:00:20. > :00:24.From gold to government bonds and the Japanese yen, demand is high
:00:25. > :00:27.right now. We will talk you through the other reasons why, as investors
:00:28. > :00:30.seek refuge. Here is a clue. The US Federal Reserve is due
:00:31. > :00:33.to announce its latest decision - the big question -
:00:34. > :00:43.when will the world's biggest And looking at financial markets,
:00:44. > :00:48.they are bouncing back. In Europe today, that was the scene in Asia as
:00:49. > :00:50.well, but how long? We will be getting an expert view.
:00:51. > :00:55.And you've heard of 'Made in China', but what about 'Made in Greece'?
:00:56. > :00:59.Could manufacturing be the boost the ailing Greek economy needs?
:01:00. > :01:02.We'll meet one start-up that's out sourcing its production to Greece
:01:03. > :01:04.to create jobs and growth after the country's
:01:05. > :01:11.And as Twitter snaps up a stake in music service Soundcloud,
:01:12. > :01:13.we'll assess Twitter's battle to stay relevant.
:01:14. > :01:15.What's the one thing you'd like to see on Twitter?
:01:16. > :01:27.Let us know, use the hashtag BBCBizLive.
:01:28. > :01:31.As ever, a completely jammed show. A very warm welcome and let's get
:01:32. > :01:32.cracking. Financial markets around the world
:01:33. > :01:35.are on edge with investors looking Today, America's Central Bank
:01:36. > :01:40.concludes its meeting but the focus Markets across Europe took
:01:41. > :01:45.a battering on Tuesday as investors weighed up the possible
:01:46. > :01:56.consequences of next Today we have seen a slight bounce
:01:57. > :02:00.back but many are wondering for how long. As worries over the
:02:01. > :02:03.referendum, global growth and slumping commodities give us little
:02:04. > :02:03.reason to be optimistic at the moment.
:02:04. > :02:06.Despite Japan adopting negative interest rates in January -
:02:07. > :02:09.you can see here - its currency - the Yen -
:02:10. > :02:11.has continued to strengthen against the dollar as investors head
:02:12. > :02:13.to the relative safety of major currencies.
:02:14. > :02:19.It has almost been a one-way bet really. The Swiss franc also popular
:02:20. > :02:22.right now. Gold too has shot up -
:02:23. > :02:25.it has risen by more than 200-dollars an ounce
:02:26. > :02:30.since the beginning of the year - with some economists predicting
:02:31. > :02:32.market uncertainty is likely And of course investors have
:02:33. > :02:36.also been putting money On Tuesday, the yield on German ten
:02:37. > :02:50.year bonds turned negative territory for the first time ever -
:02:51. > :02:52.with investors effectively paying for the privilege
:02:53. > :03:02.of leaving their money You would think this is
:03:03. > :03:04.extraordinary, but these are are in at the moment.
:03:05. > :03:07.He's the managing director with London-based investment
:03:08. > :03:17.Nice to see you, welcome. Let's pick up on German bond story that Sally
:03:18. > :03:22.was ending on, turning negative for the time ever. It really does give
:03:23. > :03:27.us an indication of what investors are thinking. We use that phrase a
:03:28. > :03:32.lot, flight to safety, somewhere safe to put their cash, if they are
:03:33. > :03:35.willing to pay to store it at the German central bank there is
:03:36. > :03:38.something seriously wrong with the world economy. The right number of
:03:39. > :03:42.things worrying investors, the Brexit vote coming up shortly, the
:03:43. > :03:46.interest rates on the Fed coming through, which if they don't raise
:03:47. > :03:51.this time it is likely they will later this year. And China perhaps
:03:52. > :03:54.coming under pressure. The China story is an interesting one because
:03:55. > :03:58.it has been there for quite a while. We are coming up to the anniversary
:03:59. > :04:01.of the big stock market crash in China, that had repercussions around
:04:02. > :04:05.the world. And I suppose you would question the timing of what it is
:04:06. > :04:09.suddenly now. I suppose it is all of these things together, that perfect
:04:10. > :04:15.storm, that is once again scaring investors. The key issue was that
:04:16. > :04:19.the Chinese devalued their exchange rates this time last year and it led
:04:20. > :04:26.to some wobbles in the market, about three to -- about three to 4%
:04:27. > :04:31.devaluation. The very short-term stuff is all about the Brexit
:04:32. > :04:35.voting. Is it as simple as that flight to gold? Sally touched on the
:04:36. > :04:39.increase in the price to gold, and it is always the one that well when
:04:40. > :04:43.stock markets and equity markets are quite jittery. Is it that simple?
