:00:09. > :00:15.This is Business Live from BBC News with Rachel Horne and Ben Bland.
:00:16. > :00:18.Pressure grows on that T20 Reach G20 to tackle the migration crisis, is
:00:19. > :00:24.more investment in Africa the answer? That is our top story. --
:00:25. > :00:40.pressure grows on the G20. The G20 begins today, but can
:00:41. > :00:43.leaders who represent 85% of the world's wealth come up with a plan
:00:44. > :00:48.to solve the growing migration crisis? Also when the programme,
:00:49. > :00:52.forget the exploding phones, because Samsung says it is on track for
:00:53. > :00:56.record quarterly profits. We live in our Asia business hub with details.
:00:57. > :00:58.Markets in Europe have opened and they are all down, we'll be looking
:00:59. > :01:03.at the figures. And we'll be getting
:01:04. > :01:06.the inside track on this weeks big financial news with the BBC's
:01:07. > :01:08.business guru Simon Jack. Social media is buzzing
:01:09. > :01:09.today with rumours that President Trump had trouble
:01:10. > :01:12.securing a hotel room So today we want to know
:01:13. > :01:16.what you have missed out Just let us know -
:01:17. > :01:30.Use the hashtag BBCBizLive. We start in Hamburg, Germany
:01:31. > :01:36.where as you've been hearing, leaders of the G20 group
:01:37. > :01:38.of the world's top Concerns over free trade
:01:39. > :01:41.and the environment But for Europe - equally pressing
:01:42. > :01:53.is the migration crisis. Record numbers of migrants
:01:54. > :01:56.from Sub-Saharan Africa have been heading into the EU -
:01:57. > :01:57.increasingly across the Mediterranean via
:01:58. > :01:59.Italy as this map shows. The final destination
:02:00. > :02:01.for many is Germany - where migration related costs
:02:02. > :02:07.are projected to top $100bn by 2020. Chancellor Angela Merkel has made it
:02:08. > :02:09.clear that she thinks other countries must shoulder more
:02:10. > :02:11.of the burden Last year alone Germany saw almost
:02:12. > :02:14.three quarters of a million There are fears that climate change
:02:15. > :02:17.and poverty could drive millions more Africans in particular to make
:02:18. > :02:33.the dangerous journey to Europe Look at these numbers
:02:34. > :02:35.and you can see why According to the World Bank -
:02:36. > :02:39.the average income in Sub-Saharan Africa last
:02:40. > :02:40.year was $1,504. With me is Professor Christian
:02:41. > :02:44.Dustmann, Director of the Centre for Research Analysis of Migration
:02:45. > :02:56.at University College London. We'll speak in a moment, I think we
:02:57. > :03:03.can show you live the scene in Hamburg. It looks like Emmanuel
:03:04. > :03:09.Macron just getting into a car. This is live from Hamburg where the G20
:03:10. > :03:15.summit of leaders is taking place. All eyes are on that. A lot for them
:03:16. > :03:26.to be discussing. Including how to deal with the migration crisis. So
:03:27. > :03:31.let's delve into that with Professor Dustman. What do you think the
:03:32. > :03:35.likelihood is of reaching consensus, how much common ground is there
:03:36. > :03:41.between the leaders when it comes to the challenges, benefits and answers
:03:42. > :03:45.to the migration crisis. Consensus on what precisely? What we're seeing
:03:46. > :03:53.at the moment is a continuation of what started in 2015, emphasis has
:03:54. > :03:59.shifted from Africa to the Middle East. People are fleeing war,
:04:00. > :04:04.persecution and, increasingly, poverty. Making their way over the
:04:05. > :04:10.Mediterranean into Europe. Now, the borders of Libya, which have been
:04:11. > :04:15.avoiding that during the Gaddafi regime, are now not doing that any
:04:16. > :04:22.more. This flow has to be in some way addressed. Where we can see, and
:04:23. > :04:24.hopefully we'll see consensus, is to create situations in those countries
:04:25. > :04:31.where these people are coming from which will make it liveable future
:04:32. > :04:35.for these people. I think that is something where we can see hopefully
:04:36. > :04:41.some progress at the G20. These are the leaders of some of the most
:04:42. > :04:47.powerful and wealthy nations. There is a lot of anger among some, we can
:04:48. > :04:51.see protests taking place on the streets. Some people feeling these
:04:52. > :04:57.very powerful leaders are simply not doing enough. I wonder whether you
:04:58. > :05:00.think that, for example, greater investment in Africa and supporting
:05:01. > :05:07.those North African economies would help actually solve the deeper
:05:08. > :05:12.problem? Well it will address the problem, it's not so much only the
:05:13. > :05:16.economic situation in which we find these people, but instability and
:05:17. > :05:20.insecurity. Even more so, the population projections for these
:05:21. > :05:25.countries are quite dramatic. We have 1.1 billion people living in
:05:26. > :05:33.Africa today. They are projected to increase to 2.8 billion in 45 years.
