22/01/2018

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0:00:04 > 0:00:10This is Business Live from BBC News with Ben Thompson

0:00:10 > 0:00:11and Samantha Simmonds.

0:00:11 > 0:00:12Germany takes a big step towards finally

0:00:12 > 0:00:14forming a government, four months after holding

0:00:14 > 0:00:15inconclusive elections.

0:00:15 > 0:00:20Live from London, that's our top story on Monday the 22nd of January.

0:00:35 > 0:00:38Angela Merkel gets the go-ahead for coalition talks from her former

0:00:38 > 0:00:40partners, what will it mean for Europe's biggest

0:00:40 > 0:00:42economy and the rest of us?

0:00:42 > 0:00:45Also in the programme....

0:00:45 > 0:00:47The US working week begins with the government in shutdown,

0:00:47 > 0:00:53what will it take for Republicans and Democrats to break the deadlock?

0:00:53 > 0:00:56And that will weigh on markets today - but investors upbeat after strong

0:00:56 > 0:00:59global growth forecasts and a raft of healthy corporate earnings -

0:00:59 > 0:01:02we'll have the details.

0:01:04 > 0:01:07And all aboard the yacht share.

0:01:07 > 0:01:10We'll hear from the man whose says if you can't afford your own boat

0:01:10 > 0:01:16the sharing economy has rigged up all the answers.

0:01:16 > 0:01:19And at Amazon opens a supermarket with no

0:01:19 > 0:01:20And at Amazon opens a supermarket with no checkout, relying on cameras

0:01:20 > 0:01:23and computers to check your shopping, we want to know if it is a

0:01:23 > 0:01:25welcome move for the rise of the robots.

0:01:25 > 0:01:28Just use the hashtag #BBCBizLive.

0:01:36 > 0:01:40If it means you don't have to use those self-service checkouts,

0:01:40 > 0:01:44unexpected item in the bagging area, type things, it is good news as far

0:01:44 > 0:01:46as I am concerned!

0:01:46 > 0:01:48Just use the hashtag #BBCBizLive.

0:01:48 > 0:01:51Germany is creeping closer to forming a new government

0:01:51 > 0:01:53which would keep Angela Merkel in the top job.

0:01:53 > 0:01:55It comes four months after an election that

0:01:55 > 0:01:57delivered no clear winner.

0:01:57 > 0:01:58Talks will begin today after the centre-left

0:01:58 > 0:02:00Social Democratic Party changed its mind and said it

0:02:00 > 0:02:02would now hold talks with Chancellor Merkel's

0:02:02 > 0:02:08conservative CDU group.

0:02:08 > 0:02:12But it could mean big changes for what is Europe's largest economy.

0:02:12 > 0:02:14Over the past two years, Germany's economy has been

0:02:14 > 0:02:16growing consistently.

0:02:16 > 0:02:18Rising incomes have helped to boost tax revenue,

0:02:18 > 0:02:20but Mrs Merkel's government has been criticised for not

0:02:20 > 0:02:25spending the extra money.

0:02:25 > 0:02:29Germany remains the only country in the G7, the group

0:02:29 > 0:02:32of seven major economies, that earns more tax than it spends.

0:02:32 > 0:02:34In fact, Germany has the largest budget surplus of any

0:02:34 > 0:02:37country in the world.

0:02:37 > 0:02:40The Social Democrats want that to change.

0:02:40 > 0:02:42They're pushing for a cut in taxes for low earners,

0:02:42 > 0:02:50and an increase in spending on schools, pensions and housing.

0:02:50 > 0:02:55Pepijn Bergsen is the Germany Analyst at the Economist

0:02:55 > 0:02:59Intelligence Unit, which is a business advisory firm.