:04:44. > :04:47.Very good quality bonds have been driving it as well. What has been
:04:48. > :04:52.interesting is that we have the Bank of America Merrill Lynch survey out
:04:53. > :04:55.yesterday, and it showed that the position in the Fort folios is as
:04:56. > :05:02.conservative as it has been since 2008, so when things bounce they can
:05:03. > :05:06.bounce substantially. What makes it go away, is it simply the 24th of
:05:07. > :05:12.June? I think it is a case of getting used to it, the world grew
:05:13. > :05:16.at a rapid rate the last 30 years, I think we are in a hangover pays --
:05:17. > :05:18.hangover phase, I think it will be like this for a while.
:05:19. > :05:21.US authorities have charged a Chinese national - Xu Jiaqiang -
:05:22. > :05:23.with three counts of economic espionage for allegedly stealing
:05:24. > :05:27.The Department of Justice has not name the employer,
:05:28. > :05:30.but it is widely reported to be software developer IBM.
:05:31. > :05:33.China and the US have both flung accusations at each other over
:05:34. > :05:45.state-backed hacking and theft of secrets.
:05:46. > :05:46.28 international organisations have pledged to tackle
:05:47. > :05:48.gender inequality at work by reviewing their own
:05:49. > :05:54.The pledge is part of the first United State of Women Summit,
:05:55. > :06:00.The 28 signatories include Pepsi, Amazon, Deloitte and sales force.
:06:01. > :06:02.Each of the companies will assess their salary policies,
:06:03. > :06:05.review hiring and promotion practices, and include new measures
:06:06. > :06:16.We will talk about that in the paper review later too.
:06:17. > :06:18.Retail sales in America rose more than expected in May helped
:06:19. > :06:20.by an increase in online and clothing sales.
:06:21. > :06:23.They were up 0.5% last month, after rising by 1.3% in April.
:06:24. > :06:26.The news will provide some cheer in the US after employers added just
:06:27. > :06:41.38,000 jobs last month, the fewest since September 2010.
:06:42. > :06:47.Let's head to Asia, where the world's biggest
:06:48. > :06:50.stock index provider, MSCI, has again failed to include
:06:51. > :06:52.mainland China's domestic shares in its emerging markets index.
:06:53. > :06:54.If it had, it would have been a major step forward
:06:55. > :06:57.for Beijing as it attempts to open up its financial markets
:06:58. > :07:12.Fill us in. That's right. As you said, investors were looking to dip
:07:13. > :07:18.their toes a little bit further into the Chinese market. Might just have
:07:19. > :07:21.to wait a little bit longer. The MSCI stock index has made
:07:22. > :07:27.significant steps to Word inclusion, but they have said investors need
:07:28. > :07:33.significant action -- axe and to aid shares in China, that are purchased
:07:34. > :07:45.and traded on the Shanghai and Shenzhen stock exchange is. -- a
:07:46. > :07:49.that need to be removed, more that need to be removed, more
:07:50. > :07:54.accessibility of the global investors. These were some of the
:07:55. > :07:58.reasons behind MSCI's decisions. The reason why would have been important
:07:59. > :08:03.to these Chinese shares to be included is because MSCI is the
:08:04. > :08:06.world biggest stock index provider. China has recently increased its
:08:07. > :08:11.efforts to reform its very volatile stock market, but the MSCI said that
:08:12. > :08:14.global investors were looking for more and analysts essentially saying
:08:15. > :08:17.they were not surprised by this move. They say it is a long-term
:08:18. > :08:24.possibility and Chinese authorities will take a little while putting in
:08:25. > :08:30.place the regulations allowing A shares to be brought by foreigners.
