07/07/2017 BBC Business Live

This is Business Live from BBC News with Rachel Horne and Ben Bland.

Pressure grows on that T20 Reach G20 to tackle the migration crisis, is

more investment in Africa the answer? That is our top story. --

pressure grows on the G20. The G20 begins today, but can

leaders who represent 85% of the world's wealth come up with a plan

to solve the growing migration crisis? Also when the programme,

forget the exploding phones, because Samsung says it is on track for

record quarterly profits. We live in our Asia business hub with details.

Markets in Europe have opened and they are all down, we'll be looking

at the figures. And we'll be getting

the inside track on this weeks big financial news with the BBC's

business guru Simon Jack. Social media is buzzing

today with rumours that President Trump had trouble

securing a hotel room So today we want to know

what you have missed out Just let us know -

Use the hashtag BBCBizLive. We start in Hamburg, Germany

where as you've been hearing, leaders of the G20 group

of the world's top Concerns over free trade

and the environment But for Europe - equally pressing

is the migration crisis. Record numbers of migrants

from Sub-Saharan Africa have been heading into the EU -

increasingly across the Mediterranean via

Italy as this map shows. The final destination

for many is Germany - where migration related costs

are projected to top $100bn by 2020. Chancellor Angela Merkel has made it

clear that she thinks other countries must shoulder more

of the burden Last year alone Germany saw almost

three quarters of a million There are fears that climate change

and poverty could drive millions more Africans in particular to make

the dangerous journey to Europe Look at these numbers

and you can see why According to the World Bank -

the average income in Sub-Saharan Africa last

year was $1,504. With me is Professor Christian

Dustmann, Director of the Centre for Research Analysis of Migration

at University College London. We'll speak in a moment, I think we

can show you live the scene in Hamburg. It looks like Emmanuel

Macron just getting into a car. This is live from Hamburg where the G20

summit of leaders is taking place. All eyes are on that. A lot for them

to be discussing. Including how to deal with the migration crisis. So

let's delve into that with Professor Dustman. What do you think the

likelihood is of reaching consensus, how much common ground is there

between the leaders when it comes to the challenges, benefits and answers

to the migration crisis. Consensus on what precisely? What we're seeing

at the moment is a continuation of what started in 2015, emphasis has

shifted from Africa to the Middle East. People are fleeing war,

persecution and, increasingly, poverty. Making their way over the

Mediterranean into Europe. Now, the borders of Libya, which have been

avoiding that during the Gaddafi regime, are now not doing that any

more. This flow has to be in some way addressed. Where we can see, and

hopefully we'll see consensus, is to create situations in those countries

where these people are coming from which will make it liveable future

for these people. I think that is something where we can see hopefully

some progress at the G20. These are the leaders of some of the most

powerful and wealthy nations. There is a lot of anger among some, we can

see protests taking place on the streets. Some people feeling these

very powerful leaders are simply not doing enough. I wonder whether you

think that, for example, greater investment in Africa and supporting

those North African economies would help actually solve the deeper

problem? Well it will address the problem, it's not so much only the

economic situation in which we find these people, but instability and

insecurity. Even more so, the population projections for these

countries are quite dramatic. We have 1.1 billion people living in

Africa today. They are projected to increase to 2.8 billion in 45 years.

So the pressure will not abate. We need to address insecurity,

instability and poverty in these countries, if we want to address the

increasing migration flows from those regions. It's got to be a

long-term plan. One of the counters to the idea of immediate investment

in Africa is that once people are earning more, then they will

actually have more means to make that journey north to Europe. That

is very true, many of the very poor people who would like to migrate

don't even have the means to do so. So increasing economic wealth in

those regions, without creating security and stability, and a future

for these people, may actually at least in the short run lead to

increased migrations, and that has to be considered. We are seeing live

images from Hamburg, those protesters staging a sit in protest

in the middle of the street. It appears police are using water

cannon on them to try to get them to move on. Dave been protesting in

Hamburg since the summit began yesterday. Initially a very peaceful

protest, but then it later turned into clashes between protesters and

riot police. We can see the water cannon being used, but the

protesters seemingly not being moved by that. Determined to stay there.

