08/03/2017 BBC Business Live


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This is Business Live from BBC News with Susannah Streeter


It's Budget Day in the UK with the Chancellor poised


to deliver an "upbeat" speech, but how much money has he got


Live from London, that's our top story on Wednesday, 8th March.


As the UK prepares to leave the European Union,


will the Treasury provide a Budget boost to cushion the blow?


We'll speak to an expert for her predictions.


Also in the programme, crossing borders and crossing lines!


Chinese Telecom giant ZTE has been handed a fine for violating


We'll be live in Asia for the latest.


This is the situation on the financial markets as they open in


Europe. Investors look ahead to the UK Budget.


What's the secret behind the world's most successful brands?


Is it simply a case of advertising spend or is there more to the story?


We'll speak to one of the industry's leading experts


It's International Women's Day so let us know who's your most


Perhaps it's the head of the world's most powerful Central Bank?


Or maybe it's Mary Barra, the boss of General Motors?


In a few hours time, the UK's Finance Minister


or Chancellor as we call him here, Phillip Hammond, will deliver


the country's final Budget before the Government triggers Article 50,


and Britain begins its negotiations to leave the European Union.


Despite the ongoing uncertainty over Brexit,


Philip Hammond received an eve of Budget boost


from the Organisation for Economic Co-operation


It now expects growth in the UK of 1.6% this year,


up from its previous estimate of 1.2%.


In theory this means more tax revenue for the Treasury


and more money flowing in to the Government's coffers.


Despite this, economists are not expecting a spending spree


when Mr Hammond announces the UK's fiscal plans for the coming year.


Instead, he's expected to put the additional funds to one side


in a Brexit war chest as Britain prepares for its divorce


Nevertheless, one area which may receive some more attention


are the so-called business rates paid on commercial property.


Despite the Government's reassurances that Britain


remains open for business, some companies will see


more than a 40% rise in their property rates.


To help cushion the blow, the Treasury has already


announced a $4.4 billion transitional relief fund.


Also there may be some extra money found for social care in England.


Hetal Mehta, Senior European Economist, Legal


and General Investment Management is with me.


Good morning. So, as ever, we're all trying to figure out what's in the


Budget as it were hours before he delivers his speech to Parliament.


What are your thoughts? So I think one of the key things is that the


economy has performed much better since, not just the referendum, but


even since the Autumn Statement we had last November. So the Chancellor


has a lot more wriggle room. The tax revenues have been higher so he


could use that, but I think he has been quite clear that he is unlikely


to go on a spending spree. He will keep that money in reserve. Brexit


still hasn't happened yet so if and when the economy does deteriorate


then at least the Government has got something up its sleeve at that


point in time. Is he wise to do that at this point, do you think? I think


so. I think, you might as well, given that the economy is better,


keep the money in reserve. We noted back in November that there is a


little bit of a discrepancy in terms of the projections further out so


the economy was expected to continue doing very well whilst the deficit


was going to narrow significantly. Whereas actually this extra money


could go to help smoothing that profile out and make the numbers


more credible. So he is bound to talk a lot about the state of the


economy being better than we all thought it would be, but the


uncertainty ahead because of Brexit. How uncertain is it in your view?


Are we any clearer at this point than we were say late summer of last


year or are we still as much in the dark? We have had a lot, there is a


range of outcomes being narrowed. After the referendum people were


questioning who will the Prime Minister be? Will it be Boris


Johnson? Could it be someone else? Will this trigger another election?


