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