16/01/2018 BBC Business Live

This is Business Live from BBC News,

with Sally Bundock and Ben Thompson.

Germany's biggest trade union

is threatening strike action

unless employers meet its demands

for a pay rise and an optional

28 hour working week.

Live from London, that's our top

story on Tuesday 16th January.

The metalworkers union is the most

influential trade body in Germany -

the negotiations could set

a precedent for a huge proportion

of the country's workforce.

We will be live in Berlin for the

latest.

Also in the programme....

The UK supermarket Iceland says it

plans to cut the use of plastic

in its own brand products

within the next five years.

Will others follow suit, and is this

idea impact how you shop?

The trading day has got started in

Europe to a fairly good start, we

will talk you through the winners

and losers.

Taking on the big boys -

we'll be speaking to the boss

of a voice recognition company

hoping to compete with the likes

of Google and Amazon.

We will speak to him later. As the

supermarket chain Iceland says it

wants to ban all product on its own

brand products, we want to know if

you can live without plastic and if

it will change how you shop. Just

get in touch with us in the usual

way, using the hashtag #BBCBizLive.

A very packed programme as usual. A

warm welcome to you.

Germany's biggest trade union has

threatened to call for a 24-hour

walkout as part of talks over pay

and working conditions.

IG Metall represents the rights

of 2.3 million workers

in the industrial sector,

but the negotiations are seen

as a benchmark for how pay

is set in other areas

of the German economy.

The union has demanded a 6% increase

in salaries and the option

for a 28-hour working week

for its members.

For those who would like to do so.

This would allow employees to look

after young children

or ageing relatives.

And IG Metall is also pushing

for an additional allowance of 200

euro per month to help offset

the loss in salary.

With unemployment at record lows,

German workers are in a strong

position to negotiate for better

pay and conditions.

German productivity per hour -

which is a key determinant of wages

- is among the highest in the world,

with countries like the UK

and Japan lagging way behind.

Damian McGuinness joins

me live from Berlin.

Nice to see you. Running through

some of the details, what jumps out

at me is the productivity figure,

the idea that German workers are

more productive so even if they

worked a few hours they would be on

the same level as everybody else in

Europe?

That is certainly what German

workers would say. Since 2003, and

stuffed labour market reforms came

through, we have seen a lot of wage

restraint here, which is one of the

reasons why productivity is so high.

Over the last few years, the German

economy has been firing on all

cylinders, meaning we have had

record exports and profits. Now

workers say it is time that wages

went up in line with company

profits. As Sally quite rightly

mentioned, workers feel in a strong

position, pretty emboldened, partly

by a strong economy but also because

unemployment is

so low. Employers say they can't get

enough workers, so workers know they

are in a strong position to put

forward some quite ambitious

demands. But that is also one reason

why employers feel reticent about

allowing workers to go for few

hours, they say they already have

difficulty getting the manpower in,

that is one of the problems Germany

will face going forward. They say

they can't let workers... If large

numbers of workers start working 28

hours instead of 35, some firms say

they will struggle.

Can employers afford it? Given they

look like they are in a wallet -- a

relatively weak position given

everything you have outlined, the

question is if they can afford it.

Profits are up, can they paid staff

more?

Depends on each individual

industry. Some industries are doing

really well, exports keep increasing

every quarter, almost. But what this

union actually wants, lots of it is

in line with what the centre-left

social Democrats want in the new

governing coalition, so

interestingly it is not just one

union saying this is what we want,

it is lots of workers across the

country who are not unionised. What

is interesting about this particular

trade union and this particular set

of strike action is right to January

is that if the employers say they

will go for it, it will feed into

the governing coalition

negotiations, so it might end up

that whether employers can afford it

or not, they will have to put

forward at least some of these

options for workers, such as an

optional lower working hours per

week, combined with lower pay, of

course, but it is part of a whole

debate in Germany that because

workers know there in a strong

position because employment is so

low, -- unemployment is so low, then

the whole legal framework might

change and employers might be forced

to put forward some of these

actions, whether they can afford it

or not. There is pressure on

employers to ask what many people

would say would be a socially

responsible way to help workers

struggling to combine a job and

family commitments.

Thank you very much, Damien McGrane

is in Berlin, outlining what could

be a pretty fractious battle between

employers and employees.

Let's take a look at some of

the other stories making the news.

Thousands of small firms working

for failed construction giant

Carillion are waiting to learn

if they will be paid,

amid growing fears some could close.

Carillion used an extensive

network of sub-contractors

and local suppliers,

paying them almost £1

billion a year, according

to its latest annual report.

Critics have stepped

up calls for a review

into the Carillion crisis.

