23/03/2016 BBC Business Live


23/03/2016

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This is Business Live from BBC News with Victoria Fritz

:00:00.:00:00.

Belgium observes three days of mourning

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We look at moves to make Europe's cities safer.

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Live from London, that's our top story on Wednesday 23rd of March.

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Security in the spotlight - as Brussels steps up

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its counter-terrorism efforts we find out what are the technical

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challenges and economic impact of keeping Europe's cities safe.

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Also in the programme: Bangladesh's central bank hires a US lawyer as it

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considers a lawsuit against New York Federal Reserve Bank.

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This comes after hackers stole $81 million from its account.

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And we are 30 minutes into the European trading day -

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it's a mixed picture, but are the travel and tourism

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And how do you translate your passion into a viable business?

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We'll be talking to Thomasina Miers - the founder of

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Have you done it? Today, we want to know if you have turned a burning of

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session into a thriving enterprise. Brussels is coming to terms

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with Tuesday's fatal attacks at the city's airport and a metro

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station These came despite countries

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increasing their counter-terrorism efforts following the Paris

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attacks last year. At the time, Belgium pledged nearly

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$450 million of additional spending - aimed at improving intelligence

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and combating radicalisation. France too, increased funding,

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raising police numbers It says it has stopped 10,000 people

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from entering France Here in the UK the government

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is adding almost 2,000 But are these efforts making

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European cities any safer? With us in the studio

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is Edward Marsh. He's the Director for Aerospace,

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Defence Security I suppose that is the question. All

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of those measures we heard, the extra spending, is it working? Yes,

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unfortunately we saw another bad day in Europe yesterday. You are right

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to highlight the 450 million which has been allocated by the government

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in Brussels. We know there are 300,000 surveillance cameras within

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the country, and indeed, the Prime Minister there has highlighted there

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is a distinct lack of manpower within the police. Funding has been

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seen across the European Union. We have seen a rise in the number of

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staff in the security services. 1.9 billion additional funding has come

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for specialist equipment, probably with an eye on counterterrorism

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operations. In France we have seen an increase in policing so there is

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a lot going on. All of this is welcome and it will help in the

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fight. We are hearing comments from security chiefs that they hear that

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resources are overstretched, despite the increase in funding and boots on

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the ground. Where else should we be spending the money if it is not on

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the measures which are already in place? It is an interesting question

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which will be discussed in the coming days, weeks and months. We

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are seeing increased expenditure on the ground and the intelligence

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services which gives a lot of confidence to the population, what

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we are not seeing potentially is a balance of spending. We need to see

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spending on things like technology. Yesterday we know that the two bombs

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that went off in the airport were technically into public areas which

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we could have walked into ourselves in the morning. So, a solution for

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technology in the airports needs to be found potentially, but above all

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of that, cooperation between intelligence services. That really

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needs to be formulated. That gets to the heart of it. This was not an

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attack or an assault on Brussels, it is an attack on European values.

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They are very much in focus at the moment. We are seeing more

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polarisation across western Europe? Yes, it is a very hard topic at the

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moment and there is a lot going on financially with the migrant crisis

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etc. Security is one area where we can come together pretty easily on.

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We are seeing the intent from security services. We heard rhetoric

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from President Hollande and David Cameron yesterday, to move towards a

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united front on security because this was essentially an attack on

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all of Europe. Edward Marsh, we will leave it there. Thank you.

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Lots more on that story online, of course. In other news...

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Credits Wiese is starting a cost-cutting programme eliminating

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2000 jobs. The bank says it is doing so to get a challenge market

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conditions. -- Credit Suisse. Bangladesh's central bank

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is considering filing a lawsuit against the Federal Reserve Bank

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in New York - after cyber hackers The Bangladesh Bank has hired a US

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lawyer, In February, hackers succeeded

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in instructing the New York Fed to transfer money from

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the Bangladesh Central Bank's account to accounts

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in The Philippines. Australia is to set up a massive

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clean-energy innovation fund to counter its status as one

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of the world's largest The plan announced by

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the Prime Minister Malcolm Turnbull will cost over 760

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million US dollars. The aim is to ultimately reduce

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Australia's carbon emissions to zero, an immense task given

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the country's reliance Let's have a look at some of the

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stories on the tablet. This one comes from William Hill, one of the

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big bookmakers. They have been warning about weaker than expected

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performance. We are seeing this right across the sector. They have

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been hit by changes to taxation in gambling and they are expecting

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weaker profits from online performance as well. We are seeing,

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in the first few minutes of trade, some of the big players like Paddy

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Power, are seeing the shares fall. Just to look through, there are

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loads of stories. I am whizzing through the Business Live page

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myself. There are lots of companies with stories, certainly in the UK.

