0:00:10 > 0:00:12You are with business life.
0:00:12 > 0:00:16You are with business life. Taking action over Russia, the British
0:00:16 > 0:00:19Government prepares its response to the nerve agent attack on a former
0:00:19 > 0:00:25spy. Live from London, that is our top story, Wednesday the 14th of
0:00:25 > 0:00:28March.
0:00:39 > 0:00:44Theresa May weighs up sanctions and seeks international support as
0:00:44 > 0:00:48Moscow ignores a deadline to explain how a highly dangerous weapon ended
0:00:48 > 0:00:53up on British streets. Also in the programme, some of the biggest names
0:00:53 > 0:00:58in the world of technology are paying tribute to the renowned
0:00:58 > 0:01:03British scientist Stephen Hawking, who has died at the age of 76.
0:01:03 > 0:01:10Despite a downbeat day in Asia, markets in Europe is mixed. Adidas
0:01:10 > 0:01:17one of the biggest movers to the upside and we will explain why. And
0:01:17 > 0:01:32a blooming idea. Canon Floom standout? And 1p and 2p coins could
0:01:32 > 0:01:36be scrapped. Australia and Sweden have done it. Would you like to see
0:01:36 > 0:01:41the end of copper coins, get in touch.
0:01:51 > 0:01:572p or not 2p, that is the question. One of the many we are asking today
0:01:57 > 0:02:01on business life. Welcome to the programme. Let's start with the
0:02:01 > 0:02:03British Prime Minister considering what action to take against Russia
0:02:03 > 0:02:08after failing to receive an explanation over how energy -- nerve
0:02:08 > 0:02:14agent thought to be Russian-made was used to poison a former spy. Russia
0:02:14 > 0:02:20has failed to meet a deadline to do so. They have denied any
0:02:20 > 0:02:29involvement. The backing of Donald Trump and the EU have also said
0:02:29 > 0:02:34Britain can count on its support. The trading relationship going back
0:02:34 > 0:02:42many years, with quite a bit. If you look at 2016, it came in as $40
0:02:42 > 0:02:45billion. Sanctions could hurt links, including with oil giant BP, for
0:02:45 > 0:02:53example, metals company EN. And money flowing into Premier League
0:02:53 > 0:03:03football clubs through Chelsea and Arsenal through Russian backers. The
0:03:03 > 0:03:11US and UN would have to do follow suit as they did when the annex on
0:03:11 > 0:03:16the Premier in 2016 happen. Further damaged by restrictions and
0:03:16 > 0:03:22sanctions, many remain in force. Freezing assets such as bank
0:03:22 > 0:03:26accounts and property. Travel bans and export on equipment that could
0:03:26 > 0:03:32be used by the oil industry or military. Russian diplomats could be
0:03:32 > 0:03:38expelled, cut off from the Swift system, international banking
0:03:38 > 0:03:45system. It is thought that is unlikely. What will happen, Ben?
0:03:45 > 0:03:56Philip is with me. With the business advisory firm GDW. Potential
0:03:56 > 0:04:01targets, when you are advising business, what are you telling them?
0:04:01 > 0:04:08Increased compliance risk. Let's look at the options. Balancing not
0:04:08 > 0:04:13hurting business, alienating the Russian population, hitting the
0:04:13 > 0:04:22Russian... Asset freezing on high-ranking officials. One has a
0:04:22 > 0:04:25flat overlooking the Ministry of Defence in London. Confiscate that,
0:04:25 > 0:04:31you can. Things haven't been sanctioned like banning Russian
0:04:31 > 0:04:37media. Like Russia Today. Could lead to a ban on media organisations like
0:04:37 > 0:04:43the BBC. Make it harder for companies to pass the due diligence
0:04:43 > 0:04:48test. Use the unexplained wealth orders to hit large properties owned
0:04:48 > 0:04:52by Russians in London. The list is long. The trick is to get it right
0:04:52 > 0:04:58without hurting UK business.Let's pick that time. Two things, one is
0:04:58 > 0:05:04how to approach the sanctions to have sufficient impact. And not to
0:05:04 > 0:05:15damage UK interest. Sanctions would need collaboration with the US?It
0:05:15 > 0:05:18is not there at the moment, collaboration. Lukewarm statements.
