:00:43. > :00:45.This is Business Live from BBC News with Jamie Robertson
:00:46. > :00:48.Trading on an established relationship - as diplomatic
:00:49. > :00:50.allegiances shift around the world China and Russia look to each other
:00:51. > :00:54.Live from London, that's our top story on Monday 3rd July.
:00:55. > :00:57.Today Xi Jinping is in Moscow to meet the Russian
:00:58. > :01:01.Trade is set to be top of the agenda as China looks to push its vision
:01:02. > :01:06.Would you buy a smartphone that had parts taken
:01:07. > :01:10.We're going to have the latest on Samsung's move to salvage
:01:11. > :01:12.Galaxy Note 7 parts for a new device.
:01:13. > :01:14.And China is opening up its $9 trillion bond market
:01:15. > :01:16.to foreign investors - we have the latest
:01:17. > :01:19.from the markets on how they are reacting to that news.
:01:20. > :01:21.And we'll be getting the inside track on augmented reality -
:01:22. > :01:24.after the failure of Google glass could the future of the technology
:01:25. > :01:33.Elsewhere, as tents go up outside Wimbledon with tennis fans desperate
:01:34. > :01:35.to get their hands on tickets, we want to know -
:01:36. > :01:37.what would you queue through the night for?
:01:38. > :01:58.Chinese President Xi Jinping is in Russia for talks
:01:59. > :01:59.with his counterpart Vladimir Putin today.
:02:00. > :02:03.Trade is set to be top of the agenda ahead of the G20 meeting of global
:02:04. > :02:06.The visit will be Xi's sixth tour to Russia
:02:07. > :02:19.And their meetings seem to be bearing fruit -
:02:20. > :02:24.according to China, trade between the two increased by over
:02:25. > :02:35.26% in the first four months of the year, reaching nearly
:02:36. > :02:49.Russia will be a key component of China's 'Belt
:02:50. > :02:51.and Road' initiative - an ambitious multi-trillion dollar
:02:52. > :02:53.project that will link Europe and Asia via the historic silk
:02:54. > :03:00.As part of the project - and as a symbol of this
:03:01. > :03:02.close relationship - Beijing has even agreed to help
:03:03. > :03:05.finance a high speed rail link within Russia itself: linking Moscow
:03:06. > :03:11.Joining me now is Dr Yu Jie, Head of China Foresight, at LSE Ideas.
:03:12. > :03:18.thank you for coming in to Doctor us. This is a charm offensive that
:03:19. > :03:23.just keeps going, because we have seen six of these meetings already,
:03:24. > :03:28.and not just Russia, but China forging links all around the world,
:03:29. > :03:32.to boost its profile, not just economically but politically? That
:03:33. > :03:36.is exactly what China are trying to do, by using China's economic
:03:37. > :03:40.muscles and trying to extend the spheres of political influence over
:03:41. > :03:46.the world. As you just mentioned, the road, including not just rush
:03:47. > :03:52.about 68 member states allowed to join the initiative and Russia is
:03:53. > :03:55.obviously Big E member. If Xi Jinping would like success on this
:03:56. > :04:03.initiative -- obviously the biggest member. Why is the initiative called
:04:04. > :04:12.the belt and roared initiative? The new Selt Road, the economic belt,
:04:13. > :04:18.and the road, which is the new economic silk, so there is a land
:04:19. > :04:22.route going through Central Asia, and end point would be Venice, in
:04:23. > :04:27.Italy. Looking at the map, Russia does not have to be part of this,
:04:28. > :04:32.does it? The entire route could actually go south of Russia. How
:04:33. > :04:37.important really is Russia in this relationship, regarding the root?
:04:38. > :04:41.Not exactly economically, but I think it is more geopolitically that
:04:42. > :04:48.Russia is vital, to have Russian support in this case. Russia,
:04:49. > :04:54.obviously the backyard is Central Asia, or it used to be, but now
:04:55. > :04:59.would like to win the hearts and minds -- now Xi Jinping would like
:05:00. > :05:02.to win the hearts and minds. And it is essential for him, for himself.
