:00:15. > :00:18.All change in the Eurozone for those in the top jobs,
:00:19. > :00:20.but will Angela Merkel buck the trend?
:00:21. > :00:25.We assess her chances of another term as Chancellor and what that
:00:26. > :00:31.Also in the programme, are these the President's men?
:00:32. > :00:33.Some of the biggest names in South Korean business
:00:34. > :00:36.were grilled by politicians on live television about whether they got
:00:37. > :00:43.And, are we about to experience the Santa rally or not?
:00:44. > :00:46.Certainly in the US we saw another record close.
:00:47. > :00:52.Market veteran David Buik is here to share his wisdom.
:00:53. > :00:56.We'll meet the firm that's keeping business, government,
:00:57. > :01:01.But with outsourcing in the spotlight, what role should
:01:02. > :01:05.the private sector play in our public institutions?
:01:06. > :01:10.And as internet giant Amazon gets into the supermarket business,
:01:11. > :01:12.it's removing the checkout from stores and using
:01:13. > :01:15.a computer to keep track of what's in your trolley.
:01:16. > :01:18.But let us know, do you trust tech to tot up your bill?
:01:19. > :01:20.Would you trust an entirely automatic supermarket?
:01:21. > :01:41.Artificial intelligence may be better in this job! Over shopping
:01:42. > :01:43.could be an issue. Send us your thoughts.
:01:44. > :01:49.In the next few hours the German Chancellor Angela Merkel
:01:50. > :01:53.is due to take another step to trying to steer Europe
:01:54. > :01:56.through yet another year of change as she seeks another term as leader
:01:57. > :02:01.2016 has seen upheaval across the continent,
:02:02. > :02:05.with Britain's decision to leave the European Union forcing
:02:06. > :02:11.Other world leaders being replaced include Barack Obama
:02:12. > :02:17.And yesterday, Italy's Matteo Renzi handed in his resignation
:02:18. > :02:21.So can Mrs Merkel stem the flow and win another term leading
:02:22. > :02:26.Prosperity may be key to defeating the populist message
:02:27. > :02:34.Germany is viewed by many as the engine room of the Eurozone.
:02:35. > :02:36.But the latest data shows its economy has
:02:37. > :02:40.been underperforming, with growth halving to just 0.2%
:02:41. > :02:45.Exports are critical, accounting for around 47%
:02:46. > :02:48.of all economic activity, and there are concerns poor economic
:02:49. > :02:52.performance could be exacerbated by the Brexit vote.
:02:53. > :02:59.The United Kingdom is Germany's third-biggest trading partner
:03:00. > :03:01.and there are fears this relationship could suffer when
:03:02. > :03:05.Despite this, Germany has benefited from a flood of cheap money
:03:06. > :03:07.as the European Central Bank continues its landmark
:03:08. > :03:11.$1.9 trillion stimulus package across the Eurozone.
:03:12. > :03:14.This has boosted German exporters by keeping
:03:15. > :03:23.With me is David Owen, who is the chief European economist
:03:24. > :03:41.Let's delve down into what Germany is doing. They are the powerhouse
:03:42. > :03:45.economy, I am interested in what role it will play in a blue Europe,
:03:46. > :03:51.because we are seeing all of this change, where does Germany sit? It
:03:52. > :03:54.has been the reluctant leader. You go back to the beginning of the
:03:55. > :04:00.European project, it was a French/ German axis, and now Germany has
:04:01. > :04:07.become the leader. It is a reluctant leader. The ECB reference this. What
:04:08. > :04:13.is required in Germany and countries like the Netherlands, which have
:04:14. > :04:20.so-called fiscal space, is a major fiscal expansion, which would help
:04:21. > :04:24.everybody, including German boats. There is a debate about whether the
:04:25. > :04:29.ECB is doing enough, and whether Germany is contributing in terms of
:04:30. > :04:32.the balance of power. We have seen a rise in populism, away from the
:04:33. > :04:38.establishment, what role does the ECB have? They are trying to keep
:04:39. > :04:43.the whole thing afloat. If you go back to 2012 the project was in
:04:44. > :04:48.danger of breaking up. The ECB stepped in. You could argue they
:04:49. > :04:54.should have stepped in in 2011. But when they got there, they got there,
:04:55. > :04:58.and they are doing all they can. It is up to other countries,
:04:59. > :05:02.politicians, to take more of a lead on the fiscal side, countries like
:05:03. > :05:07.Germany, on the structural side, countries like France. The ECB has
:05:08. > :05:14.argued they should complete the project for the political union.
