20/09/2016

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:00:08. > :00:10.This is Business Live from BBC News with Sally Bundock

:00:11. > :00:13.World leaders are meeting to discuss the growing

:00:14. > :00:14.problem of migration, and they're likely

:00:15. > :00:36.Live from London, that's our focus on Tuesday the 20th of September.

:00:37. > :00:42.An estimated 65 million people have fled their homes,

:00:43. > :00:44.putting economic pressure on those countries that are taking them in.

:00:45. > :00:48.We'll ask what's being done to easy the burden.

:00:49. > :00:51.Also in the programme: China's creating a new national steel body

:00:52. > :00:59.calling into question its promise to cut production.

:01:00. > :01:07.And it is a mixed pic Jack on the European trade markets. We will talk

:01:08. > :01:10.you through all you need to know. We'll also be getting

:01:11. > :01:13.the Inside Track on the $120 billion boat industry with Captain Aaron

:01:14. > :01:27.Heslehurst. Toilet! We are alive today and

:01:28. > :01:33.all-day from the live Southampton boat show. -- Ahoy there! There are

:01:34. > :01:40.lots of sales done here, and I will be back in about 20 minutes speaking

:01:41. > :01:47.to the big boss of that super yacht right there, it is a sun-seeker.

:01:48. > :01:58.As you can tell, it is a jam-packed show, so let's get cracking.

:01:59. > :02:00.We start with the refugee crisis that's dominated so much

:02:01. > :02:04.Global leaders are in New York for a summit on tackle the problem

:02:05. > :02:06.and help those often fleeing war and persecution.

:02:07. > :02:13.And they've got a huge task on their hands.

:02:14. > :02:15.The United Nations estimates that more 65 million people

:02:16. > :02:18.around the world have been forced from the homes.

:02:19. > :02:21.And 80% of refugees are settled in developing economies like Jordan,

:02:22. > :02:32.The World Bank is calling on world powers to help boost these

:02:33. > :02:43.45 countries are expected to increase aid to displaced people

:02:44. > :02:46.They're also expected to focus on creating

:02:47. > :02:49.better access to jobs for one million refugees.

:02:50. > :02:51.I spoke to Guy Ryder, Director General of

:02:52. > :02:53.the International Labour Organisation who's in New York.

:02:54. > :02:59.I asked him what he hopes will come out of this summit.

:03:00. > :03:07.I think the first thing to say, and this is really to the fore in the

:03:08. > :03:10.summit meeting here in New York is shared responsibility. It is simply

:03:11. > :03:16.not reasonable or possible to expect those developing countries which by

:03:17. > :03:20.the accident of geographical proximity are bearing most of the

:03:21. > :03:24.responsibility alone. Shared responsibility is one part of the

:03:25. > :03:30.job. But then very practical efforts to help out these countries. Labour

:03:31. > :03:35.market access, I think we have to be clear, is a fundamental element of

:03:36. > :03:38.the response to the refugee crisis. It is estimated that the average

:03:39. > :03:44.stay of a refugee in their host country is 17 years. Those people

:03:45. > :03:46.will work, they will find their way into labour markets one way or

:03:47. > :03:48.another, and we have to manage that access.

:03:49. > :03:50.Dr Carlos Vargas-Silva is an associate Professor

:03:51. > :03:52.at The Centre on Migration, Policy, and Society.

:03:53. > :04:08.Billions apparently will be pledged. Will it be enough? It is important

:04:09. > :04:11.to pledge money for this situation. If you live in a country like Syria

:04:12. > :04:15.and you go to a neighbouring country and cannot make a living, it means

:04:16. > :04:19.that you are going to be a burden on the state because they have to

:04:20. > :04:22.provide education for your children, health care and housing, so it is

:04:23. > :04:29.important for donor countries to pledge more money. There seems to be

:04:30. > :04:34.a big call for a global approach, a problem that spills over natural

:04:35. > :04:36.borders -- national borders, but is that even possible given the

:04:37. > :04:42.sentiment bubbling up through Europe? It is a difficult situation,

:04:43. > :04:46.but if you pledge money to neighbouring countries, many of

:04:47. > :04:50.those refugees coming to Europe can stay in those countries and

:04:51. > :04:56.integrated local economies, so it is a way of helping local economies

