:00:07. > :00:09.This is Business Live from the BBC with Ben Thompson and Aaron
:00:10. > :00:14.Oil falls to a fresh 11 year low as global markets fall sharply.
:00:15. > :00:37.Live from London, that's our top story on Thursday seventh January
:00:38. > :00:41.Brent crude price tumble over 4% to levels not seen since April 2004
:00:42. > :00:48.- the global economic slowdown triggers Thursday's moves.
:00:49. > :00:51.The slide in oil is triggered by a weakening yuan and another
:00:52. > :00:53.emergency trading halt in China's stock markets leaving Asian
:00:54. > :00:59.And European markets follow their Asian counterparts
:01:00. > :01:08.The FTSE 100 is done by nearly 2%. The Frankfurt Dax is down nearly 2%,
:01:09. > :01:13.as well. Ouch! As the latest Star Wars release
:01:14. > :01:16.breaks box office records around the world, cinemas are
:01:17. > :01:20.reaping the rewards. But in an age of streaming
:01:21. > :01:22.and downloads, do movie theatres The boss of the global cinema chain,
:01:23. > :01:31.Imax will join us Live. And with global markets in turmoil,
:01:32. > :01:33.is there anywhere safe Under the mattress as Ben does,
:01:34. > :01:57.or just go out and spend it? That is assuming any of us have
:01:58. > :01:58.money to put under the mattress. Nevertheless...
:01:59. > :02:02.We start with oil, Brent crude - the global oil benchmark -
:02:03. > :02:05.slumped by another six per cent yesterday to hit its lowest level
:02:06. > :02:07.in more than 11 years - and it's still falling.
:02:08. > :02:09.And over in China, soon after stock markets there opened,
:02:10. > :02:18.Triggering an automatic shutdown of the market -
:02:19. > :02:23.Unsurprisingly, that's having an big impact on commodity prices.
:02:24. > :02:25.Brent crude for delivery in February has now fallen below $33
:02:26. > :02:39.for the first time since February 2004.
:02:40. > :02:45.Just 18 months ago, oil was well over $100 a barrel.
:02:46. > :02:48.It has now lost more than two thirds of its value in the past year
:02:49. > :02:52.The big reason - there's too much supply and not enough demand.
:02:53. > :02:55.Normally tensions in the Middle East would push up prices.
:02:56. > :02:57.But traders say the current row between Opec members Saudi and Iran
:02:58. > :03:00.- means they're both cutting prices to try to win market share.
:03:01. > :03:03.And it's unlikely that Opec members will be able to agree a deal
:03:04. > :03:09.Tom James, Founder and CEO of Navitas Resources
:03:10. > :03:22.Let's start with this... Typically, we've been hearing, you have middle
:03:23. > :03:27.East tensions, you would see the price of oil go up, typically.
:03:28. > :03:31.Correct me if I'm wrong. Four years ago, when sanctions were imposed on
:03:32. > :03:35.Iran, they stopped Iran selling to the west, the Saudis came in and
:03:36. > :03:40.grabbed the market share. The Saudis won't give that up freely, will
:03:41. > :03:46.they? The early part of last year they increased their market share to
:03:47. > :03:50.Asia some ten, 15% in a few months as oil prices were sliding down.
:03:51. > :03:59.They started to lose out a bit. They are eager to keep a hold of it. They
:04:00. > :04:03.are selling oil way below their anticipated Budget level. The middle
:04:04. > :04:07.East mainly want to sell at about $80 per barrel to pay the bills.
:04:08. > :04:15.They are down 32, 33, so they are sweating. They are indeed. Now, this
:04:16. > :04:24.remarkable picture, that 18 months ago, as Ben showed, oil around $100
:04:25. > :04:29.per barrel. It is 33 now, as you say. At that time, some people were
:04:30. > :04:33.saying, there is a shortage, we are going to run out. The picture now
:04:34. > :04:40.is, we don't have enough storage facilities for the oil, right?
