25/10/2016 BBC Business Live


25/10/2016

Similar Content

Browse content similar to 25/10/2016. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

This is Business Live from BBC News with Ben Thompson and Sally Bundock.

:00:00.:00:00.

One of the world s biggest airports looks set to get the green light

:00:07.:00:12.

Live from London, that's our top story on Tuesday 25th October.

:00:13.:00:33.

Coming in to land at last, the UK Government's long-awaited

:00:34.:00:36.

decision on airport expansion is set to be announced today,

:00:37.:00:38.

Also in the programme, South Korea's losing streak

:00:39.:00:45.

takes its toll on the economy, Samsung, Hyundai and Hanjin,

:00:46.:00:48.

And what does it take to protect a VIP?

:00:49.:00:59.

We'll meet the former Royal Marine Commando who's security

:01:00.:01:02.

We want to know, can tobacco companies ever kick the habit and

:01:03.:01:26.

can they embrace e-cigarettes? Let us know.

:01:27.:01:36.

The UK Government will announce today whether it would prefer

:01:37.:01:41.

to expand Heathrow or Gatwick airport, with Heathrow

:01:42.:01:46.

widely expected to get the go-ahead for a third runway.

:01:47.:01:51.

Critically, though, the binding MPs' vote the one that counts will not

:01:52.:01:55.

happen for another year or so.Heathrow is already operating

:01:56.:02:03.

at 98% capacity, and last year an Independent Commission backed

:02:04.:02:10.

But the main competition comes from Gatwick Airport; they say

:02:11.:02:18.

Brexit favours their plan for an extra runway,

:02:19.:02:22.

because they can do it cheaper and quicker than their rival.

:02:23.:02:27.

The Airports Commission estimates that expanding Heathrow could add

:02:28.:02:33.

as much as $258 billion to the UK economy, while an extra runway

:02:34.:02:39.

at Gatwick could add up to $155 billion.

:02:40.:02:45.

But the airline industry as a whole is expected to generate revenues

:02:46.:02:50.

of $709 billion dollars this year with hubs like Dubai

:02:51.:02:54.

and Schiphol Airport keen to take a larger share of that market

:02:55.:02:58.

Let's cross over to Rachel Horne who joins us from Heathrow airport.

:02:59.:03:07.

Joining me in the studio is Victoria Moores, European editor

:03:08.:03:11.

It could be a long time before that third runway is a reality? That's

:03:12.:03:27.

right. It's been a long time already. It was back in 2000 that

:03:28.:03:32.

the UK Department for Transport said airport capacity in the UK needed to

:03:33.:03:38.

be addressed. It followed a series of consultations and White Papers,

:03:39.:03:41.

legal challenges and finally in 2012 they set up the independent airport

:03:42.:03:51.

commission to look at the options, an extension, a new second runway at

:03:52.:03:55.

Gatwick or another runway at Heathrow. They backed the new runway

:03:56.:04:00.

at Heathrow, that was in July 2015. The Government have had until today

:04:01.:04:04.

to come up with their preferred option, that is what we are

:04:05.:04:07.

expecting around lunch time. The Government's come out to say which

:04:08.:04:10.

option they prefer. As you say, that is not the end of it. There'll be a

:04:11.:04:15.

further year of consultation, legal challenges before MPs will vote in

:04:16.:04:18.

the House of Commons, even after that it could be a number of more

:04:19.:04:23.

years before any ground is broken on any new construction. The boss of

:04:24.:04:28.

Heathrow and Gatwick have fought hard to win a new runway. Give us a

:04:29.:04:32.

sense of how important it is for their businesses if they were to

:04:33.:04:38.

win? Heathrow is the UK's busiest airport, 70% of long haul flights go

:04:39.:04:42.

out of Heathrow, there's one taking off right now. It transports more

:04:43.:04:47.

freight by value than all of the other UK airports combined. As you

:04:48.:04:51.

mentioned, Heathrow will be more expensive. When we look at the

:04:52.:04:56.

investment that would be needed, from Heathrow it could cost about

:04:57.:05:01.

?20 billion to build the new runway. The one at Gatwick more like ?8.5

:05:02.:05:09.

million. In terms of jobs, 76,000 for Heathrow, Gatwick more like

:05:10.:05:14.

