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tv   BBC Business Live  BBC News  July 11, 2017 8:30am-9:01am BST

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this is business live from bbc news with ben bland and rachel horne. getting the gig — the uk government review calls for better pay and conditions for the millions of people working in the gig economy. live from london, that's our top story on tuesday, the 11th ofjuly. the taylor review says there must be a focus on delivering quality as well as quantity when it comes to work in the modern economy. also in the programme... air india takes meat off the menu for most of its passengers as the country's top court considers a ban on selling cattle through animal markets. on money markets and equities, here are how the european indices look at the start of the day. all of them slightly into positive territory. we
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will look at the asian markets and also we will look ahead to wall street. flying around the world at someone street. flying around the world at someone else‘s expands might seem like fun, but is business travel all it is cracked up to be? one man trying to get companies to part with their cash. scientists tell us our desire to drink more coffee makes us live longer. how do you drink yours? i like live longer. how do you drink yours? ilike and live longer. how do you drink yours? i like and americana with extra hot milk. just tell us on twitter. extra strong lotto for me. you have been sharing yours. we will share those with you later. a very warm welcome to business live. the world of work is changing but the question is, can employment and tax law keep up? in the uk government review was calling for workers in the so—called gig economy to get new rights, they are talking about people who take
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short—term jobs, things like driving for uber. it can offer flexibility but it often means lower pay and poor conditions. the taylor review says there should be a new category of worker, a dependent contractor. they would get some form of minimum wage and six play. this is relevant to more people around the world. —— sick pay. across the european union and the us, 20—30% of people are involved in the so—called gig economy. as many as 162 million people around the world. for almost half of them, it is their primary source of income. the rights they get make a big difference. the european union is currently looking at how it can make sure the gig economy workers can get similar social protections such as out of work benefits and employment
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services like training, as those who do traditionaljobs. in the world's biggest economy, the us, two senators have proposed portable benefits including paid leave and unemployment insurance that would move with individuals as they move across differentjobs. here is the author of the day's report, matthew taylor. in my view, there is too much work at the bottom end of the labour market that is not of a high enough quality, too many people are not having their rights respected and they are treated at work like they are cogs in a machine rather than being human beings and there are too many people who do not see a route from their currentjob to progress and earn more and do better. i think we can improve all of that if we put our minds to it. the report will start the process but all of us in society, we have a role in getting good work for everybody. that was matthew taylor who wrote the review. kamal ahmed is our economics editor. what matthew taylor has said is not
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anything of a surprise. we have had anything of a surprise. we have had a number of tribunal is in the uk where it has beenjudged lots of a number of tribunal is in the uk where it has been judged lots of the people workers and they are entitled to holiday and sick pay. is there a feeling he could have gone farther? the unions think he could have gone further. he did not recommend banning what are called zero hours contracts, contracts where workers are not guaranteed any hours of work ina given are not guaranteed any hours of work in a given period. he has not said the minimum wage has to be guaranteed by firms working in the gig economy. what they will have to do is prove that an average person working in an average hour could earn up to1.2 working in an average hour could earn up to 1.2 times the minimum wage. there is a body of opinion that believes he could go further but what he is trying to do which is the important thing is look at the fundamental change in how we work and that goes down to notjust how people are treated and benefits, but
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also how productive they are and how much wealth they create with the economy which is vital and how the firms operate. it has quite an interesting echo of the arguments we have had around google and facebook and how they pay tax. the new gig economy digital phones, how they work ina economy digital phones, how they work in a world where the law was built for a different era. the laws we re built for a different era. the laws were built up after the second world war in britain to deal with a nine to five culture, we have an employer, we go home. this is the new world and i think matthew taylor has made a substantial effort to understand the new world and give new models about how it would work. some of the firms in question will be slightly concerned by this because it would mean things like national insurance contributions which they currently do not have to pgy- which they currently do not have to pay. that is about the tax system catching up with the new ways of working. in the uk, if these workers are categorised as self—employed, that means the company that employs
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them does not pay national insurance and that is a big tax that is used for health care and pensions in the uk. and he is saying they should start playing those kind of taxes. that is good for the exchequer in the uk, it means they may get more money in the future, but the big challenge for britain is what will actually happen. we have a minority government, a government that relies on other parties. will any of this get past? the danger is this report sits on the desk either the shelf and people forget about it. that will be the big challenge now, wilbur government be able to do anything? thank you for that. how do you take your coffee? hot tomato. excellent choice. —— hot latte. and you can read more about workers rights in the gig economy on kamal blog which is available on the bbc news website and via
