:00:00. > :00:00.This is Business Live from BBC News with Susannah Streeter
:00:07. > :00:14.It's Budget Day in the UK with the Chancellor poised
:00:15. > :00:17.to deliver an "upbeat" speech, but how much money has he got
:00:18. > :00:35.Live from London, that's our top story on Wednesday, 8th March.
:00:36. > :00:39.As the UK prepares to leave the European Union,
:00:40. > :00:42.will the Treasury provide a Budget boost to cushion the blow?
:00:43. > :00:46.We'll speak to an expert for her predictions.
:00:47. > :00:48.Also in the programme, crossing borders and crossing lines!
:00:49. > :00:51.Chinese Telecom giant ZTE has been handed a fine for violating
:00:52. > :01:02.We'll be live in Asia for the latest.
:01:03. > :01:07.This is the situation on the financial markets as they open in
:01:08. > :01:09.Europe. Investors look ahead to the UK Budget.
:01:10. > :01:12.What's the secret behind the world's most successful brands?
:01:13. > :01:16.Is it simply a case of advertising spend or is there more to the story?
:01:17. > :01:18.We'll speak to one of the industry's leading experts
:01:19. > :01:24.It's International Women's Day so let us know who's your most
:01:25. > :01:35.Perhaps it's the head of the world's most powerful Central Bank?
:01:36. > :01:37.Or maybe it's Mary Barra, the boss of General Motors?
:01:38. > :01:57.In a few hours time, the UK's Finance Minister
:01:58. > :02:04.or Chancellor as we call him here, Phillip Hammond, will deliver
:02:05. > :02:07.the country's final Budget before the Government triggers Article 50,
:02:08. > :02:12.and Britain begins its negotiations to leave the European Union.
:02:13. > :02:14.Despite the ongoing uncertainty over Brexit,
:02:15. > :02:16.Philip Hammond received an eve of Budget boost
:02:17. > :02:17.from the Organisation for Economic Co-operation
:02:18. > :02:24.It now expects growth in the UK of 1.6% this year,
:02:25. > :02:27.up from its previous estimate of 1.2%.
:02:28. > :02:31.In theory this means more tax revenue for the Treasury
:02:32. > :02:33.and more money flowing in to the Government's coffers.
:02:34. > :02:36.Despite this, economists are not expecting a spending spree
:02:37. > :02:38.when Mr Hammond announces the UK's fiscal plans for the coming year.
:02:39. > :02:42.Instead, he's expected to put the additional funds to one side
:02:43. > :02:44.in a Brexit war chest as Britain prepares for its divorce
:02:45. > :02:56.Nevertheless, one area which may receive some more attention
:02:57. > :02:59.are the so-called business rates paid on commercial property.
:03:00. > :03:01.Despite the Government's reassurances that Britain
:03:02. > :03:03.remains open for business, some companies will see
:03:04. > :03:05.more than a 40% rise in their property rates.
:03:06. > :03:08.To help cushion the blow, the Treasury has already
:03:09. > :03:11.announced a $4.4 billion transitional relief fund.
:03:12. > :03:21.Also there may be some extra money found for social care in England.
:03:22. > :03:23.Hetal Mehta, Senior European Economist, Legal
:03:24. > :03:27.and General Investment Management is with me.
:03:28. > :03:37.Good morning. So, as ever, we're all trying to figure out what's in the
:03:38. > :03:40.Budget as it were hours before he delivers his speech to Parliament.
:03:41. > :03:44.What are your thoughts? So I think one of the key things is that the
:03:45. > :03:48.economy has performed much better since, not just the referendum, but
:03:49. > :03:53.even since the Autumn Statement we had last November. So the Chancellor
:03:54. > :03:56.has a lot more wriggle room. The tax revenues have been higher so he
:03:57. > :04:00.could use that, but I think he has been quite clear that he is unlikely
:04:01. > :04:05.to go on a spending spree. He will keep that money in reserve. Brexit
:04:06. > :04:09.still hasn't happened yet so if and when the economy does deteriorate
:04:10. > :04:12.then at least the Government has got something up its sleeve at that
:04:13. > :04:17.point in time. Is he wise to do that at this point, do you think? I think
:04:18. > :04:22.so. I think, you might as well, given that the economy is better,
:04:23. > :04:26.keep the money in reserve. We noted back in November that there is a
:04:27. > :04:30.little bit of a discrepancy in terms of the projections further out so
:04:31. > :04:34.the economy was expected to continue doing very well whilst the deficit
:04:35. > :04:38.was going to narrow significantly. Whereas actually this extra money
:04:39. > :04:42.could go to help smoothing that profile out and make the numbers
:04:43. > :04:45.more credible. So he is bound to talk a lot about the state of the
:04:46. > :04:49.economy being better than we all thought it would be, but the
:04:50. > :04:55.uncertainty ahead because of Brexit. How uncertain is it in your view?
