:00:24. > :00:32.Hello. Welcome to World Business Report. The headlines: American
:00:32. > :00:37.Airlines may become illegal if they comply with EU laws. The fee will
:00:37. > :00:45.reveal its second quarter results and investors look for signs of a
:00:45. > :00:55.settlement with the US Department of Justice over the oil spill. In
:00:55. > :01:01.
:01:01. > :01:06.Asia, Taiwan downgrades its growth Washington is preparing to ratchet
:01:06. > :01:12.up the pressure on the EU over rules that require airlines using a
:01:12. > :01:17.European airports to pay for their carbon emissions. The US Senate
:01:17. > :01:22.will hold a vote on Tuesday over the bipartisan bill that will make
:01:22. > :01:25.it illegal to comply with the EU law. The US State Department and
:01:25. > :01:34.the department of transportation are hosting a two-day meeting of at
:01:34. > :01:38.least a dozen countries opposed to European measures to curb emissions.
:01:38. > :01:45.From next April, airlines flying into European airports will be
:01:45. > :01:50.required by EU law to pay for cop and allowances to cut their
:01:50. > :01:55.emissions. This prospect has caused outrage amongst carriers and
:01:55. > :01:59.governments from outside the region for there has to be a strong for us
:01:59. > :02:04.back to lead the European governments know if they may be
:02:04. > :02:10.going a bridge too far. Everybody is trying to control the machines
:02:10. > :02:15.but it has to be done in a logical way, and you cannot just impose all
:02:15. > :02:21.kinds of high taxes in an industry that is still struggling. Airlines
:02:21. > :02:28.do not like the costs of complying with the's regulations, especially
:02:28. > :02:36.at a time of such extraordinary uncertainty -- with the EU's. There
:02:36. > :02:43.is also the issue of sovereignty. Why should an American airline
:02:43. > :02:48.taking off from an American airport have to pay for admission charges
:02:48. > :02:55.just because the flight ends in Europe? China and India have told
:02:55. > :03:00.their allies not to call parades with the new rules and in America
:03:00. > :03:07.Congress is considering introducing legislation that would ban airlines
:03:07. > :03:13.from complying. This to be some compromise at the international
:03:14. > :03:18.level. We all want the same goal, cleaner and greener skies. It may
:03:18. > :03:23.seem a little tedious but the place to resolve this is that the
:03:23. > :03:27.international level at the UN. the moment there is no sign of the
:03:27. > :03:33.EU backing down. Aviation is seen as one of the fastest-growing
:03:33. > :03:38.sources of the gases that cause climate change. You refuse the
:03:38. > :03:44.tougher rules and more expensive airfares as the price we have to
:03:44. > :03:49.accept for a greener and cooler planet.
:03:49. > :03:55.B P releases its earnings later today and they are likely to
:03:55. > :04:01.reflect the higher oil prices and lower output. There is a forecast
:04:01. > :04:06.of a 18% drop in profits for the first half of the year. There will
:04:06. > :04:13.come in $9.2 billion. This comes after a plunge after the second
:04:13. > :04:19.quarter. It is still suffering after a trilling ban after the oil
:04:19. > :04:26.spill. There is also a battle for a Russian state company entered the
:04:26. > :04:30.fray one week after the partner of BP said it wanted to extend its
:04:30. > :04:36.stakes. Plenty of information is buried in those numbers. I am
:04:36. > :04:40.joined by David Hunter from an energy company. Good morning. Let's
:04:40. > :04:43.start with the numbers. What are we expecting on the property loss
:04:43. > :04:52.front? There is going to be a reduction in compared to the second
:04:52. > :05:02.quarter last year. It will be close to 20%. They are likely to record a
:05:02. > :05:06.reduction in will production figures, mainly because they have
:05:06. > :05:14.seen eruption in oil price over the quarter, which has impacted on
:05:14. > :05:18.their figures. Let's stay with the idea of numbers. There is an issue
:05:18. > :05:25.over the Gulf of Mexico will spill and there is some talk that perhaps
:05:25. > :05:35.a settlement is close. -- oil spill. Are we talking about in excess of
:05:35. > :05:41.
:05:41. > :05:45.$15 billion? b p would rather pay $15 billion as opposed to a
:05:45. > :05:50.settlement. I guess if they can settle around the middle it would
:05:50. > :05:56.at least draw a line under this for the company, allowing them to
:05:56. > :06:01.quantify the total cost and allow them to move on strategically.
:06:01. > :06:10.terms of moving on strategically, Les KK looker this other company.
:06:10. > :06:19.This has been a mixed venture for BP -- let's take a look. For BP,
:06:19. > :06:23.this company has a loss. Because it has been hugely honours and a
:06:23. > :06:28.positive for BP over-the- nine years with increasing litigation
:06:28. > :06:35.and falling out with their joint venture partners has meant that it
:06:35. > :06:39.has become difficult. If the heat can exit that business or can
:06:39. > :06:49.persuade the company to exit the business then they can move forward
:06:49. > :06:55.
:06:55. > :07:01.-- BP. Also in terms of further exploration work. We may actually
:07:02. > :07:08.see the company coming in and taking shares, possibly with the
:07:08. > :07:15.stake in BP. It is quite confusing with all of those letters. Thank
:07:15. > :07:22.you for clarifying that. In Asia, more numbers, this time coming out
:07:22. > :07:28.of Taiwan. GDP figures, what were they like? Not good, as you can
:07:28. > :07:33.imagine. Taiwan is a major export reliant economy so no surprise it
:07:33. > :07:38.is reporting its economy retracted in the three months until June.
:07:38. > :07:48.There was a slowdown in the US and China and that has been weighing on
:07:48. > :07:57.export dependent countries like Taiwan. They had been expecting a
:07:57. > :08:07.slight grow from last year. It has cut its forecasts by a percentage
:08:07. > :08:07.
:08:07. > :08:14.point, of Italy around 3%. It has cut its output for electronics and
:08:14. > :08:18.other aspects. China is a major trade partner for Taiwan and the
:08:18. > :08:22.growth there it is beginning to slow. It does not help it is
:08:22. > :08:27.beginning to report slower exports and coupled with the slowdown in
:08:27. > :08:32.domestic demand is creating a bleak picture. Some analysts are saying
:08:32. > :08:39.the words could be over. The European crisis is beginning to
:08:39. > :08:43.resolve -- the worst. China has taken several economy boosting
:08:43. > :08:47.measures. Thank you. Let's take a look at
:08:47. > :08:52.some of the other business news of the day for some nurses to united
:08:52. > :09:01.has said it plans to raise as much as $330 million in a share listing
:09:01. > :09:07.in New York. It said it will sell 16.7 million shares between $16.20
:09:07. > :09:14.dollars each. It can also reveal that the club was knocked out of
:09:14. > :09:22.the Champions League and the price of shares has gone down. It has a
:09:22. > :09:28.value of $2.23 billion. A meeting between the US Secretary
:09:28. > :09:35.General and the German Chancellor has boosted hopes of a resolve to
:09:35. > :09:39.the European crisis. They met ahead of a meeting with the European
:09:39. > :09:45.Central Bank. It is Europe which is the theme are dominating some of