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tv   BBC Business Live  BBC News  July 7, 2017 8:30am-9:01am BST

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this is business live from bbc news with rachel horne this is business live from bbc news with rachel home and ben bland. pressure grows on that t20 reach 620 to tackle the migration crisis, is more investment in africa the answer? that is our top story. —— pressure grows on the 620. the 620 begins today, but can leaders who represent 85% of the world's wealth come up with a plan to solve the growing migration crisis? also when the programme, forget the exploding phones, because samsung says it is on track for record quarterly profits. we live in our asia business hub with details. markets in europe have opened and they are all down, we'll be looking at the figures. and we'll be getting the inside track on this weeks big financial news with the bbc‘s business guru simon jack. social media is buzzing today with rumours that president trump had trouble
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securing a hotel room for the 620 summit in hamburg. so today we want to know what you have missed out on by waiting too late to book? just let us know — use the hashtag bbcbizlive. hello and welcome to business live. we start in hamburg, germany where as you've been hearing, leaders of the 620 group of the world's top economies are gathering. concerns over free trade and the environment are high on the agenda. 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 6ermany — where migration related costs are projected to top $100bn by 2020. chancellor angela merkel has made it clear that she thinks other countries must shoulder more of the burden
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last year alone 6ermany saw almost three quarters of a million 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 you can see why so many take the risk. according to the world bank — the average income in sub—sa ha ran africa last year was $1,504. while in the eu it was $33,248. with me is professor christian dustmann, director of the centre for research & analysis of migration at university college london. we'll speak in a moment, i think we can show you live the scene in hamburg. it looks like emmanuel macron just getting into a car. hamburg. it looks like emmanuel macronjust getting into a car. this is live from hamburg where the 620 summit of leaders is taking place. all eyes are on that. a lot for them
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to be discussing. including how to deal with the migration crisis. so let's delve into that with professor dustman. what do you think the likelihood is of reaching consensus, how much common ground is there between the leaders when it comes to the challenges, benefits and answers to the migration crisis. consensus on what precisely? what we're seeing at the moment is a continuation of what started in 2015, emphasis has shifted from africa to the middle east. people are fleeing war, persecution and, increasingly, poverty. making their way over the mediterranean into europe. now, the borders of libya, which have been avoiding that during the 6addafi
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regime, are now not doing that any more. this flow has to be in some way addressed. where we can see, and hopefully we'll see consensus, is to create situations in those countries where these people are coming from which will make it liveable future for these people. i think that is something where we can see hopefully something where we can see hopefully some progress at the 620. something where we can see hopefully some progress at the g20. these are the leaders of some of the most powerful and wealthy nations. there isa powerful and wealthy nations. there is a lot of anger among some, we can see protests taking place on the streets. some people feeling these very powerful leaders are simply not doing enough. i wonder whether you think that, for example, greater investment in africa and supporting those north african economies would help actually solve the deeper problem? well it will address the problem, it's not so much only the
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economic situation in which we find these people, but instability and insecurity. even more so, the population projections for these countries are quite dramatic. we have 1.1 billion people living in africa today. they are projected to increase to 2.8 billion in 45 years. so the pressure will not abate. we need to address insecurity, instability and poverty in these countries, if we want to address the increasing migration flows from those regions. it's got to be a long—term plan. 0ne those regions. it's got to be a long—term plan. one of the counters to the idea of immediate investment in africa is that once people are earning more, then they will actually have more means to make that journey north actually have more means to make thatjourney north to europe. actually have more means to make that journey north to europe. that is very true, many of the very poor people who would like to migrate don't even have the means to do so. so increasing economic wealth in
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those regions, without creating security and stability, and a future for these people, may actually at least in the short run lead to increased migrations, and that has to be considered. we are seeing live images from hamburg, those protesters staging a sit in protest in the middle of the street. it appears police are using water cannon on them to try to get them to move on. dave been protesting in hamburg since the summit began yesterday. initially a very peaceful protest, but then it later turned into clashes between protesters and riot police. we can see the water cannon being used, but the protesters seemingly not being moved by that. determined to stay there. some of them feeling, perhaps,
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capitalism, the markets have in some way failed some of these people, who are ina way failed some of these people, who are in a really desperate situation. but also angry about what they would consider the insufficient action taken by the world leaders at that 620 summit. a lot of focus on that, they know the world will be watching. huge media presence, with the 620 leaders, and these protesters will no doubt have factored that in, knowing they will get a lot of attention drawn to their cause and the points they are trying to make. professor dustmann, what reaction do you think this will garner within the 620 leaders? i don't think this will affect much what will be negotiated within the 620 circles. i mean... ina negotiated within the 620 circles. i mean... in a way some of the arguments you see in the streets are
