:00:00. > :00:00.This is Business Live from BBC News with Victoria
:00:07. > :00:14.G20 policymakers from leading market economies will meet in Chengdu,
:00:15. > :00:19.And their talks are expected to be dominated by Britain's
:00:20. > :00:41.Live from London, that's our top story on Friday the 22nd July.
:00:42. > :00:43.Policymakers from 20 of the world's largest economies
:00:44. > :00:53.They'll be discussing the thorny issue of trade and protectionism.
:00:54. > :00:55.We'll cross over live to Asia for the latest.
:00:56. > :01:00.Pokemon Go launches in Japan - a day later than expected.
:01:01. > :01:02.Shares in Nintendo have nearly doubled since the game was first
:01:03. > :01:15.We will bring you the latest from the markets with equity landing on a
:01:16. > :01:16.downbeat no -- low towards the end of the week.
:01:17. > :01:19.It's not just Pokemon making the headlines in the world of tech.
:01:20. > :01:22.It's also been a busy week for the social media giant Facebook.
:01:23. > :01:27.We'll get the Inside Track with our very own Rory-Cellan Jones.
:01:28. > :01:30.Later in the programme, we'll also be talking
:01:31. > :01:32.about bosses and the big payouts they often
:01:33. > :01:35.Companies argue that golden handshakes are well deserved.
:01:36. > :01:40.Or should they be scrapped altogether?
:01:41. > :01:55.Let us know, just use the hashtag #BBCBizLive.
:01:56. > :01:58.This weekend something momentous is happening in the world
:01:59. > :02:06.China will be hosting the G20 summit for the very first time.
:02:07. > :02:10.China's presidency of the G20 is greatly anticipated,
:02:11. > :02:13.as it is both the world's second-largest economy and also
:02:14. > :02:23.the largest trading partner of several significant members.
:02:24. > :02:29.One significant memories the UK and its new Chancellor, Philip Hammond
:02:30. > :02:34.has kicked things off by outlining his economic response to the British
:02:35. > :02:39.decision to leave the EU -- one of the significant members is. We
:02:40. > :02:43.understand the significance and unexpected nature of the decision on
:02:44. > :02:46.June has caused turbulence in the markets and we have the tools
:02:47. > :02:50.necessary to respond to that in the short term. The colleagues at the
:02:51. > :02:56.Bank of England will be using the monetary tools at their disposal
:02:57. > :03:00.over the medium-term, giving us the opportunity with our Autumn
:03:01. > :03:13.Statement, our regular late year fiscal event, to reset fiscal policy
:03:14. > :03:17.if we deem it necessary to do so. We can talk to Steven McDonald in
:03:18. > :03:22.Beijing. We just heard from the new UK Chancellor, Philip Hammond,
:03:23. > :03:27.saying he may need to reset fiscal policy. What does it mean? It's a
:03:28. > :03:30.bit of a surprise. The interesting thing is that Philip Hammond is not
:03:31. > :03:34.the only one concerned about the impact of Brexit on the global
:03:35. > :03:42.economy because today we heard the head of the IMF coming out at a
:03:43. > :03:47.press conference and saying that I was really hoping to come along here
:03:48. > :03:50.with a happier outlook for world growth because Japan, China and
:03:51. > :03:54.Europe have actually been doing better than expected given the
:03:55. > :03:59.global economy as it is. I was hoping to do that, but then the UK
:04:00. > :04:06.had to go and Brexit and wreck everything, basically. The IMF has
:04:07. > :04:12.had to downgrade its forecast and off the back of that, the number two
:04:13. > :04:18.leader in China responded by saying that at least China has upped the
:04:19. > :04:26.forecast slightly and he joked that China has a lot of hurdles but we
:04:27. > :04:30.will keep trying to maintain the growth we are driving for the world
:04:31. > :04:36.out of China. He sort of said we could not burden this for ever but
:04:37. > :04:43.we will try our best. Another key global player we have heard from,
:04:44. > :04:50.Donald Trump, speaking overnight in Cleveland, Ohio, while accepting the
:04:51. > :04:53.Republican nomination. The issue of protectionism rearing its head. He
