07/06/2016 BBC Business Live


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This is Business Live from the BBC with Ben Thompson and Sally Bundock.


Should we stay or should we go. If you want to have your say, you have


until midnight to register. Should we stay or should we go. If


you want to have your say, you have until midnight to register. We will


wake up the economic impact of this historic vote. Live from London, it


is our focus today. Tuesday, the 7th of June.


Will the UK be better off, or worse if it votes to leave the EU


We'll hear from both sides of the debate.


America's Central Bank says positive forces


We'll translate the cryptic statement from Federal


And get used to some volatility on European markets.


That's the warning ahead of the crucial EU Referendum


Here's how Europe has opened this morning.


Shell cuts investment by another 35%. It is vowing to cut costs as


low oil prices persist. The boss has been talking to Simon Jack.


Can robots and humans work side by side?


We'll get the inside track from the man who says they can.


He's the founder of robot firm Magazino - he's with us


Today is the deadline for people in the UK to register if they want


a say in the country's referendum on its EU membership.


With the vote now just weeks away both sides have been


pushing their financial credentials as they make the case for either


The 'Out campaign' says that around 300,000 jobs would be created


if Britain leaves the EU because it could negotiate its own trade deals


The 'In campaign' couldn't see things more differently -


they say unemployment COULD rise by 500,000 if the UK leaves


the Union and say the UK would lose access to the financial services


passport system which allows UK-based companies to offer


And when it comes to the arguments for and against this is just


So who is winning when it comes to convincing voters?


So far the polls have been close but the latest ICM online sample


puts the leave campaign slightly ahead on 48%, with remain on 43%.


If you're wondering why that adds up to 101% - that's because


The tight polls means uncertainty and to use a cliche


You can see here the rising volatility levels of


Just look at how much more volatile trading is now than it


Rain Newton-Smith, a leading voice supporting Britain


She's the director of economics for the Confederation


Also joining us we have got the head of public policy at the Institute


for Economic Affairs, a free-market think tank based in London and he


supports leaving the European Union. Rain, the clock is ticking in


earnest and it is pretty tight. Why do you believe we are where we are


and we need to do that change? What is important for us, we speak for


190,000 businesses. The clear this and this view is it is better for


business, jobs and overall prosperity to remain in the European


Union. It is our access to 500 million consumers across Europe and


also access to over 50 countries outside of Europe, including South


Africa, South Korea and Colombia we have two membership of the European


Union. You call it a clear business view but we have spoken to many


leaders of this and this is, smaller, more medium-sized who don't


necessarily agree with that? I have yet to see any poll of business that


doesn't show a majority who think we're better off in the European


Union. It is some of our smaller members who talk the standardisation


that makes it easier to sell cheese across Europe, not just to UK


consumers. When you are buying goods you want to make sure what is in it


and it is the harmonisation of rules that makes it easier to do business


across Europe. Ryan comment Central London, looking at the latest polls,


it puts you slightly ahead. Most suggesting the polls will get it


wrong because this is unprecedented? I am not a pollster, but they don't


tell us a lot. People are getting engaged in this debate. We are


starting to see the TV clashes. I believe Nigel Farage and David


Cameron will be on after each other this evening on another station.


People are starting to get into this debate and over the next week or so


a lot of the undecided will make up their minds. You have already seen


that to a certain extent, but 11% of voters, according to most polls, or


undecided. Given how tight they are, looks like those voters will swing


it one way or the other. The outer campaign says 300,000 jobs created


if we leave, so where does that figure come from because we have


been told there is no certainty about signing those trade deals.


Europe will be a bit upset because we have decided to leave the club so


there will be no rush to help us create new trade deals? Whether we


stay in or leave, there is risk and opportunities. It is the balance of


those where you should come to some economic judgment. The reason the


Remain campaign, but negative forecasts is because they believe if


we were outside of the European Union we would make bad, political


decisions, make ourselves more insulated from trade and not use our


new-found freedoms on regulation. On the opposite side, the Leave


campaign have suggested we could sign these extra free trade deals.