:04:57. > :05:01.deal with the refugees. The UK Prime Minister Theresa May will be telling

:05:02. > :05:05.world leaders that it is very difficult to distinguish between

:05:06. > :05:09.economic migrants and those who are genuinely fleeing persecution, and

:05:10. > :05:15.she says that as a result, plenty of people are posing as refugees. Is it

:05:16. > :05:18.actually possible in your view to legitimately and accurately

:05:19. > :05:23.distinguish between the two? It is very difficult. If you leave a

:05:24. > :05:26.country because you are escaping violence and you go to a

:05:27. > :05:31.neighbouring country but you can't make a living, you have to keep on

:05:32. > :05:36.migrating. You might be secure their that you can't make a living, so at

:05:37. > :05:40.that point, you are moving to economic reasons, but the original

:05:41. > :05:44.reason for leaving your country was violence and persecution, so it is

:05:45. > :05:48.difficult to distinguish. Over half of the world's refugees are

:05:49. > :05:51.children, and this means they don't necessarily have access to

:05:52. > :05:56.education. Is there any sense of what that will do to the global

:05:57. > :05:59.economy in the future? It means that the children don't get the education

:06:00. > :06:04.at the moment and you have a problem, 20 years down the line. So

:06:05. > :06:08.it is important to put emphasis on that, and that is one of the things

:06:09. > :06:11.that has come out of the summit, the focus is on getting jobs to refugees

:06:12. > :06:16.and giving the children proper education. Thank you very much for

:06:17. > :06:18.your time. Let's have a look at some other

:06:19. > :06:22.stories now. The boss of Wells Fargo

:06:23. > :06:23.bank testifies before John Stumpf is expected to apologise

:06:24. > :06:27.after allegations that bank employees created up to two million

:06:28. > :06:29.unauthorised accounts to meet It's thought employees transferred

:06:30. > :06:33.customers' money without telling them and even created fake e-mail

:06:34. > :06:35.addresses to sign people up The European Union's top competition

:06:36. > :06:50.regulator has stood by her decision to demand more than $14 billion

:06:51. > :06:53.in tax repayments from Apple - and indicated she may investigate

:06:54. > :06:55.other major US companies. Margrethe Vestager's decision to go

:06:56. > :06:58.after Apple has sparked tensions with Washington,

:06:59. > :07:00.which in turn said her actions US President Barack Obama has urged

:07:01. > :07:07.China to accelerate measures to tackle overproduction

:07:08. > :07:10.of industrial goods. China has been accused of dumping

:07:11. > :07:13.products at low prices The President met Premier Li Keqiang

:07:14. > :07:20.on the sidelines of the United Nations General Assembly

:07:21. > :07:35.in New York. A quick look at the live page and a

:07:36. > :07:39.developing story, this is Sports Direct, the retailer very much under

:07:40. > :07:42.fire for its treatment of its staff. It has said its second review of

:07:43. > :07:47.governance will now be done by an governance will now be done by an

:07:48. > :07:50.independent party. He has been talking this morning to BBC

:07:51. > :07:54.Breakfast. Mike Ashley, the founder of the

:07:55. > :07:58.company, has been grilled by many about the practices of the company,

:07:59. > :08:02.and this is what he had to say in an interview about ten minutes ago on

:08:03. > :08:07.BBC breakfast. There are lots of hours in the week that I am not

:08:08. > :08:15.there, it is open 365 days ee, 24 hours a day, so should I have no

:08:16. > :08:21.more? Yes. Was I aware of some of things going on? Absolutely not. It

:08:22. > :08:25.was odd isolated incidents, the rotten apple in the barrel that then

:08:26. > :08:32.you think, now I have to go into the barrel and find the rotten apple.

:08:33. > :08:35.Also in that interview, he may struggle to persuade people that the

:08:36. > :08:38.working practices at his company have improved. He says that he flies

:08:39. > :08:44.to work by helicopter and his cleaning lady got an ?80,000 bonus.

