20/09/2016 BBC Business Live


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This is Business Live from BBC News with Sally Bundock


World leaders are meeting to discuss the growing


problem of migration, and they're likely


Live from London, that's our focus on Tuesday the 20th of September.


An estimated 65 million people have fled their homes,


putting economic pressure on those countries that are taking them in.


We'll ask what's being done to easy the burden.


Also in the programme: China's creating a new national steel body


calling into question its promise to cut production.


And it is a mixed pic Jack on the European trade markets. We will talk


you through all you need to know. We'll also be getting


the Inside Track on the $120 billion boat industry with Captain Aaron


Heslehurst. Toilet! We are alive today and


all-day from the live Southampton boat show. -- Ahoy there! There are


lots of sales done here, and I will be back in about 20 minutes speaking


to the big boss of that super yacht right there, it is a sun-seeker.


As you can tell, it is a jam-packed show, so let's get cracking.


We start with the refugee crisis that's dominated so much


Global leaders are in New York for a summit on tackle the problem


and help those often fleeing war and persecution.


And they've got a huge task on their hands.


The United Nations estimates that more 65 million people


around the world have been forced from the homes.


And 80% of refugees are settled in developing economies like Jordan,


The World Bank is calling on world powers to help boost these


45 countries are expected to increase aid to displaced people


They're also expected to focus on creating


better access to jobs for one million refugees.


I spoke to Guy Ryder, Director General of


the International Labour Organisation who's in New York.


I asked him what he hopes will come out of this summit.


I think the first thing to say, and this is really to the fore in the


summit meeting here in New York is shared responsibility. It is simply


not reasonable or possible to expect those developing countries which by


the accident of geographical proximity are bearing most of the


responsibility alone. Shared responsibility is one part of the


job. But then very practical efforts to help out these countries. Labour


market access, I think we have to be clear, is a fundamental element of


the response to the refugee crisis. It is estimated that the average


stay of a refugee in their host country is 17 years. Those people


will work, they will find their way into labour markets one way or


another, and we have to manage that access.


Dr Carlos Vargas-Silva is an associate Professor


at The Centre on Migration, Policy, and Society.