A lot of those outcomes have been narrowed, so some uncertainty has


been taken away, but we have very little clarity on what negotiating


stance of the EU will be going into the Brexit discussions. So in terms


of news about spending and which departments will get money, this


time, it is likely to be fairly small and token and many are


actually say he's storing up all the cash for a big splurge before the


next election which is kind of after the Brexit negotiations as well? The


timing is actually quite interesting. As you say, 2019, it's


when the UK is due to leave the EU and that would be the time that


typically governments do go on a spending spree one year ahead of an


election and particularly given the Prime Minister has talked a lot


about helping people who are just about managing. People who are being


hit by the inflation squeeze, we may see a few small measures there just


to alleviate that stress, but I think a big give away is further


down the line. All right, thank you very much indeed for sharing your


thoughts. And needless to say, we're going to be all over this today on


the BBC! Whether you like it or not! If you tune in to us, this is what


you will be getting online, on radio and on television. There is a lot of


reporting going on about the changes to business rates. That's caused a


backlash among many small businesses. They're going to see


their rates go up, but they have been promised some kind of


transitional relief. Keep it with us if you want to be across the UK


Budget. China posted its first monthly trade


deficit in three years in February as imports surged at their fastest


pace since early 2012, driven by its strong demand


for commodities from iron ore China's February exports


unexpectedly fell 1.3% from a year earlier,


but imports expanded 38.1 percent, Chinese telecom giant ZTE has been


fined $1.1 billion and will plead guilty to charges that it violated


US rules by shipping US-made It is as a result of negotiations


between the telecoms giant and US officials. It is the largest fine


imposed by a US Government in relation to breaking US sanctions.


Let me break down the numbers, ?900 z that's how much ZTE have to pay


right now. Another 300 million has been suspended for seven years


depending on how the company complies with the plea deal. ZTE is


accused of buying US components and putting them into ZTE equipment and


shipping them off to Iran and North Korea, it included routers,


microprocessors and servers. ZTE is accused to have bought the parts in


the US, these are restricted for export because of their potential


for military use. The Chinese company also sent about 283 of these


shipments to North Korea. On top of that, they lied to US officials


while the officials were investigating the company. ZTE does


say it acknowledges it made some mistakes and it is working prards z


towards improving its procedures. Back to you in London now. Thank


you. Insurers rose after Congress


introduced the Bill intended to replace the Affordable Care Act.


Let's look at Europe. The main stock markets fell on opening. Investors


are waiting, of course the UK Budget. Some more positive


production data from Germany did provide some reassurance after some


poor factory numbers came out yesterday causing concern about


perhaps brakes being put on Europe's largest economy.


Samira Hussain has the details about what's ahead on Wall Street Today.


Coming up on Wednesday we see just how robust hiring has been in the


private sector in the US when the ADP national employment report is


released. This is the precursor to the jobs report issued by the


Commerce Department and it often gives us sort of an idea of what we


will see on Friday when that latest jobs report is out. Now economists


believe the private employers will have added about 190,000 jobs in the


month of February after adding 246,000 jobs in January. The annual


shareholders meeting for the Walt Disney company takes place in


Denver. In February, the Chief Executive said he is open to


extending his term as the head of the company. Offering investors a


sign of potential stability at the media company as it reported a dip


in quarterly advertising revenue at ESPN. Now, remember ESPN is the big


money maker for Walt Disney. Joining us is Richard Hunter,


Head of Research, Wilson King Richard let me welcome you as the


first male on Business Live. That's not by design. That's how it is on


this programme on a daily basis. Richard, talking markets, of course,


it is Budget day in the UK. Are you going to be hanging on Hammond's


every word or is it not that big a deal today? I think generally


speaking what happens with the Budget, it has implication for


specific sectors usually for example, alcohol companies, tobacco


companies, house builders. The usual reaction? Usual reaction. In terms


of the macrostuff, the wider picture, it tends to be more of a


currency story than moving equity markets apart from those specific


sectors. I think it will be one that is going to be closely followed


because at the moment the market is scrambling for any clues as to what


Brexit might actually mean. The pound being at seven week lows. What


kind of currency movements might you expect? Currency market apart from


being the biggest in the world is something of a zero sum game. As the


dollar strengthens something else has got to weaken and sterling is


tending to be in the firing line because of this uncertainty around


the referendum. Also, the fact that markets are in a wait and see mode


anyway because of next week, the US Federal Reserve meeting. Most


believe rates will go up next week. I feel there is a bit of fear in


markets. The fact that this global rally that we have seen from


November last year when Donald Trump won the US election is perhaps


ending and therefore, what's going to happen next? Is it going to be a


small correction? A big crash? People are worried. The problem


we've got is the US markets, which, of course, have an impact on global


sentiment have been hitting record highs and a lot of that is basically


trying to anticipate the boost to the US economy, depending on what


Trump comes out. That's very well, but we have yet to have any real


detail in terms of tax cuts, infrastructure spending and so on.


