:00:02. > :00:12.abortion. Those are the latest headlines from BBC World News. Time
:00:12. > :00:14.
:00:14. > :00:19.now for the financial news. Here is Sally with World Business Report.
:00:19. > :00:23.Welcome. This is World Business Report. The headlines: A late night
:00:23. > :00:26.meeting in Europe gives us a more time to pay back its debts as the
:00:26. > :00:31.country's borrowing costs rise again.
:00:31. > :00:41.The battle over a vital mineral used in mobile phones and tablet
:00:41. > :00:42.
:00:42. > :00:46.computers. Europe, the US and Japan take on China.
:00:46. > :00:52.It was another late night for eurozone finance ministers as they
:00:52. > :00:55.thrashed out an agreement to help Spain's banks. They agreed to hand
:00:55. > :00:59.over 30 billion euros this month in case of financial emergency as well
:01:00. > :01:04.as giving Spain more time to bring down its deficit. It comes as the
:01:04. > :01:12.country's borrowing costs soared to dangerously high levels, above 7%
:01:12. > :01:22.for ten-year bonds. We endorsed the extension of the
:01:22. > :01:22.
:01:23. > :01:32.debt alone for the correction of the excessive deficit by one year.
:01:32. > :01:37.This was based on effective action taken and the significantly
:01:37. > :01:45.worsening situation in Spain and its impact on the situation.
:01:45. > :01:50.Jane Foley is a senior currency strategist at Rabobank. You. --
:01:50. > :02:00.good to see. At last we have Sunday Taliban how Spanish fans will be
:02:00. > :02:03.
:02:03. > :02:07.helped out. -- we have details about how Spanish banks. It was
:02:07. > :02:11.supposed to be in existence now but there have been to tales -- delays
:02:11. > :02:16.particularly with Germany. They want to go through the detail
:02:16. > :02:21.before putting it into law in Germany. If the BSM is up there
:02:21. > :02:23.will the money come from? We have heard that they are going to
:02:23. > :02:29.frontrunner about 30 billion from the European government. It is not
:02:29. > :02:35.clear how that money will be given to Spain. It will go up to an
:02:35. > :02:38.entity within Spain. It is a bank that is there to deal with the
:02:38. > :02:42.backing situation. We'll get a little bit of money up front
:02:42. > :02:46.quickly. That money is there in case of emergency, as they have put
:02:46. > :02:54.it, and critically, but DEC does not go on the Spanish government's
:02:55. > :02:59.balance sheet. -- that debt. It is unclear whether the 30 billion will
:02:59. > :03:03.go on their books for now. But afterwards when the E S N is set up
:03:03. > :03:07.the money will be funnelled directly from the new bail-out fund
:03:07. > :03:10.straight to the Spanish banks and therefore avoid going on the
:03:10. > :03:17.government's books. That was the deal laid out a few weeks ago. That
:03:17. > :03:21.is what will happen in the future. The bail-out fund is not there. For
:03:21. > :03:25.the time being we may see these funnelled into the government but
:03:25. > :03:29.retrospectively they will take it off their books. Give us a sense of
:03:29. > :03:33.where we are now. We had the rate cut from their European Central
:03:33. > :03:37.Bank last week. The markets reacted favourably to that. We have had
:03:37. > :03:43.this deal overnight. Where are we now? We are still under pressure.
:03:43. > :03:48.This deal in a way had to come. We are seeing Spanish borrowing costs
:03:48. > :03:53.back over 7%. That is a measure of market stress. It is a measure of
:03:53. > :03:56.investors saying, we cannot wait any longer. We are worried Spain
:03:56. > :03:59.may need a fully-fledged government bail-out, in which case you would
:03:59. > :04:06.see the money going into the government and hopefully this will
:04:06. > :04:09.buy some time. Thank you. Jane will newspapers in five minutes. But
:04:10. > :04:13.more business news. A threatened strike from oil
:04:13. > :04:17.workers in Norway has been called off after the Government used
:04:17. > :04:22.emergency measures to intervene. Staff had threatened to shut down
:04:22. > :04:26.today as a result over a dispute over pay and pensions. But the
:04:26. > :04:30.Labour Ministry stepped in at the 11th hour. It said it was in the
:04:30. > :04:33.interest of the country to use the om
:04:33. > :04:36.the aluminium firm Alcoa, the largest in the US, have kicked off
:04:36. > :04:39.the earnings season there. It posted an operating profit of $61
:04:39. > :04:48.million after a jump in orders from car and aerospace firms. The
:04:48. > :04:51.numbers were slightly better than The European Union, United States
:04:51. > :04:53.and Japan bring a complaint to the World Trade Organisation today.
