:00:10. > :00:16.This is Business Live from the BBC with Ben Thompson and Sally Bundock.
:00:17. > :00:23.Should we stay or should we go. If you want to have your say, you have
:00:24. > :00:26.until midnight to register. Should we stay or should we go. If
:00:27. > :00:30.you want to have your say, you have until midnight to register. We will
:00:31. > :00:35.wake up the economic impact of this historic vote. Live from London, it
:00:36. > :00:48.is our focus today. Tuesday, the 7th of June.
:00:49. > :00:51.Will the UK be better off, or worse if it votes to leave the EU
:00:52. > :00:54.We'll hear from both sides of the debate.
:00:55. > :00:58.America's Central Bank says positive forces
:00:59. > :01:03.We'll translate the cryptic statement from Federal
:01:04. > :01:08.And get used to some volatility on European markets.
:01:09. > :01:10.That's the warning ahead of the crucial EU Referendum
:01:11. > :01:18.Here's how Europe has opened this morning.
:01:19. > :01:27.Shell cuts investment by another 35%. It is vowing to cut costs as
:01:28. > :01:31.low oil prices persist. The boss has been talking to Simon Jack.
:01:32. > :01:35.Can robots and humans work side by side?
:01:36. > :01:37.We'll get the inside track from the man who says they can.
:01:38. > :01:41.He's the founder of robot firm Magazino - he's with us
:01:42. > :02:03.Today is the deadline for people in the UK to register if they want
:02:04. > :02:06.a say in the country's referendum on its EU membership.
:02:07. > :02:09.With the vote now just weeks away both sides have been
:02:10. > :02:11.pushing their financial credentials as they make the case for either
:02:12. > :02:19.The 'Out campaign' says that around 300,000 jobs would be created
:02:20. > :02:22.if Britain leaves the EU because it could negotiate its own trade deals
:02:23. > :02:26.The 'In campaign' couldn't see things more differently -
:02:27. > :02:30.they say unemployment COULD rise by 500,000 if the UK leaves
:02:31. > :02:33.the Union and say the UK would lose access to the financial services
:02:34. > :02:37.passport system which allows UK-based companies to offer
:02:38. > :02:43.And when it comes to the arguments for and against this is just
:02:44. > :02:48.So who is winning when it comes to convincing voters?
:02:49. > :02:51.So far the polls have been close but the latest ICM online sample
:02:52. > :02:58.puts the leave campaign slightly ahead on 48%, with remain on 43%.
:02:59. > :03:02.If you're wondering why that adds up to 101% - that's because
:03:03. > :03:07.The tight polls means uncertainty and to use a cliche
:03:08. > :03:12.You can see here the rising volatility levels of
:03:13. > :03:18.Just look at how much more volatile trading is now than it
:03:19. > :03:32.Rain Newton-Smith, a leading voice supporting Britain
:03:33. > :03:37.She's the director of economics for the Confederation
:03:38. > :03:50.Also joining us we have got the head of public policy at the Institute
:03:51. > :04:01.for Economic Affairs, a free-market think tank based in London and he
:04:02. > :04:07.supports leaving the European Union. Rain, the clock is ticking in
:04:08. > :04:17.earnest and it is pretty tight. Why do you believe we are where we are
:04:18. > :04:22.and we need to do that change? What is important for us, we speak for
:04:23. > :04:27.190,000 businesses. The clear this and this view is it is better for
:04:28. > :04:32.business, jobs and overall prosperity to remain in the European
:04:33. > :04:35.Union. It is our access to 500 million consumers across Europe and
:04:36. > :04:39.also access to over 50 countries outside of Europe, including South
:04:40. > :04:43.Africa, South Korea and Colombia we have two membership of the European
:04:44. > :04:47.Union. You call it a clear business view but we have spoken to many
:04:48. > :04:50.leaders of this and this is, smaller, more medium-sized who don't
:04:51. > :04:56.necessarily agree with that? I have yet to see any poll of business that
:04:57. > :05:01.doesn't show a majority who think we're better off in the European
:05:02. > :05:04.Union. It is some of our smaller members who talk the standardisation
:05:05. > :05:10.that makes it easier to sell cheese across Europe, not just to UK
:05:11. > :05:18.consumers. When you are buying goods you want to make sure what is in it
:05:19. > :05:23.and it is the harmonisation of rules that makes it easier to do business
:05:24. > :05:27.across Europe. Ryan comment Central London, looking at the latest polls,
:05:28. > :05:30.it puts you slightly ahead. Most suggesting the polls will get it
:05:31. > :05:35.wrong because this is unprecedented? I am not a pollster, but they don't
:05:36. > :05:38.tell us a lot. People are getting engaged in this debate. We are
:05:39. > :05:41.starting to see the TV clashes. I believe Nigel Farage and David
:05:42. > :05:47.Cameron will be on after each other this evening on another station.