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arguments you see in the streets are a little bit naive. 0f arguments you see in the streets are a little bit naive. of course we need to help people in need, but what we have seen in 2015—2016 for insta nce what we have seen in 2015—2016 for instance was that very large migration flows from countries outside europe lead to political radicalisation within europe. we had the rise of the radical anti—immigration party in germany and also in other european countries asa and also in other european countries as a response to the migration crisis of 2015. if that leads to political change, then clearly that doesn't help anybody. so we can deal with migration but we have to avoid inflows which are considered by the majority of the population is something not sustainable. again, it brings me to the point i tried to make earlier, we need to address the issues and the problems in those countries where these people are coming from. i hope we will make progress on that at the 620. the key issue here, of course, is that much
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of the instability, which is causing these migrations, is created by a number of different actors. notjust europe alone which can influence that. it is many other countries which have to take responsibility. and that is why it is so important to discuss that within the 620 meeting. professor dustmann from ucl, thank you very much for your time. let's take a look at some of the other stories making the 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 6oogle. the majority of cuts are expected to be outside the us. luxury handbag maker, mulberry, has set—up a joint venture injapan as it continues its expansion into asia. the company has signed a deal with japan's 0nward 6lobal fashion to form the 50:50 joint venture. the company will be called mulberry japan and have
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its headquarters in tokyo. earlier this year, the company launched mulberry asia, operating in hong kong, china and taiwan. tesla is planning to build the world's biggest battery in south australia to store renewable energy. the lithium ion battery system will be paired with a wind farm. repeated recent blackouts in south australia have sparked a political row over energy policy, with the federal government blaming the failures on the use of renewable technology. 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. monica miller is in singapore. tell us more. you've been looking at the figures. for the first time, samsung has ta ken the figures. for the first time, samsung has taken a bite out of the
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apple in terms of quarterly profits. the south korean electronics giant says it will make $12 billion in the second quarter, a 72% bump compared to where it was this time last year. all because of strong demand for memory chips. some analysts say the company is on track to overtake intel is the world's biggest chip—maker in terms of sales by the end of 2017. it's a huge turnaround from where sa nsom end of 2017. it's a huge turnaround from where sansom was half a year ago. they were coming off the scandal of exploding batteries on the galaxy note seven. you wonder what they do with the other parts that are ok to use. in south korea they launched a new phone and said they launched a new phone and said the reason was because they wanted to minimise the environmental impact. let's look at how the markets have been getting on. 0vernight markets have been getting on. overnight in asia... traders have been watching political tensions on the korean peninsula, falling oil prices and were also awaiting a key employment report from the us. in europe —
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all infrared. indices loosing out to the bond markets — central banks calling for a tightening of monetary policy — soon they will start to turn off the flow of easy money to the markets — that has made bonds more attractive — driven up the yield investors can get from bonds which means some are turning from equities to bonds — explaining some of those market falls. and samira hussain has the details about what's ahead on wall street today. it's the first friday injuly, which means it is jobs day for the it's the first friday injuly, which means it isjobs day for the us. the latest snapshot of america's labour market will be released. the unemployment rate currently stands at 4.3%, economists are not expecting it to change. analysts will be looking closely at both the labour participation rate and to see
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if wages have increased. ahead of the us federal reserve janet yellen will testify to us lawmakers next week and on friday the american central bank will issue its semiannual report outlining recent policy decisions and describing its plans for reducing its asset holdings. by law the fed has to testify twice a year and issues a formal report on the state of the economy and monetary policy. usually it is issued simultaneously with the chair‘s testimony, but this year the report will be issued a few days ahead of time. joining us now is richard fletcher, business editor at the times. we mentioned the usjobs figures out later. what are analysts expecting? they are closely watching job figures to give a snapshot of the us economy. we expect 179,000 non—farm payroll jobs to the us economy. we expect 179,000 non—farm payrolljobs to be created, then there will be a focus on average earnings, expected to come
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in at 0.3%. the overall unemployment figure, which we expect will stay at 4.3%. it's what this tells us about the us economy, particularly what that means in terms of whether the fed will eventually reach its forward target of a third rate rise this year. at the moment there is very little chance of a rate rise when they next meet, only 18% chance in september, according to how the markets are pricing. it's going to give us, hopefully, some clue about what's happening to the us economy and what it might mean in terms of rate rises. it comes back to the whole sell—off of equities and what's happening in the bond market. let's talk about the bond market, we've seen a rise in the bond markets. as yields have gone up they are looking more attractive to investors. the german ten year bond is trading at an 18 month high. with the ecb minutes we had earlier this week, there is this feeling the ecb