0:02:59 > 0:03:02Thank you for coming in. We are expecting this coalition deal to go

0:03:02 > 0:03:07ahead in days, if not weeks. What is it going to mean for the German

0:03:07 > 0:03:11economy? More of the same, or all change?I don't think the deal will

0:03:11 > 0:03:15have that much impact on the German economy itself. There are a few

0:03:15 > 0:03:18things they have agreed on so far. There will be more talks in the

0:03:18 > 0:03:21coming weeks and there might be some changes. But these are all

0:03:21 > 0:03:24relatively small, it is not a big rejigging of the German economy that

0:03:24 > 0:03:29will take place under effectively the same government that we have had

0:03:29 > 0:03:33over the last four years.As we have just been hearing, they have the

0:03:33 > 0:03:38biggest budget surplus in the world, the only other G7 countries do have

0:03:38 > 0:03:42one. Why are they holding onto this cash?Part of it is the very German

0:03:42 > 0:03:47preference for Alistair Burt jet, financial prudence. They have been

0:03:47 > 0:03:55spending more. -- the German preference for budget prudence. They

0:03:55 > 0:04:01want to keep that budget balanced. It shows what a fine balance it is,

0:04:01 > 0:04:06if you are in power in any country. Clearly, good news that they have a

0:04:06 > 0:04:09surplus, always better to have money in the bank for a rainy day. But

0:04:09 > 0:04:12there is criticism that they need to start spending it? I have touched on

0:04:12 > 0:04:17some of the areas where they want to spend it. Why have they not been

0:04:17 > 0:04:21doing so far?As I said, there has been some spending, but it has been

0:04:21 > 0:04:25quite limited and enough to counterbalance the really strong

0:04:25 > 0:04:28economy. On the other hand, Germany just really wants to run a budget

0:04:28 > 0:04:32surplus. Even if they do start spending, they have physical rules

0:04:32 > 0:04:36in place, which they have had in the last few years, saying that they

0:04:36 > 0:04:42can't go too much into deficit. If they do agree to new measures, I

0:04:42 > 0:04:49would not expect big changes in Germany.The eurozone needs this to

0:04:49 > 0:04:51go ahead, they need stability, Angela Merkel leading the country

0:04:51 > 0:04:56will someone else. Tell us how that will impact on their ambitious

0:04:56 > 0:04:59reform programme?With Emmanuel Macron coming in as President in

0:04:59 > 0:05:03France, there has been quite an ambitious reform agenda set out for

0:05:03 > 0:05:05the EU and eurozone. There is a really limited window of time in

0:05:05 > 0:05:12which they can end of this, which is the first half of this year. -- in

0:05:12 > 0:05:17which they can implement this. They need a government in place, not a

0:05:17 > 0:05:21caretaker capacity like the moment, but a full government in place with

0:05:21 > 0:05:24a mandate to go through with reforms.How rare is it to have such

0:05:24 > 0:05:30a surplus? I am taken by the fact that, given everything we have seen

0:05:30 > 0:05:34of the economy lately, and we acknowledge that the growth in

0:05:34 > 0:05:38Germany has been pretty strong and consistent, how rare is that?

0:05:38 > 0:05:42Extremely rare. As you said earlier, it is the only G7 country running a

0:05:42 > 0:05:45surplus. There are a few other countries in the world running small

0:05:45 > 0:05:52surpluses. None of these are the size of Germany in terms of economy,

0:05:52 > 0:05:56let alone the surplus they are running. That is incredibly rare.

0:05:56 > 0:06:01That has also come with a cost, on one hand. Germany has arguably not

0:06:01 > 0:06:05invested enough in infrastructure over the past decade at least. There

0:06:05 > 0:06:10has been a push to work on it in that direction, and to put more

0:06:10 > 0:06:12money into roads and other public infrastructure.Good to see you

0:06:12 > 0:06:15today, thank you.

0:06:15 > 0:06:16Let's today, thank you.

0:06:16 > 0:06:16Let's look today, thank you.

0:06:16 > 0:06:16Let's look at today, thank you.

0:06:16 > 0:06:16Let's look at some today, thank you.

0:06:16 > 0:06:16Let's look at some of today, thank you.

0:06:16 > 0:06:17Let's look at some of the today, thank you.

0:06:17 > 0:06:17Let's look at some of the other today, thank you.

0:06:17 > 0:06:20Let's look at some of the other stories making the news... The

0:06:20 > 0:06:24United States Senate is due to hold a vote at noon that could end the

0:06:24 > 0:06:28government shutdown. More than 500,000 federal workers are being

0:06:28 > 0:06:31forced to stay away from work until Republicans and Democrats can agree

0:06:31 > 0:06:34a deal on how to fund government spending. Essential services are

0:06:34 > 0:06:40continuing, but many such as visas and passports are being disrupted.

