:00:00. > :00:09.This is Business Live from BBC News with Ben Thompson and Alice Baxter.
:00:10. > :00:13."The lady's not for turning" - famous words from Margaret Thatcher
:00:14. > :00:16.but could they also apply to Britain's new leader Theresa May?
:00:17. > :00:18.With Brexit negotiations round the corner, is she the right
:00:19. > :00:40.Live from London, that's our top story on Tuesday 12th July.
:00:41. > :00:44.Theresa May is set to become the next Prime Minister
:00:45. > :00:46.of the United Kingdom, potentially cutting short months
:00:47. > :00:54.We'll take a look at what's next for Britain, following the country's
:00:55. > :01:02.An international court is due to issue its verdict
:01:03. > :01:06.What does this mean for the $5.3-trillion worth of trade
:01:07. > :01:10.to flow through these contested waters?
:01:11. > :01:16.We will find out. And this is what the markets look like, the first
:01:17. > :01:17.half an hour of trade under way in Europe. We will have the details for
:01:18. > :01:19.you. And we'll be talking to successful
:01:20. > :01:22.entrepreneur William Kendall about his latest venture,
:01:23. > :01:24.selling chocolate-maker Green Blacks to Cadbury,
:01:25. > :01:26.and what needs to be fixed Today we want to know how
:01:27. > :01:34.you would improve your office space It's all the rage among
:01:35. > :01:41.the big tech giants So let us know your office
:01:42. > :02:03.improvement thoughts. Seriously, people have bouncy
:02:04. > :02:08.castles in their office?! If you have one, let us know!
:02:09. > :02:11.It's been an eventful couple of weeks in UK politics
:02:12. > :02:13.but Theresa May has emerged as the next Prime Minister
:02:14. > :02:17.Yesterday, Andrea Leadsom, her main rival for the role,
:02:18. > :02:21.pulled out of the race to become leader of the Conservative Party.
:02:22. > :02:24.So what could May's leadership mean for the economy?
:02:25. > :02:26.Mrs May says she'll put worker representatives on executive boards
:02:27. > :02:29.in order to address the "unhealthy and growing gap" between
:02:30. > :02:35.She's also pledged to increase the power given to shareholders
:02:36. > :02:54.This comes after investors in several companies attempted
:02:55. > :02:58.Ultimately, these were shareholder protests that went ignored
:02:59. > :03:04.With me is Jessica Ground, of UK equities fund manager Schroders.
:03:05. > :03:09.We have the second woman to Dubai Number Ten one quarter of the
:03:10. > :03:13.century, an exciting time for the UK. She has got a big task in front
:03:14. > :03:19.of her, who will make up the Cabinet? The first priority, who
:03:20. > :03:23.will be the Chancellor? She has got about 100 posts to fill and this is
:03:24. > :03:27.her chance to return papers and set her agenda out. The interesting
:03:28. > :03:32.thing about yesterday is she was quite critical of the Treasury and,
:03:33. > :03:38.by default, George Osborne. Saying he had not done enough to solve
:03:39. > :03:42.productivity, which is such a key games for so many people and the
:03:43. > :03:46.growth of the country, and also that he perhaps had not done enough on
:03:47. > :03:50.infrastructure investing, so, following that, I would be quite
:03:51. > :03:55.surprised if George stayed in the hot seat in the Treasury, and the
:03:56. > :04:01.speculation going that Philip Hammond would prefer that. I think
:04:02. > :04:05.the question is, does he get the other big job he would like, which
:04:06. > :04:10.is in the Foreign Office with a focus on trade? How likely is it
:04:11. > :04:15.that she will include some of those prominent Brexiteers around the head
:04:16. > :04:22.table, Mr Johnson and Mr Gove particularly? I think Mr Gove
:04:23. > :04:29.probably more likely than Mr Johnson, who is probably seen as a
:04:30. > :04:34.live wire. She was a Remain campaigner and she will want to be
:04:35. > :04:38.pretty clear that, she has said that Brexit what happened, and so she is
:04:39. > :04:42.going to want to give Brexit good weight in the Cabinet, and I think
