0:00:00 > 0:00:03in Review 2017: The Business Year.
0:00:14 > 0:00:20It was a year of crucial negotiations.No deal from Britain
0:00:20 > 0:00:26is better than a bad deal from Britain.We would love to have
0:00:26 > 0:00:32Europe a la cart...And a year of bold promises in the worlds largest
0:00:32 > 0:00:35economy.And I can think of no better Christmas present for the
0:00:35 > 0:00:41American people then giving you a massive tax cuts.It was a year
0:00:41 > 0:00:44where some of the world 's most influential companies hit a bump in
0:00:44 > 0:00:48the road.The taxi at Uber will not have its licence renewed by
0:00:48 > 0:00:52transport for London. It says the firm is not fit and proper to
0:00:52 > 0:00:56operate.But others defied the critics to post record-breaking
0:00:56 > 0:01:01results.
0:01:07 > 0:01:11Welcome to review 2017, a year in business. We have all about to come
0:01:11 > 0:01:15but we are starting here in Westminster, the home of the British
0:01:15 > 0:01:18government, where Big Ben isn't the only thing under construction. What
0:01:18 > 0:01:22about that Brexit deal? Back in March the UK Prime Minister Theresa
0:01:22 > 0:01:27May triggered Article 50, and negotiations began. Shoulder to
0:01:27 > 0:01:34shoulder, not Isaiah. Just toonie is to negotiate --. I do I. Just two
0:01:34 > 0:01:38years to negotiate written's departure from the EU but rich --
0:01:38 > 0:01:45Brussels would not even start negotiations before sorting out
0:01:45 > 0:01:52three key issues, the Irish border, the divorce Bill and the right of EU
0:01:52 > 0:01:57citizens living in the UK. This woman is the chief lobbyist at the
0:01:57 > 0:01:59economy group which represents businesses here in Britain.There
0:01:59 > 0:02:08are serious questions about... It has been challenging for business,
0:02:08 > 0:02:11and led to confusion, we have not had clear leadership across the
0:02:11 > 0:02:16Cabinet. And in a sense I think it was helpful to have the Florence
0:02:16 > 0:02:19speech whether Prime Minister set out what the government was hoping
0:02:19 > 0:02:25to achieve, but sometimes we have seen the Cabinet not always united
0:02:25 > 0:02:28behind that position.With no clarity on the UK's future trading
0:02:28 > 0:02:32relationship with the European Union, some is started to trigger
0:02:32 > 0:02:37their contingency plans.The big service sector that was unaffected
0:02:37 > 0:02:41or thought it might be affected by this Article 50 process was of
0:02:41 > 0:02:45course financial services, Britain has a big trade surplus with the
0:02:45 > 0:02:49rest of the European Union on financial services, so banking the
0:02:49 > 0:02:53example, a huge amount of trade in the European Union, a lot of trade
0:02:53 > 0:02:57from the European Union into London, London is the financial capital of
0:02:57 > 0:03:01Europe. Those set is that our most intertwined with Europe were those
0:03:01 > 0:03:06that were most concerned. Uncertainty was rife, but there were
0:03:06 > 0:03:11further complications to come.I have just chaired a meeting with the
0:03:11 > 0:03:15Cabinet, where we have agreed that the government should call a general
0:03:15 > 0:03:21election to be held on the eighth of June.The Conservative Party fought
0:03:21 > 0:03:24this would give them a bigger majority in Parliament, and a
0:03:24 > 0:03:27stronger hand going into negotiations with the EU. The gamble
0:03:27 > 0:03:40didn't pay off.BONG.What we are saying is the Conservatives are the
0:03:40 > 0:03:44largest party, they don't have an overall majority at this stage.Last
0:03:44 > 0:03:49half-hour, the Prime Minister has apologised to colleagues for losing
0:03:49 > 0:03:52a parliamentary majority and having to rely on support from the
0:03:52 > 0:03:57Democratic Unionist.I wanted a different result last night and I am
0:03:57 > 0:04:00sorry for all those colleagues who lost their seats, didn't deserve to
0:04:00 > 0:04:04lose, and of course I reflect on what happened.It is a hung
0:04:04 > 0:04:11parliament. So the Conservatives have 309 seats, Labour 258, there is
0:04:11 > 0:04:18no way the Conservatives can go to 320...Stirling was significantly
0:04:18 > 0:04:22down against the dollar following the Brexit vote already, and in June
0:04:22 > 0:04:27it took another hit after Theresa May's government lost its majority.
