10/06/2016 BBC Business Live


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Do you have the skills needed to compete with automation


Most of us think we do, but there's a good chance we're wrong.


Live from London, that's our top story on Friday the 10th June.


The robots are coming and we don't want to admit


That's just one of the findings from a report out today into how


we view our skills and those of our colleagues.


Also in the programme - Nigeria's Naira nightmare.


Africa's biggest economy faces its worst crisis in decades,


as airlines pull out and foreign currency runs low.


And bond yields fall across the globe.


Surging investor demand sends 15-year Japanese yields below


And we'll be getting the inside track on some of biggest


stories that have been moving the markets this


very low US jobs numbers which have, once again, the markets guessing


about when the world's biggest economy will raise


And we're also looking at Lenovo's new smartphone -


apparently clever enough to grasp your physical surroundings


So today we want to know what you think.


If your phone could do one thing it doesn't do now,


How many of the following statements do you agree with?


There's no such thing as a job for life.


You're overqualified for the job you're in.


And you worry that robots might replace you in the office one day.


If they all sound familiar, you're not alone.


Let me take you through the findings of a study by City and Guilds.


Over half of all respondents from the UK, US,


India and South Africa believe they are overqualified


there is no such thing as a job for life.


Interestingly, 70% of CEOs and senior leaders


across all countries agreed that automation and artificial


intelligence could replace a number of jobs in their organisation


Compare that to the people who work for them.


Just 53% of general employees believe a significant number


The debate about whether machines will eliminate the need for human


employment is no longer just academic, of course.


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


will be replaced by either smart software or robots.


Micky Dragoo is a skills ambassador and Director at City Guilds.


Great to have you in the studio. Fascinating stuff, and one thing


that Victoria was just reading out that really stood out to me was the


difference in the thinking, the perception of robots, so the bosses


think... More bosses think, some of these jobs, our workers can be


replaced by robots, where as workers are going, "No, they can't". The


awareness among senior leaders and bosses is much higher about what


these trends might mean for the future of work and where I think


normal Google at their desks are thinking, "I don't really know how


this is going to affect me,"... It is fascinating. I've forgotten the


number but the majority are thinking they are over skilled for the job.


Is that just a human instinct? We think we are better really. People


are quite poor at judging their own efficiency levels and how well they


do their own jobs, so I think it is quite a human thing and one of the


interesting things we saw is that the more senior you are, the more


likely you are to be confident in your skills. And across the entire


report, 95 per cent of people were confident in their skills, which was


a big surprise to us? We often talk about the skills gap in business. It


is a challenge for recruiters. But I wonder if we have the leadership


skills we need to deal with these major trends, organisation,


globalisation, because a lot of people don't have that much faith in


their own bosses. The survey respondents agree with you. That was


one of the top areas across the markets we looked at, saying that


management skills is where we see a gap and the general employees were


more likely to see a leadership Gap than the bosses. The study was in


four countries. And a group of economies, the UK, the US, India,


South Africa. So very eclectic economies. One thing that is


interesting is that we are all the same. The findings didn't


differentiate that much. Which we went expecting. We purposely chose


those countries because they are so different in their economies, their


demographics, but, actually, across-the-board, are pretty similar


feeling about how people see their rates skills and the skills of their


organisations, as being OK for the future. They're not consented top


Short and sweet, we have to leave it there. Do you think robots could do


this job? Never! I can tell you some producers who could easily be


replaced by robots! Micky Dragoo, thank you. Have a great weekend.


Africa's largest economy is facing its worst crisis in decades.


The price of oil - which is how the country


makes most of its money - is less than half what


As a result, growth is at a standstill,


and there's a shortage of foreign currency.


Now, two major airlines - United and Iberia -


have said they will no longer fly to the country because of a lack


of demand and trouble collecting payments.


Earlier, I spoke to Anna Rosenberg from the Frontier Strategy Group.


She explained how serious this lack of foreign currency is for Nigeria.


