06/12/2016 BBC Business Live


06/12/2016

Similar Content

Browse content similar to 06/12/2016. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

All change in the Eurozone for those in the top jobs,

:00:15.:00:18.

but will Angela Merkel buck the trend?

:00:19.:00:20.

We assess her chances of another term as Chancellor and what that

:00:21.:00:25.

Also in the programme, are these the President's men?

:00:26.:00:31.

Some of the biggest names in South Korean business

:00:32.:00:33.

were grilled by politicians on live television about whether they got

:00:34.:00:36.

And, are we about to experience the Santa rally or not?

:00:37.:00:43.

Certainly in the US we saw another record close.

:00:44.:00:46.

Market veteran David Buik is here to share his wisdom.

:00:47.:00:52.

We'll meet the firm that's keeping business, government,

:00:53.:00:56.

But with outsourcing in the spotlight, what role should

:00:57.:01:01.

the private sector play in our public institutions?

:01:02.:01:05.

And as internet giant Amazon gets into the supermarket business,

:01:06.:01:10.

it's removing the checkout from stores and using

:01:11.:01:12.

a computer to keep track of what's in your trolley.

:01:13.:01:15.

But let us know, do you trust tech to tot up your bill?

:01:16.:01:18.

Would you trust an entirely automatic supermarket?

:01:19.:01:20.

Artificial intelligence may be better in this job! Over shopping

:01:21.:01:41.

could be an issue. Send us your thoughts.

:01:42.:01:43.

In the next few hours the German Chancellor Angela Merkel

:01:44.:01:49.

is due to take another step to trying to steer Europe

:01:50.:01:53.

through yet another year of change as she seeks another term as leader

:01:54.:01:56.

2016 has seen upheaval across the continent,

:01:57.:02:01.

with Britain's decision to leave the European Union forcing

:02:02.:02:05.

Other world leaders being replaced include Barack Obama

:02:06.:02:11.

And yesterday, Italy's Matteo Renzi handed in his resignation

:02:12.:02:17.

So can Mrs Merkel stem the flow and win another term leading

:02:18.:02:21.

Prosperity may be key to defeating the populist message

:02:22.:02:26.

Germany is viewed by many as the engine room of the Eurozone.

:02:27.:02:34.

But the latest data shows its economy has

:02:35.:02:36.

been underperforming, with growth halving to just 0.2%

:02:37.:02:40.

Exports are critical, accounting for around 47%

:02:41.:02:45.

of all economic activity, and there are concerns poor economic

:02:46.:02:48.

performance could be exacerbated by the Brexit vote.

:02:49.:02:52.

The United Kingdom is Germany's third-biggest trading partner

:02:53.:02:59.

and there are fears this relationship could suffer when

:03:00.:03:01.

Despite this, Germany has benefited from a flood of cheap money

:03:02.:03:05.

as the European Central Bank continues its landmark

:03:06.:03:07.

$1.9 trillion stimulus package across the Eurozone.

:03:08.:03:11.

This has boosted German exporters by keeping

:03:12.:03:14.

With me is David Owen, who is the chief European economist

:03:15.:03:23.

Let's delve down into what Germany is doing. They are the powerhouse

:03:24.:03:41.

economy, I am interested in what role it will play in a blue Europe,

:03:42.:03:45.

because we are seeing all of this change, where does Germany sit? It

:03:46.:03:51.

has been the reluctant leader. You go back to the beginning of the

:03:52.:03:54.

European project, it was a French/ German axis, and now Germany has

:03:55.:04:00.

become the leader. It is a reluctant leader. The ECB reference this. What

:04:01.:04:07.

is required in Germany and countries like the Netherlands, which have

:04:08.:04:13.

so-called fiscal space, is a major fiscal expansion, which would help

:04:14.:04:20.

everybody, including German boats. There is a debate about whether the

:04:21.:04:24.

