22/07/2016 BBC Business Live

This is Business Live from BBC News with Victoria

G20 policymakers from leading market economies will meet in Chengdu,

And their talks are expected to be dominated by Britain's

Live from London, that's our top story on Friday the 22nd July.

Policymakers from 20 of the world's largest economies

They'll be discussing the thorny issue of trade and protectionism.

We'll cross over live to Asia for the latest.

Pokemon Go launches in Japan - a day later than expected.

Shares in Nintendo have nearly doubled since the game was first

We will bring you the latest from the markets with equity landing on a

downbeat no -- low towards the end of the week.

It's not just Pokemon making the headlines in the world of tech.

It's also been a busy week for the social media giant Facebook.

We'll get the Inside Track with our very own Rory-Cellan Jones.

Later in the programme, we'll also be talking

about bosses and the big payouts they often

Companies argue that golden handshakes are well deserved.

Or should they be scrapped altogether?

Let us know, just use the hashtag #BBCBizLive.

This weekend something momentous is happening in the world

China will be hosting the G20 summit for the very first time.

China's presidency of the G20 is greatly anticipated,

as it is both the world's second-largest economy and also

the largest trading partner of several significant members.

One significant memories the UK and its new Chancellor, Philip Hammond

has kicked things off by outlining his economic response to the British

decision to leave the EU -- one of the significant members is. We

understand the significance and unexpected nature of the decision on

June has caused turbulence in the markets and we have the tools

necessary to respond to that in the short term. The colleagues at the

Bank of England will be using the monetary tools at their disposal

over the medium-term, giving us the opportunity with our Autumn

Statement, our regular late year fiscal event, to reset fiscal policy

if we deem it necessary to do so. We can talk to Steven McDonald in

Beijing. We just heard from the new UK Chancellor, Philip Hammond,

saying he may need to reset fiscal policy. What does it mean? It's a

bit of a surprise. The interesting thing is that Philip Hammond is not

the only one concerned about the impact of Brexit on the global

economy because today we heard the head of the IMF coming out at a

press conference and saying that I was really hoping to come along here

with a happier outlook for world growth because Japan, China and

Europe have actually been doing better than expected given the

global economy as it is. I was hoping to do that, but then the UK

had to go and Brexit and wreck everything, basically. The IMF has

had to downgrade its forecast and off the back of that, the number two

leader in China responded by saying that at least China has upped the

forecast slightly and he joked that China has a lot of hurdles but we

will keep trying to maintain the growth we are driving for the world

out of China. He sort of said we could not burden this for ever but

we will try our best. Another key global player we have heard from,

Donald Trump, speaking overnight in Cleveland, Ohio, while accepting the

Republican nomination. The issue of protectionism rearing its head. He

said he would get rid of trade deals that destroyed the middle class and

that American is not globalism would be the tenant of his foreign policy

if he were elected as president. One assumes this is a reference to the

TTIP that Barack Obama has tried to negotiate with ten countries around

the Pacific Rim. How much will that be on the G20 agenda? This is a

nightmare message in terms of the G20 finance ministers because their

whole message is one of multilateralism. They are saying

that this meeting over the weekend should get world trade back on track

to try and bring down barriers, not to build up barriers. Funnily

enough, in China, people see the message from Donald Trump as within

the framework of a political campaign. I'm not sure that

policymakers really believe Donald Trump when he says this, at least

through the state media, that's not the message coming out. Funnily

enough, in China there isn't really the level of concern over Donald

Trump that you might expect, but the G20 finance ministers meeting I can

definitely say that people will talk about this over the weekend and

wonder how they can promote multilateral is in a world climate

when it seems to be going exactly the other way. So much on the

agenda. Stephen, thanks. A quick look at some of the other stories.

General Motors may be forced to recall another 4.3 million

vehicles for potentially defective Takata air bag inflators -

It has already recalled nearly two million cars with the defective

airbags following instructions from US regulators.

The carmaker said it does not believe there is a safety defect

Roger Ailes resigned yesterday as chairman and chief executive

of Fox News following allegations

Mr Ailes did not give a reason

for stepping down, saying only that "he'd become a distraction".