0:04:27 > 0:04:31The fall in sterling raise the cost of imports and led to a steep rise
0:04:31 > 0:04:36in prices. With inflation above target, the UK's central bank was
0:04:36 > 0:04:40forced to take an unprecedented step.First time in a decade, the
0:04:40 > 0:04:45Bank of England raised rates. The really extraordinary period we had
0:04:45 > 0:04:50of cheap money started with the financial crisis was coming to an
0:04:50 > 0:04:56end. Raising rates after ten years for a whole generation of borrowers
0:04:56 > 0:04:59was quite significant, when you think about the implications
0:04:59 > 0:05:03critically on mortgage rates and borrowers and things like that. A
0:05:03 > 0:05:10small step in absolute terms, but very much the first of a journey.
0:05:10 > 0:05:14This year the big story has been around two numbers, firstly that
0:05:14 > 0:05:19inflation number which is 3.1%, and the other important number for how
0:05:19 > 0:05:24people experience the economy is the increase in incomes, and they have
0:05:24 > 0:05:29only been increasing at 2.3%. That has created this living standards
0:05:29 > 0:05:34qui is, real incomes are actually falling. Inflation affects us all,
0:05:34 > 0:05:41that means higher prices and our wages go less far. -- living
0:05:41 > 0:05:47standards squeeze.Growth forecasts were revised down by several
0:05:47 > 0:05:50organisations, including the International Monetary Fund and the
0:05:50 > 0:05:54government 's own independent economist. But in December, a
0:05:54 > 0:05:58breakthrough. There would be no hard board of the Northern Ireland,
0:05:58 > 0:06:02Britain and the EU had come to sufficient agreement on the three
0:06:02 > 0:06:06separation issues, and talks could move on to trade.I think the
0:06:06 > 0:06:08agreements that we came to in December has increased confidence,
0:06:08 > 0:06:13that at least progress is being made, and it is probably giving
0:06:13 > 0:06:19business a better understanding of how we are going to leave the
0:06:19 > 0:06:23European Union. At least there is now a deal on the money that Britain
0:06:23 > 0:06:28will pay to the European Union on citizens rights, I think the one big
0:06:28 > 0:06:32area where there is still concern is over the Irish border. The only land
0:06:32 > 0:06:36border between the United Kingdom and Northern Ireland and the
0:06:36 > 0:06:40Republic of Ireland. And the fact is, the British government has said
0:06:40 > 0:06:44they want that border to remain open. How will we do that, if we are
0:06:44 > 0:06:48going to leave the customs union and the single market? That is the big
0:06:48 > 0:06:52challenge now, what type of relationship will we have with the
0:06:52 > 0:06:58rest of the European Union? In order to be able to keep that frictionless
0:06:58 > 0:07:02trade going, which is what Theresa May has said she wants.What
0:07:02 > 0:07:07businesses want to see as soon as the bowling 2018 is a time-limited
0:07:07 > 0:07:11-- as soon as possible in 2018 is a time-limited transition agreement,
0:07:11 > 0:07:16and clarity around what our final relationship will be with the EU,
0:07:16 > 0:07:18getting a good agreement on our trading relationship with works
0:07:18 > 0:07:22across all sectors and all regions of the UK, and it is certainly about
0:07:22 > 0:07:26the people and having clear guarantees for EU citizens who are
0:07:26 > 0:07:29here and contribute into our economy, but also to UK citizens who
0:07:29 > 0:07:34are working abroad, we have made good progress on that in 2017 but we
0:07:34 > 0:07:44need to go a lot further on that. Brexit and a general election made a
0:07:44 > 0:07:50pretty eventful byzantine here in the UK, and in the US they have been
0:07:50 > 0:07:53dealing with their own are expect that political results. At the
0:07:53 > 0:07:57beginning of the year Donald Trump took control of the White House and
0:07:57 > 0:08:00he had somebody bold ideas about the future of the world's largest
0:08:00 > 0:08:07economy. 2017 started off with a major political shift in Washington.