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Do take a look if you have time. Now let's move on to the markets in

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Asia. So how have financial

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markets in Asia responded Mariko Oi is looking at this

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in our Asia A fairly muted response, we

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understand Kers that is right, Victoria. The markets were all

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trading lower, but not by much, just by 1%. Analysts have told the BBC

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that the attacks in Brussels may have made investors less willing to

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take a risk, but at the same time, unfortunately, they are getting

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somewhat used to these tragic incidents, because they have been

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occurring rather frequently. One stock in the spotlight, especially

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in Australia that I want to mention, a petroleum company which is down.

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The company cited global oversupply which pushed down the prices as a

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reason for the decision. Thank you, good to see you.

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Let's show you some numbers now will stop as she mentioned, a fairly

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flat, muted day in Asia. Let's look at Europe now. Europe is still

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digestive and the events over the last 48 hours. When we looked at

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them a moment ago they all headed higher. There we go, as if by magic!

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It seems as if the markets are shaking off what happened in

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Brussels. Some are arguing that the reaction has not been as significant

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this time. We will be discussing the reasons why later. The oil price is

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slightly lower. Keep an eye on currencies today. The pound could be

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on the move. Boris Johnson will be speaking later. He is heading up the

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out of Europe campaign for the referendum. Victoria.

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He's the CEO of Nutmeg Investment Management.

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Good morning to you. We all thought that travel stocks would be hit

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hardest after what happened in Europe. But you were saying some

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quite interesting things about what is going on with US travel stocks,

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perhaps linked to what is happening in Brussels? It is an instinctive

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reaction that British stocks, including airline and cruise stocks,

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will fall after terrorist attacks, but actually, if you think about

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where those countries send people, quite often it is outside of Europe.

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In the US, a lot of travellers are thinking only about Europe, and they

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think about Europe as a collective. The whole of Europe gets taken off

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the travel menu. So we saw stocks in US companies and airlines fall more

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than we did for the UK and European ones. That is certainly the case in

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December of last year, following what happened in Brussels in

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December. London saw a big falloff in American visitors, with the major

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sites. We have read that Thomas Cook are anticipating that bookings will

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be about 2% down. That is important in terms of profits but it should be

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recoverable. So much depends on what the weather will be like in the

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summer and whether people will want to stay in the country or take

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holidays abroad as well. For the financial markets, it is quite a

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funny week. We are coming up to the Easter break. Many markets will be

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closed for the long weekend. People will not want to have big positions

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the side of the Easter weekend. The interesting thing you mentioned is

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about the currencies. We look at almost every country, you can have a

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story about why the currency will weaken. You can have UK politics,

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the Brexit, Brussels and the action their central bank is taking, but

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almost everyone is on a path to weakening so it evens itself out

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which will probably reduce the volatility as we go into Easter and

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I expect stocks will continue to float based on the momentum of the

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last couple of weeks, probably gently upwards. Nick, we will leave

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it there, I know you're coming back to run through the paper stories

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later. Still to come: How do you turn

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a personal passion into a business? We'll be hearing from the founder

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of the Mexican restaurant group You're with Business

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Live from BBC News. It is crunch-time for one

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of the UK's best-known High Street Its creditors will vote today

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on a deal it desperately needs to cut the rent bill

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for its 164 stores. Ben Thompson is across

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this for us in Salford. Good morning to you. Morning, girls!

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It has been on our high streets 88 years, but it has been loss-making

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for the last eight. This is a crucial day in its history? I don't

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think we can underline quite how important today is for the future of

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DHS. It has been struggling of late. All sorts of profit warnings and

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heavy losses. -- BHS. It was sold for a pound recently to try and sort

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out some of the debts. It is sitting down with the creditors and the

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landlords which owned the property is where the stores operate, to try

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and negotiate a reduction in rent. It says it needs to do that to bring

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down the costs. How did it get into this position? It was one of the

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best loved names on the high street. What went wrong? We have been

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speaking to some people with fond memories of what BHS used to be

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like. It has been around for awhile and

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the quality is good so we use it. It has an image of being for the

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elderly. I know I have grey hair! It has that image. It was a place I

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used to shop as a child. I remember going with my mum. I think it is

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quite dated. They have evidence in there and do clothes to fit my age

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group and my size. It is about the only shop left in London, they are

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all closing. We should point out that they are

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still open despite what you heard there, but they are struggling. The

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voluntary arrangement they came to is interesting. It is a similar

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arrangement with the Budget hotel chain Travelodge. They racked up

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debts, entered into this agreement and things are going well. Their

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figures are up 15% since it had a similar arrangement. It will be

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worth watching what happens today. The meeting starts at around

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10:30am. We will expect news about whether they have reached a deal by

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about one o'clock today. Our top story: Belgium begins three

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days of mourning after Tuesday's Police are hunting for a third man

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in connection with the explosions Plenty more on the website. At the

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top of every news hour we are live in Brussels.