:08:45. > :08:48.He admits himself that he is a bit of a PR nightmare, those were his

:08:49. > :08:49.words. More about that interview on our

:08:50. > :08:54.website. It's been a cautious trading session

:08:55. > :08:56.in the Asia markets, cautious ahead of the Bank of Japan

:08:57. > :08:59.policy meeting on Wednesday. Our Asia Business Correspondent

:09:00. > :09:02.Karishma Vaswani is in Singapore That is right, and the Japanese yen

:09:03. > :09:13.meeting today. That is right, and the Japanese yen

:09:14. > :09:21.is strengthening ahead of that key meeting. It is also the US central

:09:22. > :09:27.bank meeting that kicks off today and tomorrow, and both are headed

:09:28. > :09:30.into two days of intense talks. And frankly, investors really don't know

:09:31. > :09:34.why I think you are seeing this rush why I think you are seeing this rush

:09:35. > :09:39.to save havens in Asian markets like the Japanese yen for example.

:09:40. > :09:42.Monetary and the direction it is headed in is the big question for

:09:43. > :09:45.investors, because if you look at the last three years of stimulus in

:09:46. > :09:50.Japan, billions of dollars worth of money has been pumped into that

:09:51. > :09:56.economy, but it has failed to boost growth or inflation, even negative

:09:57. > :09:58.interest rates, the highly controversial policy that the

:09:59. > :10:03.central bank implemented at the start of the year, that hasn't

:10:04. > :10:09.helped either. So while investors in Asia are not expecting that much,

:10:10. > :10:15.all eyes are on the bank of Japan and what it might do next. Thank you

:10:16. > :10:18.very much, Karishma, and I'm sure we will hear from her this time

:10:19. > :10:30.tomorrow we will know about the bank's actions. This is how the

:10:31. > :10:33.Nikkei ended its session. Investors don't want to make any moves ahead

:10:34. > :10:39.of that decision. That is Hong Kong on Wall Street the night before. In

:10:40. > :10:47.Europe, the price of oil has fallen by about 1%, Brent Crude trading at

:10:48. > :10:52.$45 a barrel. The FTSE down slightly, Germany up. Similar

:10:53. > :10:54.sentiment in Europe as they tread water ahead of the decisions made

:10:55. > :10:56.tomorrow by central banks. And Michelle Fleury has

:10:57. > :11:05.the details about what's ahead The Federal reserve begins a two-day

:11:06. > :11:08.monetary policy meeting this Tuesday, whatever the outcome, it is

:11:09. > :11:12.bound to have an effect on the financial markets. Economists are

:11:13. > :11:17.forecasting a rate rise this year, but perhaps not until December. The

:11:18. > :11:21.odds of a September rate hike have fallen in recent weeks. There will

:11:22. > :11:27.be some last-minute economic data for officials to continue, though.

:11:28. > :11:31.US housing stock fell in August after rising in June and July. The

:11:32. > :11:36.report will offer one indication of how strong the US economy is. And on

:11:37. > :11:40.the earnings front, package delivery company FedEx reports its

:11:41. > :11:42.first-quarter profits. Investors will be looking for any forward

:11:43. > :11:45.guidance the company is offering ahead of the busy holiday season.

:11:46. > :11:49.That is Michelle Fleury there. Joining us is Jane Sydenham,

:11:50. > :11:56.Investment Director, Good morning to you. One of the

:11:57. > :12:02.stocks on the move this morning, GSK, shares down about 15p at the

:12:03. > :12:07.moment, that is down about 1%. Not a huge move given that we have a very

:12:08. > :12:10.big announcement at the top. Yes, a new chief executive for the

:12:11. > :12:13.business, a lady called Anna Walmsley who has been with the

:12:14. > :12:17.business since 2010 heading their consumer products division. The

:12:18. > :12:22.market is obviously a little uncertain, but I suspect it is just

:12:23. > :12:27.market conditions generally. What is interesting about this is she is the

:12:28. > :12:30.sixth FTSE 100 chief executive, and obviously some of the changes that

:12:31. > :12:35.Philip Hampton has been trying to promote, trying to promote women in

:12:36. > :12:40.senior management levels, clearly having some effect. And it is quite

:12:41. > :12:48.a big deal, because she is the first woman to be heading up a Big Pharma

:12:49. > :12:53.company, 47 years old, she has four children, this is very much the

:12:54. > :12:58.story that people want to promote, anyone who wants to see more women

:12:59. > :13:02.on boards, getting up there without forced quitters. Yes, there has been