0:08:07 > 0:08:12The election of US President Donald Trump took many by surprise,
0:08:12 > 0:08:20including US markets. Jitters were felt across the board, at the
0:08:20 > 0:08:24prospect of a president with very little political experience. But the
0:08:24 > 0:08:30day after his election, stocks were trading Heide, -- higher, because of
0:08:30 > 0:08:36Mr Trump's campaign promises.The market has stormed base on tax
0:08:36 > 0:08:41reform and infrastructure, so if we can get those in place, maybe the
0:08:41 > 0:08:44market can finally settle and justify some of the valuations.It
0:08:44 > 0:08:48was the legislative promises of this administration that brought some of
0:08:48 > 0:08:54the euphoria on US markets. Breaking records 70 times this year alone.
0:08:54 > 0:09:00But in terms of actual laws on the books, tax reform has only just made
0:09:00 > 0:09:04it to the President 's desk, squeaking in at the tail end of
0:09:04 > 0:09:112017.We have created 2.2 million jobs since the election,
0:09:11 > 0:09:16unemployment is at a 17 year low, the unemployment rate in a
0:09:16 > 0:09:23manufacturing business is the lowest in recorded history. Consumer
0:09:23 > 0:09:28confidence is a 17 point hi, pensions and retirement accounts are
0:09:28 > 0:09:36soaring, as the stock market hits 85 new record highs since the election,
0:09:36 > 0:09:42how are we doing, are we doing OK? Not bad, right?The US economy has
0:09:42 > 0:09:46also had consecutive quarters of 3% growth. But how much credit can the
0:09:46 > 0:09:50President take for what has happened this year? Some would argue, not
0:09:50 > 0:09:54very much.The current administration has inherited a
0:09:54 > 0:10:00rather strong economy. The economy has been chugging along through 2017
0:10:00 > 0:10:05and even 2016, and we think President Trump is very lucky in
0:10:05 > 0:10:11that he has been able to inherit such a relatively nice economy.How
0:10:11 > 0:10:16does the President plan on keeping the US economy on this path of
0:10:16 > 0:10:20growth? One assumption is that given corporations are big tax cut will
0:10:20 > 0:10:24create jobs. But earlier this year at an event with White House chief
0:10:24 > 0:10:30economic adviser Gary Cohn, CEOs in the audience were asked what they
0:10:30 > 0:10:35would do with the money they would no longer be putting towards taxes?
0:10:35 > 0:10:40If the tax reform Bill goes through, do you plan to increase investment,
0:10:40 > 0:10:45your company's capital investment if the tax reform goes through?Why
0:10:45 > 0:10:51aren't the other hand is up?Well, so much for the theory. And the tax
0:10:51 > 0:10:58bill comes with other problems.This tax package is not that neutral. You
0:10:58 > 0:11:02are looking at maybe $400 billion in economic activity generated from the
0:11:02 > 0:11:07package, but it will cost close to 1.5 billion. That means for every
0:11:07 > 0:11:12dollar spent by the US government, we are only getting 30 cents back.
