0:00:05 > 0:00:07This is Business Live from BBC News with
0:00:07 > 0:00:10Samantha Simmonds and Tim Willcox.
0:00:10 > 0:00:14All systems go - the World Bank says the global
0:00:14 > 0:00:15economy is set accelerate this year.
0:00:15 > 0:00:17But will everyone feel the benefit?
0:00:17 > 0:00:27Live from London, that's our top story on Wednesday, 10th January.
0:00:37 > 0:00:41It's being predicted the global economy will operate at close
0:00:41 > 0:00:44to full potential for the first time since the financial crisis of 2008.
0:00:44 > 0:00:47We'll assess what impact that will have on real prosperity.
0:00:47 > 0:00:50Also in the programme:
0:00:50 > 0:00:53Airbus seals a huge deal with China to supply 184 jets.
0:00:53 > 0:01:00We'll assess what this means for the company.
0:01:00 > 0:01:04Here is how the markets are looking.
0:01:04 > 0:01:06Today we're bringing the sparkle to Business Live
0:01:06 > 0:01:10we'll be talking Swarovski crystals with the great, great granddaughter
0:01:10 > 0:01:11of the company's founder.
0:01:11 > 0:01:13As always, do get in touch with your thoughts
0:01:13 > 0:01:15on any of the stories we're covering the show.
0:01:15 > 0:01:19Just use the #BBCBizLive.
0:01:22 > 0:01:28Hello and welcome to Business Live.
0:01:28 > 0:01:32Now, after a decade of hardship and austerity, things are looking up.
0:01:32 > 0:01:35The World Bank says global economic growth is likely to strengthen this
0:01:35 > 0:01:40year and that it will be the first year since the 2008 crisis when the
0:01:40 > 0:01:44world will be operating close to its full potential. Overall global
0:01:44 > 0:01:49economic growth is expected to edge up to 3.1%. That's after a much
0:01:49 > 0:01:53stronger than expected 2017. Advanced economies will be around
0:01:53 > 0:02:002.2%. Emerging economies are likely to grow by 4.5%. Generally this is
0:02:00 > 0:02:04because of increased investment in, improved confidence and a rebound in
0:02:04 > 0:02:08commodity prices. This last one is especially important for developing
0:02:08 > 0:02:11economies. Well the World Bank says the focus should turn to the
0:02:11 > 0:02:16policies needed to boost potential growth and living standards.
0:02:16 > 0:02:19Dean Turner is an Economist at UBS Wealth Management.
0:02:19 > 0:02:22Thank you very much for joining us on the programme. Any surprises
0:02:22 > 0:02:27here, do we think or not?The overall message in terms of global
0:02:27 > 0:02:32growth holding up at levels similar to what we saw last year, there has
0:02:32 > 0:02:35been an upgrade, but there is not much change. It is not a surprise,
0:02:35 > 0:02:39but it is an encouraging story.In terms of inflation, looking at the
0:02:39 > 0:02:43China figures?In terms of inflation, clearly we have been
0:02:43 > 0:02:46through a period of extraordinary low inflation. It seems that as we
0:02:46 > 0:02:50are moving into 2018 the process of normalisation will continue. In
0:02:50 > 0:02:53terms of what we have seen in China today, I mean, the numbers are
0:02:53 > 0:02:59pretty much in line with what the markets were expecting.1%, 1.5%?
