tv BBC Business Live BBC News April 10, 2017 8:30am-9:01am BST
this is business live from bbc news with ben thompson and aaron heslehurst. fighting protectionism! or so they say. foreign ministers of the world's seven largest economies arrive in italy with free trade high on the agenda. live from london, that's our top story on monday the 10th of april. today's meeting in italy comes at a crossroads for international trade. we'll ask an expert whether political upheaval signals the end for globalisation. also in the programme: regulators investigate barclays boss jess staley in relation to alleged misconduct in a whistle—blowing programme. the bank says it'll reduce the chief exec‘s pay as a result of the probe. and all the details of what you need
to know for the trading week ahead. investing in the future. later in the programme we'll speak to the boss of a company hoping to develop the next generation of coding geniuses. and also today, do you hate mondays? ido! the green party in the uk want to introduce a three—day weekend. would you want one, and would you work longer hours to get one? just use the hashtag #bbcbizlive. how about if you still work longer hours but you still have to do a five—day week? that sounds like what we do here! welcome to the programme. we start in italy where the foreign ministers of the world's biggest economies are meeting in the historic city of lucca. this year italy holds the presidency of the g7 group and rome has already made it clear that one of its priorities is "fighting all forms of protectionism". but why does it matter?
well, it's important because the g7 accounts for just over 46% of the world's wealth. and this meeting is important because it comes before next month's leaders' summit. last month the host, the italian prime minister, laid out his g7 plan by saying "we need to keep betting on the free market and on free trade, the biggest economic engine of history". but how can they boost their economies when there appears to be more political appetite for protectionism ? the latest imf forecasts show reasonable growth this yearfor the us, germany and the uk but others are struggling. other topics on the agenda include climate change, immigration and energy security, in fact g7 energy ministers are currently holding a separate meeting in rome. stephanie hare, an independent political risk analyst. afamiliar
a familiar face, great to see you. this is going to be interesting, because already there seems to be an airof because already there seems to be an air of mistrust, because us treasury secretary rex tillerson is being accused of hampering this year's gathering because he hasn't appointed the number of people that he needs to put these draft accords m, he needs to put these draft accords in, and it is already tainted?” don't know if it is tainted, but we have to have realistic expectations. tillerson hasn't appointed the deputy secretaries he needs, and department is being cut by a third, so department is being cut by a third, so the united states is undergoing fundamental changes as a result of the election of donald trump, so we will see a different america i think going forward. but the others around the table will want to know what the picture is that america is going to
paint. they don't know what they are doing on trade, security, etc. and thatis doing on trade, security, etc. and that is a powerful position for the united states, because it is keeping everybody else off—balance and making them wait and react to whatever it is that trump and his administration put forward. and foreign policy are huge issue because all this is happening while they are sending in a carrier fleet, a strike force fleet, towards the korean pollutants in a. my concern with this —— the korean peninsular. my with this —— the korean peninsular. my concern is that we have to foreign policy crises at the moment that could make everything else redundant. the first as you said is looking at north korea, so we are seeing extremely tough language coming out of the united states right now about whether or not they would tolerate any red lines being crossed, and that language of the red line and trying to force china whose leader was in the united
states last week meeting trump, trying to force them to pressure north korea, because we are worried they are going to have nuclear weapons, so they are going to have nuclear weapons, so what are talking about is potentially killing the leader of north korea, this was advanced as an option put before president trump, putting nuclear weapons into south korea. this is a little more than sabre rattling. it israeli scary, and last week we had the united states launching air strikes against syria because of a red line being crossed on chemical attacks. that was seen as sending a message to other leaders around the world that the united states is not afraid that and to act quickly. we have to leave it there, unfortunately, but thank you very much. let's take a look at some news from the uk banking sector now. jes staley, the chief executive of barclays is to be investigated by the financial conduct authority and the prudential regulation authority. they say mr staley tried to identify a whistle—blower in 2016.
