20/09/2016 BBC Business Live


20/09/2016

Similar Content

Browse content similar to 20/09/2016. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

This is Business Live from BBC News with Sally Bundock

:00:08.:00:10.

World leaders are meeting to discuss the growing

:00:11.:00:13.

problem of migration, and they're likely

:00:14.:00:14.

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

:00:15.:00:36.

An estimated 65 million people have fled their homes,

:00:37.:00:42.

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

:00:43.:00:44.

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

:00:45.:00:48.

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

:00:49.:00:51.

calling into question its promise to cut production.

:00:52.:00:59.

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

:01:00.:01:07.

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

:01:08.:01:10.

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

:01:11.:01:13.

Heslehurst. Toilet! We are alive today and

:01:14.:01:27.

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

:01:28.:01:33.

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

:01:34.:01:40.

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

:01:41.:01:47.

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

:01:48.:01:58.

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

:01:59.:02:00.

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

:02:01.:02:04.

and help those often fleeing war and persecution.

:02:05.:02:06.

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

:02:07.:02:13.

The United Nations estimates that more 65 million people

:02:14.:02:15.

around the world have been forced from the homes.

:02:16.:02:18.

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

:02:19.:02:21.

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

:02:22.:02:32.

45 countries are expected to increase aid to displaced people

:02:33.:02:43.

They're also expected to focus on creating

:02:44.:02:46.

better access to jobs for one million refugees.

:02:47.:02:49.

I spoke to Guy Ryder, Director General of

:02:50.:02:51.

the International Labour Organisation who's in New York.

:02:52.:02:53.

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

:02:54.:02:59.

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

:03:00.:03:07.

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

:03:08.:03:10.

not reasonable or possible to expect those developing countries which by

:03:11.:03:16.

the accident of geographical proximity are bearing most of the

:03:17.:03:20.

responsibility alone. Shared responsibility is one part of the

:03:21.:03:24.

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

:03:25.:03:30.

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

:03:31.:03:35.

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

:03:36.:03:38.

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

:03:39.:03:44.

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

:03:45.:03:46.

another, and we have to manage that access.

:03:47.:03:48.

Dr Carlos Vargas-Silva is an associate Professor

:03:49.:03:50.

at The Centre on Migration, Policy, and Society.

:03:51.:03:52.

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

:03:53.:04:08.

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

:04:09.:04:11.

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

:04:12.:04:15.

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

:04:16.:04:19.

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

:04:20.:04:22.

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

:04:23.:04:29.

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

:04:30.:04:34.

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

:04:35.:04:36.

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

:04:37.:04:42.

but if you pledge money to neighbouring countries, many of

:04:43.:04:46.

those refugees coming to Europe can stay in those countries and

:04:47.:04:50.

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

:04:51.:04:56.

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

:04:57.:05:01.

world leaders that it is very difficult to distinguish between

:05:02.:05:05.

economic migrants and those who are genuinely fleeing persecution, and

:05:06.:05:09.

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

:05:10.:05:15.

actually possible in your view to legitimately and accurately

:05:16.:05:18.

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

:05:19.:05:23.

country because you are escaping violence and you go to a

:05:24.:05:26.

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

:05:27.:05:31.

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

:05:32.:05:36.

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

:05:37.:05:40.

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

:05:41.:05:44.

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

:05:45.:05:48.

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

:05:49.:05:51.

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

:05:52.:05:56.

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

:05:57.:05:59.

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

:06:00.:06:04.

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

:06:05.:06:08.

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

:06:09.:06:11.

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

:06:12.:06:16.

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

:06:17.:06:18.

stories now. The boss of Wells Fargo

:06:19.:06:22.

bank testifies before John Stumpf is expected to apologise

:06:23.:06:23.

after allegations that bank employees created up to two million

:06:24.:06:27.

unauthorised accounts to meet It's thought employees transferred

:06:28.:06:29.

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

:06:30.:06:33.

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

:06:34.:06:35.

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

:06:36.:06:50.

in tax repayments from Apple - and indicated she may investigate

:06:51.:06:53.

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

:06:54.:06:55.

after Apple has sparked tensions with Washington,

:06:56.:06:58.

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

:06:59.:07:00.

China to accelerate measures to tackle overproduction

:07:01.:07:07.

of industrial goods. China has been accused of dumping

:07:08.:07:10.

products at low prices The President met Premier Li Keqiang

:07:11.:07:13.

on the sidelines of the United Nations General Assembly

:07:14.:07:20.