You have a massive problem would the inflation rate now because prices


are going up for pretty much everything. Simple things like


tomatoes, a 100 increase. Is that one of the reasons why Nigeria's


government is reluctant to put its currency, floated, let it reflect


reality? Angolan, another exporter of oil, did that. Is Nigeria


reluctant because if it devalues it, things just go up? That's one of the


reasons. The fear of hyperinflation. There is a lot of political fear,


too, because the president, who had a brief stint in power in the 80s,


witnessed a period of massive currency depreciation men and that


was supposed to feel local industrialisation but didn't and


cause massive price increases and a major economic crisis. So he's kind


of reluctant to contribute to a new depreciation of the economy but


quite frankly, at this point, it is a necessity. A quick look at some of


the other news. The downturn in the UK oil and gas


sector could could have cost more than 120,000 jobs by the end of this


year, according to a report. Oil Gas UK says 84,000 jobs linked


to the industry went in 2015, with 40,000 losses


expected this year. Many companies have been struggling


with the slump in the price of oil - Tesco has announced it is to sell


its Giraffe restaurant chain for an undisclosed sum. It comes just three


years after Tesco bought the restaurant chain for 49 million


quid. The sale includes 50. The lone restaurants and three that sit


inside Tesco Stores hit the supermarket has also disposed of its


95 present stake in a Turkish grocery business to a local rival.


-- 95%. India has rejected Google's plans to


collect images of its Street view service. In something of a real


objection to the security agencies in that country. Officials are


concerned that the scheme would compromise the country's security.


Google collect high-definition images to give users 360 degrees


views of streets, hills and rivers. Euro... You have to live on another


planet... It's a very early start for me, I can't control myself. You


have to be another planet not to overcome a great euros kick-off in a


few hours. We are going to talk about it later in the programme but


interesting, the sponsorship, this year several companies paid to be


part of the official sponsorship. It is up pathetic is that compared to


the last one but some new friends. You've heard of Carlsberg, right?


We've all heard of Carlsberg, Nikkei, but what about a Chinese


tech company? And the Azerbaijan state oil company. Go figure.


New football fans. Let's take a look at


the stories breaking in Asia. A popular Japanese


mobile-messaging service, Line, has just received approval to float


on the Tokyo stock exchange. Have you ever heard of Line?


