hello and welcome to business live. chinese president xijinping is in russia for talks with his counterpart vladimir putin today. trade is set to be top of the agenda ahead of the 620 meeting of global leaders later this month. the visit will be xi's sixth tour to russia since taking office in 2012. and their meetings seem to be bearing fruit — according to china, trade between the two increased by over 26% in the first four months of the year, reaching nearly $25 billion. cooperation is increasing too. russia will be a key component of china's ‘belt and road' initiative — an ambitious multi—trillion dollar project that will link europe and asia via the historic silk road. as part of the project — and as a symbol of this close relationship — beijing has even agreed to help finance a high speed rail link within russia itself: linking moscow to the city of kazan. joining me now is dr yujie, head of china foresight, at lse ideas. thank you for coming in to doctor us. thank you for coming in to doctor us. this is a charm offensive that just keeps going, because we have seen six of these meetings already, and not just russia, seen six of these meetings already, and notjust russia, but china forging links all around the world, to boost its profile, notjust economically but politically? that is exactly what china are trying to do, by using china's economic muscles and trying to extend the spheres of political influence over the world. as you just mentioned, the world. as you just mentioned, the road, including notjust rush about 68 member states allowed to join the initiative and russia is obviously big e member. if xi jinping would like success on this initiative —— obviously the biggest member. why is the initiative called the belt and roared initiative? the new selt road, the economic belt, and the road, which is the new economic silk, so there is a land route going through central asia, and end point would be venice, in italy. looking at the map, russia does not have to be part of this, does not have to be part of this, does it? the entire route could actually go south of russia. how important really is russia in this relationship, regarding the root? not relationship, regarding the root? n ot exa ctly relationship, regarding the root? not exactly economically, but i think it is more geopolitically that russia is vital, to have russian support in this case. russia, obviously the backyard is central asia, or it used to be, but now would like to win the hearts and minds —— now xijinping would like to win the hearts and minds. and it is essential for to win the hearts and minds. and it is essentialfor him, to win the hearts and minds. and it is essential for him, for himself. politically, is this a kind of centring of powers as a hedge against the powers, the partnership between the usa and europe, a kind of china and russia relationship?” wouldn't say it is hedging necessarily. i think it is partially because the diplomatic language. when the rest speak of russia it tends to be much harsher, whereas the chinese offers more toned down language towards russia is what china is trying to do is gather more and more powers and a balance towards the united states. doctor yu jie, who do you think is in the driving seat in this relationship? it depends on what you look at. certainly economically china is the driving seat here, but i think in the political sphere both china and russia play an equal part. doctor yu jie, thank you very much for speaking to us. doctor yu jie from lse ideas. let's take a look at some of the other news stories today. china has for the first time given foreign investors access to its bond market — a $9 trillion trading system which is the third largest in the world. the scheme, which offers investors access via hong kong, got off to a busy start, with nearly $300 million‘ worth of bonds purchased in the first 20 minutes of trading. iran says the french energy giant, total, is to sign a contract worth almost $5 billion to develop an offshore gas field. it's iran's biggest foreign deal since most economic sanctions against the country were lifted last year. total said it had planned to sign the contract several months ago, but had decided to wait and see if the trump administration would re—impose sanctions on tehran. india introduced a landmark reform to its tax system over the weekend. the "goods and services tax" replaces hundreds of individual state—based levies, and is expected to transform the nation of 1.2 billion people and its $2 trillion economy into a single market. looking at some of the stories in newspapers... japan's second biggest bank is setting up a new branch to ensure it can continue offering disruption to clients with no disruption to clients with no disruption was the uk leave the eu. and the bank said it would expand its office in london to achieve greater flexibility. so its office in london to achieve greaterflexibility. so putting a footin greaterflexibility. so putting a foot in both camps. samsung is to salvage parts from its catastrophic to make a new phone for the south korean market. leisha santorelli is in singapore. this new phone, will it inspire confidence if it is made from parts that blew up? well, just going on social media it is getting mocked online already, but that is not the aim of samsun with the new release. they have brought the galaxy note 7, famous for its exploding batteries, back from the grave, but in south korea it is being called the fan edition. samsung says 400,000 pieces will hit stores on friday costing around 610 us dollars, about 30% cheaper than the original as you mentioned it will be made up of unused parts from the recall to which was axed because of these faulty batteries. almost 3 million handsets in total have been recalled, costing samsung billions of dollars. it is possible selling these refurbished phones is one way samsung is looking to