:13:03. > :13:06.some great progress in the last few years headed by Philip Hampton,

:13:07. > :13:11.Vince Cable and so on, really trying to promote women and get them to

:13:12. > :13:16.network with their seniors and just to get into that boardroom group so

:13:17. > :13:19.that they can start to get to know the people they need to get to know

:13:20. > :13:23.in order to be promoted in the same way that their male peers are. Now,

:13:24. > :13:28.the outgoing boss, Andrew witty, was speaking to the BBC just before he

:13:29. > :13:33.retires in March, and he was talking about some of the real challenges

:13:34. > :13:37.ahead for GSK. It is not an easy company she is taking over. It

:13:38. > :13:41.isn't. There has been a period where the company has been trying to move

:13:42. > :13:44.away from developing blockbuster drugs to having a portfolio of

:13:45. > :13:51.consumer businesses. They swapped some assets with Novartis in 2014,

:13:52. > :13:56.partly consumer assets and some of their oncology drugs and so on, so

:13:57. > :13:59.they have been trying to reposition themselves to a much more of a

:14:00. > :14:03.consumer drugs company and less reliant on these blockbusters.

:14:04. > :14:07.Really interesting, thank you very much. I know you are coming back to

:14:08. > :14:13.take us through the papers. See you soon.

:14:14. > :14:15.Emma Walmsley, do come on and be one of our Inside Track guests here on

:14:16. > :14:20.Business Live! Congratulations. Still to come: We'll be getting

:14:21. > :14:23.the Inside Track on the $120 billion global boat industry

:14:24. > :14:32.with Captain Aaron Heslehurst. You have caught me! More than 600

:14:33. > :14:38.boats here in Southampton, and they vary in all shapes and sizes and

:14:39. > :14:42.price. The smallest is a three metres $500 canoe, and the biggest,

:14:43. > :14:46.one of the most expensive, we are on board right now and the master

:14:47. > :14:50.bedroom, she cost $8 million. We have the big was coming on very

:14:51. > :14:52.shortly to find out how the business is going, and who is buying them. I

:14:53. > :14:57.will see you soon. And now a look at some

:14:58. > :15:10.of the stories from around the UK. A financial scam takes place once

:15:11. > :15:13.every 15 seconds. Our business correspondent

:15:14. > :15:20.Theo Leggett has been looking Every 15 seconds? Yes, and these are

:15:21. > :15:26.just the ones that slip through the net according to the umbrella body.

:15:27. > :15:30.Seven out of every ?10 in fraud are prevented so these cases, more than

:15:31. > :15:33.one million of them in the first-half of the year are the one

:15:34. > :15:38.that is slip through the net and that includes credit card fraud and

:15:39. > :15:41.chequebook fraud and remote banking. The industry is trying to encourage

:15:42. > :15:47.people to sit back and think when they get a phone call out of the

:15:48. > :15:51.blue asking them for their internet passwords or for their PIN number

:15:52. > :15:55.and think whether or not it is the right information to be giving out

:15:56. > :16:00.and to stress the fact that people shouldn't be given out Finn numbers

:16:01. > :16:03.or passwords. A third of the people who are scammed thought they were

:16:04. > :16:09.being scammed while they were being scammed and they wouldn't he want to

:16:10. > :16:15.prevent that kind of thing. It happened to me, financial fraud,

:16:16. > :16:19.some years ago. My bank refunded me the losses as it were. In this

:16:20. > :16:26.country, the Banking Code says that, banks have to refund us. They must

:16:27. > :16:30.behaving to pay huge amounts out? It fraud cost the industry ?750

:16:31. > :16:36.million. It is expected to be higher because the level of fraud is going

:16:37. > :16:40.up. Card suppliers for example are obliged to refund fraud carried out

:16:41. > :16:45.in an authorised way using credit cards, but that doesn't mean

:16:46. > :16:48.everybody gets their money back. If you have willingly given your

:16:49. > :16:51.confidential to a fraudster who is able to access your bank accounts or

:16:52. > :16:54.use your credit card details or whatever the banks have a case for

:16:55. > :16:57.saying that you enough have been negligent. It doesn't mean that

:16:58. > :17:00.everybody who gets scam Liberal Democrat automatically get their