Some of them feeling, perhaps, capitalism, the markets have in some

way failed some of these people, who are in a really desperate situation.

But also angry about what they would consider the insufficient action

taken by the world leaders at that G20 summit. A lot of focus on that,

they know the world will be watching. Huge media presence, with

the G20 leaders, and these protesters will no doubt have

factored that in, knowing they will get a lot of attention drawn to

their cause and the points they are trying to make.

Professor Dustmann, what reaction do you think this will garner within

the G20 leaders? I don't think this will affect much what will be

negotiated within the G20 circles. I mean... In a way some of the

arguments you see in the streets are a little bit naive. Of course we

need to help people in need, but what we have seen in 2015-2016 for

instance was that very large migration flows from countries

outside Europe lead to political radicalisation within Europe. We had

the rise of the radical anti-immigration party in Germany

and also in other European countries as a response to the migration

crisis of 2015. If that leads to political change, then clearly that

doesn't help anybody. So we can deal with migration but we have to avoid

inflows which are considered by the majority of the population is

something not sustainable. Again, it brings me to the point I tried to

make earlier, we need to address the issues and the problems in those

countries where these people are coming from. I hope we will make

progress on that at the G20. The key issue here, of course, is that much

of the instability, which is causing these migrations, is created by a

number of different actors. Not just Europe alone which can influence

that. It is many other countries which have to take responsibility.

And that is why it is so important to discuss that within the G20

meeting. Professor Dustmann from UCL, thank you very much for your

time. Let's take a look at some of

the other stories making the news. Microsoft is to cut "thousands"

of jobs worldwide as it attempts to beef up its presence

in the cloud computing sector. The technology giant wants

to strengthen its cloud computing division but is facing intense

competition from rivals such The majority of cuts are expected

to be outside the US. Luxury handbag maker,

Mulberry, has set-up a joint venture in Japan as it

continues its expansion into Asia. The company has signed a deal

with Japan's Onward Global Fashion The company will be called

Mulberry Japan and have Earlier this year, the company

launched Mulberry Asia, operating in Hong Kong,

China and Taiwan. Tesla is planning to build

the world's biggest battery in South Australia

to store renewable energy. The lithium ion battery system

will be paired with a wind farm. Repeated recent blackouts

in South Australia have sparked a political row over energy policy,

with the federal government blaming the failures on the use

of renewable technology. Samsung Electronics seems to have

recovered from both its exploding smartphone crisis and it's

corporate corruption scandal. The South Korean tech giant says it

made record quarterly Tell us more. You've been looking at

the figures. For the first time, Samsung has taken a bite out of the

Apple in terms of quarterly profits. The South Korean electronics giant

says it will make $12 billion in the second quarter, a 72% bump compared

to where it was this time last year. All because of strong demand for

memory chips. Some analysts say the company is on track to overtake

Intel is the world's biggest chip-maker in terms of sales by the

end of 2017. It's a huge turnaround from where Sansom was half a year

ago. They were coming off the scandal of exploding batteries on

the galaxy note seven. You wonder what they do with the other parts

that are OK to use. In South Korea they launched a new phone and said

the reason was because they wanted to minimise the environmental

impact. Let's look at how the markets have been getting on.

