10/04/2017 BBC Business Live


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This is Business live from BBC News with Ben Thompson


Foreign ministers of the world's seven largest economies arrive


in Italy with free trade high on the agenda.


Live from London, that's our top story on Monday the 10th of April.


Today's meeting in Italy comes at a crossroads


We'll ask an expert whether political upheaval signals


Also in the programme: Regulators investigate Barclays boss


Jess Staley in relation to alleged misconduct in a


The bank says it'll reduce the chief exec's pay


And all the details of what you need to know for the trading week ahead.


Later in the programme we'll speak to the boss of a company hoping


to develop the next generation of coding geniuses.


The Green Party in the UK want to introduce a three-day weekend.


Would you want one, and would you work longer hours to get one?


How about if you still work longer hours but you still have to do a


five-day week? That sounds like what we do here!


We start in Italy where the Foreign Ministers of the world's


biggest economies are meeting in the historic city of Lucca.


This year Italy holds the presidency of the G7 group and Rome has already


made it clear that one of its priorities is "fighting


Well, it's important because the G7 accounts for just over 46%


And this meeting is important because it comes before next


Last month the host, the Italian Prime Minister,


laid out his G7 plan by saying "We need to keep betting on the free


market and on free trade, the biggest economic


But how can they boost their economies when there appears


to be more political appetite for protectionism?


The latest IMF forecasts show reasonable growth


this year for the US, Germany and the UK but


Other topics on the agenda include climate change,


immigration and energy security, in fact G7 energy ministers


are currently holding a separate meeting in Rome.


Stephanie Hare, an Independent Political Risk Analyst.


A familiar face, great to see you. This is going to be interesting,


because already there seems to be an air of mistrust, because US Treasury


Secretary Rex Tillerson is being accused of hampering this year's


gathering because he hasn't appointed the number of people that


he needs to put these draft accords in, and it is already tainted? I


don't know if it is tainted, but we have to have realistic expectations.


Tillerson hasn't appointed the deputy secretaries he needs, and


department is being cut by a third, so the United States is undergoing


fundamental changes as a result of the election of Donald Trump, so we


will see a different America I think going forward. But the others around


the table will want to know what the picture is that America is going to


paint. They don't know what they are doing on trade, security, etc. And


that is a powerful position for the United States, because it is keeping


everybody else off-balance and making them wait and react to


whatever it is that Trump and his administration put forward. And


foreign policy are huge issue because all this is happening while


they are sending in a carrier fleet, a strike force fleet, towards the


Korean pollutants in a. My concern with this -- the Korean peninsular.