:04:54. > :04:57.said he would get rid of trade deals that destroyed the middle class and
:04:58. > :05:02.that American is not globalism would be the tenant of his foreign policy
:05:03. > :05:10.if he were elected as president. One assumes this is a reference to the
:05:11. > :05:14.TTIP that Barack Obama has tried to negotiate with ten countries around
:05:15. > :05:20.the Pacific Rim. How much will that be on the G20 agenda? This is a
:05:21. > :05:23.nightmare message in terms of the G20 finance ministers because their
:05:24. > :05:28.whole message is one of multilateralism. They are saying
:05:29. > :05:34.that this meeting over the weekend should get world trade back on track
:05:35. > :05:40.to try and bring down barriers, not to build up barriers. Funnily
:05:41. > :05:45.enough, in China, people see the message from Donald Trump as within
:05:46. > :05:49.the framework of a political campaign. I'm not sure that
:05:50. > :05:53.policymakers really believe Donald Trump when he says this, at least
:05:54. > :05:58.through the state media, that's not the message coming out. Funnily
:05:59. > :06:06.enough, in China there isn't really the level of concern over Donald
:06:07. > :06:08.Trump that you might expect, but the G20 finance ministers meeting I can
:06:09. > :06:14.definitely say that people will talk about this over the weekend and
:06:15. > :06:16.wonder how they can promote multilateral is in a world climate
:06:17. > :06:28.when it seems to be going exactly the other way. So much on the
:06:29. > :06:37.agenda. Stephen, thanks. A quick look at some of the other stories.
:06:38. > :06:39.General Motors may be forced to recall another 4.3 million
:06:40. > :06:41.vehicles for potentially defective Takata air bag inflators -
:06:42. > :06:45.It has already recalled nearly two million cars with the defective
:06:46. > :06:47.airbags following instructions from US regulators.
:06:48. > :06:50.The carmaker said it does not believe there is a safety defect
:06:51. > :06:54.Roger Ailes resigned yesterday as chairman and chief executive
:06:55. > :06:55.of Fox News following allegations
:06:56. > :07:01.Mr Ailes did not give a reason
:07:02. > :07:05.for stepping down, saying only that "he'd become a distraction".
:07:06. > :07:10.He's likely to leave with a $40 million pay package
:07:11. > :07:12.and Rupert Murdoch, who owns parent company 21st Century Fox,
:07:13. > :07:15.will take over as acting Chief Executive and Chairman.
:07:16. > :07:19.Nintendo's Pokemon Go has launched in Japan.
:07:20. > :07:21.The unexpected hit has doubled Nintendo's value since its US
:07:22. > :07:29.First released in the US, Australia and New Zealand,
:07:30. > :07:40.the game is now available in more than 30 countries.
:07:41. > :07:48.Have you played? I haven't yet. No, but I have watched people chase
:07:49. > :07:52.around the office and we have footage that later. I will talk
:07:53. > :07:58.about that a bit more with Rory later. Before we go to the markets,
:07:59. > :08:03.a look at the live page. We have had the boss of Heathrow talking this
:08:04. > :08:07.morning, the chief executive, and there will be a lot of debate about
:08:08. > :08:12.what happens to the expansion of Heathrow in the light of Brexit and
:08:13. > :08:16.the new cabinet. He says he's been on the Today programme and says it's
:08:17. > :08:21.too early to say what the impact of leaving the EU will be, but he says
:08:22. > :08:24.that the majority of MPs in Parliament support the building of a
:08:25. > :08:27.new runway at Heathrow and there is good support in the Cabinet for
:08:28. > :08:32.Heathrow to get the go-ahead. Plenty more on the live page. We've also
:08:33. > :08:40.seen a rise in passenger numbers as well. It normally runs at 97%
:08:41. > :08:42.capacity. The issue of needing more airspace is a huge issue in the UK
:08:43. > :08:44.for a while. We'll start by crossing over
:08:45. > :08:55.Michelle Fleury in New York. No slowdown in the earnings parade.
:08:56. > :09:03.This Friday, big names in corporate America turning their report card.
