:00:00. > :00:00.This is Business Live from BBC News with Ben Thompson and Sally Bundock.
:00:07. > :00:12.One of the world s biggest airports looks set to get the green light
:00:13. > :00:33.Live from London, that's our top story on Tuesday 25th October.
:00:34. > :00:36.Coming in to land at last, the UK Government's long-awaited
:00:37. > :00:38.decision on airport expansion is set to be announced today,
:00:39. > :00:45.Also in the programme, South Korea's losing streak
:00:46. > :00:48.takes its toll on the economy, Samsung, Hyundai and Hanjin,
:00:49. > :00:59.And what does it take to protect a VIP?
:01:00. > :01:02.We'll meet the former Royal Marine Commando who's security
:01:03. > :01:26.We want to know, can tobacco companies ever kick the habit and
:01:27. > :01:36.can they embrace e-cigarettes? Let us know.
:01:37. > :01:41.The UK Government will announce today whether it would prefer
:01:42. > :01:46.to expand Heathrow or Gatwick airport, with Heathrow
:01:47. > :01:51.widely expected to get the go-ahead for a third runway.
:01:52. > :01:55.Critically, though, the binding MPs' vote the one that counts will not
:01:56. > :02:03.happen for another year or so.Heathrow is already operating
:02:04. > :02:10.at 98% capacity, and last year an Independent Commission backed
:02:11. > :02:18.But the main competition comes from Gatwick Airport; they say
:02:19. > :02:22.Brexit favours their plan for an extra runway,
:02:23. > :02:27.because they can do it cheaper and quicker than their rival.
:02:28. > :02:33.The Airports Commission estimates that expanding Heathrow could add
:02:34. > :02:39.as much as $258 billion to the UK economy, while an extra runway
:02:40. > :02:45.at Gatwick could add up to $155 billion.
:02:46. > :02:50.But the airline industry as a whole is expected to generate revenues
:02:51. > :02:54.of $709 billion dollars this year with hubs like Dubai
:02:55. > :02:58.and Schiphol Airport keen to take a larger share of that market
:02:59. > :03:07.Let's cross over to Rachel Horne who joins us from Heathrow airport.
:03:08. > :03:11.Joining me in the studio is Victoria Moores, European editor
:03:12. > :03:27.It could be a long time before that third runway is a reality? That's
:03:28. > :03:32.right. It's been a long time already. It was back in 2000 that
:03:33. > :03:38.the UK Department for Transport said airport capacity in the UK needed to
:03:39. > :03:41.be addressed. It followed a series of consultations and White Papers,
:03:42. > :03:51.legal challenges and finally in 2012 they set up the independent airport
:03:52. > :03:55.commission to look at the options, an extension, a new second runway at
:03:56. > :04:00.Gatwick or another runway at Heathrow. They backed the new runway
:04:01. > :04:04.at Heathrow, that was in July 2015. The Government have had until today
:04:05. > :04:07.to come up with their preferred option, that is what we are
:04:08. > :04:10.expecting around lunch time. The Government's come out to say which
:04:11. > :04:15.option they prefer. As you say, that is not the end of it. There'll be a
:04:16. > :04:18.further year of consultation, legal challenges before MPs will vote in
:04:19. > :04:23.the House of Commons, even after that it could be a number of more
:04:24. > :04:28.years before any ground is broken on any new construction. The boss of
:04:29. > :04:32.Heathrow and Gatwick have fought hard to win a new runway. Give us a
:04:33. > :04:38.sense of how important it is for their businesses if they were to
:04:39. > :04:42.win? Heathrow is the UK's busiest airport, 70% of long haul flights go
:04:43. > :04:47.out of Heathrow, there's one taking off right now. It transports more
:04:48. > :04:51.freight by value than all of the other UK airports combined. As you
:04:52. > :04:56.mentioned, Heathrow will be more expensive. When we look at the
:04:57. > :05:01.investment that would be needed, from Heathrow it could cost about
:05:02. > :05:09.?20 billion to build the new runway. The one at Gatwick more like ?8.5
:05:10. > :05:14.million. In terms of jobs, 76,000 for Heathrow, Gatwick more like
:05:15. > :05:22.6,500, so more investment but potentially more returns. Also more
:05:23. > :05:27.local people affected. At Heathrow, it's thought more homes cob affected
:05:28. > :05:30.by sound and air pollution, whereas at Gatwick it's a smaller number.
