even if Emmanuel Macron gets the job, it may be an Unusual Coalition in france. Absolutely. You have to remember where Emmanuel Macron has come from. His movement was only created about a year ago, and it is a coalition of different interests. It doesnt have a formal Party Structure and in a few weeks time, france will go to the polls again for parliamentary elections. Emmanuel macron, if he is president , will have to work with the winner of that election. He will have to work with a Prime Minister to get his policies enacted. He does have a certain level of endorsement from the republicans and from the more Mainstream Socialists at the moment, but once he is in power and once they are forming a parliament, if he doesnt manage to get enough of his own support, he may find it difficult to enact the platform of hope he has been setting out over the last year. He may find that the reality of life as president is different from the rhetoric of the campaign. Theo, thank you very much. Lets show you paris right now, a beautiful morning as a new day begins. Everyone is of course now looking ahead to make the seventh and the two candidates that remain. We will have more on that later on Business Live. Some of the news now. Luxury shoemakerjimmy choo has put itself up for sale, announcing on monday that it is seeking offers. The company, which floated in london in october 2014, has seen sales growth slow, reporting a 2 rise last year compared to 7 in 2015 and 1296 last year compared to 7 in 2015 and 12 in 2014. Hsbc recently downgradedjimmy 12 in 2014. Hsbc recently downgraded jimmy choo to hold from help to buy as it felt both sales and profits had fallen short. But medical devices and health care giant philips has posted a big jump in First Quarter profits after spinning off its lighting business last year. Profits soared to 280 million for the three months to the end of march compared with around 40 million the same time last year. Corp profits were up by 18 higher than expected, 480 million. Sales we re than expected, 480 million. Sales were up 2 . Us Medical Equipment supplier Becton Dickinson is to acquire a health ca re dickinson is to acquire a Health Care Equipment manufacturer. The Acquisition Costs will be paid roughly half in cash and debt and the other half by issuing new shares. It comes two years after Becton Dickinson acquired another company for 12 billion. Some interesting news came out of china today. Nearly 30 steel firms that have had their Production Licences revoked for not meeting industry requirements. Robin brant is in beijing. What we have here is evidence of fresh consolidation within chinas mammoth Steel Industry, and also evidence of a further clamp down by the authorities on those firms that refuse to comply with emergency measures when the pollution gets bad in the north of the country, where the Steel Industry is centred. Let me give you a few statistics that show you how big the Steel Industry is in china. China is trying to move 60 , the majority of its production base, into the hands of ten much bigger companies. That was supposed to happen two years ago, but has been pushed back to 2025. Historically, the industry here has been about small Scale Production companies. Around 300 of some 630 firms have been closed in recent yea rs, firms have been closed in recent years, so firms have been closed in recent years, so that shows you how serious china is about consolidating the industry. It is trying to move 100 Million Tonnes of production every year from what is currently churned out. This all comes amidst further evidence from the us that donald trump is concerned about steel dumping and anti competitive measures. The president announced a new probe on thursday. But the us and eu have concerns about chinas mammoth Steel Industry. Thank you, robin. Lets look at the markets. Investors are cheering the news that Emmanuel Macron came out ahead in the first round of frances president ial election. The euro is strengthening against the yen. That makes exports cheaper to foreign buyers. Lets show you the european markets. Really interesting, particularly in paris. Investors are clearly pleased with the outcome of the french poll. The euro reached its highest level against the dollar for five months. That its highest level against the Dollar Forfive months. That positive sentiment can also be seen in the bond market. The price of french bonds increased, suggesting that investors have an appetite for french Government Debt. That lowers the yield and has narrowed the gap between french bonds and german bonds. Here is michelle fleury. Earning season continues this week. Three companies will all be reporting. T mobile is the number three american wireless carrier. It managed to attract new customers and also managed to secure a book of broadcast airwaves in a government auction, Making T Mobile some stiff competition. Meanwhile, halliburton is the worlds number two Oilfield Services provider and while oil prices are picking up, the cost of Reactivating Will Riggs and equipment is putting pressure on earnings. Finally, starwars and Disney Princess dolls gave hasbro a big boost this time last year. Comparatively, though, it will be ha rd comparatively, though, it will be hard for the toymaker to meet and beat the numbers from a year ago. That was michelle, giving us a heads up on what is ahead in the us. We have the head of multi asset is at Royal London Asset management with us. Royal london Asset Management with us. Trevor, are Royal London Asset management with us. Trevor, are you Royal London Asset management with us. Trevor, are you with the Share Markets and the euro and cheering the outcome of sundays election in france . It is a positive outcome. One way to look at is that 40 of voters voted for somebody who was anti euro, so that was a bullet missed the markets, because if france were seriously considering leaving the euro, there would be all sorts of