06/09/2016

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:00:00. > :00:08.This is Business Live from BBC News with Ben Bland and Sally Bundock.

:00:09. > :00:13.The flags are flying and so are the insults.

:00:14. > :00:15.President Obama has cancelled a meeting with the Philippine leader

:00:16. > :00:18.at this week's ASEAN meeting in Laos after being called

:00:19. > :00:23.Could the spat now derail the world s biggest trade deal?

:00:24. > :00:42.Live from London, that's our top story on the 6th of September.

:00:43. > :00:44.The ASEAN summit has started off with a diplomatic spat,

:00:45. > :00:46.with President Obama's refusal to meet his Philippine counterpart

:00:47. > :00:55.It's now feared that the issue could overshadow Obama's efforts

:00:56. > :01:04.to get the half a trillion dollar Trans Pacific Partnership

:01:05. > :01:07.Also in the programme, following on from a rock-star.

:01:08. > :01:10.Urjit Patel takes over from Raghuram Rajan as governor

:01:11. > :01:15.But can he convince the markets that he has what it takes to tame

:01:16. > :01:24.And here is how the European market to start their trading day. We will

:01:25. > :01:25.look at those in more detail later in the programme.

:01:26. > :01:28.And we'll be getting the inside track on how we can

:01:29. > :01:29.all learn something from the 'super-humans'.

:01:30. > :01:32.With the Paralympics set to kick off tomorrow we speak to the head

:01:33. > :01:35.of Inclusion for London 2012 about how to increase diversity

:01:36. > :01:43.New research has found that women are as likely as men

:01:44. > :01:47.to ask for a pay rise - but are less likely to get one.

:01:48. > :01:50.Today we want your thoughts on what can be done to address

:01:51. > :02:07.With the G20 done and dusted, attention is now moving to yet

:02:08. > :02:11.another major global pow wow with a confusing acronym.

:02:12. > :02:19.The US ASEAN Summit gets underway in Laos today - while the leaders

:02:20. > :02:22.of the ten Southeast Asian Nations will of course be there,

:02:23. > :02:25.the meeting is also being attended by President Obama and the leaders

:02:26. > :02:37.Things are already getting heated at the summit after resident Obama

:02:38. > :02:38.cancelled the meeting with the Filipino president who had earlier

:02:39. > :02:41.called him a son of a whore. The TPP, or Trans-Pacific

:02:42. > :02:52.Partnership will take centre stage at the meeting, with Obama desperate

:02:53. > :02:55.to get the controversial trade deal signed before he leaves

:02:56. > :02:57.office in January. The deal covers 12 nations and 40

:02:58. > :03:00.percent of world commerce - its supporters say it could boost

:03:01. > :03:03.global growth by close to half The other big financial talking

:03:04. > :03:09.point at the summit is the ongoing An estimated $5 trillion worth

:03:10. > :03:15.of global trade passes In July, an international tribunal

:03:16. > :03:21.ruled against Chinese claims to rights over

:03:22. > :03:24.the majority of the Sea, backing a case brought

:03:25. > :03:26.by the Philippines. China is standing firm on its claim

:03:27. > :03:29.though, while the US has been flexing its military

:03:30. > :03:31.might by sailing warships I'm joined by Allie Renison,

:03:32. > :03:51.Head of Europe and Trade Policy Ben was talking through some of the

:03:52. > :03:55.key issues and I know that Barack Obama is very keen to push ahead

:03:56. > :03:59.with the Trans-Pacific Partnership deal. But will he make headway, do

:04:00. > :04:05.you think? It depends on what happens back at home. He does not

:04:06. > :04:11.need to convince the leaders of the summit that they need to sign it. If

:04:12. > :04:16.you look at the Philippines, despite the ongoing row, we have a new

:04:17. > :04:21.president that is not as pro American artist his predecessor.

:04:22. > :04:26.There is no doubt that these countries will want to push ahead

:04:27. > :04:29.with it. -- as his predecessor. But Donald Trump and Hillary Clinton, we

:04:30. > :04:33.have to match candidates who are both either opposed to or want to

:04:34. > :04:38.renegotiate the Trans-Pacific Partnership. The question is, can

:04:39. > :04:45.Obama convince the partners at the ASEAN summit that he can get it

:04:46. > :04:47.results of the Transatlantic Trade results of the Transatlantic Trade

:04:48. > :04:54.and Investment Partnership, which looks like it is also on the rocks.

