11/07/2017 BBC Business Live


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


Getting the gig - the UK Government review calls for better pay


and conditions for the millions of people working


Live from London, that's our top story on Tuesday, the 11th of July.


The Taylor review says there must be a focus on delivering quality


as well as quantity when it comes to work in the modern economy.


Air India takes meat off the menu for most of its passengers


as the country's top court considers a ban on selling cattle


On money markets and equities, here are how the European indices look at


the start of the day. All of them slightly into positive territory. We


will look at the Asian markets and also we will look ahead to Wall


Street. Flying around the world at someone else's expands might seem


like fun, but is business travel all it is cracked up to be? One man


trying to get companies to part with their cash. Scientists tell us our


desire to drink more coffee makes us live longer. How do you drink yours?


I like and Americana with extra hot milk. Just tell us on Twitter. Extra


strong lotto for me. You have been sharing yours. We will share those


with you later. A very warm welcome to Business Live. The world of work


is changing but the question is, can employment and tax law keep up? In


the UK Government review was calling for workers in the so-called gig


economy to get new rights, they are talking about people who take


short-term jobs, things like driving for Uber. It can offer flexibility


but it often means lower pay and poor conditions. The Taylor review


says there should be a new category of worker, a dependent contractor.


They would get some form of minimum wage and six play. This is relevant


to more people around the world. -- sick pay. Across the European Union


and the US, 20-30% of people are involved in the so-called gig


economy. As many as 162 million people around the world. For almost


half of them, it is their primary source of income. The rights they


get make a big difference. The European Union is currently looking


at how it can make sure the gig economy workers can get similar


social protections such as out of work benefits and employment


services like training, as those who do traditional jobs. In the world's


biggest economy, the US, two Senators have proposed portable


benefits including paid leave and unemployment insurance that would


move with individuals as they move across different jobs. Here is the


author of the day's report, Matthew Taylor. In my view, there is too


much work at the bottom end of the labour market that is not of a high


enough quality, too many people are not having their rights respected


and they are treated at work like they are cogs in a machine rather


than being human beings and there are too many people who do not see a


route from their current job to progress and earn more and do


better. I think we can improve all of that if we put our minds to it.


The report will start the process but all of us in society, we have a


role in getting good work for everybody. That was Matthew Taylor


who wrote the review. What Matthew Taylor has said is not


anything of a surprise. We have had a number of tribunal is in the UK


where it has been judged lots of the people workers and they are entitled


to holiday and sick pay. Is there a feeling he could have gone farther?


The unions think he could have gone further. He did not recommend


banning what are called zero hours contracts, contracts where workers


are not guaranteed any hours of work in a given period. He has not said


the minimum wage has to be guaranteed by firms working in the


gig economy. What they will have to do is prove that an average person


working in an average hour could earn up to 1.2 times the minimum


wage. There is a body of opinion that believes he could go further


but what he is trying to do which is the important thing is look at the


fundamental change in how we work and that goes down to not just how


people are treated and benefits, but also how productive they are and how


much wealth they create with the economy which is vital and how the


firms operate. It has quite an interesting echo of the arguments we


have had around Google and Facebook and how they pay tax. The new gig


economy digital phones, how they work in a world where the law was


built for a different era. The laws were built up after the Second World


War in Britain to deal with a nine to five culture, we have an


employer, we go home. This is the New World and I think Matthew Taylor


has made a substantial effort to understand the New World and give


new models about how it would work. Some of the firms in question will


be slightly concerned by this because it would mean things like


National Insurance contributions which they currently do not have to


pay. That is about the tax system catching up with the new ways of


working. In the UK, if these workers are categorised as self-employed,


that means the company that employs them does not pay National Insurance


and that is a big tax that is used for health care and pensions in the


UK. And he is saying they should start playing those kind of taxes.


That is good for the Exchequer in the UK, it means they may get more


money in the future, but the big challenge for Britain is what will


actually happen. We have a minority government, a government that relies


on other parties. Will any of this get past? The danger is this report


sits on the desk either the shelf and people forget about it. That


will be the big challenge now, Wilbur Government be able to do


anything? Thank you for that. How do you take your coffee? Hot tomato.


