22/06/2017 BBC Business Live


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This is Business Live from BBC News with Ben Thompson and Sally Bundock.


Divided by Brexit - as leaders gather for


a summit in Brussels - we look at what the other


27 EU members want out of Britain's departure


Live from London, that's our top story


Immigration, trade, human rights or reform.


As Brexit talks continue, we'll assess what's at stake


Overseas tech firms say they'll still want to buy


the ailing tech firm, despite government efforts to keep


And it was a disappointing session in Europe and the US yesterday,


with falling oil prices, and inflation denting confidence.


Oil prices are now down 17% from the peak in May.


Taking the human out of human resources.


We meet the woman who's software aims to automate the personnel


process in the vibrant Nigerian economy.


Today a survey reveals that four in ten millennials have no pensions


Who or what will look after you in your old age?


Sally, I'll look after you in your old age. It will probably be a


robot, he will do a better job of starting the programme than I did.


We start in Brussels where as you've been hearing -


European Union leaders begin a two day summit.


Top of the agenda of course - Brexit - after formal talks


on the UK's departure from the EU began this week.


But there are different views around Europe


on what Brexit should look like - let's take a look.


The new French president Emmanuel Macron wants to keep


Britain a close partner - saying the "door remains


open" to the UK changing its mind about leaving.


For Germany's chancellor Angela Merkel it's about maintaining


Like the single market and freedom of movement.


She has urged other member states to stand firm over these.


In Italy, Brexit is very much being seen as a wake up call for Europe.


Especially on curbing migration from outside the Union.


Then there's Ireland - which will have the EU's only land


Checkpoints with Northern Ireland were scrapped at the end


of the Troubles almost 20 years ago - it's worried a "hard"


Finally - a big issue of course for all the countries -


the future of the 3.6 MILLION EU citizens living in the UK


If affects some more than others of course -


He is here to represent the view of at Henley Business School.


He is here to represent the view of Ireland, good to see you. Give us


that perspective, we touched on the view of the only land border, tell


us more. I think the direct impact will be greatest in Ireland,


particularly because it has the only land border but it reflects the


relationship between Ireland and the UK, the common travel area has been


there since 1923, more formally since 1952, the fact that Ireland is


one of the key negotiating priorities identified by the


European Union reflects the importance of this and also, even


quite in tangible, sorry intangible -- tangible things like trade


between Ireland and the UK, the second busiest ever ridden a world


between Dublin and London, for the half million passengers each year.