:05:15. > :05:18.That should not happen post the financial crisis, because there is
:05:19. > :05:22.this backlash, but what they do need is a much stronger Eurozone economy,
:05:23. > :05:26.which requires more action from Germany on the fiscal side, that
:05:27. > :05:30.will not happen. Is there a gap between France and Germany? There is
:05:31. > :05:39.not enough structural reform in France. It is needed, it has long
:05:40. > :05:44.been needed, and in Italy. The problem is it takes years to bear
:05:45. > :05:49.fruit. They initially create lots of losers, so you need a strong growing
:05:50. > :05:52.economy to push it through, and that is why you need a fiscal response in
:05:53. > :05:59.countries with the fiscal space, including Germany.
:06:00. > :06:03.Amazon has revealed plans for a grocery shop without a checkout,
:06:04. > :06:05.where customers will instead pay for the goods they have
:06:06. > :06:10.The Just Walk Out shopping experience uses the same types
:06:11. > :06:13.of technologies found in self-driving cars.
:06:14. > :06:15.The system detects when items are taken or returned
:06:16. > :06:18.to shelves and tracks them in a virtual shopping trolley.
:06:19. > :06:22.Once the shopper leaves the store, their account will be charged
:06:23. > :06:34.The first shop is due to open in the US early next year.
:06:35. > :06:36.What did you think? Send us your thoughts.
:06:37. > :06:38.Facebook, Microsoft, Twitter and YouTube are collaborating
:06:39. > :06:40.to stop violent extremist images and video being spread
:06:41. > :06:44.The four tech firms plan to create a database that contains "digital
:06:45. > :06:49.The database will be used to screen uploads in order to spot violent
:06:50. > :06:57.or extremist material before it is shared.
:06:58. > :07:02.Some of South Korea's biggest businesses have been questioned
:07:03. > :07:06.in a rare televised hearing as part of a huge corruption inquiry.
:07:07. > :07:10.Samsung, Hyundai Motors and six other firms face accusations
:07:11. > :07:14.they gave millions of dollars to funds linked to the country's
:07:15. > :07:30.She faces impeachment proceedings in relation to the scandal.
:07:31. > :07:35.It is a fascinating debate, a televised discussion, giving
:07:36. > :07:42.evidence about widespread potential corruption. These people do not come
:07:43. > :07:49.out in public, they never give interviews, they live in that world
:07:50. > :07:54.of power and money, hyper money, behind the great glass of black
:07:55. > :07:57.limousines. Just to have them dragooned into Parliament to answer
:07:58. > :08:03.some very tough questions was a spectacle in itself, spectacle is
:08:04. > :08:05.the right word, the photographers were allowed to stay in and they
:08:06. > :08:10.were on their ladders in the assembly room, training and snapping
:08:11. > :08:18.and clicking away throughout the proceedings. It was bizarre. You had
:08:19. > :08:23.the eight most powerful men in South Korea answering questions about
:08:24. > :08:27.whether it was corrupt payments to these funds controlled by a friend
:08:28. > :08:35.of the President. What is expected next on this? And the impeachment on
:08:36. > :08:40.Friday? We will get the vote on impeachment on Friday. The president
:08:41. > :08:43.has indicated she is not going easily. It is not completely clear
:08:44. > :08:50.that the opposition will get the numbers on Friday. The likelihood is
:08:51. > :08:51.that the thing drags on and we get bigger and bigger demonstrations
:08:52. > :09:09.every Saturday. An interesting story, but it has no
:09:10. > :09:14.impact on the markets. A lot of it is to do with what is happening at