He's likely to leave with a $40 million pay package

and Rupert Murdoch, who owns parent company 21st Century Fox,

will take over as acting Chief Executive and Chairman.

Nintendo's Pokemon Go has launched in Japan.

The unexpected hit has doubled Nintendo's value since its US

First released in the US, Australia and New Zealand,

the game is now available in more than 30 countries.

Have you played? I haven't yet. No, but I have watched people chase

around the office and we have footage that later. I will talk

about that a bit more with Rory later. Before we go to the markets,

a look at the live page. We have had the boss of Heathrow talking this

morning, the chief executive, and there will be a lot of debate about

what happens to the expansion of Heathrow in the light of Brexit and

the new cabinet. He says he's been on the Today programme and says it's

too early to say what the impact of leaving the EU will be, but he says

that the majority of MPs in Parliament support the building of a

new runway at Heathrow and there is good support in the Cabinet for

Heathrow to get the go-ahead. Plenty more on the live page. We've also

seen a rise in passenger numbers as well. It normally runs at 97%

capacity. The issue of needing more airspace is a huge issue in the UK

for a while. We'll start by crossing over

Michelle Fleury in New York. No slowdown in the earnings parade.

This Friday, big names in corporate America turning their report card.

Despite tough conditions in its oil and gas company General Electric is

expected to turn on a solid performance. The industrial

conglomerate is often seen as good barometer of the broader economy

because it has a hand in so many businesses from health care to

commodities. Wall Street is also predicting a dip in second-quarter

revenue for American Airlines. Brexit has hurt the world's largest

airline lowing the value of sterling sales after converting back into

dollars. Another cloud hanging over the airline is how the Brexit bow to

leave the EU will impact its lucrative London route. And for

those interested in the health of the US oil industry, the latest

drilling rig count numbers are due out. Michelle therein New York.

Joining us is Jane Sydenham, Investment Director,

Great to see you. Is the dust beginning to settle? Do we begin to

understand what the economy is looking like both here, in the UK

and for those countries that trade heavily with us, since the vote to

leave the EU? We've only had a few scraps of data in a short period of

time because most of them are up to the end of June, but what they

indicate is that with the economy it hasn't fallen off a cliff. Life goes

on and that is beginning to stabilise sterling. We had some

reasonable statistics from Europe and obviously the European Central

Bank has decided not to add further stimulus to the system at the

moment. They are keeping the firepower back and the UK have done

the same, so at the moment we seem to be watching and waiting and

things looked like they might be deteriorating a bit. Those are the

expectations but it's not disastrous. It's not bad by any

sense. We seem to be in a holding pattern in terms of central bank

action at the moment. I did protect -- detect a note of irritation from

Christine Lingard, the head of the IMF about what Brexit has done to

the forecast. Yes. Pre-Brexit economies were settling down from a

rough early part of the year. We were settling down, and then

suddenly this flight comes into the ointment in the form of Brexit and

everything is thrown off track and we have do pull back and make sure

it's not going to derail any growth. There was a bit of irritation. Of

course, a key driver in all of the market jitters we saw lately has

been the fluctuations we saw in some of the currencies, particularly

sterling. Are we beginning to see that find a holding pattern? It

seems to be settling down at around 1.3 two. That is quite an

adjustment. A 10% adjustment is a big adjustment in foreign currency

terms. We have to wait and see what happens from here. How much of that

is to do with the strength of the dollar and the fact we are seeing

some fairly robust growth in the US and, dare I say it, decoupling from

what is going on with the rest of the world? It seems fairly isolated.

Yes, I think there is a general weakness in sterling but if you step

away from the UK then the dollar has strengthened against the euro and we

have had good corporate results and the employment numbers are good and

manufacturing is looking better. So, yes there is strength there and of

course the stock market in the US has continued to power up. And here

in the UK we have the PMI data coming out later, a further

indication as to how the economy is doing.

Still to come: We have our technology editor Rory Cellan-Jones

You're with Business Live from BBC News.