:17:01. > :17:03.money back and that figure of three-quarters of a million pounds,

:17:04. > :17:08.well that does include unfortunately losses which have been caught out by

:17:09. > :17:10.ordinary people. If the banks are making losses, ultimately, it is the

:17:11. > :17:26.customers who pay. We have got the British apple season

:17:27. > :17:28.starting today. It is two weeks later than last year thanks to the

:17:29. > :17:33.cold weather in 2016. Our top story, a call for collective

:17:34. > :17:38.action on a global crisis. With more people forced

:17:39. > :17:42.to flee their homes than at any time since World War II, world

:17:43. > :17:44.leaders have come together at the United Nations today

:17:45. > :17:54.promising to share responsibility. A quick look at how

:17:55. > :18:03.markets are faring. One story and it is about Central

:18:04. > :18:09.Bank action. A mixed picture in Europe. No staggering move in either

:18:10. > :18:14.direction, but they are waiting for decisions from the Federal Reserve

:18:15. > :18:15.and the Bank of Japan and we will be right across that this time

:18:16. > :18:17.tomorrow. The global boating industry is worth

:18:18. > :18:20.a staggering $120 billion and guess how many people it employs

:18:21. > :18:22.in Europe alone? Despite its size, the sector is only

:18:23. > :18:27.now getting the wind back in its sails after

:18:28. > :18:30.the global financial crisis. One of the most important events

:18:31. > :18:35.in the industry's European calendar is the Southampton Boat Show

:18:36. > :18:54.on the South Coast of England. Hi girls. How are you? Welcome to

:18:55. > :18:59.Southampton boat Show. As you can see I'm on the bridge if you will of

:19:00. > :19:03.a super yacht at Southampton. I tell you what, girls, there are 600, more

:19:04. > :19:10.than 600 actually boats on display here. You mentioned how important

:19:11. > :19:14.this show is in terms of the whole circuit. It is important in terms of

:19:15. > :19:19.the number of sales that are done here. Lots of sales. Nearly 400

:19:20. > :19:23.super yachts, a super yacht, I learned this, a super yacht is a

:19:24. > :19:31.boat that's bigger than 24 meters long. So it is a big business.

:19:32. > :19:36.Nearly 400 sold last year. We're going to try to go up here. We're

:19:37. > :19:41.going to go into the main saloon. This yacht is worth about eight

:19:42. > :19:47.million bucks. I bought us two. We're going sailing after this. She

:19:48. > :19:51.is a Sun scoop seeker based in Poole in the United Kingdom, Phil joins

:19:52. > :19:56.us. Thank you for allowing us on board this, she is OK, isn't she,

:19:57. > :19:59.really? She is not a bad vessel! Let's get straight into it. How is

:20:00. > :20:05.business? Business is really good for us a the moment. We have got

:20:06. > :20:11.into the autumn show season, we started in Cannes two weeks ago. In

:20:12. > :20:15.the first three days here we have sold ?20 million of yachts. These

:20:16. > :20:22.shows are selling shows. It is an opportunity for our customers to see

:20:23. > :20:25.a whole array of boats and we have got five brand-new models so it is a

:20:26. > :20:30.chance for them to come and see them physically. You have all ranges and

:20:31. > :20:37.sizes, you go even bigger, I believe. Some will say, OK, if we

:20:38. > :20:41.compare it to buying a private jet. Some will go there is logic in

:20:42. > :20:44.buying a private jet because time is money and business is international.

:20:45. > :20:49.It is a tool. Some may say there is no logic in throwing ?10 million,

:20:50. > :20:52.?20 million into a vessel like this? It is about leisure time. These

:20:53. > :20:56.people that buy the yachts are very successful, they have made their

:20:57. > :21:00.money and this is about how they want to live their private lives and

:21:01. > :21:05.it is a great experience with their family, with their friends, they can

:21:06. > :21:09.get away with it, and live in luxury in total privacy in some of the

:21:10. > :21:14.nicest places in the world. Where is your growth market? Obvious growth

:21:15. > :21:18.in terms of Asia, the Middle East, the United States is booming as well

:21:19. > :21:26.and the luxury segment, but the world has become a richer place, the