:05:34. > :05:38.So the pressure will not abate. We need to address insecurity,
:05:39. > :05:45.instability and poverty in these countries, if we want to address the
:05:46. > :05:50.increasing migration flows from those regions. It's got to be a
:05:51. > :05:54.long-term plan. One of the counters to the idea of immediate investment
:05:55. > :05:57.in Africa is that once people are earning more, then they will
:05:58. > :06:03.actually have more means to make that journey north to Europe. That
:06:04. > :06:07.is very true, many of the very poor people who would like to migrate
:06:08. > :06:12.don't even have the means to do so. So increasing economic wealth in
:06:13. > :06:18.those regions, without creating security and stability, and a future
:06:19. > :06:22.for these people, may actually at least in the short run lead to
:06:23. > :06:30.increased migrations, and that has to be considered. We are seeing live
:06:31. > :06:34.images from Hamburg, those protesters staging a sit in protest
:06:35. > :06:38.in the middle of the street. It appears police are using water
:06:39. > :06:43.cannon on them to try to get them to move on. Dave been protesting in
:06:44. > :06:50.Hamburg since the summit began yesterday. Initially a very peaceful
:06:51. > :06:55.protest, but then it later turned into clashes between protesters and
:06:56. > :06:59.riot police. We can see the water cannon being used, but the
:07:00. > :07:09.protesters seemingly not being moved by that. Determined to stay there.
:07:10. > :07:14.Some of them feeling, perhaps, capitalism, the markets have in some
:07:15. > :07:18.way failed some of these people, who are in a really desperate situation.
:07:19. > :07:24.But also angry about what they would consider the insufficient action
:07:25. > :07:27.taken by the world leaders at that G20 summit. A lot of focus on that,
:07:28. > :07:36.they know the world will be watching. Huge media presence, with
:07:37. > :07:39.the G20 leaders, and these protesters will no doubt have
:07:40. > :07:44.factored that in, knowing they will get a lot of attention drawn to
:07:45. > :07:49.their cause and the points they are trying to make.
:07:50. > :07:55.Professor Dustmann, what reaction do you think this will garner within
:07:56. > :08:04.the G20 leaders? I don't think this will affect much what will be
:08:05. > :08:10.negotiated within the G20 circles. I mean... In a way some of the
:08:11. > :08:14.arguments you see in the streets are a little bit naive. Of course we
:08:15. > :08:21.need to help people in need, but what we have seen in 2015-2016 for
:08:22. > :08:26.instance was that very large migration flows from countries
:08:27. > :08:32.outside Europe lead to political radicalisation within Europe. We had
:08:33. > :08:35.the rise of the radical anti-immigration party in Germany
:08:36. > :08:40.and also in other European countries as a response to the migration
:08:41. > :08:45.crisis of 2015. If that leads to political change, then clearly that
:08:46. > :08:50.doesn't help anybody. So we can deal with migration but we have to avoid
:08:51. > :08:54.inflows which are considered by the majority of the population is
:08:55. > :08:58.something not sustainable. Again, it brings me to the point I tried to
:08:59. > :09:02.make earlier, we need to address the issues and the problems in those
:09:03. > :09:07.countries where these people are coming from. I hope we will make
:09:08. > :09:11.progress on that at the G20. The key issue here, of course, is that much
:09:12. > :09:19.of the instability, which is causing these migrations, is created by a
:09:20. > :09:25.number of different actors. Not just Europe alone which can influence
:09:26. > :09:28.that. It is many other countries which have to take responsibility.