:05:03. > :05:08.Politically, is this a kind of centring of powers as a hedge
:05:09. > :05:13.against the powers, the partnership between the USA and Europe, a kind
:05:14. > :05:17.of China and Russia relationship? I wouldn't say it is hedging
:05:18. > :05:24.necessarily. I think it is partially because the diplomatic language.
:05:25. > :05:28.When the rest speak of Russia it tends to be much harsher, whereas
:05:29. > :05:32.the Chinese offers more toned down language towards Russia is what
:05:33. > :05:37.China is trying to do is gather more and more powers and a balance
:05:38. > :05:41.towards the United States. Doctor Yu Jie, who do you think is in the
:05:42. > :05:46.driving seat in this relationship? It depends on what you look at.
:05:47. > :05:49.Certainly economically China is the driving seat here, but I think in
:05:50. > :05:55.the political sphere both China and Russia play an equal part. Doctor Yu
:05:56. > :06:02.Jie, thank you very much for speaking to us. Doctor Yu Jie from
:06:03. > :06:07.LSE Ideas. Let's take a look at some of the other news stories today.
:06:08. > :06:19.China has for the first time given foreign investors access
:06:20. > :06:22.to its bond market - a $9 trillion trading
:06:23. > :06:24.system which is the third largest in the world.
:06:25. > :06:34.The scheme, which offers investors access via Hong Kong,
:06:35. > :06:36.got off to a busy start, with nearly $300 million'
:06:37. > :06:46.worth of bonds purchased in the first 20 minutes of trading.
:06:47. > :06:51.Iran says the French energy giant, Total, is to sign a contract worth
:06:52. > :06:54.almost $5 billion to develop an offshore gas field.
:06:55. > :06:56.It's Iran's biggest foreign deal since most economic
:06:57. > :06:57.sanctions against the country were lifted last year.
:06:58. > :07:00.Total said it had planned to sign the contract several months ago,
:07:01. > :07:03.but had decided to wait and see if the Trump administration would
:07:04. > :07:07.India introduced a landmark reform to its tax system over the weekend.
:07:08. > :07:09.The "Goods and Services Tax" replaces hundreds of individual
:07:10. > :07:12.state-based levies, and is expected to transform the nation
:07:13. > :07:14.of 1.2 billion people and its $2 trillion economy
:07:15. > :07:26.Looking at some of the stories in newspapers... Japan's second biggest
:07:27. > :07:29.bank is setting up a new branch to ensure it can continue offering
:07:30. > :07:33.disruption to clients with no disruption was the UK leave the EU.
:07:34. > :07:36.And the bank said it would expand its office in London to achieve
:07:37. > :07:42.greater flexibility. So putting a foot in both camps. Samsung is to
:07:43. > :07:55.salvage parts from its catastrophic to make a new phone for the South
:07:56. > :08:02.Korean market. Leisha Santorelli is in Singapore. This new phone, will
:08:03. > :08:07.it inspire confidence if it is made from parts that blew up? Well, just
:08:08. > :08:12.going on social media it is getting mocked online already, but that is
:08:13. > :08:17.not the aim of Samsun with the new release. They have brought the
:08:18. > :08:21.Galaxy Note 7, famous for its exploding batteries, back from the
:08:22. > :08:26.grave, but in South Korea it is being called the fan edition.