:05:31. > :05:34.Big fights from both airports for this business, saying they both need
:05:35. > :05:39.the expansion. There are rumours that if Gatwick don't get it, they
:05:40. > :05:41.could try and press ahead with their own expansion because the funds
:05:42. > :05:44.would come from the airports themselves. We'll wait the see what
:05:45. > :05:48.announcement comes at lunch time today in the UK.
:05:49. > :05:53.We'll speak to you then, Rachel, thank you very much.
:05:54. > :05:55.That is the view from the ground. Let's assess the wider implications.
:05:56. > :05:58.Joining me in the studio is Victoria Moores, European editor
:05:59. > :06:08.Welcome. I suppose what we should make clear is, this is not the end
:06:09. > :06:12.of the story, even a decision today could face legal appeals, a
:06:13. > :06:16.consultation, and it's by no means a done deal? Absolutely not. It's
:06:17. > :06:21.already been a very long story so far and I think that the difficulty
:06:22. > :06:24.that we have is that we keep seeing decisions. This isn't the first time
:06:25. > :06:28.we have had a decision and ultimately isn't even a final
:06:29. > :06:32.decision today. What we keep seeing is the decision gets taken,
:06:33. > :06:37.reversed, then we go through the whole thing again. I guess is
:06:38. > :06:42.question is, how can we make this a real process. You can see why there
:06:43. > :06:45.is opposition from people with extra noise and pollution and you can see
:06:46. > :06:49.why environmentalists don't like this because there'll be additional
:06:50. > :06:53.pollution. The Government's trying to address the concerns, talking
:06:54. > :06:58.about more fuel efficient cars on the roads. Also BA, one of the
:06:59. > :07:02.biggest carriers at Heathrow, it's also opposed to this, why? I think
:07:03. > :07:08.that the secret of that is in the limited capacity of Heathrow. At the
:07:09. > :07:11.moment, Heathrow is a major hub, it's a very desirable airport.
:07:12. > :07:15.Airlines from all over the world want to fly into Heathrow and BA has
:07:16. > :07:21.a very strong position there that they built up over a number of
:07:22. > :07:28.BMI to make sure they maintain the BMI to make sure they maintain the
:07:29. > :07:32.stronghold at the airport. They are also spreading their bets because
:07:33. > :07:37.parent companies have gone out on to the market, it's brought Iberia, Aer
:07:38. > :07:41.Lingus, for example, so they are hedging their bets but ultimately
:07:42. > :07:45.they want to maintain their position at Heathrow, it's a valuable
:07:46. > :07:49.position to be in. When we talk about the international perspective
:07:50. > :07:52.of this, other airports are rubbing their hands with glee aren't they
:07:53. > :07:57.because more indecision and opposition means they can steal a
:07:58. > :08:01.lead on Heathrow? Precisely. We have seen reports recently over the fact
:08:02. > :08:05.that Schipol sends Heathrow a cake every time the decision is deferred,
:08:06. > :08:09.but the key factor is that expansion of Heathrow and air transport is
:08:10. > :08:13.very, very important to the UK economy. So basically if that
:08:14. > :08:17.expansion doesn't happen in the UK, it will happen elsewhere and when
:08:18. > :08:20.you talk about the environmental issues, the environment is the
:08:21. > :08:25.environment, the environment is a global problem, what will happen is
:08:26. > :08:28.that those emissions that growth, that expansion will happen elsewhere
:08:29. > :08:33.and the UK will not benefit from the economic gains they could have from
:08:34. > :08:37.the expansion of Heathrow or the south-east airports. Always that
:08:38. > :08:41.same theme, not in my backyard, people see the need but don't want
:08:42. > :08:45.it on their doorstep. Thank you very much. Thank you.
:08:46. > :08:49.Canada and the EU say their free trade deal is not dead,
:08:50. > :08:51.even though three Belgian regions blocked its signature.
:08:52. > :08:54.All of Belgium's regions must approve the deal before
:08:55. > :08:58.the government can join other EU countries in approving it.