:09:29. > :09:35.And that is why it is so important to discuss that within the G20
:09:36. > :09:36.meeting. Professor Dustmann from UCL, thank you very much for your
:09:37. > :09:37.time. Let's take a look at some of
:09:38. > :09:40.the other stories making the news. Microsoft is to cut "thousands"
:09:41. > :09:43.of jobs worldwide as it attempts to beef up its presence
:09:44. > :09:45.in the cloud computing sector. The technology giant wants
:09:46. > :09:47.to strengthen its cloud computing division but is facing intense
:09:48. > :09:50.competition from rivals such The majority of cuts are expected
:09:51. > :09:57.to be outside the US. Luxury handbag maker,
:09:58. > :09:58.Mulberry, has set-up a joint venture in Japan as it
:09:59. > :10:05.continues its expansion into Asia. The company has signed a deal
:10:06. > :10:07.with Japan's Onward Global Fashion The company will be called
:10:08. > :10:11.Mulberry Japan and have Earlier this year, the company
:10:12. > :10:14.launched Mulberry Asia, operating in Hong Kong,
:10:15. > :10:18.China and Taiwan. Tesla is planning to build
:10:19. > :10:20.the world's biggest battery in South Australia
:10:21. > :10:24.to store renewable energy. The lithium ion battery system
:10:25. > :10:27.will be paired with a wind farm. Repeated recent blackouts
:10:28. > :10:30.in South Australia have sparked a political row over energy policy,
:10:31. > :10:35.with the federal government blaming the failures on the use
:10:36. > :10:43.of renewable technology. Samsung Electronics seems to have
:10:44. > :10:45.recovered from both its exploding smartphone crisis and it's
:10:46. > :10:49.corporate corruption scandal. The South Korean tech giant says it
:10:50. > :11:07.made record quarterly Tell us more. You've been looking at
:11:08. > :11:12.the figures. For the first time, Samsung has taken a bite out of the
:11:13. > :11:15.Apple in terms of quarterly profits. The South Korean electronics giant
:11:16. > :11:22.says it will make $12 billion in the second quarter, a 72% bump compared
:11:23. > :11:26.to where it was this time last year. All because of strong demand for
:11:27. > :11:30.memory chips. Some analysts say the company is on track to overtake
:11:31. > :11:35.Intel is the world's biggest chip-maker in terms of sales by the
:11:36. > :11:38.end of 2017. It's a huge turnaround from where Sansom was half a year
:11:39. > :11:43.ago. They were coming off the scandal of exploding batteries on
:11:44. > :11:49.the galaxy note seven. You wonder what they do with the other parts
:11:50. > :11:52.that are OK to use. In South Korea they launched a new phone and said
:11:53. > :11:58.the reason was because they wanted to minimise the environmental
:11:59. > :11:59.impact. Let's look at how the markets have been getting on.
:12:00. > :12:03.Overnight in Asia... Traders have been watching political
:12:04. > :12:05.tensions on the Korean peninsula, falling oil prices and were also
:12:06. > :12:08.awaiting a key employment report indices loosing out to the bond
:12:09. > :12:24.markets - central banks calling for a tightening
:12:25. > :12:26.of monetary policy - soon they will start to turn
:12:27. > :12:29.off the flow of easy money to the markets -
:12:30. > :12:31.that has made bonds more attractive - driven up the yield investors can
:12:32. > :12:34.get from bonds which means some are turning from equities
:12:35. > :12:36.to bonds - explaining some And Samira Hussain has
:12:37. > :12:55.the details about what's ahead It's the first Friday in July, which
:12:56. > :12:59.means it is jobs day for the US. The latest snapshot of America's labour
:13:00. > :13:03.market will be released. The unemployment rate currently stands
:13:04. > :13:07.at 4.3%, economists are not expecting it to change. Analysts
:13:08. > :13:11.will be looking closely at both the labour participation rate and to see
:13:12. > :13:17.if wages have increased. Ahead of the US Federal reserve Janet Yellen
:13:18. > :13:20.will testify to US lawmakers next week and on Friday the American
:13:21. > :13:24.central bank will issue its semiannual report outlining recent
:13:25. > :13:28.policy decisions and describing its plans for reducing its asset
