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All change in the Eurozone for those in the top jobs,
but will Angela Merkel buck the trend?
We assess her chances of another term as Chancellor and what that
Also in the programme, are these the President's men?
Some of the biggest names in South Korean business
were grilled by politicians on live television about whether they got
And, are we about to experience the Santa rally or not?
Certainly in the US we saw another record close.
Market veteran David Buik is here to share his wisdom.
We'll meet the firm that's keeping business, government,
But with outsourcing in the spotlight, what role should
the private sector play in our public institutions?
And as internet giant Amazon gets into the supermarket business,
it's removing the checkout from stores and using
a computer to keep track of what's in your trolley.
But let us know, do you trust tech to tot up your bill?
Would you trust an entirely automatic supermarket?
Artificial intelligence may be better in this job! Over shopping
could be an issue. Send us your thoughts.
In the next few hours the German Chancellor Angela Merkel
is due to take another step to trying to steer Europe
through yet another year of change as she seeks another term as leader
2016 has seen upheaval across the continent,
with Britain's decision to leave the European Union forcing
Other world leaders being replaced include Barack Obama
And yesterday, Italy's Matteo Renzi handed in his resignation
So can Mrs Merkel stem the flow and win another term leading
Prosperity may be key to defeating the populist message
Germany is viewed by many as the engine room of the Eurozone.
But the latest data shows its economy has
been underperforming, with growth halving to just 0.2%
Exports are critical, accounting for around 47%
of all economic activity, and there are concerns poor economic
performance could be exacerbated by the Brexit vote.
The United Kingdom is Germany's third-biggest trading partner
and there are fears this relationship could suffer when
Despite this, Germany has benefited from a flood of cheap money
as the European Central Bank continues its landmark
$1.9 trillion stimulus package across the Eurozone.
This has boosted German exporters by keeping
With me is David Owen, who is the chief European economist
Let's delve down into what Germany is doing. They are the powerhouse
economy, I am interested in what role it will play in a blue Europe,
because we are seeing all of this change, where does Germany sit? It
has been the reluctant leader. You go back to the beginning of the
European project, it was a French/ German axis, and now Germany has
become the leader. It is a reluctant leader. The ECB reference this. What
is required in Germany and countries like the Netherlands, which have
so-called fiscal space, is a major fiscal expansion, which would help
everybody, including German boats. There is a debate about whether the
ECB is doing enough, and whether Germany is contributing in terms of
the balance of power. We have seen a rise in populism, away from the
establishment, what role does the ECB have? They are trying to keep
the whole thing afloat. If you go back to 2012 the project was in
danger of breaking up. The ECB stepped in. You could argue they
should have stepped in in 2011. But when they got there, they got there,
and they are doing all they can. It is up to other countries,
politicians, to take more of a lead on the fiscal side, countries like
Germany, on the structural side, countries like France. The ECB has
argued they should complete the project for the political union.
That should not happen post the financial crisis, because there is
this backlash, but what they do need is a much stronger Eurozone economy,
which requires more action from Germany on the fiscal side, that
will not happen. Is there a gap between France and Germany? There is
not enough structural reform in France. It is needed, it has long
been needed, and in Italy. The problem is it takes years to bear
fruit. They initially create lots of losers, so you need a strong growing
economy to push it through, and that is why you need a fiscal response in
countries with the fiscal space, including Germany.
Amazon has revealed plans for a grocery shop without a checkout,
where customers will instead pay for the goods they have
The Just Walk Out shopping experience uses the same types
of technologies found in self-driving cars.
The system detects when items are taken or returned
to shelves and tracks them in a virtual shopping trolley.
Once the shopper leaves the store, their account will be charged
The first shop is due to open in the US early next year.
What did you think? Send us your thoughts.
Facebook, Microsoft, Twitter and YouTube are collaborating
to stop violent extremist images and video being spread
The four tech firms plan to create a database that contains "digital
The database will be used to screen uploads in order to spot violent
or extremist material before it is shared.
Some of South Korea's biggest businesses have been questioned
in a rare televised hearing as part of a huge corruption inquiry.
Samsung, Hyundai Motors and six other firms face accusations
they gave millions of dollars to funds linked to the country's
She faces impeachment proceedings in relation to the scandal.