:08:27. > :08:31.Samsung says 400,000 pieces will hit stores on Friday costing around 610
:08:32. > :08:36.US dollars, about 30% cheaper than the original As you mentioned it
:08:37. > :08:43.will be made up of unused parts from the recall to which was axed because
:08:44. > :08:48.of these faulty batteries. Almost 3 million handsets in total have been
:08:49. > :08:53.recalled, costing Samsung billions of dollars. It is possible selling
:08:54. > :08:57.these refurbished phones is one way Samsung is looking to soften the
:08:58. > :09:01.financial blow. They are also looking to minimise the
:09:02. > :09:04.environmental impact of that big recall, so instead of throwing the
:09:05. > :09:08.phones away they will reuse parts of it. Most importantly for consumers,
:09:09. > :09:11.I think they are looking to see that this new phone will have a safer
:09:12. > :09:16.battery. Samsung says it does and that the battery will be smaller as
:09:17. > :09:22.well, so we will just have to see what the demand is when it goes on
:09:23. > :09:27.sale on Friday. Leisha, thanks very much for that. Let's have a look at
:09:28. > :09:30.the markets. This is the Asian market overnight. Although deemed
:09:31. > :09:38.reasonably positive. The Hang Seng and the Dow numbers here. The Nikki
:09:39. > :09:50.is up one tenth, and a similar amount up here in the trading
:09:51. > :09:53.system. The Nikkei up largely on the back of reasonably good economic
:09:54. > :10:00.figures out of Japan, but looking forward to the week ahead, Michelle
:10:01. > :10:06.has the details about Wall Street's future. Americans celebrate
:10:07. > :10:10.Independence Day on Tuesday, so while the US markets may be open for
:10:11. > :10:17.a shortened trading session this Monday, or will they be choosing to
:10:18. > :10:21.stay on? Plenty of economic data to digester for those heading into the
:10:22. > :10:26.office. Early estimates on car figures suggest an annual rate of
:10:27. > :10:30.16.6 million vehicles sold. Given if there is an important element of
:10:31. > :10:34.consumer spending, investors will look at the details for any evidence
:10:35. > :10:41.the US economy may be running out of steam. For a snapshot of the
:10:42. > :10:45.manufacturing sector, the Institute for Supply Management has released
:10:46. > :10:53.its figures for June. It is expected to have increased to a reading of
:10:54. > :10:57.55.1 from 54.9 in May. That was Michelle in New York where the --
:10:58. > :11:05.well the European markets have opened half a percent up. Kathleen
:11:06. > :11:08.Brooks from City Index is here. We will talk about more normal market
:11:09. > :11:13.at the minute but first let's talk about is opening up of the bond
:11:14. > :11:19.market in China. How significant is this? Certainly it is a step towards
:11:20. > :11:27.financial normalisation, I suppose. China's bond markets or trillion. It
:11:28. > :11:33.is no small chunk of change -- they are multitrillion. It is interesting
:11:34. > :11:37.because some fund managers that might hold off, the Met control our
:11:38. > :11:41.pension funds, for example, and they could start investing in bonds in
:11:42. > :11:45.China for the first time. Haven't they been a bit worried about debt
:11:46. > :11:50.in China for the last year and so? A good point. This concern about the
:11:51. > :11:54.debt bubble. However opening things up to the debt markets can sometimes
:11:55. > :11:58.allow more scrutiny. Fund managers have strong vetting process in place
:11:59. > :12:02.before they invest. So companies that are not perhaps selling the
:12:03. > :12:05.best kind of debt, supply and demand will mean people will not buy it.
:12:06. > :12:09.Let's talk about what has been happening today. We have seen
:12:10. > :12:14.European markets rise slightly. The financial is not doing too badly at
:12:15. > :12:17.the moment, but we also have today four former Barclays executives in
:12:18. > :12:23.court. Do you think this will have any impact on share prices in the
:12:24. > :12:27.medium to longer term for Barclays, for example? We don't think so,
:12:28. > :12:33.certainly not of the share price. Barclays have suffered in other
:12:34. > :12:36.ways, for example, their book value, how much essentially investors want
:12:37. > :12:41.to own Barclays. And there is a big discount to that, so people are
:12:42. > :12:44.saying, they are kind of... They have been avoiding Barclays during
:12:45. > :12:48.this whole process but forgetting to court stage is almost the last steps
:12:49. > :12:52.we would expect some financials to do quite well now including Barclays
:12:53. > :12:56.and actually for them to ignore the actual outcome. We have had a lot of
:12:57. > :13:02.scrutiny, this case has been building up for over five years, so
:13:03. > :13:07.now the horse has bolted, if you. Potentially if there is no other
:13:08. > :13:09.regulatory concerns in the way... We have seen the regulatory glare
:13:10. > :13:13.turned more towards tech than financials which could be good news
:13:14. > :13:16.for financials down the line. Kathleen Brooks, as usual, thanks
:13:17. > :13:20.very much for that update on the markets. Thank you. Still to come...