:04:41. > :04:44.That's right. Talking about currency devaluation in China, that impacts
:04:45. > :04:49.the price. That devaluation is seen as another signal that the China
:04:50. > :04:57.slowdown is continuing. And the demand won't be there. China and
:04:58. > :05:02.India, the two big growth sectors, where people have been watching to
:05:03. > :05:06.see if the growth will be used up. With Iran coming back to the market
:05:07. > :05:10.and possibly increasing production, that is another hit to the price.
:05:11. > :05:20.You've already touched on the idea of the Middle East tensions spiking
:05:21. > :05:24.the price. Opec, they have the power on the prices normally, but that
:05:25. > :05:30.power has all but disappeared. There are these internal battles between
:05:31. > :05:38.Saudi and Iran, they just want to win customers. It is amazing. 18
:05:39. > :05:43.months ago $100, now about 33. Opec could not do anything before because
:05:44. > :05:49.we were running out of oil. The Saudis were the only ones who could
:05:50. > :05:52.have stabilised prices. The Saudis, in the past, for decades, has been
:05:53. > :05:57.the stabiliser of the market. Last time we were down here, in the low
:05:58. > :06:02.30s, back in 2008 after the financial crash in the markets,
:06:03. > :06:06.Saudi cut back by 10%, their production, and triggered a recovery
:06:07. > :06:10.in oil prices. They are not doing that. There has been a lot of
:06:11. > :06:14.changes, the crown prince, strategies are changing, or we are
:06:15. > :06:18.saying -- that they are saying, we are fed up of overproducing and
:06:19. > :06:24.letting everybody else make money, anybody else want to cut back? They
:06:25. > :06:31.are not flinching. It seems to be a situation of who is going to blink
:06:32. > :06:35.first, doesn't it? Very much. Thanks very much. Let's have a look at some
:06:36. > :06:36.of the other stories making the headlines in the business world this
:06:37. > :06:38.morning. US department store giant Macy's
:06:39. > :06:44.said it will cut thousands of jobs An additional 600 jobs will be lost
:06:45. > :06:47.in back-office operations, while 750 workers will go
:06:48. > :06:49.through the closing Global food prices have continued
:06:50. > :06:56.to fall for the fourth year A report out today from
:06:57. > :07:02.the United Nations' Food and Agriculture Organisation says
:07:03. > :07:05.prices in 2015 were down around 19% It's blamed the weak economic
:07:06. > :07:10.environment and an oversupply The company behind a controversial
:07:11. > :07:23.pipeline project between Canada and the US is suing the US
:07:24. > :07:26.government for $15 billion. TransCanada says President Obama's
:07:27. > :07:28.decision to axe the project The pipeline was meant to transport
:07:29. > :07:36.oil produced from Canadian tar sands in Alberta to the US Gulf coast,
:07:37. > :07:39.but the Obama administration said it would harm the fight
:07:40. > :07:53.against climate change. We will talk about Marks Spencer
:07:54. > :07:57.shortly. But we cannot get away from China. Some experts out there
:07:58. > :08:01.suggesting that what we are seeing with China, that this could spur a
:08:02. > :08:11.further worrying picture of deflation. Because of the rate drop,
:08:12. > :08:14.it could be more deflation, that is a problem. Consumers think the price
:08:15. > :08:16.will drop. You put off purchases, and it is a
:08:17. > :08:28.visual downward cycle. We have had an update from Marks
:08:29. > :08:37.Spencer. Sales over the crucial Christmas period were down. 2.5%
:08:38. > :08:44.fall. Crucially, you can see, the boss is off. He said he will retire.
:08:45. > :08:52.The Chief Executive will retire this year. He will be replaced by
:08:53. > :08:56.somebody in the company who has been there for a long time.
:08:57. > :08:59.Trading on the main Chinese stock markets has been suspended -
:09:00. > :09:14.What impact is it have cost -- we know it is not having a good impact.