:09:04. > :09:07.Despite tough conditions in its oil and gas company General Electric is
:09:08. > :09:10.expected to turn on a solid performance. The industrial
:09:11. > :09:13.conglomerate is often seen as good barometer of the broader economy
:09:14. > :09:18.because it has a hand in so many businesses from health care to
:09:19. > :09:21.commodities. Wall Street is also predicting a dip in second-quarter
:09:22. > :09:27.revenue for American Airlines. Brexit has hurt the world's largest
:09:28. > :09:31.airline lowing the value of sterling sales after converting back into
:09:32. > :09:36.dollars. Another cloud hanging over the airline is how the Brexit bow to
:09:37. > :09:39.leave the EU will impact its lucrative London route. And for
:09:40. > :09:42.those interested in the health of the US oil industry, the latest
:09:43. > :09:48.drilling rig count numbers are due out. Michelle therein New York.
:09:49. > :09:49.Joining us is Jane Sydenham, Investment Director,
:09:50. > :10:01.Great to see you. Is the dust beginning to settle? Do we begin to
:10:02. > :10:06.understand what the economy is looking like both here, in the UK
:10:07. > :10:12.and for those countries that trade heavily with us, since the vote to
:10:13. > :10:15.leave the EU? We've only had a few scraps of data in a short period of
:10:16. > :10:19.time because most of them are up to the end of June, but what they
:10:20. > :10:24.indicate is that with the economy it hasn't fallen off a cliff. Life goes
:10:25. > :10:31.on and that is beginning to stabilise sterling. We had some
:10:32. > :10:36.reasonable statistics from Europe and obviously the European Central
:10:37. > :10:40.Bank has decided not to add further stimulus to the system at the
:10:41. > :10:44.moment. They are keeping the firepower back and the UK have done
:10:45. > :10:47.the same, so at the moment we seem to be watching and waiting and
:10:48. > :10:50.things looked like they might be deteriorating a bit. Those are the
:10:51. > :10:57.expectations but it's not disastrous. It's not bad by any
:10:58. > :11:02.sense. We seem to be in a holding pattern in terms of central bank
:11:03. > :11:07.action at the moment. I did protect -- detect a note of irritation from
:11:08. > :11:15.Christine Lingard, the head of the IMF about what Brexit has done to
:11:16. > :11:21.the forecast. Yes. Pre-Brexit economies were settling down from a
:11:22. > :11:25.rough early part of the year. We were settling down, and then
:11:26. > :11:30.suddenly this flight comes into the ointment in the form of Brexit and
:11:31. > :11:34.everything is thrown off track and we have do pull back and make sure
:11:35. > :11:40.it's not going to derail any growth. There was a bit of irritation. Of
:11:41. > :11:44.course, a key driver in all of the market jitters we saw lately has
:11:45. > :11:50.been the fluctuations we saw in some of the currencies, particularly
:11:51. > :11:58.sterling. Are we beginning to see that find a holding pattern? It
:11:59. > :12:07.seems to be settling down at around 1.3 two. That is quite an
:12:08. > :12:10.adjustment. A 10% adjustment is a big adjustment in foreign currency
:12:11. > :12:14.terms. We have to wait and see what happens from here. How much of that
:12:15. > :12:19.is to do with the strength of the dollar and the fact we are seeing
:12:20. > :12:23.some fairly robust growth in the US and, dare I say it, decoupling from
:12:24. > :12:29.what is going on with the rest of the world? It seems fairly isolated.
:12:30. > :12:33.Yes, I think there is a general weakness in sterling but if you step
:12:34. > :12:39.away from the UK then the dollar has strengthened against the euro and we
:12:40. > :12:42.have had good corporate results and the employment numbers are good and
:12:43. > :12:47.manufacturing is looking better. So, yes there is strength there and of
:12:48. > :12:54.course the stock market in the US has continued to power up. And here
:12:55. > :12:57.in the UK we have the PMI data coming out later, a further
:12:58. > :13:03.indication as to how the economy is doing.
:13:04. > :13:06.Still to come: We have our technology editor Rory Cellan-Jones
:13:07. > :13:10.You're with Business Live from BBC News.