So, what increasingly we are afinding, of course, we're kind of


balanced on a knife edge because there is a lot that needs to be


delivered now to catch up with the expectations that the markets have


already priced in. Richard will be back. He'll name his most


inspirational female leader in business. Do tell us yours. We will


hear from Richard. We will hear from you hopefully.


Still to come, what's the secret behind the world's


Is it simply a case of advertising spend or is there more to the story?


We'll speak to one of the industry's leading experts


You're with Business Live from BBC News.


Controversial security firm G4S has published their first set of full


year results since the riot in their Birmingham prison in 2016.


Revenues have risen 6.6% and profits are up 9.4%.


Theo Leggett is in our business newsroom.


You have been cumplging the numbers. Theo, what else do they show? Well,


these numbers, if you take away all the reputational issues facing G4S


they are looking good. This was the first increase in revenues for four


years for the company. Pretty healthy figures. Only increased by


1.5% in the UK. That's one of its weaker regions. Remember, this is a


colossal company. Where it is doing best is the United States where


revenues were up more than 12%. And pre-tax profits up around 13%. So


good there. The company says the improvement is largely down to a


restructuring effort which it launched three years ago which


included selling off non performing businesses, trying to win new


contracts well, while at the same time retaining existing contracts


and that does seem to have reaped rewards. But it is G4S, it is a


controversial company and what there doesn't seem to be any sign of in


the results is any mention of the Birmingham Prison riot last


December. You might remember the Justice Secretary Liz Truss said


that G4S would have to pay for the cost of introducing special crack


squads of officers who are brought in to quell the riot. There has been


controversy over its handling of children's services, some of its


detention centres. G4S in the process of goating rid of that


business. These results, they just show the financial figures which


look robust. The reputational problems still exist.


As ever, we give you no warning about this next question! So we're


asking today is stands out in business in terms of women leaders?


Who is that for you? Mary Barra.


There are women standing around, generally to make the cars look


good. But she has succeeded in a man's world.


Good for you, thanks for sharing. We have asked for your inspirational


women in business, send them on Twitter, a lot of stories on the


website and stories other than the Budget, this is about record sales


for Nintendo witch. Read all about it.


Our top story: In a few hours' time, the UK's Finance Minister -


or Chancellor, as we call him here - Phillip Hammond, will deliver


the country's final Budget, before the Government triggers


And Britain begins its negotiations to leave the European Union.


Despite the ongoing uncertainty over Brexit, Philip Hammond received


an eve-of-Budget boost from the Organisation for Economic


It now expects growth in the UK of 1.6% this year,


up from its previous estimate of 1.2%.


Philip Hammond is due to address Parliament in a few hours' time.


We'll have more coverage of the UK Budget both on-air and online.


Now, if you're old enough to cast your mind back at least 40 years,


you might be able to recall a time when the concept of "branding"


Yes, branding is more than just a name, it's now a whole industry,


covering everything from corporate strategy and design to the value


And it is, of course, everywhere - from the TV or smartphone you might


be watching this programme on, even to the name BBC itself.


And our next guest knows a thing or two about the concept.


In 1974, John Murphy founded what was then


the world's first name creation company, called Novabrand.


Five years later, it became Interbrand, as it moved


beyond coming up with names to create a whole brand


image for its clients, a story told in his new book.


That is certainly a brand name you have, with! How did it begin? You


started this name creation organisation and when was it that


you realised you could put a value on the brand itself? I was working


for Dunlop and I was desperate to get out and is to start my own


business. This was in the mid-19 70s. I had a problem at the Dunlop


finding an international name for a new product, new tyres. I thought if


I had that problem and nobody could help, the advertising agencies,


nobody, so I started this naming the business. We saw top names. We did


the trademark law and we added graphic design. And I started to


realise we were doing more than just being, what we might call


wordsmiths. We were creating things called brands. And the word brand


was little used. They were product managers in business, but not brand


managers. And I realised we were creating personality of the product.