:08:59. > :09:00.Three French-speaking parts of the country
:09:01. > :09:03.led by Socialists want more time to study the agreement.
:09:04. > :09:07.The European Council President, Donald Tusk, said it was
:09:08. > :09:12.still possible to sign it on Thursday as planned.
:09:13. > :09:16.Social networking site Twitter is planning to cut hundreds of jobs
:09:17. > :09:22.It's reported around 8% of the workforce could go
:09:23. > :09:26.in a shakeup to be announced before it reports third-quarter
:09:27. > :09:31.Twitter has 3,860 employees around the world but faces
:09:32. > :09:36.an uncertain future after failing to find a buyer.
:09:37. > :09:41.It's also making losses of around $400 million a year.
:09:42. > :09:45.The model railway maker Hornby is yet another UK company to be
:09:46. > :09:47.affected by the fall in the British pound.
:09:48. > :09:49.The company has put up prices for the first time
:09:50. > :09:54.Sterling has fallen by 17% against the US dollar
:09:55. > :09:57.following Britain's decision to leave the European Union,
:09:58. > :10:11.this has led to a rise in Hornby's input costs.
:10:12. > :10:15.Growth in the South Korean economy has slowed as companies like Samsung
:10:16. > :10:29.Our Asia Business Correspondent Karishma Vaswani is in Singapore.
:10:30. > :10:35.We have mentioned Hanjin and Samsung but also Hyundai, big industrial
:10:36. > :10:41.action affecting its earnings as well? Absolutely, Sally. Can it get
:10:42. > :10:45.any worse for South Korea, you would wonder. Frankly it would be fair to
:10:46. > :10:48.say that it's been going through a prolonged rough patch for the
:10:49. > :10:55.economy, the massive corporate collapses that you were just talking
:10:56. > :10:58.about, the likes of Hanjin Shipping, the biggest shipping firm, strikes
:10:59. > :11:04.at Hyundai didn't help, the biggest strikes the company's ever seen. To
:11:05. > :11:07.top it all off, the worst ever product recall in the electronics
:11:08. > :11:13.giant Samsung's history. Who can forget the fact that the Galaxy note
:11:14. > :11:19.7 and the case of its exploding batteries, if you will. All of that
:11:20. > :11:25.combined ended up resulting in clocking in in South Korea around
:11:26. > :11:39.2.7%, calling it the gloomiest corner. Good manufacturing news and
:11:40. > :11:45.the US in general. Europe, the early stories all over the world. We have
:11:46. > :11:49.got Anglo-American at 3% on the FTSE, come out with good production
:11:50. > :11:54.numbers. We'll talk through the earning stories in a second but
:11:55. > :11:55.firstly, to what is going to happen in the US.
:11:56. > :11:57.Michelle Fleury has the details about what's ahead
:11:58. > :12:07.Apple reports full year results after the closing bell this Tuesday
:12:08. > :12:12.and with sales of the iPhone in decline, will the new iPhone 7 and 7
:12:13. > :12:16.Plus provide a boost? Investors have been concerned because iPhone sales
:12:17. > :12:21.account for the vast majority of Apple's revenue and they have fallen
:12:22. > :12:25.for the last two straight quarters. Earnings from Procter Gamble
:12:26. > :12:30.should shed light on how consumers are feeling. Investors are concerned
:12:31. > :12:33.after Unilever reported a rare slide in sales. They'll be focussed on
:12:34. > :12:38.what the company has to say about the months to come. Can General
:12:39. > :12:42.Motors continue to benefit from strong car and truck sales here in
:12:43. > :12:48.North America, its most profitable market. Watch out for results from
:12:49. > :12:53.caterpillar, DuPont and 3 M to name just a few.
:12:54. > :12:55.We'll have all the details from New York as we get them. Lots of
:12:56. > :12:57.earnings due this week. Joining us is Nandini Ramakrishnan,
:12:58. > :13:11.Global Market Strategist at JP The DAX had a record session. What
:13:12. > :13:16.is driving it? We know the FTSE is doing well? Talk us through the
:13:17. > :13:19.German story? The German economic data yesterday was stronger than
:13:20. > :13:24.expected. A big turn from earlier in the year from when some of the big
:13:25. > :13:27.German industrials listed in the DAX were worried about Chinese and
:13:28. > :13:31.global slowdown. We are now in a better place than in several months
:13:32. > :13:37.ago, that is why we are seeing the positive earnings surprise and the
:13:38. > :13:41.stock market rising up with it. We have lots going out in Europe.