soften the financial blow. they are also looking to minimise the environmental impact of that big recall, so instead of throwing the phones away they will reuse parts of it. most importantly for consumers, i think they are looking to see that this new phone will have a safer battery. samsung says it does and that the battery will be smaller as well, so we willjust have to see what the demand is when it goes on sale on friday. leisha, thanks very much for that. let's have a look at the markets. this is the asian market overnight. although deemed reasonably positive. the hang seng and the dow numbers here. the nikki is up one tenth, and a similar amount up here in the trading system. the nikkei up largely on the back of reasonably good economic figures out of japan, back of reasonably good economic figures out ofjapan, but back of reasonably good economic figures out of japan, but looking forward to the week ahead, michelle has the details about wall street's future. americans celebrate independence day on tuesday, so while the us markets may be open for a shortened trading session this monday, or will they be choosing to stay on? plenty of economic data to digesterfor stay on? plenty of economic data to digester for those heading stay on? plenty of economic data to digesterfor those heading into the office. early estimates on car figures suggest an annual rate of 16.6 million vehicles sold. given if there is an important element of consumer spending, investors will look at the details for any evidence the us economy may be running out of stea m. the us economy may be running out of steam. for a snapshot of the manufacturing sector, the institute for supply management has released its figures forjune. it is expected to have increased to a reading of 55.1 from 54.9 in may. that was michelle in new york where the —— well the european markets have opened half a percent up. kathleen brooks from city index is here. we will talk about more normal market at the minute but first let's talk about is opening up of the bond market in china. how significant is this? certainly it is a step towards financial normalisation, i suppose. china's bond markets or trillion. it is no small chunk of change —— they are multitrillion. it is interesting because some fund managers that might hold off, the met control our pension funds, for example, and they could start investing in bonds in china for the first time. haven't they been a bit worried about debt in china for the last year and so?l good point. this concern about the debt bubble. however opening things up debt bubble. however opening things up to the debt markets can sometimes allow more scrutiny. fund managers have strong vetting process in place before they invest. so companies that are not perhaps selling the best kind of debt, supply and demand will mean people will not buy it. let's talk about what has been happening today. we have seen european markets rise slightly. the financial is not doing too badly at the moment, but we also have today fourformer the moment, but we also have today four former barclays executives in court. do you think this will have any impact on share prices in the medium to longer term for barclays, for example? we don't think so, certainly not of the share price. ba rclays have suffered certainly not of the share price. barclays have suffered in other ways, for example, their book value, how much essentially investors want to own ba rclays. how much essentially investors want to own barclays. and there is a big discount to that, so people are saying, they are kind of... they have been avoiding barclays during this whole process but forgetting to court stage is almost the last steps we would expect some financials to do quite well now including barclays and actually for them to ignore the actual outcome. we have had a lot of scrutiny, this case has been building upfor scrutiny, this case has been building up for over five years, so 110w building up for over five years, so now the horse has bolted, if you. potentially if there is no other regulatory concerns in the way... we have seen the regulatory glare turned more towards tech than financials which could be good news for financials down the line. kathleen brooks, as usual, thanks very much for that update on the markets. thank you. still to come... science fiction becoming science fa ct. science fiction becoming science fact. we will be looking at how augmented reality could be coming to augmented reality could be coming to a business near you in the not too distant future, if it is not there already. you watching business live from bbc news. borisjohnson has become the latest senior cabinet minister to put the chancellor and the —— to put pressure on the chancellor and prime minister to end the public sector pay cap. sources close to the foreign secretary made it clear that he wants better pay for public service workers. theo leggett is in our business newsroom — what's the row about? leggett is in our business newsroom - what's the row about? policy introduced when george osborne was chancellor and maintained under philip hammond has been to keep the cap on public sector pay, part of the austerity measures designed to reduce the budget deficit, reduce spending. since 2012 annual rises in public sector pay have effectively been capped at 1% for millions of workers. for that there was a pay freeze as well. the problem is no we are in an era of rising inflation, at 2.9% at the moment, —— now we are in an era of rising inflation. in the wake of the election result, the government is pretty well aware this is an unpopular policy, and so we have this line up of senior ministers, michael gove, jeremy hunt, boris johnson, ministers, michael gove, jeremy hunt, borisjohnson, or suggesting 110w hunt, borisjohnson, or suggesting now is the time to relax this policy and let public sector workers have a little more. if