There is good evidence like Switzerland who are more effective


at signing free trade deals, so it is not a baseless claim. We would


need to get on and do that. Really, this judgment for individuals at


home is, how well would you think our political institutions would be


at making these decisions, these economic decisions, versus the


control being in Brussels. I trust our democratic system more than the


power being centralised in Russells. Rain, has the Remain campaign been


too negative? We have to look at the economic consensus, that where we to


lead the European Union that there would be a negative impact on


growth, jobs over the next 5-10 years. When the IMF, the OECD, the


National Institute in UK, the Treasury have shown there would be a


negative impact on jobs. We know it is young people who are affected


when we see a rise in unemployment, they are the ones most likely to be


impacted. That is what I am concerned about. One of the things


we have got to remember is it is hard to get a common is to agree. We


tend to have loads of different opinions, but what we have seen from


recent polls, nine out of ten economists feel there would be a


serious economic shock if we were to lead the European Union. That is


phenomenal. Most agreed there would be a short-term, economic shock if


we were to leave, but it could be short lived, therefore in the


long-term not bad. These studies also showed that even after ten, to


20 years so when my young children will be entering the jobs market,


the overall size of the UK economy would be smaller than if we left the


European Union. It is our access to trade, the impact on investment. It


is all the impact on financial markets we have seen over recent


days. Ryan, short-term gain, long-term pain, isn't that how it is


seen? There would be some in, and we have a two-year process where


nothing changes and we can use that time to negotiate a new deal. Most


of these organisations use the same models, which I believe are flawed


and make the same assumptions, which tends to be very negative. I just


don't think that output from these models some up with previous studies


we have seen. The European Union itself believes the single market


has added to GDP of the European economy. By about 2.5%. We are


hearing it will lead the single market, the UK will be hit by 6%, so


that doesn't make any sense. If you look around the world, plenty of


countries do well outside the European Union and plenty do badly


in it. Being in the EU is neither a necessary prospect. Thank you both


for your time. Strong arguments on both side. The BBC website has


plenty more material before you make your choice.


Hillary Clinton has clinched the Democratic nomination for US


president after reaching the required number of delegates.


The count puts Mrs Clinton on 2,383 - the number needed


She will become the first female nominee for a major


Saudi Arabia's cabinet has approved plans to limit


It also hopes to create 450,000 new jobs by 2020.


The 'National Transformation Programme' as its known,


will also cut public spending by 40-per cent over


It's part of a number of key initiatives announced in April.


Greece must pay the International Monetary Fund about $340 million


While a relatively small amount - it's the first in a number


of repayments to international creditors - totalling


about $12-billion that are due in June and July.


The Central banks of both India and Australia have held their key


The Bank of Australia held theirs at a record low of 1.75%,


Leisha Chi is in Singapore for us this morning.


No change in the rate? It comes down to uncertainty and as we said,


Australia kept their borrowing costs at a record low. This is due to the


fact they have had strong growth numbers recently and policy makers


are concerned about rising home prices, particularly in Sydney and


Melbourne. They did refer to events risk, which could be any surprises


out of the Fed meeting and Australia's upcoming election next


month. They are still watching the situation quite closely. In India,


we're looking at something called the repurchase rate, the benchmark


and that was held at a five-year low. They're expecting it not to


move or the rest of the year and possibly 2017 because they face an


uphill battle in meeting inflation targets. But it could change with


the new governor, as we know the current one, his term ends in


September and it is undecided as to whether he is going to be


reappointed or not. Good stuff, thank you very much. Another person


excited about no change in interest rates. We will talk about that more


in a moment. Tokyo shares rose in what was pretty


lacklustre trading as the market digested comments by Federal Reserve


chief Janet Yellen, who said overnight that any US interest rate


hike would be gradual - we'll assess that in a moment -


not least her comments of confidence The rebound in commodity


prices after the dollar weakened has helped boost mining,


oil and gas stocks yesterday. That was enough to send the FTSE 100


to a one month high. US markets also closed higher


with the S managing to close at its highest level this year,


strongly outperforming the Dow, which still remains well


below its April highs. That is the picture of the Europe


this morning. We will talk about the vote later, but let's check the day


out ahead on Wall Street. Long security lines at US airports


are getting attention from congressional leaders. The head of


the US transportation Security institution will be before a Senate


committee to talk about delays at screening lines. The Indian Prime


Minister is in Washington and will be meeting with Barack Obama on


Tuesday. It'll be the Prime Minister's seventh face-to-face


meeting with President Obama. There will be talking about climate


change, security and defence and some unresolved trade issues. The


Prime Minister be meeting with US dismiss leaders and will address the


US, India business Council. And the US election, Tuesday will be a busy


day as presidential primaries and caucuses will be held in California,


Montana, New Jersey, New Mexico and South Dakota.


I'm sure you love watching Central banks as well. I spend a lot of time


doing it. It is when we get excited about no change. It is reading


between the lines. The devil in the detail. The one we are trying to


read between the lines is the statement. Talking about the


positives outweighing the negatives. This is what she said yesterday. The


economy has been affected by a mix of countervailing forces, but I seek


reasons to expect that the positive forces supporting growth and higher


inflation will outweigh the negative ones. I expect the economic


situation to improve. It will grow moderately. Positives and negatives.