:04:56. > :05:00.Are we any clearer at this point than we were say late summer of last
:05:01. > :05:07.year or are we still as much in the dark? We have had a lot, there is a
:05:08. > :05:09.range of outcomes being narrowed. After the referendum people were
:05:10. > :05:12.questioning who will the Prime Minister be? Will it be Boris
:05:13. > :05:16.Johnson? Could it be someone else? Will this trigger another election?
:05:17. > :05:19.A lot of those outcomes have been narrowed, so some uncertainty has
:05:20. > :05:24.been taken away, but we have very little clarity on what negotiating
:05:25. > :05:27.stance of the EU will be going into the Brexit discussions. So in terms
:05:28. > :05:32.of news about spending and which departments will get money, this
:05:33. > :05:36.time, it is likely to be fairly small and token and many are
:05:37. > :05:41.actually say he's storing up all the cash for a big splurge before the
:05:42. > :05:45.next election which is kind of after the Brexit negotiations as well? The
:05:46. > :05:50.timing is actually quite interesting. As you say, 2019, it's
:05:51. > :05:54.when the UK is due to leave the EU and that would be the time that
:05:55. > :05:58.typically governments do go on a spending spree one year ahead of an
:05:59. > :06:01.election and particularly given the Prime Minister has talked a lot
:06:02. > :06:05.about helping people who are just about managing. People who are being
:06:06. > :06:08.hit by the inflation squeeze, we may see a few small measures there just
:06:09. > :06:13.to alleviate that stress, but I think a big give away is further
:06:14. > :06:17.down the line. All right, thank you very much indeed for sharing your
:06:18. > :06:22.thoughts. And needless to say, we're going to be all over this today on
:06:23. > :06:26.the BBC! Whether you like it or not! If you tune in to us, this is what
:06:27. > :06:30.you will be getting online, on radio and on television. There is a lot of
:06:31. > :06:35.reporting going on about the changes to business rates. That's caused a
:06:36. > :06:39.backlash among many small businesses. They're going to see
:06:40. > :06:42.their rates go up, but they have been promised some kind of
:06:43. > :06:44.transitional relief. Keep it with us if you want to be across the UK
:06:45. > :06:50.Budget. China posted its first monthly trade
:06:51. > :06:54.deficit in three years in February as imports surged at their fastest
:06:55. > :06:57.pace since early 2012, driven by its strong demand
:06:58. > :06:59.for commodities from iron ore China's February exports
:07:00. > :07:04.unexpectedly fell 1.3% from a year earlier,
:07:05. > :07:06.but imports expanded 38.1 percent, Chinese telecom giant ZTE has been
:07:07. > :07:10.fined $1.1 billion and will plead guilty to charges that it violated
:07:11. > :07:18.US rules by shipping US-made It is as a result of negotiations
:07:19. > :07:22.between the telecoms giant and US officials. It is the largest fine
:07:23. > :07:28.imposed by a US Government in relation to breaking US sanctions.
:07:29. > :07:33.Let me break down the numbers, ?900 z that's how much ZTE have to pay
:07:34. > :07:37.right now. Another 300 million has been suspended for seven years
:07:38. > :07:43.depending on how the company complies with the plea deal. ZTE is
:07:44. > :07:49.accused of buying US components and putting them into ZTE equipment and
:07:50. > :07:52.shipping them off to Iran and North Korea, it included routers,
:07:53. > :07:57.microprocessors and servers. ZTE is accused to have bought the parts in
:07:58. > :08:00.the US, these are restricted for export because of their potential
:08:01. > :08:10.for military use. The Chinese company also sent about 283 of these
:08:11. > :08:13.shipments to North Korea. On top of that, they lied to US officials
:08:14. > :08:18.while the officials were investigating the company. ZTE does
:08:19. > :08:21.say it acknowledges it made some mistakes and it is working prards z
:08:22. > :08:24.towards improving its procedures. Back to you in London now. Thank
:08:25. > :08:44.you. Insurers rose after Congress
:08:45. > :08:53.introduced the Bill intended to replace the Affordable Care Act.