0:06:40 > 0:06:45Facebook says it will open three new centres in Europe to train 1 million

0:06:45 > 0:06:49people in digital skills. That is over the next two years. It wants

0:06:49 > 0:06:54them to use the platform to launch and expand businesses. The so-called

0:06:54 > 0:06:59community skills hopes will be located in Spain, Poland and Italy.

0:06:59 > 0:07:04Oxfam says global inequality increased last year with tax

0:07:04 > 0:07:08evasion, the erosion of worker rights and cost-cutting contributing

0:07:08 > 0:07:13to the gap. The charity says 82% of money generated went to the top 1%

0:07:13 > 0:07:16of the global population. It questioned how it reached the

0:07:16 > 0:07:17conclusion.

0:07:21 > 0:07:24Let's turn our attention to events in Asia.

0:07:24 > 0:07:26Share in the Japanese conglomerate Toshiba have risen amid reports that

0:07:26 > 0:07:28it's considering selling it's prized memory chip business

0:07:28 > 0:07:31on the stock market.

0:07:31 > 0:07:34We have talked so much about it. It could be floated on the stock

0:07:34 > 0:07:35market.

0:07:35 > 0:07:37The Financial Times said it was being considered as another

0:07:37 > 0:07:40way of raising the billions of dollars it needs

0:07:40 > 0:07:42because of the problems at its US nuclear unit.

0:07:42 > 0:07:47Christine Hah is in our Asia business hub is in Singapore.

0:07:47 > 0:07:51I touched on the fact we have talked about this so many times, and

0:07:51 > 0:07:56finally there might be an end in sight?Well, actually, there is a

0:07:56 > 0:08:00hard end, the end of March, the deadline that they are waiting for.

0:08:00 > 0:08:03If you remember back in September, Toshiba had agreed to sell the

0:08:03 > 0:08:11lucrative memory chip business to a consortium led by Bain capital. But

0:08:11 > 0:08:13it was quite desperate then, liabilities were more than asset and

0:08:13 > 0:08:17it was facing a possible delisting from the Tokyo stock exchange. Since

0:08:17 > 0:08:20then, Toshiba has managed to raise money from an equity issuance, which

0:08:20 > 0:08:24let it pay down some of the liabilities. It is in a much better

0:08:24 > 0:08:28bargaining position now. So, some shareholders are saying that the IPO

0:08:28 > 0:08:31option is a much better deal and that it should walk away from the

0:08:31 > 0:08:36agreement. That is where the anti-trust regulators are at the

0:08:36 > 0:08:40moment. They have until the end of March to approve the deal. If no

0:08:40 > 0:08:44approval is granted, Toshiba can supposedly just walk away and

0:08:44 > 0:08:47consider other options. Even if approval is granted, some people are

0:08:47 > 0:08:50saying that Toshiba could still find a better option. Toshiba still says

0:08:50 > 0:08:56it is committed to the Bain sale, but investors like the alternate

0:08:56 > 0:09:02option. Shares jumped by as much as 7% today, before closing a little

0:09:02 > 0:09:06bit lower.Something tells me we might speak about this again at some

0:09:06 > 0:09:10point in the near future! That have a look at the numbers. There is a

0:09:10 > 0:09:13new trading week.

0:09:13 > 0:09:14A bit more caution amongst investors,

0:09:14 > 0:09:17coming after Hong Kong hit new all-time highs and Tokyo's

0:09:17 > 0:09:24Nikkei cracked 24,000 for the first time in 26 years last week.

0:09:24 > 0:09:26All of that momentum moving markets upwards.

0:09:26 > 0:09:28Markets barely moved across Asia by the close -

0:09:28 > 0:09:31all keeping an eye on the US where that government

0:09:31 > 0:09:33shutdown continues.

0:09:33 > 0:09:37In Europe, attention likely to be on two important central bank

0:09:37 > 0:09:40rate meetings this week.

0:09:40 > 0:09:43Firstly the Bank of Japan meets for the first time since that

0:09:43 > 0:09:46unexpected tweak of monetary policy this month - cutting its monthly

0:09:46 > 0:09:51bond buying program.

0:09:51 > 0:09:53And on Thursday the ECB meeting will contend with the rise

0:09:54 > 0:09:57in the value of the euro.

0:09:57 > 0:10:00Officials there have already warned that a strong currency isn't

0:10:00 > 0:10:03particularly what they need at the moment.

0:10:03 > 0:10:07More on that shortly, but first to the US where Samira Hussain has

0:10:07 > 0:10:10the details about what's ahead on Wall Street Today.