:13:21. > :13:26.Science fiction becoming science fact. We will be looking at how
:13:27. > :13:29.augmented reality could be coming to a business near you in the not too
:13:30. > :13:42.distant future, if it is not there already. You watching business Live
:13:43. > :13:45.from BBC News. Boris Johnson has become the latest senior Cabinet
:13:46. > :13:50.minister to put the Chancellor and the -- to put pressure on the
:13:51. > :13:54.Chancellor and Prime Minister to end the public sector pay cap. Sources
:13:55. > :14:01.close to the Foreign Secretary made it clear that he wants better pay
:14:02. > :14:05.for public service workers. Theo Leggett is in our business newsroom
:14:06. > :14:07.- what's the row about? Policy introduced when George Osborne was
:14:08. > :14:11.Chancellor and maintained under Philip Hammond has been to keep the
:14:12. > :14:16.cap on public sector pay, part of the austerity measures designed to
:14:17. > :14:20.reduce the budget deficit, reduce spending. Since 2012 annual rises in
:14:21. > :14:24.public sector pay have effectively been capped at 1% for millions of
:14:25. > :14:28.workers. For that there was a pay freeze as well. The problem is no we
:14:29. > :14:34.are in an era of rising inflation, at 2.9% at the moment, -- now we are
:14:35. > :14:39.in an era of rising inflation. In the wake of the election result, the
:14:40. > :14:42.Government is pretty well aware this is an unpopular policy, and so we
:14:43. > :14:46.have this line up of senior ministers, Michael Gove, Jeremy
:14:47. > :14:50.Hunt, Boris Johnson, or suggesting now is the time to relax this policy
:14:51. > :14:55.and let public sector workers have a little more. If they manage to do
:14:56. > :15:01.that, it is more pay for everybody, how can they afford it? Everything
:15:02. > :15:05.has a price, doesn't it? The options are you could increase taxes, and
:15:06. > :15:09.that is one way potentially of increasing revenue, but there are
:15:10. > :15:12.problems with that. If tax rises are two great it can dampen economic
:15:13. > :15:17.growth and you end up taking in less tax than you started with. It is
:15:18. > :15:20.also politically quite unpopular. The Government could borrow more and
:15:21. > :15:23.finance its spending that way, but that goes against a flagship
:15:24. > :15:37.Conservative Party policy which is to reduce the budget deficit,
:15:38. > :15:39.Ridgers overspending. So that is a couple of ways, or it could just cut
:15:40. > :15:42.back on other Government programmes. We are talking about a very
:15:43. > :15:44.significant amount of money here. The Institute for Physical Studies
:15:45. > :15:49.is lose the figures that were, the political price, and again people
:15:50. > :16:32.don't like to see cuts. Theo, thank you very much
:16:33. > :16:35.Our top story; Chinese President Xi Jinping is in Russia for talks
:16:36. > :16:40.Trade is set to be top of the agenda ahead of the G20 meeting of global
:16:41. > :16:43.The Conservative manifesto was absent
:16:44. > :16:51.A quick look at how markets are faring.
:16:52. > :16:54.Now let's get the Inside Track on augmented reality; it's growing
:16:55. > :16:58.technology where computer-generated images can be superimposed
:16:59. > :17:06.Some estimates say the industry could be worth around
:17:07. > :17:13.Our next guest DAQRI has been using this technology in industrial
:17:14. > :17:15.settings like oil rigs, water treatment plants
:17:16. > :17:22.Users wear a special helmet that allows them to view a piece
:17:23. > :17:26.of machinery such as an oil pipe which has an engineering diagram
:17:27. > :17:42.with us here is Brian Mullins, founder and CEO of DAQRI.