:08:54. > :08:56.Let's look at Europe. The main stock markets fell on opening. Investors
:08:57. > :09:01.are waiting, of course the UK Budget. Some more positive
:09:02. > :09:05.production data from Germany did provide some reassurance after some
:09:06. > :09:09.poor factory numbers came out yesterday causing concern about
:09:10. > :09:12.perhaps brakes being put on Europe's largest economy.
:09:13. > :09:15.Samira Hussain has the details about what's ahead on Wall Street Today.
:09:16. > :09:23.Coming up on Wednesday we see just how robust hiring has been in the
:09:24. > :09:27.private sector in the US when the ADP national employment report is
:09:28. > :09:30.released. This is the precursor to the jobs report issued by the
:09:31. > :09:35.Commerce Department and it often gives us sort of an idea of what we
:09:36. > :09:42.will see on Friday when that latest jobs report is out. Now economists
:09:43. > :09:49.believe the private employers will have added about 190,000 jobs in the
:09:50. > :09:53.month of February after adding 246,000 jobs in January. The annual
:09:54. > :09:57.shareholders meeting for the Walt Disney company takes place in
:09:58. > :10:01.Denver. In February, the Chief Executive said he is open to
:10:02. > :10:05.extending his term as the head of the company. Offering investors a
:10:06. > :10:10.sign of potential stability at the media company as it reported a dip
:10:11. > :10:15.in quarterly advertising revenue at ESPN. Now, remember ESPN is the big
:10:16. > :10:21.money maker for Walt Disney. Joining us is Richard Hunter,
:10:22. > :10:33.Head of Research, Wilson King Richard let me welcome you as the
:10:34. > :10:37.first male on Business Live. That's not by design. That's how it is on
:10:38. > :10:41.this programme on a daily basis. Richard, talking markets, of course,
:10:42. > :10:45.it is Budget day in the UK. Are you going to be hanging on Hammond's
:10:46. > :10:49.every word or is it not that big a deal today? I think generally
:10:50. > :10:53.speaking what happens with the Budget, it has implication for
:10:54. > :10:56.specific sectors usually for example, alcohol companies, tobacco
:10:57. > :11:01.companies, house builders. The usual reaction? Usual reaction. In terms
:11:02. > :11:07.of the macrostuff, the wider picture, it tends to be more of a
:11:08. > :11:12.currency story than moving equity markets apart from those specific
:11:13. > :11:17.sectors. I think it will be one that is going to be closely followed
:11:18. > :11:21.because at the moment the market is scrambling for any clues as to what
:11:22. > :11:26.Brexit might actually mean. The pound being at seven week lows. What
:11:27. > :11:31.kind of currency movements might you expect? Currency market apart from
:11:32. > :11:37.being the biggest in the world is something of a zero sum game. As the
:11:38. > :11:40.dollar strengthens something else has got to weaken and sterling is
:11:41. > :11:45.tending to be in the firing line because of this uncertainty around
:11:46. > :11:51.the referendum. Also, the fact that markets are in a wait and see mode
:11:52. > :11:54.anyway because of next week, the US Federal Reserve meeting. Most
:11:55. > :11:59.believe rates will go up next week. I feel there is a bit of fear in
:12:00. > :12:02.markets. The fact that this global rally that we have seen from
:12:03. > :12:06.November last year when Donald Trump won the US election is perhaps
:12:07. > :12:10.ending and therefore, what's going to happen next? Is it going to be a
:12:11. > :12:14.small correction? A big crash? People are worried. The problem
:12:15. > :12:18.we've got is the US markets, which, of course, have an impact on global
:12:19. > :12:24.sentiment have been hitting record highs and a lot of that is basically
:12:25. > :12:28.trying to anticipate the boost to the US economy, depending on what
:12:29. > :12:32.Trump comes out. That's very well, but we have yet to have any real
:12:33. > :12:36.detail in terms of tax cuts, infrastructure spending and so on.