:09:15. > :09:19.the United States, the Dow closing on a record high again, the market
:09:20. > :09:24.is throwing off the impact of the Italian turmoil. A mixed picture in
:09:25. > :09:27.Europe, Google talk about Europe in a moment. First, what is ahead on
:09:28. > :09:28.Wall Street. How is the housing
:09:29. > :09:31.market doing in the US? We get an idea when the luxury-home
:09:32. > :09:35.builder Toll Brothers reports. They are expected to report a rise
:09:36. > :09:38.in revenue and profit That has been boosted
:09:39. > :09:43.by higher home sales. The improving job market
:09:44. > :09:45.and a healthy economy We are also expecting some
:09:46. > :09:52.economic data on Tuesday. The Commerce Department will tell us
:09:53. > :09:57.about factory orders for October. New orders for American factory
:09:58. > :10:00.goods are expected to have risen by 2.6% in October after adding just
:10:01. > :10:07.0.3% in September. The trade deficit is
:10:08. > :10:10.expected to have risen That is compared to a deficit
:10:11. > :10:19.of 36.4 billion in September. The trade deficit refers to how much
:10:20. > :10:31.the US imports versus exports. Joining us is David Buik,
:10:32. > :10:48.market analyst, Panmure Gordon. Wasn't that a wonderful skyline.
:10:49. > :10:51.Speaking of twinkly lights, lots of Christmas trees, we are allowed to
:10:52. > :10:57.start talking about a Santa rally, what might it be and why is it not
:10:58. > :11:05.happening yet? We have had it. The Donald Trump rally. That was the
:11:06. > :11:13.relief rally, that he would cut corporation tax and the
:11:14. > :11:20.infrastructure spending. But a lot of sectors took heart from that.
:11:21. > :11:27.record, 10.7% up on the year, having record, 10.7% up on the year, having
:11:28. > :11:32.had a pull back just before, around the time of Brexit and the rest of
:11:33. > :11:35.it. We have covered the Italian referendum, it has already been
:11:36. > :11:41.priced in, because the markets dipped away. This is something that
:11:42. > :11:47.has been dismissed ridiculously easily, because they have a serious
:11:48. > :11:52.problem. If cat does not come in, they will struggle to persuade many
:11:53. > :11:58.of their millions of bondholders to take a real caching on their bonds
:11:59. > :12:06.and convert them into dodgy equity. European banks looking to the Middle
:12:07. > :12:11.East for help. Yes, but Italy is light on fresh capital, the whole
:12:12. > :12:15.area of Europe is 300 billion light. People are not like sheep, they need
:12:16. > :12:20.a good story told to them why should I step up to the plate and invest?
:12:21. > :12:25.You have to give me a good reason. You could see the Deutsche Bank
:12:26. > :12:32.story, the share price went down. That is a serious bank that has got
:12:33. > :12:37.tentacles all over the world, however many bad assets it has, but
:12:38. > :12:40.you have to give somebody a story. Whoever replaces Matteo Renzi will
:12:41. > :12:43.not have that story to be able to sell. We will watch closely.
:12:44. > :12:47.Later in the programme we'll get the Inside Track
:12:48. > :12:52.on what it takes to keep our local governments online.
:12:53. > :12:57.You're with Business Live from BBC News.
:12:58. > :13:00.Big changes to the way England's railways are run could be unveiled
:13:01. > :13:04.later by Transport Secretary Chris Grayling.
:13:05. > :13:07.He wants each rail franchise to be run by joint management teams,
:13:08. > :13:09.including representatives from both the train-operating
:13:10. > :13:21.Theo Leggett is in our Business Newsroom.