Excellent choice. -- hot latte. And you can read more about workers


rights in the gig economy on Kamal blog which is available on the BBC


News website and via Let's take a look at some of


the other stories making the news. Mark Karpeles, the boss of the now


defunct Bitcoin exchange, Mount Gox, has pleaded not guilty to charges


of embezzlement and Mount Gox was at one


point the world's largest Bitcoin trading platform,


but it filed for bankruptcy in 2014 after losing half a billion dollars


worth of the digital currency. Prosecutors claim that Mr Karpeles


used the exchange to siphon funds Australia's Prime Minister Malcolm


Turnbull says he is keen to secure a trade deal with the UK


"as quickly as possible" once Mr Turnbull said he hoped the UK


could secure a Brexit deal before Shares in Snapchat's parent company


Snap have fallen below their initial public offering price


for the very first time. Analysts have expressed


their concern that the image sharing website is struggling to compete


with rival social media platforms Snapchat debuted on the New York


Stock Exchange in March Let's take you to India


where the country's highest court has ordered the government


to delay its ban on selling cattle Critics argue it's blocking free


trade in an industry Meanwhile, the country's flagship


airline Air India says it won't serve meat to passengers


in economy class. Let us start with the court story


happening today, what are we expecting to hear? The court has


passed an order save the government cannot implement the proposed law.


