11/07/2017

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:00:00. > :00:10.This is Business Live from BBC News with Ben Bland and Rachel Horne.

:00:11. > :00:13.Getting the gig - the UK Government review calls for better pay

:00:14. > :00:15.and conditions for the millions of people working

:00:16. > :00:34.Live from London, that's our top story on Tuesday, the 11th of July.

:00:35. > :00:37.The Taylor review says there must be a focus on delivering quality

:00:38. > :00:41.as well as quantity when it comes to work in the modern economy.

:00:42. > :00:47.Air India takes meat off the menu for most of its passengers

:00:48. > :00:50.as the country's top court considers a ban on selling cattle

:00:51. > :01:03.On money markets and equities, here are how the European indices look at

:01:04. > :01:06.the start of the day. All of them slightly into positive territory. We

:01:07. > :01:11.will look at the Asian markets and also we will look ahead to Wall

:01:12. > :01:16.Street. Flying around the world at someone else's expands might seem

:01:17. > :01:20.like fun, but is business travel all it is cracked up to be? One man

:01:21. > :01:27.trying to get companies to part with their cash. Scientists tell us our

:01:28. > :01:32.desire to drink more coffee makes us live longer. How do you drink yours?

:01:33. > :01:44.I like and Americana with extra hot milk. Just tell us on Twitter. Extra

:01:45. > :01:50.strong lotto for me. You have been sharing yours. We will share those

:01:51. > :01:54.with you later. A very warm welcome to Business Live. The world of work

:01:55. > :01:59.is changing but the question is, can employment and tax law keep up? In

:02:00. > :02:02.the UK Government review was calling for workers in the so-called gig

:02:03. > :02:10.economy to get new rights, they are talking about people who take

:02:11. > :02:18.short-term jobs, things like driving for Uber. It can offer flexibility

:02:19. > :02:21.but it often means lower pay and poor conditions. The Taylor review

:02:22. > :02:27.says there should be a new category of worker, a dependent contractor.

:02:28. > :02:33.They would get some form of minimum wage and six play. This is relevant

:02:34. > :02:39.to more people around the world. -- sick pay. Across the European Union

:02:40. > :02:45.and the US, 20-30% of people are involved in the so-called gig

:02:46. > :02:49.economy. As many as 162 million people around the world. For almost

:02:50. > :02:53.half of them, it is their primary source of income. The rights they

:02:54. > :02:58.get make a big difference. The European Union is currently looking

:02:59. > :03:01.at how it can make sure the gig economy workers can get similar

:03:02. > :03:06.social protections such as out of work benefits and employment

:03:07. > :03:10.services like training, as those who do traditional jobs. In the world's

:03:11. > :03:16.biggest economy, the US, two Senators have proposed portable

:03:17. > :03:19.benefits including paid leave and unemployment insurance that would

:03:20. > :03:25.move with individuals as they move across different jobs. Here is the

:03:26. > :03:30.author of the day's report, Matthew Taylor. In my view, there is too

:03:31. > :03:34.much work at the bottom end of the labour market that is not of a high

:03:35. > :03:37.enough quality, too many people are not having their rights respected

:03:38. > :03:41.and they are treated at work like they are cogs in a machine rather

:03:42. > :03:45.than being human beings and there are too many people who do not see a

:03:46. > :03:48.route from their current job to progress and earn more and do

:03:49. > :03:52.better. I think we can improve all of that if we put our minds to it.

:03:53. > :03:57.The report will start the process but all of us in society, we have a

:03:58. > :03:59.role in getting good work for everybody. That was Matthew Taylor

:04:00. > :04:09.who wrote the review. What Matthew Taylor has said is not

:04:10. > :04:13.anything of a surprise. We have had a number of tribunal is in the UK

:04:14. > :04:17.where it has been judged lots of the people workers and they are entitled

:04:18. > :04:21.to holiday and sick pay. Is there a feeling he could have gone farther?