ECB is doing enough, and whether Germany is contributing in terms of

:04:25.:04:29.

the balance of power. We have seen a rise in populism, away from the

:04:30.:04:32.

establishment, what role does the ECB have? They are trying to keep

:04:33.:04:38.

the whole thing afloat. If you go back to 2012 the project was in

:04:39.:04:43.

danger of breaking up. The ECB stepped in. You could argue they

:04:44.:04:48.

should have stepped in in 2011. But when they got there, they got there,

:04:49.:04:54.

and they are doing all they can. It is up to other countries,

:04:55.:04:58.

politicians, to take more of a lead on the fiscal side, countries like

:04:59.:05:02.

Germany, on the structural side, countries like France. The ECB has

:05:03.:05:07.

argued they should complete the project for the political union.

:05:08.:05:14.

That should not happen post the financial crisis, because there is

:05:15.:05:18.

this backlash, but what they do need is a much stronger Eurozone economy,

:05:19.:05:22.

which requires more action from Germany on the fiscal side, that

:05:23.:05:26.

will not happen. Is there a gap between France and Germany? There is

:05:27.:05:30.

not enough structural reform in France. It is needed, it has long

:05:31.:05:39.

been needed, and in Italy. The problem is it takes years to bear

:05:40.:05:44.

fruit. They initially create lots of losers, so you need a strong growing

:05:45.:05:49.

economy to push it through, and that is why you need a fiscal response in

:05:50.:05:52.

countries with the fiscal space, including Germany.

:05:53.:05:59.

Amazon has revealed plans for a grocery shop without a checkout,

:06:00.:06:03.

where customers will instead pay for the goods they have

:06:04.:06:05.

The Just Walk Out shopping experience uses the same types

:06:06.:06:10.

of technologies found in self-driving cars.

:06:11.:06:13.

The system detects when items are taken or returned

:06:14.:06:15.

to shelves and tracks them in a virtual shopping trolley.

:06:16.:06:18.

Once the shopper leaves the store, their account will be charged

:06:19.:06:22.

The first shop is due to open in the US early next year.

:06:23.:06:34.

What did you think? Send us your thoughts.

:06:35.:06:36.

Facebook, Microsoft, Twitter and YouTube are collaborating

:06:37.:06:38.

to stop violent extremist images and video being spread

:06:39.:06:40.

The four tech firms plan to create a database that contains "digital

:06:41.:06:44.

The database will be used to screen uploads in order to spot violent

:06:45.:06:49.

or extremist material before it is shared.

:06:50.:06:57.

Some of South Korea's biggest businesses have been questioned

:06:58.:07:02.

in a rare televised hearing as part of a huge corruption inquiry.

:07:03.:07:06.

Samsung, Hyundai Motors and six other firms face accusations

:07:07.:07:10.

they gave millions of dollars to funds linked to the country's

:07:11.:07:14.

She faces impeachment proceedings in relation to the scandal.

:07:15.:07:30.

It is a fascinating debate, a televised discussion, giving

:07:31.:07:35.

evidence about widespread potential corruption. These people do not come

:07:36.:07:42.

out in public, they never give interviews, they live in that world

:07:43.:07:49.

of power and money, hyper money, behind the great glass of black

:07:50.:07:54.

limousines. Just to have them dragooned into Parliament to answer

:07:55.:07:57.

some very tough questions was a spectacle in itself, spectacle is

:07:58.:08:03.

the right word, the photographers were allowed to stay in and they

:08:04.:08:05.

were on their ladders in the assembly room, training and snapping

:08:06.:08:10.

and clicking away throughout the proceedings. It was bizarre. You had

:08:11.:08:18.

the eight most powerful men in South Korea answering questions about

:08:19.:08:23.

whether it was corrupt payments to these funds controlled by a friend

:08:24.:08:27.

of the President. What is expected next on this? And the impeachment on

:08:28.:08:35.