The law says the government wants to ban the sale of cattle for


slaughter, including all animals, cows, buffaloes. Bearing in mind, in


India, Mehdi states do not low cal slaughter -- many states do not


allow the slaughter of carols. Some states allow them to go ahead with


slaughter. The court is saying there is a lot of opposition, it will


affect livelihoods and also people's freedom to choose what they want to


eat. The government has said they will look at the rules again, talk


to the stakeholders, amend the rules and come back to the court in a few


months. The law will not be implemented in the coming months. It


would have affected business in a big way because India was a large


exporter of beef, the buffalo meat. Last year it exported $4 billion of


beef from India. If it is implemented, it will have a fairly


big impact on business, the meat and leather industries, but we are also


hearing this move from Air India, tell us about that? Air India,


earlier they had a rule where they would not serve non-vegetarian


meals, meat, on flights that were under 90 minutes, but not they have


implemented it on domestic flights. They say they are reducing costs


because they have a huge debt, they are suffering because of huge


losses. But many people say that given the whole controversy around


meat, probably the timing was not right. Air India saying it has


nothing to do with politics, purely business why they are not keeping


meat on their plates. Critics say it will not help them on saving costs


to a great extent. -- on their planes. Thank you. Let us have a


look at the markets... Asian shares extended gains


on Tuesday and the dollar notched a four-month high against the yen,


as investors awaited testimony from Federal Reserve Chair Janet Yellen


for clues on when the central bank The stronger dollar


against the yen helps Japanese exporters their shares drove


the Nikkei higher. Frankfurt and Paris, slightly


outperforming London. On currency markets, the pound


is down against the US Dollar. Figures show the challenges facing


the British economy. Households spent more on food


and other essentials but held back on less urgent purchases


as prices rise. Crude oil prices extended gains


they made overnight, that's despite an increase


in drilling activity in the US, which could add to the excess


supply around the world. Let us take a look ahead at what may


be happening in the US. And Michelle Fleury has


the details about what's ahead Pepsico shares outperforming,


takeover target, margins. But will it last? Part of what has


been driving the stock higher is speculation that Pepsi might be a


takeover target for the likes of Kraft Heinz. Investors have also


rewarded the company for boosting revenue, despite a decline in


volume. The owner has been very successful at raising prices to


offset a drop in sales. But some on Wall Street question how sustainable


it is. Back in April, the company warned margins would be under


pressure from higher commodity prices. Analysts are looking for


revenue that pops $15 billion. Joining us now is the chief market


analyst, thank you for coming in. This is a point when you get to blow


your own trumpet a bit because we had you on the programme talking


about Snap when they floated, they were floating $17. You said... I


said we would probably see an initial pop but I was sceptical


about the long-term prospects for this company simply because they


have not made a profit and they continued to, despite increasing


revenues, lose more money. You were right! Looking at the share price


performance, I think the big question is, will they be the new


Facebook or Twitter? Unfortunately for Snap, they are up against


Facebook and the Instagram stories which is very replicable ultimately


and Facebook has a head start. One of the other things about Snap is


the shareholder structure, no voting rights. If you are looking at


Snapchat and the prospects for growth, I do not see where they are


justified $25 billion valuation and I think and I fear it could end up


like putter. Speaking about predictions, people will be watching


Janet's testimony very closely to try to make predictions about the US


Federal reserve's pace of interest rate rises. How is that affecting


Snapchat markets and currencies in particular? Bond yields in


particular are being affected by that. Two weeks ago, she made a bold


prediction and you said we would never see another financial crisis


in her lifetime. She may be 70, but Paul Volcker is 90. She has


potentially at least another 20 years and given the build up of debt


over the last ten years, I am sceptical about that. What we are


seeing in bond markets over the last two weeks, a significant increase in


yields in the US, Germany and the UK as central banks slightly changed


tack as to what they can do with future monetary policy. If that gets


out of control, we could see further pressure on emerging market


economies but also over leveraged companies with respect to debt


costs. Thank you. How do you take your coffee? I like a, not -- I like


a latte, but not three a day! All of the boys like lattes.


And in the last hour Marks and Spencer has revealed its first


The second largest womenswear retailer in UK has had


Andrew Walker joins us from the business


It's an update on the progress of the Chief Executive Steve Rose'


efforts at turning around the company. If you look at the share


price, you can see why he felt that. This is a figure in the region of


300-something. There were some gains in the intervening period but we are


basically back to where we were five years ago. So he has initiated this


turn around programme with plans to close as many as 60 stores,


basically the mixed food and clothing stores, but also keeping


open the company's offer and expanding that in the specialist


food operations. Now, this update shows that like for like sales for


the UK or revenue, was down 0.5%, particularly marked in clothing and


home, down 1.2%. That was despite the fact that there was a small


boost to sales coming from the way in which the timing of Easter fell.


So some clear progress needed there. What do the figures tell us about


progress in implementing the plans? On the face of it, they look a


little disappointing. He says he is pleased with the progress and says


they are on track with the delivery. Pleased to note there was a growth


in price sales in the clothing area, much less by way of discounted


sales. If you were a shareholder, slightly less attractive if you are


someone that shops there. That is an important part of the efforts to get


the profits back up, to try to ensure that the greatest share in


what they sell is done at the full ticket price. Andrew Walker thank


you very much. There is loads on our business page. I'm going to pick out


this story about the book publisher being sold to its joint venture


partner in an effort to boost its finances.


A quick look at how markets are faring.


Business travel can seem like the most glamorous


Seeing exotic places, experiencing foreign cultures,


But the reality can be starkly different.


Hours on cramped flights, lost luggage and lonely nights


in foreign hotels can all take the shine off travelling for work.


So what's it like trying to sell business travel


Well our next guest knows a thing or two about this.


He's the boss of Egencia. That's the business


It's aimed at large and mid-sized companies and describes itself


as the fifth biggest business travel firm in the world but faces a tough


fight from 6 major competitors It's working to break into the Chinese


market which is expected to grow by more than six per cent a year.


We're joined by Rob Greyber, Global President of Egencia.


