Browse content similar to 23/12/2016. Check below for episodes and series from the same categories and more!
This is Business Live from BBC News, with Aaron Heslehurst
As 2016 draws to a close, we'll look back on a year
which featured two events that will shape the global economy
Welcome to Business Live: Review 2016.
This year saw the UK take the momentous decision
We'll take a look at what lies in store in the next 12 months.
Billionaire businessman Donald Trump wins the race for the White House.
He's made some bold announcements, but was it all talk and no action?
And it's been a turbulent year for global markets.
Oil prices hit a historic low, but there's light at the end
of the tunnel, following a landmark deal between members
Exploding phones, driverless cars and virtual reality.
It's been an eventful twelve months in the the world of tech,
but what can we look forward to in 2017?
We'll speak to our resident gadget guru Rory-Cellan Jones.
Welcome to a very special edition of Business Live.
This year saw two of the biggest political results of the decade
as the recent trend towards globalisation
There are now dark clouds of uncertainty hanging over two
of the world's biggest economies - Europe and the United States.
Let's start by looking back at what happened following the UK's
momentous decision to leave the European Union.
Tonight at 10 - the voters decide that, after four decades,
it is time for Britain to leave the European Union.
I don't think it would be right for me to try to be the captain
that steers our country to its next destination.
Across Asia today, we have seen shares fall on the major markets
like Japan's Nikkei, down more than 7%.
Look what happened, it tumbled down to levels we have not
Many people in the financial markets caught, perhaps,
Brexit means Brexit, and we are going to make a success of it.
It is a victory against the big merchant banks, against the big
The end of the day, Jamie Dimon, Lloyd Blankfein,
you want to take your troops from JP Morgan and Goldman Sachs
to Paris, to the Boulevard, have a lovely holiday.
I'll give you a clue, guys - you'll be back.
I'm joined by our economics editor, Kamal Ahmed.
We saw Brexit back in the summer. Looking ahead to 2017, where do we
stand in terms of UK negotiations? Everything looks so uncertain. The
phoney war will come to an end, Britain voted to leave the European
Union in jaw and the practicalities of that will begin next year. -- in
June. The British Government wants to spark Article 50 which starts the
process of exit. By the end of March. That is a two year process so
that should be completed, we think, by 2019. There are tensions on both
sides. In Britain, there are tensions between those who want what
is cold a hard Brexit, fully out of the single market and the Customs
Union, able to sign trade deals around the world itself, with no
reference to the European Union. And those that want a softer Brexit,
still having preferential access to the single market, possibly still in
the Customs Union. That is tension on one side. On the European side,
the 27 other member states, there are tensions between those who want
to ensure Britain does not get a better deal by going out of the
European Union, politically unpalatable as that is, and Britain
is the second largest economy in Europe. They do not want to set up
trade barriers so the European economy suffers by losing the
British market. London, one of the leading global financial centres and
Europe needs the city to front some businesses.
Indeed. Let's bring up the board. I want to talk about the FTSE and the
pound. This is how they have ended as of December 20. The FTSE nearly
13% and the sterling down 16%, we were expecting that. If they vote
for Brexit happens, we would see that pound punch. The judgment was
investors would think assets in the UK would be less valuable in the
future so their money would be better employed on the continent and
frankly in America. And so the pound has fallen in value. What is
interesting and more surprising is how good equities have been and the
markets. In a way, although Brexit is incredibly important politically
and economically, the fundamentals have not changed that much yet. And
so equities remain very quite -- attracted because of the high bloke
interest-rate and loose monetary policy, no signal yet from Britain,
the Central Bank in the UK and Europe that interest rates will rise
soon and quickly. So the equities run has been very powerful, a lot of
those in the FTSE, in the London markets, they are global companies.
Their profits are in dollars so as sterling falls... Their profits have
gone upwards. So there is a situation where those equities are
doing rather well and you have a clash. Equities positive, sterling
has had a tough three months. The European project, how is it
looking going into 2017? Brexit is important but I would not suggest it
is the most important thing in Europe in 2017. You have elections
in the Netherlands and in France and in Germany. And each of those
elections will be a big test about the kind of Europe that the voters
in Europe want. A reformed Europe, high levels of unemployment,
problems with growth. What type of Europe will people who support the
project, windows elections, or will people who want to rip up the
project and cause more tension in Europe and possibly split up the EU,
will they wind? It will be a fascinating year. But the cards on
the table, could we see a European shock like we have seen Brexit and
the election of Donald Trump? We need to be careful, the pull
suggests not, but at the end of 2017, what might be described as the
establishment parties have put themselves back at the centre of
Europe -- the pulls. The European project is incredibly important
European government and at the end of 2017, it is suggested they will
look more victorious than knows what that one to split up the EU. One
thing we learned this year it was do not listen to the pollsters!
