12/05/2016 World Business Report

Now for the latest financial news with World Business Report.

The UK promises action as world leaders, financiers, and campaigners

Plus, out of the desert, a $2 trillion stock market giant.

The boss of Saudi Aramco tells us why now is the time to float.

We start in London where world leaders, financiers,

and campaigners are gathering for a major Anti-Corruption Summit.

UK Prime Minister David Cameron sparked a row on Wednesday after he

was recorded calling Nigeria and Afghanistan "fantastically corrupt."

But today it is the UK itself that is in focus over

its role in international corruption, as a destination for

money laundering, and through its overseas territories which include

Let's take a look at some of the details.

A letter this week by leading economists claims $170

billion a year are lost through tax dodging, with

Much of this money is channelled into British overseas territories,

More than a third of the world's tax havens are British.

Then there is London's property market.

An estimated 36,000 homes in the capital are owned

That is almost one in ten properties in the City

of Westminster, and almost as many in Kensington and Chelsea.

More than a third of them are owned by companies registered

Today, the UK will force companies owning or buying property to

The Prime Minister was questioned about the issue in Parliament.

Has the Prime Minister read the appeals from Nigerian campaigners

who say our efforts are sadly undermined if countries such as your

own are welcoming the corrupt to hide your ill gotten gains in car

dealerships, private schools, and anywhere else that will accept that

cash with no questions asked. One of the steps we are taking to make sure

that foreign companies that own UK property have to declare to the

beneficial owner is one of the ways we know plundered money cannot be

hidden in London. Cobus De Swardt is Managing Director

at Transparency International. We can't underestimate the role of

Britain when it comes to the global web of corruption and tax havens. It

is important this is happening in London. It is critical. One has to

commend the UK for setting out and admitting that it is indeed part of

the worldwide problem of corruption. What is critical is for

Britain to also lead the way to set the new agenda to fight corruption

around the world on a different path. Surely some of the signs we

are seeing are positive. To tackle the issue of property. To bring

beneficial ownership veiled in secrecy to more transparency. That

is positive. But it is not enough. Especially when you think about the

Northshore Havens. Sharing the information isn't going far enough.

The message seems to be positive. But the British Virgin Islands for

example are not here for this summit. What kind of message does

that sand for how effective these are regarding corruption? -- send.

It depends on the strength and commitment of the leaders. Of

course, the UK has to lead. Is actually, making sure that whatever

benefits Britain has had in the past because of corrupt money, that has

to be stopped. -- especially. Ultimately, one cannot say, and that

argument we hear a lot, especially with offshore territories, if return

was to close that money would go elsewhere. -- if Britain. That is

like saying if I did not steal your money someone else would. Britain

has a major benefit of corrupt money. The ones that suffered were

often the poor of the world. That is a major moral commitment that has to

be put into a concrete commitment to stop that. One of the particular

suggestions that is coming out of this summit is an increased

awareness and transparency of who owns what when it comes to the

London property market. Will that have the desired effect? That is an

important step. It doesn't go far enough. Clearly, corrupt money does

not only go into property, it also goes into the financial system.

While they are bringing a lot more transparency into property, it

doesn't go far enough. Though, it is important. Ultimately, what any

country should be doing, is to make sure that whatever money flows into

it and its financial system, it has a greater transparency. That means

that not only criminals, but terrorists' money, can be exposed.

Corruption is just one way of fuelling instability around the

world. We will have to leave it there. But thank you for that. And

now to Saudi There are plans to create

a $2 trillion stock market giant. When shares are sold

in state oil firm Saudi Aramco later this year it will immediately become

the world's most valuable company, almost four times bigger than

its nearest rival Apple. But why is Saudi selling off some

of its most prized assets? Our business editor Simon Jack has

been given rare access to the company and its Chief Executive,

and sent this report. One in every eight barrels

of crude oil comes from underneath This single plant produces more

than the entire North Sea. It's rare to be invited here

but the state-owned oil company and its chief executive, Amin

Nasser, is on a charm offensive. It's offering up a slice

of the world's most valuable company to try to encourage future foreign

investment in other industries. This is Shaybah, a south-eastern

outpost of Aramco's sprawling empire, which they now want to sell

a slice of to foreign investors. Do they want to sell the family

silver, change the oil regime and strategy and diversify the Saudi

economy after all these years? I think it is timely and overdue to

identify new resources, rely more on investment for additional streams

of revenue for the kingdom. Is that because of the arrival of US

shale? Is it because we are looking at

a future with fewer hydrocarbons? Are you worried that you have

so much of the stuff in the ground that one day you won't

be able to sell it? Yes, there are more energy resources

coming, electric car, renewables, but they are starting

from a small base, However, oil will continue to play

a major part for the long term. Near Aramco's headquarters

in Dhahran, people agreed that They graduated and have degrees

but they stay at home. And there are older men

like us who are retired, God willing, I want a job and a shop

and to get married and have kids. And later, after I retire,

I want my kids to be comfortable Make no mistake, diversifying

does not mean producing less oil. In fact, Aramco said it would

probably produce more this year than last, but why,

when it pushes global prices down? It doesn't, as it were,

matter whether they produce them at low prices today because they

are not saving them up, as it were, They continue to produce regardless

of the price because, in effect, you could regard their reserves

as infinite. So, no relief in sight

for competitors like the North Sea. The oil beneath

the desert will keep on coming. Let's go to Asia now where there

could be a rescue for Japanese carmaker, Mitsubishi,

which has been struggling since it admitted cheating on its

fuel efficiency figures for years. Rico Hizon is following

the story for us in Singapore. good morning. Good morning. Who is

the white knight riding to the rescue? Resources are saying that

Nissan could be the white knight. They are in advanced negotiations to

take one third in the scandal. It is worth around 1.8 billion US dollars.

If this deal indeed goes through, Nissan, the second-largest automaker

in Japan, would become the largest holder of the larger. So that would

give them more than a 15% stake. A French automaker owns 40%. They are

still discussing various matters including cooperation. But nothing

as of now has been decided. Hopefully we will have a decision

from both board by later today or tomorrow. -- boards. Thank you very

much. And here is the markets. The mode

overnight has been cautious. There was a rally in gold. Other metals

have in rallying as well. That is because of the weaker dollar. You

can see its effect on the yen at the moment. More coming up later. I will

see you then.