Browse content similar to 28/10/2016. Check below for episodes and series from the same categories and more!
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with Victoria Fritz and Jamie Robertson. | :00:00. | :00:08. | |
Are Uber drivers being taken for a ride? | :00:09. | :00:10. | |
A UK court is set to rule on demands for paid leave and pensions, | :00:11. | :00:14. | |
in a major test case for the gig economy. | :00:15. | :00:20. | |
Live from London, that's our top story on Friday the 28th of October. | :00:21. | :00:37. | |
Drivers for the cab-hailing firm Uber | :00:38. | :00:39. | |
will learn later whether they are entitled | :00:40. | :00:42. | |
to holiday pay, rest breaks and the national living wage. | :00:43. | :00:45. | |
booming ad sales spell out big profits for Google owner, Alphabet. | :00:46. | :00:55. | |
European markets have been open about half an hour. | :00:56. | :01:00. | |
A lot happening in the banking sector. | :01:01. | :01:02. | |
Royal Bank of Scotland shares up strongly. | :01:03. | :01:04. | |
And we'll be getting the inside track on a huge trade deal | :01:05. | :01:10. | |
that was on and then off - and then back on again, | :01:11. | :01:14. | |
a global economy that seems to be getting back on track | :01:15. | :01:16. | |
Today we want to know, would you be prepared to pay more | :01:17. | :01:22. | |
for your Uber if the money went to the driver? | :01:23. | :01:25. | |
We start here in London where a court is due to rule | :01:26. | :01:41. | |
on what's being called the employment case of the year. | :01:42. | :01:45. | |
Taxi hailing app Uber is being sued by 19 of its drivers | :01:46. | :01:48. | |
demanding the right to holiday and sick pay and a pension. | :01:49. | :01:52. | |
It could have major implications for the wider gig economy, | :01:53. | :01:57. | |
where companies use apps to employ people on a freelance basis, | :01:58. | :01:59. | |
for everything from deliveries to baby-sitting. | :02:00. | :02:02. | |
For Uber, there is a huge amount at stake. | :02:03. | :02:05. | |
In just six years, it has ballooned from a tiny start up to a company | :02:06. | :02:09. | |
spanning 70 countries and valued at $66 billion. | :02:10. | :02:12. | |
Uber has always maintained that its drivers are self-employed. | :02:13. | :02:15. | |
They get to work as little or often as they wish | :02:16. | :02:17. | |
but without the benefits of staff employees. | :02:18. | :02:19. | |
However, the plaintiffs argue they are employed by the company, | :02:20. | :02:23. | |
so it owes them paid leave and a pension. | :02:24. | :02:27. | |
If the judge agrees, tens of thousands | :02:28. | :02:31. | |
of other UK Uber drivers could claim the same benefits. | :02:32. | :02:36. | |
That could push up the cost of booking an Uber ride here in the UK. | :02:37. | :02:40. | |
Uber is fighting similar challenges around the world. | :02:41. | :02:47. | |
In August, a US judge rejected a $100 million deal | :02:48. | :02:49. | |
saying that the settlement was not fair, | :02:50. | :02:53. | |
But not everyone who drives for Uber is unhappy with the way it operates. | :02:54. | :02:58. | |
Here are two London drivers who have very different views. | :02:59. | :03:22. | |
I am not self-employed. The definition of self-employed is that | :03:23. | :03:30. | |
I create the business, where I do not. I follow the app, and that gets | :03:31. | :03:37. | |
me access to the job, and I do not get paid. Uber get paid, and they | :03:38. | :03:48. | |
control all these things. I was always a creative person, I run | :03:49. | :03:53. | |
different projects, a tech start-up, we are very busy. Sometimes I cannot | :03:54. | :03:58. | |
drive for days, OK, all week I am going to drive on Uber and make some | :03:59. | :04:04. | |
cash. All the benefits, they are enjoying it, and I left all alone | :04:05. | :04:08. | |
just to fulfil the responsibility. With the responsibility there comes | :04:09. | :04:14. | |
a price, holiday pay, pension, all these things. I don't want to be | :04:15. | :04:19. | |
