07/01/2016 BBC Business Live


07/01/2016

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This is Business Live from the BBC with Ben Thompson and Aaron

:00:07.:00:09.

Oil falls to a fresh 11 year low as global markets fall sharply.

:00:10.:00:14.

Live from London, that's our top story on Thursday seventh January

:00:15.:00:37.

Brent crude price tumble over 4% to levels not seen since April 2004

:00:38.:00:41.

- the global economic slowdown triggers Thursday's moves.

:00:42.:00:48.

The slide in oil is triggered by a weakening yuan and another

:00:49.:00:51.

emergency trading halt in China's stock markets leaving Asian

:00:52.:00:53.

And European markets follow their Asian counterparts

:00:54.:00:59.

The FTSE 100 is done by nearly 2%. The Frankfurt Dax is down nearly 2%,

:01:00.:01:08.

as well. Ouch! As the latest Star Wars release

:01:09.:01:13.

breaks box office records around the world, cinemas are

:01:14.:01:16.

reaping the rewards. But in an age of streaming

:01:17.:01:20.

and downloads, do movie theatres The boss of the global cinema chain,

:01:21.:01:22.

Imax will join us Live. And with global markets in turmoil,

:01:23.:01:31.

is there anywhere safe Under the mattress as Ben does,

:01:32.:01:33.

or just go out and spend it? That is assuming any of us have

:01:34.:01:57.

money to put under the mattress. Nevertheless...

:01:58.:01:58.

We start with oil, Brent crude - the global oil benchmark -

:01:59.:02:02.

slumped by another six per cent yesterday to hit its lowest level

:02:03.:02:05.

in more than 11 years - and it's still falling.

:02:06.:02:07.

And over in China, soon after stock markets there opened,

:02:08.:02:09.

Triggering an automatic shutdown of the market -

:02:10.:02:18.

Unsurprisingly, that's having an big impact on commodity prices.

:02:19.:02:23.

Brent crude for delivery in February has now fallen below $33

:02:24.:02:25.

for the first time since February 2004.

:02:26.:02:39.

Just 18 months ago, oil was well over $100 a barrel.

:02:40.:02:45.

It has now lost more than two thirds of its value in the past year

:02:46.:02:48.

The big reason - there's too much supply and not enough demand.

:02:49.:02:52.

Normally tensions in the Middle East would push up prices.

:02:53.:02:55.

But traders say the current row between Opec members Saudi and Iran

:02:56.:02:57.

- means they're both cutting prices to try to win market share.

:02:58.:03:00.

And it's unlikely that Opec members will be able to agree a deal

:03:01.:03:03.

Tom James, Founder and CEO of Navitas Resources

:03:04.:03:09.

Let's start with this... Typically, we've been hearing, you have middle

:03:10.:03:22.

East tensions, you would see the price of oil go up, typically.

:03:23.:03:27.

Correct me if I'm wrong. Four years ago, when sanctions were imposed on

:03:28.:03:31.

Iran, they stopped Iran selling to the west, the Saudis came in and

:03:32.:03:35.

grabbed the market share. The Saudis won't give that up freely, will

:03:36.:03:40.

they? The early part of last year they increased their market share to

:03:41.:03:46.

Asia some ten, 15% in a few months as oil prices were sliding down.

:03:47.:03:50.

They started to lose out a bit. They are eager to keep a hold of it. They

:03:51.:03:59.

are selling oil way below their anticipated Budget level. The middle

:04:00.:04:03.

East mainly want to sell at about $80 per barrel to pay the bills.

:04:04.:04:07.

They are down 32, 33, so they are sweating. They are indeed. Now, this

:04:08.:04:15.

remarkable picture, that 18 months ago, as Ben showed, oil around $100

:04:16.:04:24.

per barrel. It is 33 now, as you say. At that time, some people were

:04:25.:04:29.

saying, there is a shortage, we are going to run out. The picture now

:04:30.:04:33.

is, we don't have enough storage facilities for the oil, right?