:17:43. > :17:47.You have brought the helmet and smart glasses with you. We should
:17:48. > :17:51.try them on. Unfortunately, we haven't got the software so we can't
:17:52. > :17:55.show you what the image looks like but we can show you what we look
:17:56. > :18:00.like! There we are. The whole idea is
:18:01. > :18:05.there. My head is too big. I tried on the glasses earlier and I
:18:06. > :18:12.couldn't get them on at all! There we go, look. Is it meant to go up
:18:13. > :18:17.like that? Yes. Many various diagrams will arrive in front of
:18:18. > :18:21.your eyes? Yes, that is right. You can take them to work with you and
:18:22. > :18:25.you can see really complicated instructions boiled down in front of
:18:26. > :18:30.you in 3D and it can help you learn faster and remain more. One of the
:18:31. > :18:34.most interesting things about augmented reality, although it talks
:18:35. > :18:37.a lot today about the context of consumers in enterprise, it's
:18:38. > :18:41.already here today. So what applications are you using it for at
:18:42. > :18:46.the moment, which companies are you working with and how is it being
:18:47. > :18:51.used? Customers are using it in the field today to service very complex
:18:52. > :18:55.and expensive equipment like gas turbines and power plants, wind
:18:56. > :18:59.turbines and energy. Places where workers have to go out in the field
:19:00. > :19:05.and have to know how to understand and service and keep running very
:19:06. > :19:13.complex equipment. How much does this thing cost that I couldn't get
:19:14. > :19:18.on to my head? So the prices are usually part of larger package with
:19:19. > :19:23.channel partners. You could expect to pay list price of $10,000 and
:19:24. > :19:27.that allows a worker though to do more in those environments than they
:19:28. > :19:32.could possibly do before. In fact, the economics often pay for
:19:33. > :19:36.themselves very quickly when an expert in Austria no longer has to
:19:37. > :19:41.get on a plane, two to Brazil and service a piece of equipment. What
:19:42. > :19:46.interests me about this is, you buy the kit and software, but are there
:19:47. > :19:50.then ongoing costs as you keep the programme going on, and I assume
:19:51. > :19:54.that's what could be good for you? Part of our business model is
:19:55. > :19:58.helping customers to do what they do better. We have worked with
:19:59. > :20:02.companies like Siemens and case studies we have done together shows
:20:03. > :20:05.drastic reductions in the time it takes for workers to learn
:20:06. > :20:11.activities that may have taken four or five hours to learn in the past
:20:12. > :20:16.can be done in less than 40 minutes. So you know that? We have a study
:20:17. > :20:22.that we published with multiple workers specifically in the context
:20:23. > :20:27.of a power plan. Other companies and universities like Iowa state have
:20:28. > :20:31.published independent research that shows that workers can learn faster,
:20:32. > :20:36.retain more and reduce the time it takes to learn by over 90% and...
:20:37. > :20:40.90%? That's right. And have a significant impact on the way that
:20:41. > :20:45.workers can move throughout their career. It's a very competitive
:20:46. > :20:50.market place isn't it. You have Google and other big tech firms
:20:51. > :20:55.launching all of their own brands. Won't you get swallowed up? It's a
:20:56. > :20:59.competitive space. We see augmented reality is not a one-size-fits-all
:21:00. > :21:04.application. A loft what we do, whether in a helmet or in your
:21:05. > :21:10.glasses, is about helping AR to adapt to the business needs of
:21:11. > :21:14.customers. One of our fastest growing applications is augmented
:21:15. > :21:18.reality for automobiles where our partnership with Jaguar Land Rover
:21:19. > :21:21.has our technology on the road in hundreds of thousands of vehicles
:21:22. > :21:22.today. That's probably where consumers will see augmented reality
:21:23. > :21:33.first. Thank you very much indeed. Do you want to try this on? I've
:21:34. > :21:34.already done that in the green room! They didn't fit me!
