23/06/2016 World Business Report

Now for the latest financial news with Sally and World Business

Back on the streets: Tens of thousands prepare to march

Is France putting big business before workers' rights,

China says it's deeply concerned about protectionism in the US steel

industry, fanning the flames of a growing trade row.

Also in the programme: Plugging into the smart home.

We get the latest from the Consumer Electronics Show

In Paris, trade unions are about to lead

tens of thousands of people in a march against proposed changes

It's just the latest in a string of strikes and demonstrations

President Hollande's government argues a shake-up is vital to make

France more competitive, but unions say the bill,

which will go to a vote in the senate next Wednesday,

France will keep its famous 35-hour working week,

Firms will be able to negotiate with local trade unions on more

or fewer hours from week to week, up to a maximum of 46 hours

The changes will also make it easier to lay off workers.

It's hoped companies will take on more people if they know they can

Employers will also be given more leeway to negotiate holidays

which is currently heavily regulated.

Proof that reform is needed, say its supporters,

France has an unemployment rate of over 10%.

That's more than double that of the UK and Germany.

Michel Martinez is chief Euro economist at Societe General.

Good morning and thanks for joining us. Another day of disruption in

Paris and in France. Just give us your take on how this is all being

handled. The last time they had strike action more than 1 million

people across France were protesting. I expect fewer

participants. Even the demonstrations work well for the

trade unions. I don't think they will step backwards. I think next

week the reform will pass through the Senate and Parliament. So that's

a reform that is heading in the right direction, in terms of

deregulating the market. As you just mentioned, there is one significant

change which is the decentralisation of the banking process at the

company level. -- bargaining process. Most of the bargaining

processes happen at the branch, sector or even national level and

with that reform, regarding the numbers of hours worked,

negotiations will be possible at the company level. That is a significant

change. That's the reason for which the tougher unions are against

reform because they are very powerful at the branch level, for

example in the refinery sector or the transportation sectors, and the

fear that they will lose the power... In practice this reform

will allow companies to depart from the 35 hours week. So that's a

reform that is heading in the right direction. Sorry to interrupt. I was

just going to ask you, because as you are explaining the reforms are

likely to take place next week but they are very watered down compared

to the original ideas to change the labour regulation in France. So will

they be effective in boosting the French economy, do you believe? We

don't believe that this reform will be a game changer. It won't go up to

6% like in other European economies. No. But we have to take this reform

as probably one of the first reforms in the labour market for a decade.

If you look at the reports via the main international organisations,

they say that the pension is France is now almost balanced. It took

French policymakers almost two decades to change the pension

reform. The way I see this reform is the first door that has been opened

and... But of course more will be needed. Regarding the

decentralisation of the bargaining process, it is possible negotiations

will happen at the company level. The next time will be able to deal

not only on the number of hours but also on the numbers of jobs, on the

restructuring of the company as well. All right. We appreciate your

time. Thank you. We will be keeping an eye on how things go today in

Paris and elsewhere in France. The last time protests occurred it all

got very nasty. Moving over to Asia. China's Commerce Ministry says

it is deeply concerned about protectionism

in the US steel sector. In a statement it blames the lack

of competitiveness in the US steel It's the latest blow in a growing

trade row between the two It is interesting. Almost like China

fighting back. It is. Of course many of China's critics would say it is

somewhat ironic, when most other global steel producers would

chastise China for pricing steel to cheaply and looking out for their

own interests. So it is China's commerce industry saying on their

website that the lack of competitiveness by the US steel

sector is a result of overprotection and that they should abide either

rules. But all of this of course comes after the US International

Trade Commission said on Wednesday it had found that imports of coal

products from China are hurting US producers and that's paving the way

for hefty anti- dumping duties, a tit-for-tat spat really. The US

Commerce Department had previously slapped Chinese steelmakers with

import duties of over 500% on some of the Chinese products. But we know

as well there's a huge collapse in prices globally. That is leading to

all of this. The shutting of competing mills around the world.

This is being blamed on Chinese overcapacity, the fact that they

produce too much steel. China is the world's biggest producer and

consumer of the metal and is rising production has come despite its own

attempts to cut capacity. Thank you so much. Squeezing in some other

stories. South Korean car maker Kia has

topped a US quality survey by auto It's the first time in 27 years

a non-luxury brand has The survey questioned over 80,000

drivers who'd bought a new car this year about problems

during their first 90 Kia came first, pushing last year's

winner Porsche into second place. The Smart minicar brand owned

by Daimler came bottom, Struggling smartphone maker

Blackberry reports first At its annual meeting on Wednesday,

boss John Chen promised to start making a profit from its hardware

division again this year. He's so far been unable to stem

a sharp decline in revenue or boost Blackberry was once the leading

smartphone maker before losing out A look at the markets. UK voters

will go to the polls in one hour and 20 minutes. For legal reasons today

broadcasters... I have lost my market board! For legal reasons we

can't discuss all of the reports on Mac UK referendum result. But let me

move the market boards on. You can see how the sterling is

trading. You can get a sense of how that is doing. A big Dane on the

Nikkei two to five, up 8%. -- gain. It has the brisk at the ring going

on. The possibility of 7000 jobs going. -- it has big restructuring.

Oil is about $50 a barrel. See you soon.

Three-quarters of LGBT people still feel the need to lie

about their sexuality or gender identity, according to new research