this is business live from bbc news with samantha simmonds and tim willcox. all systems go — the world bank says the global economy is set accelerate this year. but will everyone feel the benefit? live from london, that's our top story on wednesday, 10th january. it's being predicted the global economy will operate at close to full potential for the first time since the financial crisis of 2008. we'll assess what impact that will have on real prosperity. also in the programme: airbus seals a huge deal with china to supply 184jets. we'll assess what this means for the company. here is how the markets are looking. today we're bringing the sparkle to business live we'll be talking swarovski crystals

with the great, great granddaughter of the company's founder. as always, do get in touch with your thoughts on any of the stories we're covering the show. just use the #bbcbizlive. hello and welcome to business live. now, after a decade of hardship and austerity, things are looking up. the world bank says global economic growth is likely to strengthen this year and that it will be the first year and that it will be the first year since the 2008 crisis when the world will be operating close to its full potential. 0verall global economic growth is expected to edge up economic growth is expected to edge up to 3.1%. that's after a much stronger than expected 2017. advanced economies will be around 2.296. advanced economies will be around 2.2%. emerging economies are likely to grow by 4.5%. generally this is because of increased investment in, improved confidence and a rebound in commodity prices. this last one is

especially important for developing economies. well the world bank says the focus should turn to the policies needed to boost potential growth and living standards. dean turner is an economist at ubs wealth management. thank you very much forjoining us on the programme. any surprises here, do we think or not? the overall message in terms of global growth holding up at levels similar to what we saw last year, there has been an upgrade, but there is not much change. it is not a surprise, but it is an encouraging story. in terms of inflation, looking at the china figures? in terms of inflation, clearly we have been through a period of extraordinary low inflation. it seems that as we are moving into 2018 the process of normalisation will continue. in terms of what we have seen in china today, i mean, the numbers are pretty much in line with what the markets were expecting. 196, 1.596? numbers around 1.8% for cpi in china which is what the markets was expecting, but it is important to remember with inflation in china, it

is driven by housing costs and food price inflation so it can be volatile in the short—term.” price inflation so it can be volatile in the short-term. i was talking to the author of the report earlier and she was saying that it is cyclical and this is to be expected and it is about time really, but also to be expected will bea really, but also to be expected will be a downturn, she said, what needs to happen now, everyone needs to manage their economy to say make sure that doesn't happen and learn the lessons of the past, what does the lessons of the past, what does the global economy need to do to keep this going? i think what we have seen so far in this cycle, we have seen so far in this cycle, we have seen so far in this cycle, we have seen the beginning of monetary policy, normalisation, we are likely to see further normalisation take place this year within europe. we are likely to see the quantitative easing programme slowing, but perhaps coming to an end this year as well. the message to take away from this is we are entering a period of normality, normal identitiesation and that can only be a good thing. and what about who is making the money, who is getting the benefits of the growth, is it the

richer getting richer? one of the bigger economies that we have seen throughout this whole cycle is what is happening to real wage growth. it is happening to real wage growth. it is not just is happening to real wage growth. it is notjust in the uk, but globally and we have got very tight labour markets, not just in and we have got very tight labour markets, notjust in the uk, but the us as well and there are signs that we're getting tight labour markets in the eurozone as well. we're not saying wage growth come through yet and that's going to be the key thing to focus on this year and that's going to be the key thing that im proves going to be the key thing that improves living standards. all right, dean good to see you as ever, thank you for coming in, thank you. let's take a look at some of the other stories making the news. french officials say china has placed an order for a 184 airbus a320 airliners on the final day of president emmanuel macron‘s visit to the country. final details of the deal are in the process of being worked out with the chinese authorities. boeing says it delivered a record 763 jetliners last year — which means it's likely to retain its title as the world's biggest plane—maker. the firm says it also received more than 900 net new aircraft orders last

