31/07/2012 World Business Report


31/07/2012

Similar Content

Browse content similar to 31/07/2012. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

Hello. Welcome to World Business Report. The headlines: American

:00:24.:00:32.

Airlines may become illegal if they comply with EU laws. The fee will

:00:32.:00:37.

reveal its second quarter results and investors look for signs of a

:00:37.:00:45.

settlement with the US Department of Justice over the oil spill. In

:00:45.:00:55.
:00:55.:01:01.

Asia, Taiwan downgrades its growth Washington is preparing to ratchet

:01:01.:01:06.

up the pressure on the EU over rules that require airlines using a

:01:06.:01:12.

European airports to pay for their carbon emissions. The US Senate

:01:12.:01:17.

will hold a vote on Tuesday over the bipartisan bill that will make

:01:17.:01:22.

it illegal to comply with the EU law. The US State Department and

:01:22.:01:25.

the department of transportation are hosting a two-day meeting of at

:01:25.:01:34.

least a dozen countries opposed to European measures to curb emissions.

:01:34.:01:38.

From next April, airlines flying into European airports will be

:01:38.:01:45.

required by EU law to pay for cop and allowances to cut their

:01:45.:01:50.

emissions. This prospect has caused outrage amongst carriers and

:01:50.:01:55.

governments from outside the region for there has to be a strong for us

:01:55.:01:59.

back to lead the European governments know if they may be

:01:59.:02:04.

going a bridge too far. Everybody is trying to control the machines

:02:04.:02:10.

but it has to be done in a logical way, and you cannot just impose all

:02:10.:02:15.

kinds of high taxes in an industry that is still struggling. Airlines

:02:15.:02:21.

do not like the costs of complying with the's regulations, especially

:02:21.:02:28.

at a time of such extraordinary uncertainty -- with the EU's. There

:02:28.:02:36.

is also the issue of sovereignty. Why should an American airline

:02:36.:02:43.

taking off from an American airport have to pay for admission charges

:02:43.:02:48.

just because the flight ends in Europe? China and India have told

:02:48.:02:55.

their allies not to call parades with the new rules and in America

:02:55.:03:00.

Congress is considering introducing legislation that would ban airlines

:03:00.:03:07.

from complying. This to be some compromise at the international

:03:07.:03:13.

level. We all want the same goal, cleaner and greener skies. It may

:03:14.:03:18.

seem a little tedious but the place to resolve this is that the

:03:18.:03:23.

international level at the UN. the moment there is no sign of the

:03:23.:03:27.

EU backing down. Aviation is seen as one of the fastest-growing

:03:27.:03:33.

sources of the gases that cause climate change. You refuse the

:03:33.:03:38.

tougher rules and more expensive airfares as the price we have to

:03:38.:03:44.

accept for a greener and cooler planet.

:03:44.:03:49.

B P releases its earnings later today and they are likely to

:03:49.:03:55.

reflect the higher oil prices and lower output. There is a forecast

:03:55.:04:01.

of a 18% drop in profits for the first half of the year. There will

:04:01.:04:06.

come in $9.2 billion. This comes after a plunge after the second

:04:06.:04:13.

quarter. It is still suffering after a trilling ban after the oil

:04:13.:04:19.

spill. There is also a battle for a Russian state company entered the

:04:19.:04:26.

fray one week after the partner of BP said it wanted to extend its

:04:26.:04:30.

stakes. Plenty of information is buried in those numbers. I am

:04:30.:04:36.

joined by David Hunter from an energy company. Good morning. Let's

:04:36.:04:40.

start with the numbers. What are we expecting on the property loss

:04:40.:04:43.

front? There is going to be a reduction in compared to the second

:04:43.:04:52.

quarter last year. It will be close to 20%. They are likely to record a

:04:52.:05:02.

reduction in will production figures, mainly because they have

:05:02.:05:06.

seen eruption in oil price over the quarter, which has impacted on

:05:06.:05:14.

their figures. Let's stay with the idea of numbers. There is an issue

:05:14.:05:18.

over the Gulf of Mexico will spill and there is some talk that perhaps

:05:18.:05:25.

a settlement is close. -- oil spill. Are we talking about in excess of

:05:25.:05:35.
:05:35.:05:41.

$15 billion? b p would rather pay $15 billion as opposed to a

:05:41.:05:45.

settlement. I guess if they can settle around the middle it would

:05:45.:05:50.

at least draw a line under this for the company, allowing them to

:05:50.:05:56.

quantify the total cost and allow them to move on strategically.

:05:56.:06:01.

terms of moving on strategically, Les KK looker this other company.

:06:01.:06:10.

This has been a mixed venture for BP -- let's take a look. For BP,

:06:10.:06:19.

this company has a loss. Because it has been hugely honours and a

:06:19.:06:23.

positive for BP over-the- nine years with increasing litigation

:06:23.:06:28.

and falling out with their joint venture partners has meant that it

:06:28.:06:35.

has become difficult. If the heat can exit that business or can

:06:35.:06:39.

persuade the company to exit the business then they can move forward

:06:39.:06:49.
:06:49.:06:55.

-- BP. Also in terms of further exploration work. We may actually

:06:55.:07:01.

see the company coming in and taking shares, possibly with the

:07:02.:07:08.

stake in BP. It is quite confusing with all of those letters. Thank

:07:08.:07:15.

you for clarifying that. In Asia, more numbers, this time coming out

:07:15.:07:22.

of Taiwan. GDP figures, what were they like? Not good, as you can

:07:22.:07:28.

imagine. Taiwan is a major export reliant economy so no surprise it

:07:28.:07:33.

is reporting its economy retracted in the three months until June.

:07:33.:07:38.

There was a slowdown in the US and China and that has been weighing on

:07:38.:07:48.

export dependent countries like Taiwan. They had been expecting a

:07:48.:07:57.

slight grow from last year. It has cut its forecasts by a percentage

:07:57.:08:07.
:08:07.:08:07.

point, of Italy around 3%. It has cut its output for electronics and

:08:07.:08:14.

other aspects. China is a major trade partner for Taiwan and the

:08:14.:08:18.

growth there it is beginning to slow. It does not help it is

:08:18.:08:22.

beginning to report slower exports and coupled with the slowdown in

:08:22.:08:27.

domestic demand is creating a bleak picture. Some analysts are saying

:08:27.:08:32.

the words could be over. The European crisis is beginning to

:08:32.:08:39.

resolve -- the worst. China has taken several economy boosting

:08:39.:08:43.

measures. Thank you. Let's take a look at

:08:43.:08:47.

some of the other business news of the day for some nurses to united

:08:47.:08:52.

has said it plans to raise as much as $330 million in a share listing

:08:52.:09:01.

in New York. It said it will sell 16.7 million shares between $16.20

:09:01.:09:07.

dollars each. It can also reveal that the club was knocked out of

:09:07.:09:14.

the Champions League and the price of shares has gone down. It has a

:09:14.:09:22.

value of $2.23 billion. A meeting between the US Secretary

:09:22.:09:28.

General and the German Chancellor has boosted hopes of a resolve to

:09:28.:09:35.

the European crisis. They met ahead of a meeting with the European

:09:35.:09:39.

Central Bank. It is Europe which is the theme are dominating some of

:09:39.:09:45.

Download Subtitles

SRT

ASS