:08:31. > :08:35.It had very little impact on sentiment, Shanghai shares closing
:08:36. > :08:39.up at a two week high, shrugging off that negative news. Hong Kong you
:08:40. > :08:43.can see up higher and also Japan. But let's not forget, heavy losses
:08:44. > :08:46.at the start of the week in Asia, so maybe a little bit of people seeing
:08:47. > :08:50.stocks looking cheap at the moment and buying them today. That is last
:08:51. > :08:56.night in the States. Let's look at Europe to show you today's bounce
:08:57. > :09:03.back. The FTSE 100 still below 6000. It has not been below that since
:09:04. > :09:06.February of this year. And the scene across the board in Europe slightly
:09:07. > :09:12.higher. We will talk you through the sentiment in a bit more detail for a
:09:13. > :09:16.moment, but first Samira Hussain is in New York. Just a few weeks ago,
:09:17. > :09:19.Wednesday was going to be pretty much a sure thing is the day when
:09:20. > :09:24.the Federal reserve would raise rates again. That was before the
:09:25. > :09:30.last jobs report, with its indication of an alarming slowdown
:09:31. > :09:34.in job creation in the US. So now it would probably stunned investors if
:09:35. > :09:37.the Federal reserve finished its meeting on Wednesday afternoon with
:09:38. > :09:43.anything other than a decision to keep rates on hold until later,
:09:44. > :09:47.possibly much later in the year. And aside from more of the same from the
:09:48. > :09:52.Fed, investors will look to industrial production and wholesale
:09:53. > :09:57.prices data for clues as to whether the US economy can pick up steam
:09:58. > :09:58.again. In particular, they will be hoping industrial production shows a
:09:59. > :10:05.rise after falling 0.2% in May. Joining us is Simon Derrick,
:10:06. > :10:13.Chief Markets Strategist, Good morning. Let's look at the
:10:14. > :10:17.numbers, they are all green today, things are looking OK but how much
:10:18. > :10:23.longer? It has been a pretty tough couple of days. It has. As we heard
:10:24. > :10:28.earlier, it is a multitude of things, not just the referendum,
:10:29. > :10:32.about what the Fed is going to do, Japan, in part the China story. We
:10:33. > :10:37.still have a degree of uncertainty out there, even without the US and
:10:38. > :10:41.story. I think today will be important, we have the Fed meeting.
:10:42. > :10:45.It is very unlikely that we will get a rate move, in fact extremely
:10:46. > :10:51.unlikely, so what will be really interesting is the signalling we get
:10:52. > :10:57.from Janet. If she is cautious, which is the most likely outcome, it
:10:58. > :11:04.might cause things in the markets. It could be supportive. While
:11:05. > :11:09.talking about Japan, quite interesting, the policy chief of the
:11:10. > :11:17.Japanese ruling party, a lady who is seen as Shinzo Abe's right-hand
:11:18. > :11:20.woman, she said that she is closely monitoring the referendum next week
:11:21. > :11:25.and the impeccable have on currency markets, ie the Japanese yen,
:11:26. > :11:29.because a lot of the economics has been about weakening the yen, but it
:11:30. > :11:32.is getting stronger and stronger. This has been a major story because
:11:33. > :11:36.a number of other than nations around the world have been upset
:11:37. > :11:40.about the fact that they see Japan as a manipulator in this currency.
:11:41. > :11:45.There has been a lot of pressure to them not to do anything, but the
:11:46. > :11:49.reality is the stock market in Japan follows closely the strength and
:11:50. > :11:52.they will do something. Maybe not they will do something. Maybe not
:11:53. > :11:56.tomorrow, but I think they will do something over the course of the
:11:57. > :11:59.next few months to help weaken the yen, bubbly with monetary policy
:12:00. > :12:09.rather than intervention. Something I'm sure we'll talk about again --
:12:10. > :12:15.probably with monetary policy. Made in Greece, a term you are familiar
:12:16. > :12:19.with? We will meet the start-up moving its production to Athens in a
:12:20. > :12:26.bid to boost the economy. You are watching BBC live from BBC News.
:12:27. > :12:39.First, here in the UK, one man will be taking centre stage.
:12:40. > :12:42.The Former owner of BHS - Sir Philip Green -
:12:43. > :12:44.is to appear before MPs later to give evidence about
:12:45. > :12:48.Sir Philip sold the department store chain for just ?1 last year
:12:49. > :12:52.The collapse of the firm has left an uncertain future for its 11,000
:12:53. > :12:55.staff and many more pensioners who saved into the BHS scheme.