:05:48. > :05:55.People are starting to get into this debate and over the next week or so
:05:56. > :06:01.a lot of the undecided will make up their minds. You have already seen
:06:02. > :06:05.that to a certain extent, but 11% of voters, according to most polls, or
:06:06. > :06:08.undecided. Given how tight they are, looks like those voters will swing
:06:09. > :06:13.it one way or the other. The outer campaign says 300,000 jobs created
:06:14. > :06:17.if we leave, so where does that figure come from because we have
:06:18. > :06:21.been told there is no certainty about signing those trade deals.
:06:22. > :06:27.Europe will be a bit upset because we have decided to leave the club so
:06:28. > :06:33.there will be no rush to help us create new trade deals? Whether we
:06:34. > :06:38.stay in or leave, there is risk and opportunities. It is the balance of
:06:39. > :06:40.those where you should come to some economic judgment. The reason the
:06:41. > :06:44.Remain campaign, but negative forecasts is because they believe if
:06:45. > :06:47.we were outside of the European Union we would make bad, political
:06:48. > :06:52.decisions, make ourselves more insulated from trade and not use our
:06:53. > :06:59.new-found freedoms on regulation. On the opposite side, the Leave
:07:00. > :07:04.campaign have suggested we could sign these extra free trade deals.
:07:05. > :07:07.There is good evidence like Switzerland who are more effective
:07:08. > :07:17.at signing free trade deals, so it is not a baseless claim. We would
:07:18. > :07:22.need to get on and do that. Really, this judgment for individuals at
:07:23. > :07:25.home is, how well would you think our political institutions would be
:07:26. > :07:29.at making these decisions, these economic decisions, versus the
:07:30. > :07:37.control being in Brussels. I trust our democratic system more than the
:07:38. > :07:43.power being centralised in Russells. Rain, has the Remain campaign been
:07:44. > :07:47.too negative? We have to look at the economic consensus, that where we to
:07:48. > :07:51.lead the European Union that there would be a negative impact on
:07:52. > :07:57.growth, jobs over the next 5-10 years. When the IMF, the OECD, the
:07:58. > :08:03.National Institute in UK, the Treasury have shown there would be a
:08:04. > :08:08.negative impact on jobs. We know it is young people who are affected
:08:09. > :08:15.when we see a rise in unemployment, they are the ones most likely to be
:08:16. > :08:20.impacted. That is what I am concerned about. One of the things
:08:21. > :08:28.we have got to remember is it is hard to get a common is to agree. We
:08:29. > :08:32.tend to have loads of different opinions, but what we have seen from
:08:33. > :08:35.recent polls, nine out of ten economists feel there would be a
:08:36. > :08:38.serious economic shock if we were to lead the European Union. That is
:08:39. > :08:42.phenomenal. Most agreed there would be a short-term, economic shock if
:08:43. > :08:46.we were to leave, but it could be short lived, therefore in the
:08:47. > :08:52.long-term not bad. These studies also showed that even after ten, to
:08:53. > :08:55.20 years so when my young children will be entering the jobs market,
:08:56. > :09:00.the overall size of the UK economy would be smaller than if we left the
:09:01. > :09:04.European Union. It is our access to trade, the impact on investment. It
:09:05. > :09:09.is all the impact on financial markets we have seen over recent
:09:10. > :09:15.days. Ryan, short-term gain, long-term pain, isn't that how it is
:09:16. > :09:19.seen? There would be some in, and we have a two-year process where
:09:20. > :09:23.nothing changes and we can use that time to negotiate a new deal. Most
:09:24. > :09:28.of these organisations use the same models, which I believe are flawed
:09:29. > :09:32.and make the same assumptions, which tends to be very negative. I just
:09:33. > :09:38.don't think that output from these models some up with previous studies
:09:39. > :09:43.we have seen. The European Union itself believes the single market
:09:44. > :09:48.has added to GDP of the European economy. By about 2.5%. We are
:09:49. > :09:56.hearing it will lead the single market, the UK will be hit by 6%, so
:09:57. > :10:00.that doesn't make any sense. If you look around the world, plenty of
:10:01. > :10:06.countries do well outside the European Union and plenty do badly
:10:07. > :10:11.in it. Being in the EU is neither a necessary prospect. Thank you both
:10:12. > :10:18.for your time. Strong arguments on both side. The BBC website has
:10:19. > :10:21.plenty more material before you make your choice.