Billions apparently will be pledged. Will it be enough? It is important


to pledge money for this situation. If you live in a country like Syria


and you go to a neighbouring country and cannot make a living, it means


that you are going to be a burden on the state because they have to


provide education for your children, health care and housing, so it is


important for donor countries to pledge more money. There seems to be


a big call for a global approach, a problem that spills over natural


borders -- national borders, but is that even possible given the


sentiment bubbling up through Europe? It is a difficult situation,


but if you pledge money to neighbouring countries, many of


those refugees coming to Europe can stay in those countries and


integrated local economies, so it is a way of helping local economies


deal with the refugees. The UK Prime Minister Theresa May will be telling


world leaders that it is very difficult to distinguish between


economic migrants and those who are genuinely fleeing persecution, and


she says that as a result, plenty of people are posing as refugees. Is it


actually possible in your view to legitimately and accurately


distinguish between the two? It is very difficult. If you leave a


country because you are escaping violence and you go to a


neighbouring country but you can't make a living, you have to keep on


migrating. You might be secure their that you can't make a living, so at


that point, you are moving to economic reasons, but the original


reason for leaving your country was violence and persecution, so it is


difficult to distinguish. Over half of the world's refugees are


children, and this means they don't necessarily have access to


education. Is there any sense of what that will do to the global


economy in the future? It means that the children don't get the education


at the moment and you have a problem, 20 years down the line. So


it is important to put emphasis on that, and that is one of the things


that has come out of the summit, the focus is on getting jobs to refugees


and giving the children proper education. Thank you very much for


your time. Let's have a look at some other


stories now. The boss of Wells Fargo


bank testifies before John Stumpf is expected to apologise


after allegations that bank employees created up to two million


unauthorised accounts to meet It's thought employees transferred


customers' money without telling them and even created fake e-mail


addresses to sign people up The European Union's top competition


regulator has stood by her decision to demand more than $14 billion


in tax repayments from Apple - and indicated she may investigate


other major US companies. Margrethe Vestager's decision to go


after Apple has sparked tensions with Washington,


which in turn said her actions US President Barack Obama has urged


China to accelerate measures to tackle overproduction


of industrial goods. China has been accused of dumping


products at low prices The President met Premier Li Keqiang


on the sidelines of the United Nations General Assembly


in New York. A quick look at the live page and a


developing story, this is Sports Direct, the retailer very much under


fire for its treatment of its staff. It has said its second review of


governance will now be done by an governance will now be done by an


independent party. He has been talking this morning to BBC


Breakfast. Mike Ashley, the founder of the


company, has been grilled by many about the practices of the company,


and this is what he had to say in an interview about ten minutes ago on


BBC breakfast. There are lots of hours in the week that I am not


there, it is open 365 days ee, 24 hours a day, so should I have no


more? Yes. Was I aware of some of things going on? Absolutely not. It


was odd isolated incidents, the rotten apple in the barrel that then


you think, now I have to go into the barrel and find the rotten apple.


Also in that interview, he may struggle to persuade people that the


working practices at his company have improved. He says that he flies


to work by helicopter and his cleaning lady got an ?80,000 bonus.


He admits himself that he is a bit of a PR nightmare, those were his


words. More about that interview on our


website. It's been a cautious trading session


in the Asia markets, cautious ahead of the Bank of Japan


policy meeting on Wednesday. Our Asia Business Correspondent


Karishma Vaswani is in Singapore That is right, and the Japanese yen


meeting today. That is right, and the Japanese yen


is strengthening ahead of that key meeting. It is also the US central


bank meeting that kicks off today and tomorrow, and both are headed


into two days of intense talks. And frankly, investors really don't know


why I think you are seeing this rush why I think you are seeing this rush


to save havens in Asian markets like the Japanese yen for example.


Monetary and the direction it is headed in is the big question for


investors, because if you look at the last three years of stimulus in


Japan, billions of dollars worth of money has been pumped into that


economy, but it has failed to boost growth or inflation, even negative


interest rates, the highly controversial policy that the


central bank implemented at the start of the year, that hasn't


helped either. So while investors in Asia are not expecting that much,


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


very much, Karishma, and I'm sure we will hear from her this time


tomorrow we will know about the bank's actions. This is how the


Nikkei ended its session. Investors don't want to make any moves ahead


of that decision. That is Hong Kong on Wall Street the night before. In


Europe, the price of oil has fallen by about 1%, Brent Crude trading at


$45 a barrel. The FTSE down slightly, Germany up. Similar


sentiment in Europe as they tread water ahead of the decisions made


tomorrow by central banks. And Michelle Fleury has


the details about what's ahead The Federal reserve begins a two-day


monetary policy meeting this Tuesday, whatever the outcome, it is


bound to have an effect on the financial markets. Economists are


forecasting a rate rise this year, but perhaps not until December. The


odds of a September rate hike have fallen in recent weeks. There will


be some last-minute economic data for officials to continue, though.


US housing stock fell in August after rising in June and July. The


report will offer one indication of how strong the US economy is. And on


the earnings front, package delivery company FedEx reports its


first-quarter profits. Investors will be looking for any forward


guidance the company is offering ahead of the busy holiday season.