:04:53. > :04:59.They allege China is restricting exports of so-called rare earth
:04:59. > :05:02.metals and that distorts the global economy. Rare earth metals are used
:05:02. > :05:06.to make high technology devices and the restrictions make it more
:05:06. > :05:15.expensive to make such goods outside China. So who will win the
:05:15. > :05:20.case? Rare earth levels may not be something you would think about on
:05:20. > :05:25.a daily basis but are crucial for making hi-tech gadgets, from mobile
:05:25. > :05:30.phones to missiles. China produces 97% of the world's supply. The
:05:30. > :05:34.country is set out put caps and export quotas on the valuable
:05:34. > :05:36.research which has angered other nations. By restricting the respite
:05:36. > :05:40.of rare earth metals internationally China makes it
:05:40. > :05:44.easier for companies wanting to make phones and computers and hi-
:05:44. > :05:49.tech devices inside its borders. Correspondingly, it also makes it
:05:49. > :05:53.more expensive for companies wanting to do the same overseas.
:05:53. > :05:58.Because the quotas make it cheaper to make devices like iPads in China,
:05:58. > :06:06.the United States, EU, and Japan, today are lodging a complaint with
:06:06. > :06:15.the WTO. They beat China's control over that markets as potentially
:06:15. > :06:21.dangerous. -- nave view. They're such important metals to everyday
:06:22. > :06:25.life in the 21st century. making rare earth metals is an
:06:25. > :06:29.environmentally damaging business. China says that other countries
:06:29. > :06:38.could produce their own. 82 not to because it is so hazardous and
:06:38. > :06:41.produces toxic waste, some of which is radioactive. -- they choose not
:06:41. > :06:45.to. This doctor is professor of politics at London School of
:06:46. > :06:51.Economics. She watches the way it - - World Trade Organisation and its
:06:51. > :06:54.decisions. It is complicated. It is important to note that China was
:06:55. > :07:00.ruled against in a similar case earlier this year. So the chances
:07:00. > :07:03.are, China will probably lose this case. China is taking a calculated
:07:03. > :07:08.risk in deciding to move forward with the dispute and litigate the
:07:08. > :07:12.process. That would be good news for all multinationals, like the
:07:12. > :07:17.makers of hybrid cars, which need rare earth metals in their
:07:17. > :07:25.batteries. But it may be premature to get too excited. The WTO will
:07:25. > :07:28.take up to one year to make ruling. It is -- It's early days for new
:07:28. > :07:31.plane orders from the giant Farnborough Airshow. But so far its
:07:31. > :07:35.Boeing in the lead with an order for 75 of its forthcoming fuel-
:07:35. > :07:38.saving 737 Max. Last year at the Paris Airshow the firm fell behind
:07:38. > :07:41.arch rival Airbus in overall sales. But the new chief of Airbus seemed
:07:41. > :07:49.to concede when he spoke to World Business Report that it won't be a
:07:49. > :07:54.bumper Farnborough for the European plane maker.
:07:54. > :08:01.This time last year Airbus had a fabulous Paris airshow
:08:01. > :08:06.consolidating its number one size
:08:06. > :08:11.size aircraft. But now the smart money says that Boeing is answering
:08:11. > :08:20.back. It is selling its 737 Max, which will be its answer to the A
:08:20. > :08:24.320. They also have a new pilot. This year we will have a good show.
:08:24. > :08:33.We believe we will get decent orders which will help us achieve
:08:33. > :08:37.our target this year, which is 650 new orders. That means more than
:08:37. > :08:41.the 570 aircraft we are about to deliver. Both your competitor and
:08:41. > :08:45.yourself have had a lot of delays, reputational issues. How can you
:08:45. > :08:51.deliver on all of those orders, which are terribly important for
:08:51. > :08:56.the customers who hate to be kept waiting? We need to go step by step.
:08:56. > :09:02.We need to be very close to the supply chains. They sometimes
:09:02. > :09:08.struggled to increase the production rate. We are increasing
:09:08. > :09:13.by 5% the production rate this year. We could do more. On the new
:09:13. > :09:17.developments, clearly what counts is to have matured technologies,
:09:18. > :09:23.and not to rush to much to the next step. This is a paradox. But if you
:09:23. > :09:27.go too fast you miss the end Garbett, which is to deliver
:09:27. > :09:35.aircraft to the Allies. -- end target. We have learned that from
:09:35. > :09:39.the past. We're very close to our supplies. We support them when
:09:39. > :09:44.necessary including Siv -- including financially sometimes. We
:09:44. > :09:49.want them to be part of the venture and to be able to deliver to us
:09:49. > :09:54.what we need to produce the aircraft. The markets today were up
:09:54. > :09:58.a little bit on that news of Booval Spanish banks. But that did not
:09:58. > :10:06.last long. I'm afraid to say we have our Nine News dampening trade
:10:06. > :10:12.today. Not least news coming from China. -- we have other news. Today
:10:12. > :10:19.we have got imports in China. They increased 6.3% from a year earlier
:10:19. > :10:24.in the last month. But people were expecting 11%. That is significant.
:10:24. > :10:28.Also volumes are very thin in Japan in particular. The Japanese central
:10:28. > :10:33.bank is meeting in a few days to decide on any stimulus for the