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This is Business Live from BBC News with Ben Thompson and Sally Bundock.
One of the world s biggest airports looks set to get the green light
Live from London, that's our top story on Tuesday 25th October.
Coming in to land at last, the UK Government's long-awaited
decision on airport expansion is set to be announced today,
Also in the programme, South Korea's losing streak
takes its toll on the economy, Samsung, Hyundai and Hanjin,
And what does it take to protect a VIP?
We'll meet the former Royal Marine Commando who's security
We want to know, can tobacco companies ever kick the habit and
can they embrace e-cigarettes? Let us know.
The UK Government will announce today whether it would prefer
to expand Heathrow or Gatwick airport, with Heathrow
widely expected to get the go-ahead for a third runway.
Critically, though, the binding MPs' vote the one that counts will not
happen for another year or so.Heathrow is already operating
at 98% capacity, and last year an Independent Commission backed
But the main competition comes from Gatwick Airport; they say
Brexit favours their plan for an extra runway,
because they can do it cheaper and quicker than their rival.
The Airports Commission estimates that expanding Heathrow could add
as much as $258 billion to the UK economy, while an extra runway
at Gatwick could add up to $155 billion.
But the airline industry as a whole is expected to generate revenues
of $709 billion dollars this year with hubs like Dubai
and Schiphol Airport keen to take a larger share of that market
Let's cross over to Rachel Horne who joins us from Heathrow airport.
Joining me in the studio is Victoria Moores, European editor
It could be a long time before that third runway is a reality? That's
right. It's been a long time already. It was back in 2000 that
the UK Department for Transport said airport capacity in the UK needed to
be addressed. It followed a series of consultations and White Papers,
legal challenges and finally in 2012 they set up the independent airport
commission to look at the options, an extension, a new second runway at
Gatwick or another runway at Heathrow. They backed the new runway
at Heathrow, that was in July 2015. The Government have had until today
to come up with their preferred option, that is what we are
expecting around lunch time. The Government's come out to say which
option they prefer. As you say, that is not the end of it. There'll be a
further year of consultation, legal challenges before MPs will vote in
the House of Commons, even after that it could be a number of more
years before any ground is broken on any new construction. The boss of
Heathrow and Gatwick have fought hard to win a new runway. Give us a
sense of how important it is for their businesses if they were to
win? Heathrow is the UK's busiest airport, 70% of long haul flights go
out of Heathrow, there's one taking off right now. It transports more
freight by value than all of the other UK airports combined. As you
mentioned, Heathrow will be more expensive. When we look at the
investment that would be needed, from Heathrow it could cost about
?20 billion to build the new runway. The one at Gatwick more like ?8.5
million. In terms of jobs, 76,000 for Heathrow, Gatwick more like
6,500, so more investment but potentially more returns. Also more
local people affected. At Heathrow, it's thought more homes cob affected
by sound and air pollution, whereas at Gatwick it's a smaller number.
Big fights from both airports for this business, saying they both need
the expansion. There are rumours that if Gatwick don't get it, they
could try and press ahead with their own expansion because the funds
would come from the airports themselves. We'll wait the see what
announcement comes at lunch time today in the UK.
We'll speak to you then, Rachel, thank you very much.
That is the view from the ground. Let's assess the wider implications.
Joining me in the studio is Victoria Moores, European editor
Welcome. I suppose what we should make clear is, this is not the end
of the story, even a decision today could face legal appeals, a
consultation, and it's by no means a done deal? Absolutely not. It's
already been a very long story so far and I think that the difficulty
that we have is that we keep seeing decisions. This isn't the first time
we have had a decision and ultimately isn't even a final
decision today. What we keep seeing is the decision gets taken,
reversed, then we go through the whole thing again. I guess is
question is, how can we make this a real process. You can see why there
is opposition from people with extra noise and pollution and you can see
why environmentalists don't like this because there'll be additional
pollution. The Government's trying to address the concerns, talking
about more fuel efficient cars on the roads. Also BA, one of the
biggest carriers at Heathrow, it's also opposed to this, why? I think
that the secret of that is in the limited capacity of Heathrow. At the
moment, Heathrow is a major hub, it's a very desirable airport.