owned by it, I don't want to be ruled by a company. I want to be | :04:20. | :04:23. | |
able to build my own business, or when I go away, I don't need to ask | :04:24. | :04:28. | |
for permission, is it OK if I am not working this week? I cannot do that. | :04:29. | :04:31. | |
Anna McCaffrey is an employment lawyer at Taylor Wessing. | :04:32. | :04:35. | |
You can take us through some of the details, why do the drivers say they | :04:36. | :04:42. | |
want to be treated as employees? What is the ultimate? They're | :04:43. | :04:46. | |
adamant is essentially around control, in that they say whilst | :04:47. | :04:51. | |
Uber acts as an app, they control how drivers pick people up, the fact | :04:52. | :04:55. | |
that they can give and take feedback on the ride and the driver, and also | :04:56. | :05:00. | |
in relation to how Uber sets prices, that means that they are not really | :05:01. | :05:06. | |
acting at arms length, as Uber have claimed. Really, they are under | :05:07. | :05:10. | |
control and are real workers and should therefore get workers' | :05:11. | :05:15. | |
rights. As an employment lawyer, is their case a strong one? It is | :05:16. | :05:20. | |
definitely very interesting. Employment status has always been a | :05:21. | :05:26. | |
grey area, and since the days of master and servant, we have tried to | :05:27. | :05:30. | |
figure out who is self-employed and who is an employee, but now we are | :05:31. | :05:35. | |
trying to apply this to different situations, and technology has | :05:36. | :05:38. | |
really changed that. They do have a good case, but equally I think the | :05:39. | :05:43. | |
company, Uber, have a lot of valid points to make. What is their main | :05:44. | :05:50. | |
point? Uber's case is that they are not a taxi company, they are a | :05:51. | :05:54. | |
technology company, and they act as a platform to connect freelancers, | :05:55. | :05:58. | |
the drivers, with customers, and that they are not controlling those | :05:59. | :06:02. | |
people, they are the facilitator rather than an employer. It is a | :06:03. | :06:07. | |
little rich, isn't it? In terms of the spirit and the letter of the | :06:08. | :06:14. | |
law, ask any consumer what Uber is, it is a taxi hailing app. That is | :06:15. | :06:21. | |
the thing about the gig economy, the new way of getting surfaces, their | :06:22. | :06:24. | |
argument is they are just providing a platform for taxi companies. Even | :06:25. | :06:35. | |
traditionally black taxi tarmac cab drivers have been self-employed. | :06:36. | :06:40. | |
What could be knock-on effects be? There is a cost to Uber itself of | :06:41. | :06:45. | |
having to pay holiday pay, sick pay, pensions - that could be phenomenal | :06:46. | :06:49. | |
and could potentially affect the viability of the business model. On | :06:50. | :06:54. | |
a wider scale, there are a lot of companies in the digital economy | :06:55. | :06:58. | |
that have similar platforms, they are looking very carefully at the | :06:59. | :07:01. | |
outcome to see what it might mean for them. The third reason is that | :07:02. | :07:07. | |
there is a lot of political focus on this, the Government are looking at | :07:08. | :07:11. | |
Venice, whether we have got the right balance between self-employed | :07:12. | :07:14. | |
and the rights of companies. Thank you very much indeed. | :07:15. | :07:16. | |
the company behind search giant Google. | :07:17. | :07:19. | |
Its shares have been on the rise in after hours trade, | :07:20. | :07:22. | |
after a 27% jump in quarterly profit. | :07:23. | :07:25. | |
It made more than $5 billion in the three months to September. | :07:26. | :07:30. | |
It's mostly down to booming advertising sales. | :07:31. | :07:32. | |
But Alphabet has also been spending a fortune | :07:33. | :07:34. | |
gambling on new technology what it calls other bets. | :07:35. | :07:37. | |
Here's the BBC's tech reporter in San Francisco, Dave Lee. | :07:38. | :07:42. | |
Google's success in this quarter has been largely down | :07:43. | :07:44. | |