:13:42. > :13:45.Generally speaking, you get a sense the earnings are better than
:13:46. > :13:51.expected, especially stateside? Yes, definitely better than in the US.
:13:52. > :13:56.The big challenges for the US Dollar and oil prices, they are starting to
:13:57. > :14:00.stabilise. A slightly weaker US Dollar than last year looking good
:14:01. > :14:03.for those companies. Short and sweet, nice to see you, see you
:14:04. > :14:06.later for the papers. For now, thank you.
:14:07. > :14:11.We meet the former royal marine commando who's security company
:14:12. > :14:14.helps keep business leaders and politicians away from harm.
:14:15. > :14:16.You're with Business Live from BBC News.
:14:17. > :14:20.Whitbread, the company behind Premier Inn and Costa Coffee,
:14:21. > :14:24.has released its results for the six months up to 1st September.
:14:25. > :14:32.Andrew Walker is in our Business Newsroom.
:14:33. > :14:37.Andrew bring us up-to-date because Costa, one of the brands we see on
:14:38. > :14:41.the high street, but they are venturing into different things. The
:14:42. > :14:46.thing that caught me was this high-end coffee, away from mass
:14:47. > :14:50.market trying to compete with the fancy coffee shops? Indeed they are.
:14:51. > :14:55.That's a new initiative. For the most part, the results are dominated
:14:56. > :15:01.by their established businesses, the big coffee shops and Premier Inns.
:15:02. > :15:09.The results show 8% increase in revenue compared to last year, up to
:15:10. > :15:14.?1.5 billion. The share price over the last five years you can see
:15:15. > :15:19.strong gains up to the middle of last year. Coming off those highs a
:15:20. > :15:26.bit since then, but overall these are pretty healthy results. If you
:15:27. > :15:30.look at the business, it's dominated by the UK, Premier Inn two thirds of
:15:31. > :15:35.revenue from the UK, for Costa, the figure is getting on for 90% so it's
:15:36. > :15:39.a business exposed to the British market. The Chief Executive has
:15:40. > :15:42.acknowledged there is uncertainty ahead, but it must be said, this is
:15:43. > :15:48.a business that looks like it has potential to gain from the decline
:15:49. > :15:51.in the value of the sterling because basically it makes it cheaper for us
:15:52. > :15:54.Brits to get holidays in the UK and also makes it cheaper for
:15:55. > :16:10.international visitors to come here. It does have significant
:16:11. > :16:14.international business, which in the case of Premier Inn lost money in
:16:15. > :16:18.this period. Made a profit on the Costa side of the business. It was
:16:19. > :16:22.less than the year before but the company is keen to develop the
:16:23. > :16:26.Premier Inn side particularly in Germany and the Middle East having
:16:27. > :16:27.pulled that business out of India and south-east Asia in the last
:16:28. > :16:48.year. Who said white bread? The bottom of
:16:49. > :16:52.the screen! The full details for Heathrow is on
:16:53. > :16:58.the website. We get that announcement at about midday.
:16:59. > :17:02.Our top story: One of the most controversial decisions in British
:17:03. > :17:07.Ministers will choose whether to expand Heathrow
:17:08. > :17:13.or Gatwick and most people think it will be Heathrow.
:17:14. > :17:20.The new runway could be worth $0.25 trillion to the UK economy.
:17:21. > :17:27.That announcement is expected in a few hours.
:17:28. > :17:31.A good day for Europe so farment the FTSE firmly above 7,000 and the DAX
:17:32. > :17:41.gaining on its record close yesterday.
:17:42. > :17:44.What do you think of when we say the word "bodyguard"?
:17:45. > :17:46.Perhaps the Hollywood version - men in suits dodging bullets?