year worth $135 billion. shares in kodak soared nearly 120% after it revealed plans to mint its own crypto—currency. the us firm says it will be working with wenn media group to launch the kodak coin. it has also given details of a plan to install rows of bitcoin mining rigs at its headquarters in the us. apple has announced that its icloud services in mainland china will be operated by chinese company gcbd, from next month. it says the partnership will allow apple to "improve the speed and reliability" of icloud services. but there are concerns that the step will give beijing more opportunity to monitor its citizens and others living in the country. 0ur china correspondent, robin brant, joins us from shanghai. robin, what can you tell us? well, it's another sign of how

important china is to apple's strategy. going forward as it tries to strengthen even further. we had confirmation today of an announcement in the middle of last year that apple's icloud services in mainland china will be essentially handed over to a company linked to the government down in the south of china and this company gcbd will run apple's icloud services in china and that means there is going to be new terms and conditions. in an e—mail sent out to icloud users in china, those who have chinese accounts, it warned them that they should look at the terms and conditions and said photographs, documents and any back—ups will be subject to different terms and conditions by the end of february and it said anyone who might not be happy with that, could deactivate their account 01’ that, could deactivate their account or change it to a different country. this is just the latest sign of apple having to comply, it says,

with chinese regulations and the key regulation here is that any firm wishing to provide cloud computing services must have the servers based in china and they will be subject to chinese laws and rules, laws and rules which some critics say are different to regulations say in the european union or in the united states. what do we know about gcbd? well, gcbd is a partnership, apple describes. it is owned by the government. it is a place that wants to become the big data centre of this country, but the issue for many critics this is an entighty of the chinese government, the communist party as well and they think it is a particularly sinister turn of events. robin, thanks. another record close in the us, for the dow, s&p and nasdaq. but that hasn't carried through to everywhere in asia where many markets are slightly down except for hong kong which has risen slightly, helped by energy shares climbing with another surge in oil prices.

let's look at the european markets, the ftse up slightly. the others down. samira hussain has the details about what's ahead on wall street today. on wednesday the us labour department will release export and import prices for december. now, these measures show how prices of a market basket of goods in international trade change from one month to the next. now, these numbers are used to predict possible future inflation, to set fiscal and monetary policy, to measure exchange rates, forecast futures prices and, of course, to negotiate trade contracts. now, the import prices are expected to have increase by 0.5% in the month after a rise of 0.7% in november. export prices are likely to have risen 0.3% in december, compared to a 0.5% rise in the month before. home—builder, lennar, will report higher profits and revenue for the last three months. the improving job market has been

lifting demand for housing and investors will be looking for comments on the impact of changes in tax laws on home sales. nandini ramakrishnan is global market strategist atjp morgan asset management. thank you very much for being here. so you want to talk about unemployment in the eurozone first of all? yes, it was released yesterday with a significant fall. if you look at it on the month it fell 08.1% -- 0.1%. it is the largest fall in unemployment over the past 12 months in the eurozone. that means in real terms that people are employed more than ever in the eurozone. good for consumers, good for confidence and retail sales, the more people are in work, the better the economy does. that's one of the

reasons we like the eurozone. something good for france on the closing day of that macron trip to china? the airbus deal. 184? a lot of money on the table there if it gets finalised. a big, big symbolic thing as well for france because the macron presidency was based on making france a leader in the business world and making it more efficient for global business and if the deal goes through with china, the deal goes through with china, the leading economic fire house of the leading economic fire house of the world then that could be big. that gift of a horse has really paid off. it could be. oil prices sitting ata off. it could be. oil prices sitting at a three year high? first, we have to remember that the production has been cut. so, the reason why the oil price fell in the past few years because the producers were pumping oil into the markets and the price was pushed down by that over supply. now we have the producers pulling back a bit, we are seeing a higher oil price and some of the highest levels we have seen in the past few yea rs levels we have seen in the past few years and while that's important for just the oil price, it is important

for the countries and economies that export that. they're in a better position because they can get more money off the sales, but the people who buy that. so it will be interesting to watch. what do you make of this world bank report about economic growth. i think it is emphasising what we have been saying for a while, growth is looking good around the world for the first time since the economic crisis, we are seeing every economy in the globe growing and that's huge. in 2009 if you look at the map, most economies we re you look at the map, most economies were shrinking. good to have you on. thank you very much. still to come, we'll be joined by nadja swarovski, the first ever woman to be appointed to the executive board of swarovski. you're with business live from bbc news. the uk's second largest supermarket, sainsbury‘s, has raised its profit guidance after record sales during christmas week.