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the bbc news app. let's take a look at some of the other stories making the news. mark karpeles, the boss of the now defunct bitcoin exchange, mount gox, has pleaded not guilty to charges of embezzlement and data manipulation. mount gox was at one point the world's largest bitcoin trading platform, but it filed for bankruptcy in 2014 after losing half a billion dollars worth of the digital currency. prosecutors claim that mr karpeles used the exchange to siphon funds into an external account. australia's prime minister malcolm turnbull says he is keen to secure a trade deal with the uk "as quickly as possible" once britain leaves the european union. mr turnbull said he hoped the uk could secure a brexit deal before the expected date of march, 2019. shares in snapchat‘s parent company snap have fallen below their initial public offering price for the very first time. analysts have expressed their concern that the image sharing website is struggling to compete with rival social media platforms such as instagram and facebook. snapchat debuted on the new york stock exchange in march at $17 per share. let's take you to india where the country's highest court
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has ordered the government to delay its ban on selling cattle through animal markets. critics argue it's blocking free trade in an industry that supports 20 million jobs. meanwhile, the country's flagship airline air india says it won't serve meat to passengers in economy class. sameer hashmi is in delhi for us. let us start with the court story happening today, what are we expecting to hear? the court has passed an order save the government cannot implement the proposed law. the law says the government wants to ban the sale of cattle for slaughter, including all animals, cows, buffaloes. bearing in mind, in india, mehdi states do not low cal slaughter —— many states do not allow the slaughter of carols. some states allow them to go ahead with
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slaughter. the court is saying there isa slaughter. the court is saying there is a lot of opposition, it will affect livelihoods and also people's freedom to choose what they want to eat. the government has said they will look at the rules again, talk to the stakeholders, amend the rules and come back to the court in a few months. the law will not be implemented in the coming months. it would have affected business in a big way because india was a large exporter of beef, the buffalo meat. last year it exported $4 billion of beef from india. if it is implemented, it will have a fairly big impact on business, the meat and leather industries, but we are also hearing this move from air india, tell us about that? air india, earlier they had a rule where they would not serve non—vegetarian meals, meat, on flights that were under 90 minutes, but not they have
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implemented it on domestic flights. they say they are reducing costs because they have a huge debt, they are suffering because of huge losses. but many people say that given the whole controversy around meat, probably the timing was not right. air india saying it has nothing to do with politics, purely business why they are not keeping meat on their plates. critics say it will not help them on saving costs toa will not help them on saving costs to a great extent. —— on their planes. thank you. let us have a look at the markets... asian shares extended gains on tuesday and the dollar notched a four—month high against the yen, as investors awaited testimony from federal reserve chairjanet yellen for clues on when the central bank would raise interest rates. the stronger dollar against the yen helps japanese exporters their shares drove the nikkei higher. frankfurt and paris, slightly
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outperforming london. on currency markets, the pound is down against the us dollar. figures show the challenges facing the british economy. households spent more on food and other essentials but held back on less urgent purchases as prices rise. crude oil prices extended gains they made overnight, that's despite an increase in drilling activity in the us, which could add to the excess supply around the world. let us take a look ahead at what may be happening in the us. and michelle fleury has the details about what's ahead on wall street today. pepsico shares outperforming, takeover target, margins. but will it last? part of what has been driving the stock higher is speculation that pepsi might be a ta keover target speculation that pepsi might be a takeover target for the likes of kraft heinz. investors have also rewarded the company for boosting revenue, despite a decline in volume. the owner has been very
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successful at raising prices to offset a drop in sales. but some on wall street question how sustainable it is. back in april, the company warned margins would be under pressure from higher commodity prices. analysts are looking for revenue that pops $15 billion. joining us now is the chief market a nalyst, joining us now is the chief market analyst, thank you for coming in. this is a point when you get to blow your own trumpet a bit because we had you on the programme talking about snap when they floated, they we re about snap when they floated, they were floating $17. you said...” were floating $17. you said...|j said were floating $17. you said...” said we would probably see an initial pop but i was sceptical about the long—term prospects for this company simply because they have not made a profit and they continued to, despite increasing revenues, lose more money. you continued to, despite increasing revenues, lose more money. you were right! looking at the share price
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performance, i think the big question is, will they be the new facebook or twitter? unfortunately for snap, they are up against facebook and the instagram stories which is very replicable ultimately and facebook has a head start. one of the other things about snap is the shareholder structure, no voting rights. if you are looking at snapchat and the prospects for growth, i do not see where they are justified $25 billion valuation and i think justified $25 billion valuation and ithink and justified $25 billion valuation and i think and i fear it could end justified $25 billion valuation and i think and ifear it could end up like putter. speaking about predictions, people will be watching janet's testimony very closely to try to make predictions about the us federal reserve's pace of interest rate rises. how is that affecting snapchat markets and currencies in particular? bond yields in particular? bond yields in particular are being affected by that. two weeks ago, she made a bold prediction and you said we would never see another financial crisis in her lifetime. she may be 70, but