:04:43. > :04:50.people like Liam Fox, who supported her in this, they should see good
:04:51. > :04:53.position is coming to them. In terms of her economic strategy, she was
:04:54. > :04:59.pretty critical of some of Mr Osborne's strategies in their past,
:05:00. > :05:04.she has criticised his focus on two of our great regional cities, if you
:05:05. > :05:08.like, a suggestion she might want to develop more than just London and
:05:09. > :05:14.Manchester is what many people in third from those comments. She also
:05:15. > :05:17.pledged to tackle predatory takeover power was on the part of some
:05:18. > :05:23.corporations out there and also wanting to close the gap between
:05:24. > :05:29.executive pay and work paid. Is the city were read by these comments? I
:05:30. > :05:34.think much of what she has said, the city has been on a introductory
:05:35. > :05:41.already. If we just look at the issue of pay, we have seen big votes
:05:42. > :05:46.against CEO pay, certainly in the US where there is more disclosure on
:05:47. > :05:51.CEO pay relative to average workers' pay. So I think that momentum is
:05:52. > :06:01.already underway. I think the protection for industries, that has
:06:02. > :06:07.sort of been on the table since Kraft taking Deborah Cadbury, the
:06:08. > :06:10.feeling that promises given were not delivered, so I don't think those
:06:11. > :06:15.are surprising. I think there has been a feeling for some time that
:06:16. > :06:21.this issue of inequality needs to be looked at and, believe it or not,
:06:22. > :06:27.even in the city, for we, as investors, we want sustainable
:06:28. > :06:31.business models, companies treating employees well, we have been
:06:32. > :06:38.campaigning for the living wage and encouraging companies to adopt that.
:06:39. > :06:43.I think it is right that we look at, how do all stakeholders, the
:06:44. > :06:48.environment, customers, workers, benefit, and it cannot just be CEOs'
:06:49. > :06:52.pay and nothing for the rest of the country. She was on the Remain camp
:06:53. > :06:56.but reiterated again, Brexit is Brexit and let's crack on with it.
:06:57. > :07:00.Good to talk to you, Jessica. A big task ahead for Theresa May.
:07:01. > :07:01.Absolutely, and we will keep you across all of the developments
:07:02. > :07:04.there. US officials didn't prosecute HSBC
:07:05. > :07:08.for money laundering in 2012 because they were worried it
:07:09. > :07:10.could cause a "global That's the verdict of
:07:11. > :07:13.a report from US Congress. Four years ago, HSBC was accused
:07:14. > :07:16.of breaching US sanctions and allowing drug cartels to use
:07:17. > :07:20.its branches to launder money. The bank paid a $1.92 billion
:07:21. > :07:23.settlement but did not Ikea has announced that it's
:07:24. > :07:41.recalling 1.7 million chests of drawers in China over
:07:42. > :07:43.concerns they could pose a danger to children if not
:07:44. > :07:46.properly fixed to walls. The recall covers items in the Malm
:07:47. > :07:48.range that were manufactured The announcement's after the Swedish
:07:49. > :07:53.furniture company recalled 36 million dressers in North
:07:54. > :07:58.America. Coffee giant Starbucks is to raise
:07:59. > :08:01.wages for workers at its stores It comes after the company
:08:02. > :08:07.was criticised for cutting staff hours and raising prices
:08:08. > :08:10.to meet profit targets. In a letter to employees,
:08:11. > :08:13.Starbucks' boss Howard Schultz said the company was looking to strike
:08:14. > :08:26.a balance between profit Let's take you quickly to the
:08:27. > :08:31.Business Live page. We talked yesterday about the Farnborough
:08:32. > :08:37.airshow, which kicked off with a big deal. A Boeing ?3 billion deal
:08:38. > :08:41.yesterday, hard to top, as the live page points out. Our correspondent
:08:42. > :08:44.is at the airshow and says it is not raining yet, fingers crossed the
:08:45. > :08:51.weather stays good because it was particularly terrible...