sainsbury‘s said it now expected annual profits to be up to £20 million better than expected despite supermarkets facing a "challenging" market. the chain sold 1.1% more in the 15 weeks to 6th january, with grocery sales up 2.3%. joining us now is neil wilson, senior market analyst, at etx capital. welcome to you. so how have they managed to do it? i think sainsbury‘s have enjoyed the uplift from the trend that we saw in december. we saw the figures showing that britons spent £1 billion over christmas. whilst the like for like sales growth was decent at 1.1% and ahead of expectation it is lagging competitors. we saw morrisons at 2.8% and we have seen the german discounters aldi and lidl, they saw sales increase by 15%. 16% over december, so whilst the top end

growth looks decent, there is still the relative values maybe not there. but food inflation presumably playing into the figures in a significant way as well. that's right. i think what we haven't seen todayis right. i think what we haven't seen today is the details on margins and we know in the first—half, the margins at intoes collapsed from 2.596 margins at intoes collapsed from 2.5% to below 2% and i think that's really something that needs to be addressed. clearly, there is a lot of pressure with food inflation as you say, and that does flatten the top line sales. it is easy to generate higher sales when the prices are going up, but retail is all about margins and if intoes isn't improving its margins it is not doing as well as the top line figures suggest. neil, thank you very much indeed forjoining us. thank you. govia thameslink franchise is not providing value for money. the

largest rail franchise has not provided value for money. passengers have suffered the worst rail disruption in the uk according to this highly critical report. it found the services had been the worst on the network since govia thameslink took over the route. the department for transport said the disruption caused a shortage of train crews and blamed not for having adequate staffing. it had too few drivers when it was awarded the franchise in the first place. you're watching business live. our top story: the world bank says it expects the global economy to pick up speed this year and to operate at close to full potential for the first time in a decade. for over a century, the swarovski name has been synonymous with luxury crystals — the austrian firm supplied crystals for queen victoria's dresses. it was founded by daniel swarovski in 1885.

his great, great grand daughter nadja swarovski made history in 2011, by becoming the first woman to be appointed to the executive board. she oversees the brand strategy of swarovski's $3.8bn global business, working with the fashion industry and designers to keep crystals contemporary. nadja swarovski joins us now. i went to a galleryjust before christmas and i saw some art using the crystals, you are branching out. it isa the crystals, you are branching out. it is a multifaceted product and i was proud to see it used in such a beautiful way. it can go into a different direction but this is what we are trying to do, to steer designers into the right direction in terms of the use of crystal. take us in terms of the use of crystal. take us back, in its heyday it was of course used by the fashion houses of the day and then it fell into decline in terms of its usage there

and became really well—known for crystal animals in the 70s. what happened, how did that happen and how did you resurrect it so successfully? they heyday was the late 40s and 50s when we saw style icons experimenting with fashion and different materials within their fashion and i have to say it was my grandfather who work very closely with them. i heard stories by him of working with these people and eventually when i found myself joining the company you are right it was all about the crystal animals which was wonderful because i appreciate how hard it is to make those crystals but i felt the heritage was not properly reflected. soi heritage was not properly reflected. so i think the decline happened because perhaps there was the inappropriate use of crystal and as mentioned it's so important to implement the crystal in the right creative way to find the right

creative way to find the right creative expression in order to be beautiful. how do you contain that and control something like that without actually restricting the obvious growth you looking for? you try to lead with a good example and the way we brought ourselves back to the way we brought ourselves back to the forefront of fashion was by once again teaming up with people like alexander mcqueen who brought us back into the rightful position. you use people like that to demonstrate the creative merit of crystal and hopefully the industry follows and that was the case with alexander mcqueen. 0ur challenge is to continue to find innovative designers that inspire the rest of the industry, whether it's fashion, jewellery, architecture or art. you have five quite the path in terms of running the company, when you took over you had challenges within the company itself to drag it in the direction he wanted to go. company itself to drag it in the direction he wanted to gom company itself to drag it in the direction he wanted to go. it was a challenge but if your last name is the name of the company you certainly feel a strong motivation