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Building a business around one of your passions is often described

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as a key ingredient in creating a successful company.

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And that's exactly what our next guest has done.

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Thomasina Miers is the co-founder of the Mexican restaurant chain

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She visited Mexico when she was 18 and liked the country and food

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so much she decided to go back to live there.

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After returning to London her love of the culinary arts helped her win

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the reality TV show Master Chef in 2005.

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Buoyed by that success, she opened her first restaurant

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Almost a decade later, there are now 21 outlets

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around the UK with the company eyeing up further expansion.

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Welcome. Thank you. You have got to tell us what did you learn first at

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MasterChef? It must have been a huge moment in your life back in 2005

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that meant you took it on and decided to open a restaurant two

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years later? It was a very good experience in terms of just

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swallowing when you were terrified and you know keep calm and carry on,

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I think, that was the biggest thing I learned. Swallow your fear and

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just keep going. And you won. It worked. Yes. Well, I think, I had so

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much passion and belief in what I was doing and I think as long as you

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are staying true to yourself and your vision, it works in everything,

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but it follows through in food as well and I think that's what Greg

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and John really saw in my cooking, a total belief in what I was doing.

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You are the first restaurant group to be certified as a carbon neutral

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company recently as well. Why does that make financial sense for your

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business? Well, I think from the first very days we set-up Wahaca, we

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were recycling food waste and leading the way in terms of

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everything we were doing in terms of an environmental scale. We always

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believed that you could set-up a successful business and we had an

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environmental aspect as part of it and really that idea that you can

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create a successful business and weave that in was very important to

:17:55.:17:58.

us and I still feel it is possible for all businesses. You have woven

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in all elements. There is that element, but there is what you do

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with your food waste. You have set-up an organisation called Pig?

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The Pig Idea. It is campaigning for a very verse on the illegal feeding

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of food waste to pigs, yes. You have got that, you have done cookery

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books where the money goes to the homeless. You are involved in so

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many different aspects. It is about you and your passions and this

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restaurant, the books and everything else is kind of just enabling that?

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Well, food is really a central theme to everything. It really affects our

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mental health, our physical health, the growth of it, is the biggest

:18:38.:18:41.

consumption of energy and water worldwide. So how we grow it, and

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how we transport it and how we feed it to our children and how we

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educate our children to eat, weaves every aspect of life, politically

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through health. So for me, it is a really fascinating subject and I

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think all chefs and restaurateurs, you know, there is so much weaved

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into it and I think education is very important too. That children

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learn about food and where it comes from, not just in terms of mental

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and physical health, but in terms of how it affects every landscape. OK,

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so you have a fair number, I think it is fair to say of social projects

:19:13.:19:17.

going on as a result of Wahaca. But that is not easy to do. It is not

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easy to follow your passions and promote all these different aspects

:19:23.:19:26.

of your life and under the table we can see you are pregnant, heavily

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pregnant. It is an awful lot for you to be doing at this moment. I mean,

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how are you managing all of this? Well, I think for me food is my

:19:34.:19:39.

passion so I live and breathe it. I cook with my children, I grow

:19:40.:19:44.

vegetables in my back garden. We are building an edible open air

:19:45.:19:47.

classroom in our local primary school which is really promoting

:19:48.:19:52.

green spaces for creative education, very important secretivity in

:19:53.:19:55.

education because Britain and business is linked with creativity

:19:56.:19:59.

and that's very important for the Government to take on and it is my

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passion. People at Wahaca feel that. When they come into our restaurants,

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they feel the buzz, we are into street art and we put on festivals

:20:11.:20:15.

at Wahaca. I'm thinking of Jamie Oliver, he is very similar in his

:20:16.:20:20.

way of trying to change the way we are and how we think about also the

:20:21.:20:26.

impact it has on children. I know, you know him, don't you and you work

:20:27.:20:30.

with him on some projects as well. It seems that chefs are pioneering

:20:31.:20:34.

in this area and even in the UK Budget we have seen an impact of

:20:35.:20:38.

that and school dinners in the UK are different because of what people

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like Jamie Oliver and people like you are doing and how important is

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that, that corporate social responsibility do you think for

:20:45.:20:47.

people who run businesses? Well, I think it is really hugely important

:20:48.:20:50.

because if you have any influence and you can change the world for a

:20:51.:21:00.

better place, it is amazing and I think now adays food has an

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influence. If we can have any influence and the millennias who are

:21:07.:21:10.

eating with their pockets, that's great. Neither you or Jamie Oliver

:21:11.:21:17.

have been able to be immune to the furore that's going on around pay

:21:18.:21:21.

and staff tips. I know you have a fund in which the tips are

:21:22.:21:24.

distributed across all staff. Why do you think that works for you? There

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is not as much incentive for a waiter to give good service if he

:21:31.:21:35.

thinks part of his tips are going to the person washing the dishes?

