09/11/2015 World Business Report


09/11/2015

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Those are the latest headlines from BBC World News.

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Now for the latest financial news with the World Business Report.

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Stealing more market share from the competition?

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EU ministers will have China in their cross-hairs when they meet

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later today to discuss the fate of Europe's embattled steel industry

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The Dubai Air show is underway, but this year, it's not all

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about the massive jetliner orders, it's about the Gulf states spending

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Welcome to World Business Report, I'm Aaron Heslehurst.

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In a minute we'll have the latest on a massive strike at German

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But first, EU ministers are due to meet later

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in Brussels to discuss the troubled steel industry in Europe.

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Britain's biggest steel maker, Tata, is now demanding that its suppliers

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sharply cut their prices as the turmoil in the industry deepens.

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Last month, the firm said it was cutting

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1200 jobs in the UK as steel prices fall around the world.

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As you can see here the price of the iron alloy has quite

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literally fallen through the floor over the past five years.

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Production is dominated by China, which makes almost half

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the world's steel with the EU lagging some way behind.

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But as growth in China's economy slows it has been

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Its steel exports were up by more than 50 percent last year

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while other major producers have flat lined.

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European producers say that glut in production is pushing the

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Thank you for coming in. This China steel, they have been making a lot.

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As their growth slows, they don't need it. They shifted abroad. It is

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cheap, but UK companies have been purchasing it. China has not been

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putting a gun to their head? Chinese imports to the UK have quadrupled in

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the last three years. The market is purchasing this cheap steel, but it

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is not just cheap steel. It is being dumped onto our market, it is

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against the PTO rules. The European Commission can do something about

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this unfair trade. The US have stepped in to protect their own

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industry, some other countries have done the same. They can act more

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quickly than Europe can? Much quicker, in the sense that in the

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EU, the European Commission takes about one year to do a formal

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investigation. It is thorough, but it is slower. In the US, it takes 45

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days to put on tariffs to stop that trade. We have heard recently that

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the British steelmakers are saying, if the EU doesn't act, what we are

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seeing in Britain you will see in Europe. Are they talking about

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shutting down the furnace plants? I think we will, yes. We talked about

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the price of steel plummeting, the market won't be able to sustain this

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price level without intervention for very long. We have seen that in the

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UK in the last six months, humming like 20% of our workforce are at

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risk of losing their jobs or have already. That will just increase

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unless we do something about it. Other trade in regions around the

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world have taken action, if they take action quicker we will see even

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more steel come here to Europe than we have already. It will be

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overwhelming, it really will be a tsunami of Chinese steel into the

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market. Is it important that Britain or other countries produce their own

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steel? Why not, if you can get it cheaper somewhere else could sell it

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is a foundation factor that feeds into many important supply chains -

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automotive, aerospace for example. The price increases, getting the

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steel, we do we get this steel from? Rather than producing it in an

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innovative way and making sure it fits into those supply chain. Just

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quickly, certain European governments favour a steelmaking

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industry compared to Britain. It is cheaper? Yes, absolutely. Thank you

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very much for joining us. We're off to Dubai now to have

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a look at its air show, In previous years, Dubai's airline,

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Emirates, has broken world records with

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the number of commercial jetliners But the airlines

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of the Gulf now have almost all the planes they need and Airbus has

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admitted that new orders at the show for its A380, the world's

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biggest aircraft, are unlikely. This year,

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it looks as though the focus will be This is what usually makes money at

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the Dubai airshow: Slick, shiny jetliners. This year, the emphasis

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is on something else. The whitest range of military aircraft ever

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bought to Dubai. Small wonder that arms spending in Middle Eastern

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countries such as Saudi Arabia is soaring. Interior, they have been

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bombing Islamic State. In Yemen, they have been fighting the Houthi

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militia. The budget climbed 17% for defence spending last year. I expect

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to see increases in things like weapons platforms, when they need to

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move people and equipment to and from various places. And precision

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weapons, they have been expanding weapons in the region because of the

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complex. You see an increase in demand for those. The two by a show

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will also feature a record number of flying displays of unmanned aerial

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vehicles, otherwise known as drones. This one is made by a

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British company and is being marketed to Middle Eastern security

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services. They can look over the hills, find out what is behind the

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next curve in the road. You can get quick operation back to the users so

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that they can make decisions based on the intelligence gathered data

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Dubai Airshow. The defence companies expect the Gulf to spend heavily to

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stock up on weapons to continue the current conflict. However, they are

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also running short of cash because of the low price of oil. So, to

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compensate, what they are doing is cutting back or postponing some of

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their more ambitious long-term defence projects.

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Well it's been a busy day so far on the Asian markets with a number

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Rico Hizon is in Singapore with all the details.

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Takata shares up more than 12 percent after heavy selling

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Olympus shares up by daily limit of about 17 percent at one point,

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after company reports 30 percent rise in April-September.

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China major stock indexes opened up on Monday after

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the securities regulators said it would allow initial public offerings

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That rose by about 2% on Monday. Companies can come to market within

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roughly two weeks. Exciting markets.

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In other news: German airline Lufthansa has confirmed that 113,000

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passengers will be hit by flight cancellations on Monday while cabin

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They said 929 flights from Frankfurt, Duesseldorf and Munich

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are being cancelled as the dispute moves into its third full day.

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Members of the UFO union are planning

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further strike action throughout the week at further airports.

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China saw imports drop for the twelfth month in a row

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in October giving further cause for concern over the Chinese economy.

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Imports by the world's biggest trader of goods fell 18.8%

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Don't forget you can get in touch with me and some of

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