07/06/2016 BBC Business Live


07/06/2016

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

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

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

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

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

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

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

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We'll hear from both sides of the debate.

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America's Central Bank says positive forces

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We'll translate the cryptic statement from Federal

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And get used to some volatility on European markets.

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That's the warning ahead of the crucial EU Referendum

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Here's how Europe has opened this morning.

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

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

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Can robots and humans work side by side?

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

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

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

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

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With the vote now just weeks away both sides have been

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pushing their financial credentials as they make the case for either

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

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

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

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

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

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passport system which allows UK-based companies to offer

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

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So who is winning when it comes to convincing voters?

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

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

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

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The tight polls means uncertainty and to use a cliche

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You can see here the rising volatility levels of

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

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Rain Newton-Smith, a leading voice supporting Britain

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She's the director of economics for the Confederation

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

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

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

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

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

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

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business, jobs and overall prosperity to remain in the European

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Remain campaign, but negative forecasts is because they believe if

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

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

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

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

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There is good evidence like Switzerland who are more effective

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

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

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

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at making these decisions, these economic decisions, versus the

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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countries do well outside the European Union and plenty do badly

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

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

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plenty more material before you make your choice.

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Hillary Clinton has clinched the Democratic nomination for US

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president after reaching the required number of delegates.

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

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She will become the first female nominee for a major

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Saudi Arabia's cabinet has approved plans to limit

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

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The 'National Transformation Programme' as its known,

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will also cut public spending by 40-per cent over

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

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Greece must pay the International Monetary Fund about $340 million

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

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of repayments to international creditors - totalling

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

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

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

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Leisha Chi is in Singapore for us this morning.

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

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

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fact they have had strong growth numbers recently and policy makers

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are concerned about rising home prices, particularly in Sydney and

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

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

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

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

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

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

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

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

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

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

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

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in a moment. Tokyo shares rose in what was pretty

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lacklustre trading as the market digested comments by Federal Reserve

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

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

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not least her comments of confidence The rebound in commodity

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prices after the dollar weakened has helped boost mining,

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

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to a one month high. US markets also closed higher

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

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strongly outperforming the Dow, which still remains well

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

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

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

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are getting attention from congressional leaders. The head of

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the US transportation Security institution will be before a Senate

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

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

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

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meeting with President Obama. There will be talking about climate

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

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

:14:43.:14:48.

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

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

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Montana, New Jersey, New Mexico and South Dakota.

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

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

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

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read between the lines is the statement. Talking about the

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

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

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reasons to expect that the positive forces supporting growth and higher

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inflation will outweigh the negative ones. I expect the economic

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

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

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

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

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

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

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

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

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

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

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

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

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business live. Can robots and humans

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

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he's the founder of robot firm Magazino -

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

:17:44.:17:46.

Live from BBC News. And now a look at some

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

:17:53.:17:56.

Mike Ashley will face MPs today to defend working conditions

:17:57.:17:58.

at Sports Direct. Last night the retail boss admitted,

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

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for improvements and these But what exactly are MPs

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going to be asking him? Iain Wright, Business,

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Innovation and Skills Select Committee chair

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

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explore about the treatment of workers, that they are searched

:18:29.:18:34.

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

:18:35.:18:39.

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

:18:40.:18:44.

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

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

:18:50.:18:55.

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

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

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

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

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

:19:30.:19:40.

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

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

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

:19:55.:20:03.

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

:20:04.:20:19.

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

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

:20:30.:20:30.

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

:20:31.:20:37.

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

:20:38.:20:40.

Polls over the weekend suggesting that the race had tightened lead

:20:41.:20:44.

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

:20:45.:20:47.

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

:20:48.:21:09.

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

:21:10.:21:14.

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

:21:15.:21:18.

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

:21:19.:21:24.

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

:21:25.:21:31.

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

:21:32.:21:40.

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

:21:41.:21:51.

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

:21:52.:21:55.

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

:21:56.:22:02.

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

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

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

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

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

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

:22:34.:22:43.

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

:22:44.:22:52.

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

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

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

:23:09.:23:11.

In factories around the world, robots are making manufacturing

:23:12.:23:13.

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

:23:14.:23:19.

replaced by either smart software or robots.

:23:20.:23:21.

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

:23:22.:23:24.

also using over 30,000 robots in their facilities.

:23:25.:23:25.

And robots that can work alongside humans is now seen

:23:26.:23:28.

as a major growth area for the industry.

:23:29.:23:30.

Frederik Brantner is the chief executive

:23:31.:23:31.

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

:23:32.:23:35.

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

:23:36.:23:45.

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

:23:46.:23:53.

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

:23:54.:23:59.

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

:24:00.:24:03.

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

:24:04.:24:08.

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

:24:09.:24:16.

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

:24:17.:24:22.

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

:24:23.:24:35.

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

:24:36.:24:41.

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

:24:42.:24:52.

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

:24:53.:24:56.

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

:24:57.:25:01.

clock, what happens when it malfunctions? You maintain it

:25:02.:25:11.

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

:25:12.:25:21.

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

:25:22.:25:31.

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

:25:32.:25:38.

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

:25:39.:25:49.

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

:25:50.:25:51.

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

:25:52.:26:16.

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

:26:17.:26:22.

security. Come the afternoon we are

:26:23.:26:23.

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