:17:47. > :17:48.In reality the personal security industry covers everything
:17:49. > :17:50.from front line protection to behind the scenes intelligence
:17:51. > :17:54.In fact, in London alone, the industry is said to be worth
:17:55. > :17:56.more than $6 billion with many of the world's
:17:57. > :17:59.billionaires residing in the capital.
:18:00. > :18:02.Another Day is a security company capitalising on this demand.
:18:03. > :18:04.The firm's clients include everyone from celebrities to
:18:05. > :18:11.The issue of personal security caught the world's attention
:18:12. > :18:14.following the multi-million dollar robbery of Kim Kardashian in Paris
:18:15. > :18:18.recently, but do events like this misrepresent what the majority
:18:19. > :18:27.James Glancy is founder and Chief Executive of Another Day.
:18:28. > :18:34.James welcome. Nice to see you. Good morning. We touched on the Hollywood
:18:35. > :18:38.type stuffs. People running around with ear pieces in and with guns. I
:18:39. > :18:41.guess the vast majority of your work is that background security, it is
:18:42. > :18:44.about assessing what's happening around the world and making your
:18:45. > :18:49.clients aware of where is safe to go and where is not safe to go? You
:18:50. > :18:52.have the rise of social media over the last ten years, specifically the
:18:53. > :18:55.last five years means there is so much information out there. People
:18:56. > :18:59.are tweeting and providing information when they are at work
:19:00. > :19:06.about what they're up to, locations they're in and this is a gold mine
:19:07. > :19:08.for foreign intelligence agencies for serious organised crime and
:19:09. > :19:12.terrorist networks. So what that means it allows people to access
:19:13. > :19:17.information to target you directly when you're working or when you're
:19:18. > :19:20.overseas. Your clients are very diverse, aren't they? Talk us
:19:21. > :19:35.through the organisations you work with? We started off working with
:19:36. > :19:38.governments in imman and Qatar. Corporates want more intelligence
:19:39. > :19:43.about the way they analyse their risks. More information about how
:19:44. > :19:46.they can mitigate risk when their people travel overseas or when
:19:47. > :19:50.they're operating in the UK and Europe. You work with a lot of aid
:19:51. > :19:58.agencies as well, don't you? We have worked with aid organisations. It is
:19:59. > :20:04.generally work in frontier environments. West Africa and
:20:05. > :20:08.Ukraine, inhospitable environments and it is difficult to operate
:20:09. > :20:12.safely. We provide travel advice and help deliver aid on the ground. You
:20:13. > :20:15.do a lot of security of shomg centres and corporate premises and
:20:16. > :20:19.things like that. I would have assumed that governments would do,
:20:20. > :20:24.that they have an assessment of the risk against the country and thick
:20:25. > :20:27.advice people on what security precautions they need to take, but
:20:28. > :20:32.that's not necessarily the case as budgets get cut? If you have look at
:20:33. > :20:36.governments they have so much to respond to, trying to prioritise
:20:37. > :20:40.where they protect, they have limited resources. So what we have
:20:41. > :20:45.security market. We don't security market. We don't
:20:46. > :20:50.specifically provide physical protection. We provide the analysis
:20:51. > :20:53.and intelligence to provide mitigation strategies and training
:20:54. > :20:56.for staff should there be a crisis at a premises. Where does that
:20:57. > :21:01.intelligence come from? I imagine there is all sorts of places you can
:21:02. > :21:06.do that research. Give me a flavour of where that comes from? We have
:21:07. > :21:10.tried to lead the way in the market by using Silicon Valley technology,
:21:11. > :21:15.companies that mine information from social media. What we can do is put
:21:16. > :21:19.a lens over a business or a facility and really understand what is going
:21:20. > :21:23.on there. What the threats might be and by using that intelligence
:21:24. > :21:26.picture that helps us train the staff, train the management to
:21:27. > :21:32.understand what information that they're putting out there and
:21:33. > :21:36.therefore, we can provide strategies to reduce risk. Tell us about your
:21:37. > :21:39.story. It is your mystery working in the military that's given you the
:21:40. > :21:45.experience for this business? That's right. Post university I opted for a
:21:46. > :21:49.career in the Royal Marines. At that time, it just so happened, 9/11
:21:50. > :21:53.happened and no one could predict it would be a really busy ten years.