:13:29. > :13:33.holdings. By law the Fed has to testify twice a year and issues a
:13:34. > :13:37.formal report on the state of the economy and monetary policy. Usually
:13:38. > :13:40.it is issued simultaneously with the chair's testimony, but this year the
:13:41. > :13:46.report will be issued a few days ahead of time. Joining us now is
:13:47. > :13:55.Richard Fletcher, business editor at the times. We mentioned the US jobs
:13:56. > :13:59.figures out later. What are analysts expecting? They are closely watching
:14:00. > :14:05.job figures to give a snapshot of the US economy. We expect 179,000
:14:06. > :14:10.non-farm payroll jobs to be created, then there will be a focus on
:14:11. > :14:14.average earnings, expected to come in at 0.3%. The overall unemployment
:14:15. > :14:20.figure, which we expect will stay at 4.3%. It's what this tells us about
:14:21. > :14:24.the US economy, particularly what that means in terms of whether the
:14:25. > :14:28.Fed will eventually reach its forward target of a third rate rise
:14:29. > :14:33.this year. At the moment there is very little chance of a rate rise
:14:34. > :14:37.when they next meet, only 18% chance in September, according to how the
:14:38. > :14:41.markets are pricing. It's going to give us, hopefully, some clue about
:14:42. > :14:45.what's happening to the US economy and what it might mean in terms of
:14:46. > :14:50.rate rises. It comes back to the whole sell-off of equities and
:14:51. > :14:53.what's happening in the bond market. Let's talk about the bond market,
:14:54. > :14:58.we've seen a rise in the bond markets. As yields have gone up they
:14:59. > :15:05.are looking more attractive to investors. The German ten year bond
:15:06. > :15:09.is trading at an 18 month high. With the ECB minutes we had earlier this
:15:10. > :15:13.week, there is this feeling the ECB is going to turn off the taps is a
:15:14. > :15:20.bit sooner than the market had expected. We've also seen here in
:15:21. > :15:24.the UK split among the MBC. There is a feeling that globally we will see
:15:25. > :15:28.a tightening of monetary policy. There will be some people who say,
:15:29. > :15:31.you know, about time. Because this loose monetary policy has been in
:15:32. > :15:40.place for so long that the concern is, if there was another chopped the
:15:41. > :15:44.system the are almost all the way into emergency mode. How do you turn
:15:45. > :15:48.this off after such a long period of loose monetary policy? That is
:15:49. > :15:52.interesting. For the central bankers it's about how you do that without
:15:53. > :15:54.causing too much of a shock to the market. Oil doesn't know if it up or
:15:55. > :16:07.down, it's volatile at the moment. It has been volatile for oil at the
:16:08. > :16:11.moment. One of the big movers has come out and said, the changes we
:16:12. > :16:14.have seen in the US because the costs in production of shale
:16:15. > :16:21.falling, we will look at oil trading in this tight band. We've seen it
:16:22. > :16:26.trading in this $45 - $55 band for a long time. That's probably set to
:16:27. > :16:31.continue, a bit up and down on a daily basis but we do appear to be
:16:32. > :16:36.quite range bound. When it comes to investing it is all about timing and
:16:37. > :16:41.not leaving it too late, it ties in with rumours about President Trump
:16:42. > :16:47.at the G20 apparently struggling to get a hotel room. Have you ever left
:16:48. > :16:50.it too late, for investment or otherwise? I'm a terrible investor
:16:51. > :16:54.so I have definitely left it too late. I am a nervous traveller so I
:16:55. > :16:59.booked my hotel and get to the airport at least a day in advance. I
:17:00. > :17:05.know the feeling, having once missed a flight and the stress of that.
:17:06. > :17:08.Richard, thank you very much. Richard Fletcher, there. Coming up
:17:09. > :17:14.with a look at the mega trade deal between Europe and Japan and if free
:17:15. > :17:22.trade is back on the global agenda. This is Business Life from the BBC.
:17:23. > :17:25.The food delivery firm Deliveroo has said it will pay sickness and injury
:17:26. > :17:28.benefits to its 15,000 riders in the UK if the law is changed.