to position the product in its rightful way. i have to say it's all has been very inspirational to see how the market responded, notjust creatively but also financially and we see it very often when we have standing initiatives that the financial rewards follow. therefore it's important for us to demonstrate a very good position creatively. tell us about your background, did you go straight in? absently not, my father was in charge for 44 years as was my grandfather and every conversation was the business so i thought i don't want to work in the business. it wasn't until i studied art history and find my path in fashion i actually knew about the company andi fashion i actually knew about the company and i realised what i could contribute. the founding principles of your great, great, great grandfather, presumably you have followed those to keep the continuity going. absolutely, i grew

up continuity going. absolutely, i grew up in an environment of hard—working people passionate about what they have created, my great, great grandfather was the first to use electricity to power his machines, eventually moving to austria were used hydro electricity in 1895 which was so cutting edge. that is what made the company as big as it was. this is the challenge today, how do we keep up the innovation, what do we keep up the innovation, what do we do and how do we implement our technology to create a product which is totally irrelevant to the consumer and in powers the consumer? tell us about that, you have created this crystal mesh? yes, it was another material, metal on top of which we applied the crystals, so it's like a fabric, it's very fluid, you can use it in jewellery and clothing. i long does it take to make? it is a very tedious process but ina make? it is a very tedious process

but in a nutshell, how long does it crystal mesh? we melt the crystal, we melt the glass in tonnes and then it goes into smaller moulds and they are cut, then eventually they are sorted out by quality, so it's a long process and very tedious and intricate. really good to talk to you, i actually wrapped up one of your bracelets last night to give to asa your bracelets last night to give to as a gift to somebody. your bracelets last night to give to as a gift to somebodylj your bracelets last night to give to as a gift to somebody. i really hope that person feels empowered. thank you for coming in. now, they may be out of the reach of you and i — but a report out today suggests that the market for superyachts is booming. one particular winner in the global race to attract billionaire dollars? the british yachting industry. for more, our business correspondent kim gittleson is at the london boat show. i bet there are some beauties there. it's quite astounding, i am

surrounded by some of the most expensive boats and yachts on the planet. anything less than 24 metres, around 80 feet is just a yacht, not a superyacht these days. 0ne yacht, not a superyacht these days. one of the biggest benefit trees has been the british board and yacht industry, report this morning suggesting cells in the past year have increased by 3.4% to £3.1 billion or around $4.2 billion. 0ne reason is the weaker pound as a result of brexit making a lot of the boats here more to international buyers. i will be here all day looking at over 300 exhibitors to try to figure out what you get if you buy one of those yachts or boats. stay tuned for more. thank you very much. i'm not sure what the cheapest one is. i don't think it would be in either of our price ranges! nandini is back to look at the papers. we have got a story, i am tried to

get it on the website, it's about 5p plastic bags at the moment it's only big shops that do that but they might extend it to corner shops and smaller operations. it's interesting, the government says the 5p charge on bags has reduced usage by 90%. 5p charge on bags has reduced usage by 9096. it's been huge. in such a short beaded of time. by 9096. it's been huge. in such a short beaded of timelj by 9096. it's been huge. in such a short beaded of time. i think that is the key, as an economist you'd think by p is not as much as what you are buying but it's the extra cost which deters people from wanting it, so i think the logic of it applies to more stores, different bags, there could be success is no long term. is there any concern about where all this money goes?m does not seem it's a huge part of this story. i think the general senseisit this story. i think the general sense is it is to reduce waste and be better for the environment and sense is it is to reduce waste and be betterfor the environment and i think broadly you could say most people would be on board with that.