0:11:12 > 0:11:17If you are counting a column -- competence, the President has
0:11:17 > 0:11:21inherited a healthy economy and has just been now able to pass a tax
0:11:21 > 0:11:29bill. But the President can take credit for deregulation.Within our
0:11:29 > 0:11:34first 11 months, we cancelled or delayed over 1500 planned regular
0:11:34 > 0:11:40Tory actions, -- regular Tory actions, more than any previous
0:11:40 > 0:11:45president by far.Under the Trump administration, the environment
0:11:45 > 0:11:50protection agency has rolled back more than 60 rules. The US it's due
0:11:50 > 0:11:53-- US security and exchange commission has been enforcing rules
0:11:53 > 0:11:56less, and incoming chair of the Federal reserve has said some of the
0:11:56 > 0:12:00banking rules in place after the financial crisis should be pulled
0:12:00 > 0:12:05back.One, two, three.All of this has helped the economy in the short
0:12:05 > 0:12:09term, but the long-term impact could be unpleasant.The pendulum swings
0:12:09 > 0:12:15every eight years or so, and that is a common thing. This wing is more
0:12:15 > 0:12:20radical than it has been at any time back to Reagan. There is more than
0:12:20 > 0:12:24the traditional pendulum swing.Now the question is, what can we expect
0:12:24 > 0:12:28from the economy going forward? The financial markets seem like they
0:12:28 > 0:12:32will say stronger now.I would think the first half of 2018 should be
0:12:32 > 0:12:39pretty positive, this has room to go. Is it going to be up 20% again
0:12:39 > 0:12:44in 2018? Probably not.Strong markets mean Mr Trump will still
0:12:44 > 0:12:47have one of his favourite economic indicators to boast about. If
0:12:47 > 0:12:52however some of his other economic aspirations don't pan out, that
0:12:52 > 0:12:56could pose problems for what could already be a tricky mid-term
0:12:56 > 0:13:02election.
0:13:04 > 0:13:10Still to come, will 2018 be the year of the electric revolution? Our
0:13:10 > 0:13:17Gadget Guru gets a sneak peek at the new Nissan Leaf as he gives us his
0:13:17 > 0:13:21top tech predictions for the year ahead. But first, it is the poster
0:13:21 > 0:13:25child for the gig economy, the world 's biggest taxi provider, although
0:13:25 > 0:13:29technically it doesn't actually implore you any drivers. Ute has
0:13:29 > 0:13:33transformed the way we move around our cities. But in a year when the
0:13:33 > 0:13:39chief executive was forced out, three UK cities extended --
0:13:39 > 0:13:43suspended licences, and a huge data breach was revealed, I decided to
0:13:43 > 0:13:47ask a driver for his story, and guess who I found in my and Uber?
0:13:47 > 0:13:53Simon Jack, what are you doing in my Uber car?James couldn't turn down
0:13:53 > 0:13:59my application for his programme, so here we are.Gareth, you are in the
0:13:59 > 0:14:05driver, thank you for picking us up. How long have you been driving for?
0:14:05 > 0:14:11The first journey are made in either, I picked some kids up from
0:14:11 > 0:14:16school, and I got chatting to the drivers, I wanted to find something
0:14:16 > 0:14:23I could fit in contracts and start pursuing my passion, which was more
0:14:23 > 0:14:29creative field, I want to do a bit of acting.Is Uber venue waiting
0:14:29 > 0:14:34tables in Hollywood?I think it is. I tell people that. It beats waiting
0:14:34 > 0:14:38tables because I don't have to go to the bar manager and say, my
0:14:38 > 0:14:43grandmother, she is ill, that type of stuff.The Flex ability of Uber
0:14:43 > 0:14:47of Italy which were you, but not all the drivers agree, we had that
0:14:47 > 0:14:52tribunal in the UK where it was recently upheld that Uber drivers
0:14:52 > 0:14:55should be classified as workers, not as self-employed. Let's listen to
0:14:55 > 0:15:03one of the guys who brought that. The gig economy model like Uber
0:15:03 > 0:15:10relies on workers they can exploit, in the case of Uber, I was working
0:15:10 > 0:15:16due to desperation. Finance, insurance, licence fees and the list
0:15:16 > 0:15:22goes on. Workers feel exploited on the streets of London and the UK.
0:15:22 > 0:15:29Gareth, do you see yourself as self-employed or as a worker?I view
0:15:29 > 0:15:35myself as self-employed because that is what I signed up to. That is what
0:15:35 > 0:15:41you are told. It is kind of extreme that... That drivers are being
0:15:41 > 0:15:48exploited. I mean, you could say, we are all exploited when we do a job.