:04:22. > :04:26.The unions think he could have gone further. He did not recommend

:04:27. > :04:31.banning what are called zero hours contracts, contracts where workers

:04:32. > :04:37.are not guaranteed any hours of work in a given period. He has not said

:04:38. > :04:40.the minimum wage has to be guaranteed by firms working in the

:04:41. > :04:46.gig economy. What they will have to do is prove that an average person

:04:47. > :04:54.working in an average hour could earn up to 1.2 times the minimum

:04:55. > :04:58.wage. There is a body of opinion that believes he could go further

:04:59. > :05:01.but what he is trying to do which is the important thing is look at the

:05:02. > :05:07.fundamental change in how we work and that goes down to not just how

:05:08. > :05:09.people are treated and benefits, but also how productive they are and how

:05:10. > :05:14.much wealth they create with the economy which is vital and how the

:05:15. > :05:18.firms operate. It has quite an interesting echo of the arguments we

:05:19. > :05:23.have had around Google and Facebook and how they pay tax. The new gig

:05:24. > :05:27.economy digital phones, how they work in a world where the law was

:05:28. > :05:32.built for a different era. The laws were built up after the Second World

:05:33. > :05:36.War in Britain to deal with a nine to five culture, we have an

:05:37. > :05:39.employer, we go home. This is the New World and I think Matthew Taylor

:05:40. > :05:44.has made a substantial effort to understand the New World and give

:05:45. > :05:47.new models about how it would work. Some of the firms in question will

:05:48. > :05:50.be slightly concerned by this because it would mean things like

:05:51. > :05:56.National Insurance contributions which they currently do not have to

:05:57. > :06:02.pay. That is about the tax system catching up with the new ways of

:06:03. > :06:06.working. In the UK, if these workers are categorised as self-employed,

:06:07. > :06:10.that means the company that employs them does not pay National Insurance

:06:11. > :06:15.and that is a big tax that is used for health care and pensions in the

:06:16. > :06:19.UK. And he is saying they should start playing those kind of taxes.

:06:20. > :06:23.That is good for the Exchequer in the UK, it means they may get more

:06:24. > :06:28.money in the future, but the big challenge for Britain is what will

:06:29. > :06:33.actually happen. We have a minority government, a government that relies

:06:34. > :06:38.on other parties. Will any of this get past? The danger is this report

:06:39. > :06:42.sits on the desk either the shelf and people forget about it. That

:06:43. > :06:48.will be the big challenge now, Wilbur Government be able to do

:06:49. > :06:50.anything? Thank you for that. How do you take your coffee? Hot tomato.

:06:51. > :07:00.Excellent choice. -- hot latte. And you can read more about workers

:07:01. > :07:03.rights in the gig economy on Kamal blog which is available on the BBC

:07:04. > :07:06.News website and via Let's take a look at some of

:07:07. > :07:15.the other stories making the news. Mark Karpeles, the boss of the now

:07:16. > :07:18.defunct Bitcoin exchange, Mount Gox, has pleaded not guilty to charges

:07:19. > :07:20.of embezzlement and Mount Gox was at one

:07:21. > :07:23.point the world's largest Bitcoin trading platform,

:07:24. > :07:26.but it filed for bankruptcy in 2014 after losing half a billion dollars

:07:27. > :07:28.worth of the digital currency. Prosecutors claim that Mr Karpeles

:07:29. > :07:31.used the exchange to siphon funds Australia's Prime Minister Malcolm

:07:32. > :07:34.Turnbull says he is keen to secure a trade deal with the UK

:07:35. > :07:37."as quickly as possible" once Mr Turnbull said he hoped the UK

:07:38. > :07:42.could secure a Brexit deal before Shares in Snapchat's parent company

:07:43. > :07:51.Snap have fallen below their initial public offering price

:07:52. > :07:53.for the very first time. Analysts have expressed

:07:54. > :07:55.their concern that the image sharing website is struggling to compete

:07:56. > :07:57.with rival social media platforms Snapchat debuted on the New York

:07:58. > :08:02.Stock Exchange in March Let's take you to India

:08:03. > :08:09.where the country's highest court has ordered the government

:08:10. > :08:12.to delay its ban on selling cattle Critics argue it's blocking free

:08:13. > :08:19.trade in an industry Meanwhile, the country's flagship

:08:20. > :08:25.airline Air India says it won't serve meat to passengers

:08:26. > :08:35.in economy class. Let us start with the court story

:08:36. > :08:39.happening today, what are we expecting to hear? The court has

:08:40. > :08:44.passed an order save the government cannot implement the proposed law.

