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Now for the latest financial news with World Business Report. | :00:00. | :00:16. | |
The UK promises action as world leaders, financiers, and campaigners | :00:17. | :00:19. | |
Plus, out of the desert, a $2 trillion stock market giant. | :00:20. | :00:29. | |
The boss of Saudi Aramco tells us why now is the time to float. | :00:30. | :00:40. | |
We start in London where world leaders, financiers, | :00:41. | :01:00. | |
and campaigners are gathering for a major Anti-Corruption Summit. | :01:01. | :01:02. | |
UK Prime Minister David Cameron sparked a row on Wednesday after he | :01:03. | :01:05. | |
was recorded calling Nigeria and Afghanistan "fantastically corrupt." | :01:06. | :01:07. | |
But today it is the UK itself that is in focus over | :01:08. | :01:10. | |
its role in international corruption, as a destination for | :01:11. | :01:12. | |
money laundering, and through its overseas territories which include | :01:13. | :01:14. | |
Let's take a look at some of the details. | :01:15. | :01:19. | |
A letter this week by leading economists claims $170 | :01:20. | :01:21. | |
billion a year are lost through tax dodging, with | :01:22. | :01:23. | |
Much of this money is channelled into British overseas territories, | :01:24. | :01:27. | |
More than a third of the world's tax havens are British. | :01:28. | :01:42. | |
Then there is London's property market. | :01:43. | :01:43. | |
An estimated 36,000 homes in the capital are owned | :01:44. | :01:45. | |
That is almost one in ten properties in the City | :01:46. | :01:49. | |
of Westminster, and almost as many in Kensington and Chelsea. | :01:50. | :01:51. | |
More than a third of them are owned by companies registered | :01:52. | :01:54. | |
Today, the UK will force companies owning or buying property to | :01:55. | :02:12. | |
The Prime Minister was questioned about the issue in Parliament. | :02:13. | :02:16. | |
Has the Prime Minister read the appeals from Nigerian campaigners | :02:17. | :02:23. | |
who say our efforts are sadly undermined if countries such as your | :02:24. | :02:29. | |
own are welcoming the corrupt to hide your ill gotten gains in car | :02:30. | :02:34. | |
dealerships, private schools, and anywhere else that will accept that | :02:35. | :02:39. | |
cash with no questions asked. One of the steps we are taking to make sure | :02:40. | :02:44. | |
that foreign companies that own UK property have to declare to the | :02:45. | :02:48. | |
beneficial owner is one of the ways we know plundered money cannot be | :02:49. | :02:53. | |
hidden in London. Cobus De Swardt is Managing Director | :02:54. | :02:55. | |
at Transparency International. We can't underestimate the role of | :02:56. | :03:06. | |
Britain when it comes to the global web of corruption and tax havens. It | :03:07. | :03:10. | |
is important this is happening in London. It is critical. One has to | :03:11. | :03:18. | |
commend the UK for setting out and admitting that it is indeed part of | :03:19. | :03:21. | |
the worldwide problem of corruption. What is critical is for | :03:22. | :03:30. | |
Britain to also lead the way to set the new agenda to fight corruption | :03:31. | :03:33. | |
around the world on a different path. Surely some of the signs we | :03:34. | :03:39. | |
are seeing are positive. To tackle the issue of property. To bring | :03:40. | :03:44. | |
beneficial ownership veiled in secrecy to more transparency. That | :03:45. | :03:56. | |
is positive. But it is not enough. Especially when you think about the | :03:57. | :04:01. | |
Northshore Havens. Sharing the information isn't going far enough. | :04:02. | :04:08. | |
The message seems to be positive. But the British Virgin Islands for | :04:09. | :04:13. | |
example are not here for this summit. What kind of message does | :04:14. | :04:18. | |
that sand for how effective these are regarding corruption? -- send. | :04:19. | :04:27. | |
It depends on the strength and commitment of the leaders. Of | :04:28. | :04:33. | |
course, the UK has to lead. Is actually, making sure that whatever | :04:34. | :04:40. | |
benefits Britain has had in the past because of corrupt money, that has | :04:41. | :04:48. | |
to be stopped. -- especially. Ultimately, one cannot say, and that | :04:49. | :04:52. | |
argument we hear a lot, especially with offshore territories, if return | :04:53. | :04:57. | |
was to close that money would go elsewhere. -- if Britain. That is | :04:58. | :05:03. | |
like saying if I did not steal your money someone else would. Britain | :05:04. | :05:07. | |
has a major benefit of corrupt money. The ones that suffered were | :05:08. | :05:14. | |
often the poor of the world. That is a major moral commitment that has to | :05:15. | :05:18. | |
be put into a concrete commitment to stop that. One of the particular | :05:19. | :05:24. | |
suggestions that is coming out of this summit is an increased | :05:25. | :05:29. | |
awareness and transparency of who owns what when it comes to the | :05:30. | :05:32. | |
London property market. Will that have the desired effect? That is an | :05:33. | :05:37. | |
important step. It doesn't go far enough. Clearly, corrupt money does | :05:38. | :05:43. | |
not only go into property, it also goes into the financial system. | :05:44. | :05:50. | |
While they are bringing a lot more transparency into property, it | :05:51. | :05:55. | |
doesn't go far enough. Though, it is important. Ultimately, what any | :05:56. | :06:00. | |