It is a fascinating debate, a televised discussion, giving
evidence about widespread potential corruption. These people do not come
out in public, they never give interviews, they live in that world
of power and money, hyper money, behind the great glass of black
limousines. Just to have them dragooned into Parliament to answer
some very tough questions was a spectacle in itself, spectacle is
the right word, the photographers were allowed to stay in and they
were on their ladders in the assembly room, training and snapping
and clicking away throughout the proceedings. It was bizarre. You had
the eight most powerful men in South Korea answering questions about
whether it was corrupt payments to these funds controlled by a friend
of the President. What is expected next on this? And the impeachment on
Friday? We will get the vote on impeachment on Friday. The president
has indicated she is not going easily. It is not completely clear
that the opposition will get the numbers on Friday. The likelihood is
that the thing drags on and we get bigger and bigger demonstrations
every Saturday. An interesting story, but it has no
impact on the markets. A lot of it is to do with what is happening at
the United States, the Dow closing on a record high again, the market
is throwing off the impact of the Italian turmoil. A mixed picture in
Europe, Google talk about Europe in a moment. First, what is ahead on
Wall Street. How is the housing
market doing in the US? We get an idea when the luxury-home
builder Toll Brothers reports. They are expected to report a rise
in revenue and profit That has been boosted
by higher home sales. The improving job market
and a healthy economy We are also expecting some
economic data on Tuesday. The Commerce Department will tell us
about factory orders for October. New orders for American factory
goods are expected to have risen by 2.6% in October after adding just
0.3% in September. The trade deficit is
expected to have risen That is compared to a deficit
of 36.4 billion in September. The trade deficit refers to how much
the US imports versus exports. Joining us is David Buik,
market analyst, Panmure Gordon. Wasn't that a wonderful skyline.
Speaking of twinkly lights, lots of Christmas trees, we are allowed to
start talking about a Santa rally, what might it be and why is it not
happening yet? We have had it. The Donald Trump rally. That was the
relief rally, that he would cut corporation tax and the
infrastructure spending. But a lot of sectors took heart from that.
record, 10.7% up on the year, having record, 10.7% up on the year, having
had a pull back just before, around the time of Brexit and the rest of
it. We have covered the Italian referendum, it has already been
priced in, because the markets dipped away. This is something that
has been dismissed ridiculously easily, because they have a serious
problem. If cat does not come in, they will struggle to persuade many
of their millions of bondholders to take a real caching on their bonds
and convert them into dodgy equity. European banks looking to the Middle
East for help. Yes, but Italy is light on fresh capital, the whole
area of Europe is 300 billion light. People are not like sheep, they need
a good story told to them why should I step up to the plate and invest?
You have to give me a good reason. You could see the Deutsche Bank
story, the share price went down. That is a serious bank that has got
tentacles all over the world, however many bad assets it has, but
you have to give somebody a story. Whoever replaces Matteo Renzi will
not have that story to be able to sell. We will watch closely.
Later in the programme we'll get the Inside Track
on what it takes to keep our local governments online.
You're with Business Live from BBC News.
Big changes to the way England's railways are run could be unveiled
later by Transport Secretary Chris Grayling.
He wants each rail franchise to be run by joint management teams,
including representatives from both the train-operating
Theo Leggett is in our Business Newsroom.
It is quite a reversal of what we heard about the break-up. It is an
ideological change. In the mid-90s, when British rail was privatised, we
had train operating companies which were responsible for operating the
trains and the responsibility for looking after the track and the
signalling and that was initially passed onto Railtrack and later got
taken over by Network Rail. At the time the idea was that it is better
to have a separate infrastructure operator, so that if you have got
different train companies competing to operate services on the same
line, there is no conflict of interest, it is not one of them
having responsibility for the track, but the pub that people have
identified is there is a lack of coordination between them, and
sometimes they are arguing over who is responsible for delays. Chris
Grayling says Network Rail is too monolithic, too big, not interested
in what goes on at a local level, so he wants responsible people running
each franchise to be joined up tween the train operating company and
Network Rail, so they have a shared incentive to work together. Will
passengers notice a big difference? That depends if the system works. If
there is better coordination and if delays are looked after, if they are
reduced, if the site work together, has just probably will notice a
difference. We carry on, they will not.
Do take a look at our website, there are many other stories on their
today. Various things going on. More on the coverage. Let me take
you to the website. We're going to have a look at everything that's on
there and you will see the Business Live page updated throughout the
day. All you need to know related to what we'll hear from the Transport
Secretary, Chris Grayling. The story is about spread bet betters. They
are really dragging down the FTSE 250.
They're pulling down the markets the small early medium sized companies
the FTSE 250. Our top story, Germany's Angela
Merkel is seeking another term as head of her CDU party
as financial markets look for signs She is talking to her party today.
It is a critical speech for her. A quick look at how
markets are faring. No sign of that rally as we approach
the Christmas holidays for the markets. The traders are expected to
get an early break. Normally about this time of year we would see
markets ticking up a bit ahead of the extended holiday. No sign of
that. Santa is not on his way! Don't say that for anyone listening.
He is coming later. He is coming. Now, think of the word "outsourcing"
and what image does it conjure up? Good for cutting costs
and improving efficiency, or endless call centres
and poor service? It probably depends whether you're
a customer or a business. But our next guest
says that is changing. Civica, has its HQ in the UK,
but operates in 30 different locations around the world including
Australia, New Zealand, It focuses on local government,
libraries, schools and hospitals. It works with 900 government
organisations around Its aim is to provide
the technology, software and services needed to help
local government That's the theory but what does
it take to make sure Wayne Story is the Chief
Executive of Civica. I'm interested in the debate we
raised in the introduction in the role that private sector businesses
play in the public sector. It is fair to say as soon as you hear the
words outsourcing, you think it will take me forever to get through on
the phone and something will go wrong and the organisation that
you're dealing with, blames it on somebody else, is that a fair
assessment? That's an unfair assessment. Look, we're a technology
company and our role in working with organisations is to support them.