:21:36.:21:42.

Everyone from the dishwasher to the general manager affects your

:21:43.:21:49.

experience. We have five people who came in as -- five head chefs that

:21:50.:21:54.

came in as dishwashers. All our tips are pooled and go to all our staff,

:21:55.:21:57.

but they are shared out evenly because the waiter is just part of

:21:58.:22:00.

that experience and we feel that very strongly. We are going to have

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to leave it there. We could talk for hours. All the very best with your

:22:05.:22:09.

latest project, baby number three on its way! Thank you very much.

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In a moment, we will look through some of the stories in the business

:22:16.:22:19.

press. Here is a reminder how you can keep in touch with us. The

:22:20.:22:25.

Business Live page is where you can keep ahead with the latest business

:22:26.:22:29.

news. There is insight and analysis from the boob's team of editors

:22:30.:22:32.

around the world. And we want to hear from you too. Get involved on

:22:33.:22:39.

the BBC Business Live web page. On Twitter:

:22:40.:22:45.

And you can find us on Facebook: Business Live on TV and online

:22:46.:22:48.

wherever you need to know. Nick Hungerford, CEO

:22:49.:22:59.

of Nutmeg Investment Management. This is a war of words between OPEC

:23:00.:23:07.

members and other oil producing nations. Who is going to blink first

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and will any agree to a production freeze when they meet in Doha in

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April? Even yesterday we saw the oil price go down because America

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announced that supply had increased over there and they are not a member

:23:21.:23:25.

of OPEC. It really does depend on who, you know, who is going to keep

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the strongest position for longest and we are increasingly aware that

:23:31.:23:34.

Russia is leading the charge for some sort of supply limit. But

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Venezuela is crucial to this because we were talking about this earlier

:23:40.:23:43.

in the green room, they don't have really much leeway at all and Brazil

:23:44.:23:47.

their neighbour in recession, they really need a deal to be done and

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production cuts? They are possibly the country under the most stress

:23:52.:23:55.

because 90% of their revenue comes from oil. They are very close as a

:23:56.:24:00.

country to be going bankrupt and to actually not being able to pay off

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their debts. So if a solution isn't found for countries like Venezuela

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and of course, you can also include Libya and Nigeria in that bracket as

:24:09.:24:11.

well, then things are going to get very tight. This is a story that has

:24:12.:24:16.

to come to a conclusion soon. All right. We will tell you as and

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when it does. The Wall Street Journal talks about McDonald's?

:24:22.:24:31.

McDonald's in India. I hadn't heard of the mac there, but it is having

:24:32.:24:35.

to be changed? We have seen all this trend happen in China with fast-food

:24:36.:24:39.

stores becoming very popular and not becoming popular. The big company

:24:40.:24:47.

Yum Brands who control pizza Hut and KFC, they have had to split their

:24:48.:24:53.

operations in order to make sure that company does the right thing

:24:54.:25:00.

for Chinese culture. In Venezuela, they are talking about cutting

:25:01.:25:06.

chilli in the ice cream! I put Sav rind in ice cream. It was horrible.

:25:07.:25:10.

I was trying to do something cool and it didn't work. Everyone thought

:25:11.:25:16.

McDonald's was a new restaurant and now they are on to new things. It is

:25:17.:25:21.

such a massive market, isn't it, India and we are going to see it

:25:22.:25:27.

open up. We are seeing its growth, GDP growing faster than China, 1.2

:25:28.:25:30.

billion people in the country. So it will be fascinating. One of the

:25:31.:25:35.

problems with Yum Brands there was a scandal about the supply of the

:25:36.:25:37.

chickens, there was a concern about safety of the food which is part of

:25:38.:25:41.

the issues they could never really shake off that reputational damage.

:25:42.:25:46.

Nick, we're going to have to leave it there. We have run out of time.

:25:47.:25:49.

There will be more business news throughout the day on the BBC Live

:25:50.:25:53.

webpage and on World Business Report.

:25:54.:25:55.

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