0:10:10 > 0:10:14On Monday, streaming giant Netflix will be reporting earnings. Its most

0:10:14 > 0:10:20popular shows like The Crown, Stranger Things, will be boosting

0:10:20 > 0:10:24revenue and profit. Netflix has been setting aside more money when it

0:10:24 > 0:10:29comes to creating content, so they can better compete with rivals. As a

0:10:29 > 0:10:32result, it had to raise the price for its servers. So, investors will

0:10:32 > 0:10:38be looking for comments on how viewers have reacted. Also

0:10:38 > 0:10:43reporting, Haliburton. The renewed drilling boom in the United States

0:10:43 > 0:10:47will help the company's profits. Halliburton, which makes about 55%

0:10:47 > 0:10:53of its revenue from North America, is benefiting from higher US

0:10:53 > 0:10:56production, which is expected to surpass 10 million barrels per day

0:10:56 > 0:10:59in the month of February.

0:10:59 > 0:11:01Joining us is Shaun Port, Chief Investment Officer

0:11:01 > 0:11:05at investment management company, Nutmeg.

0:11:05 > 0:11:09Good to see you. Let's talk about the US Federal shutdown. Last time

0:11:09 > 0:11:14it happened in 2013, it closed 14 days. So far we are only going a

0:11:14 > 0:11:19couple of days. It cost the US economy $2 billion in lost

0:11:19 > 0:11:23productivity. That is not what few wants to see happening?But it is a

0:11:23 > 0:11:27political stalemate, not about the economy, it is pure politics,

0:11:27 > 0:11:30particularly in the Republican party. It's not necessarily

0:11:30 > 0:11:33Republican against Democrat, it is within the Republican Party. There

0:11:33 > 0:11:38was a hit to the US economy, but not really material when he think of the

0:11:38 > 0:11:41size of the economy, and bearing in mind the big tax cuts coming in and

0:11:41 > 0:11:45potentially more infrastructure spending. The US economy doing well,

0:11:45 > 0:11:49this is a bit of a road bump. Explain what it means for the

0:11:49 > 0:11:54day-to-day, what does it mean for people in the US?It cuts back

0:11:54 > 0:11:58nonessential spending. That might be parts being closed, it is not

0:11:58 > 0:12:02defence, not health care.The Statue of Liberty is shut?The New York

0:12:02 > 0:12:06mayor is trying to get it open. The people that were not going to work

0:12:06 > 0:12:10today, in theory not being paid, they have actually been paid

0:12:10 > 0:12:12historically for lost wages. It does not necessarily produce a lasting

0:12:12 > 0:12:19hit to people that have been sent home.I would love to see if the

0:12:19 > 0:12:24people that are not at work have gone to have lunch somewhere, you

0:12:24 > 0:12:28get a weird boost?If you have been through this before, if you expect

0:12:28 > 0:12:38to be paid, you might have a nice day.Win- win! We are expecting this

0:12:38 > 0:12:42German deal to be signed, seemed and delivered. What kind of knock-on

0:12:42 > 0:12:45does this uncertainty?Think it is holding back a lot of the progress

0:12:45 > 0:12:49that people want to make in the European Union. France is pushing

0:12:49 > 0:12:52the agenda to be more integrated, more common European policies in

0:12:52 > 0:12:56Germany. It can't really be involved in those talks. It has obviously had

0:12:56 > 0:13:00an impact on Brexit negotiations as well. Germany coming back to the

0:13:00 > 0:13:03table, with Angela Merkel having firm leadership, that is really

0:13:03 > 0:13:07important. Bear in mind the Italian general election in March. Political

0:13:07 > 0:13:10risk in Europe has fallen off the agenda, but it might come back when

0:13:10 > 0:13:14we get the Italian elections.We will see you later for the papers.

0:13:14 > 0:13:17Sean is go to talk to us about Amazon supermarkets with no

0:13:17 > 0:13:22checkout. Keep your comments coming in. A lot of you getting in touch

0:13:22 > 0:13:25about whether it is good news or robots just doing more stuff in

0:13:25 > 0:13:31day-to-day lives. Jay still to come, all aboard, if you can't afford life

0:13:31 > 0:13:40on the high seas, codesharing a yacht Didi and your prayers? One man

0:13:40 > 0:13:43says it is a way to have the lifestyle without the hefty price

0:13:43 > 0:13:44tag. Stay with us.

