25/10/2016 BBC Business Live


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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.


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