0:05:18 > 0:05:30We have seen lack of cohesion between UK and EU partners. I think
0:05:30 > 0:05:36what we had posed Premier has dissolved. It would be hard to build
0:05:36 > 0:05:41a coalition to impose broad new sanctions.What about protecting UK
0:05:41 > 0:05:44interests? We know business is intertwined. Russia trades with the
0:05:44 > 0:05:49UK. How do you impose sanctions that are not going to come back and hope
0:05:49 > 0:05:55to?You have to be surgical. Sanctions are an inconvenience for
0:05:55 > 0:06:00Russia. The drop in oil prices has been the biggest problem. If you go
0:06:00 > 0:06:04after Russians on sanctions you face a backlash from the Russian
0:06:04 > 0:06:08Government itself. Russian companies, UK companies in Russia,
0:06:08 > 0:06:14VP, possibly vulnerable to counter sanctions. They are preparing mirror
0:06:14 > 0:06:23measures. -- BP. There is a risk backlash from Russia that could hit
0:06:23 > 0:06:32UK and US companies.We will watch closely. You, Philip. Some comments
0:06:32 > 0:06:38coming from the European Parliament. The European Commissioner for trade,
0:06:38 > 0:06:43Cecilia, who was on the programme 80 weeks ago, talking to Parliament and
0:06:43 > 0:06:49said EU and US trade Representative is an intense dialogue at the moment
0:06:49 > 0:06:54about the proposed tariffs on steel and aluminium. The EU is looking for
0:06:54 > 0:06:58an extension for the carriers signed off by the White House last week.
0:06:58 > 0:07:03Australia has an exemption. The EU pushing hard to get some as well.
0:07:03 > 0:07:08The US trade representative due to publish details soon about how the
0:07:08 > 0:07:11exemptions might work. That is just coming through from the European
0:07:11 > 0:07:18Parliament. And a line related to the death of Stephen Hawking. We
0:07:18 > 0:07:22have had a comment from the Prime Minister Theresa May. She says,
0:07:22 > 0:07:26Stephen Hawking was a brilliant and extraordinary man, one of the
0:07:26 > 0:07:29greatest scientist of his generation whose courage consumer,
0:07:29 > 0:07:34determination to get the most from life was an inspiration. A common to
0:07:34 > 0:07:37there from Prime Minister Theresa May, talking about the death of
0:07:37 > 0:07:40Stephen Hawking announced this morning.
0:07:40 > 0:07:43Let's take a look at some of the other stories making the news.
0:07:43 > 0:07:45Sportswear giant Adidas says sales and profit will slow this year.
0:07:45 > 0:07:49The firm which has seen its shares fall 15% in the past six months,
0:07:49 > 0:07:52says it plans to buy back up to $3.7 billion worth of its shares
0:07:52 > 0:07:55over the next three years - that's almost 9% of its share
0:07:55 > 0:07:56capital.
0:07:56 > 0:08:06Last year operating profits grew to just over $163 million.
0:08:08 > 0:08:09The French Finance Minister says he'll take legal action
0:08:09 > 0:08:11against Google and Apple for what he called
0:08:11 > 0:08:12"abusive practices".
0:08:12 > 0:08:15In a radio interview, Bruno Le Maire said he would take
0:08:15 > 0:08:17action over the way the tech giants unilaterally impose prices
0:08:17 > 0:08:19and other contractual terms on software developers.
0:08:19 > 0:08:25Neither company has yet responded.
0:08:25 > 0:08:28And a gender pay row concerning the Queen -
0:08:28 > 0:08:30that's the fictional monarch.
0:08:30 > 0:08:34British actress Claire Foy, who played Queen Elizabeth
0:08:34 > 0:08:38in the Netflix drama The Crown, was paid less than her
0:08:38 > 0:08:41co-star Matt Smith, who played Prince Philip.
0:08:41 > 0:08:46The producers said it was partly because Matt Smith
0:08:46 > 0:08:49was better known at time of casting.
0:08:54 > 0:08:58More tributes to Stephen Hawking a little later. Coming in as you would
0:08:58 > 0:09:06expect from right around the world. Before that, news this morning from
0:09:06 > 0:09:10Cathay Pacific, Hong Kong flagship airline, first back-to-back annual
0:09:10 > 0:09:15losses since founded back in 1946. The airline revealed last year it
0:09:15 > 0:09:21made a loss of about 161 million US dollars. Suggested intense
0:09:21 > 0:09:30competition from local rivals is to blame. Felicia in Asia, the airline
0:09:30 > 0:09:39competition is pretty tough. Eating into profits
0:09:44 > 0:09:50I who survive the airline of the time.Taking a beating. Asia's
0:09:50 > 0:09:57biggest international airline. Double the amount it lost in 2016.