:10:22. > :10:26.Hillary Clinton has clinched the Democratic nomination for US
:10:27. > :10:28.president after reaching the required number of delegates.
:10:29. > :10:31.The count puts Mrs Clinton on 2,383 - the number needed
:10:32. > :10:36.She will become the first female nominee for a major
:10:37. > :10:41.Saudi Arabia's cabinet has approved plans to limit
:10:42. > :10:46.It also hopes to create 450,000 new jobs by 2020.
:10:47. > :10:49.The 'National Transformation Programme' as its known,
:10:50. > :10:53.will also cut public spending by 40-per cent over
:10:54. > :11:06.It's part of a number of key initiatives announced in April.
:11:07. > :11:09.Greece must pay the International Monetary Fund about $340 million
:11:10. > :11:13.While a relatively small amount - it's the first in a number
:11:14. > :11:22.of repayments to international creditors - totalling
:11:23. > :11:27.about $12-billion that are due in June and July.
:11:28. > :11:32.The Central banks of both India and Australia have held their key
:11:33. > :11:44.The Bank of Australia held theirs at a record low of 1.75%,
:11:45. > :11:49.Leisha Chi is in Singapore for us this morning.
:11:50. > :12:02.No change in the rate? It comes down to uncertainty and as we said,
:12:03. > :12:09.Australia kept their borrowing costs at a record low. This is due to the
:12:10. > :12:13.fact they have had strong growth numbers recently and policy makers
:12:14. > :12:17.are concerned about rising home prices, particularly in Sydney and
:12:18. > :12:21.Melbourne. They did refer to events risk, which could be any surprises
:12:22. > :12:26.out of the Fed meeting and Australia's upcoming election next
:12:27. > :12:30.month. They are still watching the situation quite closely. In India,
:12:31. > :12:35.we're looking at something called the repurchase rate, the benchmark
:12:36. > :12:44.and that was held at a five-year low. They're expecting it not to
:12:45. > :12:47.move or the rest of the year and possibly 2017 because they face an
:12:48. > :12:51.uphill battle in meeting inflation targets. But it could change with
:12:52. > :12:55.the new governor, as we know the current one, his term ends in
:12:56. > :13:00.September and it is undecided as to whether he is going to be
:13:01. > :13:04.reappointed or not. Good stuff, thank you very much. Another person
:13:05. > :13:06.excited about no change in interest rates. We will talk about that more
:13:07. > :13:10.in a moment. Tokyo shares rose in what was pretty
:13:11. > :13:13.lacklustre trading as the market digested comments by Federal Reserve
:13:14. > :13:16.chief Janet Yellen, who said overnight that any US interest rate
:13:17. > :13:19.hike would be gradual - we'll assess that in a moment -
:13:20. > :13:22.not least her comments of confidence The rebound in commodity
:13:23. > :13:29.prices after the dollar weakened has helped boost mining,
:13:30. > :13:36.oil and gas stocks yesterday. That was enough to send the FTSE 100
:13:37. > :13:40.to a one month high. US markets also closed higher
:13:41. > :13:46.with the S managing to close at its highest level this year,
:13:47. > :13:50.strongly outperforming the Dow, which still remains well
:13:51. > :14:02.below its April highs. That is the picture of the Europe
:14:03. > :14:04.this morning. We will talk about the vote later, but let's check the day
:14:05. > :14:12.out ahead on Wall Street. Long security lines at US airports
:14:13. > :14:17.are getting attention from congressional leaders. The head of
:14:18. > :14:22.the US transportation Security institution will be before a Senate
:14:23. > :14:25.committee to talk about delays at screening lines. The Indian Prime
:14:26. > :14:31.Minister is in Washington and will be meeting with Barack Obama on
:14:32. > :14:34.Tuesday. It'll be the Prime Minister's seventh face-to-face
:14:35. > :14:38.meeting with President Obama. There will be talking about climate
:14:39. > :14:42.change, security and defence and some unresolved trade issues. The
:14:43. > :14:48.Prime Minister be meeting with US dismiss leaders and will address the
:14:49. > :14:53.US, India business Council. And the US election, Tuesday will be a busy
:14:54. > :14:59.day as presidential primaries and caucuses will be held in California,
:15:00. > :15:08.Montana, New Jersey, New Mexico and South Dakota.