0:02:59 > 0:03:03Numbers around 1.8% for CPI in China which is what the markets was
0:03:03 > 0:03:06expecting, but it is important to remember with inflation in China, it
0:03:06 > 0:03:10is driven by housing costs and food price inflation so it can be
0:03:10 > 0:03:14volatile in the short-term.I was talking to the author of the report
0:03:14 > 0:03:17earlier and she was saying that it is cyclical and this is to be
0:03:17 > 0:03:20expected and it is about time really, but also to be expected will
0:03:20 > 0:03:23be a downturn, she said, what needs to happen now, everyone needs to
0:03:23 > 0:03:26manage their economy to say make sure that doesn't happen and learn
0:03:26 > 0:03:29the lessons of the past, what does the global economy need to do to
0:03:29 > 0:03:34keep this going?I think what we have seen so far in this cycle, we
0:03:34 > 0:03:42have seen the beginning of monetary policy, normalisation, we are likely
0:03:42 > 0:03:46to see further normalisation take place this year within Europe. We
0:03:46 > 0:03:48are likely to see the quantitative easing programme slowing, but
0:03:48 > 0:03:53perhaps coming to an end this year as well. The message to take away
0:03:53 > 0:03:57from this is we are entering a period of normality, normal
0:03:57 > 0:04:02identitiesation and that can only be a good thing.And what about who is
0:04:02 > 0:04:07making the money, who is getting the benefits of the growth, is it the
0:04:07 > 0:04:12richer getting richer?One of the bigger economies that we have seen
0:04:12 > 0:04:15throughout this whole cycle is what is happening to real wage growth. It
0:04:15 > 0:04:19is not just in the UK, but globally and we have got very tight labour
0:04:19 > 0:04:23markets, not just in the UK, but the US as well and there are signs that
0:04:23 > 0:04:27we're getting tight labour markets in the eurozone as well. We're not
0:04:27 > 0:04:30saying wage growth come through yet and that's going to be the key thing
0:04:30 > 0:04:32to focus on this year and that's going to be the key thing that
0:04:32 > 0:04:37improves living standards.All right, Dean good to see you as ever,
0:04:37 > 0:04:39thank you for coming in, thank you.
0:04:39 > 0:04:46Let's take a look at some of the other stories making the news.
0:04:46 > 0:04:49French officials say China has placed an order for a 184
0:04:49 > 0:04:51Airbus A320 airliners on the final day
0:04:51 > 0:04:53of President Emmanuel Macron's visit to the country.
0:04:53 > 0:04:56Final details of the deal are in the process of being worked
0:04:56 > 0:04:58out with the Chinese authorities.
0:04:58 > 0:05:01Boeing says it delivered a record 763 jetliners last year -
0:05:01 > 0:05:04which means it's likely to retain its title as the world's
0:05:04 > 0:05:05biggest plane-maker.
0:05:05 > 0:05:07The firm says it also received more than 900 net
0:05:07 > 0:05:16new aircraft orders last year worth $135 billion.
0:05:16 > 0:05:18Shares in Kodak soared nearly 120% after it revealed plans
0:05:18 > 0:05:19to mint its own crypto-currency.
0:05:19 > 0:05:22The US firm says it will be working with Wenn Media Group
0:05:22 > 0:05:23to launch the Kodak Coin.
0:05:23 > 0:05:27It has also given details of a plan to install rows of Bitcoin mining
0:05:27 > 0:05:34rigs at its headquarters in the US.
0:05:34 > 0:05:38Apple has announced that its iCloud services in mainland China will be
0:05:38 > 0:05:40operated by Chinese company GCBD, from next month.
0:05:40 > 0:05:43It says the partnership will allow Apple to "improve the speed
0:05:43 > 0:05:44and reliability" of iCloud services.
0:05:44 > 0:05:47But there are concerns that the step will give Beijing more opportunity
0:05:47 > 0:05:54to monitor its citizens and others living in the country.
0:05:54 > 0:05:57Our China correspondent, Robin Brant, joins us from Shanghai.
0:05:58 > 0:06:05Robin, what can you tell us?