financial stress. You might say Marine Le Pen is through to the second round and she is one of these people who also thinks the euro is not a good idea, but the polls have mac run on 65 versus her 35 , and the polls were pretty accurate in the polls were pretty accurate in the first round, so the markets are taking the good news early. People feel there is a more centrist candidate. So it is notjust the equities market, it is the bonds and the euro reflecting that as well. Equities market, it is the bonds and the euro reflecting that as weltm is. You saw those three areas of stress, which are resolved at the moment. There will be some nervousness in the next few weeks ahead of the next round, but most of the good news has been factored in early. This is probably the first of several summer stories. We are heading into the summer period, when the Economic Activity around the world tends to be quieter and the markets are more fragile. I think we will see a focus on china and the potential us shutdown is the next stories. Those stories are in the papers and cover will return for that later. More still to come. We we re that later. More still to come. We were here from the co founder of a company who had the inspiration for Award Winning Greeting Cards while Dudley Laugher home with a newborn. You with Business Live from bbc news. The price of property in the uk continues to rise. Online housing Portal Rightmove says that the prices of homes coming to the market is up 1. 1 on last month. But the annual rise of 2. 2 is the lowest its been forfour years so are prices starting to turn . Sam mitchell is from rightmove. Tell us more about what has been going on. What can we read from Between The Lines . It seems to be good news for property markets. Obviously, house prices have increased and are up 2 annually, the highest rises we have ever seen. But as you say, house prices are rising but at lower levels than we would expect at this time of year. So that is one way of looking at the health of the housing market. But what really matters is transaction levels. At rightmove, we can see the point where houses are agreed as opposed to when transactions are being done, and we can see that sales are agreed at the highest level we have seen for over a decade, so it is good news for a healthy housing market. But still quite tough for those trying to get on the property ladder. Yes, and every month we look at the numbers and it has been difficult for First Time Buyers for a long time. But prices have increased 6. 5 in the First Time Buyer sector, which shows the First Time Buyers have been buying. We have also seen the impact of the 3 stamp duty for investors, which has pulled investors, which has pulled investors out of the property market. They typically by one bedroom properties, the same as First Time Buyers, so they are getting out of the way and the market has freed up space for First Time Buyers, who are buying in such numbers that prices are starting to rise again. More detail about that on the Business Live page. A lot of other stories that we cant fit in this programme. We are always running out of time here. Goals in merger talks. It is in take over talks with rival, power league. You can read more about that on the live page. Youre watching Business Live. Our top story the final round of the french president ial election will be between the centrist politician, Emmanuel Macron, and the far right National Front leader, Marine Le Pen. That vote will take place in a fortnight. A quick look at how markets are faring. In france, it is up, up and away, up nearly 3. 5 . Yes, that positive sentiment, investors going back into risk mode and also being seen in the strength of the euro against the dollar and the yen and also yields on french Government Debt, french bonds coming down and narrowing the debt. Now lets get the inside track from a woman with quite an interesting career journey. Hanna dale is a Zoology Graduate who became an Investment Banker. But her true calling lay elsewhere, on a crowded Kitchen Table she began drawing and painting, initially to have something to do after the birth of her first child. Someone suggested she try her hand at Greeting Cards as her depictions of animals were so good. The business now sells cards, stationery and gifts all over the world. Hannah dale is co founder and Creative Director of wrendale designs. She has littered across the table her goods. We have got Greeting Cards, diaries and cushions, it is kind of more offing into all sorts of things, but im fascinated by studying zoology and becoming an Investment Banker and now running your own company. Talk us through that journey . Yes, i never really imagined that this is where it would end up, but in some strange way having painting animals and having the business background from work at the business background from work at the Bank Actually both have contributed to having a successful business. I think the Card Business really started out as something, a necessity really. I was in lincolnshire. I had a young family. I was qualified as a stockbroker. This wasnt a lot of call for a stockbroker in lincolnshire. I tried a few things. I was really struggling. You were what some people might call a mumprener. But it is something that many have done, career women who have had children, who cant see their way back into their previousjob, starting who cant see their way back into their previous job, starting a company . Absolutely, yes. For me it felt like the only option to have something that i could fit around the family that was also going to be challenging and exciting. The family that was also going to be challenging and excitinglj the family that was also going to be challenging and exciting. I wonder if there are any other mumpreners out there, whats the one bit of advice you wish you had been given . Just really go for it is the best advice. It

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