:04:55. > :04:59.-- there is also the. When it comes to trade policy, it is rearing its

:05:00. > :05:05.head like never before. You have to go back to the days of NAFTA to see

:05:06. > :05:08.this kind of anger and populism surrounding trade policy. I think it

:05:09. > :05:12.is likely that they will get it signed. Whether they get it done

:05:13. > :05:16.before Obama's term in office is up for grabs, it will depend on the

:05:17. > :05:24.composition of Congress as well to see whether this and TTIP get

:05:25. > :05:30.signed. There is a danger that the insults overshadow the main business

:05:31. > :05:36.but there is a lot riding on this. Certainly. The South China Seas

:05:37. > :05:40.dispute is going to be an ongoing issue. Delicate waters to tread.

:05:41. > :05:44.This was supposed to be about Obama cementing his legacy but really it

:05:45. > :05:51.has not been as concrete as he would have liked. And in the meantime, the

:05:52. > :05:54.leaders at the G20 vowing to do more when it comes to protectionism and

:05:55. > :05:58.yet we are all listening to that outcome and thinking, hang on, all

:05:59. > :06:05.we are seeing is trade between nations falling down and walls being

:06:06. > :06:11.built. Yes, trade wars tends to seem like a thing of the past but it is

:06:12. > :06:18.reactionary. If you look at whether it is TTIP running into challenges

:06:19. > :06:25.or TTP running into trouble, and even when we look at Brexit, we are

:06:26. > :06:29.seeing trade policy becoming a real bone of contention in politics

:06:30. > :06:35.again. It will certainly be in the run-up to the election. Very

:06:36. > :06:39.interesting. And as you are aware, Barack Obama is speaking at the

:06:40. > :06:43.moment at the ASEAN summit so if we get any nuggets, we will fill you

:06:44. > :06:48.in. In the meantime, let's round up some other news.

:06:49. > :06:51.British Airways passengers are facing delays after an IT glitch

:06:52. > :06:55.saying its IT teams are "working to resolve this issue".

:06:56. > :06:58.On Monday customers in the US and Canada reported delays

:06:59. > :06:59.at several airports due to IT problems.

:07:00. > :07:02.People flying from San Francisco, Washington DC and Atlanta reported

:07:03. > :07:18.Germany's Bayer has raised its offer for Monsanto to $65 billion in a bid

:07:19. > :07:20.to create a global seeds and pesticides giant.

:07:21. > :07:22.Bayer said it was in advanced talks with Monsanto,

:07:23. > :07:24.but warned there was no guarantee a deal would result.

:07:25. > :07:27.Combining Bayer and Monsanto would create the world's biggest

:07:28. > :07:29.agricultural supplier and be a market leader in the US,

:07:30. > :07:39.European planemaker Airbus has announced orders worth $6.5 billion

:07:40. > :07:46.Vietnam Airlines, JetStar Pacific and the country's only private

:07:47. > :07:47.carrier, VietJet, together ordered 40

:07:48. > :07:54.French President Francois Hollande, who is in Asia for the G20 meeting,

:07:55. > :08:02.and also to drum up business, was present at the signing.

:08:03. > :08:08.We talked about British Airways' technical issues. It cause real

:08:09. > :08:12.problems for passengers yesterday but today, City Airport has pretty

:08:13. > :08:17.much come to a standstill. This is the airport in London. As you can

:08:18. > :08:20.see from that picture, it is very close to Canary Wharf. Flights have

:08:21. > :08:26.gained access to the runway. The gained access to the runway. The

:08:27. > :08:30.protesters are part of the black lives matter movement. They are

:08:31. > :08:34.taking the action in order to highlight the UK's environmental

:08:35. > :08:39.impact on the lives of black people locally and globally. A lot more on

:08:40. > :08:42.that on our website. Now India is the world's fastest

:08:43. > :08:45.growing major economy. And today it has a new

:08:46. > :09:04.central bank governor. What more can you tell us about this

:09:05. > :09:10.new character? Well, it is coming at an interesting time because Raghuram