:04:34.:04:40.

That's right. Talking about currency devaluation in China, that impacts

:04:41.:04:44.

the price. That devaluation is seen as another signal that the China

:04:45.:04:49.

slowdown is continuing. And the demand won't be there. China and

:04:50.:04:57.

India, the two big growth sectors, where people have been watching to

:04:58.:05:02.

see if the growth will be used up. With Iran coming back to the market

:05:03.:05:06.

and possibly increasing production, that is another hit to the price.

:05:07.:05:10.

You've already touched on the idea of the Middle East tensions spiking

:05:11.:05:20.

the price. Opec, they have the power on the prices normally, but that

:05:21.:05:24.

power has all but disappeared. There are these internal battles between

:05:25.:05:30.

Saudi and Iran, they just want to win customers. It is amazing. 18

:05:31.:05:38.

months ago $100, now about 33. Opec could not do anything before because

:05:39.:05:43.

we were running out of oil. The Saudis were the only ones who could

:05:44.:05:49.

have stabilised prices. The Saudis, in the past, for decades, has been

:05:50.:05:52.

the stabiliser of the market. Last time we were down here, in the low

:05:53.:05:57.

30s, back in 2008 after the financial crash in the markets,

:05:58.:06:02.

Saudi cut back by 10%, their production, and triggered a recovery

:06:03.:06:06.

in oil prices. They are not doing that. There has been a lot of

:06:07.:06:10.

changes, the crown prince, strategies are changing, or we are

:06:11.:06:14.

saying -- that they are saying, we are fed up of overproducing and

:06:15.:06:18.

letting everybody else make money, anybody else want to cut back? They

:06:19.:06:24.

are not flinching. It seems to be a situation of who is going to blink

:06:25.:06:31.

first, doesn't it? Very much. Thanks very much. Let's have a look at some

:06:32.:06:35.

of the other stories making the headlines in the business world this

:06:36.:06:36.

morning. US department store giant Macy's

:06:37.:06:38.

said it will cut thousands of jobs An additional 600 jobs will be lost

:06:39.:06:44.

in back-office operations, while 750 workers will go

:06:45.:06:47.

through the closing Global food prices have continued

:06:48.:06:49.

to fall for the fourth year A report out today from

:06:50.:06:56.

the United Nations' Food and Agriculture Organisation says

:06:57.:07:02.

prices in 2015 were down around 19% It's blamed the weak economic

:07:03.:07:05.

environment and an oversupply The company behind a controversial

:07:06.:07:10.

pipeline project between Canada and the US is suing the US

:07:11.:07:23.

government for $15 billion. TransCanada says President Obama's

:07:24.:07:26.

decision to axe the project The pipeline was meant to transport

:07:27.:07:28.

oil produced from Canadian tar sands in Alberta to the US Gulf coast,

:07:29.:07:36.

but the Obama administration said it would harm the fight

:07:37.:07:39.

against climate change. We will talk about Marks Spencer

:07:40.:07:53.

shortly. But we cannot get away from China. Some experts out there

:07:54.:07:57.

suggesting that what we are seeing with China, that this could spur a

:07:58.:08:01.

further worrying picture of deflation. Because of the rate drop,

:08:02.:08:11.

it could be more deflation, that is a problem. Consumers think the price

:08:12.:08:14.

will drop. You put off purchases, and it is a

:08:15.:08:16.

visual downward cycle. We have had an update from Marks

:08:17.:08:28.

Spencer. Sales over the crucial Christmas period were down. 2.5%

:08:29.:08:37.

fall. Crucially, you can see, the boss is off. He said he will retire.

:08:38.:08:44.

The Chief Executive will retire this year. He will be replaced by

:08:45.:08:52.

somebody in the company who has been there for a long time.

:08:53.:08:56.

Trading on the main Chinese stock markets has been suspended -

:08:57.:08:59.

What impact is it have cost -- we know it is not having a good impact.