0:06:05 > 0:06:10Well, it's another sign of how important China is to Apple's
0:06:10 > 0:06:15strategy. Going forward as it tries to strengthen even further. We had
0:06:15 > 0:06:20confirmation today of an announcement in the middle of last
0:06:20 > 0:06:25year that Apple's iCloud services in mainland China will be essentially
0:06:25 > 0:06:31handed over to a company linked to the Government down in the south of
0:06:31 > 0:06:37China and this company GCBD will run Apple's iCloud services in China and
0:06:37 > 0:06:41that means there is going to be new terms and conditions. In an e-mail
0:06:41 > 0:06:45sent out to iCloud users in China, those who have Chinese accounts, it
0:06:45 > 0:06:49warned them that they should look at the terms and conditions and said
0:06:49 > 0:06:52photographs, documents and any back-ups will be subject to
0:06:52 > 0:06:55different terms and conditions by the end of February and it said
0:06:55 > 0:07:00anyone who might not be happy with that, could deactivate their account
0:07:00 > 0:07:05or change it to a different country. This is just the latest sign of
0:07:05 > 0:07:10Apple having to comply, it says, with Chinese regulations and the key
0:07:10 > 0:07:13regulation here is that any firm wishing to provide cloud computing
0:07:13 > 0:07:18services must have the servers based in China and they will be subject to
0:07:18 > 0:07:21Chinese laws and rules, laws and rules which some critics say are
0:07:21 > 0:07:24different to regulations say in the European Union or in the United
0:07:24 > 0:07:32States. What do we know about GCBD?Well,
0:07:32 > 0:07:37GCBD is a partnership, Apple describes. It is owned by the
0:07:37 > 0:07:41Government. It is a place that wants to become the big data centre of
0:07:41 > 0:07:46this country, but the issue for many critics this is an entighty of the
0:07:46 > 0:07:49Chinese government, the Communist Party as well and they think it is a
0:07:49 > 0:07:54particularly sinister turn of events.Robin, thanks.
0:07:54 > 0:07:57Another record close in the US, for the Dow, S&P and Nasdaq.
0:07:57 > 0:08:00But that hasn't carried through to everywhere in Asia
0:08:00 > 0:08:05where many markets are slightly down except for Hong Kong
0:08:05 > 0:08:07which has risen slightly, helped by energy shares climbing
0:08:07 > 0:08:11with another surge in oil prices.
0:08:11 > 0:08:16Let's look at the European markets, the FTSE up slightly. The others
0:08:16 > 0:08:16down.
0:08:16 > 0:08:18Samira Hussain has the details about what's ahead
0:08:18 > 0:08:20on Wall Street Today.
0:08:20 > 0:08:22On Wednesday the US Labour Department will release export
0:08:22 > 0:08:26and import prices for December.
0:08:26 > 0:08:29Now, these measures show how prices of a market basket of goods
0:08:29 > 0:08:31in international trade change from one month to the next.
0:08:31 > 0:08:34Now, these numbers are used to predict possible future
0:08:34 > 0:08:39inflation, to set fiscal and monetary policy,
0:08:39 > 0:08:41to measure exchange rates, forecast futures prices and,
0:08:41 > 0:08:50of course, to negotiate trade contracts.
0:08:50 > 0:08:52Now, the import prices are expected to have increase by 0.5%
0:08:52 > 0:08:55in the month after a rise of 0.7% in November.
0:08:55 > 0:08:57Export prices are likely to have risen 0.3% in December,
0:08:57 > 0:09:03compared to a 0.5% rise in the month before.
0:09:03 > 0:09:04Home-builder, Lennar, will report higher profits and revenue
0:09:05 > 0:09:07for the last three months.
0:09:07 > 0:09:09The improving job market has been lifting demand for housing
0:09:09 > 0:09:12and investors will be looking for comments on the impact of
0:09:12 > 0:09:22changes in tax laws on home sales.
0:09:25 > 0:09:27Nandini Ramakrishnan is Global Market Strategist at JP
0:09:27 > 0:09:36Morgan Asset Management.
0:09:36 > 0:09:40Thank you very much for being here. So you want to talk about
0:09:40 > 0:09:44unemployment in the eurozone first of all?Yes, it was released
0:09:44 > 0:09:49yesterday with a significant fall. If you look at it on the month it
0:09:49 > 0:09:52fell 08.1% -- 0.1%. It is the largest fall in unemployment over
0:09:52 > 0:09:55the past 12 months in the eurozone. That means in real terms that people
0:09:55 > 0:10:01are employed more than ever in the eurozone. Good for consumers, good
0:10:01 > 0:10:05for confidence and retail sales, the more people are in work, the better
0:10:05 > 0:10:08the economy does. That's one of the reasons we like the eurozone.