0:13:50 > 0:13:53Peugeot's boss Carlos Tavares is to meet with the UK unions

0:13:53 > 0:13:57and government officials, to discuss the future

0:13:57 > 0:13:59of Peugeot's Vauxhall plant Mr Tavares has already warned that

0:13:59 > 0:14:02250 UK jobs could go - on top of the 400 that

0:14:02 > 0:14:05were lost last year - saying production costs in the UK

0:14:05 > 0:14:13are twice as high as in France.

0:14:13 > 0:14:16Theo Leggett is following the story for us.

0:14:16 > 0:14:21This is an interesting one. Clearly, if you are affected by these job

0:14:21 > 0:14:24cuts, it is very serious news. But there is a big economic story when

0:14:24 > 0:14:28it comes to wear is cheaper to produce these cars?Absolutely, this

0:14:28 > 0:14:32is about the big picture. Ellesmere Port currently builds the Vauxhall

0:14:32 > 0:14:40Astra. Sales of the car is declining, it is not as popular as

0:14:40 > 0:14:43sport utility vehicles, and it is getting long in the tooth. That

0:14:43 > 0:14:51said, they have said that production will remain at elms -- elms near the

0:14:51 > 0:14:57top 2021. What happens after that? There is kind of a beauty contest

0:14:57 > 0:15:03going on within the entire PSA group, about where the next

0:15:03 > 0:15:08generation of cars get built. What he has said frequently in the past

0:15:08 > 0:15:12is that he looks at efficiency and profitability. If plants can prove

0:15:12 > 0:15:15they are efficient and profitable, they stand a good chance of getting

0:15:15 > 0:15:19work. If they can't be, then they will not get the work. Now, in the

0:15:19 > 0:15:26past, tells me a -- it has been inefficient compared to other plants

0:15:26 > 0:15:30in Europe. It has an old production line, sales are declining. What

0:15:30 > 0:15:36people there tell me is, with the removal of one shift, the removal of

0:15:36 > 0:15:40several hundred jobs, it is becoming a lot more efficient and that puts

0:15:40 > 0:15:43it in the ballpark so it can compete with other plants across Europe for

0:15:43 > 0:15:47the next generation of work. That is what Len McCluskey, the chairman of

0:15:47 > 0:15:55Unite, is going to be saying to them when they meet in Paris.

0:15:55 > 0:15:59Thank you very much with the details of what's happening with Peugeot and

0:15:59 > 0:16:09Vauxhall in the UK. There is a story online about Ocado possibly having a

0:16:09 > 0:16:15deal with a Canadian firm. I'm just trying to find it. It's going to be

0:16:15 > 0:16:19good news for Ocado because they've been trying to make a deal with a

0:16:19 > 0:16:23company somewhere. Plenty more details on that and check out the

0:16:23 > 0:16:29details on the website.

0:16:33 > 0:16:38Our top story, the euro has risen after Germany moved closer to

0:16:38 > 0:16:42forming a new government. All of this coming for months after an

0:16:42 > 0:16:46election in the country that delivered no clear winner. Talks

0:16:46 > 0:16:49will continue later to try and form

0:16:49 > 0:16:50will continue later to try and form a coalition. A quick look at the

0:16:50 > 0:16:54markets.

0:17:04 > 0:17:08An interesting story, one that markets will be watching closely.

0:17:08 > 0:17:11Britain's economy should be prepared for a more optimistic year ahead.

0:17:11 > 0:17:16All of that coming from an interview with the former Treasury Minister

0:17:16 > 0:17:18Lord Jim O'Neill.

0:17:18 > 0:17:21He supported Britain remaining inside the European Union and has

0:17:21 > 0:17:23been speaking to our economics editor Kamal Ahmed.