:09:00.:09:14.

This is about investors being worried about what the central bank

:09:15.:09:24.

is going to do. Suggesting that the Chinese economy is not doing well.

:09:25.:09:28.

That's right and as a result it has been a turbulent day on the markets

:09:29.:09:33.

throughout the region. Following the shock news this morning that the

:09:34.:09:36.

mainland Chinese market would be shocked all day after the

:09:37.:09:40.

government's new circuit breaker mechanisms kick in. This is for the

:09:41.:09:44.

second time in a week. Within half an hour early morning trading on the

:09:45.:09:48.

stocks in China had fallen by a whopping 7%. That was when trading

:09:49.:09:52.

was suspended for the day, as you said, because Chinese authorities

:09:53.:10:00.

devalued the yuan. It sparked off worries among investors. They were

:10:01.:10:05.

very nervous about what they said about the state of the Chinese

:10:06.:10:09.

economy. As a result, currencies have fallen, as well as stock

:10:10.:10:13.

markets. In Hong Kong, Japan, Singapore, in Australia stocks lost

:10:14.:10:18.

$33 billion of its market value today. Thanks throw much. What a

:10:19.:10:27.

week it has been. The holiday seem a long time ago.

:10:28.:10:36.

Chinese shares falling. The weakening of the yuan has been

:10:37.:10:51.

fanning the fires. All of this comes on top of regional tensions after

:10:52.:10:55.

yesterday North Korea claimed it had a successful hydrogen bomb test.

:10:56.:11:02.

This is why the numbers are red. This is how Europe is looking. Three

:11:03.:11:07.

days into the year... The Frankfurt Dax losing about 5%, you can see it

:11:08.:11:12.

is down another 3% today. The FTSE 100 is down almost 3%. All of that

:11:13.:11:20.

on breast is enough to wipe $2.5 trillion off the value of global

:11:21.:11:24.

stocks in the first six days of the year. -- all of that unrest. We now

:11:25.:11:33.

have the details from New York. The markets have taken a beating this

:11:34.:11:37.

week off plunging oil prices and more concerned that the world's

:11:38.:11:41.

second-largest economy, China, is slowing down even more than

:11:42.:11:45.

anticipated. Will Cirstea bring a rally, or another headshaking day on

:11:46.:11:51.

Wall Street? -- will this bring a. The number of Americans filing for

:11:52.:11:55.

unemployment fell last week to 275,000, from 287,000, it is

:11:56.:12:03.

expected. Wall Street is likely to disappoint investors, a quarter

:12:04.:12:09.

review is expected to be below expected.

:12:10.:12:28.

Joining us is Bronwyn Curtis from the Society of Business Economists.

:12:29.:12:31.

Happy New Year. Let's start with the Chinese story. $2.5 trillion wiped

:12:32.:12:42.

off the global markets because of the worries over in China. Help us

:12:43.:12:47.

out, it is not so much the rest of the markets are looking at the

:12:48.:12:51.

Chinese markets, it is the story behind that, it is the economy,

:12:52.:12:57.

right? The Chinese economy. It isn't just the Chinese economy. Clearly

:12:58.:13:02.

this is the biggest worry that the financial markets have at the

:13:03.:13:06.

moment. Global growth, actually, in 2015 was the weakest since the

:13:07.:13:12.

crisis. In other words, you know, we are not seeing that pick up in

:13:13.:13:16.

global growth we are expecting. You look at the US, we have a rate hike,

:13:17.:13:23.

remember, back in December? Yeah. The minutes came out last night. The

:13:24.:13:29.

decision was actually closer than we anticipated. I think the markets are

:13:30.:13:34.

nervous. The hedge fund is, well-established hedge funds, and

:13:35.:13:36.

there was one overnight giving back money to the investors, these are

:13:37.:13:41.

hedge funds that have made a lot of money for investors. Everyone is

:13:42.:13:46.