:09:15. > :09:24.This is about investors being worried about what the central bank
:09:25. > :09:28.is going to do. Suggesting that the Chinese economy is not doing well.
:09:29. > :09:33.That's right and as a result it has been a turbulent day on the markets
:09:34. > :09:36.throughout the region. Following the shock news this morning that the
:09:37. > :09:40.mainland Chinese market would be shocked all day after the
:09:41. > :09:44.government's new circuit breaker mechanisms kick in. This is for the
:09:45. > :09:48.second time in a week. Within half an hour early morning trading on the
:09:49. > :09:52.stocks in China had fallen by a whopping 7%. That was when trading
:09:53. > :10:00.was suspended for the day, as you said, because Chinese authorities
:10:01. > :10:05.devalued the yuan. It sparked off worries among investors. They were
:10:06. > :10:09.very nervous about what they said about the state of the Chinese
:10:10. > :10:13.economy. As a result, currencies have fallen, as well as stock
:10:14. > :10:18.markets. In Hong Kong, Japan, Singapore, in Australia stocks lost
:10:19. > :10:27.$33 billion of its market value today. Thanks throw much. What a
:10:28. > :10:36.week it has been. The holiday seem a long time ago.
:10:37. > :10:51.Chinese shares falling. The weakening of the yuan has been
:10:52. > :10:55.fanning the fires. All of this comes on top of regional tensions after
:10:56. > :11:02.yesterday North Korea claimed it had a successful hydrogen bomb test.
:11:03. > :11:07.This is why the numbers are red. This is how Europe is looking. Three
:11:08. > :11:12.days into the year... The Frankfurt Dax losing about 5%, you can see it
:11:13. > :11:20.is down another 3% today. The FTSE 100 is down almost 3%. All of that
:11:21. > :11:24.on breast is enough to wipe $2.5 trillion off the value of global
:11:25. > :11:33.stocks in the first six days of the year. -- all of that unrest. We now
:11:34. > :11:37.have the details from New York. The markets have taken a beating this
:11:38. > :11:41.week off plunging oil prices and more concerned that the world's
:11:42. > :11:45.second-largest economy, China, is slowing down even more than
:11:46. > :11:51.anticipated. Will Cirstea bring a rally, or another headshaking day on
:11:52. > :11:55.Wall Street? -- will this bring a. The number of Americans filing for
:11:56. > :12:03.unemployment fell last week to 275,000, from 287,000, it is
:12:04. > :12:09.expected. Wall Street is likely to disappoint investors, a quarter
:12:10. > :12:28.review is expected to be below expected.
:12:29. > :12:31.Joining us is Bronwyn Curtis from the Society of Business Economists.
:12:32. > :12:42.Happy New Year. Let's start with the Chinese story. $2.5 trillion wiped
:12:43. > :12:47.off the global markets because of the worries over in China. Help us
:12:48. > :12:51.out, it is not so much the rest of the markets are looking at the
:12:52. > :12:57.Chinese markets, it is the story behind that, it is the economy,
:12:58. > :13:02.right? The Chinese economy. It isn't just the Chinese economy. Clearly
:13:03. > :13:06.this is the biggest worry that the financial markets have at the
:13:07. > :13:12.moment. Global growth, actually, in 2015 was the weakest since the
:13:13. > :13:16.crisis. In other words, you know, we are not seeing that pick up in
:13:17. > :13:23.global growth we are expecting. You look at the US, we have a rate hike,
:13:24. > :13:29.remember, back in December? Yeah. The minutes came out last night. The
:13:30. > :13:34.decision was actually closer than we anticipated. I think the markets are
:13:35. > :13:36.nervous. The hedge fund is, well-established hedge funds, and
:13:37. > :13:41.there was one overnight giving back money to the investors, these are
:13:42. > :13:46.hedge funds that have made a lot of money for investors. Everyone is
:13:47. > :13:52.very nervous. We will hear from George Osborne later today. He is
:13:53. > :13:55.going to talk about whether we are feeling more complacent about the