Friday? We will get the vote on impeachment on Friday. The president

:08:36.:08:40.

has indicated she is not going easily. It is not completely clear

:08:41.:08:43.

that the opposition will get the numbers on Friday. The likelihood is

:08:44.:08:50.

that the thing drags on and we get bigger and bigger demonstrations

:08:51.:08:51.

every Saturday. An interesting story, but it has no

:08:52.:09:09.

impact on the markets. A lot of it is to do with what is happening at

:09:10.:09:14.

the United States, the Dow closing on a record high again, the market

:09:15.:09:19.

is throwing off the impact of the Italian turmoil. A mixed picture in

:09:20.:09:24.

Europe, Google talk about Europe in a moment. First, what is ahead on

:09:25.:09:27.

Wall Street. How is the housing

:09:28.:09:28.

market doing in the US? We get an idea when the luxury-home

:09:29.:09:31.

builder Toll Brothers reports. They are expected to report a rise

:09:32.:09:35.

in revenue and profit That has been boosted

:09:36.:09:38.

by higher home sales. The improving job market

:09:39.:09:43.

and a healthy economy We are also expecting some

:09:44.:09:45.

economic data on Tuesday. The Commerce Department will tell us

:09:46.:09:52.

about factory orders for October. New orders for American factory

:09:53.:09:57.

goods are expected to have risen by 2.6% in October after adding just

:09:58.:10:00.

0.3% in September. The trade deficit is

:10:01.:10:07.

expected to have risen That is compared to a deficit

:10:08.:10:10.

of 36.4 billion in September. The trade deficit refers to how much

:10:11.:10:19.

the US imports versus exports. Joining us is David Buik,

:10:20.:10:31.

market analyst, Panmure Gordon. Wasn't that a wonderful skyline.

:10:32.:10:48.

Speaking of twinkly lights, lots of Christmas trees, we are allowed to

:10:49.:10:51.

start talking about a Santa rally, what might it be and why is it not

:10:52.:10:57.

happening yet? We have had it. The Donald Trump rally. That was the

:10:58.:11:05.

relief rally, that he would cut corporation tax and the

:11:06.:11:13.

infrastructure spending. But a lot of sectors took heart from that.

:11:14.:11:20.

record, 10.7% up on the year, having record, 10.7% up on the year, having

:11:21.:11:27.

had a pull back just before, around the time of Brexit and the rest of

:11:28.:11:32.

it. We have covered the Italian referendum, it has already been

:11:33.:11:35.

priced in, because the markets dipped away. This is something that

:11:36.:11:41.

has been dismissed ridiculously easily, because they have a serious

:11:42.:11:47.

problem. If cat does not come in, they will struggle to persuade many

:11:48.:11:52.

of their millions of bondholders to take a real caching on their bonds

:11:53.:11:58.

and convert them into dodgy equity. European banks looking to the Middle

:11:59.:12:06.

East for help. Yes, but Italy is light on fresh capital, the whole

:12:07.:12:11.

area of Europe is 300 billion light. People are not like sheep, they need

:12:12.:12:15.

a good story told to them why should I step up to the plate and invest?

:12:16.:12:20.

You have to give me a good reason. You could see the Deutsche Bank

:12:21.:12:25.

story, the share price went down. That is a serious bank that has got

:12:26.:12:32.

tentacles all over the world, however many bad assets it has, but

:12:33.:12:37.

you have to give somebody a story. Whoever replaces Matteo Renzi will

:12:38.:12:40.

not have that story to be able to sell. We will watch closely.

:12:41.:12:43.

Later in the programme we'll get the Inside Track

:12:44.:12:47.

on what it takes to keep our local governments online.

:12:48.:12:52.

You're with Business Live from BBC News.

:12:53.:12:57.

Big changes to the way England's railways are run could be unveiled

:12:58.:13:00.

later by Transport Secretary Chris Grayling.

:13:01.:13:04.

He wants each rail franchise to be run by joint management teams,

:13:05.:13:07.

including representatives from both the train-operating

:13:08.:13:09.

Theo Leggett is in our Business Newsroom.

:13:10.:13:21.