We're going through unprecedented change in Local Government, national
Government, the public services, and private sector. What we do is
support organisations and take them on a journey. We don't focus on
outsourcing per se, we are about technology, about digital
transformation and outsourcing. Digital transformation will over
time support organisations to improve their interactions with the
customers and from our prospective it is a great way for a back office
and a front office and a customer, or a citizen, to be able to interact
and it is a really exciting time. I know here in the UK and you
operate in many countries around the world, but certainly in the UK, when
we talk about the public sector outsourcing elements especially
technology, everybody just assumes disaster ensues and some technology
firm is just cashing in all the money from the NHS, but not really
making it work, you know, as a user, as a patient, you find no one is
talking to each other, your information is all over the shop and
may not be secure. We're cynical about it. How do you change our mind
on that? There has been so many disaster stories? We work typically
with trusts, health authorities, care home groups, etcetera,
etcetera, the innovation that's happening in the NHS is huge and of
course, because it is such a big organisation, it happens in lots of
different places. We tend to work at a local level where we are starting
to see digital transformation come through, a lot more connection of
records and a lot more electronic information happening and it is a
long journey. This is a big organisation with lots of demands on
it, and what we're finding there is innovation and we are right at the
front of that and we see it as being a great opportunity to continue. It
is easy for us to think that all of this should be really simple,
putting records online and being able to access it. We take it for
granted. What's in it for the businesses? It is clearly a huge
challenge. It involves getting you guys involved to do this. What's in
it apart from just cutting costs? It is about being able to access
information as you said. Security is a big part of this. So paper records
are not as secure electronic records, having information at the
fingertip, automatication, a big part of what needs to go on is to
automate things, not because it is cheaper, but it makes that
engagement much better. It is getting the head count down in these
Local Governments and organisations because community and technology is
doing jobs that humans used to do. It is not just the public sector.
Most organisations are in transformation. They want to get
into more digital way of operating, where they can use technology to
drive better efficiencies, do things quicker, faster, as we all expect
and by doing that, of course, automate things. There is a
consequence, there are some people who are displaced, but in many
organisations they transfer more sfrtion to the front line, surely
that's what we're looking for. Wayne, thank you. Best of luck with
it. Wayne Story there. China's streets were once
dominated by the push bike. But two young entrepreneurs
are hoping to change that but persuading some
of their country's most powerful tech giants to invest millions
of yuan into bike hire schemes. Both of these start-ups have
drawn huge investment In the case of Mobike it is ten cent
which runs the social media app This company has received a cash
injection from a taxi hailing app. If I can hire this bike out
for 30 cents an hour, you imagine that's an awful lot
of rentals for these companies I have arrived at Mobike's Beijing
headquarters and spoke to the company's founder
about their plans. For these companies to succeed,
they're counting on their cool looking steeds making push bike
riding hip amongst China's It could even be the car
which is the reason for their success because sometimes
this is the only way to get around He should have a helmet on. Did he
do a risk assessment. Dominic is here.
We have been talking about the new shopping experience Amazon is
testing out. What happens in the States in Amazon comes here. Amazon
is building a giant fresh food warehouse on the outskirts of London
and it will be a really big competitor to the likes of Tesco's,
Sainsbury's and Asda. Life is hard enough for those companies as it is,
it is going to get a lot harder when Amazon comes in. Amazon has a
history of getting 20% market share in any sector in chooses. The tough
element, we have been asking people and thank you for your messages.
Russell says it removes more jobs for people in the process. That's
not necessarily new. Another viewer says higher unemployment. Rob says,
"It opens the door to more cybercrime. Could someone steal your
bar code?" Michael says, "I trust the computer more than a human."
That's the issue, it is a challenge for the retailers to keep catching
up, but Amazon is a big player in groceries. Not in the k. The Amazon
Fresh service in the US has not been the success they hoped. Wal-Mart are
trying to catch up and it is racing to catch Amazon, but it is coming.
Now clicks and head to the bricks? Do your clicks and go to the bricks.
They will have 2,000 stores in America. That's pretty big.
Let's talk about Brexit once again. This is in the FT, Hammond and Davis
promise City a smooth and orderly Brexit. We've heard Brexit described
as all sorts of things, but smooth and orderly is probably not one of
them! Everyone has been talking about manufacturing and the highest
profile case is Nissan which made noises and got a special deal. Well,
they haven't got it? We don't know the details of what was agreed, but
they pledged to continue in the north-east. The city is a giant tax
centre. Nobody talks about the threat to the City from Brexit or
what they have said is confusing and difficult. The City finds it hard to
speak. There has been some speeches, but they want things the way it is.
That's unlikely to continue, I don't think.
Watch this space. Dominic nice to see you. Thank you.
That's it from us today. I'm here tomorrow. I will be more on the ball
tomorrow, I promise. We hope! See you soon. Bye-bye.
Good morning. Before milder weather spills across the whole of the
country, today is very much transition day. We have had frost
around this morning and we've got fog around too. Now, we started off
with temperatures typically about minus five Celsius across northern