6,500, so more investment but potentially more returns. Also more

:05:15.:05:22.

local people affected. At Heathrow, it's thought more homes cob affected

:05:23.:05:27.

by sound and air pollution, whereas at Gatwick it's a smaller number.

:05:28.:05:30.

Big fights from both airports for this business, saying they both need

:05:31.:05:34.

the expansion. There are rumours that if Gatwick don't get it, they

:05:35.:05:39.

could try and press ahead with their own expansion because the funds

:05:40.:05:41.

would come from the airports themselves. We'll wait the see what

:05:42.:05:44.

announcement comes at lunch time today in the UK.

:05:45.:05:48.

We'll speak to you then, Rachel, thank you very much.

:05:49.:05:53.

That is the view from the ground. Let's assess the wider implications.

:05:54.:05:55.

Joining me in the studio is Victoria Moores, European editor

:05:56.:05:58.

Welcome. I suppose what we should make clear is, this is not the end

:05:59.:06:08.

of the story, even a decision today could face legal appeals, a

:06:09.:06:12.

consultation, and it's by no means a done deal? Absolutely not. It's

:06:13.:06:16.

already been a very long story so far and I think that the difficulty

:06:17.:06:21.

that we have is that we keep seeing decisions. This isn't the first time

:06:22.:06:24.

we have had a decision and ultimately isn't even a final

:06:25.:06:28.

decision today. What we keep seeing is the decision gets taken,

:06:29.:06:32.

reversed, then we go through the whole thing again. I guess is

:06:33.:06:37.

question is, how can we make this a real process. You can see why there

:06:38.:06:42.

is opposition from people with extra noise and pollution and you can see

:06:43.:06:45.

why environmentalists don't like this because there'll be additional

:06:46.:06:49.

pollution. The Government's trying to address the concerns, talking

:06:50.:06:53.

about more fuel efficient cars on the roads. Also BA, one of the

:06:54.:06:58.

biggest carriers at Heathrow, it's also opposed to this, why? I think

:06:59.:07:02.

that the secret of that is in the limited capacity of Heathrow. At the

:07:03.:07:08.

moment, Heathrow is a major hub, it's a very desirable airport.

:07:09.:07:11.

Airlines from all over the world want to fly into Heathrow and BA has

:07:12.:07:15.

a very strong position there that they built up over a number of

:07:16.:07:21.

BMI to make sure they maintain the BMI to make sure they maintain the

:07:22.:07:28.

stronghold at the airport. They are also spreading their bets because

:07:29.:07:32.

parent companies have gone out on to the market, it's brought Iberia, Aer

:07:33.:07:37.

Lingus, for example, so they are hedging their bets but ultimately

:07:38.:07:41.

they want to maintain their position at Heathrow, it's a valuable

:07:42.:07:45.

position to be in. When we talk about the international perspective

:07:46.:07:49.

of this, other airports are rubbing their hands with glee aren't they

:07:50.:07:52.

because more indecision and opposition means they can steal a

:07:53.:07:57.

lead on Heathrow? Precisely. We have seen reports recently over the fact

:07:58.:08:01.

that Schipol sends Heathrow a cake every time the decision is deferred,

:08:02.:08:05.

but the key factor is that expansion of Heathrow and air transport is

:08:06.:08:09.

very, very important to the UK economy. So basically if that

:08:10.:08:13.

expansion doesn't happen in the UK, it will happen elsewhere and when

:08:14.:08:17.

you talk about the environmental issues, the environment is the

:08:18.:08:20.

environment, the environment is a global problem, what will happen is

:08:21.:08:25.

that those emissions that growth, that expansion will happen elsewhere

:08:26.:08:28.

and the UK will not benefit from the economic gains they could have from

:08:29.:08:33.

the expansion of Heathrow or the south-east airports. Always that

:08:34.:08:37.

same theme, not in my backyard, people see the need but don't want

:08:38.:08:41.

it on their doorstep. Thank you very much. Thank you.

:08:42.:08:45.

Canada and the EU say their free trade deal is not dead,

:08:46.:08:49.

even though three Belgian regions blocked its signature.

:08:50.:08:51.