:15:09. > :15:16.I'm sure you love watching Central banks as well. I spend a lot of time
:15:17. > :15:22.doing it. It is when we get excited about no change. It is reading
:15:23. > :15:30.between the lines. The devil in the detail. The one we are trying to
:15:31. > :15:33.read between the lines is the statement. Talking about the
:15:34. > :15:42.positives outweighing the negatives. This is what she said yesterday. The
:15:43. > :15:48.economy has been affected by a mix of countervailing forces, but I seek
:15:49. > :15:50.reasons to expect that the positive forces supporting growth and higher
:15:51. > :16:03.inflation will outweigh the negative ones. I expect the economic
:16:04. > :16:13.situation to improve. It will grow moderately. Positives and negatives.
:16:14. > :16:19.It is not a huge amount new but not a lot else. The group was quite per
:16:20. > :16:27.relative to expectations but there is plenty of good things going on. A
:16:28. > :16:32.lot of the other data she has is a bit more optimistic. Friday's data
:16:33. > :16:42.was not. On balance she is still optimistic about the economy. I
:16:43. > :16:51.suspect that is what we will see. I read an article saying July was too
:16:52. > :16:58.soon, but September was a winner. For the last three years it has
:16:59. > :17:06.always been three months ahead. I suspect June is out. The market
:17:07. > :17:16.expectation, she may do something in July. The US economy is ticking
:17:17. > :17:21.along. That is important for the rest of us. Especially with the vote
:17:22. > :17:25.in the UK. The US economy is the most important economy in the world.
:17:26. > :17:31.It is a rising tide which will lift many boats. Thanks for being on
:17:32. > :17:37.business live. Can robots and humans
:17:38. > :17:40.work side by side? We meet the man who says they can -
:17:41. > :17:43.he's the founder of robot firm Magazino -
:17:44. > :17:46.he's with us later in the programme. You're with Business
:17:47. > :17:52.Live from BBC News. And now a look at some
:17:53. > :17:56.of the stories from around the UK. The boss of Sports Direct,
:17:57. > :17:58.Mike Ashley will face MPs today to defend working conditions
:17:59. > :18:00.at Sports Direct. Last night the retail boss admitted,
:18:01. > :18:03.in a letter to his staff, that there had been a need
:18:04. > :18:05.for improvements and these But what exactly are MPs
:18:06. > :18:09.going to be asking him? Iain Wright, Business,
:18:10. > :18:10.Innovation and Skills Select Committee chair
:18:11. > :18:28.spoke to the BBC earlier. There are allegations we need to
:18:29. > :18:34.explore about the treatment of workers, that they are searched
:18:35. > :18:39.after a shift and not paid for that, which can take them below minimum
:18:40. > :18:44.wage, there is talk of six strikes and you're out, that every time
:18:45. > :18:49.you're seen by the management is doing something wrong you get a
:18:50. > :18:55.strike. Those can include taking too long to go to the toilet, wanting to
:18:56. > :19:02.have water. We are looking at those and saying, do we really want those
:19:03. > :19:10.practices in Britain in 2016? We will be asking him whether he
:19:11. > :19:21.condones them and is aware of them. Mr Smith was also asked about the
:19:22. > :19:29.HS. They asked him what he wants to hear. It has consequences, not just
:19:30. > :19:40.for those losing their jobs. How do we buy and sell companies. We think
:19:41. > :19:49.it is of extreme concern that people can take hundreds of millions of
:19:50. > :19:54.pounds out of business, don't invest it, has been bankrupt. We want to
:19:55. > :20:03.find out what happened, and what are the checks and balances. That was
:20:04. > :20:19.Ian Wright speaking to us earlier. There is a lot more about Sports
:20:20. > :20:29.Direct on the website. Also more detail about the of big news.