:12:37. > :12:39.So, what increasingly we are afinding, of course, we're kind of
:12:40. > :12:44.balanced on a knife edge because there is a lot that needs to be
:12:45. > :12:47.delivered now to catch up with the expectations that the markets have
:12:48. > :12:50.already priced in. Richard will be back. He'll name his most
:12:51. > :12:56.inspirational female leader in business. Do tell us yours. We will
:12:57. > :12:59.hear from Richard. We will hear from you hopefully.
:13:00. > :13:02.Still to come, what's the secret behind the world's
:13:03. > :13:06.Is it simply a case of advertising spend or is there more to the story?
:13:07. > :13:08.We'll speak to one of the industry's leading experts
:13:09. > :13:17.You're with Business Live from BBC News.
:13:18. > :13:22.Controversial security firm G4S has published their first set of full
:13:23. > :13:26.year results since the riot in their Birmingham prison in 2016.
:13:27. > :13:29.Revenues have risen 6.6% and profits are up 9.4%.
:13:30. > :13:34.Theo Leggett is in our business newsroom.
:13:35. > :13:42.You have been cumplging the numbers. Theo, what else do they show? Well,
:13:43. > :13:46.these numbers, if you take away all the reputational issues facing G4S
:13:47. > :13:49.they are looking good. This was the first increase in revenues for four
:13:50. > :13:54.years for the company. Pretty healthy figures. Only increased by
:13:55. > :14:02.1.5% in the UK. That's one of its weaker regions. Remember, this is a
:14:03. > :14:07.colossal company. Where it is doing best is the United States where
:14:08. > :14:11.revenues were up more than 12%. And pre-tax profits up around 13%. So
:14:12. > :14:15.good there. The company says the improvement is largely down to a
:14:16. > :14:19.restructuring effort which it launched three years ago which
:14:20. > :14:23.included selling off non performing businesses, trying to win new
:14:24. > :14:27.contracts well, while at the same time retaining existing contracts
:14:28. > :14:31.and that does seem to have reaped rewards. But it is G4S, it is a
:14:32. > :14:35.controversial company and what there doesn't seem to be any sign of in
:14:36. > :14:39.the results is any mention of the Birmingham Prison riot last
:14:40. > :14:44.December. You might remember the Justice Secretary Liz Truss said
:14:45. > :14:47.that G4S would have to pay for the cost of introducing special crack
:14:48. > :14:51.squads of officers who are brought in to quell the riot. There has been
:14:52. > :14:55.controversy over its handling of children's services, some of its
:14:56. > :14:58.detention centres. G4S in the process of goating rid of that
:14:59. > :15:01.business. These results, they just show the financial figures which
:15:02. > :15:06.look robust. The reputational problems still exist.
:15:07. > :15:12.As ever, we give you no warning about this next question! So we're
:15:13. > :15:17.asking today is stands out in business in terms of women leaders?
:15:18. > :15:23.Who is that for you? Mary Barra.
:15:24. > :15:29.There are women standing around, generally to make the cars look
:15:30. > :15:33.good. But she has succeeded in a man's world.
:15:34. > :15:37.Good for you, thanks for sharing. We have asked for your inspirational
:15:38. > :15:42.women in business, send them on Twitter, a lot of stories on the
:15:43. > :15:46.website and stories other than the Budget, this is about record sales
:15:47. > :15:51.for Nintendo witch. Read all about it.
:15:52. > :15:55.Our top story: In a few hours' time, the UK's Finance Minister -
:15:56. > :15:58.or Chancellor, as we call him here - Phillip Hammond, will deliver
:15:59. > :16:00.the country's final Budget, before the Government triggers
:16:01. > :16:05.And Britain begins its negotiations to leave the European Union.
:16:06. > :16:07.Despite the ongoing uncertainty over Brexit, Philip Hammond received
:16:08. > :16:09.an eve-of-Budget boost from the Organisation for Economic
:16:10. > :16:14.It now expects growth in the UK of 1.6% this year,
:16:15. > :16:22.up from its previous estimate of 1.2%.
:16:23. > :16:25.Philip Hammond is due to address Parliament in a few hours' time.
:16:26. > :16:29.We'll have more coverage of the UK Budget both on-air and online.