:12:56. > :12:59.Let's get more with Tom McPhail, head of pensions research,
:13:00. > :13:04.I would imagine you and many others would be glued to what Mr green has
:13:05. > :13:13.to say later? A fascinating session in store. Sir Philip Green account
:13:14. > :13:16.of the story, what happened to the business, the pension scheme, MPs
:13:17. > :13:20.will be looking to drill into what went wrong, whether Sir Philip Green
:13:21. > :13:25.critically should now be putting more money into the pension scheme.
:13:26. > :13:30.The pension's regulator is very keen to see more money put into the
:13:31. > :13:33.scheme, I'm sure. Ultimately the members of the pension scheme
:13:34. > :13:37.members, who were the ploy ease, will want to be reassured that
:13:38. > :13:42.tensions were safe. Sitting behind it all is the pension protection
:13:43. > :13:47.fund, which acts as a lifeboat in a situation, but the critical test is
:13:48. > :13:50.to see her how much money Sir Philip Green might be prepared to put into
:13:51. > :13:55.the pension scheme to top it up before it probably goes into the
:13:56. > :13:59.pension protection fund. What responsibilities he has, that is
:14:00. > :14:03.what people will want to know. He is famously quoted as saying if I
:14:04. > :14:06.soldier an airliner and you crashed it into a mountain, that is not my
:14:07. > :14:11.fault, but surely he has some responsible at either the pension
:14:12. > :14:14.fund? He can and may well argue he sold the business, it is not his
:14:15. > :14:18.problem any more. The question is did he leave it in a fit state,
:14:19. > :14:22.should he have put more money in the pension scheme before he passed it
:14:23. > :14:27.on? Will he willingly put his hand in his pocket haps to salvage his
:14:28. > :14:31.public reputation again always end up in the courts? Today's session in
:14:32. > :14:34.front of the MPs will be a very strong indicator of how this might
:14:35. > :14:39.play out. Thank you so much for your time. Of course, we will be across
:14:40. > :14:44.that questioning session for you, join us on the BBC for that. A quick
:14:45. > :14:48.look at the BBC website, another big company coming out in favour of
:14:49. > :14:54.remaining in the EU, joining the long list. BT gave an up date last
:14:55. > :14:55.week. Rolls-Royce says Brexit will heighten the investment risk.
:14:56. > :15:00.Details on the website. You're watching Business Live -
:15:01. > :15:02.our top story - Growing unease over the global
:15:03. > :15:07.economy leads to a big sell off on financial markets around
:15:08. > :15:20.the world. European markets opening up in the
:15:21. > :15:25.first few minutes of trade, the FTSE 100 up 0.9% so far this morning.
:15:26. > :15:27.Now - it's a question that's been debated
:15:28. > :15:30.How to get Greece's economy working again.
:15:31. > :15:32.Amid a deep recession, mounting debts and soaring
:15:33. > :15:35.unemployment, Greece is struggling to shake off its economic crisis.
:15:36. > :15:37.In the first three months of this year its economy shrank
:15:38. > :15:46.But help could be at hand, in the unlikeliest of places.
:15:47. > :15:48.A UK-based start up called Nima Composites - has
:15:49. > :15:50.moved its manufacturing process to Greece -
:15:51. > :15:53.in an effort to help create jobs, and boost the local economy.
:15:54. > :15:54.It makes high-tech covers for laptops and tablets
:15:55. > :16:04.And it won support from a group called Re-load Greece,
:16:05. > :16:06.which works to provide mentoring, legal advice and expertise
:16:07. > :16:16.Evangelos Zympeloudis is the Chief Executive of Greek
:16:17. > :16:29.So, you have got some examples of the product that you, as a company,
:16:30. > :16:33.have come up with and are going to manufacture in Athens? That's
:16:34. > :16:38.correct. Our RMT is based in Bristol and we will outsource our
:16:39. > :16:42.manufacturing facilities in Greece. We have secured a partnership with a
:16:43. > :16:47.company there and they are going to allocate space in their facilities
:16:48. > :16:53.to set up our production. Essentially carbon five casing? 100%
:16:54. > :16:57.carbon fibre casing. We will start with the Apple MacBook, but in the
:16:58. > :17:03.future we want to expand the range to consumer electronics. It's
:17:04. > :17:07.interesting. I'm looking at this. This is a very unlikely saviour of
:17:08. > :17:11.the Greek economy. Talk us through that process. You've been encouraged
:17:12. > :17:16.to move production back there to create jobs, create a bit of growth.