British supermarket chain Iceland

has said it will eliminate

or drastically reduce plastic

packaging of all its own label

products by the end of 2023.

The move will effect more

than a thousand own label products.

Iceland also said its research found

that 80% of shoppers would endorse

a supermarket's move

to go plastic free.

Lots of you have been getting into

it about that and we will talk to

you about that later. Peshmerga

getting in touch about that.

And if you need to know what time

it is, then head to Geneva.

The Swiss watch industry

is gathering there to showcase

its latest creations,

and we're talking

mechanical watches here.

But it can be a costly affair -

one brand's new "affordable range

for the younger buyer"

starts at $11,000.

I have two! I thought so, one for

each wrist! One watch and the

back-up watch. If you watch last

week, you will know he needs a

watch.

I slept through my alarm.

That was the Tim and Samantha show.

Speaking of expensive stuff...

The surge in value of Bitcoin over

the past year has led authorities

scrambling for ways to regulate it.

Last week, the South Korean

government hinted it may

ban them altogether,

but the decision hasn't gone down

well with the public.

Leisha Santorelli can

explain for us, she's

in our Asia business hub.

It is particularly younger people,

looking at the figures, who say they

want to keep bitcoin?

That is

correct, a survey out from South

Korea last year shows that more than

60% of the bitcoin investors are

actually aged 30 or longer. --

younger. So the South Korean

government is concerned about the

crazy around crypto currencies.

Korea is a hotbed for that sort of

currency. They are thinking about

banning it to regulate the sector.

But the Government faces a very

public backlash. South Korea was my

presidential office has received an

online petition opposing these moves

to regulate bitcoin Ndidi crypto

currencies -- South Korea's

presidential office. It has

collected 200,000 signatures very

quickly, a threshold which will

compel the South Korean government

to respond. Bitcoin is very popular

among young people in South Korea.

There is actually something called a

Fed premium in South Korea, because

it trades at a higher price in this

country.

The great debates about crypto

currencies is ongoing in many parts

of the world.

Let's look at financial markets in

Asia. A mixed day, Japan had a good

session, as did Hong Kong at almost

2% at the close.

The Dow

2% at the close.

The Dow, there was no action on

Monday because of the one-day

closure for the Martin Luther King

Jr Day.

Lots of earnings to grab our

attention this week. Companies like

Goldman Sachs are reporting. Let's

look at Europe, a big mover in

London, this is what we will talk

about in more detail at a moment,

and engineering contractor which

carried out work by communion -- for

Korean is down by 10%. Rail

maintenance work. It has £1.6

million owed by Kerry on and it had

future work worth around £2.5

million. -- it had £1.6 million owed

by Carillion. UK inflation numbers

are out, we will talk more about

that.

And Samira Hussain has

the details about what's ahead

on Wall Street today.

US markets were closed on Monday so

there may be a lot of eye rubbing as

people come off a three-day weekend.

Two companies reporting earnings on

Tuesday with knowing, Citigroup is

the fourth-largest bank by assets

and its results are expected to show

no gain in quarterly income,

compared to same time last year.

That is because its results will

include some $20 billion of charges

related to the new US tax law. Also

reporting can United health group.

This will be interesting to watch

given a tax reform has delivered a

blow to the health care industry.

United health is then treat --

country's largest health insurer and

a bellwether for the industry and it

is expected to comment on the

changing landscape of the market and

layout plans on expanding business

in the New Year, giving rising the

competition -- given rising

competition.

Joining us is Jane Foley, senior

currency strategist at Rabobank.

Nice to see you. Let's pick up on

the issue of Carillion, the fallout

is becoming quite clear. The ones

that were gaining a potentially the

rivals of Carillion which could

sleep in for contracts, the ones

losing had joint ventures or were

tied in some way to Carillion.

A tale of two halves?

And lots of

the ones losing were involved in

pubs private sector contracts. These

guys will probably had to pick up

the costs. Sullo firm could be

significantly out of pocket. The

ones announced yesterday, that this

is the case then, included Balfour

Beatty and an infrastructure company

from Scotland, he would have to come

up with potentially millions of

pounds to keep the project going.

Those involved in Government

schemes, the Government has given

reassurance to the workers and said

they will carry on being paid if

they are involved in building

schools, hospitals and military

installations etc. It is a tale of

two halves. It is whether you can

jump in and get extra business or

you are a private contractor with a

business relationship.

Two things grabbing attention is on

the markets, the price of oil is

edging up and up, closing on Monday

in London about $70 a barrel for the

first time in three years. Inflation

numbers are right in the UK and

energy prices have a big impact on

inflation.

Talk as through your expectations?

The high price of oil will affect

not just UK inflation but inflation

across the world, particularly

company -- countries that import a

lot of oil, like Japan.