:16:30. > :16:32.Now, if you're old enough to cast your mind back at least 40 years,
:16:33. > :16:35.you might be able to recall a time when the concept of "branding"
:16:36. > :16:43.Yes, branding is more than just a name, it's now a whole industry,
:16:44. > :16:45.covering everything from corporate strategy and design to the value
:16:46. > :16:52.And it is, of course, everywhere - from the TV or smartphone you might
:16:53. > :16:57.be watching this programme on, even to the name BBC itself.
:16:58. > :17:00.And our next guest knows a thing or two about the concept.
:17:01. > :17:05.In 1974, John Murphy founded what was then
:17:06. > :17:10.the world's first name creation company, called Novabrand.
:17:11. > :17:12.Five years later, it became Interbrand, as it moved
:17:13. > :17:14.beyond coming up with names to create a whole brand
:17:15. > :17:19.image for its clients, a story told in his new book.
:17:20. > :17:37.That is certainly a brand name you have, with! How did it begin? You
:17:38. > :17:42.started this name creation organisation and when was it that
:17:43. > :17:45.you realised you could put a value on the brand itself? I was working
:17:46. > :17:50.for Dunlop and I was desperate to get out and is to start my own
:17:51. > :17:55.business. This was in the mid-19 70s. I had a problem at the Dunlop
:17:56. > :18:00.finding an international name for a new product, new tyres. I thought if
:18:01. > :18:04.I had that problem and nobody could help, the advertising agencies,
:18:05. > :18:09.nobody, so I started this naming the business. We saw top names. We did
:18:10. > :18:16.the trademark law and we added graphic design. And I started to
:18:17. > :18:20.realise we were doing more than just being, what we might call
:18:21. > :18:24.wordsmiths. We were creating things called brands. And the word brand
:18:25. > :18:30.was little used. They were product managers in business, but not brand
:18:31. > :18:35.managers. And I realised we were creating personality of the product.
:18:36. > :18:39.And people like the advertising agencies, they were given this and
:18:40. > :18:45.they had the job of communicating. We were at the start of the process,
:18:46. > :18:51.we were brand creators. So at the time, even with the first to do
:18:52. > :18:54.this. This is back in the 1970s, no internet, no social media, no means
:18:55. > :18:58.of communication from that point of view. How did you get it out to
:18:59. > :19:07.companies like Mars who became your clients at that time? It was mainly,
:19:08. > :19:13.we spent hours with trade lists and we typed up lists and we photocopied
:19:14. > :19:19.them and we sent mailshots out. And we did a lot of PR. We were very
:19:20. > :19:24.nicely treated by the financial and the business press, but they all
:19:25. > :19:28.thought we were a bit loopy. We were the funny slot. But there was always
:19:29. > :19:32.somebody who had a serious problem, they had just launched a new
:19:33. > :19:34.product. And the day they were launched, they got a writ from
:19:35. > :19:40.somebody saying, the name you are using is ours, and they came to us
:19:41. > :19:46.to solve their problem. Did you predict it could become as big and
:19:47. > :19:51.important and industry as it is now? I did not have the slightest idea, I
:19:52. > :19:56.just wanted to make a living and to survive at first. Increasingly, and
:19:57. > :20:00.you that what we were doing was important and increasingly, this
:20:01. > :20:04.sounds big headed, what the advertising industry was doing was
:20:05. > :20:07.trivial. We were the ones at the start of the process, we were
:20:08. > :20:12.creating the brand, their job was simply to think up some adverts. And
:20:13. > :20:16.at the time, the city did not factor in the value of the brand in their
:20:17. > :20:23.valuation of companies and their assets. No, the brands were simply
:20:24. > :20:26.regarded as goodwill, there was this catchall phrase, goodwill. And we
:20:27. > :20:32.came up and said, no, goodwill in the case of many companies is mainly
:20:33. > :20:37.brand names, it is the brands, and we can value those and put a
:20:38. > :20:42.monetary value on them. Your company started in the UK and expanded
:20:43. > :20:46.globally and it went from several numbers of people working for you in
:20:47. > :20:51.many cities around the world and you sold that business at the age of 50