:17:17. > :17:20.Just talk us through what it's like being able to do that and also the
:17:21. > :17:26.help that you've got along the way to be in a position to do that? Yes,
:17:27. > :17:32.so in missionary it was something important to us, we wanted to give
:17:33. > :17:35.back to our country. Hearing all the things about Greece and I realised,
:17:36. > :17:39.what's the point in complaining? I will try to do the best with the
:17:40. > :17:46.means that are available to me, to give back. And that's something, we
:17:47. > :17:50.serve this philosophy across Nima Composites and we have been
:17:51. > :17:53.fortunate to find like-minded people through Re-load Greece. Is it
:17:54. > :17:58.somewhere you would have considered manufacturing without this about?
:17:59. > :18:03.Most people would assume you would go to China, for example? Yes,
:18:04. > :18:07.especially for carbon fibre, the market in Greece is not well
:18:08. > :18:11.developed and I think that's most important to us. We will not only
:18:12. > :18:14.create new jobs but by transferring skills know how there is the
:18:15. > :18:19.potential to spark off a new industry in the country. From a
:18:20. > :18:25.personal point of view, you lived and grew up in Greece, but came to
:18:26. > :18:29.the UK to study. Yes. The other founders of the company, mostly
:18:30. > :18:36.Greek. Apart from one Brit from Bristol. Most of the founding
:18:37. > :18:41.members are doing research with carbon fibre composite at Bristol
:18:42. > :18:44.University. And that's something that was important to us.
:18:45. > :18:50.Manufacturing carbon fibre is very difficult. But because we studied
:18:51. > :18:54.for so many years in Bristol which is the leading institution at the
:18:55. > :18:58.moment, we had all the skills and the know-how and confidence that we
:18:59. > :19:01.could deliver. So the important thing is the difference between
:19:02. > :19:07.this, which is carbon fibre, and this which is plastic. This is a lot
:19:08. > :19:11.easier to do and does not need much skill, but it is this one that
:19:12. > :19:14.people can see there, it is not about pure manufacturing and low
:19:15. > :19:18.cost, it is about high skill and innovation, which is the crucial
:19:19. > :19:26.thing? Exactly, that's the key point. Briefly have Re-load Greece
:19:27. > :19:35.spoken to you about the economic risks increase? Yes. The main
:19:36. > :19:38.purpose of Re-load Greece is to set up UK-based companies which would
:19:39. > :19:43.have a social or economic impact on Greece. Because they have come
:19:44. > :19:48.across similar situations in the past, they had all the experience to
:19:49. > :19:52.help us set up our business. Ice to see you, thanks so much for coming
:19:53. > :19:55.in and good luck with it all. Thanks very much, really nice to see you.
:19:56. > :19:57.Rolls-Royce has written to its employees this morning saying
:19:58. > :20:01.it wants Britain to stay in the European Union,
:20:02. > :20:03.and that a 'Brexit' would "limit any company's ability to plan
:20:04. > :20:15.Speaking to the BBC, the company's Chief Executive Warren East said
:20:16. > :20:17.Brexit would give the aero-engine maker's big American rivals
:20:18. > :20:25.It's all about uncertainty and our position in Europe. We have a very
:20:26. > :20:29.interconnected operation around Europe. Half our employees are in
:20:30. > :20:34.the UK, a quarter of our employees are in mainland Europe. We have some
:20:35. > :20:40.big customers in mainland Europe, airline customers. A big airline
:20:41. > :20:45.aircraft partner, Airbus, in Europe. We have a lot of our external
:20:46. > :20:48.suppliers. What you are seeing here is people assembling that engine
:20:49. > :20:53.made of many components, some of which we make ourselves and some of
:20:54. > :20:56.which we buy in. Collectively there are thousands of companies around
:20:57. > :21:01.Europe that contribute to that engine. We are making investment
:21:02. > :21:04.decisions all the time about where to place different parts of our
:21:05. > :21:13.operation, where to place business like that. And uncertainty created
:21:14. > :21:19.by Brexit puts a lot of those decisions on hold. That's something
:21:20. > :21:21.our US competitors do not have to cope with.