Airlines from all over the world want to fly into Heathrow and BA has
a very strong position there that they built up over a number of
BMI to make sure they maintain the BMI to make sure they maintain the
stronghold at the airport. They are also spreading their bets because
parent companies have gone out on to the market, it's brought Iberia, Aer
Lingus, for example, so they are hedging their bets but ultimately
they want to maintain their position at Heathrow, it's a valuable
position to be in. When we talk about the international perspective
of this, other airports are rubbing their hands with glee aren't they
because more indecision and opposition means they can steal a
lead on Heathrow? Precisely. We have seen reports recently over the fact
that Schipol sends Heathrow a cake every time the decision is deferred,
but the key factor is that expansion of Heathrow and air transport is
very, very important to the UK economy. So basically if that
expansion doesn't happen in the UK, it will happen elsewhere and when
you talk about the environmental issues, the environment is the
environment, the environment is a global problem, what will happen is
that those emissions that growth, that expansion will happen elsewhere
and the UK will not benefit from the economic gains they could have from
the expansion of Heathrow or the south-east airports. Always that
same theme, not in my backyard, people see the need but don't want
it on their doorstep. Thank you very much. Thank you.
Canada and the EU say their free trade deal is not dead,
even though three Belgian regions blocked its signature.
All of Belgium's regions must approve the deal before
the government can join other EU countries in approving it.
Three French-speaking parts of the country
led by Socialists want more time to study the agreement.
The European Council President, Donald Tusk, said it was
still possible to sign it on Thursday as planned.
Social networking site Twitter is planning to cut hundreds of jobs
It's reported around 8% of the workforce could go
in a shakeup to be announced before it reports third-quarter
Twitter has 3,860 employees around the world but faces
an uncertain future after failing to find a buyer.
It's also making losses of around $400 million a year.
The model railway maker Hornby is yet another UK company to be
affected by the fall in the British pound.
The company has put up prices for the first time
Sterling has fallen by 17% against the US dollar
following Britain's decision to leave the European Union,
this has led to a rise in Hornby's input costs.
Growth in the South Korean economy has slowed as companies like Samsung
Our Asia Business Correspondent Karishma Vaswani is in Singapore.
We have mentioned Hanjin and Samsung but also Hyundai, big industrial
action affecting its earnings as well? Absolutely, Sally. Can it get
any worse for South Korea, you would wonder. Frankly it would be fair to
say that it's been going through a prolonged rough patch for the
economy, the massive corporate collapses that you were just talking
about, the likes of Hanjin Shipping, the biggest shipping firm, strikes
at Hyundai didn't help, the biggest strikes the company's ever seen. To
top it all off, the worst ever product recall in the electronics
giant Samsung's history. Who can forget the fact that the Galaxy note
7 and the case of its exploding batteries, if you will. All of that
combined ended up resulting in clocking in in South Korea around
2.7%, calling it the gloomiest corner. Good manufacturing news and
the US in general. Europe, the early stories all over the world. We have
got Anglo-American at 3% on the FTSE, come out with good production
numbers. We'll talk through the earning stories in a second but
firstly, to what is going to happen in the US.
Michelle Fleury has the details about what's ahead
Apple reports full year results after the closing bell this Tuesday
and with sales of the iPhone in decline, will the new iPhone 7 and 7
Plus provide a boost? Investors have been concerned because iPhone sales
account for the vast majority of Apple's revenue and they have fallen
for the last two straight quarters. Earnings from Procter Gamble
should shed light on how consumers are feeling. Investors are concerned
after Unilever reported a rare slide in sales. They'll be focussed on
what the company has to say about the months to come. Can General
Motors continue to benefit from strong car and truck sales here in
North America, its most profitable market. Watch out for results from
caterpillar, DuPont and 3 M to name just a few.