:21:54. > :21:57.So... Most of that time you were in Afghanistan? Yes, I deployed three
:21:58. > :22:03.times to Afghanistan. I was around the Middle East. During the Arab
:22:04. > :22:06.Spring which really opened my eyes to the growing and diverse
:22:07. > :22:10.requirement for security. What was the hardest thing? I suppose the
:22:11. > :22:16.transition from the military to business. I suppose which is harder
:22:17. > :22:20.to operate in? When you're operating in Afghanistan, you're, you've got a
:22:21. > :22:23.mission and you just get on with it. When you leave, you're without that
:22:24. > :22:27.institution and without the people that you've worked with. That's
:22:28. > :22:30.probably the hardest thing is finding out who you are and learning
:22:31. > :22:34.a different language, a business language. So yeah, there is no doubt
:22:35. > :22:37.that actually the transition it it is a taken a good couple of years to
:22:38. > :22:40.sort yourself out. James, it is really nice to talk to you. Thank
:22:41. > :22:45.you for coming in and explaining all of that. Yes, really interesting
:22:46. > :22:49.stuff. James Clancy from Another Day.
:22:50. > :22:52.In a moment we'll take a look through the Business Pages but first
:22:53. > :22:54.here's a quick reminder of how to get in touch with us.
:22:55. > :22:58.The Business Live page is where you can stay ahead with the day's
:22:59. > :23:01.breaking business news. We'll keep you up-to-date with the latest
:23:02. > :23:04.details with insight and analysis from the BBC's team of editors right
:23:05. > :23:13.around the world. And we want to hear from you too. Get involved on
:23:14. > :23:19.the BBC Business Live web page. On Twitter we're at.
:23:20. > :23:21.You can find us on Facebook. Business Live on TV and online
:23:22. > :23:31.whenever you need to know. Joining us again is
:23:32. > :23:44.Nandini Ramakrishnan. Nice to see you again. Let's talk
:23:45. > :23:54.about the story we asked for your views on. Philip Morris, one of the
:23:55. > :24:04.world's biggest ta tobacco firms asking people to give up the habit.
:24:05. > :24:10.Yohan says it would be business suicide. Tell us what they are
:24:11. > :24:13.really up to? They are encourage quitting or to have consumers buy
:24:14. > :24:18.the alternative products. I'm not sure it is suicide. They have got a
:24:19. > :24:21.substitute product going in, but from the global health and health
:24:22. > :24:27.care views that are probably it is better to get people away from the
:24:28. > :24:30.traditional tobacco. I wonder if their message is global, different
:24:31. > :24:34.markets, different countries are at different phases when it comes to
:24:35. > :24:37.the cultural shift from smoking being the norm to smoking being seen
:24:38. > :24:43.as something that's bad for your health? One of the strategies is
:24:44. > :24:49.researching and figuring out what's the best replacement in different
:24:50. > :24:57.gee ographies. A reshuffle at Tata. A new guy in and they will appoint
:24:58. > :25:00.him in four months? This company isn't so public with changes. It
:25:01. > :25:03.signals a strive towards profitability. Something that a lot
:25:04. > :25:07.of Indian companies are looking towards to getting in the more
:25:08. > :25:11.global business environment with a lot more visibility and transparency
:25:12. > :25:15.about their leaders. Tata is huge. It is a name we're familiar with
:25:16. > :25:19.because of Tata Steel, but in India, it is a massive, massive business?
:25:20. > :25:24.Massive business with a lot of sub businesses and a lot of different
:25:25. > :25:27.operational things whether it is in the true industry, things down the
:25:28. > :25:31.chain. So to speak. Lovely to see you. Thank you for talking us
:25:32. > :25:36.through that. A busy day. Lots on the show. We've packed it all in.
:25:37. > :25:41.Remember there is full coverage over that decision at Heath owe. We are
:25:42. > :25:44.expecting that at around midday. As we have been discussing likely to
:25:45. > :25:47.face all sorts of legal challenges and opposition and consultation.
:25:48. > :25:53.Rachel is there for us as you saw. She will be updating us on that
:25:54. > :26:00.story as it breaks. Stay with us on the BBC. Bye for now. See you later.