03/06/2016 BBC Business Live


03/06/2016

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This is Business Live from BBC News with Susannah Streeter

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So should humans get paid to do nothing?

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Switzerland votes on a basic monthly income for all,

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

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Proponents say it would help to fight poverty,

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

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Rail disruption in France as unions continue their battle

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

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we look at the damage to the economy.

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And we take the temperature of the financial markets.

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

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It's designed to halt drones in their tracks

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

:01:20.:01:22.

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

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

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

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

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sons get given more money than daughters.

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

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Did your brothers get more, or did you get more

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

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Should there be free money for everyone?

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

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A referendum this weekend will decide whether Switzerland will

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

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That is, an equal monthly payment to each citizen,

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

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regardless of whether they're working or not.

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Existing welfare programmes would be scrapped, but the costs

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would still be enormous, an estimated extra

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

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

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

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

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And in the Netherlands, the city of Utrecht is also

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Despite this, critics say the plan is unaffordable.

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

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

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impossibility, especially for Switzerland, with high living

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

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

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Switzerland. Let's talk about the money. The

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

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

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

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

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

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

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give people the security to become entrepreneurs and make more money

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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affordability fund. A boat carrying hundreds of migrants

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

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is under way, according to the Greek coastguard.

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

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

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life buoys. We will keep you updated on the

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news. Shares in troubled airbag

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manufacturer Takata have been trading higher in Asia

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following media reports that the business is in talks

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to raise fresh investment. According to Reuters,

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Michigan-based airbag maker Key Safety Systems

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

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faulty devices have led to the recall of millions of cars

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

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

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nations has failed to agree a cap on crude production

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at its twice-yearly Some members had been pushing

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

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months but are still down In a statement, Opec

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said its members were committed to Speaking after the meeting,

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Saudi Arabia pledged that it would not flood the market

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by increasing production. Japanese investigators have

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raided Suzuki Motors' head office amid a probe

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

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

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complied with domestic Looking at our section of the

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

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

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

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

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

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

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

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

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situation as far as transport is concerned.

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

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

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

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The US Government has asked Chinese telecoms giant Huawei to declare

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

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

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Mariko, what have we heard on this story?

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

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

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whether it broke the rules which bank and police from exporting

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American technologies to sanctioned countries. Huawei has been expanding

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

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

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were investigated for the same issue and were slapped with trade

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sanctions, said the company cannot access any American components or

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

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two ahead of dialogue in Beijing from Sunday.

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

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weak with quite of bit of wariness around.

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

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which would give more indication about the strength of

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the world's largest economy and whether the Federal Reserve

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will raise rates sooner rather than later.

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

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Yesterday, the main indices in the US ended higher.

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Michelle Fleury has more details about what's ahead

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

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the American Labour Department's monthly employment report, providing

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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inflationary forces from the tightening Labour market showing

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

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American Federal Reserve will raise interest rates sooner rather than

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

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

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

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

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

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one in June. We get indications about the detail

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

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

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

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

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

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good stories. It's designed to halt

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drones in their tracks, and is about to be trialled

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

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guru Rory Cellan-Jones You're with Business

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

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brand BHS will disappear from the high streets

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after 88 years. But there are still serious

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questions about how it came This time yesterday it was crunch

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

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

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

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

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

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

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employed because administrators yesterday decided that the battle to

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

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

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

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

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

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

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

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no retail experience declared bankrupt previously. They'll give

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

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

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

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

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

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live site. We have the lamentable failures at

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

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

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

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

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

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watch. Lots more evidence in parliament coming up.

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So should humans get paid to do nothing?

:16:57.:17:03.

Switzerland votes on a basic monthly income for all -

:17:04.:17:06.

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

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

:17:14.:17:15.

ray gun, the Chinese smartphone maker Xiaomi picking up patents

:17:16.:17:21.

from Microsoft and companies putting increasing pressure on customers

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

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

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

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

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

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

:17:59.:18:02.

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

:18:03.:18:05.

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

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

:18:10.:18:16.

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

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and latches on to them. Effectively interrupts communications between

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

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

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

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

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

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

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drones for various things. Amazon talking about delivering parcels

:18:58.:19:02.

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

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

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to be really micro drones with great tracking capabilities, hovering

:19:14.:19:17.

above giant warehouses saying, yeah, perhaps even controlling the

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

:19:30.:19:35.

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

:19:36.:19:41.

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

:19:42.:19:47.

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

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

:19:52.:19:57.

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

:19:58.:20:03.

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

:20:04.:20:12.

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

:20:13.:20:19.

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

:20:20.:20:29.

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

:20:30.:20:33.

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

:20:34.:20:46.

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

:20:47.:20:50.

maintains the same extraordinary value. What really interests me here

:20:51.:20:57.

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

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

:21:01.:21:04.

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

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

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parts of the world rivals are competing strongly. And particularly

:21:14.:21:16.

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

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

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and look forward to partnering economic and social reforms in Saudi

:21:26.:21:30.

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

:21:31.:21:35.

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

:21:36.:21:41.

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

:21:42.:21:47.

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

:21:48.:21:53.

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

:21:54.:21:55.

characters! We've been keeping an eye

:21:56.:21:58.

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

:21:59.:22:01.

reforms to labour laws - effectively making it easier

:22:02.:22:04.

to hire and fire workers. Train services were cut

:22:05.:22:07.

by half on Thursday, with more disruption expected today

:22:08.:22:10.

- although strikes on the Paris Metro have been cancelled

:22:11.:22:14.

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

:22:15.:22:17.

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

:22:18.:22:31.

to coincide with the Euro 2016 football championships

:22:32.:22:34.

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

:22:35.:22:37.

concerns for airline chiefs at the IATA annual general meeting

:22:38.:22:39.

in Dublin. As soon as these strikes are

:22:40.:22:51.

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

:22:52.:22:55.

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

:22:56.:22:59.

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

:23:00.:23:02.

importantly the passengers, customers, they need to take certain

:23:03.:23:06.

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

:23:07.:23:09.

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

:23:10.:23:14.

anyhow, whether the strike is taking place.

:23:15.:23:17.

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

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

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

:23:26.:23:34.

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

:23:35.:23:41.

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

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

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

:23:50.:23:54.

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

:23:55.:24:01.

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

:24:02.:24:08.

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

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

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greater proportion of boys asking for more and feeling aggrieved they

:24:17.:24:21.

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

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

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

:24:35.:24:48.

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

:24:49.:24:54.

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

:24:55.:24:57.

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

:24:58.:25:02.

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

:25:03.:25:07.

social lives are disrupted and that leads to stress and reduced

:25:08.:25:12.

productivity and reduced retention of these people within the

:25:13.:25:16.

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

:25:17.:25:20.

family and friends that is guaranteed, no interruptions. Early

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

:25:27.:25:33.

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

:25:34.:25:38.

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

:25:39.:25:43.

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

:25:44.:25:49.

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

:25:50.:25:56.

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

:25:57.:26:02.

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

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day on BBC. Hello there. Good morning. The

:26:06.:26:21.

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

:26:22.:26:28.

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

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