:13:22. > :13:31.It is quite a reversal of what we heard about the break-up. It is an
:13:32. > :13:34.ideological change. In the mid-90s, when British rail was privatised, we
:13:35. > :13:39.had train operating companies which were responsible for operating the
:13:40. > :13:41.trains and the responsibility for looking after the track and the
:13:42. > :13:47.signalling and that was initially passed onto Railtrack and later got
:13:48. > :13:51.taken over by Network Rail. At the time the idea was that it is better
:13:52. > :13:55.to have a separate infrastructure operator, so that if you have got
:13:56. > :13:59.different train companies competing to operate services on the same
:14:00. > :14:03.line, there is no conflict of interest, it is not one of them
:14:04. > :14:08.having responsibility for the track, but the pub that people have
:14:09. > :14:11.identified is there is a lack of coordination between them, and
:14:12. > :14:18.sometimes they are arguing over who is responsible for delays. Chris
:14:19. > :14:22.Grayling says Network Rail is too monolithic, too big, not interested
:14:23. > :14:25.in what goes on at a local level, so he wants responsible people running
:14:26. > :14:31.each franchise to be joined up tween the train operating company and
:14:32. > :14:34.Network Rail, so they have a shared incentive to work together. Will
:14:35. > :14:40.passengers notice a big difference? That depends if the system works. If
:14:41. > :14:45.there is better coordination and if delays are looked after, if they are
:14:46. > :14:48.reduced, if the site work together, has just probably will notice a
:14:49. > :14:57.difference. We carry on, they will not.
:14:58. > :14:58.Do take a look at our website, there are many other stories on their
:14:59. > :15:09.today. Various things going on. More on the coverage. Let me take
:15:10. > :15:12.you to the website. We're going to have a look at everything that's on
:15:13. > :15:15.there and you will see the Business Live page updated throughout the
:15:16. > :15:21.day. All you need to know related to what we'll hear from the Transport
:15:22. > :15:25.Secretary, Chris Grayling. The story is about spread bet betters. They
:15:26. > :15:32.are really dragging down the FTSE 250.
:15:33. > :15:34.They're pulling down the markets the small early medium sized companies
:15:35. > :15:36.the FTSE 250. Our top story, Germany's Angela
:15:37. > :15:41.Merkel is seeking another term as head of her CDU party
:15:42. > :15:43.as financial markets look for signs She is talking to her party today.
:15:44. > :15:53.It is a critical speech for her. A quick look at how
:15:54. > :16:01.markets are faring. No sign of that rally as we approach
:16:02. > :16:05.the Christmas holidays for the markets. The traders are expected to
:16:06. > :16:10.get an early break. Normally about this time of year we would see
:16:11. > :16:15.markets ticking up a bit ahead of the extended holiday. No sign of
:16:16. > :16:18.that. Santa is not on his way! Don't say that for anyone listening.
:16:19. > :16:28.He is coming later. He is coming. Now, think of the word "outsourcing"
:16:29. > :16:31.and what image does it conjure up? Good for cutting costs
:16:32. > :16:32.and improving efficiency, or endless call centres
:16:33. > :16:34.and poor service? It probably depends whether you're
:16:35. > :16:36.a customer or a business. But our next guest
:16:37. > :16:38.says that is changing. Civica, has its HQ in the UK,
:16:39. > :16:41.but operates in 30 different locations around the world including
:16:42. > :16:43.Australia, New Zealand, It focuses on local government,
:16:44. > :16:50.libraries, schools and hospitals. It works with 900 government
:16:51. > :17:01.organisations around Its aim is to provide
:17:02. > :17:11.the technology, software and services needed to help
:17:12. > :17:13.local government That's the theory but what does
:17:14. > :17:16.it take to make sure Wayne Story is the Chief
:17:17. > :17:22.Executive of Civica. I'm interested in the debate we
:17:23. > :17:27.raised in the introduction in the role that private sector businesses
:17:28. > :17:31.play in the public sector. It is fair to say as soon as you hear the
:17:32. > :17:34.words outsourcing, you think it will take me forever to get through on
:17:35. > :17:37.the phone and something will go wrong and the organisation that
:17:38. > :17:39.you're dealing with, blames it on somebody else, is that a fair
:17:40. > :17:45.assessment? That's an unfair assessment. Look, we're a technology
:17:46. > :17:50.company and our role in working with organisations is to support them.