It is quite a reversal of what we heard about the break-up. It is an

:13:22.:13:31.

ideological change. In the mid-90s, when British rail was privatised, we

:13:32.:13:34.

had train operating companies which were responsible for operating the

:13:35.:13:39.

trains and the responsibility for looking after the track and the

:13:40.:13:41.

signalling and that was initially passed onto Railtrack and later got

:13:42.:13:47.

taken over by Network Rail. At the time the idea was that it is better

:13:48.:13:51.

to have a separate infrastructure operator, so that if you have got

:13:52.:13:55.

different train companies competing to operate services on the same

:13:56.:13:59.

line, there is no conflict of interest, it is not one of them

:14:00.:14:03.

having responsibility for the track, but the pub that people have

:14:04.:14:08.

identified is there is a lack of coordination between them, and

:14:09.:14:11.

sometimes they are arguing over who is responsible for delays. Chris

:14:12.:14:18.

Grayling says Network Rail is too monolithic, too big, not interested

:14:19.:14:22.

in what goes on at a local level, so he wants responsible people running

:14:23.:14:25.

each franchise to be joined up tween the train operating company and

:14:26.:14:31.

Network Rail, so they have a shared incentive to work together. Will

:14:32.:14:34.

passengers notice a big difference? That depends if the system works. If

:14:35.:14:40.

there is better coordination and if delays are looked after, if they are

:14:41.:14:45.

reduced, if the site work together, has just probably will notice a

:14:46.:14:48.

difference. We carry on, they will not.

:14:49.:14:57.

Do take a look at our website, there are many other stories on their

:14:58.:14:58.

today. Various things going on. More on the coverage. Let me take

:14:59.:15:09.

you to the website. We're going to have a look at everything that's on

:15:10.:15:12.

there and you will see the Business Live page updated throughout the

:15:13.:15:15.

day. All you need to know related to what we'll hear from the Transport

:15:16.:15:21.

Secretary, Chris Grayling. The story is about spread bet betters. They

:15:22.:15:25.

are really dragging down the FTSE 250.

:15:26.:15:32.

They're pulling down the markets the small early medium sized companies

:15:33.:15:34.

the FTSE 250. Our top story, Germany's Angela

:15:35.:15:36.

Merkel is seeking another term as head of her CDU party

:15:37.:15:41.

as financial markets look for signs She is talking to her party today.

:15:42.:15:43.

It is a critical speech for her. A quick look at how

:15:44.:15:53.

markets are faring. No sign of that rally as we approach

:15:54.:16:01.

the Christmas holidays for the markets. The traders are expected to

:16:02.:16:05.

get an early break. Normally about this time of year we would see

:16:06.:16:10.

markets ticking up a bit ahead of the extended holiday. No sign of

:16:11.:16:15.

that. Santa is not on his way! Don't say that for anyone listening.

:16:16.:16:18.

He is coming later. He is coming. Now, think of the word "outsourcing"

:16:19.:16:28.

and what image does it conjure up? Good for cutting costs

:16:29.:16:31.

and improving efficiency, or endless call centres

:16:32.:16:32.

and poor service? It probably depends whether you're

:16:33.:16:34.

a customer or a business. But our next guest

:16:35.:16:36.

says that is changing. Civica, has its HQ in the UK,

:16:37.:16:38.

but operates in 30 different locations around the world including

:16:39.:16:41.

Australia, New Zealand, It focuses on local government,

:16:42.:16:43.

libraries, schools and hospitals. It works with 900 government

:16:44.:16:50.

organisations around Its aim is to provide

:16:51.:17:01.

the technology, software and services needed to help

:17:02.:17:11.

local government That's the theory but what does

:17:12.:17:13.

it take to make sure Wayne Story is the Chief

:17:14.:17:16.

Executive of Civica. I'm interested in the debate we

:17:17.:17:22.

raised in the introduction in the role that private sector businesses

:17:23.:17:27.

play in the public sector. It is fair to say as soon as you hear the

:17:28.:17:31.

words outsourcing, you think it will take me forever to get through on

:17:32.:17:34.

the phone and something will go wrong and the organisation that

:17:35.:17:37.

you're dealing with, blames it on somebody else, is that a fair

:17:38.:17:39.

assessment? That's an unfair assessment. Look, we're a technology

:17:40.:17:45.

company and our role in working with organisations is to support them.