0:10:08 > 0:10:12Something good for France on the closing day of that Macron trip to
0:10:12 > 0:10:19China?The Airbus deal.184?A lot of money on the table there if it
0:10:19 > 0:10:25gets finalised. A big, big symbolic thing as well for France because the
0:10:25 > 0:10:28Macron presidency was based on making France a leader in the
0:10:28 > 0:10:31business world and making it more efficient for global business and if
0:10:31 > 0:10:34the deal goes through with China, the leading economic fire house of
0:10:34 > 0:10:37the world then that could be big. That gift of a horse has really paid
0:10:37 > 0:10:44off.It could be.Oil prices sitting at a three year high?First, we have
0:10:44 > 0:10:48to remember that the production has been cut. So, the reason why the oil
0:10:48 > 0:10:51price fell in the past few years because the producers were pumping
0:10:51 > 0:10:55oil into the markets and the price was pushed down by that over supply.
0:10:55 > 0:10:59Now we have the producers pulling back a bit, we are seeing a higher
0:10:59 > 0:11:02oil price and some of the highest levels we have seen in the past few
0:11:02 > 0:11:05years and while that's important for just the oil price, it is important
0:11:05 > 0:11:10for the countries and economies that export that. They're in a better
0:11:10 > 0:11:13position because they can get more money off the sales, but the people
0:11:13 > 0:11:16who buy that. So it will be interesting to watch.What do you
0:11:16 > 0:11:19make of this World Bank report about economic growth.I think it is
0:11:19 > 0:11:22emphasising what we have been saying for a while, growth is looking good
0:11:22 > 0:11:26around the world for the first time since the economic crisis, we are
0:11:26 > 0:11:32seeing every economy in the globe growing and that's huge. In 2009 if
0:11:32 > 0:11:39you look at the map, most economies were shrinking.Good to have you on.
0:11:39 > 0:11:43Thank you very much.
0:11:44 > 0:11:46Still to come, we'll be joined by Nadja Swarovski,
0:11:46 > 0:11:49the first ever woman to be appointed to the executive board of Swarovski.
0:11:49 > 0:11:53You're with Business Live from BBC News.
0:12:01 > 0:12:05The UK's second largest supermarket, Sainsbury's, has raised its profit
0:12:05 > 0:12:08guidance after record sales during Christmas week.
0:12:08 > 0:12:10Sainsbury's said it now expected annual profits to be up
0:12:10 > 0:12:15to £20 million better than expected despite supermarkets facing
0:12:15 > 0:12:17a "challenging" market.
0:12:17 > 0:12:19The chain sold 1.1% more in the 15 weeks to 6th January,
0:12:20 > 0:12:24with grocery sales up 2.3%.
0:12:24 > 0:12:26Joining us now is Neil Wilson, senior market
0:12:26 > 0:12:30analyst, at ETX Capital.
0:12:30 > 0:12:36Welcome to you. So how have they managed to do it?I think
0:12:36 > 0:12:39Sainsbury's have enjoyed the uplift from the trend that we saw in
0:12:39 > 0:12:46December. We saw the figures showing that Britons spent £1 billion over
0:12:46 > 0:12:51Christmas. Whilst the like for like sales growth was decent at 1.1% and
0:12:51 > 0:12:56ahead of expectation it is lagging competitors. We saw Morrisons at
0:12:56 > 0:13:012.8% and we have seen the German discounters Aldi and Lidl, they saw
0:13:01 > 0:13:07sales increase by 15%. 16% over December, so whilst the top end
0:13:07 > 0:13:13growth looks decent, there is still the relative values maybe not there.
0:13:13 > 0:13:16But food inflation presumably playing into the figures in a
0:13:16 > 0:13:20significant way as well.That's right. I think what we haven't seen
0:13:20 > 0:13:25today is the details on margins and we know in the first-half, the
0:13:25 > 0:13:29margins at intoes collapsed from 2.5% to below 2% and I think that's
0:13:29 > 0:13:33really something that needs to be addressed. Clearly, there is a lot
0:13:33 > 0:13:37of pressure with food inflation as you say, and that does flatten the
0:13:37 > 0:13:40top line sales. It is easy to generate higher sales when the
0:13:40 > 0:13:47prices are going up, but retail is all about margins and if intoes
0:13:47 > 0:13:50isn't improving its margins it is not doing as well as the top line
0:13:50 > 0:13:53figures suggest.Neil, thank you very much indeed for joining us.
0:13:53 > 0:14:03Thank you.