:08:52. > :08:56.A torrential downpour! Such a shame. And this from David Jones, one of
:08:57. > :08:59.our regular guests, we have talked about the slumping value of the
:09:00. > :09:02.pound so much recently in the wake of the Brexit boat but things are
:09:03. > :09:05.tipping up a little bit, looking slightly better, and we will talk
:09:06. > :09:10.about that more in the markets later.
:09:11. > :09:12.Let's head to Asia, because after more than three
:09:13. > :09:18.years and many hearings, a ruling is expected in The Hague
:09:19. > :09:21.later on the hugely contentious issue of China's claims over
:09:22. > :09:24.The Philippines brought the case to court in 2013,
:09:25. > :09:26.and disputes China's territorial claims for about 90%
:09:27. > :09:31.Well, it's thought $5.3 trillion worth of trade passes
:09:32. > :09:37.through the disputed waters every year.
:09:38. > :09:42.So it's vital for China, but also for energy.
:09:43. > :09:45.The South China Sea is also thought to contain billions of barrels
:09:46. > :09:51.of crude oil and up to 900 trillion cubic feet of natural gas.
:09:52. > :09:53.And China has already invested $20 billion in finding out
:09:54. > :10:00.We can speak to Eufracia Taylor, Asia analyst at risk
:10:01. > :10:05.consultancy Verisk Maplecroft, in Singapore for us.
:10:06. > :10:11.Nice to see you. Just explain, we have tried to touch on the
:10:12. > :10:15.significance of the South China Sea, but give us your take on what is at
:10:16. > :10:20.stake and why it is so vitally important, and why we will be
:10:21. > :10:26.looking at the verdict from the Hague today? It is important
:10:27. > :10:32.particularly for merchandise trade between the regions, and really
:10:33. > :10:36.between Asia and the rest of the world. The South China Sea act as a
:10:37. > :10:42.gateway for Asian manufacturers, consumers, to getting products out
:10:43. > :10:45.and bringing products in, and, as you mentioned, probably one of the
:10:46. > :10:50.most contentious issues around the territorial dispute is in terms of
:10:51. > :10:53.energy. Huge amounts of crude oil and liquefied natural gas is
:10:54. > :10:58.channelled through the South China Sea each year and a huge proportion
:10:59. > :11:02.goes to China, and it is one of the key reasons that it is so eager to
:11:03. > :11:07.ensure it has control over those waters. It is also one of the
:11:08. > :11:12.reasons why Japan in particular, despite sitting on the shelves of
:11:13. > :11:16.the South China Sea, is also watching the issue so closely as it
:11:17. > :11:20.depends significantly on the South China Sea to bring through its own
:11:21. > :11:25.liquefied natural gas supplies and power its industry. We are seeing,
:11:26. > :11:31.as imagined, in terms of internal trade but also energy security, it
:11:32. > :11:35.is a huge issue. About 60% of the $5 trillion of trade that passes
:11:36. > :11:39.through the South China Sea ends up in China, but they have said that
:11:40. > :11:44.they are ignoring the outcome of today's's ruling, whatever it will
:11:45. > :11:49.be, in the Hague. What do you think the ruling will be, and what sort of
:11:50. > :11:53.impact can it have, given what China has set? At this moment it is
:11:54. > :11:58.incredibly difficult to determine what the ruling will be, primarily
:11:59. > :12:01.because there are 15 claims specifically that the court in the
:12:02. > :12:07.Hague will be ruling on, and the court has also reserved its direct
:12:08. > :12:15.consideration of some of the most contentious claims, such as the
:12:16. > :12:20.status of China's historical claims. One thing we can say for sure is
:12:21. > :12:27.that even though China, as you mentioned, will reject the award, it
:12:28. > :12:32.cannot ignore it, because regardless of whether the court rules against
:12:33. > :12:37.China's claims feathers in Beijing have been ruffled and it is now at
:12:38. > :12:43.the point where, even if the court at Staines from ruling on those most
:12:44. > :12:46.contentious measures, people have scrutinised China's claims deeply
:12:47. > :12:50.and there has been a rallying of support around the smaller players
:12:51. > :12:54.in the dispute, which, if nothing else, has caused some embarrassment
:12:55. > :13:01.for China. We have to leave there, but thank you.