:17:46.:17:50.

We're going through unprecedented change in Local Government, national

:17:51.:17:53.

Government, the public services, and private sector. What we do is

:17:54.:17:57.

support organisations and take them on a journey. We don't focus on

:17:58.:18:03.

outsourcing per se, we are about technology, about digital

:18:04.:18:07.

transformation and outsourcing. Digital transformation will over

:18:08.:18:11.

time support organisations to improve their interactions with the

:18:12.:18:14.

customers and from our prospective it is a great way for a back office

:18:15.:18:19.

and a front office and a customer, or a citizen, to be able to interact

:18:20.:18:24.

and it is a really exciting time. I know here in the UK and you

:18:25.:18:27.

operate in many countries around the world, but certainly in the UK, when

:18:28.:18:33.

we talk about the public sector outsourcing elements especially

:18:34.:18:36.

technology, everybody just assumes disaster ensues and some technology

:18:37.:18:38.

firm is just cashing in all the money from the NHS, but not really

:18:39.:18:43.

making it work, you know, as a user, as a patient, you find no one is

:18:44.:18:46.

talking to each other, your information is all over the shop and

:18:47.:18:50.

may not be secure. We're cynical about it. How do you change our mind

:18:51.:18:56.

on that? There has been so many disaster stories? We work typically

:18:57.:19:03.

with trusts, health authorities, care home groups, etcetera,

:19:04.:19:06.

etcetera, the innovation that's happening in the NHS is huge and of

:19:07.:19:10.

course, because it is such a big organisation, it happens in lots of

:19:11.:19:14.

different places. We tend to work at a local level where we are starting

:19:15.:19:19.

to see digital transformation come through, a lot more connection of

:19:20.:19:24.

records and a lot more electronic information happening and it is a

:19:25.:19:28.

long journey. This is a big organisation with lots of demands on

:19:29.:19:32.

it, and what we're finding there is innovation and we are right at the

:19:33.:19:36.

front of that and we see it as being a great opportunity to continue. It

:19:37.:19:40.

is easy for us to think that all of this should be really simple,

:19:41.:19:43.

putting records online and being able to access it. We take it for

:19:44.:19:47.

granted. What's in it for the businesses? It is clearly a huge

:19:48.:19:50.

challenge. It involves getting you guys involved to do this. What's in

:19:51.:19:55.

it apart from just cutting costs? It is about being able to access

:19:56.:19:58.

information as you said. Security is a big part of this. So paper records

:19:59.:20:04.

are not as secure electronic records, having information at the

:20:05.:20:08.

fingertip, automatication, a big part of what needs to go on is to

:20:09.:20:12.

automate things, not because it is cheaper, but it makes that

:20:13.:20:17.

engagement much better. It is getting the head count down in these

:20:18.:20:25.

Local Governments and organisations because community and technology is

:20:26.:20:28.

doing jobs that humans used to do. It is not just the public sector.

:20:29.:20:32.

Most organisations are in transformation. They want to get

:20:33.:20:36.

into more digital way of operating, where they can use technology to

:20:37.:20:42.

drive better efficiencies, do things quicker, faster, as we all expect

:20:43.:20:47.

and by doing that, of course, automate things. There is a

:20:48.:20:50.

consequence, there are some people who are displaced, but in many

:20:51.:20:56.

organisations they transfer more sfrtion to the front line, surely

:20:57.:20:59.

that's what we're looking for. Wayne, thank you. Best of luck with

:21:00.:21:00.

it. Wayne Story there. China's streets were once

:21:01.:21:04.

dominated by the push bike. But two young entrepreneurs

:21:05.:21:07.

are hoping to change that but persuading some

:21:08.:21:10.

of their country's most powerful tech giants to invest millions

:21:11.:21:12.

of yuan into bike hire schemes. Both of these start-ups have

:21:13.:21:23.