Happy New Year! The UK's decision to leave
the European Union certainly surprised global markets,
but investors didn't need to wait In the United States,
the billionaire businessman Donald Trump swept to power in one
of the most divisive political Let's look back at some
of the highlights. Right now, 92 million Americans
are on the sideline, It's a silent nation
of jobless Americans. Donald was one of the people
who rooted for the housing crisis. He said back in 2006, gee,
I hope it does collapse because then I can go in and buy some
and make some money. We will build the wall,
100%, and Mexico will be Just imagine how many more
automobile jobs will be lost We can't continue to allow China
to rape our country. Donald J Trump, billionaire property
developer with no previous experience of public office,
is the 45th President Companies are not going to leave
the United States any more It's not going to happen.
It's not going to happen. Our number-one priority
is going to be the economy, get back to 3% to 4% growth,
we think that is very sustainable, and focus on things
for the American worker. Nice thunderous music. I love the
Pippa Malmgren is a former White House advisor and she joins
You did it! You picked Brexit and Trump.
Yes, it was a big year! Can you do the Lottery numbers?
I know you want to talk about the economic and Trump's vision. This is
what we have been hearing, is the team that he's building, what do you
make of it? The last was Peter Navarro who wrote one of his box,
Death by China. Yes, exactly, he is picking people with very different
points of view. They are going to have a Cabinet that argues which
might not be a bad thing, they will have debates about the right
direction to go. Second thing, the establishment is very upset about
these new people because they are not. And that was the point. The
electorate said, I want the establishment out and something new
that looks after my interests more. That is what I think they are going
to deliver. Someone described this as bonfire of the agencies! Trump
has been brought into literally burn the house down and start again,
reconstruct this thing. And Washington was overgrown in many
ways. Will there be accidents along the way? Every President makes
mistakes and we will see those, certainly. But the upside may be
greater than people expect. Just because they do not like him
personally, the markets were like his policies. We have seen that with
the Dell. The wild card is trade policy and whether that will harm
growth in the future. What is your take on that? Again, I do not know,
these are my personal views, I think that there is a lot of bluster about
trade policy. But in the end, what they want to do is sell more
American birds, have better quality imports. So the end goal is to have
trade. -- American goods. They will not use that word, we will have less
talk about free trade, does it mean something profoundly different?
Maybe not. You cannot cede the US as an island, it has got to trade in
the world. To be fair, less than 10% of US GDP depends on exports are as
a nation, we are incredibly lucky. We can be an engine even if the rest
of the world is not going well, trade is as small part of our
economy compared to most others so that is something to keep in mind.
Thank you very much indeed. Happy New Year.
Still to come: Exploding phones, driverless cars
It's been an eventful 12 months in the world of tech,
but what can we look forward to in 2017?
We'll speak to our resident gadget guru Rory-Cellan Jones.
You're with Business Live from BBC News.
Throughout the show, we've been hearing about how
the events of 2016 are set to the shape the business
Here's the BBC's Theo Leggett with a timeline of key events
In January, President-Elect Donald Trump takes the reigns
in the White House, and onlookers will be keen to see if he follows
through with his plan to restrict trade and inject hundreds
of billions of dollars into the US economy.
Fast-forward a couple of months and we'll see the first big
The UK Prime Minister says she'll trigger Article 50
This is when Britain can start formal negotiations
And we'll begin to see what the new relationship could look
This is, of course, crucial to the future of the EU project.
France is one other country which will be
In April, it'll hold the first round of its Presidential election.
The far-right candidate Marine Le Pen is riding high
on a wave of anti-establishment politics which is currently
The leader of the Front National is a staunch Eurosceptic,
so there could be some further bad news for Brussels if
Recent events have seen Chancellor Angela Merkel come
under fire for her open-door migrant policy.
The public could go to the polls as early as August 27th.
The German leader has seen a steady decline in her popularity ratings
Let's take a look at how markets have fared over
the course of the year, starting with stocks in Europe.
Yes, there you can see sterling down against the dollar by 16%
as a result of the uncertainty surrounding the Brexit vote.
the FTSE gained around 13% this year.
A quick look at US stocks now - the DOW Jones rose
US markets actually broke all records following the US election.