Sorry, adding to this, to complicate things, UK Prime Minister looking to


do a deal with the DUP of Northern Ireland, what will that mean in


terms of how this plays out, is that good or bad for economics and trade,


we leave the politics alone, that's extremely, the catered. There are


positives and negatives. The DUP had a meeting with the new Irish Prime


Minister last Friday in Dublin, they came out talking about a sensible


Brexit which works for Northern Ireland and the Republic and I think


we have failed to understand that Northern Ireland particularly is


quite dependent on trade with the EU and probably up to 30% of its


exports come from that macro or exported to the Republic so it's


important for the Northern Ireland economy as well as the Republic. And


what we understand we are looking at a deal for it the UK will be outside


the customs union and the single market so will that be very damaging


for Ireland or is Ireland already given review for that outcome and


positioning itself? The fact that the new Cabinet in Ireland last


Wednesday week, we have the Minister for foreign affairs is designated to


be the Brexit Minister, that reflects a clear recognition of this


at the level of government. I think there are going to be impacts, there


was a report this morning from the economic and social research


Institute in Dublin which suggests a monetary impact might be in the


region of over 600 million euros over three years, other important


issues relate to the way in which particularly the food industry is


dealt with, I think that's furry important but the wider context, a


fact that the UK is an important trading partner, other parts of the


world have become more important for Ireland over time, exports to the UK


since 2010 have only increased by five and a half percent in


comparison to Nafta which increased by 44% and others which increased by


51%. The balance and composition of trade in the Irish public as trade


-- is changing. We appreciate your time and analysis. And just to say,


the two de summit kicks off now embrace all is and we keep you


across any news coming out of that. We will. -- the summit kicks off in


Brussels. Let's take a look at some of


the other stories making the news... Shares in the car parts maker


Takata Corporation have slumped by more than half following reports


it could be preparing It's lost three quarters


of its value since last week. Takata is at the centre of the car


industry's biggest ever recall - nearly 100 million cars -


over faulty airbag inflators. George Clooney's luxury Tequila


brand is being bought by drinks giant Diageo -


in a deal that values it Casamigos, which means "house


of friends," was founded in 2013 by the Hollywood star


and his friends - nightlife entrepreneur Rande Gerber,


who is married to model Cindy Crawford, and real estate


developer Mike Meldman. Iran's Zagros Airlines has signed


a deal to buy 28 new Airbus planes It will take 20 new A320 Neo jets,


and eight A330 aircraft. Iran has stepped up its order


of planes following the lifting How can Tequila be worth $1 billion?


If you have George Clooney involved, his brand alone adds value. You are


a bit of a fan, I'm due? Well, you know, I'm not saying it either way,


George Clooney, if he wants to be on the programme, we have something to


talk about. You are very welcome George. You sound very envious, have


you got Clooney envy? It's $1 billion, he is not going to be


envious? The boss of Foxconn has said


he will still try to buy Toshiba's chip business,


despite news that a government consortium has been named


the preferred bidder. Nice to see you. We won't ask you


about George Clooney but Phil are saying about the latest on Toshiba!


I had a perfect answer for you but I'll answer about Toshiba. Tell us,


tell us about George Clooney, I want to know. I think we all should start


our own tequila brand and try to match that. Anyway... Just yesterday


we told you that Toshiba appears to have selected the Japanese remained


led group as a preferred but the issue was that the offer was lower


come third to the one offered by the Thai Burmese company and its been


speculated that Toshiba might be reluctant to take the offer because


of that close ties with China. But to be fair, the company which took


over at another troubled company Sharp, Sharp is starting to make


money and its applying to relist its shares on the Tokyo stock exchange


so at the Foxconn AGM, the boss said he is not giving up on buying the


crown jewel of Toshiba, the only unit that seems to be still making


money. And hopefully we'll find out the Toshiba final decision by next


Wednesday when Toshiba holds its shareholder meeting. Good stuff,


thank you. We have a little break from George Clooney news and I'll


talk about the markets. The story we mentioned in the round-up, to cats


and the airbag recall weighing on the Nick Cave. Shares coming down.


We then following the roller-coaster rides over the next few months and


it could now end up in the bankruptcy court.


Weaker oil prices dragged down the US markets too.


Oversupply of shale and concern about Saudi Arabia's policy


towards oil and OPEC have left markets a little tense.


In Europe we get eurozone consumer confidence figures later today -


expected to see a slight improvement - but that's ahead of


those Brexit talks - and as we've been hearing -


what the UK's departure could mean for everyone else.


Maybe it will mean nothing, maybe they don't really care that as we


have heard already, the repercussions likely all around the


world. First let's head to the US


and Michelle has the details about what's ahead on Wall Street


this Thursday. How healthy are the American


financial institutions, can they withstand recession? The Federal


Reserve will release results of its round of stress tests, the first


round and these were mandated under the Frank reform law. Wall Street


will learn how much money hangs can devote to dividends and stock


buy-backs over the next year, but was one of those banking stock


investors, King attention to accentuate, the consulting firm


expected to report a rise in its third 40 revenue and a drugmaker my


long faces a key test from shareholders, hitting the headlines


after hiking the price of heavy pins, several large US pension funds


are pushing for key executives to be ousted. That was Michelle and the


United States, looking ahead to the day in Wall Street. Good morning to


Trevor who is a representative of the pound has been on the weak side,


I don't think today will be that critical for the pound, it's more


about the reciprocal rights for the UK and EU citizens and that should


be relatively uncontentious but there's loads of contentious stuff


coming along. We would expect to see moments where it feels like the two


sides aren't talking to each other, maybe we start to worry we will


leave without a deal and the pound could weaken, there is lots of


possibilities, at the moment with a hung parliament you have rebels


within the main parties pushing for a much softer Brexit, maybe staying


in the single market, if the markets said that, they could go up. For


currency speculators this is a gift, to what extent do they exaggerate


the move in Stirling, do you think? I don't know, I would say the


speculators, the markets, dry to work out what the sensible level for


the pound is based on the economic fundamentals and the key thing is,


when the Brexit boat happened, the pound fell about 15%. Because


markets took the view that the UK economy will be weaker and this is


what the markets are focused on, is the UK going to come through


absolutely plain sailing, leaving the EU, fine? Maybe the pound has to


go for that reason, more difficulties, I think it will go


down. The old price was on a moment ago, if we were God since the start


of the peak, it is down 17%, too much supply, not enough demand, and


now this concern over what Saudi Arabia is going to do, where are we?