0:09:57 > 0:10:03The big reason is it is paying for one-way bets in fuel contracts. The
0:10:03 > 0:10:11largest expense for airlines. Has to do with not just premium carriers
0:10:11 > 0:10:14from the Middle East, Singapore airlines for example, but budget
0:10:14 > 0:10:19airlines. It was the only way for Chinese travellers to travel to the
0:10:19 > 0:10:24rest of the world but now the budget airlines and other carriers are
0:10:24 > 0:10:31expanding to other parts of Asia and the US. Overall, Cathay has seen an
0:10:31 > 0:10:34improvement in its overall business performance. Cut
0:10:38 > 0:10:39more covered a man.
0:10:43 > 0:10:53-- more cargo demand.
0:10:53 > 0:10:58There is Australia and Hong Kong. Jitters in Asia today. About the
0:10:58 > 0:11:04joys of the new Secretary of State, the concern he is much more on the
0:11:04 > 0:11:15same page as Donald Trump when it comes to tariffs as Rex Tillotson
0:11:15 > 0:11:22was. That was the sentiment in Asia. In Europe, all the main markets are
0:11:22 > 0:11:36higher. Some stocks doing well like Adidas. They have announced up 5%
0:11:36 > 0:11:44today in Europe. Now, Wall Street. On Wednesday, it is all about US
0:11:44 > 0:11:48shoppers. In January, the holiday hangover worse than many analysts
0:11:48 > 0:11:52expected as Americans chose to stay home instead of spending. The hope
0:11:52 > 0:11:58is that retail sales will recover in February after hitting an 11 month
0:11:58 > 0:12:05low last month. Car sales is a headwind. US car-maker said they saw
0:12:05 > 0:12:09sales decline in February. Partially due to the fact that interest rates
0:12:09 > 0:12:16for car loans have been rising. A big industry research firm said the
0:12:16 > 0:12:20February interest rates on loans for new cars should hit eight year high.
0:12:20 > 0:12:25That shows efforts by the US Federal Reserve to raise interest rates as
0:12:25 > 0:12:27the US economy continues to grow could finally be having the intended
0:12:27 > 0:12:44effect. Chief investment officer... Allsorts of data, today US retail
0:12:44 > 0:12:49sales will give us an indication. Yesterday, really sank when
0:12:49 > 0:12:58inflation report. Lower-than-expected wage growth. --
0:12:58 > 0:13:02sanguine inflation report. Some quite good news from the US. Now, we
0:13:02 > 0:13:10have trade friction, Donald Trump issues making markets volatile.The
0:13:10 > 0:13:16revolving door at the White House. The Secretary of State sacking by a
0:13:16 > 0:13:21tweet was shocking. We knew they didn't get on. The Pennsylvania
0:13:21 > 0:13:24result, the Democrat winning, a strong Republican seat in the run-up
0:13:24 > 0:13:30to the midterms. Mark its time to weigh up what this means?It comes
0:13:30 > 0:13:36down to what will happen with policy. Rex was a moderate voice.
0:13:36 > 0:13:42Now, more hardline. Stronger against Iran, for instance, trade
0:13:42 > 0:13:49protectionism stronger stance. Potential tariffs on Chinese
0:13:49 > 0:13:52imports, consumer goods, for example. Big news and that is why
0:13:52 > 0:13:58Asia was unsettled.So much uncertainty, what are you advising
0:13:58 > 0:14:03clients? How can you navigate?When managing client portfolios, what is
0:14:03 > 0:14:08the long-term picture looking like? The global economy is doing well. A
0:14:08 > 0:14:14lot is noise. Every year, the US comes out on new things on tariffs,
0:14:14 > 0:14:18calling China a currency manipulator. This is normal for
0:14:18 > 0:14:23markets. What is happening next, is the thing. We are keeping a steady
0:14:23 > 0:14:28ship and looking at the fundamentals.Chinese figures?
0:14:28 > 0:14:37Acceleration in at the group -- output growth. Really helpful to
0:14:37 > 0:14:46show the global economy is doing really well.More later in the
0:14:46 > 0:14:51programme from you. Including copper in our pockets or wallets. Down the
0:14:51 > 0:14:58back of the sofa? Charities would occasionally benefit from the odd
0:14:58 > 0:15:04bits of coins and change. A lot of you getting in touch they could
0:15:04 > 0:15:07potentially lose out. As promised, much more coverage on the news this
0:15:07 > 0:15:12morning that Stephen Hawking has died. All the tributes being paid to
0:15:12 > 0:15:22him on the BBC live page. A number of videos, talking about his
0:15:22 > 0:15:30greatest achievements. By Minister Theresa May paid tribute to what she
0:15:30 > 0:15:34describes as a brilliant and extraordinary mind. You can see.
0:15:34 > 0:15:39Right around the world, giving an indication of how many people he has
0:15:39 > 0:15:42touched. Pretty appropriate.