My concern is that we have to foreign policy crises at the moment


that could make everything else redundant. The first as you said is


looking at North Korea, so we are seeing extremely tough language


coming out of the United States right now about whether or not they


would tolerate any red lines being crossed, and that language of the


red line and trying to force China whose leader was in the United


States last week meeting Trump, trying to force them to pressure


North Korea, because we are worried they are going to have nuclear


weapons, so what are talking about is potentially killing the leader of


North Korea, this was advanced as an option put before President Trump,


putting nuclear weapons into South Korea. This is a little more than


sabre rattling. It Israeli scary, and last week we had the United


States launching air strikes against Syria because of a red line being


crossed on chemical attacks. That was seen as sending a message to


other leaders around the world that the United States is not afraid that


and to act quickly. We have to leave it there, unfortunately, but thank


you very much. Let's take a look at some news


from the UK banking sector now. Jes Staley, the chief executive


of Barclays is to be investigated by The Financial Conduct Authority


and the Prudential They say Mr Staley tried to identify


a whistle-blower in 2016. Simon Jack has the details, so bring


us up to date. Unusual story, this. He is accused of sticking his nose


in where CEOs shouldn't stick their nose in. He is accused of hiring


someone from JP Morgan, someone he had known for years, who had had


personal issues in the past, and somebody wrote to the members of the


board of Berkeley is questioning whether this new person was a


suitable higher and saying maybe the fact that Jess Staley was a friend


of his meant that normal due diligence had been ignored. He saw


this as a personal knifing of somebody who had had problems at the


passport was now OK, and it didn't sit well with him. He wanted to know


who sent the letter, he was told to back off it was none of his he then


mistakenly thought he was clear to restart the hunt and try to involve


US law enforcement agencies into trying to find who wrote the letter,


and was told that was not appropriate. Whistle-blowing only


works if the system is anonymous, which is why regulators get so upset


if chief executive Zahra allowed to hunt down whistle-blowers, it


doesn't work. It could cost him up to ?1.3 million from his bonus last


year, and that will not be the end of it. Regulators love


whistle-blowers, it helps them do their job, so they want to get to


the bottom of this. Simon Jack, thank you for explaining


that, the latest at events on Barclays.


Let's look at some of the other stories making headlines around the


world. A secret recording that implicates


the Bank of England in the Libor rigging has been uncovered


by the BBC's Panorama programme. Libor is the rate at which banks


lend money to each other and it sets a benchmark for mortgages and loans


for regular customers. The 2008 recording adds to evidence


the central bank repeatedly pressured commercial banks


during the financial crisis A quick update on a story you may


have seen around yesterday. The payday loan firm Wonga has


suffered a data breach which may have affected up to 245,000


customers in the UK. The firm said it was "urgently


investigating illegal and unauthorised access


to the personal data The information stolen includes


names, addresses, phone numbers We have also got some news, this is


fairly interesting. The operator of Hong Kong's gold


exchange is in talks with Myanmar to help the government there set up


a similar exchange in that country. It is part of the Whaddon Road, one


belt. We may come back to that later with Sarah in Singapore if we can


get her. I think we may have lost her.


Down the back of the sofa! That be run you through some numbers.


We'll talk wider markets in a moment - but just want to show you two


The BBC has seen evidence that top bosses at Shell knew that money paid


to the Nigerian government for a vast oil field would be passed


It also had reason to believe that money would be used


We're also following Barclays - with news that regulators have begun


investigations into Jes Staley , the chief executive of Barclays


after he tried to identify a whistle-blower in 2016.


The BBC has learned that Barclays chief executive Jes Staley


could lose his 2016 annual bonus, worth ?1.3m, due to his "error" over


the attempted identification of a whistle-blower.


Here's what Europe is doing right now.


It is pretty quiet at the moment. Let's just nip over to Wall Street,


because Michelle has details about the trading day ahead.


The week may end early because of Good Friday, but there is plenty to


look out for. America's biggest bank starts to release first-quarter


earnings. JP Morgan, Citigroup and Wells Fargo all put their earnings


out on Thursday, likely to put out a rise in profit. Wells Fargo is


struggling to shake off the effects of a mis-selling scandal and is


widely forecast to report a fall in first-quarter profit. On Friday,


markets are closed, but there is lots of economic data, not least


retail sales numbers for the month of March.


Joining us is Jessica Ground, UK Equities Fund Manager, Schroders.


Great to have you with us as well. I know you were listening to Stephanie


who scared the Bee Gees is out of us. -- who scared the wits out of


us. The US is facing two ships heading towards the Korean


peninsular and Syria. And you have to remember where we have come from


on this, Trump saying I am not going to get involved in foreign policy


commitments, everybody thinking it is all about global growth and all


of a sudden quite early on we are facing two difficult situations, and


investors struggle to price these things because there is so much


uncertainty. There is indeed. And a lot of investors jump into typical


safe havens, gold. Oil having a strong run, so as you say, on


Friday, the initial reaction was a jump to safe haven, and taking off


from very low levels, people becoming slightly more concerned


about risk. Let's talk about banks. We have been talking about Barclays


and the Bank of England. Look at the front page of the BBC News website,


bank implicated in Libor rigging, Watchdog probe into Barclays boss,


and Barclays shares down. What a callous about the culture in the


city? -- what does it tell us? Regulators and bank boards are


taking this seriously. Before the financial crisis, a blind eye was


cast on the sector, but now you have the regulators and the boards is...