:20:52. > :20:56.and you have bought brands and you own a beer company. I bought one
:20:57. > :21:03.brand, which would Plymouth gin, with two friends and we sold it. And
:21:04. > :21:08.about the same time, I started a brewery which I still own, Saint
:21:09. > :21:13.Peter's brewery. Is the theme here alcoholic beverages? I did have a
:21:14. > :21:17.certain interest in the subject! My latest is Male grooming. The beauty
:21:18. > :21:23.business. Yes, Andy chain of barbershops, which is going
:21:24. > :21:28.gangbusters and I have bigger brand owners. Real fun! So you sound like
:21:29. > :21:31.a serial entrepreneur. Thank you for coming. We appreciate your time,
:21:32. > :21:36.really interesting. Thank you. Carlos Ghosn, one of the most
:21:37. > :21:38.influential leaders in the global auto industry, made headlines a few
:21:39. > :21:40.weeks back, announcing he'd give up his role
:21:41. > :21:45.as Chief Rxecutive of Nissan. He remains chairman of the Japanese
:21:46. > :21:48.car maker, but the reshuffle is to allow him to focus on Nissan's
:21:49. > :21:51.alliances with Mitsubishi We caught up with Mr Ghosn
:21:52. > :22:00.at the Geneva Motor Show and asked about his new roles
:22:01. > :22:04.and responsibilities. On the 1st of April,
:22:05. > :22:12.I will be Chairman of Nissan. So when you say 'in your new role',
:22:13. > :22:18.I'm going to obviously be much more involved into the business
:22:19. > :22:24.in Renault, while in Nissan and Mitsubishi, I'm going to be more
:22:25. > :22:27.supporting the management team and guiding them for
:22:28. > :22:29.the growth of the company. But I feel good about what's going
:22:30. > :22:32.on at the level of the industry. I think we're going to
:22:33. > :22:35.have an environment - yes, competitive, yes,
:22:36. > :22:37.difficult - but it's a good environment because we're seeing
:22:38. > :22:41.growth and a lot of opportunities. What other business
:22:42. > :22:43.stories has the media been Joining us again is Richard Hunter,
:22:44. > :22:57.Head of Research, at Hello, Richard. We have been asking
:22:58. > :23:00.all morning, who is your most influential women in business, who
:23:01. > :23:04.you think is a shining light, what have you come up with? I think you
:23:05. > :23:09.would be hard-pressed to better Janet Yellen in the United States,
:23:10. > :23:14.and in terms of Europe, somebody like Christine the guard, head of
:23:15. > :23:44.the IMF. And in the UK, if you want rape from loving success
:23:45. > :24:08.Wall Street journal looks at the expense of problem of but a look at
:24:09. > :24:14.theMarch following Donald Trump's election as US President. Today,
:24:15. > :24:19.they are supposed to take a day without women's only have a sense of
:24:20. > :24:28.the cost of not having women in the economy. A lot of women cannot take
:24:29. > :24:32.off. The goal is to show the world what life would be like without
:24:33. > :24:40.them. The problem is, as the article says, the kind of executives, not
:24:41. > :24:45.difficult for them to go missing 24 hours, but at the other end of the
:24:46. > :24:52.food chain, as a's had they cannot afford to do. A nice idea, but might
:24:53. > :24:57.have limited success on that basis. Today is the day night he says it
:24:58. > :25:04.will shrink a high-performance huge up for Muslim athletes, for women
:25:05. > :25:10.who face barriers in sport, why has it taken until now to launch this? I
:25:11. > :25:15.totally agree. It is one of the more obvious things, you would have
:25:16. > :25:18.thought. And in terms of the design, they are making it super stretchy so
:25:19. > :25:25.it can be personalised. And with the Middle Eastern climate, it is one of
:25:26. > :25:28.them all breathable technologies, given the inevitable higher
:25:29. > :25:35.temperatures. But the question has to be, why so long? You have two
:25:36. > :25:38.daughters? What are they up to, their aspirations? One is travelling
:25:39. > :25:43.the world and she is in New Zealand. The other is at home developing
:25:44. > :25:50.applications to become a programmer, running internet companies with her
:25:51. > :25:51.other half. So maybe next year, I can mention her as well. Many
:25:52. > :26:11.thanks. It was a very mild start across
:26:12. > :26:17.Southern parts of the country this morning, but rather cloudy, damp,
:26:18. > :26:20.outbreak of light rain. Through the day, a 3-way split, Southern areas
:26:21. > :26:22.cloudy and damp,