That is Michelle Fleury there. Joining us is Jane Sydenham,


Investment Director, Good morning to you. One of the


stocks on the move this morning, GSK, shares down about 15p at the


moment, that is down about 1%. Not a huge move given that we have a very


big announcement at the top. Yes, a new chief executive for the


business, a lady called Anna Walmsley who has been with the


business since 2010 heading their consumer products division. The


market is obviously a little uncertain, but I suspect it is just


market conditions generally. What is interesting about this is she is the


sixth FTSE 100 chief executive, and obviously some of the changes that


Philip Hampton has been trying to promote, trying to promote women in


senior management levels, clearly having some effect. And it is quite


a big deal, because she is the first woman to be heading up a Big Pharma


company, 47 years old, she has four children, this is very much the


story that people want to promote, anyone who wants to see more women


on boards, getting up there without forced quitters. Yes, there has been


some great progress in the last few years headed by Philip Hampton,


Vince Cable and so on, really trying to promote women and get them to


network with their seniors and just to get into that boardroom group so


that they can start to get to know the people they need to get to know


in order to be promoted in the same way that their male peers are. Now,


the outgoing boss, Andrew witty, was speaking to the BBC just before he


retires in March, and he was talking about some of the real challenges


ahead for GSK. It is not an easy company she is taking over. It


isn't. There has been a period where the company has been trying to move


away from developing blockbuster drugs to having a portfolio of


consumer businesses. They swapped some assets with Novartis in 2014,


partly consumer assets and some of their oncology drugs and so on, so


they have been trying to reposition themselves to a much more of a


consumer drugs company and less reliant on these blockbusters.


Really interesting, thank you very much. I know you are coming back to


take us through the papers. See you soon.


Emma Walmsley, do come on and be one of our Inside Track guests here on


Business Live! Congratulations. Still to come: We'll be getting


the Inside Track on the $120 billion global boat industry


with Captain Aaron Heslehurst. You have caught me! More than 600


boats here in Southampton, and they vary in all shapes and sizes and


price. The smallest is a three metres $500 canoe, and the biggest,


one of the most expensive, we are on board right now and the master


bedroom, she cost $8 million. We have the big was coming on very


shortly to find out how the business is going, and who is buying them. I


will see you soon. And now a look at some


of the stories from around the UK. A financial scam takes place once


every 15 seconds. Our business correspondent


Theo Leggett has been looking Every 15 seconds? Yes, and these are


just the ones that slip through the net according to the umbrella body.