We'll have all the details from New York as we get them. Lots of
earnings due this week. Joining us is Nandini Ramakrishnan,
Global Market Strategist at JP The DAX had a record session. What
is driving it? We know the FTSE is doing well? Talk us through the
German story? The German economic data yesterday was stronger than
expected. A big turn from earlier in the year from when some of the big
German industrials listed in the DAX were worried about Chinese and
global slowdown. We are now in a better place than in several months
ago, that is why we are seeing the positive earnings surprise and the
stock market rising up with it. We have lots going out in Europe.
Generally speaking, you get a sense the earnings are better than
expected, especially stateside? Yes, definitely better than in the US.
The big challenges for the US Dollar and oil prices, they are starting to
stabilise. A slightly weaker US Dollar than last year looking good
for those companies. Short and sweet, nice to see you, see you
later for the papers. For now, thank you.
We meet the former royal marine commando who's security company
helps keep business leaders and politicians away from harm.
You're with Business Live from BBC News.
Whitbread, the company behind Premier Inn and Costa Coffee,
has released its results for the six months up to 1st September.
Andrew Walker is in our Business Newsroom.
Andrew bring us up-to-date because Costa, one of the brands we see on
the high street, but they are venturing into different things. The
thing that caught me was this high-end coffee, away from mass
market trying to compete with the fancy coffee shops? Indeed they are.
That's a new initiative. For the most part, the results are dominated
by their established businesses, the big coffee shops and Premier Inns.
The results show 8% increase in revenue compared to last year, up to
?1.5 billion. The share price over the last five years you can see
strong gains up to the middle of last year. Coming off those highs a
bit since then, but overall these are pretty healthy results. If you
look at the business, it's dominated by the UK, Premier Inn two thirds of
revenue from the UK, for Costa, the figure is getting on for 90% so it's
a business exposed to the British market. The Chief Executive has
acknowledged there is uncertainty ahead, but it must be said, this is
a business that looks like it has potential to gain from the decline
in the value of the sterling because basically it makes it cheaper for us
Brits to get holidays in the UK and also makes it cheaper for
international visitors to come here. It does have significant
international business, which in the case of Premier Inn lost money in
this period. Made a profit on the Costa side of the business. It was
less than the year before but the company is keen to develop the
Premier Inn side particularly in Germany and the Middle East having
pulled that business out of India and south-east Asia in the last
year. Who said white bread? The bottom of
the screen! The full details for Heathrow is on
the website. We get that announcement at about midday.
Our top story: One of the most controversial decisions in British
Ministers will choose whether to expand Heathrow
or Gatwick and most people think it will be Heathrow.
The new runway could be worth $0.25 trillion to the UK economy.
That announcement is expected in a few hours.
A good day for Europe so farment the FTSE firmly above 7,000 and the DAX
gaining on its record close yesterday.
What do you think of when we say the word "bodyguard"?
Perhaps the Hollywood version - men in suits dodging bullets?
In reality the personal security industry covers everything
from front line protection to behind the scenes intelligence
In fact, in London alone, the industry is said to be worth
more than $6 billion with many of the world's
billionaires residing in the capital.
Another Day is a security company capitalising on this demand.
The firm's clients include everyone from celebrities to
The issue of personal security caught the world's attention
following the multi-million dollar robbery of Kim Kardashian in Paris
recently, but do events like this misrepresent what the majority
James Glancy is founder and Chief Executive of Another Day.