0:15:48 > 0:15:53What thing I don't feel exploited about is working 9-to-5.It is that
0:15:53 > 0:15:57desire for Flex ability that runs this gig economy, and Uber is the
0:15:57 > 0:16:01embodiment of gig economy?Uber is the poster child for the gig
0:16:01 > 0:16:06economy. It is the biggest company by far, last time someone bought a
0:16:06 > 0:16:11share in it it was worth $68 billion. I think there is a wider
0:16:11 > 0:16:18question here, which is, what does the Buber I Seshan of the economy
0:16:18 > 0:16:24mean? The Chancellor tried to future proof the economy, against the
0:16:24 > 0:16:29growth -- growth of the gig economy. He tried to increase the national
0:16:29 > 0:16:32insurance on self employed workers, there was a massive revolt, he had
0:16:32 > 0:16:37to climb down, it was embarrassing, but it is a massive problem for
0:16:37 > 0:16:40governments around the world, how do they deal with changing nature of
0:16:40 > 0:16:48work? Do you pick up any of the kind of anger and fear that they have
0:16:48 > 0:16:55been disrupted by black cab drivers here in London? I talk to cab
0:16:55 > 0:16:58drivers about Uber, they give a very different opinion, what do you make
0:16:58 > 0:17:00of that?
0:17:05 > 0:17:08When people had
0:17:08 > 0:17:10When people had tractors, they talk to people who were pulling ploughs
0:17:10 > 0:17:14and they were saying that people were stealing their jobs.I'd be
0:17:14 > 0:17:18worried about self driving cars then?I was about to say that, I
0:17:18 > 0:17:23have to accept that. Hopefully we will rise against the machines and
0:17:23 > 0:17:28people will say no, I need a human person to speak to.Luckily the
0:17:28 > 0:17:32Gareth, driverless taxis are still some way off but what other
0:17:32 > 0:17:35developments can we look forward to in 2018? Who better to ask than our
0:17:35 > 0:17:42tech are, Richard Dylan Jones? A commissary, turn on the Christmas
0:17:42 > 0:17:54tree. -- Siri. Alexei, pleasant Christmas carols. Hey, Google, what
0:17:54 > 0:17:59are your tech predictions the 2018? Sorry, I don't understand. Luckily I
0:17:59 > 0:18:05have invited to top pundits to look into our technology future. Men!
0:18:05 > 0:18:11Gracey, go straight on through. Rhiannon, where is social media
0:18:11 > 0:18:16going in 2018? Is Snapchat finally going to reach or people like me?
0:18:16 > 0:18:23That is a good question. What are you wearing? Snap spec Eccles, Rory,
0:18:23 > 0:18:29so I can Snapchat on the go, take my pictures and up to.But proved
0:18:29 > 0:18:34pretty unsuccessful.Far as we know they didn't sell half as many as
0:18:34 > 0:18:39they were too, so I think they are still making a really big play for a
0:18:39 > 0:18:43more general audience, at the moment it is still very much weighted
0:18:43 > 0:18:47towards teenagers and the under 24th of using Snapchat but on the reverse
0:18:47 > 0:18:53side, Facebook's is a ship is going up and up, one third of the world is
0:18:53 > 0:19:02now on them.Now, how good is it animating us? I am sure this will
0:19:02 > 0:19:08but maybe not with my demographic. Stuart, how are we going to
0:19:08 > 0:19:13entertain ourselves in 2018?It is an exciting time, lots of money is
0:19:13 > 0:19:17being thrown into traditional and future sensors, traditionally this
0:19:17 > 0:19:21year with Netflix and Amazon crime and even apple are getting into the
0:19:21 > 0:19:24string of things, putting billions of pounds into creating amazing
0:19:24 > 0:19:28shows and trying to convince us of that, and we have had a huge
0:19:28 > 0:19:33explosions in the games market, fresh release from Xbox and
0:19:33 > 0:19:36PlayStation, the switch from Nintendo has pretty much turned the
0:19:36 > 0:19:41company around, there is Mario and Zelda and evolution is happening now
0:19:41 > 0:19:48of this sort of, the creation of the art mixed reality and a art, so
0:19:48 > 0:19:52virtual reality, mixed reality, augmented reality.So one
0:19:52 > 0:19:56application of augmented reality I can put furniture in my kitchen?