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

:07:21.:07:35.

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

:07:36.:07:39.

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

:07:40.:07:42.

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

:07:43.:07:47.

independent party. He has been talking this morning to BBC

:07:48.:07:50.

Breakfast. Mike Ashley, the founder of the

:07:51.:07:54.

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

:07:55.:07:58.

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

:07:59.:08:02.

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

:08:03.:08:07.

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

:08:08.:08:15.

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

:08:16.:08:21.

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

:08:22.:08:25.

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

:08:26.:08:32.

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

:08:33.:08:35.

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

:08:36.:08:38.

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

:08:39.:08:44.

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

:08:45.:08:48.

words. More about that interview on our

:08:49.:08:49.

website. It's been a cautious trading session

:08:50.:08:54.

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

:08:55.:08:56.

policy meeting on Wednesday. Our Asia Business Correspondent

:08:57.:08:59.

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

:09:00.:09:02.

meeting today. That is right, and the Japanese yen

:09:03.:09:13.

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

:09:14.:09:21.

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

:09:22.:09:27.

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

:09:28.:09:30.

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

:09:31.:09:34.

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

:09:35.:09:39.

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

:09:40.:09:42.

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

:09:43.:09:45.

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

:09:46.:09:50.

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

:09:51.:09:56.

interest rates, the highly controversial policy that the

:09:57.:09:58.

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

:09:59.:10:03.

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

:10:04.:10:09.

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

:10:10.:10:15.

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

:10:16.:10:18.

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

:10:19.:10:30.

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

:10:31.:10:33.

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

:10:34.:10:39.

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

:10:40.:10:47.

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

:10:48.:10:52.

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

:10:53.:10:54.

tomorrow by central banks. And Michelle Fleury has

:10:55.:10:56.

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

:10:57.:11:05.

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

:11:06.:11:08.

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

:11:09.:11:12.

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

:11:13.:11:17.

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

:11:18.:11:21.

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

:11:22.:11:27.

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

:11:28.:11:31.

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

:11:32.:11:36.

the earnings front, package delivery company FedEx reports its

:11:37.:11:40.

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

:11:41.:11:42.

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

:11:43.:11:45.

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

:11:46.:11:49.

Investment Director, Good morning to you. One of the

:11:50.:11:56.

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

:11:57.:12:02.

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

:12:03.:12:07.

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

:12:08.:12:10.

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

:12:11.:12:13.

business since 2010 heading their consumer products division. The

:12:14.:12:17.

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

:12:18.:12:22.

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

:12:23.:12:27.

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

:12:28.:12:30.

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

:12:31.:12:35.

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

:12:36.:12:40.

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

:12:41.:12:48.

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

:12:49.:12:53.

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

:12:54.:12:58.

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

:12:59.:13:02.

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

:13:03.:13:06.

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

:13:07.:13:11.

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

:13:12.:13:16.

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

:13:17.:13:19.

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

:13:20.:13:23.

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

:13:24.:13:28.

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

:13:29.:13:33.

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

:13:34.:13:37.

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

:13:38.:13:41.

away from developing blockbuster drugs to having a portfolio of

:13:42.:13:44.

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

:13:45.:13:51.

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

:13:52.:13:56.

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

:13:57.:13:59.

consumer drugs company and less reliant on these blockbusters.

:14:00.:14:03.

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

:14:04.:14:07.

take us through the papers. See you soon.

:14:08.:14:13.

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

:14:14.:14:15.

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

:14:16.:14:20.

the Inside Track on the $120 billion global boat industry

:14:21.:14:23.

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

:14:24.:14:32.

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

:14:33.:14:38.

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

:14:39.:14:42.

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

:14:43.:14:46.

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

:14:47.:14:50.

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

:14:51.:14:52.

will see you soon. And now a look at some

:14:53.:14:57.

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

:14:58.:15:10.

every 15 seconds. Our business correspondent

:15:11.:15:13.

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

:15:14.:15:20.

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

:15:21.:15:26.

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

:15:27.:15:30.

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

:15:31.:15:33.

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

:15:34.:15:38.

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

:15:39.:15:41.

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

:15:42.:15:47.

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

:15:48.:15:51.

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

:15:52.:15:55.

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

:15:56.:16:00.

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

:16:01.:16:03.

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

:16:04.:16:09.

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

:16:10.:16:15.

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

:16:16.:16:19.