All of Belgium's regions must approve the deal before

:08:52.:08:54.

the government can join other EU countries in approving it.

:08:55.:08:58.

Three French-speaking parts of the country

:08:59.:09:00.

led by Socialists want more time to study the agreement.

:09:01.:09:03.

The European Council President, Donald Tusk, said it was

:09:04.:09:07.

still possible to sign it on Thursday as planned.

:09:08.:09:12.

Social networking site Twitter is planning to cut hundreds of jobs

:09:13.:09:16.

It's reported around 8% of the workforce could go

:09:17.:09:22.

in a shakeup to be announced before it reports third-quarter

:09:23.:09:26.

Twitter has 3,860 employees around the world but faces

:09:27.:09:31.

an uncertain future after failing to find a buyer.

:09:32.:09:36.

It's also making losses of around $400 million a year.

:09:37.:09:41.

The model railway maker Hornby is yet another UK company to be

:09:42.:09:45.

affected by the fall in the British pound.

:09:46.:09:47.

The company has put up prices for the first time

:09:48.:09:49.

Sterling has fallen by 17% against the US dollar

:09:50.:09:54.

following Britain's decision to leave the European Union,

:09:55.:09:57.

this has led to a rise in Hornby's input costs.

:09:58.:10:11.

Growth in the South Korean economy has slowed as companies like Samsung

:10:12.:10:15.

Our Asia Business Correspondent Karishma Vaswani is in Singapore.

:10:16.:10:29.

We have mentioned Hanjin and Samsung but also Hyundai, big industrial

:10:30.:10:35.

action affecting its earnings as well? Absolutely, Sally. Can it get

:10:36.:10:41.

any worse for South Korea, you would wonder. Frankly it would be fair to

:10:42.:10:45.

say that it's been going through a prolonged rough patch for the

:10:46.:10:48.

economy, the massive corporate collapses that you were just talking

:10:49.:10:55.

about, the likes of Hanjin Shipping, the biggest shipping firm, strikes

:10:56.:10:58.

at Hyundai didn't help, the biggest strikes the company's ever seen. To

:10:59.:11:04.

top it all off, the worst ever product recall in the electronics

:11:05.:11:07.

giant Samsung's history. Who can forget the fact that the Galaxy note

:11:08.:11:13.

7 and the case of its exploding batteries, if you will. All of that

:11:14.:11:19.

combined ended up resulting in clocking in in South Korea around

:11:20.:11:25.

2.7%, calling it the gloomiest corner. Good manufacturing news and

:11:26.:11:39.

the US in general. Europe, the early stories all over the world. We have

:11:40.:11:45.

got Anglo-American at 3% on the FTSE, come out with good production

:11:46.:11:49.

numbers. We'll talk through the earning stories in a second but

:11:50.:11:54.

firstly, to what is going to happen in the US.

:11:55.:11:55.

Michelle Fleury has the details about what's ahead

:11:56.:11:57.

Apple reports full year results after the closing bell this Tuesday

:11:58.:12:07.

and with sales of the iPhone in decline, will the new iPhone 7 and 7

:12:08.:12:12.

Plus provide a boost? Investors have been concerned because iPhone sales

:12:13.:12:16.

account for the vast majority of Apple's revenue and they have fallen

:12:17.:12:21.

for the last two straight quarters. Earnings from Procter Gamble

:12:22.:12:25.

should shed light on how consumers are feeling. Investors are concerned

:12:26.:12:30.

after Unilever reported a rare slide in sales. They'll be focussed on

:12:31.:12:33.

what the company has to say about the months to come. Can General

:12:34.:12:38.

Motors continue to benefit from strong car and truck sales here in

:12:39.:12:42.

North America, its most profitable market. Watch out for results from

:12:43.:12:48.

caterpillar, DuPont and 3 M to name just a few.

:12:49.:12:53.

We'll have all the details from New York as we get them. Lots of

:12:54.:12:55.

earnings due this week. Joining us is Nandini Ramakrishnan,

:12:56.:12:57.

Global Market Strategist at JP The DAX had a record session. What

:12:58.:13:11.

is driving it? We know the FTSE is doing well? Talk us through the

:13:12.:13:16.

