06/12/2016 BBC Business Live


Similar Content

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



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


Download Subtitles