simonjack has the details, so bring us simonjack has the details, so bring us up to date. unusual story, this. he is accused of sticking his nose in where ceos shouldn't stick their nose in. he is accused of hiring someone nose in. he is accused of hiring someone from jp morgan, someone he had known for years, who had had personal issues in the past, and somebody wrote to the members of the board of berkeley is questioning whether this new person was a suitable higher and saying maybe the fa ct suitable higher and saying maybe the fact thatjess staley was a friend of his meant that normal due diligence had been ignored. he saw this as a personal knifing of somebody who had had problems at the passport was now 0k, and it didn't sit well with him. he wanted to know who sent the letter, he was told to back off it was none of his he then mistakenly thought he was clear to restart the hunt and try to involve
us law enforcement agencies into trying to find who wrote the letter, and was told that was not appropriate. whistle—blowing only works if the system is anonymous, which is why regulators get so upset if chief executive zahra allowed to hunt down whistle—blowers, it doesn't work. it could cost him up to £1.73 doesn't work. it could cost him up to £1.3 million from his bonus last year, and that will not be the end of it. regulators love whistle—blowers, it helps them do their job, whistle—blowers, it helps them do theirjob, so they want to get to theirjob, so they want to get to the bottom of this. simonjack, the bottom of this. simon jack, thank you the bottom of this. simonjack, thank you for explaining that, the latest at events on ba rclays. let's look at some of the other stories making headlines around the world. a secret recording that implicates the bank of england in the libor rigging has been uncovered by the bbc‘s panorama programme. libor is the rate at which banks lend money to each other and it sets a benchmark for mortgages and loans for regular customers. the 2008 recording adds to evidence the central bank repeatedly
pressured commercial banks during the financial crisis to push their libor rates down. a quick update on a story you may have seen around yesterday. the payday loan firm wonga has suffered a data breach which may have affected up to 245,000 customers in the uk. the firm said it was "urgently investigating illegal and unauthorised access to the personal data of some of its customers". the information stolen includes names, addresses, phone numbers and bank account numbers. we have also got some news, this is fairly interesting. the operator of hong kong's gold exchange is in talks with myanmar to help the government there set up a similar exchange in that country. it is part of the whaddon road, one belt. we may come back to that later with sarah in singapore if we can get her. i think we may have lost
her. down the back of the sofa! that be run you through some numbers. we'll talk wider markets in a moment — but just want to show you two stories we're following. first up, shell. the bbc has seen evidence that top bosses at shell knew that money paid to the nigerian government for a vast oil field would be passed to a convicted money—launderer. it also had reason to believe that money would be used to pay political bribes. you can see trade down i%. we're also following barclays — with news that regulators have begun investigations intojes staley , the chief executive of barclays after he tried to identify a whistle—blower in 2016. the bbc has learned that barclays chief executive jes staley could lose his 2016 annual bonus, worth £1.3m, due to his "error" over the attempted identification of a whistle—blower. here's what europe is doing right now. it is pretty quiet at the moment.