very nervous. We will hear from George Osborne later today. He is

:13:47.:13:52.

going to talk about whether we are feeling more complacent about the

:13:53.:13:55.

economy, and whether we think we are over the worst, things are fine,

:13:56.:13:59.

things can go back to the way they were before. But there is also a

:14:00.:14:02.

warning that there are still a lot of work to do that we shouldn't be

:14:03.:14:07.

complacent. But that is the general feeling, isn't it? It isn't as bad

:14:08.:14:11.

as 2009, 2010, things are picking up, we can take the foot of the

:14:12.:14:18.

pedal, but we can't do can we? -- foot off. I don't think we can. We

:14:19.:14:23.

have seen a series of weak data coming out of the UK. George

:14:24.:14:28.

Osborne's number of 2.4% growth for 2015 maybe closer to 2% by the time

:14:29.:14:35.

we get the revisions. That is what we are worrying about. He is saying,

:14:36.:14:41.

look, austerity, we cannot just stop it. Tax revenues may not come in, we

:14:42.:14:46.

may not have the money. We have to be very careful. I think he is

:14:47.:14:49.

right. You just have to have a look at the first week of the markets,

:14:50.:14:55.

you know, tomorrow we have the big jobs numbers coming out. Nobody is

:14:56.:14:58.

talking about it at the moment because everybody is focused on

:14:59.:15:02.

China, which is clearly more important. But if we got a bad

:15:03.:15:05.

number there, that would just hit things again. Happy New Year,

:15:06.:15:11.

everybody! You know the routine, you will take us through the newspapers

:15:12.:15:13.

in a bit. How The Force is awakening

:15:14.:15:16.

box office receipts... The latest Star Wars movie smashes

:15:17.:15:20.

a new record being the highest But with the rise of

:15:21.:15:25.

streaming and downloads - do we still need the big

:15:26.:15:29.

screen experience? Boss of cinema chain

:15:30.:15:31.

IMAX will join us live. You're with Business

:15:32.:15:34.

Live from BBC News. Boss Marc Bolland is to retire

:15:35.:15:41.

from the retailer - as the firm reported

:15:42.:15:45.

third-quarter sales, including that crucial

:15:46.:15:51.

Christmas period, down 5.8%. So, two stories here, one is the

:15:52.:16:01.

figures for Christmas, we have been looking at those closely for all of

:16:02.:16:05.

the big retailers, but news this morning that Marc Bolland is

:16:06.:16:09.

leaving? That was a surprise, back in October, he said he was going to

:16:10.:16:13.

stay for another two years, now we have found out that he will step

:16:14.:16:18.

down in April. He's been there six years, coming from supermarket

:16:19.:16:21.

Morrisons. As he's been here, the food business at M has thrived, it

:16:22.:16:28.

did well in figures today, but it is the core clothing element, general

:16:29.:16:32.

merchandise is down, nearly 6%. Worse than expected, despite

:16:33.:16:37.

hundreds of millions being spent on revamps. He has not moved the

:16:38.:16:41.

needle, announcing he will go. I always feel bad for executives when

:16:42.:16:47.

share prices go up on the day that they announced they will leave, but

:16:48.:16:52.

I think investors lost faith, David Cumming, he was on notice from last

:16:53.:16:57.

year, today the axe has fallen. He maintains it was his decision, he

:16:58.:17:00.

gave it to the board at the end of last year, he's off in April and

:17:01.:17:08.

will be succeeded by Steve wrote, a 25 year veteran at M, he knows

:17:09.:17:15.

what a difficult job he has. How do the M numbers compare to other

:17:16.:17:18.

retailers we have seen so far this year? It's interesting you say that,

:17:19.:17:25.

we have the Next numbers, they were a little soft, not as bad as these,

:17:26.:17:29.

they blame the weather. M said the poor performance was partly due to

:17:30.:17:33.

weather, partly to do with stock availability. They cannot do

:17:34.:17:37.

anything about the weather but can do stuff about stock availability,

:17:38.:17:40.

that looks like a management issue and they have seen changes today.