0:19:56 > 0:20:04Let's have a go. I will buy the stall. Would it look bad? Yeah, I
0:20:04 > 0:20:15think that will work. I have bought myself a new stall. Rhiannon, a kind
0:20:15 > 0:20:18of noticed you brought a little robot with you, but that say
0:20:18 > 0:20:22something about your big seemed to next year?I seem to 2018 is going
0:20:22 > 0:20:30to be robots and artificial intelligence.So what is an example
0:20:30 > 0:20:38of this?Kosovo have a little front facing camera at the bottom of his
0:20:38 > 0:20:43face which enables him to see everybody and also have a his path.
0:20:43 > 0:20:47Path. -- Cosmo. You can programme him to remember you so have
0:20:47 > 0:20:50programmed him to remember my name so he can say Rhiannon and look at
0:20:50 > 0:20:54you and several reasons look at you and say Stuart would you can teach
0:20:54 > 0:20:59him to recognise the family dog and when he sees the dog he will go off.
0:20:59 > 0:21:04Amazon Eco is already been a key example of this sort of early stages
0:21:04 > 0:21:08of AI that people are playing into Etihad Google home, Google assistant
0:21:08 > 0:21:14as well, apple will do it, with Siri which we have seen in their phones
0:21:14 > 0:21:20are they will work it into a home at POD.Help me to speak Russian. Good
0:21:20 > 0:21:23morning my fellow technology pundits. Good to have you here.
0:21:23 > 0:21:36Speaks Russian.You speak good Russian, don't you? But seriously,
0:21:36 > 0:21:40amazing technology, these things. We are not very impressed with them
0:21:40 > 0:21:45yet, though, are we, this kind of device? It is incredible that 30
0:21:45 > 0:21:49years ago, we dreamt of something like the apple fish which could do
0:21:49 > 0:21:53instant translation and it did.Or the universal translator from Star
0:21:53 > 0:21:59Trek. -- Babelfish. I think it is the double guessing, people don't
0:21:59 > 0:22:04100% cost it and it is more of a social thing that you don't want to
0:22:04 > 0:22:08be in that situation and say something and then start some new
0:22:08 > 0:22:11global war kind of thing because you have that something wrong.My big
0:22:11 > 0:22:16scene is about the way more and more of us will get around next year. I
0:22:16 > 0:22:21think you will like it.I have a surprise.What is it? This is the
0:22:21 > 0:22:25latest in electric motoring. It is the new Nissan Leaf, it is going to
0:22:25 > 0:22:31be out next year, so Tesla, look out. Argue fans of electric
0:22:31 > 0:22:38motoring?Definitely.Absolutely. Here it is, parked in front of my
0:22:38 > 0:22:44front lawn. While I run an extension cord across the?A lot of people
0:22:44 > 0:22:49have driveways to park on.I would need lamppost with charging point,
0:22:49 > 0:22:53streets, where do?It is a part of the budget proposal last month that
0:22:53 > 0:22:56they wanted to create a nation of charging point is that people will
0:22:56 > 0:23:01get rid of the fear of electric cars which is running out of gas when you
0:23:01 > 0:23:04are halfway down the motorway and you cannot charge it anyway so once
0:23:04 > 0:23:08people are reassured that there will be able to charge it at regular
0:23:08 > 0:23:11intervals, it probably will be what it needs for electric cars to truly
0:23:11 > 0:23:16take off.I think we will start to see over the next 3-5 years a push
0:23:16 > 0:23:19on electric and once you get a charging system working either
0:23:19 > 0:23:22through this amazing lamppost system that we have almost streets or in
0:23:22 > 0:23:25this sort of long-term future charging pads within the tarmac of
0:23:25 > 0:23:29the road, then it is the future, we are getting there, it is just in the
0:23:29 > 0:23:34final stage of mass adoption.Your chariot awaits. Happy Christmas and
0:23:34 > 0:23:50enjoy the ride. Cheers, thanks. Alexei, stop. That is all we have
0:23:50 > 0:23:54time for in the year 2017 but we will be sure to bring me all the
0:23:54 > 0:23:58latest breaking news on Brexit, Trump, who have and electric cars in
0:23:58 > 0:24:06the new year. But for now, things are watching.