tv World Business Report BBC News July 7, 2017 5:30am-5:46am BST
this is bbc world news, the headlines. tight security is in place in the german city of hamburg for the start of the 620 summit after a night of violent clashes between police and anti—capitalist protesters. police say more than 70 officers were injured. president trump and president putin will hold their first face—to—face talks today on the sidelines of the summit. world leaders will discuss a wide range of issues, including trade, climate change and the threat posed by north korea. mexican authorities say 28 inmates have been killed in a fight in a prison in the coastal city of acapulco. three more were wounded. security officials in guerrero state say the fight was between rival gangs. talks on the reunification of cyprus have ended without agreement. the conference in switzerland was adjourned by the un secretary—general antonio guterres. greek and turkish cypriot leaders were negotiating to end the partition of the island. now it's time for world business report.
reversing the exodus — pressure grows on the g20 to tackle the migration crisis, but is more investment in africa the answer? plus, making motorists out of millennials — how toyota plans to sell cars to the uber generation welcome to world business report. i'm rachel horne. also coming up — never mind the exploding phones, samsung says it's on track for record quarterly profits. but first, we start in hamburg, germany where, as you've been hearing, leaders of the g20 group of the world's top economies are gathering. high on the agenda, of course, concerns over free trade
and the environment, after president trump set the us on a more protectionist path and pledged to pull out of the paris climate change agreement. but for europe, equally pressing is the migration crisis. record numbers of migrants from sub—saharan africa have been heading into the eu — increasingly across the mediterranean via italy, as this map shows. the final destination for many is germany, where migration—related costs are projected to top $100 billion by 2020. chancellor angela merkel has made it clear that she thinks other countries must shoulder more of the burden. last year alone, germany saw almost 750,000 people apply for asylum. there are fears that climate change and poverty could drive millions more africans, in particular, to make the dangerous journey to europe. look at these numbers and it's not hard to see why. according to the world bank, the average income in sub—saharan africa last year was $1,504. in the eu, it was $33,248. on thursday the charity
amnesty international warned the human cost of migration is set to get worse. 2016 was the deadliest year on record on the central mediterranean route. 2017 has already seen a loss of life of over 2,000 and the death rate at the moment is even higher than the one we saw in 2016. we are at almost three people in every 100 losing their life in the mediterranean, trying to reach safety or a better life in europe. also on thursday — the head of the world bank, jim yong kim, joined france's president macron in pledging much more investment in africa to stem the flow of migration. 0ur largest investments will go into africa. we will be putting in a total of over $50 billion over the next three years into africa and we will work very closely with president macron.
on many different levels, we need to invest in human beings but we also have to invest in creating a kind of private sector in these countries that will create the jobs that young people need so badly. that was the head of the world bank. gervais williams is managing director at miton asset management. thank you forjoining us this morning. 0bviously, thank you forjoining us this morning. obviously, the migration crisis is a huge issue. what do you think the g20 can do? crisis is a huge issue. what do you think the 620 can do? it's actually quite united on certain areas like the korean peninsula and terrorism but actually, they're having quite a lot of difficulty with economic policy. it's been fairly consensual for 20 years but is now reaching a time where there are differences coming through. we heard from the
world bank and president macron saying that one way to deal with this migration crisis would be more investment in africa, trying to increase productivity and wages. do you think it would help? it would do. there has been a lack of productivity around the world for ten yea rs productivity around the world for ten years and this is what is leading the change in attitude, they are moving away from the consensus previously to bring in people like trump and others who have a different attitude but going forward you are right, the opportunities for africa to improve productivity and strike will fare relations there. 0ne counter argument is any initial investment in wages or productivity would the default give people the means to make the journey to europe. of course that's true but actually if you get economic prosperity it also attracts more people to actually enter the workforce and stay at home so rising productivity, even low levels, drives wealth and
it brings a nation together. it's not just financials, climate it brings a nation together. it's notjust financials, climate change will also be a major issue. that's also a concern for the g20, president trump is pulling out of the paris climate agreement. what can they do? climate change will come through the respective because the changes we make point make any difference for another ten or 20 yea rs difference for another ten or 20 years there is little we can do about it in the short term and it would be a driver of economic migration but going forward particularly if we can get more product is, it will address it and give us more capital to invest with the climate change issues. the get there from angela merkel, she believes by 2020 the cost of migrant crisis to germany alone will be more than $100 million. is it me more countries should shoulder that? do you think she will be able to get agreement on what countries can help germany out? even in europe there is differences coming through with some of the italians asking for help
themselves so it will be difficult to get any consensus on that the foot can get more economic growth and productivity, it helps everyone. thank you very much for your time. we are also in the us where japanese car giant toyota is opening a new, billion—dollar headquarters in dallas texas. it is betting on young people in their 20s and early 30s — so—called ‘millennials‘ — to keep the car industry booming. that's despite fears that they are more likely to take an uber than buy a car... as michelle flurly reports. to the's new headquarters in texas. 12 different restaurants, fitness centre, climbing wall, the ‘s offices. it's all what you would expect today in a modern campus. on the inside out, toyota is targeting generation y. those born between the early 80s and 90s. the group better known as millennial is. there was a bully a few years ago that gen y was not interested in purchasing cards.
