03/06/2016 BBC Business Live


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This is Business Live from BBC News with Susannah Streeter


So should humans get paid to do nothing?


Switzerland votes on a basic monthly income for all,


Live from London, that's our top story on Friday 3rd June.


Proponents say it would help to fight poverty,


but can Switzerland afford the price tax at $25 billion a year?


Rail disruption in France as unions continue their battle


Meanwhile, as air-traffic controllers call off their strike,


we look at the damage to the economy.


And we take the temperature of the financial markets.


So far they are up in Europe following a rise in the US.


It's designed to halt drones in their tracks


and is about to be trialled by the US's aviation authority.


We'll have our technology guru Rory Cellan-Jones here to give us


the details and all the rest of the big tech stories of the week.


And today we're also looking at a story about how the gender pay


Yep, research suggests that when parents fork out pocket money,


sons get given more money than daughters.


So we want to know, did that happen with you?


Did your brothers get more, or did you get more


We start in Switzerland, where voters are about to be asked


Should there be free money for everyone?


But it's actually a bit more complicated than that.


A referendum this weekend will decide whether Switzerland will


introduce an "unconditional basic income" for the whole population.


That is, an equal monthly payment to each citizen,


Every Swiss adult would receive around $2,500 a month,


regardless of whether they're working or not.


Existing welfare programmes would be scrapped, but the costs


would still be enormous, an estimated extra


That would have to be made up by higher sales taxes on goods


The Swiss aren't the only ones looking at this.


Finland is due to trial a universal basic income next year,


but on a much more limited scale, and just a few


And in the Netherlands, the city of Utrecht is also


Despite this, critics say the plan is unaffordable.


Luzi Stamm is a member of parliament for the Swiss People's Party.


My major criticism is simple. With open borders, it is a total


impossibility, especially for Switzerland, with high living


standards. If you would offer every individual a Swiss amount of money,


you would have billions of people who would try to move into


Switzerland. Let's talk about the money. The


funding behind this. Switzerland thing, we scrap the current system,


but the money in and add a bit extra. It is only Switzerland who


could talk about these sums! It is a very wealthy nation, a large basic


income of their model. It depends on the amount, every country will do it


differently. The benefits are you cut bureaucracy, you limit the


amount of time taken to work out all of these extra benefit payments and


give people the security to become entrepreneurs and make more money


eventually to go into the covers. Yes, you give people a platform from


which they can learn, work, care for their family. The critics say, with


the open borders, people will... Let's say they do 2500 a month,


hello, we are going to Switzerland! Every country has rules on assets to


a visit system, it will apply to basic income. It may be a year or


two before it qualifies. People don't think it will be passed, it is


unlikely. It is more putting the idea on the table. Absolutely.


Antennas would be delighted to get 25%, because they have created a


national debate. They will roll on with their campaign. This has been


tried elsewhere, Finland is trying it, is tracked, but Canada, where it


has been tried, what is the result? Canada and the US did, but in Canada


people were healthier, they learned more, they had a better sense of


well-being, and Canada is trying it again, Antonio, Q, Prince Edward


Island. Did they find it affordable? It was a pilot, which was


affordable. It depends on how you construct the system on the


affordability fund. A boat carrying hundreds of migrants


has cat sized off the Greek island of Crete. A major rescue operation


is under way, according to the Greek coastguard.


The number of people in distress is reported to be in the hundreds,


people are said to be in the water, people have been thrown like boys --


life buoys. We will keep you updated on the


news. Shares in troubled airbag


manufacturer Takata have been trading higher in Asia


following media reports that the business is in talks


to raise fresh investment. According to Reuters,


Michigan-based airbag maker Key Safety Systems


is considering a deal with Takata. The Japanese company's


faulty devices have led to the recall of millions of cars


around the world. They have been linked to the loss of


11 lives and 100 injuries. The Opec group of oil-producing


nations has failed to agree a cap on crude production


at its twice-yearly Some members had been pushing


for a deal to prop up oil prices, which have recovered in recent


months but are still down In a statement, Opec


said its members were committed to Speaking after the meeting,


Saudi Arabia pledged that it would not flood the market


by increasing production. Japanese investigators have


raided Suzuki Motors' head office amid a probe


into the company's Last month, Japan's fourth-largest


car maker said that an internal probe found that its testing had not


complied with domestic Looking at our section of the


tablet. This is on the BBC website. Fanning to go to France? Yes, by


car. Not by a! They had some issues last week.


The latest industrial unrest is to hit the Air Traffic Control is.


Air Traffic Control is called off a four-day strike yesterday. They had


a strike for one day. They have called it off temporarily. Jim the


14th they are planning more strike action, in the middle of the big


tournament, the big football tournament. On top of that, we have


got Air France pilots striking. And these huge floods of. A sticky


situation as far as transport is concerned.


Being an aviation, if air traffic control has a strike in France, it


is not just affect planes in and out of France, it is those going over


France. But we will have more on that later in the programme.


The US Government has asked Chinese telecoms giant Huawei to declare


whether it's sending US technology to rogue nations, including Syria,


That's according to reports by the New York Times this morning.