there is a huge backlash about all this waste, we did a story about copy this waste, we did a story about co py cu ps this waste, we did a story about copy cups the other day but i think people are generally on board. everyone wants to do their part. it's simple if you don't want to play on a plastic bag take your own. 0r easy cloth bag. 0r play on a plastic bag take your own. 0r easy cloth bag. or a trolley. toyota and mazda picking alabama for a big investment, 1.6 billion. they are thinking about starting a new venture in the us state of alabama, it would produce 200,000 vehicles per year which is huge. definitely a big thing for a country like the us, we think about with the uk and europe as well, not known for manufacturing, it's a dying or a weekend part of the economic space. where does this play into donald

trump's views about japanese cars and tariffs? i think the fact it's been made in america and manufactured in america and will employ 4000 people in a state which is not always at the top of economic output lists could be very good for the campaign promises as well as just bringing up different parts of the us economy to catch up with other parts. bad news for north carolina, interesting in terms of what the states could offer in terms of supply chains. yes a lot of competition in american states but on the whole it looks like it would be good for the us and certainly symbolises the sense of manufacturing and global trade happening more and more. do you think big companies do want to play ball with donald trump, they are listening to what he said? yes, political or maybe social use a site he is the leader of one of the largest economies in the world which has a lot of manufacturing power. as

well as global presence. people care about what america does and makes. well as global presence. people care about what america does and makeslj was wondering if this would change any domicile line of companies bearing in mind the tax reforms which have gone through. that something we are looking at, which could boost a lot of american companies and has been one of the reasons we like american equities, it's a complicated tax loss we have to see how it affects various companies, if they are domiciled in america are not, it should be an interesting year for companies. and the best option is to be stateless and not pay anything anywhere! good to see you, thank you. goodbye for now. after the last couple of days when

it's been rather cloudy and mark gave many of us today there is more promising the forecast of a bit of sunshine developing particularly across western parts of the uk but it's towards the east where this morning we've got this weather front which is bringing lots of cloud, outbreaks of rain all the way from scotla nd outbreaks of rain all the way from scotland down to the south—east of england but you notice clearer skies towards the west which will give the sunshine. sunshine developing cross wells in south—west england, northern ireland after patchy fog, its eastern parts were the rain and drizzle will continue into the afternoon and it will be fairly slow to clear away, quite stubborn to clear from scotland completely, jared abbrederis sure, the northern isles it will stay cloudy with drizzle. sunshine in western scotland, light winds, sunshine for northern ireland and north—west england and across wales but around lincolnshire towards norfolk and suspect it will stay a little bit damp into the afternoon. sunshine

coming through towards the london area and the south east but also more towards the south west but with light winds and the sunshine, temperatures 8—9dc. 0vernight tonight the cloud and rain were cringing you across the far east, further west fog will form into wednesday morning and there will be a few pockets of frost around on thursday morning as well. temperatures close to freezing in many places but i think fog will be the biggest issue not only on thursday morning but that could be friday morning as well there could be travel disruption because it will be travel disruption because it will be quite dense and places, quite patchy, you could be driving along and it's clear and then next minute you're running into the fog. it will be slow to clear, might take into the afternoon that some brighter weather developing across south—west england, wales, ireland and scotland, further east it will stay cloudy into the afternoon and it will feel just a bit

cloudy into the afternoon and it will feeljust a bit more chilli tomorrow converted today. not a great deal of change in the bigger picture but we do have this weather front which will move its way towards the west during friday and that will bring rain in northern ireland eventually into the south west of england as well, misty and murky start to the day on friday, cloud sticking around for much of the day, about 5—7dc. goodbye. hello. it's wednesday, it's 9am, i'm victoria derbyshire, welcome to the programme. these men have all taken spice in manchester — charities tell us a new, more potent strain of the synthetic form of cannabis is having a devastating impact on drug users. he was resuscitated. he went to a&e and three hours later he was back in town buying more spice. that will give you an indication of how

serious the addiction is. that exclusive report in 15 minutes time. if you have used spice or are affected by people who use it, tell us affected by people who use it, tell us what difference the two year ban has made? does the law do enough to protect free speech at university? we will hear from both sides. people are saying will i feel