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is going to turn off the taps is a bit sooner than the market had expected. we've also seen here in the uk split among the mbc. there is a feeling that globally we will see a feeling that globally we will see a tightening of monetary policy. there will be some people who say, you know, about time. because this loose monetary policy has been in place for so long that the concern is, if there was another chopped the system the are almost all the way into emergency mode. how do you turn this off after such a long period of loose monetary policy? that is interesting. for the central bankers it's about how you do that without causing too much of a shock to the market. oil doesn't know if it up or down, it's volatile at the moment. it has been volatile for oil at the moment. one of the big movers has come out and said, the changes we have seen in the us because the
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costs in production of shale falling, we will look at oil trading in this tight band. we've seen it trading in this $45 — $55 band for a long time. that's probably set to continue, a bit up and down on a daily basis but we do appear to be quite range bound. when it comes to investing it is all about timing and not leaving it too late, it ties in with rumours about president trump at the 620 apparently struggling to get a hotel room. have you ever left it too late, for investment or otherwise? i'm a terrible investor soi otherwise? i'm a terrible investor so i have definitely left it too late. i am a nervous traveller so i booked my hotel and get to the airport at least a day in advance. booked my hotel and get to the airport at least a day in advancelj know the feeling, having once missed a flight and the stress of that. richard, thank you very much. richard, thank you very much. richard fletcher, there. coming up with a look at the mega trade deal between europe and japan and if free
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trade is back on the global agenda. this is business life from the bbc. the food delivery firm deliveroo has said it will pay sickness and injury benefits to its 15,000 riders in the uk if the law is changed. at the moment the firm says, the law prevents it from offering enhanced rights because it classifies its riders as self—employed. let's get more from our business correspondent theo leggett.what is the company suggesting? as you know deliveroo is a company that takes as you know deliveroo is a company that ta kes restau ra nt as you know deliveroo is a company that takes restaurant food and delivers it direct to customers. it uses a network of cyclists and mopeds and riders mainly to deliver the food and they work flexibly. so they can work when they want, log on, getjobs to them and work for other people as well. as a result deliveroo classifies them as
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self—employed. so they are not eligible for holiday pay and sickness benefit. what deliveroo has done, is, in submission to the government which is reviewing how employment law works with regards to the gig economy, it says if the category of workers is changed it might be prepared to offer more benefits than it currently gets. why is there an issue with the current law. it hasn't kept up with the way the economy has changed especially the economy has changed especially the development of the gig economy. people who work on behalf of companies are either categorised as self—employed, as workers or as employees. as we go up that scale the number of benefits you are eligible for increases. a lot of companies in the gig economy in particular want to give their workers classified as self—employed because then they don't have to pay national insurance on behalf of those workers so they can operate more cheaply. for the workers and offers flexibility although they
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don't have those benefits. the gig economy is a great area. it doesn't fit naturally —— a grey area. it doesn't fit in any of those classifications. so the law is being looked at to see if these workers cannot be exploited and at the same time give them the flexibility to work ina time give them the flexibility to work in a way that they do. thank you very much for that. very interesting story continuing with the gig economy which is becoming a huge part the economy in the uk, with zero hours contracts, people are starting to work out how to make it work both for the employer and the employee. you can read more about that story on the business page. you're watching business live — our top story. the 620 summit gets under way in hamburg today. the meeting is expected to be divisive, as world leaders discuss
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a wide range of issues — including migration, trade and climate change. a quick look at how markets are faring. this is how they look at the start of the trading day across europe, all the main indices are down shade, and the pound below the $1.30 mark. and now let's get the inside track on this week's big financial stories including that mega deal betweenjapan and the eu and the billionaire owner of newcastle football club's rather unusual meeting style —— our business editor simon jack is here. the main focus is on trump and putin but keep an eye on trade and in particular this undercurrent of whether the us. imposing steel tariffs. there's a story about steel
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and whiskey and orange juice. president trump has been the big defender of the us steel industry. he's already got tough with china about some of their steel exports to the us. it looks as if he puts wider ta riffs the us. it looks as if he puts wider tariffs on steel imports, people say this trade war could be starting and other countries will get caught in the crossfire but we have seen between the us and china. he's been looking into a particular section, section 232 of an old act from the 19605 section 232 of an old act from the 1960s saying, you can reveal imports if this national security interest. what he is trying to say is that they use steel in defence. it hasn't been done often before so he's using a strange and powerful instrument to maybe put the squeeze on foreign and steel imports into the us. the other interesting thing about the meeting of the leaders is notjust the official group gathering but what is