they manage to do that, it is more pay for everybody, how can they afford it? everything has a price, doesn't it? the options are you could increase taxes, and thatis are you could increase taxes, and that is one way potentially of increasing revenue, but there are problems with that. if tax rises are two great it can dampen economic growth and you end up taking in less tax than you started with. it is also politically quite unpopular. the government could borrow more and finance its spending that way, but that goes against a flagship conservative party policy which is to reduce the budget deficit, ridgers overspending. so that is a couple of ways, or it could just cut back on other government programmes. we are talking about a very significant amount of money here. the institute for physical studies is lose the figures that were, the political price, and again people don't like to see cuts. theo, thank you very much our top story; chinese president xi jinping is in russia for talks with his counterpart vladimir putin. trade is set to be top of the agenda ahead of the g20 meeting of global leaders later this week. the conservative manifesto was absent from the queen's speech. a quick look at how markets are faring. now let's get the inside track on augmented reality; it's growing technology where computer—generated images can be superimposed onto a view of the real world. some estimates say the industry could be worth around $120 billion by 2022. our next guest daqri has been using this technology in industrial settings like oil rigs, water treatment plants and construction sites. users wear a special helmet that allows them to view a piece of machinery such as an oil pipe which has an engineering diagram or flowchart laid over the top. with us here is brian mullins, founder and ceo of daqri. you have brought the helmet and smart glasses with you. we should try them on. unfortunately, we haven't got the software so we can't show you what the image looks like but we can show you what we look like! there we are. the whole idea is there. my head is too big. i tried on the glasses earlier and i couldn't get them on at all! there we go, look. is it meant to go up like that? yes. many various diagrams will arrive in front of your eyes? yes, that is right. you can take them to work with you and you can see really complicated instructions boiled down in front of you in 3d and it can help you learn faster and remain more. one of the most interesting things about augmented reality, although it talks augmented reality, although it talks a lot today about the context of consumers in enterprise, it's already here today. so what applications are you using it for at the moment, which companies are you working with and how is it being used? customers are using it in the field today to service very complex and expensive equipment like gas turbines and power plants, wind turbines and power plants, wind turbines and power plants, wind turbines and energy. places where workers have to go out in the field and have to know how to understand and have to know how to understand and service and keep running very complex equipment. how much does this thing cost that i couldn't get on to my head? so the prices are usually part of larger package with channel partners. you could expect to pay list price of $10,000 and that allows a worker though to do more in those environments than they could possibly do before. in fact, the economics often pay for themselves very quickly when an expert in austria no longer has to get on a plane, two to brazil and service a piece of equipment. what interests me about this is, you buy the kit and software, but are there then ongoing costs as you keep the programme going on, and i assume that's what could be good for you? pa rt that's what could be good for you? part of our business model is helping customers to do what they do better. we have worked with companies like siemens and case studies we have done together shows drastic reductions in the time it ta kes for drastic reductions in the time it takes for workers to learn activities that may have taken four 01’ activities that may have taken four or five hours to learn in the past can be done in less than 40 minutes. so you know that? we have a study that we published with multiple workers specifically in the context ofa workers specifically in the context of a power plan. other companies and universities like iowa state have published independent research that shows that workers can learn faster, retain more and reduce the time it ta kes to retain more and reduce the time it takes to learn by over 90% and... 90%? that's right. and have a significant impact on the way that workers can move throughout their career. it's a very competitive market place isn't it. you have google and other big tech firms launching all of their own brands. won't you get swallowed up? it's a competitive space. we see augmented reality is not a one—size—fits—all application. a loft what we do, whether in a helmet or in your glasses, is about helping ar to adapt to the business needs of customers. 