:21:35. > :21:37.Now it's time for the latest in our CEO secrets series.
:21:38. > :21:39.A lot of successful bosses started out very young, forging businesses
:21:40. > :21:42.while still in university or high school.
:21:43. > :21:45.That's right, but the CEO of icoolKids takes things to a whole
:21:46. > :21:51.new level.Jenk Oz is just 12 years old but he first came up
:21:52. > :22:14.with the idea when he was, wait for it, just eight.
:22:15. > :22:23.The most important thing is to form what I call an idea board of
:22:24. > :22:26.directors. This is about five to six people who have varying different
:22:27. > :22:30.backgrounds and different life experiences. They have to be great
:22:31. > :22:33.listeners, completely impartial. I think you should always have someone
:22:34. > :22:38.who is adult and always have at least one person who is a bitter
:22:39. > :22:45.younger than you and help you expand on your ideas that you already have
:22:46. > :22:55.and having someone to tell you who is good and could possibly go wrong.
:22:56. > :23:01.You keep going with your ideas. Social media - likes don't matter,
:23:02. > :23:05.followers don't matter. Keep going and engage with your community.
:23:06. > :23:11.The BBC's Dominic O'Connell is with us.
:23:12. > :23:26.Let us start with this story about Saudi's oil company. The story is
:23:27. > :23:33.not about what it says on the tin. Everyone knows they do chemicals.
:23:34. > :23:39.Saudi is looking at floating on the western stock exchange. Probably
:23:40. > :23:40.right here in London with a two trillion dollar estimation, but it
:23:41. > :23:45.probably won't be anything like that. The reason this story is
:23:46. > :23:50.appearing is to show that it's not just oil, it makes other chemicals.
:23:51. > :23:54.It's about driving up their valuation ahead of the pricing. Let
:23:55. > :24:03.us move on to what our next stories are. It's about floating of
:24:04. > :24:10.valuations, a huge one penneltially on the cards for Deliveroo. It's
:24:11. > :24:14.been a unicorn, it's a term for normally an online company that
:24:15. > :24:18.doesn't make any money but which is valued at more than a billion
:24:19. > :24:22.dollars by investors. If they are doing a funding round, you work out
:24:23. > :24:28.how much the total company is worth. This latest funding is around 1.5
:24:29. > :24:37.billion dollars. That is a number people just make up isn't it?
:24:38. > :24:42.Unicorns are also, when they stop being unicorns, they're uni-corpses.
:24:43. > :24:49.This business model and working in this economy... It's another example
:24:50. > :24:54.of an economy which says all its riders ride with their big boxes on
:24:55. > :25:01.their backs, most young kids riding for a few hours a day, they are not
:25:02. > :25:05.all employed by Deliveroo, they're self-employed and don't have any
:25:06. > :25:09.rights which is a bone of contention for all these types of economies.
:25:10. > :25:13.Are you thinking of queueing up for Wimbledon? I can't think of anything
:25:14. > :25:19.that I would line up for. You had a good idea? I would queue through the
:25:20. > :25:24.night to buy a house but Joey tweeted to say he'd queue through
:25:25. > :25:32.the night for a ticket to see that Don that that. Matt says -- Madonna.
:25:33. > :25:35.Matt says Bruce Springsteen for a ticket at the front row.
:25:36. > :25:40.This happens year after year at Wimbledon. If you two to Wimbledon,
:25:41. > :25:47.normally you walk past the queue in the park and it's not just a small
:25:48. > :25:51.queue, this is a queue that goes on, 600, 700 metres, even more. The
:25:52. > :25:55.pictures are like Glastonbury actually. Camping. A very smart
:25:56. > :26:13.Glastonbury. Fantastic. Dominic, Good morning. We started off July on
:26:14. > :26:14.a decent note across most