We are still cleaning this up in 2017? Definitely, it has been a huge


task. Initial phase was about every body getting into the emergency room


and keeping it going, then it was physical rehabilitation, how do you


make the banks function with a strong culture of integrity, and it


takes to change behaviour. And change regulation, because we have


seen swathes of regulation being brought into tidy up our bags


operate # How banks operate? Yes, and retail


being cut off somewhat from investment banking, but that still


hasn't been done. You can't just click your fingers and have change


happen overnight. Good to see you, thank you very


much. Still to come,


investing in the future. Later in the programme we'll speak


to the boss of a company hoping to develop the next generation


of coding geniuses. You're with Business


Live from BBC News. And it is not just coding, it is


about finding jobs we don't know existed, and training them now. We


will talk about that a little later. The hotel chain Travelodge has


its annual figures out this morning. It saw profits and revenues rise


last year, and there was an increase They now account for


half of all sales. Good morning. Some good figures, and


I think it is fair to say this comes after what has been a tough few


years for you guys, all sorts of different owners, varied results, as


we said, after the financial crisis. Where are you up to? The company was


restructured in 2012 is of it above that viable financial crisis, and we


have been investing heavily and upgrading our hotels in trying to


win business customers. This is another milestone, with Isner --


business customers accounting for more of our customers. And wires


that imported, you would've expected they would stay at higher in hotels,


and now they are staying with you? Yes, there was a certain business


budget customer, but we are all budget travellers now, and


businesses in an uncertain economic environment are turning to low-cost


operators more and more, and almost half the FTSE 100 now use the


Travelodge here in the UK, so it is a mainstream product.


What are your mattresses like? There is another chain in the UK, of


course, we know that pride themselves on their mattress and


I've tried and they're comfy mattresses? You can buy one of our


beds. If they are good enough for the future king, they will be good


enough for our customers. We appreciate your time and good luck


with everythingment seriously. That was the big boss of Travelodge.


Thank you very much for putting up with Aaron's mattress questions!


It's important. You look for a good mattress and internet! Plenty of


details on the BBC website. To the Bank of England libor story. We love


a good Hornby story. Shareholders who represent a 20% stake in Hornby


asking for the boss to go. The chairman is being proposed to leave


Hornby. We like talking about it. Full details on the website.


The so-called STEM subjects - Science, Technology,


Engineering and Maths - are often seen as vital


But how do you make those subjects attractive


I liked science, but I didn't like maths. I didn't like any of them.


I'm joking! Last year the BBC gave


about one million devices called the Micro Bit to children in the UK


in an effort to encourage One of the companies involved


in the project was called It sells do-it-yourself


kits for children. So far they've sold more


than 100,000 kits which let you build all kinds of things


from robots to games and even Bethany Koby, co-founder


of Technology Will Save Us. Welcome. You brought some of your


kits in. We will have a look in a moment. What fascinates me about


this is, it is about teaching kids in schools these days, giving them


skills, and giving them the training for jobs that don't even exist yet.


