23/06/2016 BBC Business Live


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Live from London, that's our top story on Thursday 23rd June.


There has been a string of protests over recent weeks in Paris, this is


the last time they went on the march. But is a radical shake up


long overdue or is this railroading workers' writes?


Also in the programme: It's decision day in the UK.


The polls are open in the country's historic vote on its membership


The first results are expected overnight tonight - around 4am.


And here's how markets are looking as trade gets underway in Europe.


As you can see, markets across the region are higher, we will talk you


through the winners and losers. And we'll be talking to a man


who has a rubbish solution for reducing poverty,


improving the environment and making money, cashing


in on plastic waste. And are pay rises a thing


of the past? New figures show firms are looking


for other ways to motivate So we want to know -


when's the last time Let us know, just use


the hashtag #BBCBizLive. We start in Paris, where trade


unions are about to lead tens of thousands of people


in a march against proposed changes Figures in the last hour suggest


businesses need all the help they can get with activity once again


slowing across the country. A preliminary reading of a monthly


purchasing index fell to 49.4 from just above 50 in May. To explain


what they mean, any number below 50 is a construction -- contraction


where one above 50 shows great. So what is being proposed in the Labour


laws -- labour laws? France will keep its famous 35-hour


working week, but only Firms will be able to negotiate


with local trade unions on more or fewer hours from week to week,


up to a maximum of 46 hours. The changes will also make it


easier to lay off workers. It's hoped companies will take


on more people if they know they can Employers will also be given more


leeway to negotiate holidays and maternity leave -


which is currently heavily Proof that reform is needed, we have


mentioned those acres, the unemployment rate in France above


10%, more than doubled the UK and Germany.


Tomasz Michalski, Associate Professor of Economics at the HEC


Business School in Paris, joins me now.


This is the latest round of strikes protesting these labour laws, will


they achieve anything they have not done in previous strikes? I doubt


pushing forward its agenda. They pushing forward its agenda. They


don't have to get a boat in the parliament, they can force it with


the threat of dissolution of parliament and it seems that the


Government is keen on passing this law. There is a political logic to


it. When we talk about political logic, forgive me if we are talking


about this from the outside looking in, it seems that up until now the


labour unions have had things quite good, there have been protections


for workers that do not exist elsewhere in the world, is this


simply a harmonisation, bringing front into line with international


standards or is the government proposing things that front objects


to because they are not the same elsewhere? Basically France is the


last largest economy in the euro zone that has not reformed its


antiquated labour laws, so this would be bringing it more towards


where we are in Germany, Italy, Spain, but even falling short of


that. We are really talking about cosmetic changes, very small changes


to the labour code and even this cannot pass peacefully, Wright would


wish a much larger overhaul than I believe would be drastically changed


to prepare it for the 21st-century. How much have the current labour


laws contributed to the economic problems in France? There are


several things, for example the inflexibility in hiring and firing,


the high cost of firing, the economic uncertainty about, for


example, classification of firing because workers can seek


compensation for unlawful dismissal. The last one I mentioned will be


countered by this law, that there are lots of other things that are


totally untouched, especially because this is a socialist


Government and does not want to anger the base even more. Even then,


we see that it cannot pass in the current political environment, which


is really surprising not only for outsiders but also for people who


live here. OK, it is good to talk to you, thank you for explaining that.


We will keep a close eye on events in Paris as those strikes and


protests continue, more on that later.


Polls have opened in an historic referendum on the UK's membership


of the European Union - whether it should stay or leave.


46.5 million people are entitled to take part in the vote -


It is only the third nationwide referendum in UK history and follows


a four-month battle for votes between the Leave


South Korean car-maker Kia has topped a US quality survey.


It's the first time in 27 years a non-luxury brand has taken


The survey questioned over 80,000 drivers who'd bought a new car


this year about problems during their first 90


Kia came first - pushing last year's winner Porsche into second place.


The Smart car, owned by Daimler, came bottom.