:21:22. > :21:24.Responding to other letters Vote Leave said Some of Britain's
:21:25. > :21:27.leading firms have been clear that if we Vote Leave trade across Europe
:21:28. > :21:33.Of course pro-EU voices want to talk down the economy but the same hollow
:21:34. > :21:55.threats were proved nonsense over the referendum and the euro.
:21:56. > :22:02.Big firms take the limelight when it comes to this debate but what about
:22:03. > :22:08.small and medium-sized companies? We have been talking to them as well.
:22:09. > :22:13.I am John Hancock, I have been involved in the fishing industry for
:22:14. > :22:16.45 Years, I was a skip over 30 years, managing director of a
:22:17. > :22:20.company called charisma UK Limited imported frozen and fresh fish from
:22:21. > :22:27.Norway. When I first started here there were 400 boats. There is now
:22:28. > :22:34.five, six. This is all down to government policy and of course the
:22:35. > :22:38.EU and the ever increasing bureaucracy that's involved in the
:22:39. > :22:41.fishing industry. Because the stocks have recovered, I think we will be
:22:42. > :22:46.able to rebuild the fishing industry piece by piece once we are outside.
:22:47. > :22:50.We will never get back to the halcyon days of what we had, but you
:22:51. > :22:58.are going to regain the core traits that are needed to run the fishing
:22:59. > :23:01.fleet. Engineers, welders, Fish Packers, ice machines. Everything
:23:02. > :23:04.involved which means that the community thrives. Not just about
:23:05. > :23:07.Grimsby but the whole of the UK and the coastal communities.
:23:08. > :23:09.What other business stories has the media been
:23:10. > :23:11.Simon Derrick, Chief Markets Strategist, Bank
:23:12. > :23:14.of New York Mellon - is joining us again to discuss.
:23:15. > :23:18.This is a great story in the Huffington Post, a picture story. It
:23:19. > :23:24.says this photo tells you everything you need to know about corporate
:23:25. > :23:30.boardrooms. White, middle-aged men, not very diverse, despite their best
:23:31. > :23:35.efforts. The chap in the top left is a bit older, but it is quite
:23:36. > :23:39.shocking. And they actually pride themselves on their diversity policy
:23:40. > :23:43.as well. It clearly shows that there is so much more that needs to be
:23:44. > :23:47.done. I think it is interesting to the course of my career how things
:23:48. > :23:53.have changed. Certainly progress has been made, not just the board level,
:23:54. > :23:57.but more underground floor level as well, but still clearly a lot to be
:23:58. > :24:03.done. Interesting because in the United States it is seen as behind
:24:04. > :24:07.when it comes to boosting the number of women on the boards of companies.
:24:08. > :24:11.One fact I learned earlier this year which cracked me up, fewer large
:24:12. > :24:22.companies are run by women than by men named John. That is S and P 500
:24:23. > :24:28.companies. John is my middle name! That explains a lot, Simon. There is
:24:29. > :24:34.an event in the White House with 28 companies becoming signatories to
:24:35. > :24:38.say they are going to improve their gender equality policy. So there is
:24:39. > :24:41.change going on. Let's look at this story, Twitter, sound out, we
:24:42. > :24:47.mentioned it, Twitter buying a stake. It is their attempt to get
:24:48. > :24:52.more people to the site, live streaming, that sort of thing. Love
:24:53. > :24:59.Twitter. Middle-aged bloke who likes music, so no big surprises there. I
:25:00. > :25:04.don't quite see how they tie up. I don't see what Twitter wants to get
:25:05. > :25:10.out of this. Looking at Soundcloud, it was great for unlicensed music,
:25:11. > :25:19.new artist. It seems they are trying to go down the same streaming route
:25:20. > :25:22.as Apple, Spotify. I don't see what differentiates them from everybody
:25:23. > :25:25.else and why Twitter wants to get into bed with them. We asked you
:25:26. > :25:31.what one thing you would change. Caleb says fewer adverts. This one
:25:32. > :25:36.says change the management team. We had the boss of Soundcloud here a
:25:37. > :25:41.few weeks ago. That is it from us. See you soon, goodbye.