The energy markets seasonally is usually strong in the summer, it's


the summer driving season in America but supply coming out of the


woodwork, US showers they've managed to do that cheaply, it was at what


one could they not afford to get it out of the ground, normally it's


more expensive. The root account has risen quite rapidly, coming back on


stream, but personal western over the dollar, the Chinese economy


suggestions that it's slowing down. We may be getting a forewarning of


bonds ahead for the stock market, people focusing on the weaker data


in China. People buying equities, interest rates low, which is not


rising, the central bank will keep things moving. Trevor, thank you.


Trevor will be back later and we will be grilling him about pensions.


That kind of what he does for a living. And lots of you have been in


touch about what you think will happen when you retire or get older.


Keep your comments coming in. This is all to do with the number of


young people who don't have any sort of savings for old age. It is not


just young people either. Middle-aged.


We'll meet the woman whose software firm


is aiming to automate Human Resources in Nigeria.


But is it a good idea to take the personal out of personnel?


You're with Business Live from BBC News.


When I was little, I used to go strawberry picking. It was great


fun. We ate more than we brought home but it was great.


Think of summer - maybe you think of strawberries,


raspberries or salad tomatoes and lettuce.


All that fresh stuff that is in season in the UK.


But there's a warning today that British farms can't hire enough


workers to pick the fruit and salad, with more than half of farmers


saying they don't know if they will have enough migrant


Many growers blame the weak pound, which has


reduced their workers' earning power, as well as uncertainty over


Sean Farrington is on a soft fruits farm in Surrey.


Good morning, we are actually farm in Surrey, mainly strawberries, they


do lots of other food here, where we are talking about this BBC survey


where more than half of growers of fruit and salad across the country


are a bit worried that this summer they won't have enough migrant


workers coming from overseas to be a will to pick all the fruit needed


over the summer. We can talk to Lawrence, who represents the British


summer fruit industry. Lawrence, how important our overseas workers to


the British fruit industry? Absolutely vital, 95% of our workers


are from Europe, and if we didn't have them, we wouldn't have an


industry. And so what are the key thing is, is it Brexit negotiations,


the strength of the pound or the weakness of the pound making these


workers think I might want to work elsewhere, what other things that


would change that would help you out? We are losing workers because


of the devaluation of the pound, 50% reduction, remittances will be


lower, but also there is a xenophobic feeling that they are not


welcome in this country. It is a global market. We have growers in


Portugal who are employing Romanians and Bulgarians. They can go


anywhere, they don't have to come to this country. What difference does


it make us if the workers are going elsewhere around Europe, so we may


have to get our food from elsewhere around Europe, does it make much


difference to consumers around here? We import 140,000 tonnes or so, if


we had to import half of that from Holland, Belgium and America, our


prices would go up by 50% at least, because they are not waiting for us


to to say we want their fruit. The businesses here have that


uncertainty. The price of fruit in the UK couldn't up going up if those


rules don't go in the way the industry wants them to.


Our top story, European Union leaders are beginning a two


Brexit is of course top of the agenda, after formal talks


on the UK's departure from the EU began this week.


Today is the first time the UK Prime Minister Theresa May


will face European leaders after she lost her


An interesting day ahead in Brussels.


When you apply for a job - these days, chances are that it's


Paperwork, interviews and short lists.


But in Nigeria things are a little different.


HR in the country is informal at best, but the market is growing.


Our next guest is starting an industry from scratch.


Nigerian female entrepreneur, Chika Uwazie, has launched TalentBase -


which is available to small and medium-sized


The software enables users to manage the records of their employees,


create employee roles, as well as being able to track


development of their staff with performance reports.


And she's hoping TalentBase will help African firms move


away from paper systems to a more automated one.


Chika Uwazie, the Chief Executive of TalentBase, is with us now.