Inflation is being paid up, growth

is that a really strong level,

strong growth in Europe, Japan,

China, the US.

The expectation is

that that will carry on, lots of art

is to do with commodities?

If we have a country like China, the

biggest consumer of commodities

growing widely, commodity prices go

up. There are lots of different

issues. China is trying to close

down some of its dirtiest coal

mines.

All rising, strong demand, how far

can it go?

We will wait and see. You will talk

as do the Iceland story, it is

fascinating, the idea that the

supermarket might try to ban plastic

by 2023. For now, thank you.

And still to come:

Forget typing.

Start talking.

Get that the right way round!

With the boom in smart devices

that you can talk to -

we meet one firm that says it

will also revolutionise

the way we shop.

You're with Business

Live from BBC News.

Let's talk about some companies with

profits news out.

Greggs has met market expectations

for the Christmas period,

with like-for like sales of 3%

in the fourth quarter.

-- like-for-like

in the fourth quarter.

-- like-for-like sales

in the fourth quarter.

-- like-for-like sales up

in the fourth quarter.

-- like-for-like sales up 3%.

in the fourth quarter.

The baker also announced it

expects inflationary

pressures to have a impact

on its 2018 results.

Theo Leggett is in our business

newsroom with more.

It feels like we talk about Greg is

quite a lot, have you a particular

fondness for it? -- it feels like we

talk about Greggs quite a lot.

I

prefer Artisan bakers, but Greggs is

very popular and seems to be

continuing with its growth plans.

Sales up 7.4%, in like-for-like

terms just over 3%, 3.7% last year.

Investors are still looking at this

and they do not seem quite able to

digest the news. Shares being up and

down a little like a yo-yo,

currently just over 1%. It seems

like Fed is managing to maintain

momentum, it is still opening stores

and racking up sales despite the

fact that over the past year it says

the cost of its ingredients have

gone up. -- Greggs is managing to

maintain. Employment costs have gone

up. There have been pressures on the

business. Nevertheless, and despite

the fact it has had to put up the

prices of things like sausage rolls,

it seems to continue growing in

sales.

It is the issue of disposable

income, whether we trade up or down

if we are feeling worse off in our

pocket. Greggs manages to sit in the

middle?

Greggs tries to keep its

sales down to a price. It had to put

an extra five pence on a sausage

roll. That was a big increase,

something like 12%. So there are

pressures on the business and at a

time inflation, incoming prices and

prices for the products that it uses

to make past tees, they have been

going up. Increases in the minimum

wage, all of that puts pressure on

the company, but for the moment, it

seems to be weathering that

pressure.

Theo, thank you very much

indeed.

A couple of movers on the FTSE 100.

Two blue stocks on the way down,

RBS, shares down 2.2%ment again

because of the Carillion story. Of

course, it is one of the key lenders

to the collapsed contractor, but

also BP's shares are down a 1%. It

announced additional charge on

compensation for the Deepwater

Horizon disaster.

You're watching Business Live.

Our top story:

Germany's biggest trade union has

threatened to call for a 24-hour

walk-out as part of talks over pay

and working conditions.

IG Metall represents the rights

of 2.3 million workers

in the industrial sector,

but the negotiations are seen

as a benchmark for how pay

is set in other areas

of the German economy.

Now hands-free hasn't always been

stress-free when it comes

to computers and other electronics.

More and more we're using our voices

to control the devices we use

everyday, but it's been decades

in the making.

In 1962, IBM unveiled its Shoebox

machine at the World's Fair,

which could understand 16 words

spoken in English.

The first example

of voice recognition.

Now we have Siri, Alexa,

Google Home, leading

to 33 million voice activated

devices in circulation.

And every year that

number is growing.

But what if you don't want

the Amazons and Googles

to have your information?

Voysis is a voice recognition

company that says it can offer

bespoke voice services that aren't

linked to the big web giants.

Dr Peter Cahill is founder and chief

executive of Voysis.

We are sort of getting used to the

idea of being able to talk to

devices, aren't we? At the moment

they are run by Apple and Google and

they have a lot of data on us. What

you're offering is something

different?

I think for businesses

and retailers in particular, a lot

of them are quite concerned about if

the way things emerges the only way

you can buy a product online is by

talking to Amazon then Amazon can

give you that product directly or

they can control which retailer that

product is going to come from. For

any of the other major retailers out

there, they want to have a voice

alternative maybe it is via a smart

speaker or maybe it is just on their

mobile app or on their website.

You

were telling me interesting

statistics about Amazon Echo, it

proves that people shop more and

they spend more money which is what

the Amazons of this world want?