:13:02. > :13:06.Let's have a quick look at the numbers for you. The arrows tell the
:13:07. > :13:10.story, a bitter Bob Riley, particularly in Asia. The McKay
:13:11. > :13:18.doing well on the back of that Nintendo game, Pokemon go, winning
:13:19. > :13:23.legions fans around the world will -- around the world.
:13:24. > :13:25.Later this morning Bank of England governor Mark Carney appears
:13:26. > :13:27.in front of MPs along with other members of
:13:28. > :13:35.the Financial Stability Committee to answer questions
:13:36. > :13:43.US stock-market investors sail into earning season this week,
:13:44. > :13:45.wind at their backs, provided by the all-time
:13:46. > :13:48.high on the S 500, but conditions may already be
:13:49. > :13:50.worsening after the record close on Monday, metals giant Alcoa put
:13:51. > :13:53.out the first major earnings release, and it was
:13:54. > :13:57.They made $135 million in the second quarter, a decline on last year,
:13:58. > :14:01.driven by falling aluminium prices and cutbacks.
:14:02. > :14:08.Later in the week, JP Morgan and Citigroup,
:14:09. > :14:14.along with others, will also release their latest accounts.
:14:15. > :14:20.Investors will hope this view of the health of corporate America
:14:21. > :14:22.shows more plain sailing ahead, though given the events
:14:23. > :14:24.in the global economy, they would do well to prepare
:14:25. > :14:30.Joining us is Cornelia Meyer, chief executive of Australian mining
:14:31. > :14:47.Good to see you this morning. Actually, I am Chief of resources at
:14:48. > :14:51.a business consultancy. Apologies. Let's talk about the global rally
:14:52. > :14:56.that we are seeing at the moment. What would you say are the main
:14:57. > :15:01.factors behind this, helping stocks rebound after the slumps we saw
:15:02. > :15:07.after the Brexit vote? The first thing that we saw was, when we had
:15:08. > :15:11.the jobs report that was better than anticipated last Friday, and on the
:15:12. > :15:15.back of that it rallied, and then it rallied even further, everybody was
:15:16. > :15:22.very unhappy with the uncertainty that we had in the UK, no
:15:23. > :15:26.leadership, the opposition and Government in disarray, and now
:15:27. > :15:30.finally we have leadership, a way forward, somebody who has stepped
:15:31. > :15:38.up, a decisive lead in the says, OK, I will create an action plan, we
:15:39. > :15:42.will move forward. I think people want certainty, people want to see
:15:43. > :15:46.everyone move forward. I don't think business likes the idea of Brexit
:15:47. > :15:50.but at least if you have Brexit, it is a fact now, let's get on, let's
:15:51. > :15:54.have a road map and start negotiations.
:15:55. > :16:01.Somebody who has been studying the ship is Mark Carney, he has had to
:16:02. > :16:04.step in the breach and reassure the market. He will give evidence to MPs
:16:05. > :16:10.ahead of a cut in interest rates on Thursday. How crucial with his
:16:11. > :16:15.evidence be? Is very crucial in terms of reassuring the markets, but
:16:16. > :16:24.they are reassured, because he was the steady pair of hands when nobody
:16:25. > :16:32.else was there. They really -- a bit like Rudy Giuliani after 9/11. The
:16:33. > :16:35.markets are addicted to low interest rates and constitute easing. If he
:16:36. > :16:39.says interest rates go down, the markets will love it. I think at
:16:40. > :16:44.some stage we will have to get up again with interest rates, because
:16:45. > :16:49.when the next crisis comes, we will have no leaders left. We will watch
:16:50. > :16:51.closely. You will be back to talk us through the papers later.
:16:52. > :16:54.The sweet taste of success, but what's the secret
:16:55. > :17:04.We'll meet the man behind chocolate brand Green Blacks.
:17:05. > :17:06.He will tell as his secret to success.
:17:07. > :17:08.You're with Business Live from BBC News.
:17:09. > :17:11.It's been more than two weeks since the UK went to the polls
:17:12. > :17:16.There are still plenty of unanswered questions about the impact
:17:17. > :17:27.UK farming has strong links with the EU, how could that change?