Compared to this time last year, interactions with mobile apps | :07:45. | :07:50. | |
has gone up by around 33%, which is quite something | :07:51. | :07:54. | |
given that many people thought Google's Achilles heel | :07:55. | :07:57. | |
a few years ago might have been making the transition from desktop | :07:58. | :08:00. | |
advertising to interactions when we are on the move. | :08:01. | :08:04. | |
Also interesting from Alphabet's earnings | :08:05. | :08:06. | |
These are things that are not related to the core Google business, | :08:07. | :08:11. | |
but are slightly more outlandish or experimental ideas. | :08:12. | :08:17. | |
The other bets include things like the Nest thermostat | :08:18. | :08:21. | |
that Google sells, and also fibre, an effort to install | :08:22. | :08:23. | |
superfast broadband in cities all across the US. | :08:24. | :08:25. | |
We know these are the bets that have made a bit more money, | :08:26. | :08:28. | |
compared to $141 million this time last year. | :08:29. | :08:36. | |
While Google's core business is search and advertising | :08:37. | :08:39. | |
at the moment, who knows which one of these other bets | :08:40. | :08:42. | |
will end up being Google's main business in the feature? | :08:43. | :08:46. | |
It could take time and patience, but Google and Alphabet | :08:47. | :08:50. | |
for the time being seem to be very much on the right track. | :08:51. | :09:00. | |
There has been some surprisingly downbeat news from Amazon | :09:01. | :09:02. | |
The last three months produced lower profits than expected, | :09:03. | :09:05. | |
and it says the Christmas season, which is vital to its business, | :09:06. | :09:08. | |
is not going to be as profitable as it hoped. | :09:09. | :09:12. | |
On top of that, it's investing heavily in new ways | :09:13. | :09:15. | |
of shipping parcels by drones and in video productions. | :09:16. | :09:17. | |
UPS has ordered 14 Boeing 747s in a deal worth around $5.3 billion. | :09:18. | :09:21. | |
and Boeing had said it was thinking of stopping production altogether - | :09:22. | :09:27. | |
But this may breathe new life into the iconic old jet. | :09:28. | :09:37. | |
Another casualty of the falling pound. | :09:38. | :09:41. | |
The airline operator IAG, which owns British Airways and Iberia, | :09:42. | :09:47. | |
managed to report a small rise in profits | :09:48. | :09:48. | |
to $1.22 billion in the third quarter. | :09:49. | :09:53. | |
But the chief executive, Willie Walsh, | :09:54. | :09:57. | |
of the pound had cost it $177 million. | :09:58. | :10:01. | |
The world's largest brewing company, AB InBev, has reported an unexpected | :10:02. | :10:03. | |
drop in profit following declining sales in Brazil. | :10:04. | :10:09. | |
It made a downward revision to its earnings forecast. EU member that | :10:10. | :10:16. | |
earlier in the month it completed its $100 billion acquisition of its | :10:17. | :10:17. | |
rival brewer SABMiller. Shares in Chinese internet giant | :10:18. | :10:23. | |
Baidu slipped on Thursday after it reported an unprecedented | :10:24. | :10:25. | |
quarterly drop in revenue. Tell us what happened. Well, Baidu | :10:26. | :10:37. | |
is known as China's version of Google, they dominate the search | :10:38. | :10:41. | |
market, but their numbers definitely were not as good as Google's, shares | :10:42. | :10:46. | |
falling by as much as 4% in extended US trading because of its first-ever | :10:47. | :10:48. | |
quarterly fall in revenue. Investors quarterly fall in revenue. Investors | :10:49. | :10:51. | |
were unnerved by the warning that the numbers are going to get worse. | :10:52. | :10:56. | |
In the third quarter, revenue fell by 0.7% down to $2.7 billion, but | :10:57. | :11:04. | |
the forecast is that it will fall by 4.6% in the October to December | :11:05. | :11:09. | |
period, the next quarter. So this is largely due to a plunge in | :11:10. | :11:13. | |
advertising after a medical scandal in China caused the government to | :11:14. | :11:18. | |
crack down on the sector. So earlier this year, a student with a rare | :11:19. | :11:23. | |