:17:29. > :17:31.At the moment the firm says, the law prevents it from offering
:17:32. > :17:33.enhanced rights because it classifies its riders
:17:34. > :17:42.Let's get more from our business correspondent Theo Leggett.What
:17:43. > :17:54.As you know Deliveroo is a company that takes restaurant food and
:17:55. > :17:58.delivers it direct to customers. It uses a network of cyclists and
:17:59. > :18:03.mopeds and riders mainly to deliver the food and they work flexibly. So
:18:04. > :18:08.they can work when they want, log on, get jobs to them and work for
:18:09. > :18:12.other people as well. As a result Deliveroo classifies them as
:18:13. > :18:16.self-employed. So they are not eligible for holiday pay and
:18:17. > :18:20.sickness benefit. What Deliveroo has done, is, in submission to the
:18:21. > :18:26.government which is reviewing how employment law works with regards to
:18:27. > :18:29.the gig economy, it says if the category of workers is changed it
:18:30. > :18:34.might be prepared to offer more benefits than it currently gets. Why
:18:35. > :18:39.is there an issue with the current law. It hasn't kept up with the way
:18:40. > :18:44.the economy has changed especially the development of the gig economy.
:18:45. > :18:49.People who work on behalf of companies are either categorised as
:18:50. > :18:52.self-employed, as workers or as employees. As we go up that scale
:18:53. > :18:56.the number of benefits you are eligible for increases. A lot of
:18:57. > :19:00.companies in the gig economy in particular want to give their
:19:01. > :19:04.workers classified as self-employed because then they don't have to pay
:19:05. > :19:08.National Insurance on behalf of those workers so they can operate
:19:09. > :19:11.more cheaply. For the workers and offers flexibility although they
:19:12. > :19:17.don't have those benefits. The gig economy is a great area. It doesn't
:19:18. > :19:23.fit naturally -- a grey area. It doesn't fit in any of those
:19:24. > :19:27.classifications. So the law is being looked at to see if these workers
:19:28. > :19:31.cannot be exploited and at the same time give them the flexibility to
:19:32. > :19:36.work in a way that they do. Thank you very much for that. Very
:19:37. > :19:40.interesting story continuing with the gig economy which is becoming a
:19:41. > :19:49.huge part the economy in the UK, with zero hours contracts, people
:19:50. > :19:53.are starting to work out how to make it work both for the employer and
:19:54. > :19:56.the employee. You can read more about that story on the business
:19:57. > :20:01.page. You're watching Business
:20:02. > :20:04.Live - our top story. The G20 summit gets under
:20:05. > :20:10.way in Hamburg today. The meeting is expected to be
:20:11. > :20:13.divisive, as world leaders discuss a wide range of issues -
:20:14. > :20:14.including migration, A quick look at how
:20:15. > :20:26.markets are faring. This is how they look at the start
:20:27. > :20:27.of the trading day across Europe, all the main indices are down shade,
:20:28. > :20:36.and the pound below the $1.30 mark. And now let's get the inside track
:20:37. > :20:41.on this week's big financial stories including that mega deal
:20:42. > :20:53.between Japan and the EU and the billionaire owner
:20:54. > :20:55.of Newcastle football club's rather unusual meeting style --
:20:56. > :21:05.Our business editor The main focus is on Trump and Putin
:21:06. > :21:07.but keep an eye on trade and in particular this undercurrent of
:21:08. > :21:14.whether the US. Imposing steel tariffs. There's a story about steel
:21:15. > :21:18.and whiskey and orange juice. President Trump has been the big
:21:19. > :21:23.defender of the US steel industry. He's already got tough with China
:21:24. > :21:30.about some of their steel exports to the US. It looks as if he puts wider
:21:31. > :21:33.tariffs on steel imports, people say this trade war could be starting and
:21:34. > :21:38.other countries will get caught in the crossfire but we have seen
:21:39. > :21:43.between the US and China. He's been looking into a particular section,
:21:44. > :21:47.section 232 of an old act from the 1960s saying, you can reveal imports
:21:48. > :21:52.if this national security interest. What he is trying to say is that
:21:53. > :21:56.they use steel in defence. It hasn't been done often before so he's using
:21:57. > :22:02.a strange and powerful instrument to maybe put the squeeze on foreign and
:22:03. > :22:05.steel imports into the US. The other interesting thing about the meeting
:22:06. > :22:12.of the leaders is not just the official group gathering but what is
:22:13. > :22:15.happening on the sidelines, we saw yesterday the meeting between EU
:22:16. > :22:21.leaders in Japan talking about this deal that they have reached. If you
:22:22. > :22:27.look at the backlash around the world, it seems against the odds.