The US Presidential hopeful Donald Trump will reopen his


$200-million Scottish golf resort on Friday.


Police and security teams in Ayrshire are preparing for protests


More than half-a-million people have signed an online petition calling


for Mr Trump to be banned from the UK.


A quick look at the Business Live page for you.


I was just going to say I could think of lots of things to say about


that story but I will be good! We need to explain today that because


of reporting restrictions, as the polls are open in the UK, we have to


be careful as to what we say as a broadcaster about the referendum.


You might be wondering about that, there will be no referendum talk on


the live page of the programme. A welcome relief, this time tomorrow


it will all change! So let's build you up to date with


the other news that is appearing today, with the lack of referendum


news. I want to talk about this story about Viacom, the media giant,


there has been an announcement that the directors can stay in place, it


is related to the mental competence of the 93-year-old controlling


shareholder, so that is worth watching because there has been a


big boardroom tussle between those directors about who is in charge and


clearly it controls a lot of advertising revenue and spend in the


media markets, so one worth watching.


A row is brewing between two superpowers - China and the US -


Robin Brant is in Shanghai following this for us.


What is China alleging? The government in Beijing says that


the steel market is in a state of overprotection, the latest in a row


between Washington, DC and Beijing that has also taken in Japan, India


and the European Union, other sizeable steel producers. It is


about peace slump in demand for steel and how countries are dealing


with it. Yesterday the international Trade Commission ruled that it


believed China's steel producers were damaging those in the United


States which clears the way possibly for the imposition by the Government


in Washington, DC sizeable import duties on Chinese steel, possibly


over 500%, essentially meant to prevent Chinese steel producers from


dumping, as America sees it, their access steel in the United States.


As I said, China heading back saying it believes the US market has been


overprotected. What is interesting in this is China is going through


significant attempts to reform the supplies died, state-owned


emphasised -- state owned Enterprises, it is looking to cut by


15%, 150 million tonnes, it's steel production in this country over the


next five years but in recent months, despite hearing politicians


talking about closing 60 steel mills, there has been an uptick in


steel production in China so there is suspicion abroad about China's


commitment to reduce the amount of steel it produces and the amount


that goes abroad. There is quite a bit of suspicion


depending on which country you are looking at. Thank you, good to see


you. Let's look at the markets. It has been a fairly positive day in


Asia and in Europe. One of the big winners for the McKay is Sharp,


rumours it will come up with some new restructuring plans. -- one of


the big winners for the Nikkei. On the mind of everyone in the


financial market is the UK referendum, we have mentioned the


polls are open, the France the data this morning was pretty dire but it


has not hit trade in Paris, which is up almost 1%, but manufacturing and


the service sector contracting. Samira Hussain has the details about


what's ahead on Wall Street today. Some economic data today will likely


show Americans are buying fewer new homes. New-home sales are expected


to show they have fallen by 8% in the month of May, a pretty


significant decline from the month of April when we saw that sales


jumped more than 16%. That was the highest level since January 2000


eight. Also, remember BlackBerry, the


once ubiquitous smartphone? It is reporting earnings on Thursday, the


company's expansion into software has so far not been able to stop its


sharp decline in overall revenue, so BlackBerry has said


that its top goal is to make its device is profitable and it has


given itself a deadline of March next year to do so.


Samir are keeping us up to date with events in Wall Street. James Bevan


has joined us to talk through what is happening in Europe, Sally looked


at the numbers earlier. Some optimism despite the French PMI


figures suggesting that services and manufacturing are not doing well?