:20:30. > :20:30.You're watching Business Live, our top story...
:20:31. > :20:37.People in the UK have until just before midnight tonight to register
:20:38. > :20:40.to be able to vote in the referendum on whether the UK stays
:20:41. > :20:44.Polls over the weekend suggesting that the race had tightened lead
:20:45. > :20:47.to a drop in the value of sterling with exchange rates for the UK
:20:48. > :21:09.The oil giant Shell says it is to cut investments and is struggling
:21:10. > :21:14.with lower oil prices. They said they will cut investment by 35% over
:21:15. > :21:18.the next four Mac years and expect to make $4.5 billion worth of
:21:19. > :21:24.savings from the merger with the BG Group. That is higher than the
:21:25. > :21:31.previous estimate. He was the boss of Shell speaking to our business
:21:32. > :21:40.editor. What we're doing is setting out a mid-term strategy. I wanted to
:21:41. > :21:51.be a world-class investment opportunity, we will have a strong
:21:52. > :21:55.focus on improving returns and free cash, BG will be a great enabler in
:21:56. > :22:02.it for a number of reasons. We've had it for a hundred days, we know
:22:03. > :22:06.what we've got, and we like it. It is worth more than we paid for it.
:22:07. > :22:17.It is worth more than we thought it was. Didn't you pay too much for it?
:22:18. > :22:21.You bought it and then the oil price collapsed, making it look like a
:22:22. > :22:28.terrible mistake. Are you seeing going back you would do exactly the
:22:29. > :22:33.same? Absolutely. You would pay the same price? I did not have a choice
:22:34. > :22:43.at the time, but if you look back, what did we get, what did we pay for
:22:44. > :22:52.it? How much debt did we take on? If you take the outlook on the 15th of
:22:53. > :23:00.February, the company is worth more than $10 million a month.
:23:01. > :23:08.One to watch as all the oil firms try to cut back.
:23:09. > :23:11.Now - there's no escaping the rise of the robots.
:23:12. > :23:13.In factories around the world, robots are making manufacturing
:23:14. > :23:19.One study says that by 2025, up to a quarter of jobs will be
:23:20. > :23:21.replaced by either smart software or robots.
:23:22. > :23:24.Amazon for example may employ over 230,000 people but they are now
:23:25. > :23:25.also using over 30,000 robots in their facilities.
:23:26. > :23:28.And robots that can work alongside humans is now seen
:23:29. > :23:30.as a major growth area for the industry.
:23:31. > :23:31.Frederik Brantner is the chief executive
:23:32. > :23:35.and co-founder of Magazino and he joins us now.
:23:36. > :23:45.Explain how this works. We are building a robot, so if you order
:23:46. > :23:53.something online, for example shoes, you would need to walk to the shelf,
:23:54. > :23:59.was only automation for palates. Now we can retrieve the single item. It
:24:00. > :24:03.is the first time robots work side-by-side with humans in this
:24:04. > :24:08.way, that it stops if a human gets in the way. We've seen robots taking
:24:09. > :24:16.over in many other places as well and it's about bringing together
:24:17. > :24:22.human interaction and robots. How significant is that? In the past it
:24:23. > :24:35.was a robot arm which the David -- decided what to do. But if something
:24:36. > :24:41.changed, they would not be working. But now they have computer vision
:24:42. > :24:52.and this is the big change, they get smarter, computer vision makes the
:24:53. > :24:56.robot work together with the human. It costs 100,000 euros to buy this
:24:57. > :25:01.robot, but it will replace several humans and it can work around the
:25:02. > :25:11.clock, what happens when it malfunctions? You maintain it
:25:12. > :25:21.constantly, there is a software upgrade, the main thing is it works
:25:22. > :25:31.alongside humans. This working side-by-side enables the human to
:25:32. > :25:38.have a better job. At the same time, the robot can do what he is good.
:25:39. > :25:49.You can see the robot here, they have a mind of their own. They do
:25:50. > :25:51.malfunction. It has been great to have you on the show. Thank you for
:25:52. > :26:16.bringing in the robot. If you are starting off with morning
:26:17. > :26:22.sunshine and cloud free skies, don't be lulled into a false sense of
:26:23. > :26:23.security. Come the afternoon we are