0:15:59 > 0:16:03Much more on the website.
0:16:03 > 0:16:04Still to come...
0:16:04 > 0:16:05The smell of success?
0:16:05 > 0:16:07We meet the woman behind a flower delivery service that's taking
0:16:07 > 0:16:11on the established players in a crowded market.
0:16:11 > 0:16:17You're with Business Live from BBC News.
0:16:26 > 0:16:28It's a tough time to be in the supermarket business,
0:16:28 > 0:16:30with rising costs and increased competition squeezing margins.
0:16:30 > 0:16:33But Morrisons, the UK's fourth largest supermarket,
0:16:33 > 0:16:38has announced an 11% rise in its full year profits.
0:16:38 > 0:16:41However, like many of its rivals, it is cutting jobs, with 1,500
0:16:41 > 0:16:42middle management roles set to go.
0:16:42 > 0:16:44Patrick O'Brien is UK Research Director at the market
0:16:44 > 0:16:50research firm Global Data.
0:16:50 > 0:16:55Patrick, what do you make of the numbers from Morrisons?I think
0:16:55 > 0:17:00Morrisons has had a good year. It has been on a good run now for about
0:17:00 > 0:17:06two years. It's its tenth quarter of positive like-for-like growth. David
0:17:06 > 0:17:13Potts has done a really good job in steering Morrisons.In terms of the
0:17:13 > 0:17:18output them, because there is this bitter rivalry between the likes of
0:17:18 > 0:17:23Morrisons, Tesco, Sainsbury's, etc, what does it say about what is
0:17:23 > 0:17:28ahead? It is restructuring with middle management going.It's a
0:17:28 > 0:17:32competitive environment. You have the big four, of which Morrisons is
0:17:32 > 0:17:37probably doing the best. It one Christmas ahead of Tesco,
0:17:37 > 0:17:43Sainsbury's and Asda. It's also competing with the discount shops
0:17:43 > 0:17:51like Aldi and liberal. Efficiencies need to be made and we have seen a
0:17:51 > 0:17:59lot of jobs go across the big four. Morrisons are cutting jobs in the
0:17:59 > 0:18:05store warehouse. They are looking to do automated ordering, so they don't
0:18:05 > 0:18:10require as many shop roles. Morrisons were quite late to be
0:18:10 > 0:18:15online game which set them back for a number of years. It seems they are
0:18:15 > 0:18:21finally on boards, but they always catch-up.They have been playing
0:18:21 > 0:18:25catch up before David Potts claiming they were very slow on the two areas
0:18:25 > 0:18:32of in supermarket retail, convenience and online. They have
0:18:32 > 0:18:35struggled, but since David has come in, they have rejig their strategy
0:18:35 > 0:18:41on convenience. They have a partnership with petrol station
0:18:41 > 0:18:46forecourts and they have also developed their online business in
0:18:46 > 0:18:52partnership with Amazon.Good to talk to you, Patrick. Thank you for
0:18:52 > 0:19:02your insight this morning. More details on Morrisons and the other
0:19:02 > 0:19:06companies reporting on our website.
0:19:06 > 0:19:13You're watching Business Live.
0:19:13 > 0:19:20The top stories. The Prime Minister is due to announce sanctions against
0:19:20 > 0:19:23Russia after the poisoning of a former spy.
0:19:23 > 0:19:32A quick look at how markets are faring.
0:19:32 > 0:19:36Some uncertainty around the world, particularly relating to the United
0:19:36 > 0:19:41States and China.
0:19:41 > 0:19:43And now let's get the inside track on flowers.
0:19:43 > 0:19:46The global flower industry is worth some $105 billion.
0:19:46 > 0:19:56But 80% of all cut flowers are bought by women.
0:20:00 > 0:20:06That surprises me because so many men will buy them as gifts. If you
0:20:06 > 0:20:11include the ones that are bought from a petrol station, it should be
0:20:11 > 0:20:14higher. You really are digging yourself a whole!
0:20:14 > 0:20:16But consumption habits are changing and instead of visiting
0:20:16 > 0:20:17the traditional florist, like with everything else,
0:20:17 > 0:20:19an increasing number order their flowers online.
0:20:19 > 0:20:21Floom is an online florist marketplace hoping to make
0:20:21 > 0:20:22the process more simple.
0:20:22 > 0:20:25I caught up with the boss Lana Elie, and asked her what she's
0:20:25 > 0:20:35doing differently.