let's just nip over to wall street, because michelle has details about the trading day ahead. the week may end early because of good friday, but there is plenty to look out for. america's biggest bank starts to release first—quarter earnings. jp morgan, citigroup and wells fargo all put their earnings out on thursday, likely to put out a rise in profit. wells fargo is struggling to shake off the effects ofa struggling to shake off the effects of a mis—selling scandal and is widely forecast to report a fall in first—quarter profit. 0n widely forecast to report a fall in first—quarter profit. on friday, markets are closed, but there is lots of economic data, not least retail sales numbers for the month of march. joining us isjessica ground, uk equities fund manager, schroders. great to have you with us as well. i know you were listening to stephanie
who scared the bee gees is out of us. “— who scared the bee gees is out of us. —— who scared the wits out of us. us. —— who scared the wits out of us. the us is facing two ships heading towards the korean peninsular and syria. and you have to remember where we have come from on this, trump saying i am not going to get involved in foreign policy commitments, everybody thinking it is all about global growth and all ofa is all about global growth and all of a sudden quite early on we are facing two difficult situations, and investors struggle to price these things because there is so much uncertainty. there is indeed. and a lot of investors jump into typical safe havens, gold. oil having a strong run, so as safe havens, gold. oil having a strong run, so as you safe havens, gold. oil having a strong run, so as you say, safe havens, gold. oil having a strong run, so as you say, on friday, the initial reaction was a jump friday, the initial reaction was a jump to safe haven, and taking off
from very low levels, people becoming slightly more concerned about risk. let's talk about banks. we have been talking about barclays and the bank of england. look at the front page of the bbc news website, bank implicated in libor rigging, watchdog probe into barclays boss, and barclays shares down. what a callous about the culture in the city? -- what does it tell us? regulators and bank boards are taking this seriously. before the financial crisis, a blind eye was cast on the sector, but now you have the regulators and the boards is... we are still cleaning this up in 2017? definitely, it has been a huge task. initial phase was about every body getting into the emergency room
and keeping it going, then it was physical rehabilitation, how do you make the banks function with a strong culture of integrity, and it takes to change behaviour. and change regulation, because we have seen change regulation, because we have seen swathes of regulation being brought into tidy up our bags operate # how banks operate? yes, and retail being cut off somewhat from investment banking, but that still hasn't been done. you can'tjust click your fingers and have change happen overnight. good to see you, thank you very much. still to come, investing in the future. later in the programme we'll speak to the boss of a company hoping to develop the next generation of coding geniuses. you're with business live from bbc news. and it is notjust coding, it is about finding jobs we don't know
existed, and training them now. we will talk about that a little later. the hotel chain travelodge has its annual figures out this morning. it saw profits and revenues rise last year, and there was an increase in business customers. they now account for half of all sales. peter gowers is the travelodge ceo. good morning. some good figures, and i think it is fair to say this comes after what has been a tough few yea rs after what has been a tough few years for you guys, all sorts of different owners, varied results, as we said, after the financial crisis. where are you up to? the company was restructured in 2012 is of it above that viable financial crisis, and we have been investing heavily and upgrading our hotels in trying to win business customers. this is another milestone, with isner ——
business customers accounting for more of our customers. and wires that imported, you would've expected they would stay at higher in hotels, and now they are staying with you? yes, there was a certain business budget customer, but we are all budget customer, but we are all budget travellers now, and businesses in an uncertain economic environment are turning to low—cost operators more and more, and almost half the ftse 100 operators more and more, and almost half the ftse100 now use the travelodge here in the uk, so it is a mainstream product. what are your mattresses like? there is another chain in the uk, of course, we know that pride themselves on their mattress and i've tried and they're comfy mattresses? you can buy one of our beds. if they are good enough for
the future king, they will be good enough for our customers. we appreciate your time and good luck with everythingment seriously. that was the big boss of travelodge. thank you very much for putting up with aaron's mattress questions! it's important. you look for a good mattress and internet! plenty of details on the bbc website. to the bank of england libor story. we love a good hornby story. shareholders who represent a 20% stake in hornby asking for the boss to go. the chairman is being proposed to leave hornby. we like talking about it. full details on the website. you're watching business live. the so—called stem subjects —