:17:41.:17:42.

Thank you for joining us. If you want more on any of those

:17:43.:17:53.

stories, look at the website. The team not only on the Live page, but

:17:54.:17:58.

they have special coverage of news from Marks Spencer, all of the

:17:59.:18:01.

figures and results you need to know, and details on the man who

:18:02.:18:05.

will take over. The picture of Marc Bolland. Whether he has done enough

:18:06.:18:13.

to turn it around, it is down to the new guide to turn around fortunes

:18:14.:18:17.

for the retailer. Full coverage on the BBC website.

:18:18.:18:21.

You're watching Business Live - our top story: Asian markets

:18:22.:18:24.

in turmoil as Chinese share trading is suspended for a second

:18:25.:18:26.

The move sends key commodities lower - Brent crude hits a fresh 11 year

:18:27.:18:32.

It's very close to a 12 year low. Looking at the numbers, the FTSE 100

:18:33.:18:48.

is down 2.3%. Certainly, not a great start to the

:18:49.:18:49.

year. The entertainment headlines have

:18:50.:18:51.

been dominated by the huge success of the new Star Wars

:18:52.:18:53.

movie at the box office. But we live in an age of streaming

:18:54.:18:56.

and downloading movies So how can cinemas keep on making

:18:57.:18:59.

big money from hit movies? Our next guest knows

:19:00.:19:06.

a thing or two about that. He's one of the big bosses

:19:07.:19:11.

at the IMAX chain of movie theatres. Since it started in 1970,

:19:12.:19:15.

the company has expanded to operate It now has more than 1,000

:19:16.:19:19.

cinemas around the world. It reckons that since it launched,

:19:20.:19:25.

more than a billion people have China features prominently

:19:26.:19:28.

in its future - it's Chinese subsidiary last year started trading

:19:29.:19:34.

on the Hong Kong Stock Exchange. Andrew Cripps is the boss

:19:35.:19:37.

of Europe Middle East and Africa Welcome to the programme. Can we

:19:38.:19:47.

begin with that challenge, I guess? I don't if you would call it this,

:19:48.:19:51.

it is an interesting time for the business? We have so much content

:19:52.:19:56.

out there, we have Netflix telling us that recent announcement that it

:19:57.:20:02.

is launching a new 130 -- it is launching in 130 countries, we watch

:20:03.:20:05.

at home and on the go, it is a challenge for you to get bottoms on

:20:06.:20:10.

seats? Consumers are watching more movies than in any time in history,

:20:11.:20:16.

unable righty of devices, but at IMAX, we show blockbusters in a

:20:17.:20:20.

special environment, at the cinema, people look for an experience. They

:20:21.:20:24.

are willing to pay more for a premium experience, that is why we

:20:25.:20:28.

have seen tremendous growth at IMAX. Does that mean you have to rely on

:20:29.:20:32.

the big films, James Bond and Star Wars? We do show big blockbusters,

:20:33.:20:38.

but movies change, there are more blockbusters, as the size of the

:20:39.:20:45.

global movie going economy grows, there are a lot of blockbusters out

:20:46.:20:50.

there. Are we seeing a shift away from just showing films in a theatre

:20:51.:20:54.

where you sit on seats, it is about the experience and going to the

:20:55.:20:57.

cinema? At everything that goes with it? I suppose you well placed to do

:20:58.:21:02.

that, with big screens and the best sound system. You charge a premium

:21:03.:21:07.

price for it. But also, it's about giving people a reason to go to the

:21:08.:21:14.

cinema,? Yes, they have big plasma screens at home and surround sound,

:21:15.:21:18.

at the cinema, paying a baby-sitter and driving to the multiplex, you

:21:19.:21:22.

want a special experience, I think that is why IMAX has thrived, it is

:21:23.:21:27.

a special experience. Speaking of plasmas at home and the home

:21:28.:21:30.

experience, you guys have a IMAX home product, for about ?2 million,

:21:31.:21:34.

you can get it installed on your house and have IMAX at home! It is

:21:35.:21:40.

quite a niche market... But there is a market? You don't have one! It is

:21:41.:21:44.

designed for high net worth individuals but we have announced a

:21:45.:21:47.

new product launched in China and the Middle East, it is called the

:21:48.:21:52.