The manufacturing numbers were expected to be poor, this is a


global issue which we have heard with China and the US, oversupply,


deflation, it is hard to be optimistic about manufacturing


numbers. The service numbers were a shock, people were not expecting to


be given news that services are heading for a downturn. It is


interesting, Samir mentioned above in the United States, the Federal


Reserve stress test for the big banks, will that be looked at, or,


given the event in the UK today, will it be a question of burying the


bad news? I don't think we will expect bad news from the States,


what happened after the global financial crisis was the troubled


assets programme which cleared out the stables and made the US banks


solvent and respectable. There is a bigger question over the banks in


Europe, particularly peripheral Europe, where the asset management


community has not been doing enough to face those risks. In the US they


have been hard on the banks but the results mean those banks are in a


stronger position perhaps? Absolutely, they were early to the


table with real measures to sort out the challenge and I think they will


be going great guns. We have not had the great downturn in the old price


which meant well-run companies like Wells Fargo had to come to the table


and say, sorry, we have dodgy loans to the oil industry and may not be


making the profits we expected. Interesting, there is a lot going on


today, a busy one! James, thank you for now. Still to


come, we will speak to a man who has set up a business turning plastic


waste into money whilst also giving an income to some of the world's


poorest communities. More on that in just a few minutes.


You are with Business Live from BBC News.


First let's talk about Tesco. It's the biggest retailer in Britain, it


had a rough ride. It posted its worst loss in its history in 2014,


six 4p. Plagued by an accounting scandal since then. There were


sounds of a turnaround. And a new boss, David Lewis. Sales are growing


again, it has reported two quarters in a row of sales growth, the first


time they've been able to do that in five years. Explain this for us.


We're getting excited, two consecutive quarters. There was a


time Tesco could do no wrong, never mind two consecutive quarters.


Clearly, the UK business has found it incredibly difficult over the


last two years, much greater competition from the other


supermarket as well as Aldi and little. And big structural and


financial issues. -- Lidl. Lots of disposals and restructuring.


Disposed of around nine different businesses since Philip Clark left.


A lot of the focus and attention and money is being reinvested into the


offer for UK supermarket shoppers. They are beginning to vote with


their feet and return to Tesco. To what extent can David Luiz take


the glory? E was new on the scene and shortly after his arrival the


accounting scandal emerged. Tough for him from the beginning. Lots of


it was external to Tesco, Aldi and Lidl's. If focused attention on to


the UK business, big investment getting stuff back onto the staff


floor. Service level has improved, availability has improved, and


customer satisfaction has increased as a result. He can take credit for


some of it. The time he took over, couldn't have got much worse. Brian


Roberts talking us through the Tesco numbers.


If you need more on the BBC website, it is to flog off Harris and tool,


which will go to cafe Nero. Acquired at the height of the expansion plans


for Tesco, but things now looking very different for the retailer. Our


top story today, French business activity unexpectedly slowed in June


for the first time in four months as waves of strikes get underway again


in Paris. Protesting against changes to labour laws. They make it easier


to hire and fire staff amongst other things, protesters marching through


Paris in the latest series of demonstrations against those


changes. We'll watch very closely. Is there money to be made from


rubbish? Any recycling plant and refuse business will tell you there


is, big money. What if the money is made from the rubbish itself? Stay


with us, we'll explain. David Katz is the founder of the plastic bag, a


social enterprise alleviating extreme property by making money


from plastic waste. There's plenty around, 8 million metric tonnes of


plastic waste it is thought enter the oceans every year. It encourages


residents of poor communities to collect plastic that litters


beaches, they can turn it into currency. They trade in the material


at the cycling centres and can receive various things I could cook


in oil, or get firms charged. To make money, the start-up recycles


the plastic and sells it to bigger businesses, generating revenue that,


of course, also means it's helping the environment. David Katz, founder


of the plastic bag, is with us. Thank you, good morning. We've


touched on how it works, explain where in the world this operates.