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paul volcker is 90. she has potentially at least another 20 yea rs potentially at least another 20 years and given the build up of debt over the last ten years, i am sceptical about that. what we are seeing in bond markets over the last two weeks, a significant increase in yields in the us, germany and the uk as central banks slightly changed tack as to what they can do with future monetary policy. if that gets out of control, we could see further pressure on emerging market economies but also over leveraged companies with respect to debt costs. thank you. how do you take your coffee? i like a, not —— i like a latte, but not three a day! all of the boys like lattes. and in the last hour marks
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and spencer has revealed its first quarter trading statement. the second largest womenswear retailer in uk has had a challenging time of late. andrew walkerjoins us from the business newsroom with the details. it's an update on the progress of the chief executive steve rose' effo rts the chief executive steve rose' efforts at turning around the company. if you look at the share price, you can see why he felt that. this is a figure in the region of 300—something. there were some gains in the intervening period but we are basically back to where we were five yea rs basically back to where we were five years ago. so he has initiated this turn around programme with plans to close as many as 60 stores,
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basically the mixed food and clothing stores, but also keeping open the compa ny‘s clothing stores, but also keeping open the company's offer and expanding that in the specialist food operations. now, this update shows that like for like sales for the uk or revenue, was down 0.5%, particularly marked in clothing and home, down 1.2%. that was despite the fact that there was a small boost to sales coming from the way in which the timing of easter fell. so some clear progress needed there. what do the figures tell us about progress in implementing the plans? on the face of it, they look a little disappointing. he says he is pleased with the progress and says they are on track with the delivery. pleased to note there was a growth in price sales in the clothing area,
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much less by way of discounted sales. if you were a shareholder, slightly less attractive if you are someone that shops there. that is an important part of the efforts to get the profits back up, to try to ensure that the greatest share in what they sell is done at the full ticket price. andrew walker thank you very much. there is loads on our business page. i'm going to pick out this story about the book publisher being sold to its joint venture partner in an effort to boost its finances. a quick look at how markets are faring.
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business travel can seem like the most glamorous thing in the world. seeing exotic places, experiencing foreign cultures, all at the expense of the company. but the reality can be starkly different. hours on cramped flights, lost luggage and lonely nights in foreign hotels can all take the shine off travelling for work. so what's it like trying to sell business travel to relu cta nt travellers ? well our next guest knows a thing or two about this. he's the boss of egencia. that's the business travel arm of expedia. it's aimed at large and mid—sized companies and describes itself as the fifth biggest business travel firm in the world but faces a tough fight from 6 major competitors it's working to break into the chinese market which is expected to grow by more than six per cent a year. we're joined by rob greyber,
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global president of egencia. thank you very much for coming in. thanks for having me. how has the business travel market changed in the last decade? it's changed dramatically and will continue to change. i think business travellers wa nt change. i think business travellers want things to be easier, cheaper and want them to be maybe a bit more fun, not champagnes and private jets but certainly easier. that's really where we come in. we are releasing a study showing 79% of business travellers really enjoy travelling for work. at the same time, it's a huge hassle and they want the hassles removed, that's where we can come in. the hassle comes from the policies, tools in place from companies that manage travel, that creates an opportunity for us. there area creates an opportunity for us. there are a couple of kinds of business trip. if you are in london, hop to manchester, if you are in london, maybe hop over to new york. we have
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a detailed infantry of your past trips, so if there was an itinerary that worked for you to get back to yourfamily ona that worked for you to get back to your family on a friday, there's a facility where you can just click. we can help you navigate foreign cities with the click of a button. ata time cities with the click of a button. at a time when everyone is much more money conscious, savings have to be made in many organisations, people can have meetings over video conferencing, they don't have to travel to be there in person, so what do you see as how you will meet that challenge of perhaps, are you seeing less demand maybe? no, in fa ct we seeing less demand maybe? no, in fact we are seeing more demand. if you look at the impact of video conferencing, it's the impact e—mail had on letters, so as much correspondence is going on, but it's going on in a virtual medium, so we are seeing the video conferencing market continue to grow alongside business travel and we think that will continue for a long time. how do you make your money? are you
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taking money off the people who're booking or do companies pay you or is it kick backs from hotels? from a business model, you can think of the clients paying us commissions to participate, as do the suppliers. the real business model is in innovation, we think of ourselves as working as an innovation company.” am intrigued because expedia is a well—known brand, so why does the business side have to be done differently? part of it is unmanaged and a lot of the bookings go to expedia and hotels. com and a lot of the bookings go to expedia and hotels.com and so forth, but half of it is managed where the cfo is dealing with different voices, one voice is saying from the employees, i want a great experience