NACRO one Palais, priced at $451,000. -- the IMAX Pele will stop

:21:53.:22:06.

how do you advance your product? Is it the quality of the screen or the

:22:07.:22:10.

sound? You look at a screen now and go, how much better can they get?

:22:11.:22:15.

Technology is an important component in making sure that consumers

:22:16.:22:19.

continue to go to the cinema, we have introduced laser, at Empire

:22:20.:22:23.

Leicester Square London, you can see IMAX inlays, we have a new surround

:22:24.:22:29.

sound system, it is immersion in the cinema experience and making it more

:22:30.:22:35.

special. What about you? How did you get into the entertainment industry?

:22:36.:22:39.

Did you always have a desire? I wanted to be a surgeon! Did you

:22:40.:22:44.

really?! 30 years in the movie business, I grew up in Japan, I

:22:45.:22:48.

speak Japanese, I worked for Paramount for 25 years, and now IMAX

:22:49.:22:54.

in the last four years. From a surgeon to that? It's incredible.

:22:55.:22:58.

When we talk about the number of people coming to the cinema, you

:22:59.:23:04.

talk about the demand. How related is that to the state of the wider

:23:05.:23:08.

economy? As a premium product, people feel a little worse off than

:23:09.:23:14.

their pocket and say they will not do IMAX today... Is there a

:23:15.:23:19.

correlation? Cinemas have been resilient against economic times, at

:23:20.:23:24.

IMAX, we are an affordable luxury. People may postpone a vacation or

:23:25.:23:28.

not buy a new car, they still need entertainment. They still want good

:23:29.:23:32.

quality entertainment. I still don't know why you don't have one of those

:23:33.:23:38.

home systems?! Mates rates? It was a pleasure, good luck with everything.

:23:39.:23:43.

Have you seen the Star Wars film? Yes, I loved it. Have you? I've seen

:23:44.:23:48.

it a few times. Great movie. I have not seen it! Yet the hint? We will

:23:49.:23:56.

get you some IMAX ticket! We are not allowed! -- do you get the hint?

:23:57.:23:59.

Thanks for joining us. Hopefully we can take you to

:24:00.:24:07.

Germany, David Cameron is speaking about events, he is laying out the

:24:08.:24:12.

case for the UK's continuing membership of the EU. He has been

:24:13.:24:15.

speaking to his German counterpart about that relationship that the EU

:24:16.:24:21.

has -- the UK has with Europe. We are waiting for those pictures, but

:24:22.:24:24.

here is a quick reminder of how you can get in touch with us.

:24:25.:24:30.

The business live pages where you can stay ahead with all of the day

:24:31.:24:36.

is breaking business news. We keep you up-to-date with the latest

:24:37.:24:39.

details, with insight and analysis from the BBC's team of editors

:24:40.:24:44.

around the world. We want to hear from you as well, get involved on

:24:45.:24:52.

the BBC business life web -- life web page. You can find us on Twitter

:24:53.:24:59.

and Facebook. On TV and online whenever you need

:25:00.:25:01.

to know. The relationship between Britain and

:25:02.:25:09.

Germany is strong and important, we look at the world in many of the

:25:10.:25:13.

same ways, you know you have two earned money before you spend it,

:25:14.:25:17.

and we know the importance of backing enterprise and business in

:25:18.:25:20.

creating good jobs. We know the importance of the Atlantic Alliance

:25:21.:25:24.

for Security and how important it is, as we enter 2016, that we

:25:25.:25:29.

confront Islamist extremism and terrorism, and do so together. Our

:25:30.:25:33.

relationship is deep and strong, as members of the EU as members of

:25:34.:25:39.