0:14:03 > 0:14:08Govia Thameslink franchise is not providing value for money. The
0:14:08 > 0:14:14largest rail franchise has not provided value for money. Passengers
0:14:14 > 0:14:16have suffered the worst rail disruption in the UK according to
0:14:16 > 0:14:19this highly critical report. It found the services had been the
0:14:19 > 0:14:27worst on the network since Govia Thameslink took over the route. The
0:14:27 > 0:14:31Department for Transport said the disruption caused a shortage of
0:14:31 > 0:14:36train crews and blamed not for having adequate staffing. It had too
0:14:36 > 0:14:45few drivers when it was awarded the franchise in the first place.
0:14:45 > 0:14:48You're watching Business Live.
0:14:48 > 0:14:49Our top story:
0:14:49 > 0:14:52The World Bank says it expects the global economy to pick
0:14:52 > 0:14:54up speed this year and to operate at close
0:14:54 > 0:14:58to full potential for the first time in a decade.
0:14:58 > 0:15:01For over a century, the Swarovski name has been synonymous
0:15:01 > 0:15:03with luxury crystals - the Austrian firm supplied crystals
0:15:03 > 0:15:05for Queen Victoria's dresses.
0:15:05 > 0:15:11It was founded by Daniel Swarovski in 1885.
0:15:11 > 0:15:12His great, great grand daughter Nadja Swarovski
0:15:12 > 0:15:15made history in 2011, by becoming the first woman to be
0:15:15 > 0:15:19appointed to the executive board.
0:15:19 > 0:15:24She oversees the brand strategy of Swarovski's
0:15:24 > 0:15:26$3.8bn global business, working with the fashion industry
0:15:26 > 0:15:31and designers to keep crystals contemporary.
0:15:31 > 0:15:35Nadja Swarovski joins us now.
0:15:35 > 0:15:40I went to a gallery just before Christmas and I saw some art using
0:15:40 > 0:15:45the crystals, you are branching out. It is a multifaceted product and I
0:15:45 > 0:15:50was proud to see it used in such a beautiful way. It can go into a
0:15:50 > 0:15:54different direction but this is what we are trying to do, to steer
0:15:54 > 0:15:59designers into the right direction in terms of the use of crystal.Take
0:15:59 > 0:16:02us back, in its heyday it was of course used by the fashion houses of
0:16:02 > 0:16:06the day and then it fell into decline in terms of its usage there
0:16:06 > 0:16:12and became really well-known for crystal animals in the 70s. What
0:16:12 > 0:16:14happened, how did that happen and how did you resurrect it so
0:16:14 > 0:16:24successfully?They heyday was the late 40s and 50s when we saw style
0:16:24 > 0:16:27icons experimenting with fashion and different materials within their
0:16:27 > 0:16:30fashion and I have to say it was my grandfather who work very closely
0:16:30 > 0:16:37with them. I heard stories by him of working with these people and
0:16:37 > 0:16:41eventually when I found myself joining the company you are right it
0:16:41 > 0:16:45was all about the crystal animals which was wonderful because I
0:16:45 > 0:16:48appreciate how hard it is to make those crystals but I felt the
0:16:48 > 0:16:54heritage was not properly reflected. So I think the decline happened
0:16:54 > 0:16:59because perhaps there was the inappropriate use of crystal and as
0:16:59 > 0:17:03mentioned it's so important to implement the crystal in the right
0:17:03 > 0:17:06creative way to find the right creative expression in order to be
0:17:06 > 0:17:11beautiful.How do you contain that and control something like that
0:17:11 > 0:17:16without actually restricting the obvious growth you looking for?You
0:17:16 > 0:17:20try to lead with a good example and the way we brought ourselves back to
0:17:20 > 0:17:27the forefront of fashion was by once again teaming up with people like
0:17:27 > 0:17:31Alexander McQueen who brought us back into the rightful position. You
0:17:31 > 0:17:35use people like that to demonstrate the creative merit of crystal and
0:17:35 > 0:17:39hopefully the industry follows and that was the case with Alexander
0:17:39 > 0:17:42McQueen. Our challenge is to continue to find innovative
0:17:42 > 0:17:48designers that inspire the rest of the industry, whether it's fashion,
0:17:48 > 0:17:52jewellery, architecture or art.You have five quite the path in terms of
0:17:52 > 0:17:55running the company, when you took over you had challenges within the