MPs are calling for Sports Direct to review the way the business

is run after accusing it of failing to treat its workers

A report has concluded that the founder Mike Ashley,

may have turned a blind eye to what were described

Theo Leggett joins us in our Business Newsroom.

Some pretty damning comments in here, including some comparisons to

Victorian workhouses. Absolutely. This is a scathing report. It says

appalling working conditions and practices both in the shops and at

its main warehouse in Derbyshire. Closer to a Victorian workouts than

a modern, reputable high street retailer. It goes on to say that the

Sports Direct business model involves treating workers as

commodities rather than human beings. It says low-cost products

for customers and shareholders came at the cost of working conditions

which fell way below acceptable standards, Mike Ashley, the founder

and majority shareholder, must be held accountable. There are hearings

last month when Mike Ashley appeared before MPs and we heard a number of

accusations about what was going on. This included staff being penalised

for taking breaks to drink water, serious health and safety breaches

and ambulances having to be called frequently, including in one case

per woman who gave birth in a company toilet.

MPs now say it's incredible that Mike Ashley, who visits the

warehouse weekly, was unaware of the practices. The biggest criticism

comes in the two agencies working on behalf of Sports Direct unemployed

workers. MPs say they did not seem to have a basic understanding of

employment law. The committee does say that although Mr Ashley, as they

put it, had to be dragged kicking and screaming before the committee,

once there he was open and willing to engage. Briefly, what happens

now? The committee says it will hold his feet to the fire and visit the

where Brett -- warehouse to see what is going on and other government

agencies may be involved. HM RCR already looking at the company.

Theo, good to talk to you. One quick story, it looks like

the Competition and Markets Authority is not going to get in the

way of the merger between the home retail group and Sainsbury's, so a

relief for the retailer. You are watching the business Live.

Finance ministers and central bank governors from G20 nations will meet

in China this weekend. It's the last minister level meeting before the

G20 Summit kicks off in September and top of the agenda will be trade,

protectionism and what Brexit means for the rest of the world. Brexit is

never far from our thoughts. It has been dominating peoples thoughts,

one thing,. It really has. Probably the biggest deal of the year in the

industry, one that sees Japan take control of a prized British asset.

Speaking of Japan, Pokemon Go launched in the last 24 hours in

Japan, and by all accounts the country has gone crazy along with

the rest of the world. We were talking about two of the US tech

giants who were buying to take control, so it's all going on. We

are talking with our technology guru, Rory Selin Jones. Great to see

you. Before we get onto Pokemon Go and world domination, can I talked

about what is happening with ARM? It's an extraordinary company, the

UK's most successful in Tech over the last 25 years but even in the UK

people are not that familiar but it makes the chips that go in these

smartphones, your tablet, just about every mobile device. It doesn't

manufacture them, it designs them. The design is the key.

That has caused big debate in the UK. The government says it is a vote

of confidence in the UK. Big debate abound Japan's Softbank. Softbank

has made bold bets on a number of businesses. It bought a robotics

business in France and has done well with that. It bought a mobile firm

in the US. That is not going so well. Heavily indebted. Its leader

is incredibly bold. He likes to make these big bets. He says this is a

big bet on the future. The rest of his investors are not so sure.