:09:11. > :09:19.Rajan was very well-known globally. It was thought that he would carry

:09:20. > :09:23.on for some time but that did not happen and Urjit Patel got promoted

:09:24. > :09:28.ahead of many others in the race. Mr Patel has a strong track record. He

:09:29. > :09:33.has a Ph.D. From jail and he has been an adviser to the government on

:09:34. > :09:39.many issues. His significance has been that he has always focused on

:09:40. > :09:45.inflation and that is what he and his predecessor, they had the same

:09:46. > :09:49.point of view. Many think that choice is right because Mr Patel

:09:50. > :09:56.will keep the focus on inflation. It is down to 6% but the central bank

:09:57. > :10:00.wants to bring it down to 4%. That would help India's economy.

:10:01. > :10:03.Remember, the standard of living over here gets affected by inflation

:10:04. > :10:09.because so many people live below the poverty line. In the last three

:10:10. > :10:13.or four my dears, he was responsible for setting up this new committee,

:10:14. > :10:20.which will now decide interest rates, so it will no longer be the

:10:21. > :10:25.sole prerogative of the bank, but a company that will be taking a

:10:26. > :10:31.decision a committee like in the UK and the US. He was be taking the

:10:32. > :10:35.reins of the committee, and many see that that will be crucial as to how

:10:36. > :10:38.interest rates change over the coming months. Overall, confidence

:10:39. > :10:43.that he is the right man for the job. I give very much indeed. --

:10:44. > :10:45.thank you very much indeed. Japanese shares edged higher

:10:46. > :10:48.on Tuesday as banks were among The Nikkei was 0.3% higher,

:10:49. > :10:53.hitting a three-month high. In China, the mainland

:10:54. > :10:55.Shanghai Composite was flat while Australian equities were down

:10:56. > :11:06.as the country's central bank decided to hold interest

:11:07. > :11:13.rates steady at 1.5%. US markets were closed

:11:14. > :11:21.on Monday for Labor Day. Let's look at the European markets.

:11:22. > :11:26.The price of oil going up, helping energy stocks.

:11:27. > :11:32.Joining us is Jane Foley, Senior Currency Strategist at Rabobank.

:11:33. > :11:40.And then we'll sneak back on set to join the conversation. Nice to see

:11:41. > :11:44.you, Jane. Let's talk about oil. A 5% spike in a short period of time

:11:45. > :11:50.on Monday. It is hovering higher again. It has gone up and down. It

:11:51. > :11:56.is interesting, because we did get their news, and we were having talks

:11:57. > :12:00.between Saudi and Russia. This is interesting because of you do not

:12:01. > :12:03.get talks between these two groups. Often words from both but the fact

:12:04. > :12:08.they are communicating is a positive signal. They will be talking again

:12:09. > :12:12.in September, October and November but we have to remain sceptical.

:12:13. > :12:16.Even if there are talks or agreements between those two, the

:12:17. > :12:20.Saudis have said they are not going to freeze. And at the end of

:12:21. > :12:27.September, there is an unofficial Opec meeting. So when it comes to

:12:28. > :12:30.trade and oil, any excuse to have a play. But if we look at Opec

:12:31. > :12:34.specifically, it is very difficult for them to come through with the

:12:35. > :12:39.quotas they stick to. Again, the market will very sceptical, even if

:12:40. > :12:44.there is some sort of agreement between Saudi and Russia, it does

:12:45. > :12:47.not mean anything, and the likes of Iran will not be included,

:12:48. > :12:55.potentially. Interesting data from the British Retail Consortium will

:12:56. > :12:59.stop after the positive deep they -- which is retail Consortium. After

:13:00. > :13:02.positive data last month, High Street sales dipping. This is

:13:03. > :13:09.interesting because after the referendum, a lot of the data came

:13:10. > :13:12.back strongly, including what you are referring to. Some of the retail

:13:13. > :13:18.sales were strong, in addition to the official data but this survey is

:13:19. > :13:21.for August, and it is very weak. We have to remember that some of the

:13:22. > :13:26.strength in July was related to the weather. What we need to see now is

:13:27. > :13:32.the rest of the survey data, Visa, Barclaycard, that was all strong in

:13:33. > :13:38.July. Will it be we interesting. Thank you for coming to see us. We

:13:39. > :13:41.will look at the papers with Jane in five minutes. Still to come, what

:13:42. > :13:42.lessons can businesses learn from the Paralympics?