:13:11. > :13:13.MPs are calling for Sports Direct to review the way the business
:13:14. > :13:16.is run after accusing it of failing to treat its workers
:13:17. > :13:20.A report has concluded that the founder Mike Ashley,
:13:21. > :13:23.may have turned a blind eye to what were described
:13:24. > :13:34.Theo Leggett joins us in our Business Newsroom.
:13:35. > :13:42.Some pretty damning comments in here, including some comparisons to
:13:43. > :13:46.Victorian workhouses. Absolutely. This is a scathing report. It says
:13:47. > :13:53.appalling working conditions and practices both in the shops and at
:13:54. > :13:57.its main warehouse in Derbyshire. Closer to a Victorian workouts than
:13:58. > :14:01.a modern, reputable high street retailer. It goes on to say that the
:14:02. > :14:04.Sports Direct business model involves treating workers as
:14:05. > :14:10.commodities rather than human beings. It says low-cost products
:14:11. > :14:15.for customers and shareholders came at the cost of working conditions
:14:16. > :14:20.which fell way below acceptable standards, Mike Ashley, the founder
:14:21. > :14:24.and majority shareholder, must be held accountable. There are hearings
:14:25. > :14:29.last month when Mike Ashley appeared before MPs and we heard a number of
:14:30. > :14:35.accusations about what was going on. This included staff being penalised
:14:36. > :14:38.for taking breaks to drink water, serious health and safety breaches
:14:39. > :14:41.and ambulances having to be called frequently, including in one case
:14:42. > :14:42.per woman who gave birth in a company toilet.
:14:43. > :14:52.MPs now say it's incredible that Mike Ashley, who visits the
:14:53. > :14:56.warehouse weekly, was unaware of the practices. The biggest criticism
:14:57. > :15:03.comes in the two agencies working on behalf of Sports Direct unemployed
:15:04. > :15:09.workers. MPs say they did not seem to have a basic understanding of
:15:10. > :15:13.employment law. The committee does say that although Mr Ashley, as they
:15:14. > :15:17.put it, had to be dragged kicking and screaming before the committee,
:15:18. > :15:22.once there he was open and willing to engage. Briefly, what happens
:15:23. > :15:26.now? The committee says it will hold his feet to the fire and visit the
:15:27. > :15:30.where Brett -- warehouse to see what is going on and other government
:15:31. > :15:31.agencies may be involved. HM RCR already looking at the company.
:15:32. > :15:39.Theo, good to talk to you. One quick story, it looks like
:15:40. > :15:44.the Competition and Markets Authority is not going to get in the
:15:45. > :15:46.way of the merger between the home retail group and Sainsbury's, so a
:15:47. > :15:58.relief for the retailer. You are watching the business Live.
:15:59. > :16:02.Finance ministers and central bank governors from G20 nations will meet
:16:03. > :16:06.in China this weekend. It's the last minister level meeting before the
:16:07. > :16:10.G20 Summit kicks off in September and top of the agenda will be trade,
:16:11. > :16:22.protectionism and what Brexit means for the rest of the world. Brexit is
:16:23. > :16:30.never far from our thoughts. It has been dominating peoples thoughts,
:16:31. > :16:36.one thing,. It really has. Probably the biggest deal of the year in the
:16:37. > :16:41.industry, one that sees Japan take control of a prized British asset.
:16:42. > :16:45.Speaking of Japan, Pokemon Go launched in the last 24 hours in
:16:46. > :16:48.Japan, and by all accounts the country has gone crazy along with
:16:49. > :16:53.the rest of the world. We were talking about two of the US tech
:16:54. > :17:00.giants who were buying to take control, so it's all going on. We
:17:01. > :17:06.are talking with our technology guru, Rory Selin Jones. Great to see
:17:07. > :17:15.you. Before we get onto Pokemon Go and world domination, can I talked
:17:16. > :17:18.about what is happening with ARM? It's an extraordinary company, the
:17:19. > :17:22.UK's most successful in Tech over the last 25 years but even in the UK
:17:23. > :17:27.people are not that familiar but it makes the chips that go in these
:17:28. > :17:32.smartphones, your tablet, just about every mobile device. It doesn't
:17:33. > :17:46.manufacture them, it designs them. The design is the key.