Thank you very much for coming in. Thanks for having me. How has the


business travel market changed in the last decade? It's changed


dramatically and will continue to change. I think business travellers


want things to be easier, cheaper and want them to be maybe a bit more


fun, not champagnes and private jets but certainly easier. That's really


where we come in. We are releasing a study showing 79% of business


travellers really enjoy travelling for work. At the same time, it's a


huge hassle and they want the hassles removed, that's where we can


come in. The hassle comes from the policies, tools in place from


companies that manage travel, that creates an opportunity for us. There


are a couple of kinds of business trip. If you are in London, hop to


Manchester, if you are in London, maybe hop over to New York. We have


a detailed infantry of your past trips, so if there was an itinerary


that worked for you to get back to your family on a Friday, there's a


facility where you can just click. We can help you navigate foreign


cities with the click of a button. At a time when everyone is much more


money conscious, savings have to be made in many organisations, people


can have meetings over video conferencing, they don't have to


travel to be there in person, so what do you see as how you will meet


that challenge of perhaps, are you seeing less demand maybe? No, in


fact we are seeing more demand. If you look at the impact of video


conferencing, it's the impact e-mail had on letters, so as much


correspondence is going on, but it's going on in a virtual medium, so we


are seeing the video conferencing market continue to grow alongside


business travel and we think that will continue for a long time. How


do you make your money? Are you taking money off the people who're


booking or do companies pay you or is it kick backs from hotels? From a


business model, you can think of the clients paying us commissions to


participate, as do the suppliers. The real business model is in


innovation, we think of ourselves as working as an innovation company. I


am intrigued because Expedia is a well-known brand, so why does the


business side have to be done differently? Part of it is unmanaged


and a lot of the bookings go to Expedia and hotels.com and so forth,


but half of it is managed where the CFO is dealing with different


voices, one voice is saying from the employees, I want a great experience


that looks, feels and works like Expedia. The other voice is the


voice of corporate responsibility which says I need to manage cost and


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


have to do that. Do you want to get to first place in the market or are


you happy where you are right now? We feel if we continue to build the


best prok in the market we'll continue to gain market share as we


have consistently year after year. When you travel, Rob, what is the


key priority for you, what do you look for? It's the subject of the


conversations we have had this morning, coffee. Really? ! When jet


lagged, I get a couple of espressos and a workout. You had to get that


in there, a workout? ! I did! Thank you very much. Thank you. The


business live page is where you can stay ahead with the breaking news.


We'll keep you up-to-date with the latest details with insight and


analysis from the team of editors around the world. We want to hear


from you too. Get involved on the BBC business live web page at


BBC.com/business. You can find us on Facebook too. Business live on TV


and online whenever you need to know.


Our guest joins us again now. We are going to start with the story in the


Financial Times. France are talking tax cuts and spending cuts. A year


ago they had a socialist President and they were going completely the


other way. When you compare it to the debate in the UK, it's a


significant turn around. I think what it does speak to is the fact


that France needs to get its spending under control and they need


to do it at the same time as coming in under the excessive deficit


procedure under European Union rules. That is going to be a big


challenge for Emmanuel Macron and Edward Felipe in trying to walk that


line. I think that is why they are talking about tax cuts coming next


year or the year after while he tries to deal with the action. There


are significant tax cuts. Do you think they can afford it? I don't


think they can. I think you have got to bear in mind the vested


interests, the opposition. When you look at Macron and how he came to


power, he came to power on a mandate of 40% of the French electorate. A


lot of people stayed away and didn't vote for him. He'll face opposition


and it's how he deals that that will define his presidency.


The telegraph adding nine minutes to your life every time you drink a cup


of coffee. Masses of responses to this, asking people how they take...


Only three minutes to yours! It's upsetting, another gender divide, I


get three minutes, you get nine. Life isn't fair, is it? ! Thanks!


Michael Wood says he likes it black and strong enough for the spoon to


stand up on its own. Another says with some rum in it. Matt says Fair


Trade and organic. Kathy said extra large, three creams, three sugars,


but I'm not sure what the health implications are. Or you could talk


about red wine. I like a cup of coffee, a glass of red wine and


plain chocolate. At the same time? Not necessarily but probably the


same day. Maybe wine at dinner followed by coffee and chocolate, an


After Eight mint perhaps. Enjoy. Nice to see you. Bye.


Some welcome rain in the forecast today for gardeners and growers


thanks to the low pressure bringing a weather front in from the west. We


have a trough over Scotland too,


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