country should be doing, is to make sure that whatever money flows into | :06:01. | :06:03. | |
it and its financial system, it has a greater transparency. That means | :06:04. | :06:10. | |
that not only criminals, but terrorists' money, can be exposed. | :06:11. | :06:15. | |
Corruption is just one way of fuelling instability around the | :06:16. | :06:18. | |
world. We will have to leave it there. But thank you for that. And | :06:19. | :06:22. | |
now to Saudi There are plans to create | :06:23. | :06:30. | |
a $2 trillion stock market giant. When shares are sold | :06:31. | :06:33. | |
in state oil firm Saudi Aramco later this year it will immediately become | :06:34. | :06:36. | |
the world's most valuable company, almost four times bigger than | :06:37. | :06:38. | |
its nearest rival Apple. But why is Saudi selling off some | :06:39. | :06:41. | |
of its most prized assets? Our business editor Simon Jack has | :06:42. | :06:44. | |
been given rare access to the company and its Chief Executive, | :06:45. | :06:47. | |
and sent this report. One in every eight barrels | :06:48. | :06:50. | |
of crude oil comes from underneath This single plant produces more | :06:51. | :06:59. | |
than the entire North Sea. It's rare to be invited here | :07:00. | :07:07. | |
but the state-owned oil company and its chief executive, Amin | :07:08. | :07:10. | |
Nasser, is on a charm offensive. It's offering up a slice | :07:11. | :07:13. | |
of the world's most valuable company to try to encourage future foreign | :07:14. | :07:15. | |
investment in other industries. This is Shaybah, a south-eastern | :07:16. | :07:24. | |
outpost of Aramco's sprawling empire, which they now want to sell | :07:25. | :07:27. | |
a slice of to foreign investors. Do they want to sell the family | :07:28. | :07:30. | |
silver, change the oil regime and strategy and diversify the Saudi | :07:31. | :07:35. | |
economy after all these years? I think it is timely and overdue to | :07:36. | :07:37. | |
identify new resources, rely more on investment for additional streams | :07:38. | :07:41. | |
of revenue for the kingdom. Is that because of the arrival of US | :07:42. | :07:43. | |
shale? Is it because we are looking at | :07:44. | :07:52. | |
a future with fewer hydrocarbons? Are you worried that you have | :07:53. | :07:59. | |
so much of the stuff in the ground that one day you won't | :08:00. | :08:03. | |
be able to sell it? Yes, there are more energy resources | :08:04. | :08:06. | |
coming, electric car, renewables, but they are starting | :08:07. | :08:08. | |
from a small base, However, oil will continue to play | :08:09. | :08:10. | |
a major part for the long term. Near Aramco's headquarters | :08:11. | :08:23. | |
in Dhahran, people agreed that They graduated and have degrees | :08:24. | :08:25. | |
but they stay at home. And there are older men | :08:26. | :08:38. | |
like us who are retired, God willing, I want a job and a shop | :08:39. | :08:41. | |
and to get married and have kids. And later, after I retire, | :08:42. | :08:50. | |
I want my kids to be comfortable Make no mistake, diversifying | :08:51. | :08:53. | |
does not mean producing less oil. In fact, Aramco said it would | :08:54. | :08:59. | |
probably produce more this year than last, but why, | :09:00. | :09:02. | |
when it pushes global prices down? It doesn't, as it were, | :09:03. | :09:06. | |
matter whether they produce them at low prices today because they | :09:07. | :09:08. | |
are not saving them up, as it were, They continue to produce regardless | :09:09. | :09:12. | |
of the price because, in effect, you could regard their reserves | :09:13. | :09:25. | |
as infinite. So, no relief in sight | :09:26. | :09:26. | |
for competitors like the North Sea. The oil beneath | :09:27. | :09:29. | |
the desert will keep on coming. Let's go to Asia now where there | :09:30. | :09:31. | |
could be a rescue for Japanese carmaker, Mitsubishi, | :09:32. | :09:37. | |
which has been struggling since it admitted cheating on its | :09:38. | :09:38. | |
fuel efficiency figures for years. Rico Hizon is following | :09:39. | :09:41. | |
the story for us in Singapore. good morning. Good morning. Who is | :09:42. | :09:54. | |
the white knight riding to the rescue? Resources are saying that | :09:55. | :10:02. | |
Nissan could be the white knight. They are in advanced negotiations to | :10:03. | :10:11. | |
take one third in the scandal. It is worth around 1.8 billion US dollars. | :10:12. | :10:19. | |
If this deal indeed goes through, Nissan, the second-largest automaker | :10:20. | :10:23. | |
in Japan, would become the largest holder of the larger. So that would | :10:24. | :10:32. | |
give them more than a 15% stake. A French automaker owns 40%. They are | :10:33. | :10:42. | |
still discussing various matters including cooperation. But nothing | :10:43. | :10:47. | |
as of now has been decided. Hopefully we will have a decision | :10:48. | :10:50. | |
from both board by later today or tomorrow. -- boards. Thank you very | :10:51. | :10:54. | |
much. And here is the markets. The mode | :10:55. | :11:09. | |
overnight has been cautious. There was a rally in gold. Other metals | :11:10. | :11:16. | |
have in rallying as well. That is because of the weaker dollar. You | :11:17. | :11:21. | |
can see its effect on the yen at the moment. More coming up later. I will | :11:22. | :11:23. | |
see you then. | :11:24. | :11:32. |