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that looks, feels and works like expedia. the other voice is the voice of corporate responsibility which says i need to manage cost and policy, i need to take care of my employees. with egencia, you don't have to do that. do you want to get to first place in the market or are you happy where you are right now? we feel if we continue to build the best prok in the market we'll continue to gain market share as we have consistently year after yea r. when you travel, rob, what is the key priority for you, what do you look for? it's the subject of the conversations we have had this morning, coffee. really? ! conversations we have had this morning, coffee. really? iwhenjet lagged, i get a couple of espressos and a workout. you had to get that in there, a workout? ! i did! thank you very much. thank you. the
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business live page is where you can stay ahead with the breaking news. we'll keep you up—to—date with the latest details with insight and analysis from the team of editors around the world. we want to hear from you too. get involved on the bbc business live web page at bbc.com/business. you bbc business live web page at bbc. com/business. you can bbc business live web page at bbc.com/business. you can find us on facebook too. business live on tv and online whenever you need to know. our guest joins our guestjoins us again now. we are going to start with the story in the financial times. france are talking tax cuts and spending cuts. a year ago they had a socialist president and they were going completely the
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other way. when you compare it to the debate in the uk, it's a significant turn around. i think what it does speak to is the fact that france needs to get its spending under control and they need to do it at the same time as coming in under the excessive deficit procedure under european union rules. that is going to be a big challenge for emmanuel macron and edward felipe in trying to walk that line. i think that is why they are talking about tax cuts coming next year or the year after while he tries to deal with the action. there are significant tax cuts. do you think they can afford it?” are significant tax cuts. do you think they can afford it? i don't think they can afford it? i don't think they can afford it? i don't think they can. i think you have got to bear in mind the vested interests, the opposition. when you look at macron and how he came to power, he came to power on a mandate of 40% of the french electorate. a lot of people stayed away and didn't vote for him. he'll face opposition and it's how he deals that that will define his presidency.
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the telegraph adding nine minutes to your life every time you drink a cup of coffee. masses of responses to this, asking people how they take... only three minutes to yours! it's upsetting, another gender divide, i get three minutes, you get nine. life isn't fair, is it? ! thanks! michael wood says he likes it black and strong enough for the spoon to stand up on its own. another says with some rum in it. matt says fair trade and organic. kathy said extra large, three creams, three sugars, but i'm not sure what the health implications are. or you could talk about red wine. i like a cup of coffee, a glass of red wine and plain chocolate. at the same time? not necessarily but probably the same day. maybe wine at dinner followed by coffee and chocolate, an after eight mint perhaps. enjoy. nice to see you. bye. some welcome rain in the forecast
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today for gardeners and growers thanks to the low pressure bringing a weather front in from the west. we have a trough over scotland too, just bringing a few showers. the best of the drier and brighter weather acrosser in then parts of the british isles today. northern ireland enjoying the best of the drier conditions today. sunny spells. scotland, a mixture of sunny spells. scotland, a mixture of sunny spells and showers. for england and wales, the rain continues to track east through the day. northern parts of england, some brightness there. scotland not doing too bad. northern parts of england perhaps seeing some brightness too. into the midlands, wales and the south—west, the rain draped across much of the country and making its way eastwards and feeling much fresher today for everybody. the temperatures around 4
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o'clock today in london around 17 celsius. it will feel more co mforta ble celsius. it will feel more comfortable compared with the past few days. if you are going to the tennis, take the umbrella with you. it's looking like a soggy afternoon. temperatures at its best around 18. for the rest of tonight, that rain will continue to fall and gradually make its way eastwards. showers clearing across scotland, feeling fresher and certainly chilly in the rural spots. the breeze picking up around that front across the south—east. temperatures tonight ranging between seven to about 14. should be a bit more comfortable for sleeping tonight. first thing tomorrow, we have this weather front across the south—east. that will clear through, a ridge of high pressure builds and it looks like a lovely day, feeling pleasant in the sunshine and light winds. temperatures tomorrow ranging between 14 to 22. the winds are light so perfect conditions to head out and about. thursday we start to
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see the ridge of high pressure move through. low pressure starts to take charge of the weather. we can look forward to sunny spells but also the risk of a few showers, mainly across western parts. temperatures ranging between 14 to about 23. towards the end of the week, a bit of cloud around, still feeling fresh. the risk of showers at times, turning humid by the time we head into the weekend. hello, it's tuesday, it's 9am. i'm victoria derbyshire, welcome to the programme. there should be a crackdown on the cash—in—hand economy according to the author of a government—backed review on the workplace. he also wants to see far more rights for people in low paid, insecurejobs. there are too many people treated at work like they are cogs in a machine, rather than human beings, and there are too many people who do not see a route from their current job to progress and do better and earn more. have you ever paid cash in hand? do you accept cash in hand and pay tax on it? let me know.
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one of the richest women in the world, melinda gates, joins us to explain why millions more women in the poorest parts of the world need better access to contraception. when you travel the world, you meet so many women who will tell you that if they can
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