0ne adapt to the business needs of customers. one of our fastest growing applications is augmented reality for automobiles where our partnership with jaguar land rover has our technology on the road in hundreds of thousands of vehicles today. that's probably where consumers will see augmented reality first. thank you very much indeed. do you want to try this on? i've already done that in the green room! they didn't fit me! now it's time for the latest in our ceo secrets series. a lot of successful bosses started out very young, forging businesses while still in university or high school. that's right, but the ceo of icoolkids takes things to a whole new level.jenk 0z is just 12 years old but he first came up with the idea when he was, wait for it, just eight. the most important thing is to form what i call an idea board of directors. this is about five to six people who have varying different backgrounds and different life experiences. they have to be great listeners, completely impartial. i think you should always have someone who is adult and always have at least one person who is a bitter younger than you and help you expand on your ideas that you already have and having someone to tell you who is good and could possibly go wrong. you keep going with your ideas. social media — likes don't matter, followers don't matter. keep going and engage with your community. the bbc‘s dominic o'connell is with us. let us start with this story about saudi's oil company. the story is not about what it says on the tin. everyone knows they do chemicals. saudi is looking at floating on the western stock exchange. probably right here in london with a two trillion dollar estimation, but it probably won't be anything like that. the reason this story is appearing is to show that it's not just oil, it makes other chemicals. it's about driving up their valuation ahead of the pricing. let us move on valuation ahead of the pricing. let us move on to what our next stories are. it's about floating of valuations, a huge one penneltially on the cards for deliveroo. it's been a unicorn, it's a term for normally an online company that doesn't make any money but which is valued at more than a billion dollars by investors. if they are doing afunding dollars by investors. if they are doing a funding round, you work out how much the total company is worth. this latest funding is around 1.5 billion dollars. that is a number people just make up isn't it? unicorns are also, when they stop being unicorns, they're uni—corpses. this business model and working in this economy... it's another example ofan this economy... it's another example of an economy which says all its riders ride with their big boxes on their backs, most young kids riding for a few hours a day, they are not all employed by deliveroo, they're self—employed and don't have any rights which is a bone of contention for all these types of economies. are you thinking of queueing up for wimbledon? i can't think of anything that i would line up for. you had a goodidea? that i would line up for. you had a good idea? i would queue through the night to buy a house butjoey tweeted to say he'd queue through the night for a ticket to see that don that that. matt says -- madonna. matt says bruce springsteen for a ticket at the front row. this happens year after year at wimbledon. if you two to wimbledon, normally you walk past the queue in the park and it's notjust a small queue, this is a queue that goes on, 600, 700 metres, even more. the pictures are like glastonbury actually. camping. a very smart glastonbury. fantastic. dominic, thank you very much. that's it from business live today. we'll see you again tomorrow. good morning. we started offjuly on a decent note across most parts of the uk and, as we go through this week, for many, we should see some good spunny spells. rain around on tuesday before it starts to turn hot and humid. this morning is cloudy. a weather front turns south and east, bring ago few showers more than anything as we go into the afternoon across southern and eastern areas. plenty of dry weather with some sunshine. by 4 o'clock this afternoon, there could be quite a bit of cloud across cornwall. looking largely fine and dry in devon. sunny spells for wales, the midlands, northern parts of england and much of scotland. in northern ireland, you will start to see the cloud increase here during this afternoon and certainly by this evening, there'll be a bit of rain moving in. for wimbledon, the start of it today, it's looking largely fine and dry. the chance of the odd shower later but you should be fairly unlucky to catch one of those. temperatures into low 20s. the showers in northern ireland will move east, pushing into scotland, the far north of england as well. damp and drizzly weather across wales. for most of us, into tuesday morning, it's going to be dry. temperatures down to about 12—16. the rain is associated with the low pressure. it will track its way east throughout tuesday. this weather front bringing a bit of cloud during the morning. again by the afternoon, there should be some breaks developing in that cloud across parts of wales and the midlands. sunshine across the far north of scotla nd sunshine across the far north of scotland as well. the rain continues in central areas of scotland and northern ireland. temperatures 13 or 14. in the south, temperatures again up 14. in the south, temperatures again up into the low to mid 20s. it will turn warmer by wednesday. warmer air coming in off the near continent. that will bring the temperatures much higher, particularly across central and southern parts of england during wednesday. there'll be some sunshine here throughout the day as well. temperatures 27, 28, 22 in manchester, but further north staying cloudy with the odd shower and highs of about the high teens. bye. hello — it's monday, it's 9 o'clock, i'm victoria derbyshire, welcome to the programme. our top story today — theresa may is under increasing pressure to scrap the public sector pay cap, which means teachers, nurses, fire fighters and prison officers have seen their pay capped at 1% for most of this decade. i think that we should listen to the pay review bodies who govern each individual area public sector pay. do get in touch in the usual ways. also on the programme — survivors of the grenfell tower fire tell this programme of the devastating impact it's had on their mental health, and the lack of the support they're getting from the authorities. i feel like when you... we have to switch the tv on, so we can see the light when you're sleeping, so you don't have to keep thinking about that little boy who died in your room, or his mum.