:08:45. > :08:48.The law says the government wants to ban the sale of cattle for

:08:49. > :08:56.slaughter, including all animals, cows, buffaloes. Bearing in mind, in

:08:57. > :09:01.India, Mehdi states do not low cal slaughter -- many states do not

:09:02. > :09:06.allow the slaughter of carols. Some states allow them to go ahead with

:09:07. > :09:10.slaughter. The court is saying there is a lot of opposition, it will

:09:11. > :09:14.affect livelihoods and also people's freedom to choose what they want to

:09:15. > :09:18.eat. The government has said they will look at the rules again, talk

:09:19. > :09:22.to the stakeholders, amend the rules and come back to the court in a few

:09:23. > :09:27.months. The law will not be implemented in the coming months. It

:09:28. > :09:32.would have affected business in a big way because India was a large

:09:33. > :09:38.exporter of beef, the buffalo meat. Last year it exported $4 billion of

:09:39. > :09:42.beef from India. If it is implemented, it will have a fairly

:09:43. > :09:47.big impact on business, the meat and leather industries, but we are also

:09:48. > :09:54.hearing this move from Air India, tell us about that? Air India,

:09:55. > :10:02.earlier they had a rule where they would not serve non-vegetarian

:10:03. > :10:07.meals, meat, on flights that were under 90 minutes, but not they have

:10:08. > :10:11.implemented it on domestic flights. They say they are reducing costs

:10:12. > :10:15.because they have a huge debt, they are suffering because of huge

:10:16. > :10:19.losses. But many people say that given the whole controversy around

:10:20. > :10:24.meat, probably the timing was not right. Air India saying it has

:10:25. > :10:30.nothing to do with politics, purely business why they are not keeping

:10:31. > :10:34.meat on their plates. Critics say it will not help them on saving costs

:10:35. > :10:38.to a great extent. -- on their planes. Thank you. Let us have a

:10:39. > :10:41.look at the markets... Asian shares extended gains

:10:42. > :10:43.on Tuesday and the dollar notched a four-month high against the yen,

:10:44. > :10:46.as investors awaited testimony from Federal Reserve Chair Janet Yellen

:10:47. > :10:49.for clues on when the central bank The stronger dollar

:10:50. > :10:52.against the yen helps Japanese exporters their shares drove

:10:53. > :11:03.the Nikkei higher. Frankfurt and Paris, slightly

:11:04. > :11:08.outperforming London. On currency markets, the pound

:11:09. > :11:11.is down against the US Dollar. Figures show the challenges facing

:11:12. > :11:14.the British economy. Households spent more on food

:11:15. > :11:16.and other essentials but held back on less urgent purchases

:11:17. > :11:18.as prices rise. Crude oil prices extended gains

:11:19. > :11:20.they made overnight, that's despite an increase

:11:21. > :11:23.in drilling activity in the US, which could add to the excess

:11:24. > :11:27.supply around the world. Let us take a look ahead at what may

:11:28. > :11:34.be happening in the US. And Michelle Fleury has

:11:35. > :11:36.the details about what's ahead Pepsico shares outperforming,

:11:37. > :11:46.takeover target, margins. But will it last? Part of what has

:11:47. > :11:55.been driving the stock higher is speculation that Pepsi might be a

:11:56. > :11:59.takeover target for the likes of Kraft Heinz. Investors have also

:12:00. > :12:04.rewarded the company for boosting revenue, despite a decline in

:12:05. > :12:10.volume. The owner has been very successful at raising prices to

:12:11. > :12:15.offset a drop in sales. But some on Wall Street question how sustainable

:12:16. > :12:18.it is. Back in April, the company warned margins would be under

:12:19. > :12:25.pressure from higher commodity prices. Analysts are looking for

:12:26. > :12:31.revenue that pops $15 billion. Joining us now is the chief market

:12:32. > :12:35.analyst, thank you for coming in. This is a point when you get to blow