0:20:38 > 0:20:52Sometimes it's a time issue. Also, ordering over the phone. There are
0:20:52 > 0:20:54so many elements when you are sending to different places it
0:20:54 > 0:21:00becomes difficult, so it's that the going on one platform, knowing they
0:21:00 > 0:21:02have been vetted and seeing a variety of styles from different
0:21:02 > 0:21:10florists.You make it sound easy, setting up a new firm, but how
0:21:10 > 0:21:15daunting is it?At no stage did I question whether it was going to be
0:21:15 > 0:21:22huge and I still don't. I have complete conviction in it and I get
0:21:22 > 0:21:30this question about fear a lot. Where it -- I always thought, why
0:21:30 > 0:21:37would this not work? To an extent it is a bit of insanity, but it pushes
0:21:37 > 0:21:42you through.You are essentially the middleman, you connect buyers with
0:21:42 > 0:21:47sellers.Where do you make money? It's not as if the customer is
0:21:47 > 0:21:52coming to us paying a commission on top of they are buying. They are
0:21:52 > 0:21:55paying the same they will pay if they went directly to an
0:21:55 > 0:22:02independent. For example, if you went to an independent and spend
0:22:02 > 0:22:07£30, without it would still be £30. We are sharing the margin there with
0:22:07 > 0:22:12the florist which is 20%.So because you are creating more business for
0:22:12 > 0:22:20the florist, they will take a cut on what they make?Exactly. They are
0:22:20 > 0:22:27aware that 20% is going to customer acquisition and the site. The more
0:22:27 > 0:22:32they sell, the higher quantities they will buy and the more they will
0:22:32 > 0:22:37save on wholesale.How do you stand up in a market like this?Probably
0:22:37 > 0:22:41content because I come from a content background. One of our first
0:22:41 > 0:22:48hires was a content creative person. We do video in-house, we should
0:22:48 > 0:22:53photography in-house, everything we do is about the content. Our website
0:22:53 > 0:22:57launch with a magazine section with it.Everything we do is about
0:22:57 > 0:23:01storytelling. What has been the biggest hurdle for you? You make it
0:23:01 > 0:23:06sound easy, but what has been the biggest challenge you have faced?I
0:23:06 > 0:23:13guess fundraising and hiring. I have hired before, but not in the way
0:23:13 > 0:23:19that you do when you hire someone for your own company. That took a
0:23:19 > 0:23:23lot to learn, how to hire well and find the right people in the first
0:23:23 > 0:23:27place, let alone then interview them. Funding is not something I
0:23:27 > 0:23:33have done before. We have done well, we've always got the money we needed
0:23:33 > 0:23:39at the right time. It's never really been a huge issue, but there have
0:23:39 > 0:23:43been moments of trying to figure out how to do five-year projections, all
0:23:43 > 0:23:46these things I have never experienced and I was a bit out of
0:23:46 > 0:23:53my depth. But now I have an incredible team and you don't feel
0:23:53 > 0:23:56those limitations any more. You hire the right people and you overcome
0:23:56 > 0:24:05those aspects.The founder and chief Executive of Floom speaking to me
0:24:05 > 0:24:11earlier. There's talk about some of the tributes coming in from
0:24:11 > 0:24:19Professor Stephen Hawking. Stephen Wozniacki said that he is above pure
0:24:19 > 0:24:28brilliance. The chief Executive of Microsoft said we lost a great one
0:24:28 > 0:24:35today. He will be remembered for his contributions to science. He made
0:24:35 > 0:24:40concepts and theories more accessible to the masses. He did
0:24:40 > 0:24:47definitely translate cosmology and physics to the masses.
0:24:47 > 0:24:55Sean has rejoined us. Let's talk about is the Treasury wanting to
0:24:55 > 0:25:00scrap copper coins. How would you feel about losing them?Well I have
0:25:00 > 0:25:08been sitting on my shelf. So there was this statistic that copper coins
0:25:08 > 0:25:15are only used once.Just once by millions of people though. No one
0:25:15 > 0:25:19was carried around because they are so heavy. Australia and Sweden have
0:25:19 > 0:25:24done it already. A lot of people are getting in touch. Chris says how
0:25:24 > 0:25:29will I paid the penny slots with my kids? A lot of you are worried about
0:25:29 > 0:25:32charities, whether they will lose out.
0:25:32 > 0:25:41Quite often the charity boxes by the till and when you pay say £2 99 for
0:25:41 > 0:25:49something, the penny goes in the pot. We all have piles of them. John
0:25:49 > 0:25:54says it's about time they were scrapped. Trevor says people
0:25:54 > 0:25:58normally use car payments now. Anything less than 50p goes in a
0:25:58 > 0:26:03coffee jar. Thank you for