:13:56. > :13:59.economy, and whether we think we are over the worst, things are fine,
:14:00. > :14:02.things can go back to the way they were before. But there is also a
:14:03. > :14:07.warning that there are still a lot of work to do that we shouldn't be
:14:08. > :14:11.complacent. But that is the general feeling, isn't it? It isn't as bad
:14:12. > :14:18.as 2009, 2010, things are picking up, we can take the foot of the
:14:19. > :14:23.pedal, but we can't do can we? -- foot off. I don't think we can. We
:14:24. > :14:28.have seen a series of weak data coming out of the UK. George
:14:29. > :14:35.Osborne's number of 2.4% growth for 2015 maybe closer to 2% by the time
:14:36. > :14:41.we get the revisions. That is what we are worrying about. He is saying,
:14:42. > :14:46.look, austerity, we cannot just stop it. Tax revenues may not come in, we
:14:47. > :14:49.may not have the money. We have to be very careful. I think he is
:14:50. > :14:55.right. You just have to have a look at the first week of the markets,
:14:56. > :14:58.you know, tomorrow we have the big jobs numbers coming out. Nobody is
:14:59. > :15:02.talking about it at the moment because everybody is focused on
:15:03. > :15:05.China, which is clearly more important. But if we got a bad
:15:06. > :15:11.number there, that would just hit things again. Happy New Year,
:15:12. > :15:13.everybody! You know the routine, you will take us through the newspapers
:15:14. > :15:16.in a bit. How The Force is awakening
:15:17. > :15:20.box office receipts... The latest Star Wars movie smashes
:15:21. > :15:25.a new record being the highest But with the rise of
:15:26. > :15:29.streaming and downloads - do we still need the big
:15:30. > :15:31.screen experience? Boss of cinema chain
:15:32. > :15:34.IMAX will join us live. You're with Business
:15:35. > :15:41.Live from BBC News. Boss Marc Bolland is to retire
:15:42. > :15:45.from the retailer - as the firm reported
:15:46. > :15:51.third-quarter sales, including that crucial
:15:52. > :16:01.Christmas period, down 5.8%. So, two stories here, one is the
:16:02. > :16:05.figures for Christmas, we have been looking at those closely for all of
:16:06. > :16:09.the big retailers, but news this morning that Marc Bolland is
:16:10. > :16:13.leaving? That was a surprise, back in October, he said he was going to
:16:14. > :16:18.stay for another two years, now we have found out that he will step
:16:19. > :16:21.down in April. He's been there six years, coming from supermarket
:16:22. > :16:28.Morrisons. As he's been here, the food business at M has thrived, it
:16:29. > :16:32.did well in figures today, but it is the core clothing element, general
:16:33. > :16:37.merchandise is down, nearly 6%. Worse than expected, despite
:16:38. > :16:41.hundreds of millions being spent on revamps. He has not moved the
:16:42. > :16:47.needle, announcing he will go. I always feel bad for executives when
:16:48. > :16:52.share prices go up on the day that they announced they will leave, but
:16:53. > :16:57.I think investors lost faith, David Cumming, he was on notice from last
:16:58. > :17:00.year, today the axe has fallen. He maintains it was his decision, he
:17:01. > :17:08.gave it to the board at the end of last year, he's off in April and
:17:09. > :17:15.will be succeeded by Steve wrote, a 25 year veteran at M, he knows
:17:16. > :17:18.what a difficult job he has. How do the M numbers compare to other
:17:19. > :17:25.retailers we have seen so far this year? It's interesting you say that,
:17:26. > :17:29.we have the Next numbers, they were a little soft, not as bad as these,
:17:30. > :17:33.they blame the weather. M said the poor performance was partly due to
:17:34. > :17:37.weather, partly to do with stock availability. They cannot do
:17:38. > :17:40.anything about the weather but can do stuff about stock availability,
:17:41. > :17:42.that looks like a management issue and they have seen changes today.