science, technology, engineering and maths — are often seen as vital skills for business. but how do you make those subjects attractive and interesting for students? i liked science, but i didn't like maths. i didn't like any of them. i'm joking! last year the bbc gave about one million devices called the micro bit to children in the uk in an effort to encourage computer programming. one of the companies involved in the project was called technology will save us. it sells do—it—yourself kits for children. so far they've sold more than 100,000 kits which let you build all kinds of things from robots to games and even musical instruments. bethany koby, co—founder of technology will save us. welcome. you brought some of your kits in. we will have a look in a moment. what fascinates me about this is, it is about teaching kids in schools these days, giving them
skills, and giving them the training forjobs that don't even exist yet. how do teachers, how do students and how do parents even get their head around that? so we believe that it's all about learning by doing. it's about getting kids hands on with all kinds of technology to help them build confidence, passion, and understanding of the skills that they can actually achieve whether that be through electronics, through programming, through things like electronic play dough when they are as young as four. it is about really getting kids hands on with the potential to what technology can do. we do potential to what technology can do. wedoa potential to what technology can do. we do a lot, i do potential to what technology can do. we doa lot, idoa potential to what technology can do. we do a lot, i do a lot of stories on this subject and it always comes you, the experts say there is a global lack of coders. that's a big problem considering the stuff ben is holding in his hand, technology is going to be the future or it is the future? there is a stat that we talk about a lot. 65% of kids in primary school, their jobs about a lot. 65% of kids in primary school, theirjobs don't even exist
yet. so these kids and their families will have to pave a path for themselves and we believe that the one way for kids to pave a path is by playing and finding enjoyment in the potential of what tech can do. if kids can find confidence, if they can build skills and actually see what they're good at, that's a better way for them it take the skills and apply them. this is so much more interesting than the things we had to do at school which was make a light on a circuit board light up. you have got the kit. this is about a bit of coding, but it is about proving that science and technology can be useful in your life. how does this work? this is the mover kit. it is waerbable. it has rainbow lights and a motion sensor and a compass that kids can programme to invent games and activities. one of the kids, eye sack, he programmed the mover, he brushes his teeth and shows his mum
and his mum believes that he brushed his teeth for two minutes of the that's a valid reason for an eight—year—old to programme something. programming is the medium to get a device to do something which they are interested in. there is so much more to it than just programming. we were talking earlier andi programming. we were talking earlier and i wanted to be an architect when i grew and i wanted to be an architect when igrew up and i wanted to be an architect when i grew up and i thought maybe i need science and technology and maths to do that and realised it wouldn't happen. this isn't about identifying thejob and happen. this isn't about identifying the job and getting the skills, this is finding something that you enjoy and are good at? it gives kids the chance to explore what technology can provide, whether that be coding or sensors, design, electronics, there is an array of things that kids should be exposed in order to really understand what their potential is. did you know you would be sitting here in the chair as the boss of
this company. did you sit down and plan your career? of course not, it was a big accident. they are different ages groups, aren't they? so it is four years old and four—year—old kids can do this stuff. this is electronic play dough. this one is aged 12. you have the four plus one. do you do the design? yes. my background is in design? yes. my background is in design and branding and i don't do all of it myself, we have an amazing tea m all of it myself, we have an amazing team now but kids are a part of every stage of product development at technology will save us. we appreciate your time. thank you very much for coming in. good luck with it all. get those coders out there! while we make this, you can do the four plus one! in a moment we'll take a look
through the business pages, but first steph mcgovern is in essex in the east of england today with the first freight train about to leave britain for china. good morning from london gateway. obviously you can the port behind me where lots of containers are coming in off the ships, but the reason we're here because of this. this train will be the first train to travel from the uk to china carrying lots of different products that have been made in the uk. so it's everything from pharmaceuticals, soft drinks, baby products, all those things that people in china like to buy from us here in the uk. it's interesting when you look at the stats because we have something like £16 billion of worth of products that we sell to china and around £40 billion which we imprort from china so a big difference and the government and the businesses here are hoping that they can reduce that deficit and start getting more of our stuff to china.