Investors are perhaps anticipating Donald Trump will follow
through with his $1 trillion spending plan and this could provide
And they need it right now. Borrow and build, but maybe they don't need
to borrow? A lot of investors will throw money into construction
programmes. You are watching the review of 2016
on Business Live. The events of the past 12 months
have made for a turbulent At the turn of the year,
the price of oil was already at its lowest point for a decade -
this had investors wondering whether In January, Iran returned
to international markets following the lifting of Western
sanctions and crude fell below $28 dollars per barrel -
but this proved to be short lived. In the first half of the year,
the market rallied as some of that And in September some of the world's
leading oil producing nations managed to reach
a landmark agreement. For the first time in over 8 years,
members of the Opec oil cartel Initially the market had its doubts
that the deal would hold, but after Iran and Saudi Arabia
agreed to resolve their differences, Iain Reid is a senior oil
and gas equity analyst A good Ozzie institution. That is
the key, they have all agreed, but will they stick to that? Yes,
compliance is always the key. As you say, they have not done it for a
while. What encourages the market is that the core countries of Opec, the
Gulf countries, Saudi Arabia, Kuwait, UAE, they make over half of
it and they really have to comply, given their budget constraints. We
think most of the rest of the countries will comply to some
degree. Some are tempted by the slightly higher oil price, to
increase supply and make more money. It has been hard going for countries
in South America, some African countries? Yes, Libya and Nigeria
are coming out of a pretty depressed position anyway. They will be
allowed to increase. There will be some choosing, but there will be a
lot of compliance, I think. We finally saw that announcement, we
have been talking about it for days and weeks in the lead up, they have
made this agreement. But they cut at record levels. Russia was producing
more than 11 million a day, something like that. Does it really
make a big difference? Well, demand is also increasing. Lower prices
means it is cheaper. That demand growth has been good. How long do
think that will last, now prices are rising? Unless there is a recession
in the West, I think there will be a decent amount of growth, which will
increase the wiggle room some of the country's health. The US is also
producing quite a lot of the world us oil. The worry is that with
higher prices they will produce even more. The Americans? Fracking? They
will come into it, and make money. A lot of them shut production when the
prices got too low, but they can switch it on pretty quickly? There
is a finite limit to that, to be honest. With a bit of compliance and
demand growth, I think the oil price will reach $60. Next year? Yes, it
is $55 now. Look at the chart, Brent crude is up 46% in 2016. Predictions
for 2017? Over $60. But not the $100 mark that we have seen before? Not
unless there is a cataclysm, but don't rule that out. But we're not
forecasting that. A nice smooth path up to 70. We will put you back on
next year to see if you are right! In a moment, we'll be talking
tech with our gadget He is taking photos and he will put
it on social media. We are going to take a look at the year in social.
These are daft people in our office playing it!
It changed my life for a week and then, poof, it was gone."
He said it was the best out of this year.
A viewer in Scotland says "No, I would never use a driverless taxi
Mutala in India, "I would be scared to sit in one in India because it
I tweeted this about five o'clock this morning
and had nothing but short, sharp, shrift, responses
2016 has been an eventful year in the world of tech.
As you've just seen, driverless taxis picked up passengers
And the war between Samsung and Apple reached explosive new heights.
We're joined by our technology correspondent Rory-Cellan Jones.
You see that picture? Is this the future? We said that 2016 was going
to be the year of virtual reality. We saw a lot of launchers. I don't
think we have seen mass take-up. What we are now seeing is the
emergence of cheaper forms. This is an example, a cheap headset into
which you put a mobile phone. Much easier to get to grips with. Not as
good as things like Oculus Rift. What does it do? Why are you doing?
You are being transported new worlds. I like the world I am living
in! Good question, but my experience, the first time somebody
does this, I did it with family members, an ageing parent the other
day, they are quite excited by it. My question mark is whether this
will last. The first experience is great and then you do begin to say,
yes, what is it for? It is fun now, but they have to apply to something?
Something constructive? We are seeing augmented reality, putting
virtual object in the real world, the great example was Pokemon Go,
wandering around with phones, catching Pikachu. Microsoft has a
thing that takes virtual objects of a step into the real world. It has a
business application for that. Voice control? Aaron, be quiet. OK,
Google. It works! Happy to help... Be quiet for one moment. Who is Alan
Haselhurst? According to Wikipedia, he is a BBC world television
presenter... It got it! This is an intelligent assistant. It offers
questions like how old is he? We will not go on to that. We
celebrated our 70th birthday this year. We have already seen this year
the Amazon Echo, the voice control speaker taking off. You have a
picture of that. And Google Home. Voice becoming the new interface.
This is a Google mobile phone, using the smart assistant. You also have
Siri in Apple devices and Cortana in Microsoft. It knows when I ask who
Alan Haselhurst is, a good follow-up question, how old is he? Who would
buy these things? They are buying them. These voice controlled
speakers are out there. It's not so much that these are products people
are going to buy, they are out there. They are in the environment,
voice control is becoming a thing. This is stuff, when we were younger,
we would watch science fiction films, they would be on a spaceship,
talking to Alexa or whatever? What amazes me is how blase we are about
it. In Star Trek there were devices where you could speak in one
language and it would come out in another. We got back! -- we got
that! What about driverless cars? It all feeds into the same theme, more
intelligence being built into devices, principally cars. We have
come an awful long way. We are expecting a lot more demos of that
kind at the CES show in Las Vegas. That knowledge leads us into...
About 40 seconds left, into the internet of things? Yes, a bunch of
devices, everything connected to the internet. That is a smart doorbell
with a camera. It will identify who has come to the door and you can let
them in through smartphone. Smart lighting, that you can control
through the mobile phone. Drones. You said you wanted one before I
came on. A lot more in the sky. Rory turns on his Christmas tree lights
through his phone. Hey, Siri, to the Christmas lights on. We love you, in
the non-biblical sense, thanks for joining us. See you in the New Year.