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happening on the sidelines, we saw yesterday the meeting between eu leaders in japan talking yesterday the meeting between eu leaders injapan talking about this deal that they have reached. if you look at the backlash around the world, it seems against the odds. the japan deal is interesting because for one thing it did not ta ke because for one thing it did not take a long time to do, they've been negotiating it since 2013. it will also put out ofjoint analysis of french auto makers, exports of cars, a tariff of 10% on that, for the europeans, agricultural products, a lot of beef is consumed injapan, what is interesting in a brexit context, there seems to have been this move against free trade, a big blockbuster deal. at the same time you see the uk is leaving the eu and some say this is leaving precisely at the moment when they have their mojo and their schools together on trading. 0thers mojo and their schools together on
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trading. others say, people like japan want to do deals with important economies, the uk is one of them and this could be a bit of a blueprint for a deal between the uk andjapan. blueprint for a deal between the uk and japan. speaking of the t20 another meeting is also happening in the weekend in the uk. business leaders are going to the foreign secretary ‘s residence to meet with the government. business leaders felt they had been frozen out of the political process, their hopes and fears about brexit were not being listened to. and just last might the cbi said, what we want to do is running out, we are never going to get a trade deal done in the time available until march 2019. what we should do now is say early until we get a full trade steel, and it is enforced we should stay in the single market and in the customs union. people on the other side of the debate say this sounds like hotel california, you can check out any time you like but you can never
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leave because this will go on for yea rs! leave because this will go on for years! with spoken before about sports direct. interesting revelations. real caucus! sports direct is run by the maverick entrepreneur, mike ashley. he founded this company and did fa ntastically well. founded this company and did fantastically well. they floated some shares. he runs it with an iron fist and owns 70% of the shares. he calls the shots and it turns out he also buys the shots! he had a big boozy meeting where he drank 12 pints of lager punctuated by vodka chasers. apparently he drew up into the fireplace. the case in the court at the moment is that on one of these boozy nights he said to one investment banker, if you can double the share price give you £15 million. it did happen and now he said it was nothing more than banter. the other guy said, no we have a proper understanding. very amusing story. it's well worth the read. my twitter question,
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a p pa re ntly read. my twitter question, apparently donald trump had trouble finding a hotel room at the 620 because he left it too late to book. i went to the frankfurt motor show and ended up staying in, it was more like a monastery cell, it was like a monastic cell. when you go to one of these big trade conventions like frankfurt motor show or the 620 the best hotels are booked. if you know journalists, we go at the whim of the editor and by the time you get there only the greatest rooms are available. and he's still got there and did the job. available. and he's still got there and did thejob. —— the greatest rooms. that's it from business live today. there will be more business news throughout the day on the bbc live webpage and on world business report. we will be back on monday, we will see you then. temperatures will drop in the next
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few days becoming cooler, yesterday was hot, 32.2 celsius in london. very warm in the midlands and the west country, fresher further north, today will still be very warm in the south—east with sunshine this morning, staying largely sunni, a bit more clout, perhaps the occasional shower, nowhere near as torrential as those we saw yesterday, eastern parts of england, if you got caught in one unit about it, the odd shower around as we go into the afternoon and north—east scotland, some showers that as well. north east scotland a few bright spells, in northern ireland as well, temperatures reaching 16 or 17 degrees, not as warm as yesterday in wales, temperatures down, cloud and maybe showers over the welsh mountains, the best of sunshine will
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be in southern england today especially the south—east. temperatures could still reach about 26, perhaps 28 celsius in london. lower than yesterday, it should be dry at wimbledon, this looks pessimistic, we should see brighter spells with sunshine breaking through, and most importantly it will not be as hot as yesterday. through tonight this weather front, moving south, it is a cold front moving south, it is a cold front moving cold air behind it, it could bea moving cold air behind it, it could be a chilly night, temperatures down below single figures. it could be an uncomfortable night for sleeping again, temperatures 17 or 18. for saturday morning some rain first thing across the south, it will gradually clear, sunny spots for most parts of the uk, stronger winds affecting the northern isles, temperatures down by a couple of
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degrees, between 17 and 20 in the north, 24 in the south—east. by sunday the rain will move further south across scotland, northern ireland and elsewhere, the occasional shower, these could be heavy and very hit and miss. they will be some sunny spells, it will feel fresher again, at times, plenty of dry weather around, you can find out more details on our website, that's it for me hello, it's friday it's 9 o'clock, i'm joanna 6osling, welcome to the programme. donald trump meet vladimir putin face—to—face today at the 620 summit in hamburg. they will attempt to repair ties after damage over russia's alleged meddling in the us election. the meeting comes one day after the president claimed the west needed to show the will to survive international threats. to date we
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are in the west, and we have to say, there are dire threats to our security and to our way of life. ahead of the meeting clashes between protesters have left more than 70 police officers injured and as you can see the protests are contiuning. citizens advice say the roll—out of universal credit, the new system by which all benefits are combined into
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