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

:16:20.:16:26.

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

:16:27.:16:30.

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

:16:31.:16:36.

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

:16:37.:16:40.

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

:16:41.:16:45.

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

:16:46.:16:48.

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

:16:49.:16:51.

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

:16:52.:16:54.

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

:16:55.:16:57.

everybody who gets scam Liberal Democrat automatically get their

:16:58.:17:00.

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

:17:01.:17:03.

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

:17:04.:17:08.

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

:17:09.:17:10.

customers who pay. We have got the British apple season

:17:11.:17:26.

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

:17:27.:17:28.

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

:17:29.:17:33.

action on a global crisis. With more people forced

:17:34.:17:38.

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

:17:39.:17:42.

leaders have come together at the United Nations today

:17:43.:17:44.

promising to share responsibility. A quick look at how

:17:45.:17:54.

markets are faring. One story and it is about Central

:17:55.:18:03.

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

:18:04.:18:09.

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

:18:10.:18:14.

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

:18:15.:18:15.

tomorrow. The global boating industry is worth

:18:16.:18:17.

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

:18:18.:18:20.

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

:18:21.:18:22.

now getting the wind back in its sails after

:18:23.:18:27.

the global financial crisis. One of the most important events

:18:28.:18:30.

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

:18:31.:18:35.

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

:18:36.:18:54.

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

:18:55.:18:59.

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

:19:00.:19:03.

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

:19:04.:19:10.

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

:19:11.:19:14.

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

:19:15.:19:19.

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

:19:20.:19:23.

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

:19:24.:19:31.

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

:19:32.:19:36.

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

:19:37.:19:41.

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

:19:42.:19:47.

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

:19:48.:19:51.

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

:19:52.:19:56.

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

:19:57.:19:59.

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

:20:00.:20:05.

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

:20:06.:20:11.

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

:20:12.:20:15.

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

:20:16.:20:22.

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

:20:23.:20:25.

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

:20:26.:20:30.

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

:20:31.:20:37.

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

:20:38.:20:41.

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

:20:42.:20:44.

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

:20:45.:20:49.

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

:20:50.:20:52.

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

:20:53.:20:56.

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

:20:57.:21:00.

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

:21:01.:21:05.

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

:21:06.:21:09.

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

:21:10.:21:14.

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

:21:15.:21:18.

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

:21:19.:21:26.

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

:21:27.:21:29.

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

:21:30.:21:34.

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

:21:35.:21:39.

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

:21:40.:21:44.

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

:21:45.:21:51.

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

:21:52.:21:54.

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

:21:55.:21:58.

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

:21:59.:22:03.

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

:22:04.:22:09.

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

:22:10.:22:11.

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

:22:12.:22:18.

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

:22:19.:22:23.

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

:22:24.:22:27.

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

:22:28.:22:31.

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

:22:32.:22:36.

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

:22:37.:22:43.

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

:22:44.:22:48.

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

:22:49.:22:51.

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

:22:52.:22:56.

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

:22:57.:23:00.

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

:23:01.:23:06.

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

:23:07.:23:10.

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

:23:11.:23:17.

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

:23:18.:23:21.

What other business stories has the media been

:23:22.:23:23.

China creating a global steel champion just as there are concerns

:23:24.:23:36.

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

:23:37.:23:37.

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

:23:38.:23:45.

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

:23:46.:23:51.

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

:23:52.:23:58.

strategically important industry. There is huge over capacity and

:23:59.:24:01.

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

:24:02.:24:04.

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

:24:05.:24:08.

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

:24:09.:24:11.

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

:24:12.:24:21.

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

:24:22.:24:25.

you have two large companies coming together they start to reduce

:24:26.:24:29.

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

:24:30.:24:33.

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

:24:34.:24:44.

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

:24:45.:24:48.

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

:24:49.:24:51.

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

:24:52.:24:56.

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

:24:57.:25:00.

they have to keep on with infrastructure spending in order

:25:01.:25:03.

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

:25:04.:25:09.

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

:25:10.:25:14.

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

:25:15.:25:19.

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

:25:20.:25:24.

undoubtedly some traders have the heightened sense of awareness of so

:25:25.:25:28.

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

:25:29.:25:37.

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

:25:38.:25:41.

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

:25:42.:25:45.

your time. We hope you have enjoyed Business

:25:46.:25:49.

Live today. We will see you tomorrow.

:25:50.:25:51.

Download Subtitles

SRT

ASS