:12:36. > :12:42.your own trumpet a bit because we had you on the programme talking

:12:43. > :12:47.about Snap when they floated, they were floating $17. You said... I

:12:48. > :12:50.said we would probably see an initial pop but I was sceptical

:12:51. > :12:53.about the long-term prospects for this company simply because they

:12:54. > :13:01.have not made a profit and they continued to, despite increasing

:13:02. > :13:06.revenues, lose more money. You were right! Looking at the share price

:13:07. > :13:11.performance, I think the big question is, will they be the new

:13:12. > :13:18.Facebook or Twitter? Unfortunately for Snap, they are up against

:13:19. > :13:22.Facebook and the Instagram stories which is very replicable ultimately

:13:23. > :13:27.and Facebook has a head start. One of the other things about Snap is

:13:28. > :13:30.the shareholder structure, no voting rights. If you are looking at

:13:31. > :13:36.Snapchat and the prospects for growth, I do not see where they are

:13:37. > :13:41.justified $25 billion valuation and I think and I fear it could end up

:13:42. > :13:45.like putter. Speaking about predictions, people will be watching

:13:46. > :13:50.Janet's testimony very closely to try to make predictions about the US

:13:51. > :13:55.Federal reserve's pace of interest rate rises. How is that affecting

:13:56. > :13:58.Snapchat markets and currencies in particular? Bond yields in

:13:59. > :14:02.particular are being affected by that. Two weeks ago, she made a bold

:14:03. > :14:07.prediction and you said we would never see another financial crisis

:14:08. > :14:11.in her lifetime. She may be 70, but Paul Volcker is 90. She has

:14:12. > :14:16.potentially at least another 20 years and given the build up of debt

:14:17. > :14:19.over the last ten years, I am sceptical about that. What we are

:14:20. > :14:27.seeing in bond markets over the last two weeks, a significant increase in

:14:28. > :14:31.yields in the US, Germany and the UK as central banks slightly changed

:14:32. > :14:36.tack as to what they can do with future monetary policy. If that gets

:14:37. > :14:39.out of control, we could see further pressure on emerging market

:14:40. > :14:43.economies but also over leveraged companies with respect to debt

:14:44. > :14:55.costs. Thank you. How do you take your coffee? I like a, not -- I like

:14:56. > :15:16.a latte, but not three a day! All of the boys like lattes.

:15:17. > :15:19.And in the last hour Marks and Spencer has revealed its first

:15:20. > :15:22.The second largest womenswear retailer in UK has had

:15:23. > :15:27.Andrew Walker joins us from the business

:15:28. > :15:38.It's an update on the progress of the Chief Executive Steve Rose'

:15:39. > :15:48.efforts at turning around the company. If you look at the share

:15:49. > :15:54.price, you can see why he felt that. This is a figure in the region of

:15:55. > :15:58.300-something. There were some gains in the intervening period but we are

:15:59. > :16:03.basically back to where we were five years ago. So he has initiated this

:16:04. > :16:07.turn around programme with plans to close as many as 60 stores,

:16:08. > :16:13.basically the mixed food and clothing stores, but also keeping

:16:14. > :16:18.open the company's offer and expanding that in the specialist

:16:19. > :16:26.food operations. Now, this update shows that like for like sales for

:16:27. > :16:32.the UK or revenue, was down 0.5%, particularly marked in clothing and

:16:33. > :16:36.home, down 1.2%. That was despite the fact that there was a small

:16:37. > :16:43.boost to sales coming from the way in which the timing of Easter fell.

:16:44. > :16:48.So some clear progress needed there. What do the figures tell us about

:16:49. > :16:56.progress in implementing the plans? On the face of it, they look a

:16:57. > :16:59.little disappointing. He says he is pleased with the progress and says

:17:00. > :17:04.they are on track with the delivery. Pleased to note there was a growth

:17:05. > :17:12.in price sales in the clothing area, much less by way of discounted

:17:13. > :17:16.sales. If you were a shareholder, slightly less attractive if you are

:17:17. > :17:20.someone that shops there. That is an important part of the efforts to get

:17:21. > :17:24.the profits back up, to try to ensure that the greatest share in

:17:25. > :17:34.what they sell is done at the full ticket price. Andrew Walker thank

:17:35. > :17:44.you very much. There is loads on our business page. I'm going to pick out

:17:45. > :17:49.this story about the book publisher being sold to its joint venture

:17:50. > :18:07.partner in an effort to boost its finances.