:22:28. > :22:31.The Japan deal is interesting because for one thing it did not
:22:32. > :22:36.take a long time to do, they've been negotiating it since 2013. It will
:22:37. > :22:43.also put out of joint analysis of French auto makers, exports of cars,
:22:44. > :22:46.a tariff of 10% on that, for the Europeans, agricultural products, a
:22:47. > :22:51.lot of beef is consumed in Japan, what is interesting in a Brexit
:22:52. > :22:56.context, there seems to have been this move against free trade, a big
:22:57. > :23:03.blockbuster deal. At the same time you see the UK is leaving the EU and
:23:04. > :23:06.some say this is leaving precisely at the moment when they have their
:23:07. > :23:11.mojo and their schools together on trading. Others say, people like
:23:12. > :23:15.Japan want to do deals with important economies, the UK is one
:23:16. > :23:19.of them and this could be a bit of a blueprint for a deal between the UK
:23:20. > :23:24.and Japan. Speaking of the T20 another meeting is also happening in
:23:25. > :23:27.the weekend in the UK. Business leaders are going to the Foreign
:23:28. > :23:32.Secretary 's residence to meet with the government. Business leaders
:23:33. > :23:36.felt they had been frozen out of the political process, their hopes and
:23:37. > :23:43.fears about Brexit were not being listened to. And just last might the
:23:44. > :23:48.CBI said, what we want to do is running out, we are never going to
:23:49. > :23:55.get a trade deal done in the time available until March 20 19. What we
:23:56. > :23:58.should do now is say early until we get a full trade steel, and it is
:23:59. > :24:04.enforced we should stay in the single market and in the customs
:24:05. > :24:08.union. People on the other side of the debate say this sounds like
:24:09. > :24:14.Hotel California, you can check out any time you like but you can never
:24:15. > :24:18.leave because this will go on for years! With spoken before about
:24:19. > :24:24.Sports Direct. Interesting revelations. Real caucus! Sports
:24:25. > :24:27.Direct is run by the maverick entrepreneur, Mike Ashley. He
:24:28. > :24:32.founded this company and did fantastically well. They floated
:24:33. > :24:37.some shares. He runs it with an iron fist and owns 70% of the shares. He
:24:38. > :24:42.calls the shots and it turns out he also buys the shots! He had a big
:24:43. > :24:48.boozy meeting where he drank 12 pints of lager punctuated by vodka
:24:49. > :24:51.chasers. Apparently he drew up into the fireplace. The case in the court
:24:52. > :24:55.at the moment is that on one of these boozy nights he said to one
:24:56. > :25:00.investment banker, if you can double the share price give you ?15
:25:01. > :25:04.million. It did happen and now he said it was nothing more than
:25:05. > :25:08.banter. The other guy said, no we have a proper understanding. Very
:25:09. > :25:15.amusing story. It's well worth the read. My Twitter question,
:25:16. > :25:20.apparently Donald Trump had trouble finding a hotel room at the G20
:25:21. > :25:26.because he left it too late to book. I went to the Frankfurt motor show
:25:27. > :25:31.and ended up staying in, it was more like a monastery cell, it was like a
:25:32. > :25:35.monastic cell. When you go to one of these big trade conventions like
:25:36. > :25:41.Frankfurt motor show or the G20 the best hotels are booked. If you know
:25:42. > :25:45.journalists, we go at the whim of the editor and by the time you get
:25:46. > :25:49.there only the greatest rooms are available. And he's still got there
:25:50. > :25:54.and did the job. -- the greatest rooms. That's it from Business Live
:25:55. > :25:59.today. There will be more business news
:26:00. > :26:02.throughout the day on the BBC Live webpage and on World Business
:26:03. > :26:03.Report. We will be back on Monday, we will
:26:04. > :26:11.see you then.