German story? The German economic data yesterday was stronger than

:13:17.:13:19.

expected. A big turn from earlier in the year from when some of the big

:13:20.:13:24.

German industrials listed in the DAX were worried about Chinese and

:13:25.:13:27.

global slowdown. We are now in a better place than in several months

:13:28.:13:31.

ago, that is why we are seeing the positive earnings surprise and the

:13:32.:13:37.

stock market rising up with it. We have lots going out in Europe.

:13:38.:13:41.

Generally speaking, you get a sense the earnings are better than

:13:42.:13:45.

expected, especially stateside? Yes, definitely better than in the US.

:13:46.:13:51.

The big challenges for the US Dollar and oil prices, they are starting to

:13:52.:13:56.

stabilise. A slightly weaker US Dollar than last year looking good

:13:57.:14:00.

for those companies. Short and sweet, nice to see you, see you

:14:01.:14:03.

later for the papers. For now, thank you.

:14:04.:14:06.

We meet the former royal marine commando who's security company

:14:07.:14:11.

helps keep business leaders and politicians away from harm.

:14:12.:14:14.

You're with Business Live from BBC News.

:14:15.:14:16.

Whitbread, the company behind Premier Inn and Costa Coffee,

:14:17.:14:20.

has released its results for the six months up to 1st September.

:14:21.:14:24.

Andrew Walker is in our Business Newsroom.

:14:25.:14:32.

Andrew bring us up-to-date because Costa, one of the brands we see on

:14:33.:14:37.

the high street, but they are venturing into different things. The

:14:38.:14:41.

thing that caught me was this high-end coffee, away from mass

:14:42.:14:46.

market trying to compete with the fancy coffee shops? Indeed they are.

:14:47.:14:50.

That's a new initiative. For the most part, the results are dominated

:14:51.:14:55.

by their established businesses, the big coffee shops and Premier Inns.

:14:56.:15:01.

The results show 8% increase in revenue compared to last year, up to

:15:02.:15:09.

?1.5 billion. The share price over the last five years you can see

:15:10.:15:14.

strong gains up to the middle of last year. Coming off those highs a

:15:15.:15:19.

bit since then, but overall these are pretty healthy results. If you

:15:20.:15:26.

look at the business, it's dominated by the UK, Premier Inn two thirds of

:15:27.:15:30.

revenue from the UK, for Costa, the figure is getting on for 90% so it's

:15:31.:15:35.

a business exposed to the British market. The Chief Executive has

:15:36.:15:39.

acknowledged there is uncertainty ahead, but it must be said, this is

:15:40.:15:42.

a business that looks like it has potential to gain from the decline

:15:43.:15:48.

in the value of the sterling because basically it makes it cheaper for us

:15:49.:15:51.

Brits to get holidays in the UK and also makes it cheaper for

:15:52.:15:54.

international visitors to come here. It does have significant

:15:55.:16:10.

international business, which in the case of Premier Inn lost money in

:16:11.:16:14.

this period. Made a profit on the Costa side of the business. It was

:16:15.:16:18.

less than the year before but the company is keen to develop the

:16:19.:16:22.

Premier Inn side particularly in Germany and the Middle East having

:16:23.:16:26.

pulled that business out of India and south-east Asia in the last

:16:27.:16:27.

year. Who said white bread? The bottom of

:16:28.:16:48.

the screen! The full details for Heathrow is on

:16:49.:16:52.

the website. We get that announcement at about midday.

:16:53.:16:58.

Our top story: One of the most controversial decisions in British

:16:59.:17:02.

Ministers will choose whether to expand Heathrow

:17:03.:17:07.

or Gatwick and most people think it will be Heathrow.

:17:08.:17:13.

The new runway could be worth $0.25 trillion to the UK economy.

:17:14.:17:20.

That announcement is expected in a few hours.

:17:21.:17:27.

A good day for Europe so farment the FTSE firmly above 7,000 and the DAX

:17:28.:17:31.

gaining on its record close yesterday.

:17:32.:17:41.

What do you think of when we say the word "bodyguard"?

:17:42.:17:44.

Perhaps the Hollywood version - men in suits dodging bullets?

:17:45.:17:46.

In reality the personal security industry covers everything

:17:47.:17:48.

from front line protection to behind the scenes intelligence

:17:49.:17:50.