:13:43. > :13:45.We'll speak to the head of diversity and inclusion for London 2012.

:13:46. > :13:50.You're with Business Live from BBC News.

:13:51. > :13:53.Let's talk about a story that is really dominating here in the UK

:13:54. > :13:54.today. Ahead of what could be

:13:55. > :13:56.a fiery AGM tomorrow, retailer Sports Direct has promised

:13:57. > :14:00.to make sure all its staff are paid minimum wage and an end to zero

:14:01. > :14:16.hours contracts for casual staff. Talk us through what we can expect

:14:17. > :14:20.from this? First, let's mention that promise to allow staff to have an

:14:21. > :14:24.alternative to zero hours contracts. That sounds like a big thing for

:14:25. > :14:30.Sports Direct and for its retail staff it may well be the case. But

:14:31. > :14:35.what Sports Direct is saying is that this will only apply to retail staff

:14:36. > :14:39.employed casually, directly by the company. That means that it

:14:40. > :14:44.effectively excludes agency workers. The criticisms that have been led at

:14:45. > :14:48.Sports Direct over the past few months have been focused mainly on

:14:49. > :14:50.conditions at its Shirebrook Colliery house in Derbyshire. Most

:14:51. > :14:55.of the people who work there, nearly all of them are agency workers. So

:14:56. > :15:01.they will not be covered by this. While it sounds like a positive

:15:02. > :15:05.step, it is not universal through the company and does not address all

:15:06. > :15:09.the criticisms. That said, what Sports Direct has done is produce a

:15:10. > :15:15.report focusing on the criticisms levelled at it by MPs at a committee

:15:16. > :15:19.hearing in June. If you look at the share price in June, Sports Direct

:15:20. > :15:23.was looking at a lot of problems, not least of the fallout from the

:15:24. > :15:27.Brexit vote, producing a fall in the share price. But it also affected a

:15:28. > :15:33.wave of publicity about working practices at Shire Brooke. In

:15:34. > :15:36.particular, the six strikes and you are out policy, a disciplinary

:15:37. > :15:40.policy which the company concedes was our victory. It puts too much

:15:41. > :15:44.power in the hands of a few people and it should go. That is one of the

:15:45. > :15:48.bigger elements of this internal report that has come out today, made

:15:49. > :15:53.on but have all Sports Direct's management. They say they will ask

:15:54. > :15:58.agencies to immediately suspend use of this policy, but they also

:15:59. > :15:59.concede that reforming the culture of the warehouse will take what

:16:00. > :16:14.longer than three months. Just to say Sports Direct's spares

:16:15. > :16:17.up 2%. Formula One, US media group Liberty Media is said to be in

:16:18. > :16:19.advanced talks to buy a stake in Formula One. Yes, there is more on

:16:20. > :16:27.that on the website. Our top story, straight

:16:28. > :16:31.from the G20 in China, President Obama has arrived in Laos

:16:32. > :16:34.where he'll meet Southeast Asian leaders for the last time

:16:35. > :16:36.before he leaves office. Back home, he's trying to sell

:16:37. > :16:38.the Trans-Pacific Partnership The 12 nation free trade pact has

:16:39. > :16:45.been agreed but not given the final As are the new presidents in waiting

:16:46. > :16:58.either Clinton or Trump. A quick look at how

:16:59. > :17:15.markets are faring. Some breaking news. The Met Police,

:17:16. > :17:20.there are nine protesters on the runway at City Airport. Yes, the

:17:21. > :17:23.story we were talking about earlier. The police say they have erect add

:17:24. > :17:29.tripod and locked themselves together. The disruption started at

:17:30. > :17:34.5.40am UK time. Officers were alerted to a number of protesters

:17:35. > :17:37.who made their way air-side at London's City Airport. Officers

:17:38. > :17:41.currently on the scene negotiating with them. If you are flying in or

:17:42. > :17:47.out, check before you leave. You may well get stuck in that airport. You

:17:48. > :17:52.can watch us on the TV! You were doing that the other day, Ben. There

:17:53. > :17:55.you go, there is always an up side to these things.