And people like the advertising agencies, they were given this and


they had the job of communicating. We were at the start of the process,


we were brand creators. So at the time, even with the first to do


this. This is back in the 1970s, no internet, no social media, no means


of communication from that point of view. How did you get it out to


companies like Mars who became your clients at that time? It was mainly,


we spent hours with trade lists and we typed up lists and we photocopied


them and we sent mailshots out. And we did a lot of PR. We were very


nicely treated by the financial and the business press, but they all


thought we were a bit loopy. We were the funny slot. But there was always


somebody who had a serious problem, they had just launched a new


product. And the day they were launched, they got a writ from


somebody saying, the name you are using is ours, and they came to us


to solve their problem. Did you predict it could become as big and


important and industry as it is now? I did not have the slightest idea, I


just wanted to make a living and to survive at first. Increasingly, and


you that what we were doing was important and increasingly, this


sounds big headed, what the advertising industry was doing was


trivial. We were the ones at the start of the process, we were


creating the brand, their job was simply to think up some adverts. And


at the time, the city did not factor in the value of the brand in their


valuation of companies and their assets. No, the brands were simply


regarded as goodwill, there was this catchall phrase, goodwill. And we


came up and said, no, goodwill in the case of many companies is mainly


brand names, it is the brands, and we can value those and put a


monetary value on them. Your company started in the UK and expanded


globally and it went from several numbers of people working for you in


many cities around the world and you sold that business at the age of 50


and you have bought brands and you own a beer company. I bought one


brand, which would Plymouth gin, with two friends and we sold it. And


about the same time, I started a brewery which I still own, Saint


Peter's brewery. Is the theme here alcoholic beverages? I did have a


certain interest in the subject! My latest is Male grooming. The beauty


business. Yes, Andy chain of barbershops, which is going


gangbusters and I have bigger brand owners. Real fun! So you sound like


a serial entrepreneur. Thank you for coming. We appreciate your time,


really interesting. Thank you. Carlos Ghosn, one of the most


influential leaders in the global auto industry, made headlines a few


weeks back, announcing he'd give up his role


as Chief Rxecutive of Nissan. He remains chairman of the Japanese


car maker, but the reshuffle is to allow him to focus on Nissan's


alliances with Mitsubishi We caught up with Mr Ghosn


at the Geneva Motor Show and asked about his new roles


and responsibilities. On the 1st of April,


I will be Chairman of Nissan. So when you say 'in your new role',


I'm going to obviously be much more involved into the business


in Renault, while in Nissan and Mitsubishi, I'm going to be more


supporting the management team and guiding them for


the growth of the company. But I feel good about what's going


on at the level of the industry. I think we're going to


have an environment - yes, competitive, yes,


difficult - but it's a good environment because we're seeing


growth and a lot of opportunities. What other business


stories has the media been Joining us again is Richard Hunter,


Head of Research, at Hello, Richard. We have been asking


all morning, who is your most influential women in business, who


you think is a shining light, what have you come up with? I think you


would be hard-pressed to better Janet Yellen in the United States,


and in terms of Europe, somebody like Christine the guard, head of


the IMF. And in the UK, if you want rape from loving success


Wall Street journal looks at the expense of problem of but a look at


theMarch following Donald Trump's election as US President. Today,


they are supposed to take a day without women's only have a sense of


the cost of not having women in the economy. A lot of women cannot take


off. The goal is to show the world what life would be like without


them. The problem is, as the article says, the kind of executives, not


difficult for them to go missing 24 hours, but at the other end of the


food chain, as a's had they cannot afford to do. A nice idea, but might


have limited success on that basis. Today is the day night he says it


will shrink a high-performance huge up for Muslim athletes, for women


who face barriers in sport, why has it taken until now to launch this? I


totally agree. It is one of the more obvious things, you would have


thought. And in terms of the design, they are making it super stretchy so


it can be personalised. And with the Middle Eastern climate, it is one of


them all breathable technologies, given the inevitable higher


temperatures. But the question has to be, why so long? You have two


daughters? What are they up to, their aspirations? One is travelling


the world and she is in New Zealand. The other is at home developing


applications to become a programmer, running internet companies with her


other half. So maybe next year, I can mention her as well. Many


thanks. It was a very mild start across


Southern parts of the country this morning, but rather cloudy, damp,


outbreak of light rain. Through the day, a 3-way split, Southern areas


cloudy and damp,


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