0:17:23 > 0:17:29In principle I share the views of many that Brexit is like a really

0:17:29 > 0:17:32weird things with the UK to impose on itself from an economic

0:17:32 > 0:17:37perspective. But I add at the same time, I have felt for a good couple

0:17:37 > 0:17:42of years, as important as Brexit is, it isn't the most important thing

0:17:42 > 0:17:46facing Britain's future. Things like regional inequalities and the

0:17:46 > 0:17:50underlying productivity problem are much bigger issues.Do you think now

0:17:50 > 0:17:54with this possibility of productivity being better, British

0:17:54 > 0:17:59economy is going to do far better than you expected a year and a half

0:17:59 > 0:18:04ago?I certainly wouldn't have thought the UK economy would be as

0:18:04 > 0:18:08robust as it currently seems. But, that is because it looks to me like

0:18:08 > 0:18:14some parts of the country led by the Northwest are actually doing way

0:18:14 > 0:18:19better than people seem to realise or appreciate, as well as this

0:18:19 > 0:18:24crucial fact the rest of the world is doing way better than many people

0:18:24 > 0:18:31would have thought a year ago. It makes it easier for the UK.Lord

0:18:31 > 0:18:35O'Neill speaking about those brighter than expected forecasts for

0:18:35 > 0:18:38the UK economy. Markets will buy just those and will have the details

0:18:38 > 0:18:44a little later. -- markets will buy

0:18:44 > 0:18:47Now, you might think owning a yacht is the reserve

0:18:47 > 0:18:48of the rich and famous.

0:18:48 > 0:18:49And you're probably right.

0:18:49 > 0:18:52The market for boats and yachts is soaring, and it's good news

0:18:52 > 0:18:53for British exports.

0:18:53 > 0:18:56The UK industry grew by 3.4% in the last financial year -

0:18:56 > 0:18:58that's the best result since the financial crisis And it's

0:18:58 > 0:19:01largely because of the fall in the value of the pound

0:19:01 > 0:19:03after Brexit - it makes British made goods cheaper overseas,

0:19:03 > 0:19:05and means foreign sales rose by 4.7%.

0:19:05 > 0:19:08But what if you can't afford to buy an entire boat?

0:19:08 > 0:19:10Well, maybe you could own part of one.

0:19:10 > 0:19:12One company - Flexisail - buys boats and allows between seven

0:19:12 > 0:19:17and eight customers to buy a share of it for a fraction of the price.

0:19:17 > 0:19:19Boss Richard Pierrepont has been speaking with Kim Gittleson

0:19:19 > 0:19:30and she asked him how he got the idea for Flexisail.

0:19:30 > 0:19:36Flexisail started as an American concept back in 2004. It really came

0:19:36 > 0:19:40with the advent of the internet becoming available for people to be

0:19:40 > 0:19:45able to book online and we saw the concept and brought it over to the

0:19:45 > 0:19:51UK back in 2004. 2005 was our first season and here we are 14 years

0:19:51 > 0:19:59later, having built the business and developed it to quite a big size

0:19:59 > 0:20:04with training and social programme integrated part of what we do.How

0:20:04 > 0:20:08has business been? We've heard a lot about great in the UK in the yacht

0:20:08 > 0:20:12industry, is that something you've seen?Our business is different from

0:20:12 > 0:20:16charter in that what we are doing is giving people the ownership

0:20:16 > 0:20:20experience without buying. Of course what that means is they are getting

0:20:20 > 0:20:25the advantages of owning their own boat, having use of it throughout

0:20:25 > 0:20:28the year, having a high quality boat and being able to treat it as their

0:20:28 > 0:20:32own. We are very much an expanding part of the market because to go out

0:20:32 > 0:20:37and buy your own boat and have it sitting there for 300 days a year

0:20:37 > 0:20:42not being used is a very expensive and exclusive thing to do. The

0:20:42 > 0:20:47reality is it's better to have access to a boat that someone else

0:20:47 > 0:20:51is looking after. The time you have available for sailing you can

0:20:51 > 0:20:55actually spend it sailing and not maintaining it and getting your

0:20:55 > 0:21:01fingers frozen off in the winter doing maintenance.Who are your

0:21:01 > 0:21:05competitors?We don't really have any. There are many companies out

0:21:05 > 0:21:10there that have one form or another of charter, where basically you have

0:21:10 > 0:21:15a fleet of boats and anybody can roll up and effectively charter that

0:21:15 > 0:21:21boat for one day, a week or a fortnight. To ask, the problem with

0:21:21 > 0:21:26that is that you're getting a very wide range of people using a boat.