In fact, in London alone, the industry is said to be worth

:17:51.:17:54.

more than $6 billion with many of the world's

:17:55.:17:56.

billionaires residing in the capital.

:17:57.:17:59.

Another Day is a security company capitalising on this demand.

:18:00.:18:02.

The firm's clients include everyone from celebrities to

:18:03.:18:04.

The issue of personal security caught the world's attention

:18:05.:18:11.

following the multi-million dollar robbery of Kim Kardashian in Paris

:18:12.:18:14.

recently, but do events like this misrepresent what the majority

:18:15.:18:18.

James Glancy is founder and Chief Executive of Another Day.

:18:19.:18:27.

James welcome. Nice to see you. Good morning. We touched on the Hollywood

:18:28.:18:34.

type stuffs. People running around with ear pieces in and with guns. I

:18:35.:18:38.

guess the vast majority of your work is that background security, it is

:18:39.:18:41.

about assessing what's happening around the world and making your

:18:42.:18:44.

clients aware of where is safe to go and where is not safe to go? You

:18:45.:18:49.

have the rise of social media over the last ten years, specifically the

:18:50.:18:52.

last five years means there is so much information out there. People

:18:53.:18:55.

are tweeting and providing information when they are at work

:18:56.:18:59.

about what they're up to, locations they're in and this is a gold mine

:19:00.:19:06.

for foreign intelligence agencies for serious organised crime and

:19:07.:19:08.

terrorist networks. So what that means it allows people to access

:19:09.:19:12.

information to target you directly when you're working or when you're

:19:13.:19:17.

overseas. Your clients are very diverse, aren't they? Talk us

:19:18.:19:20.

through the organisations you work with? We started off working with

:19:21.:19:35.

governments in imman and Qatar. Corporates want more intelligence

:19:36.:19:38.

about the way they analyse their risks. More information about how

:19:39.:19:43.

they can mitigate risk when their people travel overseas or when

:19:44.:19:46.

they're operating in the UK and Europe. You work with a lot of aid

:19:47.:19:50.

agencies as well, don't you? We have worked with aid organisations. It is

:19:51.:19:58.

generally work in frontier environments. West Africa and

:19:59.:20:04.

Ukraine, inhospitable environments and it is difficult to operate

:20:05.:20:08.

safely. We provide travel advice and help deliver aid on the ground. You

:20:09.:20:12.

do a lot of security of shomg centres and corporate premises and

:20:13.:20:15.

things like that. I would have assumed that governments would do,

:20:16.:20:19.

that they have an assessment of the risk against the country and thick

:20:20.:20:24.

advice people on what security precautions they need to take, but

:20:25.:20:27.

that's not necessarily the case as budgets get cut? If you have look at

:20:28.:20:32.

governments they have so much to respond to, trying to prioritise

:20:33.:20:36.

where they protect, they have limited resources. So what we have

:20:37.:20:40.

security market. We don't security market. We don't

:20:41.:20:45.

specifically provide physical protection. We provide the analysis

:20:46.:20:50.

and intelligence to provide mitigation strategies and training

:20:51.:20:53.

for staff should there be a crisis at a premises. Where does that

:20:54.:20:56.

intelligence come from? I imagine there is all sorts of places you can

:20:57.:21:01.

do that research. Give me a flavour of where that comes from? We have

:21:02.:21:06.

tried to lead the way in the market by using Silicon Valley technology,

:21:07.:21:10.

companies that mine information from social media. What we can do is put

:21:11.:21:15.

a lens over a business or a facility and really understand what is going

:21:16.:21:19.

on there. What the threats might be and by using that intelligence

:21:20.:21:23.

picture that helps us train the staff, train the management to

:21:24.:21:26.

understand what information that they're putting out there and

:21:27.:21:32.

therefore, we can provide strategies to reduce risk. Tell us about your

:21:33.:21:36.

story. It is your mystery working in the military that's given you the

:21:37.:21:39.

experience for this business? That's right. Post university I opted for a

:21:40.:21:45.

career in the Royal Marines. At that time, it just so happened, 9/11

:21:46.:21:49.

happened and no one could predict it would be a really busy ten years.