How do teachers, how do students and how do parents even get their head


around that? So we believe that it's all about learning by doing. It's


about getting kids hands on with all kinds of technology to help them


build confidence, passion, and understanding of the skills that


they can actually achieve whether that be through electronics, through


programming, through things like electronic play dough when they are


as young as four. It is about really getting kids hands on with the


potential to what technology can do. We do a lot, I do a lot of stories


on this subject and it always comes you, the experts say there is a


global lack of coders. That's a big problem considering the stuff Ben is


holding in his hand, technology is going to be the future or it is the


future? There is a stat that we talk about a lot. 65% of kids in primary


school, their jobs don't even exist yet. So these kids and their


families will have to pave a path for themselves and we believe that


the one way for kids to pave a path is by playing and finding enjoyment


in the potential of what tech can do. If kids can find confidence, if


they can build skills and actually see what they're good at, that's a


better way for them it take the skills and apply them. This is so


much more interesting than the things we had to do at school which


was make a light on a circuit board light up. You have got the kit. This


is about a bit of coding, but it is about proving that science and


technology can be useful in your life. How does this work? This is


the mover kit. It is waerbable. It has rainbow lights and a motion


sensor and a compass that kids can programme to invent games and


activities. One of the kids, eye sack, he programmed the mover, he


brushes his teeth and shows his mum and his mum believes that he brushed


his teeth for two minutes of the that's a valid reason for an


eight-year-old to programme something. Programming is the medium


to get a device to do something which they are interested in. There


is so much more to it than just programming. We were talking earlier


and I wanted to be an architect when I grew up and I thought maybe I need


science and technology and maths to do that and realised it wouldn't


happen. This isn't about identifying the job and getting the skills, this


is finding something that you enjoy and are good at? It gives kids the


chance to explore what technology can provide, whether that be coding


or sensors, design, electronics, there is an array of things that


kids should be exposed in order to really understand what their


potential is. Did you know you would be sitting


here in the chair as the boss of this company. Did you sit down and


plan your career? Of course not, it was a big accident. They are


different ages groups, aren't they? So it is four years old and


four-year-old kids can do this stuff. This is electronic play


dough. This one is aged 12. You have the four plus one. Do you do the


design? Yes. My background is in design and branding and I don't do


all of it myself, we have an amazing team now but kids are a part of


every stage of product development at Technology Will Save Us. We


appreciate your time. Thank you very much for coming in. Good luck with


it all. Get those coders out there! While we make this, you can do the


four plus one! In a moment we'll take a look


through the Business Pages, but first Steph McGovern is in Essex


in the East of England today with the first freight train


about to leave Britain for China. Obviously you can the port behind me


where lots of containers are coming in off the ships,


but the reason we're This train will be the first train


to travel from the UK to China carrying lots of different products


that have been made So it's everything


from pharmaceuticals, soft drinks, baby products,


all those things that people in China like to buy from us


here in the UK. It's interesting when you look


at the stats because we have something like ?16 billion of worth


of products that we sell to China and around ?40 billion


which we imprort from China so a big difference and the Government


and the businesses here are hoping that they can reduce that deficit


and start getting more We keep pushing about that train. It


has to keep changing gauges. It is the same containers though. We keep


saying the train. This is the Green Party in the UK.


They say you could create a three day weekend. Four day week. But a


four day week. Yes. The caveat is you've got to work longer days? It


is not a new idea. If you look back at what economists and politicians


like Churchill said, they said for years and years that technology


would mean that we were sitting on the beach drinking cocktails, but it


has never come to pass, now with robots and artificial intelligence,


maybe it is around the corner. The idea of leaving aside what the Green


Party is suggesting, a three day weekend, maybe we will have to pay


people just to consume. This is an idea that's growing credence amongst


economists and particularly Silicon Valley. State will provide you with


a basic wage so you will consume because you won't have a job to do.


I wonder what the productivity will be like in ten hours. In Sweden


they've gone from eight hours to six hour day because they say they get


much more productivity out of six hours? This comes back to a wider


point, UK productivity and there is a survey from BDO saying that UK


productivity is getting worse, not better. At love you getting in


touch. Daniel says, "Not great working a four day week if you get


paid per day." Maybe you could ask for a payday. Squirrel says, "Utter


rubbish. I suppose it is all right if you have a fluffy job." Why is he


talking about me? It is good to have three days off, but if you are a


parent longer hours can work against the family. All of society are built


around a 9am to 5pm. That's been breaking down which is one of the


things we discovered during the investigation by the Select


Committee. This idea of zero hours contracts is not really a 9am to 5pm


economy. The labour laws are much laxer here and employers do take


advantage of that. Can you do the US Labour department? This is the


Google survey? Yes. The gender pay gap in Silicon Valley particularly


Google is worse than it is elsewhere the economy. They're supposed to do


good. Maybe they're not after all. You could have had another five or


six seconds. For a change we finish on time! That's it from Business


Live today. We will see you tomorrow at the same time and same place.


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