:17:56. > :17:59.With the Rio Paralympics kicking off this week,

:18:00. > :18:01.the issue of diversity especially in the workplace is at

:18:02. > :18:05.Stephen Frost is an expert in the benefits of diversity to any

:18:06. > :18:11.As Head of Diversity and Inclusion for the London 2012 Olympics

:18:12. > :18:16.and Paralympics, he helped achieve unprecedented levels of diversity

:18:17. > :18:21.In fact, out of 200,000 staff at London 2012,

:18:22. > :18:24.40% were from an ethnic minority and nearly half

:18:25. > :18:34.Meanwhile, 5% of the London 2012 staff were from the LGBT group,

:18:35. > :18:37.but is there any real evidence of a link between diversity

:18:38. > :18:48.Stephen Frost is founder and principal at Frost Included.

:18:49. > :18:55.Thank you Stephen for coming in. I'm told the Paralympics is this week,

:18:56. > :19:00.not next week, my apologies. Let's talk about that because you're going

:19:01. > :19:04.out there to help out and it is not been a smooth pathway at all. At one

:19:05. > :19:08.point we thought ten teams were not being able to participate because of

:19:09. > :19:12.lack of funding. It sounds like it will be all right though this week.

:19:13. > :19:17.I think some people have really got involved. The mayor has been great.

:19:18. > :19:21.Some private sector organisations got involved and colleagues are

:19:22. > :19:27.working around the clock to make sure it is as successful as it will

:19:28. > :19:30.be. The ten teams will participate? That's what I understand, yes. What

:19:31. > :19:34.are the difficulties you face when you're trying to up the levels of

:19:35. > :19:39.representation at London 2012, did you come across any barriers or any

:19:40. > :19:42.hurdles in convincing people this would bring a wider benefit? That's

:19:43. > :19:46.key. It is convincing people. Particularly people who don't think

:19:47. > :19:50.that they are diverse. This is in their interests too. I think one of

:19:51. > :19:54.the things, we're all nice, human beings, we want to do the right

:19:55. > :19:58.thing, but unconsciously we tend to recruit people in our own image and

:19:59. > :20:00.tend to hang out with people like ourselves, that's natural and

:20:01. > :20:03.normal. If you want to have diversity, you have got to do

:20:04. > :20:07.something. It is trying to convince people that having a more diverse

:20:08. > :20:10.group of people around the table would actually benefit ourselves as

:20:11. > :20:14.well as the wider society and Games. I must admit when it comes to this

:20:15. > :20:18.subject and the fact that we haven't made as much progress as we thought

:20:19. > :20:22.we might have done, I'm always surprised because I feel like for

:20:23. > :20:26.years we have been banging on about the benefits of diversity and the

:20:27. > :20:29.benefits to business in particular. Why aren't we making progress? Many

:20:30. > :20:36.reports in the UK have shown that when it comes to issues of gender

:20:37. > :20:41.and diversity we've gone backwards? Often we have done this thing

:20:42. > :20:45.because we have to. It has been a compliance driven exercise or it is

:20:46. > :20:49.marketing, it makes us look good. Both those things are important, but

:20:50. > :20:52.they are insufficient. If you want to achieve step change, it is about

:20:53. > :20:56.leadership and it is about people want to go do this because it is in

:20:57. > :21:00.our own interest as well as the greater good and that's something

:21:01. > :21:03.that's tested at difficult times and recent years have been particularly

:21:04. > :21:08.challenging. I suppose the mark of success is when your organisation is

:21:09. > :21:16.no longer needed? That's true. That would be wonderful and I can retire

:21:17. > :21:19.happily, but in the meantime because the default position is that we

:21:20. > :21:24.understand there are benefits and diversity, we have to make it happen

:21:25. > :21:28.through recruitment policies, through training, through nudges,

:21:29. > :21:32.through lots of things that we can do to create a more diverse

:21:33. > :21:40.workforce. Stephen, we will have to leave it there. Stephen Frost thank

:21:41. > :21:42.you very much indeed. We asked you to send your thoughts

:21:43. > :21:58.on the issue of gender pay. We will keep you up-to-date with all

:21:59. > :22:01.the latest details with insight and analysis from the BBC's team of

:22:02. > :22:06.editors around the world. And we want to hear from you too. Get

:22:07. > :22:11.involved on the BBC Business Live web page. :

:22:12. > :22:18.On Twitter, we're at: And you can find us on Facebook:

:22:19. > :22:27.Business Live on TV, and online whenever you need to know.