form of cancer accused Baidu promoting adverts that directed into | :11:24. | :11:28. | |
this treatment that did not work, and the student later died. Because | :11:29. | :11:32. | |
of the huge outcry around this, the government has basically enacted a | :11:33. | :11:35. | |
new law that bans online promotion of things like prescription | :11:36. | :11:39. | |
medication and tobacco on the internet. So that is hurting Baidu, | :11:40. | :11:44. | |
and it is going to hurt them for the next few quarters. Amazing that just | :11:45. | :11:48. | |
one company can do that, thank you for your time. | :11:49. | :11:53. | |
This is how the Asian markets fared, a very choppy session, pretty mixed, | :11:54. | :12:00. | |
and we can see the Nikkei is up a little bit, a bit of a weakening | :12:01. | :12:06. | |
when it comes to the yen. Markets have been open 42 minutes in Europe, | :12:07. | :12:12. | |
and it is a bit of a down day, some earnings really dragged down some of | :12:13. | :12:16. | |
these big indices across the world. Michelle Fleury is in Wall Street, | :12:17. | :12:20. | |
and she is talking about what is going on with economic growth in the | :12:21. | :12:28. | |
US. Investors and the presidential campaigns will be paying close | :12:29. | :12:31. | |
attention to the new GDP data on Friday morning. Overall, the US | :12:32. | :12:34. | |
economy has struggled to post any decent growth of late. In the second | :12:35. | :12:40. | |
quarter, the annual growth rate was a mere 1.4%. If the data for the | :12:41. | :12:44. | |
next quarter shows equally slow growth, that will be picked up on | :12:45. | :12:49. | |
Italy by Republican candidate Donald Trump, as evidence that the economy | :12:50. | :12:55. | |
is broken. -- most economists, however, are expecting a more | :12:56. | :13:01. | |
respectable growth rate of 2.5%. On the stock market, Hernanes season is | :13:02. | :13:04. | |
in full swing, the latest quarterly accounts are released by Exxon and | :13:05. | :13:13. | |
Chevron, as well as MasterCard. investment director | :13:14. | :13:16. | |
at Aberdeen Asset Management. We are going to do RBS in more | :13:17. | :13:27. | |
detail later, but a big week for banks. Western banks have done well, | :13:28. | :13:31. | |
revenues have been better than expected, a difficult time for | :13:32. | :13:35. | |
banks, low interest rates are not conducive to high profitability, so | :13:36. | :13:39. | |
they have produced better profits than expected. Bad debts have been | :13:40. | :13:42. | |
better than expected given the economies in which the banks have | :13:43. | :13:46. | |
been operating in have been doing better than we thought. Capital | :13:47. | :13:50. | |
position are strong, a good season so far. One big move in health care | :13:51. | :13:55. | |
and pharmaceuticals, mounting competition, continued pricing | :13:56. | :13:59. | |
pressures, yet we are seeing the biggest rise in the FTSE 100 in | :14:00. | :14:05. | |
pharmaceuticals. God of the company question is we're going to be | :14:06. | :14:27. | |
talking later about the papers, see you in a second! Still to come, our | :14:28. | :14:32. | |
economic screw will be clearing the fog of complexity hanging over this | :14:33. | :14:38. | |
week's biggest business stories, growth, global trade deals and a | :14:39. | :14:39. | |
little bit more and banking as well. Lets talk about Royal | :14:40. | :14:46. | |
Bank of Scotland. There are different ways of looking | :14:47. | :14:50. | |
at this story. On the one hand, the bank continues | :14:51. | :14:54. | |
to face a range of large conduct And it has swung to a ?469 million | :14:55. | :14:57. | |
loss in the third quarter, not to mention that it confirmed | :14:58. | :15:03. | |
that it will miss a 2017 deadline to sell off its Williams | :15:04. | :15:10. | |
Glyn branch network. hand, there are parts | :15:11. | :15:13. | |
of this business that Lets talk to James Hughes - | :15:14. | :15:16. | |
investors clearly liking In 2016 but other are doing | :15:17. | :15:50. | |