:17:51. > :17:53.We're going through unprecedented change in Local Government, national
:17:54. > :17:57.Government, the public services, and private sector. What we do is
:17:58. > :18:03.support organisations and take them on a journey. We don't focus on
:18:04. > :18:07.outsourcing per se, we are about technology, about digital
:18:08. > :18:11.transformation and outsourcing. Digital transformation will over
:18:12. > :18:14.time support organisations to improve their interactions with the
:18:15. > :18:19.customers and from our prospective it is a great way for a back office
:18:20. > :18:24.and a front office and a customer, or a citizen, to be able to interact
:18:25. > :18:27.and it is a really exciting time. I know here in the UK and you
:18:28. > :18:33.operate in many countries around the world, but certainly in the UK, when
:18:34. > :18:36.we talk about the public sector outsourcing elements especially
:18:37. > :18:38.technology, everybody just assumes disaster ensues and some technology
:18:39. > :18:43.firm is just cashing in all the money from the NHS, but not really
:18:44. > :18:46.making it work, you know, as a user, as a patient, you find no one is
:18:47. > :18:50.talking to each other, your information is all over the shop and
:18:51. > :18:56.may not be secure. We're cynical about it. How do you change our mind
:18:57. > :19:03.on that? There has been so many disaster stories? We work typically
:19:04. > :19:06.with trusts, health authorities, care home groups, etcetera,
:19:07. > :19:10.etcetera, the innovation that's happening in the NHS is huge and of
:19:11. > :19:14.course, because it is such a big organisation, it happens in lots of
:19:15. > :19:19.different places. We tend to work at a local level where we are starting
:19:20. > :19:24.to see digital transformation come through, a lot more connection of
:19:25. > :19:28.records and a lot more electronic information happening and it is a
:19:29. > :19:32.long journey. This is a big organisation with lots of demands on
:19:33. > :19:36.it, and what we're finding there is innovation and we are right at the
:19:37. > :19:40.front of that and we see it as being a great opportunity to continue. It
:19:41. > :19:43.is easy for us to think that all of this should be really simple,
:19:44. > :19:47.putting records online and being able to access it. We take it for
:19:48. > :19:50.granted. What's in it for the businesses? It is clearly a huge
:19:51. > :19:55.challenge. It involves getting you guys involved to do this. What's in
:19:56. > :19:58.it apart from just cutting costs? It is about being able to access
:19:59. > :20:04.information as you said. Security is a big part of this. So paper records
:20:05. > :20:08.are not as secure electronic records, having information at the
:20:09. > :20:12.fingertip, automatication, a big part of what needs to go on is to
:20:13. > :20:17.automate things, not because it is cheaper, but it makes that
:20:18. > :20:25.engagement much better. It is getting the head count down in these
:20:26. > :20:28.Local Governments and organisations because community and technology is
:20:29. > :20:32.doing jobs that humans used to do. It is not just the public sector.