Shares fell 10% this week. He believes in the singularity, where

the machines take control. Maybe he is trying to by some of those

machines first. Talking of machines, you cannot walk through London at

the moment without bumping into people doing what you are doing, on

the smartphones. I can't do it in the studio because there is no GPS

signal. Yes, Pokemon Go, we can't stop talking about it. An

extraordinary phenomenon in mobile gaming. And of course, Pokemon is a

huge ebony 's cultural phenomenon and now it is launching in Japan. --

a huge Japanese cultural and Manon. They had a bit of a whit. These

pictures are not in Japan. These are backed people in our office! That is

Tom, our producer. He needs to put the phone down and do some work! I

am in no position to criticise. I took the dog out for a walk this

morning and the dog was not impressed to see me pointing the

phone at the Pokemon. But it can be such a lucrative business. In the

short term, one of the features of the Japanese deal is that it has

done a deal with the American company -- McDonald's has done a

deal with the American company that started it, an illustration of how

lucrative it can be. And I heard that there is a new Pokemon dating

site, where you can find the love of your life! Where will it end? And it

has done well for the Nintendo share price, which has doubled. That may

be a slight overreaction. I think things were quiet and down on that

front. Talking of the titans of tech, Mark Zuckerberg, of course in

charge of Facebook, and Elon musk, the real-life iron man, some might

say the boss of Tesla, are vying for control? These are two random

events, but they tell a tale of tech titans with huge ambitions. Facebook

has revealed that it has flown its first drone, aimed at beaming the

internet and to developing countries. This is painted as a big

philanthropic gesture. These drones will fly at 60,000 to 90,000 feet

above villages in sub-Saharan Africa for three months at a time. It is an

extraordinary feat if it happens. It is still some years away. We have

only had a test flight so far over Arizona. It sounds a wonderful

gesture, but of course, Mark Zuckerberg is vying with Google, who

are trying to do the same thing. They are flying balloons over

developing countries. So that is his bid for global domination of the

internet. Don't forget, in lots of places, Facebook almost equals the

internet in people's minds, so he will be reinforcing the impression.

Elon Musk twitted the other day, I am pulling an all nighter to finish

off my master plan. What will it be this time? He has talked about

becoming an interplanetary species. Is he going to fly us all to Mars?

He is a serial opener. In the end, it was bold, but not crazy. He is

going to put a lot more into solar power. He wants us all to have solar

roofs that power our batteries. He wants to make electric cars

affordable for all across a range of vehicles, and he has this idea that

we may not need to own one, we will just be able to summon one to drive

up to us and take us away. So he will wipe out over at the same time.

He is doing it all, Elon Musk. Thanks, Rory. That story we

mentioned earlier, Roger Earls has resigned as the Fox News Channel's

chairman and chief executive following accusations of sexual

harassment. Earlier today, we spoke to Joe Flint from the Wall Street

Journal about this. His departure will be a huge blow for the channel.

The organisation is all about him, and he put it together and knows

where all the bodies are buried. It will be tough to replace him, to win

over the loyalty of the people he has in place. There are going to be

seismic changes at this channel over the next few years. Rupert Murdoch's

decision to take the acting chairman role, I think, is smart. He is

trying to send a message to the Fox News team of how important this

channel is to him, that he is aware of what a big deal it is for Roger

not to be there, and that his hand is still on the steering wheel. The

channel has been doing so well, I don't want to suggest it runs on

automatic pilot, it is accommodated operation, with Roger there,

everyone knew their role and how to execute it, and I think Rupert hopes

to keep that stability there, while at the same time try to determine

who is best to run its going forward. . We will have to see what

happens. Jane is here to talk through the business pages. Let's

begin with this story that picked our interest in the Telegraph. It is

entitled huge investor revolt at Babcock over bonuses for retiring

bosses. It raises the question of golden handshakes. Are they ever

well-deserved? Well, the performance of the Babcock share price has been

phenomenal since the management team or the individuals concerned joined

the company. That is the engineering services and support services for

the defence industry. So support has been tremendous. The worry is, are

they being involved in an incentive scheme in which they are not

participating actively, that they are not working and contributing to

the performance over the coming two or three years this year? It is a

question of, is it a reward for current effort or just historic

performance? It is difficult, because what is it that shareholders

want her? If you have a 12,000% returned since the guy has been in

tenure since 2003, what more could you want? Surely you should be

rewarding performance. But the issue is, are you rewarding performance

currently for someone who is in work, or are you awarding it

posthumously? There has been a move to reward chief executives for

current work and current incentivising, rather than a track

record. So there has been a shift during the period when they have

been working for Babcock. Another story we noticed was this one in

Bloomberg, talking about Denmark's housing market. This is about the

largest mortgage back in Denmark, saying the housing market is out of

control? This is due to negative interest rates. Rates have been

negative in Denmark for the last four years, which means it costs

practically nothing to borrow money, so people will borrow as much as

they can. And of course, if the housing market then starts to fall

later, there will be negative consequences. Really good to talk to

you. That is it from Business Live today. Plenty more on the website

and world business report. See you soon.