Overnight in Asia... Traders have been watching political

tensions on the Korean peninsula, falling oil prices and were also

awaiting a key employment report indices loosing out to the bond

markets - central banks calling for a tightening

of monetary policy - soon they will start to turn

off the flow of easy money to the markets -

that has made bonds more attractive - driven up the yield investors can

get from bonds which means some are turning from equities

to bonds - explaining some And Samira Hussain has

the details about what's ahead It's the first Friday in July, which

means it is jobs day for the US. The latest snapshot of America's labour

market will be released. The unemployment rate currently stands

at 4.3%, economists are not expecting it to change. Analysts

will be looking closely at both the labour participation rate and to see

if wages have increased. Ahead of the US Federal reserve Janet Yellen

will testify to US lawmakers next week and on Friday the American

central bank will issue its semiannual report outlining recent

policy decisions and describing its plans for reducing its asset

holdings. By law the Fed has to testify twice a year and issues a

formal report on the state of the economy and monetary policy. Usually

it is issued simultaneously with the chair's testimony, but this year the

report will be issued a few days ahead of time. Joining us now is

Richard Fletcher, business editor at the times. We mentioned the US jobs

figures out later. What are analysts expecting? They are closely watching

job figures to give a snapshot of the US economy. We expect 179,000

non-farm payroll jobs to be created, then there will be a focus on

average earnings, expected to come in at 0.3%. The overall unemployment

figure, which we expect will stay at 4.3%. It's what this tells us about

the US economy, particularly what that means in terms of whether the

Fed will eventually reach its forward target of a third rate rise

this year. At the moment there is very little chance of a rate rise

when they next meet, only 18% chance in September, according to how the

markets are pricing. It's going to give us, hopefully, some clue about

what's happening to the US economy and what it might mean in terms of

rate rises. It comes back to the whole sell-off of equities and

what's happening in the bond market. Let's talk about the bond market,

we've seen a rise in the bond markets. As yields have gone up they

are looking more attractive to investors. The German ten year bond

is trading at an 18 month high. With the ECB minutes we had earlier this

week, there is this feeling the ECB is going to turn off the taps is a

bit sooner than the market had expected. We've also seen here in

the UK split among the MBC. There is a feeling that globally we will see

a tightening of monetary policy. There will be some people who say,

you know, about time. Because this loose monetary policy has been in

place for so long that the concern is, if there was another chopped the

system the are almost all the way into emergency mode. How do you turn

this off after such a long period of loose monetary policy? That is

interesting. For the central bankers it's about how you do that without

causing too much of a shock to the market. Oil doesn't know if it up or

down, it's volatile at the moment. It has been volatile for oil at the

moment. One of the big movers has come out and said, the changes we

have seen in the US because the costs in production of shale

falling, we will look at oil trading in this tight band. We've seen it

trading in this $45 - $55 band for a long time. That's probably set to

continue, a bit up and down on a daily basis but we do appear to be

quite range bound. When it comes to investing it is all about timing and

not leaving it too late, it ties in with rumours about President Trump

at the G20 apparently struggling to get a hotel room. Have you ever left

it too late, for investment or otherwise? I'm a terrible investor

so I have definitely left it too late. I am a nervous traveller so I

booked my hotel and get to the airport at least a day in advance. I

know the feeling, having once missed a flight and the stress of that.

Richard, thank you very much. Richard Fletcher, there. Coming up

with a look at the mega trade deal between Europe and Japan and if free

trade is back on the global agenda. This is Business Life from the BBC.

The food delivery firm Deliveroo has said it will pay sickness and injury

benefits to its 15,000 riders in the UK if the law is changed.

At the moment the firm says, the law prevents it from offering

enhanced rights because it classifies its riders

Let's get more from our business correspondent Theo Leggett.What

As you know Deliveroo is a company that takes restaurant food and

delivers it direct to customers. It uses a network of cyclists and

mopeds and riders mainly to deliver the food and they work flexibly. So

they can work when they want, log on, get jobs to them and work for

other people as well. As a result Deliveroo classifies them as

self-employed. So they are not eligible for holiday pay and

sickness benefit. What Deliveroo has done, is, in submission to the

government which is reviewing how employment law works with regards to

the gig economy, it says if the category of workers is changed it

might be prepared to offer more benefits than it currently gets. Why

is there an issue with the current law. It hasn't kept up with the way

the economy has changed especially the development of the gig economy.