:21:50.:21:53.

So... Most of that time you were in Afghanistan? Yes, I deployed three

:21:54.:21:57.

times to Afghanistan. I was around the Middle East. During the Arab

:21:58.:22:03.

Spring which really opened my eyes to the growing and diverse

:22:04.:22:06.

requirement for security. What was the hardest thing? I suppose the

:22:07.:22:10.

transition from the military to business. I suppose which is harder

:22:11.:22:16.

to operate in? When you're operating in Afghanistan, you're, you've got a

:22:17.:22:20.

mission and you just get on with it. When you leave, you're without that

:22:21.:22:23.

institution and without the people that you've worked with. That's

:22:24.:22:27.

probably the hardest thing is finding out who you are and learning

:22:28.:22:30.

a different language, a business language. So yeah, there is no doubt

:22:31.:22:34.

that actually the transition it it is a taken a good couple of years to

:22:35.:22:37.

sort yourself out. James, it is really nice to talk to you. Thank

:22:38.:22:40.

you for coming in and explaining all of that. Yes, really interesting

:22:41.:22:45.

stuff. James Clancy from Another Day.

:22:46.:22:49.

In a moment we'll take a look through the Business Pages but first

:22:50.:22:52.

here's a quick reminder of how to get in touch with us.

:22:53.:22:54.

The Business Live page is where you can stay ahead with the day's

:22:55.:22:58.

breaking business news. We'll keep you up-to-date with the latest

:22:59.:23:01.

details with insight and analysis from the BBC's team of editors right

:23:02.:23:04.

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

:23:05.:23:13.

the BBC Business Live web page. On Twitter we're at.

:23:14.:23:19.

You can find us on Facebook. Business Live on TV and online

:23:20.:23:21.

whenever you need to know. Joining us again is

:23:22.:23:31.

Nandini Ramakrishnan. Nice to see you again. Let's talk

:23:32.:23:44.

about the story we asked for your views on. Philip Morris, one of the

:23:45.:23:54.

world's biggest ta tobacco firms asking people to give up the habit.

:23:55.:24:04.

Yohan says it would be business suicide. Tell us what they are

:24:05.:24:10.

really up to? They are encourage quitting or to have consumers buy

:24:11.:24:13.

the alternative products. I'm not sure it is suicide. They have got a

:24:14.:24:18.

substitute product going in, but from the global health and health

:24:19.:24:21.

care views that are probably it is better to get people away from the

:24:22.:24:27.

traditional tobacco. I wonder if their message is global, different

:24:28.:24:30.

markets, different countries are at different phases when it comes to

:24:31.:24:34.

the cultural shift from smoking being the norm to smoking being seen

:24:35.:24:37.

as something that's bad for your health? One of the strategies is

:24:38.:24:43.

researching and figuring out what's the best replacement in different

:24:44.:24:49.

gee ographies. A reshuffle at Tata. A new guy in and they will appoint

:24:50.:24:57.

him in four months? This company isn't so public with changes. It

:24:58.:25:00.

signals a strive towards profitability. Something that a lot

:25:01.:25:03.

of Indian companies are looking towards to getting in the more

:25:04.:25:07.

global business environment with a lot more visibility and transparency

:25:08.:25:11.

about their leaders. Tata is huge. It is a name we're familiar with

:25:12.:25:15.

because of Tata Steel, but in India, it is a massive, massive business?

:25:16.:25:19.

Massive business with a lot of sub businesses and a lot of different

:25:20.:25:24.

operational things whether it is in the true industry, things down the

:25:25.:25:27.

chain. So to speak. Lovely to see you. Thank you for talking us

:25:28.:25:31.

through that. A busy day. Lots on the show. We've packed it all in.

:25:32.:25:36.

Remember there is full coverage over that decision at Heath owe. We are

:25:37.:25:41.

expecting that at around midday. As we have been discussing likely to

:25:42.:25:44.

face all sorts of legal challenges and opposition and consultation.

:25:45.:25:47.

Rachel is there for us as you saw. She will be updating us on that

:25:48.:25:53.

story as it breaks. Stay with us on the BBC. Bye for now. See you later.

:25:54.:26:00.

Download Subtitles

SRT

ASS