particularly well. When you eat, it is not necessarily an ideal time for | :15:51. | :15:56. | |
the banks to profitable. There are other areas within the retail side | :15:57. | :16:03. | |
of banking that are doing pretty well or RBS and why you are doing OK | :16:04. | :16:08. | |
today. We cannot look away from the downside, the five runs in aside for | :16:09. | :16:15. | |
litigation costs. They have lost Santander air and now they are | :16:16. | :16:27. | |
looking of them as well, so it is they have to sell the end of 2017 | :16:28. | :16:33. | |
and the EU says they have to do it, but they say they cannot. What will | :16:34. | :16:45. | |
happen? You Santander would look to be buying this part of the business, | :16:46. | :16:53. | |
Williams and Glynn, and it will be a massive challenge for anyone who | :16:54. | :16:58. | |
comes in. I look at this as well. But it has to be done by the end of | :16:59. | :17:04. | |
2017 of them look like it will be done. I'm what is going on on the | :17:05. | :17:15. | |
tablet the tablet can do and to stay in here. They say no cheque-book was | :17:16. | :17:22. | |
involved. They were knowing there was no | :17:23. | :17:24. | |
They were knowing there was no cheque paid. | :17:25. | :17:28. | |
Our top story: An employment tribunal in London is expected | :17:29. | :17:32. | |
to rule today on whether Uber drivers are entitled | :17:33. | :17:34. | |
to basic workers' rights such as paid holiday, | :17:35. | :17:36. | |
The taxi app company regards them as self-employed | :17:37. | :17:41. | |
We're expecting to hear the verdict on this case around 2pm UK time. | :17:42. | :17:46. | |
Plenty more in the meantime on the website. | :17:47. | :17:49. | |
A quick look at how markets are faring. | :17:50. | :17:56. | |
UK 10-year gilt yield climbs to highest since Brexit vote. | :17:57. | :18:00. | |
Is this the eye of the storm for inflation? | :18:01. | :18:06. | |
We will be talking about that because there are some interesting | :18:07. | :18:13. | |
Lets turn our minds to the bigger picture, by which we mean global | :18:14. | :18:19. | |
We have got Andrew Walker in the studio with us. Justin Trudeau must | :18:20. | :18:35. | |
be upset, packing his bags and then being told it was not going to | :18:36. | :18:36. | |
happen. This is the agreement between the EU | :18:37. | :18:47. | |
and Canada to remove a lot of the trade barriers, an agreement that | :18:48. | :18:52. | |
both sides say it will be a boost to trade and incomes on both sides of | :18:53. | :18:56. | |
the Atlantic. It was supposed to be signed at a ceremony in Brussels | :18:57. | :19:01. | |
yesterday, but in the end Belgium could not consent to it because | :19:02. | :19:05. | |
there were objections from one regional parliament. What happened | :19:06. | :19:10. | |
in the end is that is now an agreement, Wallonia has accepted a | :19:11. | :19:20. | |
kind of interpreted the statement. A fudge? It is a bit of a fudge and we | :19:21. | :19:27. | |
have to see whether the Canadians are happy with what has been added | :19:28. | :19:32. | |
to this agreement. What does it mean for other trade agreements? It is | :19:33. | :19:37. | |
important because the Canada deal in relation to the EU was seen as | :19:38. | :19:46. | |
either a path breaker or a stalking horse for a much bigger deal which | :19:47. | :19:53. | |
is being negotiated with the US. It is really controversial politically. | :19:54. | :19:57. | |
I think what has been happening with this back and forth over Belgium is | :19:58. | :20:03. | |
an indication of the fact it will be really difficult to nail that | :20:04. | :20:07. | |
agreement down with the United States and even more difficult to | :20:08. | :20:13. | |
get ratified if it does happen. Another big story is what is going | :20:14. | :20:18. | |
on with global growth. We heard from some of the world's biggest | :20:19. | :20:23. | |
economies and we have had from France that we have got the OS a bit | :20:24. | :20:30. | |
later. How is the picture coming together in your view? They are | :20:31. | :20:33. | |