It is not a huge amount new but not a lot else. The group was quite per


relative to expectations but there is plenty of good things going on. A


lot of the other data she has is a bit more optimistic. Friday's data


was not. On balance she is still optimistic about the economy. I


suspect that is what we will see. I read an article saying July was too


soon, but September was a winner. For the last three years it has


always been three months ahead. I suspect June is out. The market


expectation, she may do something in July. The US economy is ticking


along. That is important for the rest of us. Especially with the vote


in the UK. The US economy is the most important economy in the world.


It is a rising tide which will lift many boats. Thanks for being on


business live. Can robots and humans


work side by side? We meet the man who says they can -


he's the founder of robot firm Magazino -


he's with us later in the programme. You're with Business


Live from BBC News. And now a look at some


of the stories from around the UK. The boss of Sports Direct,


Mike Ashley will face MPs today to defend working conditions


at Sports Direct. Last night the retail boss admitted,


in a letter to his staff, that there had been a need


for improvements and these But what exactly are MPs


going to be asking him? Iain Wright, Business,


Innovation and Skills Select Committee chair


spoke to the BBC earlier. There are allegations we need to


explore about the treatment of workers, that they are searched


after a shift and not paid for that, which can take them below minimum


wage, there is talk of six strikes and you're out, that every time


you're seen by the management is doing something wrong you get a


strike. Those can include taking too long to go to the toilet, wanting to


have water. We are looking at those and saying, do we really want those


practices in Britain in 2016? We will be asking him whether he


condones them and is aware of them. Mr Smith was also asked about the


HS. They asked him what he wants to hear. It has consequences, not just


for those losing their jobs. How do we buy and sell companies. We think


it is of extreme concern that people can take hundreds of millions of


pounds out of business, don't invest it, has been bankrupt. We want to


find out what happened, and what are the checks and balances. That was


Ian Wright speaking to us earlier. There is a lot more about Sports


Direct on the website. Also more detail about the of big news.


You're watching Business Live, our top story...


People in the UK have until just before midnight tonight to register


to be able to vote in the referendum on whether the UK stays


Polls over the weekend suggesting that the race had tightened lead


to a drop in the value of sterling with exchange rates for the UK


The oil giant Shell says it is to cut investments and is struggling


with lower oil prices. They said they will cut investment by 35% over


the next four Mac years and expect to make $4.5 billion worth of


savings from the merger with the BG Group. That is higher than the


previous estimate. He was the boss of Shell speaking to our business


editor. What we're doing is setting out a mid-term strategy. I wanted to


be a world-class investment opportunity, we will have a strong


focus on improving returns and free cash, BG will be a great enabler in


it for a number of reasons. We've had it for a hundred days, we know


what we've got, and we like it. It is worth more than we paid for it.


It is worth more than we thought it was. Didn't you pay too much for it?


You bought it and then the oil price collapsed, making it look like a


terrible mistake. Are you seeing going back you would do exactly the


same? Absolutely. You would pay the same price? I did not have a choice


at the time, but if you look back, what did we get, what did we pay for


it? How much debt did we take on? If you take the outlook on the 15th of


February, the company is worth more than $10 million a month.


One to watch as all the oil firms try to cut back.


Now - there's no escaping the rise of the robots.


In factories around the world, robots are making manufacturing


One study says that by 2025, up to a quarter of jobs will be


replaced by either smart software or robots.


Amazon for example may employ over 230,000 people but they are now


also using over 30,000 robots in their facilities.


And robots that can work alongside humans is now seen


as a major growth area for the industry.


Frederik Brantner is the chief executive


and co-founder of Magazino and he joins us now.


Explain how this works. We are building a robot, so if you order


something online, for example shoes, you would need to walk to the shelf,


was only automation for palates. Now we can retrieve the single item. It


is the first time robots work side-by-side with humans in this


way, that it stops if a human gets in the way. We've seen robots taking


over in many other places as well and it's about bringing together


human interaction and robots. How significant is that? In the past it


was a robot arm which the David -- decided what to do. But if something


changed, they would not be working. But now they have computer vision


and this is the big change, they get smarter, computer vision makes the


robot work together with the human. It costs 100,000 euros to buy this


robot, but it will replace several humans and it can work around the


clock, what happens when it malfunctions? You maintain it


constantly, there is a software upgrade, the main thing is it works


alongside humans. This working side-by-side enables the human to


have a better job. At the same time, the robot can do what he is good.


You can see the robot here, they have a mind of their own. They do


malfunction. It has been great to have you on the show. Thank you for


bringing in the robot. If you are starting off with morning


sunshine and cloud free skies, don't be lulled into a false sense of


security. Come the afternoon we are


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