11/07/2017 BBC Business Live

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

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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,