:17:47. > :17:55.That has caused big debate in the UK. The government says it is a vote
:17:56. > :17:59.of confidence in the UK. Big debate abound Japan's Softbank. Softbank
:18:00. > :18:03.has made bold bets on a number of businesses. It bought a robotics
:18:04. > :18:07.business in France and has done well with that. It bought a mobile firm
:18:08. > :18:14.in the US. That is not going so well. Heavily indebted. Its leader
:18:15. > :18:20.is incredibly bold. He likes to make these big bets. He says this is a
:18:21. > :18:26.big bet on the future. The rest of his investors are not so sure.
:18:27. > :18:28.Shares fell 10% this week. He believes in the singularity, where
:18:29. > :18:35.the machines take control. Maybe he is trying to by some of those
:18:36. > :18:38.machines first. Talking of machines, you cannot walk through London at
:18:39. > :18:45.the moment without bumping into people doing what you are doing, on
:18:46. > :18:49.the smartphones. I can't do it in the studio because there is no GPS
:18:50. > :18:52.signal. Yes, Pokemon Go, we can't stop talking about it. An
:18:53. > :18:57.extraordinary phenomenon in mobile gaming. And of course, Pokemon is a
:18:58. > :19:03.huge ebony 's cultural phenomenon and now it is launching in Japan. --
:19:04. > :19:08.a huge Japanese cultural and Manon. They had a bit of a whit. These
:19:09. > :19:17.pictures are not in Japan. These are backed people in our office! That is
:19:18. > :19:21.Tom, our producer. He needs to put the phone down and do some work! I
:19:22. > :19:26.am in no position to criticise. I took the dog out for a walk this
:19:27. > :19:29.morning and the dog was not impressed to see me pointing the
:19:30. > :19:34.phone at the Pokemon. But it can be such a lucrative business. In the
:19:35. > :19:43.short term, one of the features of the Japanese deal is that it has
:19:44. > :19:48.done a deal with the American company -- McDonald's has done a
:19:49. > :19:54.deal with the American company that started it, an illustration of how
:19:55. > :19:59.lucrative it can be. And I heard that there is a new Pokemon dating
:20:00. > :20:08.site, where you can find the love of your life! Where will it end? And it
:20:09. > :20:12.has done well for the Nintendo share price, which has doubled. That may
:20:13. > :20:17.be a slight overreaction. I think things were quiet and down on that
:20:18. > :20:22.front. Talking of the titans of tech, Mark Zuckerberg, of course in
:20:23. > :20:28.charge of Facebook, and Elon musk, the real-life iron man, some might
:20:29. > :20:32.say the boss of Tesla, are vying for control? These are two random
:20:33. > :20:40.events, but they tell a tale of tech titans with huge ambitions. Facebook
:20:41. > :20:43.has revealed that it has flown its first drone, aimed at beaming the
:20:44. > :20:46.internet and to developing countries. This is painted as a big
:20:47. > :20:51.philanthropic gesture. These drones will fly at 60,000 to 90,000 feet
:20:52. > :20:57.above villages in sub-Saharan Africa for three months at a time. It is an
:20:58. > :21:01.extraordinary feat if it happens. It is still some years away. We have
:21:02. > :21:08.only had a test flight so far over Arizona. It sounds a wonderful
:21:09. > :21:12.gesture, but of course, Mark Zuckerberg is vying with Google, who
:21:13. > :21:15.are trying to do the same thing. They are flying balloons over
:21:16. > :21:22.developing countries. So that is his bid for global domination of the
:21:23. > :21:26.internet. Don't forget, in lots of places, Facebook almost equals the
:21:27. > :21:35.internet in people's minds, so he will be reinforcing the impression.
:21:36. > :21:40.Elon Musk twitted the other day, I am pulling an all nighter to finish
:21:41. > :21:43.off my master plan. What will it be this time? He has talked about
:21:44. > :21:51.becoming an interplanetary species. Is he going to fly us all to Mars?