:18:08. > :18:10.A quick look at how markets are faring.

:18:11. > :18:16.Business travel can seem like the most glamorous

:18:17. > :18:26.Seeing exotic places, experiencing foreign cultures,

:18:27. > :18:33.But the reality can be starkly different.

:18:34. > :18:38.Hours on cramped flights, lost luggage and lonely nights

:18:39. > :18:42.in foreign hotels can all take the shine off travelling for work.

:18:43. > :18:44.So what's it like trying to sell business travel

:18:45. > :18:48.Well our next guest knows a thing or two about this.

:18:49. > :18:50.He's the boss of Egencia. That's the business

:18:51. > :18:56.It's aimed at large and mid-sized companies and describes itself

:18:57. > :18:59.as the fifth biggest business travel firm in the world but faces a tough

:19:00. > :19:02.fight from 6 major competitors It's working to break into the Chinese

:19:03. > :19:05.market which is expected to grow by more than six per cent a year.

:19:06. > :19:09.We're joined by Rob Greyber, Global President of Egencia.

:19:10. > :19:14.Thank you very much for coming in. Thanks for having me. How has the

:19:15. > :19:18.business travel market changed in the last decade? It's changed

:19:19. > :19:22.dramatically and will continue to change. I think business travellers

:19:23. > :19:28.want things to be easier, cheaper and want them to be maybe a bit more

:19:29. > :19:33.fun, not champagnes and private jets but certainly easier. That's really

:19:34. > :19:36.where we come in. We are releasing a study showing 79% of business

:19:37. > :19:41.travellers really enjoy travelling for work. At the same time, it's a

:19:42. > :19:45.huge hassle and they want the hassles removed, that's where we can

:19:46. > :19:49.come in. The hassle comes from the policies, tools in place from

:19:50. > :19:54.companies that manage travel, that creates an opportunity for us. There

:19:55. > :19:58.are a couple of kinds of business trip. If you are in London, hop to

:19:59. > :20:07.Manchester, if you are in London, maybe hop over to New York. We have

:20:08. > :20:11.a detailed infantry of your past trips, so if there was an itinerary

:20:12. > :20:18.that worked for you to get back to your family on a Friday, there's a

:20:19. > :20:21.facility where you can just click. We can help you navigate foreign

:20:22. > :20:27.cities with the click of a button. At a time when everyone is much more

:20:28. > :20:30.money conscious, savings have to be made in many organisations, people

:20:31. > :20:33.can have meetings over video conferencing, they don't have to

:20:34. > :20:39.travel to be there in person, so what do you see as how you will meet

:20:40. > :20:45.that challenge of perhaps, are you seeing less demand maybe? No, in

:20:46. > :20:50.fact we are seeing more demand. If you look at the impact of video

:20:51. > :20:54.conferencing, it's the impact e-mail had on letters, so as much

:20:55. > :20:58.correspondence is going on, but it's going on in a virtual medium, so we

:20:59. > :21:01.are seeing the video conferencing market continue to grow alongside

:21:02. > :21:05.business travel and we think that will continue for a long time. How

:21:06. > :21:09.do you make your money? Are you taking money off the people who're

:21:10. > :21:16.booking or do companies pay you or is it kick backs from hotels? From a

:21:17. > :21:20.business model, you can think of the clients paying us commissions to

:21:21. > :21:30.participate, as do the suppliers. The real business model is in

:21:31. > :21:40.innovation, we think of ourselves as working as an innovation company. I

:21:41. > :21:46.am intrigued because Expedia is a well-known brand, so why does the

:21:47. > :21:54.business side have to be done differently? Part of it is unmanaged

:21:55. > :21:58.and a lot of the bookings go to Expedia and hotels.com and so forth,

:21:59. > :22:02.but half of it is managed where the CFO is dealing with different