:17:28. > :17:32.Victoria Fritz is at the Great Yorkshire Show finding out.
:17:33. > :17:35.Welcome to the Great Yorkshire Show, we are expecting 130,000 people
:17:36. > :17:38.to come through these doors in the next three days,
:17:39. > :17:43.there are 12,000 animals of all different varieties competing
:17:44. > :17:49.This is a showcase of the best of British, but it is also a place
:17:50. > :17:54.for farmers to discuss the next big issue for agriculture.
:17:55. > :17:58.That is the vote from Britain to leave the EU, because the EU
:17:59. > :18:01.is the biggest market for British agricultural exports,
:18:02. > :18:09.about 63% of British exports went to the EU last year.
:18:10. > :18:12.The NFU has described the vote as a political car crash,
:18:13. > :18:18.For me, I believe there could be some good opportunities
:18:19. > :18:23.The direct support received from the EU on many of our
:18:24. > :18:33.At the end of the day the role for the NFU is to bring people
:18:34. > :18:36.together and get a good result for British agriculture.
:18:37. > :18:40.We have seen a lot of funding go into milk production in terms
:18:41. > :18:42.of grants to support a lot of the infrastructure
:18:43. > :18:46.and technology, are you not concerned that that disappears
:18:47. > :18:53.At the end of the day the Government is going to have to realise that
:18:54. > :18:56.food security is a bigger issue than it has ever been before,
:18:57. > :19:01.At the end of the day, we have got to support ourselves.
:19:02. > :19:09.We have a huge imbalance, so if we cannot turn that around,...
:19:10. > :19:15.We need help from the Government as well.
:19:16. > :19:18.About half of all farmers' incomes come from EU subsidies,
:19:19. > :19:23.so there is a lot of uncertainty about the income in the future.
:19:24. > :19:26.But a lot of opportunity and some optimism as well that the future
:19:27. > :19:43.A quick story from the BBC business page, Asos confident for the 2016
:19:44. > :19:45.sales. After a frantic couple weeks in UK
:19:46. > :19:51.politics, Theresa May is to become the next Prime Minster
:19:52. > :19:53.of the United Kingdom. She's vowed to reduce
:19:54. > :20:08.what she describes as "the growing More details on that as it develops,
:20:09. > :20:10.and what happens over the next week will be pretty crucial.
:20:11. > :20:14.In the wake of the financial crisis more and more of us have chosen
:20:15. > :20:16.to start our own business, rather than work for someone else.
:20:17. > :20:19.But what's the secret to success when starting your own firm?
:20:20. > :20:22.Well, our next guest knows a thing or two about doing just that.
:20:23. > :20:25.William Kendall's first business venture was in 1990
:20:26. > :20:28.with the New Covent Garden Soup Company.
:20:29. > :20:34.He turned a company with a $2.6 million turnover into one
:20:35. > :20:39.with nearly $260 million in less than ten years.
:20:40. > :20:42.Next came the chocolate firm Green Blacks.
:20:43. > :20:45.Founded in 1999, he helped grow the business until it
:20:46. > :20:49.attracted the attention of confectionary giant Cadbury's.
:20:50. > :20:56.His latest venture is Cawston Press, an independent soft-drinks company.
:20:57. > :21:00.Last year, it sold five million cans in 12 countries,
:21:01. > :21:13.All the more impressive in a sector that's facing falling sales.
:21:14. > :21:22.You are smiling at those numbers, you are clearly quite pleased,
:21:23. > :21:26.pretty impressive, in such a market. It is hard to know where to start,
:21:27. > :21:32.but let's begin at the beginning, what got you into doing this? You
:21:33. > :21:38.a business, turn it around and sell a business, turn it around and sell
:21:39. > :21:42.it off. I grew up on a farm, making things happen very quickly is what
:21:43. > :21:46.appeals, getting involved in small businesses, you can make a
:21:47. > :21:51.difference. I tried working for a big company, it did not work for me,
:21:52. > :21:59.it is too slow. Did you have a specific way that you work? Do you
:22:00. > :22:04.identify things that are short-term and long-term? Or do you have a
:22:05. > :22:10.different strategy? It is about teamwork. It is about finding good
:22:11. > :22:14.people who do the work with you. All I can do is gather people around me.