No. The company will also list shares


in New York and could be one of the biggest


floatations of the year. Mariko Oi has been


following the story. We have not heard of Line. Tell us a


bit more about that. And it is a dual listing? That's right, and I


think that's precisely why the company wants to list its shares,


because it's got about 200 million active monthly users, very popular


in Japan, but it isn't really well-known in the US, in Europe, so


in addition to raising about $1 billion through a dual listing in


Tokyo and in New York on the 15th of July, the company hopes to raise its


profile as well. It is a relatively new company, been around rebel five


years, and very popular among young Japanese people but it gained


popularity after the earthquake in 2011 when all the phone services


were down and people found it very useful to be able to send messages


to each other for free but still with 200 million active users, it is


way behind companies like WhatsApp or Facebook messenger, so it really


hopes to raise its profile with this listing. Fascinating. Thanks very


much. It was a very weak


session over in Asia. China and Taiwan are


still on holiday. But for the rest of the continent,


it has been the weakest day The big market story is not


in equities, it's in bond markets - more on that coming up in a moment


with David Buik. But first let's check in with where


the European session is headed. There seems to be reduced appetite


to take risk in the market. The fall in oil is also putting some


downward pressure on energy stocks. Now, let's hear from Samira Hussain,


who has the details about what's Happening on Friday,


an early look at consumer sentiment This tells us how confident people


are feeling about the US economy. This is a number also closely


watched by the Federal Reserve, The expectation is that consumer


sentiment will have gone up from the month of June,


as Americans are seeing big But, last month's dismal jobs report


tempered some earlier optimism Americans were seeing


in the labour market. And as for the Federal Reserve,


they will be looking at consumer sentiment but no one is expecting


to see a rise in interest rates Joining us is David Buik


from Panmure Gordon. Good to see you, happy Friday. Happy


Friday to you. You are very keen on this and it is a big story. You


found this. There is a lot of turmoil going on


in the bombard it is, a lot of investor demand. People are putting


a lot of money into the bond markets and it has pushed the yields down on


a lot of government debt. So it means that the Japanese yields on


the 15 year debt has gone negative for the first time. This is a tweak


that we thought was interesting. He said global yields lowest in


history. He said there was negative rate bonds. He says it is a


supernova that will one day explode. How concerned should we be about the


fear that is going on in the bond markets? Today or next week, next


year, no, but in the next five years, yes. The problem is, and you


mentioned it very sick sinker, we mustn't forget - and I have to use


the word damage - because it is damaged. The world is in such a


parlous state -- was in such a parlous state in 2008-9, most of the


world Banks were forced to what interest rates out. You've got an


equity market that perhaps in a way is beginning to look fully valued.


The world's growth seems to be coming down right across the


spectrum. But if you take your money out of equities, many people have


got massive capital gains to pay and also, you're surrendering a pretty


decent dividend, which could be anything between 2% and a big


company like mm shell, where you're getting seven percentage you have to


think carefully. There has also been a huge, what I would call


apocalyptic, hysteria about Brexit and the threats to the bond market


to talk this is only a tiny element of it and the fact of the matter is


that if there was a real fear, we would see bond yields, particularly


in ten years Gill yields, lower. You mentioned Brexit and for our


worldview was a uninitiated, we're talking about the UK referendum to


stay or leave the EU to dock it certainly had an impact on the


British pound so far. It would be wrong of me to deny that. Guitars.


But we've also had some hysteria from the politicians and the


regulators. The regulators, particularly the Bank of England, is


obliged and has a duty of care to tell us exactly what they think the


damage could be but it has been embellished rather more than it


should. Since November of last year, and I would say there was an awful


and at this, that the UK economy, which was at 2.4% last year GDP, we


could end up this year at 1%, so the pound is down nine present in value


since then. So if you asked me, if there was a Brexit, where is the


pound going to fall? I would say to you that I don't know but at the


best gets I would say 10%. -- best guess. It will ease our borrowing


requirements. If you are worried about the pound, the two of you, and


ensure you're not, how about the euro? In about six months, that


group of countries politically seems unstable to me and also the debt


mountain is colossal. I am only interested in the pie


because I want to go on holiday. Are you going to come back and take us


through the papers. Is the world economy in worse shape


than we first thought? This week the US posted some


of its worst job numbers in recent years and the head


of the World Trade Organisation warned of slowing global


growth for years to come. We're going to be asking our


economics correspondent if it's now You're with Business


Live from BBC News. In case you hadn't noticed,


the Euro 2016 football And what better topic to kick-start


the event than pubs? The brewers Fuller, Smith


and Turner, or Fullers, has just The company has 400 managed


and tenanted pubs across London and the south of England


and exports to 68 countries. And we are joined by


the company CEO, Simon Emeny, Bees seemed to be good figures, but


let's look ahead, how much of a boost you expecting from these


euros? It has been another excellent year for the company. You ask about


the euros. Like every sports fan and teams approach these tournaments


with great optimism. We have four home nations this year, so we are


very excited. We think tomorrow will be a very busy day. Is there some


numbers you can give? Some will say it can be triple the boost, just


over the month of the tournament. Trying to work out how much more


business will you generate? It is difficult to put a number on. During


the last financial year we had the Rugby World Cup, which England did


not do particularly well in. But it was busiest month of the year for


London pride sales across the business. If England do well in the


tournament it will have a big impact on the amount of year consumed in


our pubs. You employ a lot of young people across your pubs, what impact


has the national living wage will have, will there be any closures? We


took the decision to pay the national living wage to our staff


early, irrespective of their age if they are on a development programme.