:17:43. > :17:53.Thank you for joining us. If you want more on any of those
:17:54. > :17:58.stories, look at the website. The team not only on the Live page, but
:17:59. > :18:01.they have special coverage of news from Marks Spencer, all of the
:18:02. > :18:05.figures and results you need to know, and details on the man who
:18:06. > :18:13.will take over. The picture of Marc Bolland. Whether he has done enough
:18:14. > :18:17.to turn it around, it is down to the new guide to turn around fortunes
:18:18. > :18:21.for the retailer. Full coverage on the BBC website.
:18:22. > :18:24.You're watching Business Live - our top story: Asian markets
:18:25. > :18:26.in turmoil as Chinese share trading is suspended for a second
:18:27. > :18:32.The move sends key commodities lower - Brent crude hits a fresh 11 year
:18:33. > :18:48.It's very close to a 12 year low. Looking at the numbers, the FTSE 100
:18:49. > :18:49.is down 2.3%. Certainly, not a great start to the
:18:50. > :18:51.year. The entertainment headlines have
:18:52. > :18:53.been dominated by the huge success of the new Star Wars
:18:54. > :18:56.movie at the box office. But we live in an age of streaming
:18:57. > :18:59.and downloading movies So how can cinemas keep on making
:19:00. > :19:06.big money from hit movies? Our next guest knows
:19:07. > :19:11.a thing or two about that. He's one of the big bosses
:19:12. > :19:15.at the IMAX chain of movie theatres. Since it started in 1970,
:19:16. > :19:19.the company has expanded to operate It now has more than 1,000
:19:20. > :19:25.cinemas around the world. It reckons that since it launched,
:19:26. > :19:28.more than a billion people have China features prominently
:19:29. > :19:34.in its future - it's Chinese subsidiary last year started trading
:19:35. > :19:37.on the Hong Kong Stock Exchange. Andrew Cripps is the boss
:19:38. > :19:47.of Europe Middle East and Africa Welcome to the programme. Can we
:19:48. > :19:51.begin with that challenge, I guess? I don't if you would call it this,
:19:52. > :19:56.it is an interesting time for the business? We have so much content
:19:57. > :20:02.out there, we have Netflix telling us that recent announcement that it
:20:03. > :20:05.is launching a new 130 -- it is launching in 130 countries, we watch
:20:06. > :20:10.at home and on the go, it is a challenge for you to get bottoms on
:20:11. > :20:16.seats? Consumers are watching more movies than in any time in history,
:20:17. > :20:20.unable righty of devices, but at IMAX, we show blockbusters in a
:20:21. > :20:24.special environment, at the cinema, people look for an experience. They
:20:25. > :20:28.are willing to pay more for a premium experience, that is why we
:20:29. > :20:32.have seen tremendous growth at IMAX. Does that mean you have to rely on
:20:33. > :20:38.the big films, James Bond and Star Wars? We do show big blockbusters,
:20:39. > :20:45.but movies change, there are more blockbusters, as the size of the
:20:46. > :20:50.global movie going economy grows, there are a lot of blockbusters out
:20:51. > :20:54.there. Are we seeing a shift away from just showing films in a theatre
:20:55. > :20:57.where you sit on seats, it is about the experience and going to the
:20:58. > :21:02.cinema? At everything that goes with it? I suppose you well placed to do
:21:03. > :21:07.that, with big screens and the best sound system. You charge a premium
:21:08. > :21:14.price for it. But also, it's about giving people a reason to go to the
:21:15. > :21:18.cinema,? Yes, they have big plasma screens at home and surround sound,
:21:19. > :21:22.at the cinema, paying a baby-sitter and driving to the multiplex, you
:21:23. > :21:27.want a special experience, I think that is why IMAX has thrived, it is
:21:28. > :21:30.a special experience. Speaking of plasmas at home and the home
:21:31. > :21:34.experience, you guys have a IMAX home product, for about ?2 million,
:21:35. > :21:40.you can get it installed on your house and have IMAX at home! It is
:21:41. > :21:44.quite a niche market... But there is a market? You don't have one! It is
:21:45. > :21:47.designed for high net worth individuals but we have announced a
:21:48. > :21:52.new product launched in China and the Middle East, it is called the
:21:53. > :22:06.NACRO one Palais, priced at $451,000. -- the IMAX Pele will stop
:22:07. > :22:10.how do you advance your product? Is it the quality of the screen or the
:22:11. > :22:15.sound? You look at a screen now and go, how much better can they get?