0:21:26 > 0:21:31Some are competent, some are highly incompetent. Of course when you have

0:21:31 > 0:21:35multiple uses of anything it's a bit like an office Paul Carr, nobody

0:21:35 > 0:21:39wants to take responsibility for it and the rubbish gets left behind and

0:21:39 > 0:21:46everything else -- and office pool car. We've tried to take a boat and

0:21:46 > 0:21:50spec it to a very high standard that an owner would ideally like, and

0:21:50 > 0:21:54then having a very small number of people having exclusive use of that

0:21:54 > 0:22:00yacht.Has Brexit impacted your business so far and are you

0:22:00 > 0:22:05optimistic about the future?Brexit is always in the back of people's

0:22:05 > 0:22:11minds. We tend to buy French bows, so they are always bought in euros.

0:22:11 > 0:22:16Generally speaking I think we are an expanding market and there is a

0:22:16 > 0:22:20realisation that this is a more cost-effective and sensible weight

0:22:20 > 0:22:23to sail.The rise of the Sharon economy has been one of the bigger

0:22:23 > 0:22:29stories over the past five years, -- sharing economy. People more

0:22:29 > 0:22:36comfortable with the idea of sharing a boat?I think it started with

0:22:36 > 0:22:40aircraft went if a company wanted a use of a private aircraft, they

0:22:40 > 0:22:46wouldn't buy one, they would rent a certain amount of time to have use

0:22:46 > 0:22:51of it. I think that has percolated down. There have been variations of

0:22:51 > 0:22:56sharing going on for a long time but I think we've modernised the concept

0:22:56 > 0:23:01and made it more accessible and easier to come into and out of. Our

0:23:01 > 0:23:05members have nothing to purchase and nothing to sell so after a year or

0:23:05 > 0:23:10two years, they can tick that box and say we've done that, let's move

0:23:10 > 0:23:14onto something else we are interested in. Or as many do,

0:23:14 > 0:23:17they've got the bug and they are off to buy their own boat and sail over

0:23:17 > 0:23:32the horizon.Do you fancy one? Shall we share one? LAUGHTER What other

0:23:32 > 0:23:46business stories? We've got the story about Amazon opening a

0:23:46 > 0:23:52supermarket without any checkouts. This is about Amazon Go. You go into

0:23:52 > 0:23:57the store, log in with your smartphone and you can just walk out

0:23:57 > 0:24:02of the store having charged your credit card account.I love the idea

0:24:02 > 0:24:06of this. I sent you my quite like this. There are a real mix of use.

0:24:06 > 0:24:11One viewer says no issues, if it works and gets rid of cues. Someone

0:24:11 > 0:24:18raises the point that this means you aren't paying someone minimum wage

0:24:18 > 0:24:23to work on the till. This is about data.This is absolutely about data.

0:24:23 > 0:24:29This is a test for a year without employees. Seeing what people do in

0:24:29 > 0:24:35the stores, what they buy. You've got to bear in mind this is driven

0:24:35 > 0:24:37by artificial intelligence and predicting what people are going to

0:24:37 > 0:24:41do. If Amazon can predict, they can sell that information to other

0:24:41 > 0:24:45providers, to the suppliers and also make their stores more efficient.Up

0:24:45 > 0:24:49until now they've only been able to get that data from the website. This

0:24:49 > 0:24:53is taking what they've learned from the website and putting it into a

0:24:53 > 0:25:00physical store.Absolutely. If you have an Amazon customer with Amazon

0:25:00 > 0:25:04Prime, they can use that information in the stores. In some way it's

0:25:04 > 0:25:07quite scary from a security point of view but actually this is about

0:25:07 > 0:25:11Amazon being predicted in how it uses its data. I think you'll start

0:25:11 > 0:25:15to see the these tests in giant supermarkets, this will happen quite

0:25:15 > 0:25:21a lot.One viewer says if all companies replace workers with

0:25:21 > 0:25:26robots, no one will have any money to buy anything in their shops. Very

0:25:26 > 0:25:30good point. Another story, new cars are safer than ever because of

0:25:30 > 0:25:36driver assistance systems. Is this all part of improving safety or

0:25:36 > 0:25:40moving towards the inevitable which will be driverless cars?There's

0:25:40 > 0:25:44already a lot of safety systems and cars. Predicting when you are about

0:25:44 > 0:25:48to have a collision and hitting the brakes. These are quite simple but

0:25:48 > 0:25:52moving on to autonomous cars, the level of sensors will predict

0:25:52 > 0:26:02accidents much more.It's amazing. Thank you.