18/11/2013 World Business Report

Tripoli, after clashes in which dozens of people died. The militia

have three days to withdraw. Time for World Business Report. Boeing

makes almost 100 Ilium dollars in orders on day one of the Dubai

airshow. Politicians meet in Washington to discuss the future of

Bitcoin, as fears grow regulation won't prevent it from being used for

money`laundering and drug trafficking. Welcome to the

programme. This is World Business Report. In a moment, I will be

speaking with a Bitcoin expert, who will be testifying in the Senate

later. Airlines in the Gulf have placed a number of high value orders

and so far, it looks like America's Boeing is eating its archrival,

Airbus. Emirates placed a massive order of 150 of Boeing's new 777

mini jumbos. Another 109 of those aircraft were ordered by Etihad,

Qatar copy Mackellar ways and Lufthansa. That brings total ``

Qatar Airways. That brings total sales to over $91 billion. Airbus

has also done well. Emirates ordered 50 Airbus A380 aircraft. Etihad

ordered 87 Airbus aircraft in a deal worth $19 billion. And it doesn't

end there. Abu Dhabi's Etihad is also to become the first Gulf

carrier to have its brand flying between European destinations after

it bought a stake in Darwin Airline. The small airline is the seventh

carrier to which Etihad has taken an equity stake. It's the first that

has agreed to brand its own aircraft as Etihad Regional, thereby marking

a turning point in global aviation strategy. We spoke with the chief

executive of Etihad. Why does this deal makes sense? We have an equity

group. And that group is now starting to appear in aviation

jargon. And this is not the last time. For smaller airlines that we

will never operate, that are on the end of our network, we are

comfortable with their safety standards and management, we really

see this as a good scenario. Have you got your eye on other regional

airlines? Obviously, we would expect of regional carriers to come and

have a chat with us. What we are looking for is a strong management

team, stolid strategy `` solid strategy. What we cannot do is run

those airlines. That is what we want good people already working those

businesses to do, working with us. Your business strategy is very

different from your other rivals in the region. Emirates are 30 years

old and have a great strategy. We are ten years old. We have decided

to differentiate through partnership. 40 million Indian

people travel internationally every year, which transforms our position

over the next few months in India. We have done similarly with Virgin

Australia. For me, it is about how we get the right average airfare,

the right return from the asset, the right feed from markets. The rules

of business are changing in global aviation and we are at the

forefront. This market is worth over $5 trillion and each one is worth a

staggering $500. I talking about Bitcoin, the virtual currency that

is becoming increasingly intertwined with tales of bank robberies, drugs

and warlords. Today, it will be the topic of conversation in Washington.

The Homeland Security Committee is meeting to discuss Bitcoin. It is

still not fully regulated and now, academics and regulators are

desperate to find ways to gain better control over this shadowy

international currency. Bitcoin has been around for about

five years as a so`called cryptocurrency, meaning that the

details are highly encrypted and the sender and receiver remain

anonymously. It got notoriety after the US authorities swooped down upon

the website, Silk Road. Even though Bitcoin is achieving a degree of

legitimacy in the real world, being used increasingly, for example, by

businesses, it's that level of underworld activity that is

attracting the attention of the US government and potential regulation.

That would be bad news for Bitcoin as a currency because many people

are tracked to it's precisely because of the libertarian Utopian

ideal of it being a currency free from regulation.

Thank you for joining us. There are almost 12 million of these pieces of

currency in circulation, we are told. What more can you tell us

about how it works and why there has to be this conversation today in the

US. Senate to make sure it works in a legitimate manner? Thank you for

having me on the programme. Bitcoin is an open protocol network. It

happens across a public and transparent ledger. Bitcoin is a

very open network where anybody can see every transaction that happens.

What we are finding is not that it's a haven for illegitimate activity

but there are many legitimate uses. In fact, many federal agencies that

will be coming before the Senate today have pointed out, have gone to

great pains to point out, the many legitimate uses for Bitcoin that

exist. A merchant processor could... There are over 12,000

merchants signed up today. 12,000 legitimate ways to use Bitcoin from

just one company. And there are many companies out there. I would

challenge that it's a haven for illegitimate use. We think that the

bad actors tend to gather around centralised currency systems which

are easier to manipulate and hide information. Decentralised systems

like Bitcoin tend to attract the good actors out of this space.

However, the nature of how it works in the sense that there's a lot of

privacy there for the users of that coin is does mean that `` the users

of Bitcoin does mean it can be used in legitimately. The Silk Road

example is prime. Also the fact that the founder of the organisation dash

or founders, nobody knows who he or she is, why does there have to be

this level of privacy? Law`abiding citizens have good reason to have

privacy in their lives, especially in online transactions full of in

Washington, there has been a great deal of concern about privacy online

and individual rights and individual choice about privacy. However, we

should make a difference between privacy and a limited. In the

Bitcoin system, there is a degree of privacy but it's debatable right now

how much privacy you can actually have. Some studies have shown that

with even just for transactions on the block chain, the public ledger

that Bitcoin users, you can trace transactions and identify users.

That will change over time. If Bitcoin becomes some tool of mass

surveillance, we will see action taken by software engineers and

developers to increase privacy on the network. That's very likely to

happen. But not all private transactions are inherently

illegitimate. There are good reasons to be private in your transactions.

Thank you. This is fascinating. We appreciate your time. We will keep a

close eye on that Senate hearing today. The markets are having a

fairly good session, particularly in China and Hong Kong. Let's find out

why. Thank you for joining us. It's all about these changes that were

announced at the end of last week in China? The market reaction as we

begin a new trading week? Absolutely. Chinese shares listed in

Hong Kong reached a six`month high today. Investors are optimistic

about the potential impact of those extensive reforms announced over the

weekend and favourite amongst them was the announcement that one child

policy would be relaxed. That has put the focus squarely on all things

baby related. One infant formula producers surged more than 10%.

Consumer stocks have led the pack but other sectors have benefited as

well. Insurers of the back of changes in the financial, for

example. The decision to relax the system of household registration as

well. If more people can move to the cities and have access to services,

that means more housing, hospitals, schools and roads. One broker has

upgraded their evaluation of China from neutral to overloaded. The

devil is in the detail, however, and there are no guarantees this

enthusiasm will hold. Thank you. Proposals which could allow women to

become bishops will be discussed at the Church of England's rolling

cenote full Op officials will discuss plans to set up an

independent arbitrator. Women have been Anglican priests for almost 20

years. They say women bishops are long overdue. Proposals to create

women bishops were blocked last November by a minority of lay