they were interested in ridesharing and carsharing. they were interested in ridesharing and car sharing. that's not necessarily the case today. 1996 of toyota's american sales last year was to millenials. if you look at small luxury suv is, a lot of that is being driven by gen y. it's easy to see why carmakers are going after this group. gen y makes up the fastest—growing segment of new—car buyers in the united states. it is expected to make up 40% of the market by 2020. ok. bing bong. tailoring its ad campaign to appeal to this group. my feet. do the youtube star bad lip reader to double over its commercials, seeking to capture the buying power of the group slow to recover from the recession. bing bong. especially in
the us where they were saddled with large college debt, where they came out of college and they had jobs but not necessarily careers, they have i'iow not necessarily careers, they have now advanced beyond that, their desire to purchase cars is now coming back. for toyota and its new campus, moving with the times means appealing to a new generation. to asia now and samsung electronics seems to have recovered from both its exploding smartphone crisis and it's corporate corruption scandal. the south korean tech giant says it made record quarterly profits in the past three months. earnings between april and june soared 72% to $12.11 billion — much more than analysts were expecting. sharanjit leyl is following this for us in singapore. how have they done that? well, that's right, extraordinary but despite theirfair share that's right, extraordinary but despite their fair share of scandals, they are still project in they will make money and what is
really extraordinary if they are project in that they will make more money in their second—quarter and apple and it's the first and they have overtaken apple in terms of quarterly profits and they reckon they will make $12 billion in the three months to june, they will make $12 billion in the three months tojune, a whopping 72% rise from the previous year. all of it is due to surging global demand for memory chips. some research firms predict samsung is set to overta ke firms predict samsung is set to overtake intel by the sales this year, benefiting from rising demand and prices for memory chips which of course i used in smart phones and computers. despite the scandal around the recall of galaxy note 7 last year, because of those exploding batteries which incidentally cost them billions in profits, there was also strong sales of smartphones, would you believe, including the new flagship galaxy $8. including the new flagship galaxy s8. there reputation was damaged and
they lost their position as the world ‘s biggest smartphone maker in the first quarter and samsung also seen dented by the arrest and ongoing trial of the factory chief lee over a bribery scandal. we will have to live it there. thank you for that analysis. in other news: microsoft is to cut thousands ofjobs worldwide as it attempts to beef up its presence in the cloud computing sector. the technology giant wants to strengthen its cloud computing division but is facing intense competition from rivals such as amazon and google. the majority of cuts are expected to be outside the us. microsoft employs about 121,000 people globally, including about 3,000 in the uk. the markets in asia, both down. the trend on wall street, will strip was done yesterday and the story on the market is those feelings from
european central bank, confirmation from the federal reserve they will start to tighten monetary policy will stop it will make bonds look more attractive and investors are turning a way which is why the markets are down. that's it for me. you can get in touch with me on twitter. i'm @bbcrachelhorne. ritual will join ritual willjoin me for the news review shortly. —— rachel. tens of thousands of people will face financial hardship and be forced into debt if changes aren't made to the way the new welfare benefit universal credit is rolled out. that's according to the charity citizens advice which is calling for improvements. but ministers insist the benefit is working. 0ur social affairs correspondent michael buchanan reports. at the citizens advice office in bridgwater, in increasing number of people are coming in complaining about universal credit. vicki kelly
has had to take the day off work to sort out her problems. she has no inter— net access at home and struggles to keep up with the online system. i have had to take a day off work to sort this out! you want me to work but i have to take time off! what is the last few months been like? terrible, struggling for money, having to find other work just to manage. and obviously now they have stopped it again at the moment, we have to make phone calls, make appointments to come back into thejob centre. and again, it is more time off of work, losing more money. universal credit has been ruled out across —— rolled out across britain, six household payments being combined into one monthly sum. but problems are merging, a survey conducted by citizens advice of those people it's helped found over one third of claimants are waiting longer than the six weeks a should for a payment. 0ne the six weeks a should for a payment. one in ten people have to wait over ten weeks for universal credit, more than half have had to
borrow money while waiting for their benefit. we are seeing thousands of people who are seriously worried about their personal situations and cannot fix it because the administration of universal credit is not helping them and the support is not helping them and the support is not helping them and the support is not there for them to see their way out of it. ministers insist that universal credit is a success and say most claimants are satisfied with the benefit and how it is available. for is available. this is bbc news. the latest headlines: tight security is in place in the german city of hamburg for the start of the g20 summit, after a night of violent clashes between police and anti—capitalist protesters. president trump and president putin will hold their first face—to—face talks today on the sidelines of the summit. world leaders will discuss a range of issues including trade, climate change and the threat posed by north korea. mexican authorities say 28 inmates have been killed in a fight