:21:27. > :21:29.ultra high worth individuals is expected to grow by 20%. One

:21:30. > :21:34.interesting thing when I was doing research on there, not only you, but

:21:35. > :21:39.your competitors in this category, some of the managing directors and

:21:40. > :21:44.big bosses have come from car firms. You come from Jaguar Land Rover,

:21:45. > :21:51.others have come from Bentley and McLaren. What's that about? We

:21:52. > :21:54.design, manufacturer, sell and service luxury products. There is a

:21:55. > :21:58.lot of learning that I can actually bring to the business, have done in

:21:59. > :22:03.term of big business, big industry, disciplines and planning and that's

:22:04. > :22:09.what we have put in place in Sun Seeker setting the business up for a

:22:10. > :22:11.sustainable future. When you get the millionaires buying the boats, some

:22:12. > :22:18.often ask for strange things on board, can you tell us one? I heard

:22:19. > :22:23.one was a shooting range. So this man can shoot off his nine

:22:24. > :22:27.milimetre? They're spend ago lot of money. It is close to their hearts.

:22:28. > :22:31.We work with them in terms of their designers and features. You want to

:22:32. > :22:36.limit how much weight comes on to a boat, but we have got a great design

:22:37. > :22:43.team that work closely with our customers and end up together with

:22:44. > :22:48.them, specify a beautiful yacht. Our customers are very private and you

:22:49. > :22:51.wouldn't even know many of them when they walk on to the boat, you

:22:52. > :22:56.wouldn't know who they are. They like to keep their lives private and

:22:57. > :23:00.we will do all we can to actually make sure the feature they want, we

:23:01. > :23:06.will put on the boat. I'm sure you will. Thank you very much. Girls

:23:07. > :23:10.where do you want to go? Do you want to go to the Med?

:23:11. > :23:17.STUDIO: Thanks, Aaron. Lovely, to see you. He does love his boats.

:23:18. > :23:21.Boats, planes, I don't know what it will be next! Trains!

:23:22. > :23:23.What other business stories has the media been

:23:24. > :23:36.China creating a global steel champion just as there are concerns

:23:37. > :23:37.that actually there is a huge amount of over capacity still in the

:23:38. > :23:45.market? This is the merger between market? This is the merger between

:23:46. > :23:51.some companies. In contravention to what was agreed at the G20 summit t

:23:52. > :23:58.appears that will increase China's capacity in what they deem to be a

:23:59. > :24:01.strategically important industry. There is huge over capacity and

:24:02. > :24:04.that's forcing prices down across the world, affecting Europe and

:24:05. > :24:08.affecting the United States, but the United States has responded with

:24:09. > :24:11.some protectionist measures to some extent, but you know, it maybe that

:24:12. > :24:21.Europe is going to have to do the same. Unless the capacity starts to

:24:22. > :24:25.come down, which it might do if there is a huge merger, often when

:24:26. > :24:29.you have two large companies coming together they start to reduce

:24:30. > :24:33.capacity, but it doesn't look like China will deliver on that this

:24:34. > :24:44.year. It is interesting timing. I know it has gone under the radar.

:24:45. > :24:48.They have just hosted the G20 in Beijing and when Obama arrived, the

:24:49. > :24:51.red carpet wasn't ready and he had to exit the plane through the back

:24:52. > :24:56.door. It is really interesting how this is playing out? Yes. That's

:24:57. > :25:00.because China has been struggling. The economy has been struggling and

:25:01. > :25:03.they have to keep on with infrastructure spending in order

:25:04. > :25:09.keep the going while they have been trying to slow things down. More

:25:10. > :25:14.quick story for you in the Financial Times, man versus machine. Man comes

:25:15. > :25:19.out on top if you are a trader. I think what I've worked out some

:25:20. > :25:24.people genuinely have an instinct and a gut sense of how to trade and

:25:25. > :25:28.undoubtedly some traders have the heightened sense of awareness of so

:25:29. > :25:37.many different factors when they're trading that allow them just to make

:25:38. > :25:41.superior decisions. Well, they know their audience the Financial Times.

:25:42. > :25:45.They have put it on their front page today! Jane, thank you very much for

:25:46. > :25:49.your time. We hope you have enjoyed Business

:25:50. > :25:51.Live today. We will see you tomorrow.