0:17:55 > 0:18:01company itself to drag it in the direction he wanted to go.It was a
0:18:01 > 0:18:04challenge but if your last name is the name of the company you
0:18:04 > 0:18:09certainly feel a strong motivation to position the product in its
0:18:09 > 0:18:15rightful way. I have to say it's all has been very inspirational to see
0:18:15 > 0:18:21how the market responded, not just creatively but also financially and
0:18:21 > 0:18:24we see it very often when we have standing initiatives that the
0:18:24 > 0:18:30financial rewards follow. Therefore it's important for us to demonstrate
0:18:30 > 0:18:36a very good position creatively. Tell us about your background, did
0:18:36 > 0:18:41you go straight in?Absently not, my father was in charge for 44 years as
0:18:41 > 0:18:45was my grandfather and every conversation was the business so I
0:18:45 > 0:18:49thought I don't want to work in the business. It wasn't until I studied
0:18:49 > 0:18:53art history and find my path in fashion I actually knew about the
0:18:53 > 0:18:59company and I realised what I could contribute.The founding principles
0:18:59 > 0:19:03of your great, great, great grandfather, presumably you have
0:19:03 > 0:19:08followed those to keep the continuity going.Absolutely, I grew
0:19:08 > 0:19:13up in an environment of hard-working people passionate about what they
0:19:13 > 0:19:16have created, my great, great grandfather was the first to use
0:19:16 > 0:19:20electricity to power his machines, eventually moving to Austria were
0:19:20 > 0:19:25used hydro electricity in 1895 which was so cutting edge. That is what
0:19:25 > 0:19:29made the company as big as it was. This is the challenge today, how do
0:19:29 > 0:19:33we keep up the innovation, what do we do and how do we implement our
0:19:33 > 0:19:36technology to create a product which is totally irrelevant to the
0:19:36 > 0:19:42consumer and in powers the consumer? Tell us about that, you have created
0:19:42 > 0:19:50this crystal mesh?Yes, it was another material, metal on top of
0:19:50 > 0:19:54which we applied the crystals, so it's like a fabric, it's very fluid,
0:19:54 > 0:20:01you can use it in jewellery and clothing.I long does it take to
0:20:01 > 0:20:08make?It is a very tedious process but in a nutshell, how long does it
0:20:08 > 0:20:13crystal mesh? We melt the crystal, we melt the glass in tonnes and then
0:20:13 > 0:20:18it goes into smaller moulds and they are cut, then eventually they are
0:20:18 > 0:20:25sorted out by quality, so it's a long process and very tedious and
0:20:25 > 0:20:29intricate.Really good to talk to you, I actually wrapped up one of
0:20:29 > 0:20:36your bracelets last night to give to as a gift to somebody.I really hope
0:20:36 > 0:20:41that person feels empowered.Thank you for coming in.
0:20:41 > 0:20:44Now, they may be out of the reach of you and I -
0:20:44 > 0:20:47but a report out today suggests that the market for
0:20:47 > 0:20:48superyachts is booming.
0:20:48 > 0:20:50One particular winner in the global race to attract billionaire dollars?
0:20:50 > 0:20:51The British yachting industry.
0:20:51 > 0:20:53For more, our business correspondent Kim Gittleson
0:20:53 > 0:20:58is at the London Boat Show.
0:20:58 > 0:21:06I bet there are some beauties there. It's quite astounding, I am
0:21:06 > 0:21:09surrounded by some of the most expensive boats and yachts on the
0:21:09 > 0:21:16planet. Anything less than 24 metres, around 80 feet is just a
0:21:16 > 0:21:20yacht, not a superyacht these days. One of the biggest benefit trees has
0:21:20 > 0:21:24been the British board and yacht industry, report this morning
0:21:24 > 0:21:31suggesting cells in the past year have increased by 3.4% to £3.1
0:21:31 > 0:21:35billion or around $4.2 billion. One reason is the weaker pound as a
0:21:35 > 0:21:38result of Brexit making a lot of the boats here more to international
0:21:38 > 0:21:46buyers. I will be here all day looking at over 300 exhibitors to
0:21:46 > 0:21:50try to figure out what you get if you buy one of those yachts or
0:21:50 > 0:21:59boats. Stay tuned for more.Thank you very much. I'm not sure what the
0:21:59 > 0:22:02cheapest one is. I don't think it would be in either of our price
0:22:02 > 0:22:04ranges!