we keep pushing about that train. it has to keep changing gauges. we keep pushing about that train. it has to keep changing gaugesm we keep pushing about that train. it has to keep changing gauges. it is the same containers though. we keep saying the train. dominic 0'connell is here. this is the green party in the uk. they say you could create a three day weekend. four day week. but a four day week. yes. the caveat is you've got to work longer days?m is not a new idea. if you look back at what economists and politicians like churchill said, they said for yea rs like churchill said, they said for years and years that technology would mean that we were sitting on the beach drinking cocktails, but it has never come to pass, now with robots and artificial intelligence, maybe it is around the corner. the idea of leaving aside what the green party is suggesting, a three day
weekend, maybe we will have to pay people just to consume. this is an idea that's growing credence amongst economists and particularly silicon valley. state will provide you with a basic wage so you will consume because you won't have a job to do. i wonder what the productivity will be like in ten hours. in sweden they've gone from eight hours to six hour day because they say they get much more productivity out of six hours? this comes back to a wider point, uk productivity and there is a survey from bdo saying that uk productivity is getting worse, not better. at love you getting in touch. daniel says, "not great working a four day week if you get paid per day." maybe you could ask for a payday. squirrel says, "utter rubbish. i suppose it is all right if you have a fluffyjob." rubbish. i suppose it is all right if you have a fluffy job." why is he talking about me? it is good to have
three days off, but if you are a pa rent three days off, but if you are a parent longer hours can work against the family. all of society are built around a 9am to 5pm. that's been breaking down which is one of the things we discovered during the investigation by the select committee. this idea of zero hours contracts is not really a 9am to 5pm economy. the labour laws are much laxer here and employers do take advantage of that. can you do the us labour department? this is the google survey? yes. the gender pay gap in silicon valley particularly google is worse than it is elsewhere the economy. they're supposed to do good. maybe they're not after all. you could have had anotherfive good. maybe they're not after all. you could have had another five or six seconds. for a change we finish on time! that's it from business live today. we will see you tomorrow at the same time and same place. bye— bye. this picture was taken by a weather
watcher on sunday in the vicinity of ely cathedral. temperatures got to 25 celsius. but overnight we have seen a 25 celsius. but overnight we have seen a transformation in our temperature fortunes. a weather front has worked its way down and across the british isles introducing across the british isles introducing a north—westerly flow. never a particularly warm direction and that's the case today. dragging the temperatures much closer to the seasonal norm, but having said that, 12,13,14,15 seasonal norm, but having said that, 12, 13, 14, 15 celsius really not too bad and not too much in the way of breeze so it will feel pleasant. a lot of dry weather. speckling of showers this afternoon, maybe more in the way of showers from the wash and north norfolk up towards yorkshire. cloud filling in across the western side of northern ireland because we have got this area of rain looming in the wings across the
western side of scotland. not a particularly warm day with showers for 0rkney and the far south of scotland. 0vernight, the rain keeps on coming. further south, scotland. 0vernight, the rain keeps on coming. furthersouth, if scotland. 0vernight, the rain keeps on coming. further south, if your cloud breaks, six or seven celsius in the towns, but in the countryside, we could be looking in one or two spots at a wee bit of frost. bear that in mind. the rain keeps on coming into tuesday into the north western quarter of scotland. elsewhere, a lot of dry weather and cloudy across scotland. temperatures from eight to 16 or 17 celsius around about the london area. by wednesday, another weather front will have worked its way down and across the british isles. there will be some rain on this. quite a noticeable north—westerly breeze as well. but once that front gets down into the southern counties in england and wales, there won't be much rain on it come late in the day. following on behind, it will be a mixture of sunny spells and a scattering of showers. as we close
out the week and move towards the easter weekend, there will be a lot of dry weather around. the wind flicking between west and north weste rli es. flicking between west and north westerlies. so the temperatures never that spectacular, ten to 15 celsius, but for the easter weekend there could be a bit of dry weather around, a mixture of sunny spells, but there will be showers perhaps and we will be contending with the cool north to north—westerly breeze. hello. it's monday, it's nine o'clock, i'm victoria derbyshire. welcome to the programme. our top today: officers will line the street later as the funeral is held for pc keith palmer, who was murdered in the attack in westminster last month. friends and colleagues have been paying tribute. one of the kindest people you'll ever find. very giving, very loyal, very true friend. fantastic policeman. iamat i am at westminster, where tens of thousands are expected to line the route of the funeral. also on the programme —