:21:52. > :21:54.He is a serial opener. In the end, it was bold, but not crazy. He is
:21:55. > :22:00.going to put a lot more into solar power. He wants us all to have solar
:22:01. > :22:03.roofs that power our batteries. He wants to make electric cars
:22:04. > :22:08.affordable for all across a range of vehicles, and he has this idea that
:22:09. > :22:12.we may not need to own one, we will just be able to summon one to drive
:22:13. > :22:18.up to us and take us away. So he will wipe out over at the same time.
:22:19. > :22:23.He is doing it all, Elon Musk. Thanks, Rory. That story we
:22:24. > :22:27.mentioned earlier, Roger Earls has resigned as the Fox News Channel's
:22:28. > :22:32.chairman and chief executive following accusations of sexual
:22:33. > :22:34.harassment. Earlier today, we spoke to Joe Flint from the Wall Street
:22:35. > :22:41.Journal about this. His departure will be a huge blow for the channel.
:22:42. > :22:46.The organisation is all about him, and he put it together and knows
:22:47. > :22:53.where all the bodies are buried. It will be tough to replace him, to win
:22:54. > :22:57.over the loyalty of the people he has in place. There are going to be
:22:58. > :23:00.seismic changes at this channel over the next few years. Rupert Murdoch's
:23:01. > :23:06.decision to take the acting chairman role, I think, is smart. He is
:23:07. > :23:09.trying to send a message to the Fox News team of how important this
:23:10. > :23:15.channel is to him, that he is aware of what a big deal it is for Roger
:23:16. > :23:19.not to be there, and that his hand is still on the steering wheel. The
:23:20. > :23:22.channel has been doing so well, I don't want to suggest it runs on
:23:23. > :23:28.automatic pilot, it is accommodated operation, with Roger there,
:23:29. > :23:34.everyone knew their role and how to execute it, and I think Rupert hopes
:23:35. > :23:36.to keep that stability there, while at the same time try to determine
:23:37. > :23:46.who is best to run its going forward. . We will have to see what
:23:47. > :23:49.happens. Jane is here to talk through the business pages. Let's
:23:50. > :23:56.begin with this story that picked our interest in the Telegraph. It is
:23:57. > :24:02.entitled huge investor revolt at Babcock over bonuses for retiring
:24:03. > :24:06.bosses. It raises the question of golden handshakes. Are they ever
:24:07. > :24:11.well-deserved? Well, the performance of the Babcock share price has been
:24:12. > :24:18.phenomenal since the management team or the individuals concerned joined
:24:19. > :24:21.the company. That is the engineering services and support services for
:24:22. > :24:26.the defence industry. So support has been tremendous. The worry is, are
:24:27. > :24:30.they being involved in an incentive scheme in which they are not
:24:31. > :24:34.participating actively, that they are not working and contributing to
:24:35. > :24:41.the performance over the coming two or three years this year? It is a
:24:42. > :24:47.question of, is it a reward for current effort or just historic
:24:48. > :24:53.performance? It is difficult, because what is it that shareholders
:24:54. > :24:57.want her? If you have a 12,000% returned since the guy has been in
:24:58. > :25:04.tenure since 2003, what more could you want? Surely you should be
:25:05. > :25:07.rewarding performance. But the issue is, are you rewarding performance
:25:08. > :25:11.currently for someone who is in work, or are you awarding it
:25:12. > :25:15.posthumously? There has been a move to reward chief executives for
:25:16. > :25:21.current work and current incentivising, rather than a track
:25:22. > :25:25.record. So there has been a shift during the period when they have
:25:26. > :25:30.been working for Babcock. Another story we noticed was this one in
:25:31. > :25:37.Bloomberg, talking about Denmark's housing market. This is about the
:25:38. > :25:42.largest mortgage back in Denmark, saying the housing market is out of
:25:43. > :25:46.control? This is due to negative interest rates. Rates have been
:25:47. > :25:49.negative in Denmark for the last four years, which means it costs
:25:50. > :25:53.practically nothing to borrow money, so people will borrow as much as
:25:54. > :25:58.they can. And of course, if the housing market then starts to fall
:25:59. > :26:04.later, there will be negative consequences. Really good to talk to
:26:05. > :26:07.you. That is it from Business Live today. Plenty more on the website
:26:08. > :26:10.and world business report. See you soon.