Mariko, what have we heard on this story?


There she is! The company is not accused of any wrongdoing at this


stage. The New York Times says the company is being investigated as to


whether it broke the rules which bank and police from exporting


American technologies to sanctioned countries. Huawei has been expanding


rapidly, but they have expanded into countries that are sanctioned by the


United States, and that is where the issue is. It is smaller rivals, they


were investigated for the same issue and were slapped with trade


sanctions, said the company cannot access any American components or


software. While it is not confirmed it is raising tensions between the


two ahead of dialogue in Beijing from Sunday.


Shares in Asia have risen, but trading activity has been pretty


weak with quite of bit of wariness around.


Investors are waiting for a US jobs report out later today,


which would give more indication about the strength of


the world's largest economy and whether the Federal Reserve


will raise rates sooner rather than later.


This is the state of play in Europe at the moment.


Yesterday, the main indices in the US ended higher.


Michelle Fleury has more details about what's ahead


It is jobs Friday for investors, the big market event is the release of


the American Labour Department's monthly employment report, providing


a real-time snapshot of the recovery. The numbers are likely to


be modelled because of a strike in the rise of the medication workers,


but economists hope the report will show 164,000 jobs were created in


May, and the average hourly wage rose 02%. A strong number would


confirm the economy is bouncing back, and may justify a rate


increase by the Central bank in June or July. A weak report might


compensate the Federal Reserve's job, suggesting the weakness abroad


is having a knock-on effect on American growth. Investors can look


for further clues from a speech later on Friday by the Fed Governor,


and then from the chair on Monday. Happy Friday! Let's stay with the


US, it is that time where we look at the American jobs numbers. More


importantly, it is not so much the numbers, it is looking at wage


growth. It is the detail, the hours worked and the amount. It is


productivity, how many hours people are working, our people being drawn


into Labour, and how much are they getting paid per hour? Of the


inflationary forces from the tightening Labour market showing


through in terms of what people take home? That is key, as to whether the


American Federal Reserve will raise interest rates sooner rather than


later. Absolutely, all eyes are on the summer, there is a meeting on


the 15th of June. Markets are not really expecting an interest rate


rise, there is a 25% chance. Most people are betting on a July rate


rise. 50% chance. Is there a press conference arranged for July? They


only set those up... They schedule them... I have not checked! There is


one in June. We get indications about the detail


about how the economy is doing, etc why they did not decide to raise


rates at that time. The mitigation is key, they are trying to do what


they can to keep the rest of markets calm as they moved to come off the


emergency interest loan. We know the market will be watching those


numbers today, you will come back and take through the papers. Some


good stories. It's designed to halt


drones in their tracks, and is about to be trialled


by the US's aviation authority. We'll have our technology


guru Rory Cellan-Jones You're with Business


Live from BBC News. It's official, that once-iconic


brand BHS will disappear from the high streets


after 88 years. But there are still serious


questions about how it came This time yesterday it was crunch


time, what's the latest? Another sad day for the UK and the


high street? It's the end of an era, after almost 90 years of trading BHS


will stop trading. It's more than 160 stores that will be holding


closing down sales. 11,000 workers face an uncertain period. Insolvency


practitioners say it's likely that most of those jobs will go, among


the 8,000 people directly employed by BHS and the 3,000 indirectly


employed because administrators yesterday decided that the battle to


rescue BHS was over. That there was no potential buyer with deep enough


pockets to be able to turn the brand around. I guess also lots of


questions surely, what happened to the bloke that sold it for a quid,


the bloke that bought it, took out something like ?400 million, correct


me if I am wrong and sold it for one quid. A lot of questions about him,


Philip Green we are talking about. The retail billionaire and owner of


Top Shop. He sold BHS for ?1 over a year ago. He sold it to a man with


no retail experience declared bankrupt previously. They'll give


their side to the story to MPs. Philip Green has been criticised for


taking money out of the business and not investing enough in the company,


as well. He has been strongly criticised by one of Britain's main


business organisations this morning, as well. Have a great weekend,


appreciate your time, thank you. That story is reflected on the BBC


live site. We have the lamentable failures at


BHS, according to the Institute of Directors, Simon Walker. He is not


impressed about how the retailer was run by Sir Philip Green. He told the


Today programme, we spent a lot of time agonising about the loss of


trust in the business community and I think we can see why this is.


There has been a lamentable failure of behaviour. That story is one to


watch. Lots more evidence in parliament coming up.


So should humans get paid to do nothing?


Switzerland votes on a basic monthly income for all -


It has been a busy week in the world of technology,


with the US aviation authority about to test a new drone-freezing


ray gun, the Chinese smartphone maker Xiaomi picking up patents


from Microsoft and companies putting increasing pressure on customers


Rory is here, the skipper of technology! Good morning. This drone


thing, seriously, the drone either falls out or freezes, what happens?