People who work on behalf of companies are either categorised as

self-employed, as workers or as employees. As we go up that scale

the number of benefits you are eligible for increases. A lot of

companies in the gig economy in particular want to give their

workers classified as self-employed because then they don't have to pay

National Insurance on behalf of those workers so they can operate

more cheaply. For the workers and offers flexibility although they

don't have those benefits. The gig economy is a great area. It doesn't

fit naturally -- a grey area. It doesn't fit in any of those

classifications. So the law is being looked at to see if these workers

cannot be exploited and at the same time give them the flexibility to

work in a way that they do. Thank you very much for that. Very

interesting story continuing with the gig economy which is becoming a

huge part the economy in the UK, with zero hours contracts, people

are starting to work out how to make it work both for the employer and

the employee. You can read more about that story on the business

page. You're watching Business

Live - our top story. The G20 summit gets under

way in Hamburg today. The meeting is expected to be

divisive, as world leaders discuss a wide range of issues -

including migration, A quick look at how

markets are faring. This is how they look at the start

of the trading day across Europe, all the main indices are down shade,

and the pound below the $1.30 mark. And now let's get the inside track

on this week's big financial stories including that mega deal

between Japan and the EU and the billionaire owner

of Newcastle football club's rather unusual meeting style --

Our business editor The main focus is on Trump and Putin

but keep an eye on trade and in particular this undercurrent of

whether the US. Imposing steel tariffs. There's a story about steel

and whiskey and orange juice. President Trump has been the big

defender of the US steel industry. He's already got tough with China

about some of their steel exports to the US. It looks as if he puts wider

tariffs on steel imports, people say this trade war could be starting and

other countries will get caught in the crossfire but we have seen

between the US and China. He's been looking into a particular section,

section 232 of an old act from the 1960s saying, you can reveal imports

if this national security interest. What he is trying to say is that

they use steel in defence. It hasn't been done often before so he's using

a strange and powerful instrument to maybe put the squeeze on foreign and

steel imports into the US. The other interesting thing about the meeting

of the leaders is not just the official group gathering but what is

happening on the sidelines, we saw yesterday the meeting between EU

leaders in Japan talking about this deal that they have reached. If you

look at the backlash around the world, it seems against the odds.

The Japan deal is interesting because for one thing it did not

take a long time to do, they've been negotiating it since 2013. It will

also put out of joint analysis of French auto makers, exports of cars,

a tariff of 10% on that, for the Europeans, agricultural products, a

lot of beef is consumed in Japan, what is interesting in a Brexit

context, there seems to have been this move against free trade, a big

blockbuster deal. At the same time you see the UK is leaving the EU and

some say this is leaving precisely at the moment when they have their

mojo and their schools together on trading. Others say, people like

Japan want to do deals with important economies, the UK is one

of them and this could be a bit of a blueprint for a deal between the UK

and Japan. Speaking of the T20 another meeting is also happening in

the weekend in the UK. Business leaders are going to the Foreign

Secretary 's residence to meet with the government. Business leaders

felt they had been frozen out of the political process, their hopes and

fears about Brexit were not being listened to. And just last might the

CBI said, what we want to do is running out, we are never going to

get a trade deal done in the time available until March 20 19. What we

should do now is say early until we get a full trade steel, and it is

enforced we should stay in the single market and in the customs

union. People on the other side of the debate say this sounds like

Hotel California, you can check out any time you like but you can never

leave because this will go on for years! With spoken before about

Sports Direct. Interesting revelations. Real caucus! Sports

Direct is run by the maverick entrepreneur, Mike Ashley. He

founded this company and did fantastically well. They floated

some shares. He runs it with an iron fist and owns 70% of the shares. He

calls the shots and it turns out he also buys the shots! He had a big

boozy meeting where he drank 12 pints of lager punctuated by vodka

chasers. Apparently he drew up into the fireplace. The case in the court

at the moment is that on one of these boozy nights he said to one

investment banker, if you can double the share price give you ?15

million. It did happen and now he said it was nothing more than

banter. The other guy said, no we have a proper understanding. Very

amusing story. It's well worth the read. My Twitter question,

apparently Donald Trump had trouble finding a hotel room at the G20

because he left it too late to book. I went to the Frankfurt motor show

and ended up staying in, it was more like a monastery cell, it was like a

monastic cell. When you go to one of these big trade conventions like

Frankfurt motor show or the G20 the best hotels are booked. If you know

journalists, we go at the whim of the editor and by the time you get

there only the greatest rooms are available. And he's still got there

and did the job. -- the greatest rooms. That's it from Business Live

today. There will be more business news

throughout the day on the BBC Live webpage and on World Business

Report. We will be back on Monday, we will

see you then.