telling different stories. The French figure was a bit | :20:34. | :20:39. | |
disappointing, it was 0.2%. It was fairly decent growth from Spain, | :20:40. | :20:47. | |
0.7, although it was below the previous quarter. Spain still has | :20:48. | :20:53. | |
not got back to its precrisis levels of economic activity, that is going | :20:54. | :20:59. | |
back to 2008, although it is getting closer. The United States looks as | :21:00. | :21:03. | |
if it will pick up a little bit after a sluggish second quarter. It | :21:04. | :21:07. | |
is broadly in line with the general picture we have seen of the rich | :21:08. | :21:13. | |
countries continuing to recover after the financial crisis, but | :21:14. | :21:16. | |
still not getting any convincing momentum. The US economy has been a | :21:17. | :21:24. | |
political football in the run-up to the US elections and this is the | :21:25. | :21:28. | |
last amount of data we get beef for those voters go to the polls. How | :21:29. | :21:35. | |
will they be interpreted? I am sure they will be interpreted in two | :21:36. | :21:39. | |
different ways by two different parties. If we get a figure of 2.5% | :21:40. | :21:46. | |
as an annual figure, which is what we are expecting, President Obama | :21:47. | :21:56. | |
will say it is is a sign that we are getting ahead and will hand the bat | :21:57. | :22:02. | |
until Hillary Clinton. Donald Trump says we will be harmed. Donald Park | :22:03. | :22:13. | |
will say there is no growth. It is true there has not been much growth | :22:14. | :22:17. | |
and people on medium incomes have not seen the benefit to the extent | :22:18. | :22:22. | |
that they should have done. There is no question that Donald Trump is | :22:23. | :22:26. | |
In a moment we'll take a look through the Business Pages but first | :22:27. | :22:31. | |
here's a quick reminder of how to get in touch with us. | :22:32. | :22:35. | |
The live aid its way and they are with all that | :22:36. | :22:48. | |
are in all on the BBC web page. We are also on which you find on | :22:49. | :22:58. | |
We are also on which you find on Facebook. | :22:59. | :23:06. | |
What other business stories has the media been | :23:07. | :23:08. | |
Joining us again is Richard Dunbar, Investment Director | :23:09. | :23:12. | |
In. The idea that because inflation has been going up the bond markets | :23:13. | :23:28. | |
are going down. Bond markets have only one in one direction for | :23:29. | :23:35. | |
decades. It has been part of my career. They are very sensitive to | :23:36. | :23:44. | |
the levels of inflation. Rising bond yields to an extent a sign that | :23:45. | :23:48. | |
things are getting back to normal, but the way they go from the lower | :23:49. | :23:54. | |
levels they are focusing on at the moment. If you make a four and are | :23:55. | :24:19. | |
ideal and more from a safer's is that you, it is good news. There is | :24:20. | :24:26. | |
a story in the Financial Times and France's deepening problems in the | :24:27. | :24:31. | |
nuclear sector, threatening the potentially increase the bills of | :24:32. | :24:48. | |
customer prices. At the 18th of nuclear reactors? Energy system, | :24:49. | :25:07. | |
like a lot in the West, is creaking at the seams. We have had a lot of | :25:08. | :25:14. | |
debate on Hinkley Point and we are trying to add two our site, but | :25:15. | :25:18. | |
until that point is, we do rely on others. The Philippines president | :25:19. | :25:29. | |
says he is going to stop swearing because he was talking to God on an | :25:30. | :25:38. | |
aeroplane. There are a few global politicians who would do well to | :25:39. | :25:45. | |
stop swearing. He is very popular, but his manner is not one that is | :25:46. | :25:49. | |
There will be more business news throughout the day on the BBC Live | :25:50. | :25:55. | |
webpage and on World Business Report. | :25:56. | :26:09. | |
Weekend weather is looking very deep and it should they largely dry and | :26:10. | :26:16. | |
myself, do not expect a huge amount of | :26:17. | :26:17. |