14/07/2014 World Business Report

BBC News. Now for the latest financial news with Sally Bundock

and World Business Report. A radical makeover. Airbus is set to

revamp its ageing A330 wide body jet as it attempts to not lose market

share to Boeing's newer Dreamliner. Samsung temporarily stops business

with a Chinese supplier over child labourer fears adding that it would

sever ties with the supplier permanently if the allegations are

proven correct. A very warm welcome. A BRICS development ban is

said to be high on the agenda when the leaders of Brazil, Russia,

India, China and South Africa meet in Northern Brazil. But first... The

European planemaker Airbus is to revamp its popular A330 wide`body

passenger jet. The news is set to be confirmed in a few hours time at the

opening of the Farnborough Air Show and it comes as both Airbus and

Boeing battle with their biggest`ever backlog of undelivered

planes. We're live from the show all day today, to set the scene our

Europe business correspondent Nigel Cassidy sent this report.

Welcome to the Farnborough Air Show a celebration of all things

aerospace. Almost 100 planes will be taking part either in the air or on

static displays in the ground with 200,000 visitors expected. It is

sold out. When it comes to the big aeroplane makers, Boeing and Airbus,

things could be quite quiet when it comes to orders. They each have over

5000 warplanes then they can deliver. He components can fail and

components get cancelled. There is unfulfilled global demand for the

next generation of lighter jets with a longer range. The good news is

that Airbus chief have created a new leaner burning engine. The A330 is a

good solid aeroplane but it burns about 12% more fuel. If you could

make one with all those good things, the larger seeds, the

beautiful interior, but earned 14% less fuel, you would really have a

winner on your hands. That is the case for the A330 Neo. Capital costs

are roughly 25% lower. It is just as well for the makers and suppliers

that the economic slowdown in Asia and Latin America has not extended

to aerospace. All the larger continents are looking for larger

aircraft and so, as a result, civil and commercial aircraft is growing

exponentially. As a result, that is bringing along the entire supply

chain with it. Wherever you are in the world, what customers wanted

more than anything is fuel efficiency. That can be tricky if

you take Airbus. If you put in an order today for your A330 extra

wide`body plane, you could not expect delivery till 2021 and seven

you `` so you can see why they have decided to extend this model.

Samsung Electronics says it has suspended business with a Chinese

supplier it suspects of employing child labour. This comes less than a

week after a U.S. Watchdog report accused the supplier of using

under`aged workers. Rico Hizon is in our Asia business hub in

Singapore... What more can you tell us about

this? Samsung has found an illegal hiring process at this mainland

company which supplies the electronics giant with mobile phone

covers and parts. The US activist group Labour Watch says that it

found at least five child workers without contracts. Samsung

Electronics said that it would permanently and business with this

supplier if allegations are confirmed. It has said that it found

no child workers at this factory in three audits, the latest of which

was June the 25th. They demand that the suppliers adopt a hiring process

which includes face`to`face interviews and the use of banners to

prevent fake identification cards to ensure that no child labourers are

employed `` scanners. They have accused one of the suppliers of

underage workers at this facility but previously, they have found no

evidence of this. Samsung is currently leading the new

investigation. Thank you. Leaders from the BRICS emerging

economies ` those are Brazil, Russia, India, China and South

Africa will be meeting over the next few days in the north`east of

Brazil. Top of the agenda is the expected announcement of a BRICS

development bank that will rival the likes of the IMF and World Bank.

It's seen as a significant political step for the group of countries but

economically, what ties them together? Katy Watson is in Brazil

for us. This is just one of the 800 million

pairs of shoes that Brazil produces every year. As the third`largest

footwear maker in the world, it is a potentially lucrative industry

Brazilian exports. This company produces over 9 million pairs of

shoes at year and exports to 90 different countries but 90% of the

shoes that they make here remain in Brazil or in South America. Brazil

is one of the world's most closed economies as exports account for

just 13% of GDP. Its peers exports double that. China has made itself

the biggest trading partner of Brazil but is a threat in some

industries. For Brazilian shoes coming there one of our main

competitors for exports as we cannot compete with their prices but at the

same time, it is a big opportunity. We would be insane not to look at

them as a big market for us. Easler realisation of China's potential has

led to some calling Brazil protectionist, an allegation many

don't because they're. We're going through a stage in our development

where we need to protect our country because we are on the path to

development. That analysis is not accurate or helpful. Brazil have

higher labour costs than China although the differences can be a

good thing as the middle`class is growing and is high. You have to

find a niche in between low`cost production and very high`cost

production. In this middle stage, we can be very competitive. That is

what this company is doing. At the moment, just 2% of its exports go to

Asia and it is trying to focus on China and India as well. If it

succeeds, it will be a definite step in the right direction.

In other news... Chinese internet giant, Alibaba, has raised its

estimated valuation to $130 billion. That's up from $116 billion in its

earlier submission to the US Securities and Exchange Commission.

The company also gave more details about its controversial decision in

2011 to carve off its Alipay payments service. This comes just

weeks ahead Alibaba's expected listing on the New York Stock

Exchange. Chinese private equity firm, Hony

Capital, is buying Pizza Express, one of Britain's best known chain

restaurants for $1.5 billion. Pizza Express has more than 400

restaurants in the UK, with dozens more internationally including 22 in

China. It's said to be the biggest deal in the European restaurant

sector in the past five years. Financial markets today, it is a

brand`new trading week in Asia and they have started slightly higher

although you can see that there is a bit of a drop`off in Bombay. We will

concentrate on the Indian markets as the day progresses. As you can see,

in Hong Kong and Japan we are seeing some gains. A lot to keep an eye on

today. The Bank of Japan is starting a policy meeting, the European

Central Bank is outlining decisions later in Stroudsburg and Janet

Yellen will be giving testimony to Congress later this week. Many

thanks. We will take a look at the papers soon but first... The Church

of England's governing body will vote today on whether to allow women

to be bishops. The General Synod has previously rejected the idea. The

church's most senior bishop, the Archbishop of Canterbury, has said

he's "hopeful" the reform will be agreed. Our religious affairs

correspondent Robert