Amazon said they have more revenue

via Google Echo than for Prime

accounts on average which is a very

dramatic figure.

Normally these

things take a long time to build,

but it is an overnight change. Your

software would work with individual

retailers so I can go on a website

of an individual retailer and talk

to the website?

Absolutely. So you

can still type in wh you want to do

so, but from the retailers point of

view, you would have a microphone

icon, so it is not always listening

to you, but when you talk to it, the

eye that's powering this are aware

of what products they sell and how

people describe the products. Maybe

if you are on a website for a

retailer and you tap the microphone

icon, you can describe what you're

looking for. When you see search

results you can say I want something

like this, but maybe darker or

bigger or cheaper, whatever. You can

just interact with it in a more

natural way which reduces friction.

You're really focussing on US

retailers because you have got a

real interest from them because they

want to compete with Amazon there on

a voice activation level, but not so

much here or in other countries, why

is that?

I think the US what we have

found is, certainly many of the

biggest retailers in the world are

in the US.

He they just ahead of the

game?

I'm not sure I would phrase it

as ahead. From a strategic point of

view, for all of them Amazon is

their number one competitor, if they

see Amazon's voice figures growing

in a short time frrks a strategic

point of view, they need to

exploring it and understand it and

deliver something compelling for

their customers.

It is interesting

how you talk about having a nar

natural conversation. We start

speaking in language that's not

human. We start talking in stunted

phrases, "Alexia, do this."

I would

say natural language. I think, I

don't think we need conversation

from any of these applications just

yet! If you can just say what you're

looking for and you don't want to

have this back and forth and have a

chat with it, but using natural

language where we can be more

descriptive.

It is so interesting.

Come back and see us and let us know

how it's going.

Dr Peter Cahill there.

He is the founder of Voysis.

Self-driving or autonomous cars have

been a big focus for every

major auto maker around the world.

Yogita Limaye is at the Detroit Auto

Show and has been checking

out what is on offer.

This is a self driving vehicle

tested by Forked to deliver pizzas.

It looks like a normal car and those

spinning things on the top are the

sensors. I will take you around the

car to see what the car is actually

seeing. That little red dot there

behind the car, that's me. So that's

what the car is seeing so it can

make decision on where to turn,

whether to stop, whether it can

accelerate and Ford is not the only

car maker that's talking about cars

like this. Pretty much everyone at

the Auto Show is and they are

investing money into research and

development. The Government does

play a key role, how will they

regulate it? We had the Transport

Secretary of the US Government here

yesterday saying they don't want to

have a command and control approach.

So, saying they don't want to

interfere with innovation, but of

course, safety is a big concern for

them. But also very much saying that

the onus is on car companies to make

people feel confident about vehicles

like these.

General Motors made a request to the

US Government to allow them to put

this vehicle on the roads as early

as next year. No steering wheel or

pedals. But many other car makers

think the world's not ready for that

just yet. These advances in

technology are coming at us faster

than we had ever imagined so the

question facing governments and

indeed, facing all of us are we

ready to concede control to machines

and software?

Well, some of us, and some of us

aren't! I'm not. He is. Jane is

back.

We are going to talk about Iceland

and its ambition to rid itself of

plastic packaging by 2023.

Yes.

This

is on its own products. It has other

products.

One of the interesting

things which doesn't surprise me at

all and I'm sure it doesn't surprise

your audience, 80% of its customers

think it is a good idea. This has

been noticeable in recent years.

People are tired of plastic around

cucumbers. People are tired of huge

amounts of recycling in the street

and one thing that annoys me, given

this is a good idea to cut down on

the packaging is we have been so

slow to do it. One of the catalyst

in Theresa May's speech about

cutting down plastic waste is that

China, of course, has been recently

refusing to take a lot of our

plastic recycling. Course a lot gets

exported to China to be recycled. We

have build-ups at our recycling

sites. A lot will have to be burnt

and go into landfill and that's not

good for our environment. Finally

action has been taken, but I think

it's a bit slow.

Some will say it

has been easy, just ship the problem

somewhere else. A viewer says,

"Everyone can live without plastic.

We are making a problem." Mark says,

"A great start. I would love to do

my weekly shop without having to

take home a load of plastic."

Another viewer said, "Iceland didn't

give an option to have shopping

delivered without plastic bags."

Jean says, "Of course, we can live

without plastic. We're here, aren't

we, after millions of years without

plastic." A good point.

Do you think

it is enough to make people change

their habits?

I think the 25 pence

on the coffee cups is making people

think, do we really want to pay the

25 pence? Do we want plastic in our

ocean? It is a slow burn.

Thanks,

Jane.

Thank you for your company. We

will see you tomorrow. Bye-bye.