Really nice to see you, thanks for coming in. So do tell us in a bit


more detail the problem that your software sort of resolved to a


degree in Nigeria. Yes, so, in Nigeria, and across Africa, 90% of


small to medium enterprises still use very manual processes, and when


I say manual, it is paper. They are still going to the bank physically


to pay their employees, they still use XL to do very complicated tax


sums. One statistic that surprise me was the number of adults in Nigeria


that don't have bank accounts. Something like 56% of Nigerian


adults who don't have access to an account, how does your system help?


Yes, and so we did was we took it a step further. So primarily, HR


systems across the world can pay into a bank account, that because so


many Nigerian adults and across Africa don't have a bank account, we


partnered with an organisation so you could also pay into a mobile


wallet, so then you also get access to a credit card, so now you are


added to the financial system, you can do normal payments and you can


card. The government are rubbing card. The government are rubbing


their hands with glee, because it means they will get more tax


revenues in, presumably, if this system is so easy to follow through.


Whereas if you had to go to the bank to collect your wages and pay your


taxes, you are less likely to do that. Yes, and so currently across


Nigeria only tempered scent of people are remitting their what we


call pay or employee taxes, so we are partnering with the government


to actually automate that process, so that employers can pay on behalf


of their employees their taxes. You have made it all sound very simple


for us, so we are grateful for that, I imagine when you have


conversations with banks or financiers trying to get funding to


set up this organisation, as we said, you are sort of doing it from


scratch, might have been a little bit more difficult? Yes, very


difficult! Because when I started this business I thought I would plug


in with a regular system and start a new payroll and I didn't realise how


broken the system was. We took it upon ourselves to go to the banks


and integrate into the banks is dumb. The first few banks we went to


was like, no, I don't understand this, I don't see the need for this,


so it definitely did this about a year to get the first bank on board.


Now we have four banks on board and gives us access to 80 African


countries. I was just about ask you that. You are operating in Nigeria,


but this could be something used anywhere in Africa presumably? Yes,


definitely. I2 other bank partnerships have access to 18


countries, we are looking to go to Francophone next year and then East


Africa, starting with Kenya. Exciting, Chika, thank you for


coming in. In a moment, we'll take a look


through the Business Pages but first here's a quick reminder of how


to get in touch with us. The Business Live pages where you


can stay ahead of all the day's breaking business news. We will keep


you up-to-date with all the latest details, within sight and analysis


from the BBC's team of editors, right around the world, and we want


to hear from you, too. Get involved on the BBC Business Live web page.


On Twitter. And you can find us on Facebook. Business Live, on TV and


online, whenever you need to know. Joining us is Trevor Greetham,


head of multi asset Loads to talk about but I'm


interested, as we discussed earlier, this story in the paper, four in ten


millennials have no pension provision. We all know that we


should be saving, but it is one thing, knowing we shared, very


different to actually doing it. Yes, it is. But you can turn that around,


six in ten millennials do have pension provision, and that is


because Oporto in Roman. If you ask the same question in 2012 you would


have had a much lower figure, so it is not where everyone wants it to be


but it is getting better. That auto in Roman, the point is you actually


have to physically, consciously opt out, so you are kind of nudged into


putting a small amount of money into a pension early on, and if you want


to opt out you can but most people actually don't. We were asking at


the start of the programme for viewers to say who will fund your


retirement. Allison says doesn't national insurance play a part? Yes,


but those who have saved sensibly all their lives shouldn't have to


pay for them. Sean says I am in a good position with a private pension


but could not say the same when it worked in retail. That is a really


patchy picture. Colin says, in terms of millennials not putting aside the


pensions, he says good on them. The government local authority would


only take all their savings anyway once they become ill. This is very


controversial right now because of what was not in the Queen's Speech


yesterday with regards to pensions, things like the dementia tax and


these kind of things, it is a really tricky problem to


solve. It is, but the earlier you start trying to do something better.


In that same survey, a lot of millennials are quite sceptical as


to whether they will ever get a state pension. Is it a case of


burying your head in the sand, I could get on housing ladder, can't


get a pension, so it is just going to enjoy now. As you get older you


start to think I was sure started earlier, that is what the auto


enrolment can do. But increasingly people will find themselves saving


for other reasons, and perhaps some of that saving becomes long-term


saving, so people might use and I account for example. The thing we


say is don't save for the long-running cash, cash rates are


way below inflation, you are giving money to the government if you do


that. Multi-asset. An old tin under the bed. Thank you very much.


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