:22:16. > :22:19.Technology is an important component in making sure that consumers
:22:20. > :22:23.continue to go to the cinema, we have introduced laser, at Empire
:22:24. > :22:29.Leicester Square London, you can see IMAX inlays, we have a new surround
:22:30. > :22:35.sound system, it is immersion in the cinema experience and making it more
:22:36. > :22:39.special. What about you? How did you get into the entertainment industry?
:22:40. > :22:44.Did you always have a desire? I wanted to be a surgeon! Did you
:22:45. > :22:48.really?! 30 years in the movie business, I grew up in Japan, I
:22:49. > :22:54.speak Japanese, I worked for Paramount for 25 years, and now IMAX
:22:55. > :22:58.in the last four years. From a surgeon to that? It's incredible.
:22:59. > :23:04.When we talk about the number of people coming to the cinema, you
:23:05. > :23:08.talk about the demand. How related is that to the state of the wider
:23:09. > :23:14.economy? As a premium product, people feel a little worse off than
:23:15. > :23:19.their pocket and say they will not do IMAX today... Is there a
:23:20. > :23:24.correlation? Cinemas have been resilient against economic times, at
:23:25. > :23:28.IMAX, we are an affordable luxury. People may postpone a vacation or
:23:29. > :23:32.not buy a new car, they still need entertainment. They still want good
:23:33. > :23:38.quality entertainment. I still don't know why you don't have one of those
:23:39. > :23:43.home systems?! Mates rates? It was a pleasure, good luck with everything.
:23:44. > :23:48.Have you seen the Star Wars film? Yes, I loved it. Have you? I've seen
:23:49. > :23:56.it a few times. Great movie. I have not seen it! Yet the hint? We will
:23:57. > :23:59.get you some IMAX ticket! We are not allowed! -- do you get the hint?
:24:00. > :24:07.Thanks for joining us. Hopefully we can take you to
:24:08. > :24:12.Germany, David Cameron is speaking about events, he is laying out the
:24:13. > :24:15.case for the UK's continuing membership of the EU. He has been
:24:16. > :24:21.speaking to his German counterpart about that relationship that the EU
:24:22. > :24:24.has -- the UK has with Europe. We are waiting for those pictures, but
:24:25. > :24:30.here is a quick reminder of how you can get in touch with us.