0:22:04 > 0:22:07Nandini is back to look at the papers.
0:22:07 > 0:22:12We have got a story, I am tried to get it on the website, it's about 5p
0:22:12 > 0:22:16plastic bags at the moment it's only big shops that do that but they
0:22:16 > 0:22:21might extend it to corner shops and smaller operations.It's
0:22:21 > 0:22:26interesting, the government says the 5p charge on bags has reduced usage
0:22:26 > 0:22:32by 90%.It's been huge. In such a short beaded of time.I think that
0:22:32 > 0:22:37is the key, as an economist you'd think by P is not as much as what
0:22:37 > 0:22:41you are buying but it's the extra cost which deters people from
0:22:41 > 0:22:46wanting it, so I think the logic of it applies to more stores, different
0:22:46 > 0:22:51bags, there could be success is no long term.Is there any concern
0:22:51 > 0:22:57about where all this money goes?It does not seem it's a huge part of
0:22:57 > 0:23:00this story. I think the general sense is it is to reduce waste and
0:23:00 > 0:23:04be better for the environment and I think broadly you could say most
0:23:04 > 0:23:09people would be on board with that. There is a huge backlash about all
0:23:09 > 0:23:13this waste, we did a story about copy cups the other day but I think
0:23:13 > 0:23:17people are generally on board. Everyone wants to do their part.
0:23:17 > 0:23:26It's simple if you don't want to play on a plastic bag take your own.
0:23:26 > 0:23:38Or easy cloth bag. Or a trolley. Toyota and Mazda picking Alabama for
0:23:38 > 0:23:43a big investment, 1.6 billion.They are thinking about starting a new
0:23:43 > 0:23:48venture in the US state of Alabama, it would produce 200,000 vehicles
0:23:48 > 0:23:53per year which is huge. Definitely a big thing for a country like the US,
0:23:53 > 0:23:58we think about with the UK and Europe as well, not known for
0:23:58 > 0:24:02manufacturing, it's a dying or a weekend part of the economic space.
0:24:02 > 0:24:07Where does this play into Donald Trump's views about Japanese cars
0:24:07 > 0:24:14and tariffs?I think the fact it's been made in America and
0:24:14 > 0:24:18manufactured in America and will employ 4000 people in a state which
0:24:18 > 0:24:23is not always at the top of economic output lists could be very good for
0:24:23 > 0:24:26the campaign promises as well as just bringing up different parts of
0:24:26 > 0:24:33the US economy to catch up with other parts.Bad news for North
0:24:33 > 0:24:37Carolina, interesting in terms of what the states could offer in terms
0:24:37 > 0:24:42of supply chains.Yes a lot of competition in American states but
0:24:42 > 0:24:46on the whole it looks like it would be good for the US and certainly
0:24:46 > 0:24:48symbolises the sense of manufacturing and global trade
0:24:48 > 0:24:54happening more and more.Do you think big companies do want to play
0:24:54 > 0:24:59ball with Donald Trump, they are listening to what he said?Yes,
0:24:59 > 0:25:03political or maybe social use a site he is the leader of one of the
0:25:03 > 0:25:11largest economies in the world which has a lot of manufacturing power. As
0:25:11 > 0:25:16well as global presence. People care about what America does and makes.I
0:25:16 > 0:25:20was wondering if this would change any domicile line of companies
0:25:20 > 0:25:24bearing in mind the tax reforms which have gone through.That
0:25:24 > 0:25:27something we are looking at, which could boost a lot of American
0:25:27 > 0:25:32companies and has been one of the reasons we like American equities,
0:25:32 > 0:25:36it's a complicated tax loss we have to see how it affects various
0:25:36 > 0:25:43companies, if they are domiciled in America are not, it should be an
0:25:43 > 0:25:48interesting year for companies.And the best option is to be stateless
0:25:48 > 0:25:53and not pay anything anywhere! Good to see you, thank you. Goodbye for
0:25:53 > 0:25:55now.