drawn huge investment In the case of Mobike it is ten cent

:21:24.:21:24.

which runs the social media app This company has received a cash

:21:25.:21:33.

injection from a taxi hailing app. If I can hire this bike out

:21:34.:21:52.

for 30 cents an hour, you imagine that's an awful lot

:21:53.:21:55.

of rentals for these companies I have arrived at Mobike's Beijing

:21:56.:21:58.

headquarters and spoke to the company's founder

:21:59.:22:03.

about their plans. For these companies to succeed,

:22:04.:22:15.

they're counting on their cool looking steeds making push bike

:22:16.:22:21.

riding hip amongst China's It could even be the car

:22:22.:22:24.

which is the reason for their success because sometimes

:22:25.:22:31.

this is the only way to get around He should have a helmet on. Did he

:22:32.:22:52.

do a risk assessment. Dominic is here.

:22:53.:22:57.

We have been talking about the new shopping experience Amazon is

:22:58.:23:04.

testing out. What happens in the States in Amazon comes here. Amazon

:23:05.:23:09.

is building a giant fresh food warehouse on the outskirts of London

:23:10.:23:13.

and it will be a really big competitor to the likes of Tesco's,

:23:14.:23:17.

Sainsbury's and Asda. Life is hard enough for those companies as it is,

:23:18.:23:21.

it is going to get a lot harder when Amazon comes in. Amazon has a

:23:22.:23:26.

history of getting 20% market share in any sector in chooses. The tough

:23:27.:23:33.

element, we have been asking people and thank you for your messages.

:23:34.:23:40.

Russell says it removes more jobs for people in the process. That's

:23:41.:23:46.

not necessarily new. Another viewer says higher unemployment. Rob says,

:23:47.:23:50.

"It opens the door to more cybercrime. Could someone steal your

:23:51.:23:55.

bar code?" Michael says, "I trust the computer more than a human."

:23:56.:24:01.

That's the issue, it is a challenge for the retailers to keep catching

:24:02.:24:05.

up, but Amazon is a big player in groceries. Not in the k. The Amazon

:24:06.:24:11.

Fresh service in the US has not been the success they hoped. Wal-Mart are

:24:12.:24:18.

trying to catch up and it is racing to catch Amazon, but it is coming.

:24:19.:24:24.

Now clicks and head to the bricks? Do your clicks and go to the bricks.

:24:25.:24:28.

They will have 2,000 stores in America. That's pretty big.

:24:29.:24:33.

Let's talk about Brexit once again. This is in the FT, Hammond and Davis

:24:34.:24:38.

promise City a smooth and orderly Brexit. We've heard Brexit described

:24:39.:24:42.

as all sorts of things, but smooth and orderly is probably not one of

:24:43.:24:48.

them! Everyone has been talking about manufacturing and the highest

:24:49.:24:52.

profile case is Nissan which made noises and got a special deal. Well,

:24:53.:24:57.

they haven't got it? We don't know the details of what was agreed, but

:24:58.:25:00.

they pledged to continue in the north-east. The city is a giant tax

:25:01.:25:08.

centre. Nobody talks about the threat to the City from Brexit or

:25:09.:25:12.

what they have said is confusing and difficult. The City finds it hard to

:25:13.:25:16.

speak. There has been some speeches, but they want things the way it is.

:25:17.:25:19.

That's unlikely to continue, I don't think.

:25:20.:25:22.

Watch this space. Dominic nice to see you. Thank you.

:25:23.:25:25.

That's it from us today. I'm here tomorrow. I will be more on the ball

:25:26.:25:30.

tomorrow, I promise. We hope! See you soon. Bye-bye.

:25:31.:25:40.

Good morning. Before milder weather spills across the whole of the

:25:41.:25:46.

country, today is very much transition day. We have had frost

:25:47.:25:49.

around this morning and we've got fog around too. Now, we started off

:25:50.:25:55.

with temperatures typically about minus five Celsius across northern

:25:56.:25:56.

Download Subtitles

SRT

ASS