Nato, and the relationship between our parties, parties at the centre

:25:40.:25:43.

right, that has been strong and will continue to be in future. I have

:25:44.:25:46.

really enjoyed the discussion is here today, at the present take --

:25:47.:25:52.

and the presentation I was able to make. I would like to secure the

:25:53.:25:57.

future of Britain in a reformed European Union. But, this reform is

:25:58.:26:02.

vital. Britain does have real issues with the way the EU works today. My

:26:03.:26:07.

negotiation is about dealing with each of those issues. Making sure

:26:08.:26:13.

that we are in full cooperation and working together, but we are not

:26:14.:26:17.

part of an ever deepening political union, making sure Europe is adding

:26:18.:26:21.

to the competitiveness of countries like Britain and Germany, rather

:26:22.:26:25.

than holding back our competitors. Making sure there are fair rules for

:26:26.:26:29.

both countries that are inside of the Eurozone and countries like

:26:30.:26:32.

Britain who will not join the euro zone, but want the euro zone to be a

:26:33.:26:37.

success and make sure that outside of the Eurozone, there are no

:26:38.:26:40.

disadvantages, we are not called upon to support the Eurozone

:26:41.:26:45.

financially. These are important issues, as are the issues of

:26:46.:26:47.

migration and movement across Europe. Britain supports free

:26:48.:26:53.

movement, many British citizens live and work elsewhere in Europe, but we

:26:54.:26:58.

want to make sure that welfare systems, particularly our welfare

:26:59.:27:01.

system, is not an unnatural drawer to Britain, because we feel the

:27:02.:27:06.

pressure of excessive migration that we have had in recent years. We

:27:07.:27:10.

believe these issues can be dealt with, the discussions are going

:27:11.:27:13.

well. They are hard and tough, they are difficult issues but I am

:27:14.:27:17.

confident, with goodwill, and there is good will on all sides, we can

:27:18.:27:21.

bring the negotiations to a conclusion and hold the referendum

:27:22.:27:25.

that we promised in our election manifesto, and we have legislated

:27:26.:27:29.

for in Parliament. In the end, the choices for the British people, but

:27:30.:27:37.

I want to make sure that they have of staying in a reformed European

:27:38.:27:39.

Union. Giving Britain the best of both worlds. Part of Europe for

:27:40.:27:43.

trade and cooperation, working together over security challenges

:27:44.:27:47.

that we face, helping to keep our people safe, particularly in the

:27:48.:27:51.

difficult and dangerous world we face, but not joining the euro, the

:27:52.:27:55.

currency many have in the European Union. Not being part of the

:27:56.:28:00.

Schengen no borders agreement, we keep our borders in Britain and will

:28:01.:28:03.

strengthen them, and make sure we address each and every one of the

:28:04.:28:07.

four issues I've raised. I'm even more confident after the excellent

:28:08.:28:11.

discussions I've had here in Bavaria with colleagues in the CSU that

:28:12.:28:15.

these things are possible, not just good for Britain, but good for

:28:16.:28:20.

Europe. Not simply because other countries will benefit from Britain

:28:21.:28:24.

continued to be a member of Europe, but it is important that this

:28:25.:28:29.

organisation shows it has the flexibility of a network, and

:28:30.:28:32.

address concerns of individual members rather than a block. I'm

:28:33.:28:36.

confident we can reach conclusions but it will take a lot of hard work,

:28:37.:28:40.

but I've been heartened by the goodwill I felt from sister party

:28:41.:28:46.

members in the CSU here in Bavaria today. Once again, let me thank you

:28:47.:28:50.

for the warmth of your welcome. I remember coming seven years ago,

:28:51.:28:54.

it's been more pleasurable to come back again and have these

:28:55.:28:56.

discussions with you. Thank

:28:57.:28:57.

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