:22:15. > :22:20.On your own you are lost. Each business has been about having a
:22:21. > :22:24.trends. All of the businesses are in trends. All of the businesses are in
:22:25. > :22:30.areas that have interested me and my team-mates. Then you try and find a
:22:31. > :22:33.business that is small and struggling but is in the right space
:22:34. > :22:40.and then you have got a following wind, the market is moving in your
:22:41. > :22:43.direction, the figures are exciting, but it is hardly surprising that
:22:44. > :22:44.people want to drink soft drinks that contain less sugar and taste
:22:45. > :22:49.delicious. One thing that you have delicious. One thing that you have
:22:50. > :22:55.spoken about that I found interesting is regret overselling
:22:56. > :22:58.Covent Garden soup and green and blacks to early, you called it a
:22:59. > :23:03.British disease, selling something the moment it becomes successful.
:23:04. > :23:06.You going to hang onto your current brand? It was more of a general
:23:07. > :23:12.point, and each is this is different. Covent Garden had a
:23:13. > :23:21.venture capital shareholder, so we were under pressure to sell. Green
:23:22. > :23:26.Blacks, we had less pressure, but we still did. You often define success
:23:27. > :23:34.by how much you sell the business for. Sometimes selling it is the
:23:35. > :23:42.right thing to do for the business and for you, but think of the other
:23:43. > :23:48.options beforehand. When we talk about Cawston Press, as we said in
:23:49. > :23:51.the introduction, the industry is shrinking, because we are trying to
:23:52. > :23:55.get healthier drinks, reducing sugar, so what was the appeal? I was
:23:56. > :23:58.one of those people. You go to a one of those people. You go to a
:23:59. > :24:04.party, there is a delicious white wine being presented, you think, I
:24:05. > :24:10.am driving, or I don't want to drink to night, the alternative is warm
:24:11. > :24:14.elderflower cordial or a glass of water, they might as well give you a
:24:15. > :24:22.badge saying loser, so you drink wine even though you did not intend
:24:23. > :24:23.like me who don't particularly like like me who don't particularly like
:24:24. > :24:27.sugar, don't want to drink all the time, but we don't get the
:24:28. > :24:29.alternatives, so it was obvious to me that there must be more demand
:24:30. > :24:32.out there than was being satisfied out there than was being satisfied
:24:33. > :24:37.majors. When you talk about the big majors. When you talk about the big
:24:38. > :24:44.brands, how difficult is it being a niche brand and going up against the
:24:45. > :24:47.likes of Coca-Cola and Pepsi? It is a covered market, they have the
:24:48. > :24:55.economies of scale and marketing budget, so how difficult is it? It
:24:56. > :24:57.is difficult. In some ways it is easier than the food brands, because
:24:58. > :25:02.we are less dependent on the supermarkets. A lot more drinks sold
:25:03. > :25:04.outside supermarkets, so you have more places to sell, but the
:25:05. > :25:10.brands have got huge budgets and brands have got huge budgets and
:25:11. > :25:14.they tried to close you out. Some places are no go areas, unless you
:25:15. > :25:18.have got a big cheque-book. But there are plenty of places, there
:25:19. > :25:20.are lots of people who want to drinks that are not loaded
:25:21. > :25:25.sugar that taste good, and those are sugar that taste good, and those are
:25:26. > :25:29.the people weighed you can sell to, those are the niche shops and
:25:30. > :25:34.chains. He said one of the things you think you are good at is
:25:35. > :25:38.spotting long term trends, and you think one trend that we can look
:25:39. > :25:44.forward to is insects as food, is that the next big thing? I am
:25:45. > :25:46.involved in another business that is looking at fly farming, not
:25:47. > :25:51.necessarily for humans, but replacing protein. My daughter has
:25:52. > :25:55.done her dissertation on it, she says it is a long-term trend.