:22:03. > :22:07.voices, one voice is saying from the employees, I want a great experience

:22:08. > :22:11.that looks, feels and works like Expedia. The other voice is the

:22:12. > :22:17.voice of corporate responsibility which says I need to manage cost and

:22:18. > :22:22.policy, I need to take care of my employees. With Egencia, you don't

:22:23. > :22:26.have to do that. Do you want to get to first place in the market or are

:22:27. > :22:29.you happy where you are right now? We feel if we continue to build the

:22:30. > :22:34.best prok in the market we'll continue to gain market share as we

:22:35. > :22:38.have consistently year after year. When you travel, Rob, what is the

:22:39. > :22:42.key priority for you, what do you look for? It's the subject of the

:22:43. > :22:48.conversations we have had this morning, coffee. Really? ! When jet

:22:49. > :22:54.lagged, I get a couple of espressos and a workout. You had to get that

:22:55. > :23:06.in there, a workout? ! I did! Thank you very much. Thank you. The

:23:07. > :23:10.business live page is where you can stay ahead with the breaking news.

:23:11. > :23:13.We'll keep you up-to-date with the latest details with insight and

:23:14. > :23:18.analysis from the team of editors around the world. We want to hear

:23:19. > :23:28.from you too. Get involved on the BBC business live web page at

:23:29. > :23:32.BBC.com/business. You can find us on Facebook too. Business live on TV

:23:33. > :23:44.and online whenever you need to know.

:23:45. > :23:59.Our guest joins us again now. We are going to start with the story in the

:24:00. > :24:02.Financial Times. France are talking tax cuts and spending cuts. A year

:24:03. > :24:08.ago they had a socialist President and they were going completely the

:24:09. > :24:11.other way. When you compare it to the debate in the UK, it's a

:24:12. > :24:15.significant turn around. I think what it does speak to is the fact

:24:16. > :24:20.that France needs to get its spending under control and they need

:24:21. > :24:23.to do it at the same time as coming in under the excessive deficit

:24:24. > :24:28.procedure under European Union rules. That is going to be a big

:24:29. > :24:33.challenge for Emmanuel Macron and Edward Felipe in trying to walk that

:24:34. > :24:36.line. I think that is why they are talking about tax cuts coming next

:24:37. > :24:41.year or the year after while he tries to deal with the action. There

:24:42. > :24:46.are significant tax cuts. Do you think they can afford it? I don't

:24:47. > :24:49.think they can. I think you have got to bear in mind the vested

:24:50. > :24:54.interests, the opposition. When you look at Macron and how he came to

:24:55. > :24:58.power, he came to power on a mandate of 40% of the French electorate. A

:24:59. > :25:02.lot of people stayed away and didn't vote for him. He'll face opposition

:25:03. > :25:06.and it's how he deals that that will define his presidency.

:25:07. > :25:11.The telegraph adding nine minutes to your life every time you drink a cup

:25:12. > :25:17.of coffee. Masses of responses to this, asking people how they take...

:25:18. > :25:20.Only three minutes to yours! It's upsetting, another gender divide, I

:25:21. > :25:26.get three minutes, you get nine. Life isn't fair, is it? ! Thanks!

:25:27. > :25:31.Michael Wood says he likes it black and strong enough for the spoon to

:25:32. > :25:38.stand up on its own. Another says with some rum in it. Matt says Fair

:25:39. > :25:43.Trade and organic. Kathy said extra large, three creams, three sugars,

:25:44. > :25:48.but I'm not sure what the health implications are. Or you could talk

:25:49. > :25:53.about red wine. I like a cup of coffee, a glass of red wine and

:25:54. > :25:58.plain chocolate. At the same time? Not necessarily but probably the

:25:59. > :26:02.same day. Maybe wine at dinner followed by coffee and chocolate, an

:26:03. > :26:10.After Eight mint perhaps. Enjoy. Nice to see you. Bye.

:26:11. > :26:16.Some welcome rain in the forecast today for gardeners and growers

:26:17. > :26:19.thanks to the low pressure bringing a weather front in from the west. We

:26:20. > :26:21.have a trough over Scotland too,