11/07/2017 BBC Business Live


11/07/2017

A look at the global business stories.


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

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

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and conditions for the millions of people working

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

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

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

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

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

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

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

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

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

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

:01:17.:01:20.

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

:01:21.:01:27.

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

:01:28.:01:32.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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social protections such as out of work benefits and employment

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

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biggest economy, the US, two Senators have proposed portable

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benefits including paid leave and unemployment insurance that would

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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banning what are called zero hours contracts, contracts where workers

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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be slightly concerned by this because it would mean things like

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National Insurance contributions which they currently do not have to

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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of embezzlement and Mount Gox was at one

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point the world's largest Bitcoin trading platform,

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

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worth of the digital currency. Prosecutors claim that Mr Karpeles

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

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

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

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

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Snap have fallen below their initial public offering price

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for the very first time. Analysts have expressed

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their concern that the image sharing website is struggling to compete

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with rival social media platforms Snapchat debuted on the New York

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Stock Exchange in March Let's take you to India

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where the country's highest court has ordered the government

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

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trade in an industry Meanwhile, the country's flagship

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

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in economy class. Let us start with the court story

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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look at the markets... Asian shares extended gains

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

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as investors awaited testimony from Federal Reserve Chair Janet Yellen

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for clues on when the central bank The stronger dollar

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against the yen helps Japanese exporters their shares drove

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the Nikkei higher. Frankfurt and Paris, slightly

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outperforming London. On currency markets, the pound

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

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the British economy. Households spent more on food

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and other essentials but held back on less urgent purchases

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as prices rise. Crude oil prices extended gains

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they made overnight, that's despite an increase

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

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

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be happening in the US. And Michelle Fleury has

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the details about what's ahead Pepsico shares outperforming,

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

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

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

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rewarded the company for boosting revenue, despite a decline in

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

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

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

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pressure from higher commodity prices. Analysts are looking for

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

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

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

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

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

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

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

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

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

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

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Facebook and the Instagram stories which is very replicable ultimately

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

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

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

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

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like putter. Speaking about predictions, people will be watching

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

:13:46.:13:50.

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

:13:51.:13:55.

Snapchat markets and currencies in particular? Bond yields in

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

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prediction and you said we would never see another financial crisis

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

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

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

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

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

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

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

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economies but also over leveraged companies with respect to debt

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

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

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

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The second largest womenswear retailer in UK has had

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Andrew Walker joins us from the business

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

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

:15:39.:15:48.

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

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

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

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

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basically the mixed food and clothing stores, but also keeping

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

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

:16:19.:16:26.

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

:16:27.:16:32.

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

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

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

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

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

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

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

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

:17:13.:17:16.

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

:17:17.:17:20.

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

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

:17:25.:17:34.

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

:17:35.:17:44.

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

:17:45.:17:49.

partner in an effort to boost its finances.

:17:50.:18:07.

A quick look at how markets are faring.

:18:08.:18:10.

Business travel can seem like the most glamorous

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Seeing exotic places, experiencing foreign cultures,

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But the reality can be starkly different.

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Hours on cramped flights, lost luggage and lonely nights

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

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So what's it like trying to sell business travel

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

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

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

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

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

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

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

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

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

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dramatically and will continue to change. I think business travellers

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

:19:23.:19:28.

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

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

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

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

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

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

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

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

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

:20:08.:20:11.

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

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

:20:19.:20:21.

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

:20:22.:20:27.

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

:20:28.:20:30.

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

:20:31.:20:33.

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

:20:34.:20:39.

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

:20:40.:20:45.

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

:20:46.:20:50.

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

:20:51.:20:54.

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

:20:55.:20:58.

are seeing the video conferencing market continue to grow alongside

:20:59.:21:01.

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

:21:02.:21:05.

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

:21:06.:21:09.

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

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

:21:17.:21:20.

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

:21:21.:21:30.

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

:21:31.:21:40.

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

:21:41.:21:46.

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

:21:47.:21:54.

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

:21:55.:21:58.

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

:21:59.:22:02.

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

:22:03.:22:07.

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

:22:08.:22:11.

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

:22:12.:22:17.

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

:22:18.:22:22.

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

:22:23.:22:26.

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

:22:27.:22:29.

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

:22:30.:22:34.

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

:22:35.:22:38.

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

:22:39.:22:42.

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

:22:43.:22:48.

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

:22:49.:22:54.

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

:22:55.:23:06.

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

:23:07.:23:10.

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

:23:11.:23:13.

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

:23:14.:23:18.

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

:23:19.:23:28.

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

:23:29.:23:32.

and online whenever you need to know.

:23:33.:23:44.

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

:23:45.:23:59.

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

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

:24:03.:24:08.

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

:24:09.:24:11.

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

:24:12.:24:15.

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

:24:16.:24:20.

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

:24:21.:24:23.

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

:24:24.:24:28.

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

:24:29.:24:33.

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

:24:34.:24:36.

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

:24:37.:24:41.

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

:24:42.:24:46.

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

:24:47.:24:49.

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

:24:50.:24:54.

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

:24:55.:24:58.

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

:24:59.:25:02.

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

:25:03.:25:06.

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

:25:07.:25:11.

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

:25:12.:25:17.

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

:25:18.:25:20.

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

:25:21.:25:26.

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

:25:27.:25:31.

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

:25:32.:25:38.

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

:25:39.:25:43.

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

:25:44.:25:48.

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

:25:49.:25:53.

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

:25:54.:25:58.

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

:25:59.:26:02.

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

:26:03.:26:10.

Some welcome rain in the forecast today for gardeners and growers

:26:11.:26:16.

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

:26:17.:26:19.

have a trough over Scotland too,

:26:20.:26:21.