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