03/07/2014 World Business Report

peninsula. It is being seen as a strengthening of relations between

Beijing and Seoul. Now, it is time for World Business Report.

A lifeline for the low paid, or a drag on the economy? Germany set to

vote through a minimum wage after serious debate. Plus, from the

farmer's field straight to the dustbin, we look at India's food

waste problem. Welcome to World Business Report. Also in the

programme, a $230 billion trading relationship. We will also talk to

the implications of china's president, Xi Jinping, visiting

South Korea. First of all, is it a vital safety net and a boost for the

economy, or a recipe for uncompetitiveness? Arguments have

been fierce on both sides, but later today Germany is set to introduce a

national minimum wage in a bill that is expected to pass through

Parliament with a strong majority. It will be phased in from the

beginning of next year, and eventually benefit more than 5

million low`paid German workers. Let's have a quick look at some of

the figures. Germany's minimum wage will be reviewed every year, but it

will start at 8 euros 50 per hour. That is more generous than debt in

Britain, where it is ?6.31, or 7.91 euros per hour. That will go up in

the UK in October. It is a full euro lower than what you will get in

France, where the minimum wage at the moment is 9.53 euros per hour.

Let's speak to Steve Evans in Berlin. I assume the vast majority

of people in Germany are for this move? The opinion polls show large

majorities in favour, but if you ask people if they should go up, they

will say yes. The bigger argument will be whether it will hurt

Germany's competitiveness in the long run. What the unions say is

that it is still substantially lower than the going rate in many

industries, and that the industries that will benefit are not those

industries which trade competitively across borders. Hairdressing, for

example, is notoriously poorly paid in pretty well every country. It is

industries like security guards, and trade industries, that they say will

benefit. The argument on the other side is that any rise in wages in

one part of industry then moves through industry is everyone raises

their prices. The convocation to this argument is that there are lots

of people saying that German wages should go up anyway, just to

reinflate the economy. The eurozone economy still has very high

unemployment, and a bit of inflation wouldn't go amiss. It is a complex

argument that has played out, because the conversation in the

government has been split on this. Having said that, it will go through

Parliament. What our business leaders saying about this?

Presumably small and medium`size companies, this could be quite tough

to put this in place in their companies. Business leaders say what

they always say when there is a minimum wage. They set it in Britain

ten years ago, they say it will cost jobs, it will be anti`competitive.

The argument is always where you pitch it. If you pitch it so low it

is below the going rate, it will have no effect. If you pitch it very

high than it has a big effect. It will be phased in for some

industries, for example, and interns will be exempted, and also young

people starting out on their careers. Thank you very much indeed.

As we get news that going through Parliament in Germany, we will you.

Now, let's speak to Sharanjit Leyl. As you have heard, prime ministers

Xi Jinping has arrived in South Korea.

The economic relationship is crucial, likely to be very high on

the agenda. A huge business delegation is travelling with Xi

Jinping. This will elevate the crucial trade ties between Beijing

and Seoul, and a break with tradition in that he will be

visiting Seoul ahead of Zhong Yang. That highlights just how important

the business relationship is `` Pyongyang. He will attend a business

forum, where a huge business delegation is coming along, meeting

senior management from companies like Samsung and LG. They are also

likely to talk about a string of agreements, but direct training

between the currencies `` trading. That could boost trade ties between

the two countries. We know that trade between the countries tops

more than $270 billion, and foreign investment is about a quarter of

that, at around 57 billion. There are talks about a bilateral free

trade agreement, and they are said to be close to an agreement, but

analysts say it won't likely happen on this trip, because there are

sticking points, particularly in the agricultural sector.

Throughout the week, we have been highlighting the issue of food

waste, and what can be done to address it. Industrialised countries

waste roughly twice as much food as developing countries, but plenty of

food is still lost in those developing nations. Usually it is

because of a lack of proper storage and transport as foodies moved from

the farm to the market. This means losses for farmers and higher prices

for consumers. We look at what is being done to try to tackle this

problem. This is one of Asia's largest

wholesale markets. It is in the Indian capital. Truckloads of

produce a here every day to be auctioned and sold at the best

prices. This man has driven eight hours from a village in a

neighbouring state, bringing his harvest of potatoes. It is a long

trip that might earn him as much as $3000. But he says he has no other

choice. TRANSLATION: Once we harvest our vegetables, we just don't know

what to do with them. We need to sell them fast or they are just

going to rot. We don't have large markets in the village, so I have to

pay for them to be transported all the way to Delhi. More food is

brought here than ever before to feed India's hungry cities. But

conditions here haven't really changed in the last few decades.

This reflects one of the biggest threats to India's food security.

Improper storage means that nearly 14% of what the country produces

perishes before even reaching consumers. Despite being the world's

second`largest grower of fruits and vegetables, India throws away fresh

produce worth about $7 billion every year. This is one solution, India

has just over 6000 are still it is like this. `` facilities like this.

Only a fraction of what it actually needs. Providing technology for

climate controlled warehouses is proving to be a good business for

companies. The price of milk per litre potentially could go down by

20 to 40% if wastage was reduced. For fruit and vegetables, prices

could be halved potentially, so for a country, as I said earlier, of 1.2

billion people, if you can bring down pricing it is good for

everyone. India's inability to keep much of what it produces edible

means many are left hungry. Unless India invests in modern warehouses

and cool trucks, or perhaps tempting foreign retail giants to make the

investment for them, the problems of hunger and high food prices will

only get worse. Copper business stories, the European Central bank

is expected to take no new action when it meets today, after

announcing a raft of stimulus measures last month, including

cutting deposit interest rates to below zero. Investors will be

looking for any hints large`scale money printing or quantitive easing

could be the next step. Monthly payroll data out early in the US

because of the Independence Day holiday should show that they

created around 230,000 new jobs last month. That would be a fifth

straight month of good job gains above 200,000. It is the positive

sentiment about the US economy that has been boosting markets.

sentiment about the US economy that has The Dow and the SSP closed up.

The NHS in England may need an additional ?4 billion per year