Seven out of every ?10 in fraud are prevented so these cases, more than


one million of them in the first-half of the year are the one


that is slip through the net and that includes credit card fraud and


chequebook fraud and remote banking. The industry is trying to encourage


people to sit back and think when they get a phone call out of the


blue asking them for their internet passwords or for their PIN number


and think whether or not it is the right information to be giving out


and to stress the fact that people shouldn't be given out Finn numbers


or passwords. A third of the people who are scammed thought they were


being scammed while they were being scammed and they wouldn't he want to


prevent that kind of thing. It happened to me, financial fraud,


some years ago. My bank refunded me the losses as it were. In this


country, the Banking Code says that, banks have to refund us. They must


behaving to pay huge amounts out? It fraud cost the industry ?750


million. It is expected to be higher because the level of fraud is going


up. Card suppliers for example are obliged to refund fraud carried out


in an authorised way using credit cards, but that doesn't mean


everybody gets their money back. If you have willingly given your


confidential to a fraudster who is able to access your bank accounts or


use your credit card details or whatever the banks have a case for


saying that you enough have been negligent. It doesn't mean that


everybody who gets scam Liberal Democrat automatically get their


money back and that figure of three-quarters of a million pounds,


well that does include unfortunately losses which have been caught out by


ordinary people. If the banks are making losses, ultimately, it is the


customers who pay. We have got the British apple season


starting today. It is two weeks later than last year thanks to the


cold weather in 2016. Our top story, a call for collective


action on a global crisis. With more people forced


to flee their homes than at any time since World War II, world


leaders have come together at the United Nations today


promising to share responsibility. A quick look at how


markets are faring. One story and it is about Central


Bank action. A mixed picture in Europe. No staggering move in either


direction, but they are waiting for decisions from the Federal Reserve


and the Bank of Japan and we will be right across that this time


tomorrow. The global boating industry is worth


a staggering $120 billion and guess how many people it employs


in Europe alone? Despite its size, the sector is only


now getting the wind back in its sails after


the global financial crisis. One of the most important events


in the industry's European calendar is the Southampton Boat Show


on the South Coast of England. Hi girls. How are you? Welcome to


Southampton boat Show. As you can see I'm on the bridge if you will of


a super yacht at Southampton. I tell you what, girls, there are 600, more


than 600 actually boats on display here. You mentioned how important


this show is in terms of the whole circuit. It is important in terms of


the number of sales that are done here. Lots of sales. Nearly 400


super yachts, a super yacht, I learned this, a super yacht is a


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


Nearly 400 sold last year. We're going to try to go up here. We're


going to go into the main saloon. This yacht is worth about eight


million bucks. I bought us two. We're going sailing after this. She


is a Sun scoop seeker based in Poole in the United Kingdom, Phil joins


us. Thank you for allowing us on board this, she is OK, isn't she,


really? She is not a bad vessel! Let's get straight into it. How is


business? Business is really good for us a the moment. We have got


into the autumn show season, we started in Cannes two weeks ago. In


the first three days here we have sold ?20 million of yachts. These


shows are selling shows. It is an opportunity for our customers to see


a whole array of boats and we have got five brand-new models so it is a


chance for them to come and see them physically. You have all ranges and


sizes, you go even bigger, I believe. Some will say, OK, if we


compare it to buying a private jet. Some will go there is logic in


buying a private jet because time is money and business is international.


It is a tool. Some may say there is no logic in throwing ?10 million,


?20 million into a vessel like this? It is about leisure time. These


people that buy the yachts are very successful, they have made their


money and this is about how they want to live their private lives and


it is a great experience with their family, with their friends, they can


get away with it, and live in luxury in total privacy in some of the


nicest places in the world. Where is your growth market? Obvious growth


in terms of Asia, the Middle East, the United States is booming as well


and the luxury segment, but the world has become a richer place, the


ultra high worth individuals is expected to grow by 20%. One


interesting thing when I was doing research on there, not only you, but


your competitors in this category, some of the managing directors and


big bosses have come from car firms. You come from Jaguar Land Rover,


others have come from Bentley and McLaren. What's that about? We


design, manufacturer, sell and service luxury products. There is a


lot of learning that I can actually bring to the business, have done in


term of big business, big industry, disciplines and planning and that's


what we have put in place in Sun Seeker setting the business up for a


sustainable future. When you get the millionaires buying the boats, some


often ask for strange things on board, can you tell us one? I heard


one was a shooting range. So this man can shoot off his nine


milimetre? They're spend ago lot of money. It is close to their hearts.


We work with them in terms of their designers and features. You want to


limit how much weight comes on to a boat, but we have got a great design


team that work closely with our customers and end up together with


them, specify a beautiful yacht. Our customers are very private and you


wouldn't even know many of them when they walk on to the boat, you


wouldn't know who they are. They like to keep their lives private and


we will do all we can to actually make sure the feature they want, we


will put on the boat. I'm sure you will. Thank you very much. Girls


where do you want to go? Do you want to go to the Med?


STUDIO: Thanks, Aaron. Lovely, to see you. He does love his boats.


Boats, planes, I don't know what it will be next! Trains!


What other business stories has the media been


China creating a global steel champion just as there are concerns


that actually there is a huge amount of over capacity still in the


market? This is the merger between market? This is the merger between


some companies. In contravention to what was agreed at the G20 summit t


appears that will increase China's capacity in what they deem to be a


strategically important industry. There is huge over capacity and


that's forcing prices down across the world, affecting Europe and


affecting the United States, but the United States has responded with


some protectionist measures to some extent, but you know, it maybe that


Europe is going to have to do the same. Unless the capacity starts to


come down, which it might do if there is a huge merger, often when


you have two large companies coming together they start to reduce


capacity, but it doesn't look like China will deliver on that this


year. It is interesting timing. I know it has gone under the radar.


They have just hosted the G20 in Beijing and when Obama arrived, the


red carpet wasn't ready and he had to exit the plane through the back


door. It is really interesting how this is playing out? Yes. That's


because China has been struggling. The economy has been struggling and


they have to keep on with infrastructure spending in order


keep the going while they have been trying to slow things down. More


quick story for you in the Financial Times, man versus machine. Man comes


out on top if you are a trader. I think what I've worked out some


people genuinely have an instinct and a gut sense of how to trade and


undoubtedly some traders have the heightened sense of awareness of so


many different factors when they're trading that allow them just to make


superior decisions. Well, they know their audience the Financial Times.


They have put it on their front page today! Jane, thank you very much for


your time. We hope you have enjoyed Business


Live today. We will see you tomorrow.


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