:24:31. > :24:36.The business live pages where you can stay ahead with all of the day
:24:37. > :24:39.is breaking business news. We keep you up-to-date with the latest
:24:40. > :24:44.details, with insight and analysis from the BBC's team of editors
:24:45. > :24:52.around the world. We want to hear from you as well, get involved on
:24:53. > :24:59.the BBC business life web -- life web page. You can find us on Twitter
:25:00. > :25:01.and Facebook. On TV and online whenever you need
:25:02. > :25:09.to know. The relationship between Britain and
:25:10. > :25:13.Germany is strong and important, we look at the world in many of the
:25:14. > :25:17.same ways, you know you have two earned money before you spend it,
:25:18. > :25:20.and we know the importance of backing enterprise and business in
:25:21. > :25:24.creating good jobs. We know the importance of the Atlantic Alliance
:25:25. > :25:29.for Security and how important it is, as we enter 2016, that we
:25:30. > :25:33.confront Islamist extremism and terrorism, and do so together. Our
:25:34. > :25:39.relationship is deep and strong, as members of the EU as members of
:25:40. > :25:43.Nato, and the relationship between our parties, parties at the centre
:25:44. > :25:46.right, that has been strong and will continue to be in future. I have
:25:47. > :25:52.really enjoyed the discussion is here today, at the present take --
:25:53. > :25:57.and the presentation I was able to make. I would like to secure the
:25:58. > :26:02.future of Britain in a reformed European Union. But, this reform is
:26:03. > :26:07.vital. Britain does have real issues with the way the EU works today. My
:26:08. > :26:13.negotiation is about dealing with each of those issues. Making sure
:26:14. > :26:17.that we are in full cooperation and working together, but we are not
:26:18. > :26:21.part of an ever deepening political union, making sure Europe is adding
:26:22. > :26:25.to the competitiveness of countries like Britain and Germany, rather
:26:26. > :26:29.than holding back our competitors. Making sure there are fair rules for
:26:30. > :26:32.both countries that are inside of the Eurozone and countries like
:26:33. > :26:37.Britain who will not join the euro zone, but want the euro zone to be a
:26:38. > :26:40.success and make sure that outside of the Eurozone, there are no
:26:41. > :26:45.disadvantages, we are not called upon to support the Eurozone
:26:46. > :26:47.financially. These are important issues, as are the issues of
:26:48. > :26:53.migration and movement across Europe. Britain supports free
:26:54. > :26:58.movement, many British citizens live and work elsewhere in Europe, but we
:26:59. > :27:01.want to make sure that welfare systems, particularly our welfare
:27:02. > :27:06.system, is not an unnatural drawer to Britain, because we feel the
:27:07. > :27:10.pressure of excessive migration that we have had in recent years. We
:27:11. > :27:13.believe these issues can be dealt with, the discussions are going
:27:14. > :27:17.well. They are hard and tough, they are difficult issues but I am
:27:18. > :27:21.confident, with goodwill, and there is good will on all sides, we can
:27:22. > :27:25.bring the negotiations to a conclusion and hold the referendum
:27:26. > :27:29.that we promised in our election manifesto, and we have legislated
:27:30. > :27:37.for in Parliament. In the end, the choices for the British people, but
:27:38. > :27:39.I want to make sure that they have of staying in a reformed European
:27:40. > :27:43.Union. Giving Britain the best of both worlds. Part of Europe for
:27:44. > :27:47.trade and cooperation, working together over security challenges
:27:48. > :27:51.that we face, helping to keep our people safe, particularly in the
:27:52. > :27:55.difficult and dangerous world we face, but not joining the euro, the
:27:56. > :28:00.currency many have in the European Union. Not being part of the
:28:01. > :28:03.Schengen no borders agreement, we keep our borders in Britain and will
:28:04. > :28:07.strengthen them, and make sure we address each and every one of the
:28:08. > :28:11.four issues I've raised. I'm even more confident after the excellent
:28:12. > :28:15.discussions I've had here in Bavaria with colleagues in the CSU that
:28:16. > :28:20.these things are possible, not just good for Britain, but good for
:28:21. > :28:24.Europe. Not simply because other countries will benefit from Britain
:28:25. > :28:29.continued to be a member of Europe, but it is important that this
:28:30. > :28:32.organisation shows it has the flexibility of a network, and
:28:33. > :28:36.address concerns of individual members rather than a block. I'm
:28:37. > :28:40.confident we can reach conclusions but it will take a lot of hard work,
:28:41. > :28:46.but I've been heartened by the goodwill I felt from sister party
:28:47. > :28:50.members in the CSU here in Bavaria today. Once again, let me thank you
:28:51. > :28:54.for the warmth of your welcome. I remember coming seven years ago,
:28:55. > :28:56.it's been more pleasurable to come back again and have these
:28:57. > :28:57.discussions with you. Thank