We have two fantastic drone stories this week. The good and possibly the


frightening side of drones. The frightening side, lots of airports,


in particular, worried about drones coming within the air space. Lots of


near-misses and some reports of drones striking aircraft. They've


not been confirmed. A lot of rumours, rather than actual damage


caused. But, a big issue for airports. The federal aviation


authority in the States is looking at the system droved -- developed by


a UK company which spots drones in prohibited air space, targets them


and latches on to them. Effectively interrupts communications between


them and their owners and freezes them, holds them there. The theory


will be, you have a drone flying it and it stops working properly, you


bring it back to land. It's been seen as a good way of doing it. It's


a brilliant idea. Let's have positive news. I picked this out,


Walmart says it's six to nine months from beginning to use drones to


check warehouse inventories. There's been talk about retailers using


drones for various things. Amazon talking about delivering parcels


with them, that looks fanciful. Maybe now but, in the future,


short-term future, it looks more likely. It does. This plan appears


to be really micro drones with great tracking capabilities, hovering


above giant warehouses saying, yeah, perhaps even controlling the


movement of goods across them. Xiaomi is in the news for another


reason. Yes, also getting into drones and a big Chinese smartphone


business, came from nowhere, doing well. And now finding competition


tough. Wants to get into western markets, inhibited by the fact it


keeps being sued over intellectual copyright. It's buying Patents from


Microsoft which looks like it's getting out of making phones and


concentrating more on putting services everywhere. It's hoping it


gives Patents to Xiaomi and they put Microsoft office and Skype on its


phones. A new strategy. Will the west welcome them? 5th biggest phone


maker at the moment. There are other big Chinese phone makers. It's stiff


competition and is trying to take it abroad. Let's talk about Uber, you


get the Saudis and 3. 5 billion at Uber, that value gives... 62. It


maintains the same extraordinary value. What really interests me here


and is almost scary for anybody not from Silicon Valley is the amount of


capital a company like this can deploy before it needs to become


profitable. It's got so much money now from, not just the Saudis, but


other investors, how can you compete against that? But interestingly in


parts of the world rivals are competing strongly. And particularly


fascinating what happens in Saudi Arabia, there is a quote from one of


Uber's founders saying they can benefit riders, drivers and cities


and look forward to partnering economic and social reforms in Saudi


Arabia. The key thing, Saudi women can't drive, apparently heavy users


of Uber... Uber is expected to go into driverless cars. Not in the


short-term and will Uber be under pressure to allow Saudi women to


drive their cars? We have have to wrap it up. We didn't get to talk


about this quote. We are all living in video games and you two are


characters! We've been keeping an eye


on the wave of strikes and protests sweeping across France over proposed


reforms to labour laws - effectively making it easier


to hire and fire workers. Train services were cut


by half on Thursday, with more disruption expected today


- although strikes on the Paris Metro have been cancelled


and a walkout by air traffic control To add to the chaos,


Air France pilots have now called for a strike starting on June 11th


to coincide with the Euro 2016 football championships


being held in France. It's a subject that's causing major


concerns for airline chiefs at the IATA annual general meeting


in Dublin. As soon as these strikes are


actually announced, a couple of days before our customers, the airlines


need to take certain measures, it already has an operational impact.


It does impact our profitability, as well. But also probably most


importantly the passengers, customers, they need to take certain


measures. They've already taken certain measures, they've changed


plans, whether it's holiday or business travel plans. It's becaming


anyhow, whether the strike is taking place.


Sue is back to go through the papers. Let's start at this gender


gap starting with childhood and pocket money. Some tweets, one says


I always thought it was because I was the younger one. Never thought


of it that way Ryan says. Being an only child has benefits, he says.


Here is something that goes against the grain Agnes says I have always


earned more than my brother. Good to hear that. What do you think? It's


fascinating. Everyone thinks it's women in the workplace, it's bosses


and actually it seems to be more within families. The gap is now 12%.


It's widened substantially from 2% last year in the study. Is this just


a blip then? It may be but what they found is that the boys were more


dissatisfied with what they were getting than the girls. There was a


greater proportion of boys asking for more and feeling aggrieved they


weren't getting enough. I understand how that works in a household, I do


have two boys saying can I have a bit more? Do you have a daughter?


She's too young for pocket money. The same rules will apply, I can


assure you. A diplomatic household! Credit Suisse saying to workers go


home early. This is about work-life balance. They've a lot of bad press


in recent years and particularly at the junior level and people feel the


need to be present and find it difficult to go home or find their


social lives are disrupted and that leads to stress and reduced


productivity and reduced retention of these people within the


investment banks. Now they're being encouraged to have a Friday with


family and friends that is guaranteed, no interruptions. Early


finish on Friday or normal time? Between seven on Friday and 12 on


Saturday. In about 20 seconds, Iran copper? Iran is opening up,


sanctions got removed in January. They're showing interest in the nine


copper mines that Iran has got. It's interesting that they've been trying


to sell assets and Mothball things. This shows they may be getting on to


the front foot, as well. Iran rebuilding its economy.


That's all from us all today. Much more business news throughout the


day on BBC. Hello there. Good morning. The


weather has been stuck in a rut in recent days with a west-east split


in recent days and it continues today. East it's a


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