:22:28. > :22:29.We want to hear from you. Jane has returned to talk us through the

:22:30. > :22:42.stories in the papers. One is the issue of gender pay. A

:22:43. > :22:49.viewer tweeted, "Remove the gender gap." Another viewer tweeted to say,

:22:50. > :22:53."It starts with bargaining power. Somewhere women failed to improve on

:22:54. > :22:59.it in due process." It depends very much on where you work, Jane. I did

:23:00. > :23:04.warn Jane I'd ask her this question in advance. Have you found this an

:23:05. > :23:10.issue? My age group and above have done so. I remember years ago

:23:11. > :23:14.finding out that the person I was training was earning more than me.

:23:15. > :23:20.When I was working for Barclays I was told, "We have to pay you more."

:23:21. > :23:25.Somebody in their HR was looking at the statistics and was trying to

:23:26. > :23:30.equalise it. I found out someone doing the same job as me was made a

:23:31. > :23:33.lot more and I highlighted the issue and I saw a pay increase, but I

:23:34. > :23:41.could have gone through my working life for that organisation not

:23:42. > :23:51.knowing being paid a lot less. Let's look at The Telegraph, Telefoniaa to

:23:52. > :23:55.float O2 and infrastructure business after merger knock-back. They wanted

:23:56. > :24:02.merge. It was blocked by the competitive authorities. It has 50

:24:03. > :24:08.billion euro debt pile. They wanted to do the merger. Now they're going

:24:09. > :24:11.to try and float O2. Does it matter to customers whether they achieve

:24:12. > :24:15.this or not? I think for customers, it is good service. Really that's

:24:16. > :24:18.what most customers want, whether or not it is floated to the majority,

:24:19. > :24:23.it probably doesn't make much difference. Let's look at this story

:24:24. > :24:26.which is really interesting in the Financial Times, Brazil follows UK

:24:27. > :24:31.and Australia in search of gambling tax. Brazil looking at every

:24:32. > :24:38.possible avenue to get some money in? They're saying there is a ban on

:24:39. > :24:43.gambling in Brazil. Gambling laws are different in countries and in

:24:44. > :24:48.the UK it is liberalised in, but in parts of the US it is too. In the US

:24:49. > :24:53.betting on sports is illegal. The reason why Brazil is doing it is to

:24:54. > :24:57.get the tax revenue. In the UK a significant amount of gambling

:24:58. > :24:59.revenue comes through, however in some liberalised countries like

:25:00. > :25:02.Australia, they're going the other way, they are trying to tighten up

:25:03. > :25:08.on gambling because of the effects on the individual. Jane, do you have

:25:09. > :25:11.a pet? I don't, unfortunately. OK. You have heard of grumpy cat. We can

:25:12. > :25:16.say about grumpy dog. Have you soon the photos? They're wonderful and

:25:17. > :25:20.perhaps the best thing about this. This dog is in such demand from

:25:21. > :25:25.talent agencies his owner has been able to fund her degree. Fantastic!

:25:26. > :25:33.What a good, normally pets cost you an arm and a leg, especially dogs,

:25:34. > :25:39.the walking fees and the vet bills. This is a young woman with a very

:25:40. > :25:47.entrepreneurial spirit! Dogs do well. A photo of your pet

:25:48. > :25:51.online. There is a medical issue with a cat, but I don't know about

:25:52. > :25:55.the dog, but he looks just grumpy! He looks scary as well. If you look

:25:56. > :26:01.at the other pictures. Grumpy and scary. Nice to see you Jane. That's

:26:02. > :26:03.it from Business Live today. More tomorrow. See you soon.