24/09/2014 World Business Report

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

and World Business Report. The costs pile up at Air France as

the pilots strikes enters its tenth day and pilots are starting to sense

that victory could be within their grasp.

Plus China builds massive eco cities to house the millions expected to

move from the villages ` we visit one to find out why it's still

empty. Welcome to World Business Report.

I'm Sally Bundock. Also in the programme Starbucks is expanding in

Japan. Rico Hizon in Singapore will have the details. But first...

The strike by Air France pilots is now into its tenth day. And

following the street demonstrations seen in Paris on Tuesday, it seems

an end is still not in sight. The French Prime Minister Manuel Valls

has already warned that with losses of up to $20 million a day, if a

solution isn't found soon, then Air France's very future is in question.

Air France management has now said it will suspend its European

low`cost venture, which is the main point of contention, but the pilots

say they want it definitely scrapped. Hugh Schofield reports

from Paris. A friend of, you don't have to be

low paid to put on a good fight. Asked Mac `` in France. Shame, said

this woman. Pilots believe their case is strong. They stayed

suspending the low`cost venture is not enough. Suspending Transavia is

not enough. We don't want it. We want the off shoring of our jobs

withdrawn and never to be seen again. Transavia Europe is the idea

of Air France for scaling back the low`cost European market that it has

lost two other low`cost airlines. Pilate saith means worse conditions

for those who stay. On Monday, management agreed to suspend

Transavia Europe. The CEO said he could see no reason why pilots would

want to extend the strike. They had most of what they wanted, so he

asked, why go one? `` on? The pilots sensed weakness. The strike is

costing 20 million euros every day and the accumulation of losses means

there is growing pressure on both Air France and the French government

to bring it to a close. The unions know that and feel if they can hold

out for a few more days, whatever the inconvenience to passengers,

they will get all they want. If you are waking up in Europe or the UK,

you may be needing coffee. Your provider could be this one. US

coffee chain Starbucks is buying out its Japanese partner in a deal worth

$914m. The joint venture has been one of Starbuck's most profitable.

Rico Hizon is in our Asia Business hub in Singapore. Is it copy time

where you are? All day every day here in the newsroom. The Japanese

have had this relationship with Starbucks for almost 20 years now.

The first Starbucks store opened outside of North America in Tokyo

and since then, the coffee chain has opened over 1000 cafes in the

country and their profit margins are among the highest in the world

despite the sluggish Japanese economy. Japan is their second

biggest market in terms of sales and has some of their most profitable

cafes and Starbucks and her partner have been together since 1995.

Starbucks in the US will be buying the stake of the Japanese unit that

it does not get own. Taking full ownership will allow them other

outlets and they hope to complete the buyout by the end of the year ``

does not yet own. One hundred million Chinese are

expected to move to the cities by 2020, and that means building

sustainable urban centres is essential. And so ` six years ago `

the country teamed up with Singapore to build what's tipped to be the

world's largest Eco City. Barren wasteland has been turned into

apartment blocks. But with China's property downturn threatening to

take the broader economy with it, is it another case of building homes

for thousands, but with no`one to live in them?Ali Moore went to the

Eco City near the port city of Tianjin, to take a look.

As you drive across the bridge, there is a definite sense of

entering a different place. It is not so much the broad boulevards and

tree`lined sidewalks or the reminders that 20% of the city's

power will one day come from renewable energy. What is noticeable

is what is missing. The overwhelming question as you walk around this

city in the afternoon heat is where is everybody? The developers say

they are coming and there are 12,000 residents already here, just two

years ago there were virtually none. But that is a fraction of the

350,000 the Eco`City will eventually support. In the local market, there

is none of the usual bustle of food shopping and that the community

centre, there is no lineup to play pool. But for locals like this woman

and her friends, the environment is a big attraction. TRANSLATION: I

used to live in a city and the air quality was not great. Here it is

great. In a country notorious for polluted cities, this project is a

commitment by China to build a sustainable urban centre. The sheer

scale of the place makes it hard to replicate. 30 km?. It was planned to

be highly workable. This man is in charge of everything from water

quality to waste disposal. He injures everything is up to a green

standard `` ensures. One of the biggest challenges is balancing

everything. Do we go for the highest environmental targets or what the

market can support? Only what you can sell at the moment? That's

right. 60 `70% of the homes here are sold. On the commercial streets,

this woman has sold wine for the last two years and says more people

are moving in and it gets busier every year. The Eco`City is trying

to attract new residents just as China's property sector slows down

but the hope is that the promise of cleaner and greener acts as a buffer

against the headwinds. In other news. And prosecutors in

South Korea are investigating the Tesco`owned supermarket, Homeplus,

over allegations that its managers sold customers' private information

to insurance firms. Tesco, which has operations across Asia, said it was

co`operating with the probe into Homeplus, its biggest non`UK brand.

In a separate case, the retailing giant is under fire in the UK after

over`stating its half`year profit guidance.

India's Mars Orbiter Mission has successfully entered orbit around

the Red Planet on in its first attempt. Prime Minister Narendra

Modi was in the Indian Space Research Organisation's mission

control in south India, and proudly declared: "India has successfully

reached Mars. Congratulations to all, to the entire country...

History has been created today." Here are the markets to give you a

sense of how things are going. It is a mixed picture in Japan where we

are down half a percent. The dollar is all right. Something which came

across short `` not long ago is that Japanese ministers are consulting

with economists before their next insurance increase next month. ``

sales tax increase. There is concern about that that they are getting

advice `` but they are. The Labour leader, Ed Miliband, has

been mocked by his opponents after forgetting to mention the deficit or

immigration in his conference speech in Manchester yesterday. Mr Miliband

delivered the address mainly from memory, rather than with the help of

an auto`cue. Our political correspondent