That is where it will have an impact on our business, weekly or


increasing investment in training and we want young people to join as


a career. Fresh food is important and we want people to join us,


develop their careers with us and add fans through the company. Simon,


thank you for your time. Pubs have extended their opening times for the


90th birthday of the Queen. Check it out on our website.


Our top stories. We are surrounded by robotic cameras in this studio,


so we know what it feels like. Let's move on.


And now let's get the inside track on the economic week


with our correspondent, Andrew Walker.


The last week has seen continued speculation about the Fed,


She has described those figures as concerning. A couple of months that


were disappointing, people with jobs, 80,000 in the US, it really


needs 120,000 to keep up with the growing population. It is striking


what it has done to an expectation of an interest rate rise. Bloomberg


's have put together the possibility of an interest rise in a meeting


last week. The figure was 22%, so probably not. Now the figure is zero


for this month. You have to get up to December before you get to the


probability of more than 50%. We probably are, on that race is going


to get an interest rate rise this year, but just the one and late. The


director-general of the World Trade Organisation said red Britain would


not have the same leveraged if they leave the EU, Brexit. He takes the


view that the trade position would be this set with uncertainty. He


cannot tell us what agreements the rest of the members say. He said,


nobody has a crystal ball. The response to that from Leave campaign


is said they would have negotiating measures of trade with the rest of


the global trading world and the EU, because we are a large market,


relatively prosperous and growing reasonably well, faster than the


Eurozone. His view was, yes we would have some leveraged, but a lot less


than the EU has collectively had during the course of the


negotiations that led to the arrangements it has with the World


Trade Organisation. He said we cannot assume that Great Britain


outside the EU would have the same arrangements. In some areas,


particularly agriculture, we would have two subsidise something new.


That is an area that would have to be negotiated. Andrew, we have to


leave it there, have a great weekend.


Let's talk tech now, because Lenovo has announced


two new smartphones, including a handset


Our North America tech correspondent Dave Lee was at Lenovo's developer


conference in San Francisco, where he spoke to one of its top


The challenge was, in fact I'll show you with the phone here,


is that you had to make it thin enough.


Because if you have to snap a module on the back,


you don't want the product to become too fat, too thick or too heavy.


So the challenge was to pack a lot of the feature and function in 5.2


millimetres thickness, keep it light and have no


Some people might see this phone and wonder how much


it is going to cost them if you have to buy the phone and then buy


What is the price they are looking at?


The price will range between $50 to $200 and $250,


depending on what it is that you have as the functionality.


Whether it is the camera, a projector or just


David is back, let's get cracking into the papers. This Lenovo. By the


time this interview is finished, because you will wish you had not


invited me here. I am from the planet Zong, I can photograph, I can


message, that is about it. Do you think George Orwell would like this,


big brother. It is getting intrusive. To find out who is in the


room with you, what is going on in the room next door. I was reading an


article yesterday about an act, -- at, I can take a picture and then it


will find the clothing, order it in my size. You are kidding me? That is


really amazing. This is just technology developing and


developing. It is extraordinary. I hope we get to the level it doesn't


become too intrusive. Let's talk about this story in the Financial


Times and Venezuela and the crisis going on in Nigeria. There is a


crisis in Venezuela as well. The country is paying its debts to


foreign creditors despite many ordinary Venezuelans not having any


power and they have lost their jobs. It is astonishing when you think


where Venezuela was in desperate disrepair. Oil was $100 a barrel,


went down to 27 and now it is back up to 50. Their whole economy is


based on oil and it must be an horrendous place to live. But they


do understand the international bond markets and you have to pay


interest. But what is interesting now between now and the end of the


year, whether a haircut has to be discussed between creditors.


Wouldn't want to be in Argentina. Have a great weekend, David.


There will be more business news throughout the day on the BBC Live


webpage and on World Business Report.


Good morning, what a week it has been. We have had some heavy


downpours and thunderstorms. What does today


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