Plastic in oceans affect a lot of places, talk us through the biggest


areas when it comes to the bank. The plastic bag is in Haiti, the poorest


country in the Western Hemisphere. We have a chain of recycling markets


there and continue to build to encourage the collection. If you've


ever been in a place with extreme poverty you see there happens to be


an abundance of waste as well. In those countries where they don't and


can't afford a solid waste infrastructure, that's what we


provide. Operating in Haiti in earnest, I understand Brazil... It


is next on the list, urban implement a share, working in Sao Paulo. Low


recycling rates in Brazil, certainly an environmental concern there. And


the Philippines. The Philippines and Indonesia after that, 500 million


people between those countries. Some of the most plastic that is entering


the ocean is contributed by them. This is about getting local


communities to improve their community to make a bit of money on


the side, who buys the end product? We provide social cause, give


organisations and opportunity to exhibit a true social responsibility


through action. Many people want to implement some process to donate


money but this gives them a chance to connect with the consumer and use


a plastic material that has helped people transcend poverty. It's a


great opportunity, gathering everybody together. They get


together, their customer gets together, let's say it's a shampoo


bottle, when you take a bottle off the shelf, you are helping somebody


in poverty. Why did you decide to do this? Excellent question, I've grown


up at the edge of the ocean, it's where I'm from, I've seen it just in


our lifetime. Plastic is our generation. We've just seen it


continue to pollute the bellies of birds. Many watching will say, great


idea, but where do you begin? Many are passionate about the problem is,


how do you start? Excellent question. It's the... How do you eat


and elephant? One bite at a time. I was overwhelmed when I had the idea


to change the world, alleviate the pressure of plastic flowing into the


ocean. It came in the idea we needed to reveal the value in the plastic


waste. If you come across a bar of gold on the ground you have no way


to use it as currency, do you pick it up? No, you don't. It's what we


do with plastic, we provide the opportunity for it to be monetised.


I wish we could talk more, best of luck with the project, sounds really


interesting. We have to move on, as is always the


case. Never enough time. We are going to show the viewers this


amazing landing, aren't we? The solar panel plane. No, we're going


to show them the amazing clip we talked about, how to get in touch


with us on the programme. We'll show you the solar powered plane in


another time. The business live pages where you can stay ahead of


all of the breaking business News, we'll keep you up-to-date with the


latest details with insight and analysis from the BBC's team of


editors around the world. We want to hear from you, too, get involved on


the BBC business live website. If you do want to see that claim,


check out the website. It's amazing! It's about a solar powered plane


that has been flying around the world. Can I say? We were waiting


for that plane to land all morning and it landed during my world


business report, touched down in Seville. They timed it perfectly so


I could have that moment. Anyway, let's move on. Let's talk papers,


lots to get through, not referendum related, which many we'll be glad to


hear. I can hear you cheering. Pay rises, the question we've been


asking, when is the last time you got a pay rise? Businesses say it's


about the motivational factors, is it really? Certainly people need to


be motivated to contribute to companies, keeping a job is for many


people are challenging this day and age. Global outsourcing issues mean


people who have done jobs that can be replicated elsewhere have


competition the like of which they've never seen. We're at the


cusp of an interesting challenge, as to how much we are global in the way


we look at these issues, and what is the Federation ship between business


owners and staff. We've had viewers getting involved in the


conversation, thanks for getting in touch. John says he hasn't had a pay


rise in four years and isn't motivated. Guerrero says non-cash


rewards are good as part of a mixed at world help getting a mortgage,


show me the money. That's always the issue, businesses might want to


think they are caring and sharing what it comes down to what pays the


bills. The cost of living for many is rising. Speaking about cost of


living, this is in the Washington Post, the cost of a wedding dress.


We're not going to talk about weddings. Things specifically


targeted for other things are way more expensive. If you bought a


normal dress it would have a certain price, put wedding on the front and


it is three times more expensive. Absolutely, and recognised strategy


companies have two price for very specific markets. You always pay a


premium if you are seen as a soft touch. It's interesting going back


to the issue of what people are paid, a large chunk of the world is


in deflation. If the products you are selling have falling prices, the


capacity to pay the workforce more isn't there. There is a realism test


behind this. It's an interesting article. If you are organising a


wedding or event, you have been advised to not classify it as a


wedding until the last moment when you show up because then you get a


lower price. I don't think it's entirely unfair you pay more because


they fear is at weddings are not the same at corporate events. -- because


behaviour at weddings is not the same as corporate events. We'll see


you very soon, goodbye.


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