James welcome. Nice to see you. Good morning. We touched on the Hollywood
type stuffs. People running around with ear pieces in and with guns. I
guess the vast majority of your work is that background security, it is
about assessing what's happening around the world and making your
clients aware of where is safe to go and where is not safe to go? You
have the rise of social media over the last ten years, specifically the
last five years means there is so much information out there. People
are tweeting and providing information when they are at work
about what they're up to, locations they're in and this is a gold mine
for foreign intelligence agencies for serious organised crime and
terrorist networks. So what that means it allows people to access
information to target you directly when you're working or when you're
overseas. Your clients are very diverse, aren't they? Talk us
through the organisations you work with? We started off working with
governments in imman and Qatar. Corporates want more intelligence
about the way they analyse their risks. More information about how
they can mitigate risk when their people travel overseas or when
they're operating in the UK and Europe. You work with a lot of aid
agencies as well, don't you? We have worked with aid organisations. It is
generally work in frontier environments. West Africa and
Ukraine, inhospitable environments and it is difficult to operate
safely. We provide travel advice and help deliver aid on the ground. You
do a lot of security of shomg centres and corporate premises and
things like that. I would have assumed that governments would do,
that they have an assessment of the risk against the country and thick
advice people on what security precautions they need to take, but
that's not necessarily the case as budgets get cut? If you have look at
governments they have so much to respond to, trying to prioritise
where they protect, they have limited resources. So what we have
security market. We don't security market. We don't
specifically provide physical protection. We provide the analysis
and intelligence to provide mitigation strategies and training
for staff should there be a crisis at a premises. Where does that
intelligence come from? I imagine there is all sorts of places you can
do that research. Give me a flavour of where that comes from? We have
tried to lead the way in the market by using Silicon Valley technology,
companies that mine information from social media. What we can do is put
a lens over a business or a facility and really understand what is going
on there. What the threats might be and by using that intelligence
picture that helps us train the staff, train the management to
understand what information that they're putting out there and
therefore, we can provide strategies to reduce risk. Tell us about your
story. It is your mystery working in the military that's given you the
experience for this business? That's right. Post university I opted for a
career in the Royal Marines. At that time, it just so happened, 9/11
happened and no one could predict it would be a really busy ten years.
So... Most of that time you were in Afghanistan? Yes, I deployed three
times to Afghanistan. I was around the Middle East. During the Arab
Spring which really opened my eyes to the growing and diverse
requirement for security. What was the hardest thing? I suppose the
transition from the military to business. I suppose which is harder
to operate in? When you're operating in Afghanistan, you're, you've got a
mission and you just get on with it. When you leave, you're without that
institution and without the people that you've worked with. That's
probably the hardest thing is finding out who you are and learning
a different language, a business language. So yeah, there is no doubt
that actually the transition it it is a taken a good couple of years to
sort yourself out. James, it is really nice to talk to you. Thank
you for coming in and explaining all of that. Yes, really interesting
stuff. James Clancy from Another Day.
In a moment we'll take a look through the Business Pages but first
here's a quick reminder of how to get in touch with us.
The Business Live page is where you can stay ahead with the day's
breaking business news. We'll keep you up-to-date with the latest
details with insight and analysis from the BBC's team of editors right
around the world. And we want to hear from you too. Get involved on
the BBC Business Live web page. On Twitter we're at.
You can find us on Facebook. Business Live on TV and online
whenever you need to know. Joining us again is
Nandini Ramakrishnan. Nice to see you again. Let's talk
about the story we asked for your views on. Philip Morris, one of the
world's biggest ta tobacco firms asking people to give up the habit.
Yohan says it would be business suicide. Tell us what they are
really up to? They are encourage quitting or to have consumers buy
the alternative products. I'm not sure it is suicide. They have got a
substitute product going in, but from the global health and health
care views that are probably it is better to get people away from the
traditional tobacco. I wonder if their message is global, different
markets, different countries are at different phases when it comes to
the cultural shift from smoking being the norm to smoking being seen
as something that's bad for your health? One of the strategies is
researching and figuring out what's the best replacement in different
gee ographies. A reshuffle at Tata. A new guy in and they will appoint
him in four months? This company isn't so public with changes. It
signals a strive towards profitability. Something that a lot
of Indian companies are looking towards to getting in the more
global business environment with a lot more visibility and transparency
about their leaders. Tata is huge. It is a name we're familiar with
because of Tata Steel, but in India, it is a massive, massive business?
Massive business with a lot of sub businesses and a lot of different
operational things whether it is in the true industry, things down the
chain. So to speak. Lovely to see you. Thank you for talking us
through that. A busy day. Lots on the show. We've packed it all in.
Remember there is full coverage over that decision at Heath owe. We are
expecting that at around midday. As we have been discussing likely to
face all sorts of legal challenges and opposition and consultation.
Rachel is there for us as you saw. She will be updating us on that
story as it breaks. Stay with us on the BBC. Bye for now. See you later.