:20:33. > :20:36.Most organisations are in transformation. They want to get
:20:37. > :20:42.into more digital way of operating, where they can use technology to
:20:43. > :20:47.drive better efficiencies, do things quicker, faster, as we all expect
:20:48. > :20:50.and by doing that, of course, automate things. There is a
:20:51. > :20:56.consequence, there are some people who are displaced, but in many
:20:57. > :20:59.organisations they transfer more sfrtion to the front line, surely
:21:00. > :21:00.that's what we're looking for. Wayne, thank you. Best of luck with
:21:01. > :21:04.it. Wayne Story there. China's streets were once
:21:05. > :21:07.dominated by the push bike. But two young entrepreneurs
:21:08. > :21:10.are hoping to change that but persuading some
:21:11. > :21:12.of their country's most powerful tech giants to invest millions
:21:13. > :21:23.of yuan into bike hire schemes. Both of these start-ups have
:21:24. > :21:24.drawn huge investment In the case of Mobike it is ten cent
:21:25. > :21:33.which runs the social media app This company has received a cash
:21:34. > :21:52.injection from a taxi hailing app. If I can hire this bike out
:21:53. > :21:55.for 30 cents an hour, you imagine that's an awful lot
:21:56. > :21:58.of rentals for these companies I have arrived at Mobike's Beijing
:21:59. > :22:03.headquarters and spoke to the company's founder
:22:04. > :22:15.about their plans. For these companies to succeed,
:22:16. > :22:21.they're counting on their cool looking steeds making push bike
:22:22. > :22:24.riding hip amongst China's It could even be the car
:22:25. > :22:31.which is the reason for their success because sometimes
:22:32. > :22:52.this is the only way to get around He should have a helmet on. Did he
:22:53. > :22:57.do a risk assessment. Dominic is here.
:22:58. > :23:04.We have been talking about the new shopping experience Amazon is
:23:05. > :23:09.testing out. What happens in the States in Amazon comes here. Amazon
:23:10. > :23:13.is building a giant fresh food warehouse on the outskirts of London
:23:14. > :23:17.and it will be a really big competitor to the likes of Tesco's,
:23:18. > :23:21.Sainsbury's and Asda. Life is hard enough for those companies as it is,
:23:22. > :23:26.it is going to get a lot harder when Amazon comes in. Amazon has a
:23:27. > :23:33.history of getting 20% market share in any sector in chooses. The tough
:23:34. > :23:40.element, we have been asking people and thank you for your messages.
:23:41. > :23:46.Russell says it removes more jobs for people in the process. That's
:23:47. > :23:50.not necessarily new. Another viewer says higher unemployment. Rob says,
:23:51. > :23:55."It opens the door to more cybercrime. Could someone steal your
:23:56. > :24:01.bar code?" Michael says, "I trust the computer more than a human."
:24:02. > :24:05.That's the issue, it is a challenge for the retailers to keep catching
:24:06. > :24:11.up, but Amazon is a big player in groceries. Not in the k. The Amazon
:24:12. > :24:18.Fresh service in the US has not been the success they hoped. Wal-Mart are
:24:19. > :24:24.trying to catch up and it is racing to catch Amazon, but it is coming.
:24:25. > :24:28.Now clicks and head to the bricks? Do your clicks and go to the bricks.
:24:29. > :24:33.They will have 2,000 stores in America. That's pretty big.
:24:34. > :24:38.Let's talk about Brexit once again. This is in the FT, Hammond and Davis
:24:39. > :24:42.promise City a smooth and orderly Brexit. We've heard Brexit described
:24:43. > :24:48.as all sorts of things, but smooth and orderly is probably not one of
:24:49. > :24:52.them! Everyone has been talking about manufacturing and the highest
:24:53. > :24:57.profile case is Nissan which made noises and got a special deal. Well,
:24:58. > :25:00.they haven't got it? We don't know the details of what was agreed, but
:25:01. > :25:08.they pledged to continue in the north-east. The city is a giant tax
:25:09. > :25:12.centre. Nobody talks about the threat to the City from Brexit or
:25:13. > :25:16.what they have said is confusing and difficult. The City finds it hard to
:25:17. > :25:19.speak. There has been some speeches, but they want things the way it is.
:25:20. > :25:22.That's unlikely to continue, I don't think.
:25:23. > :25:25.Watch this space. Dominic nice to see you. Thank you.
:25:26. > :25:30.That's it from us today. I'm here tomorrow. I will be more on the ball
:25:31. > :25:40.tomorrow, I promise. We hope! See you soon. Bye-bye.
:25:41. > :25:46.Good morning. Before milder weather spills across the whole of the
:25:47. > :25:49.country, today is very much transition day. We have had frost
:25:50. > :25:55.around this morning and we've got fog around too. Now, we started off
:25:56. > :25:56.with temperatures typically about minus five Celsius across northern