:00:04. > :00:14.with food and equipment. Those are the latest headlines. Now
:00:14. > :00:17.
:00:17. > :00:21.it is time for the latest financial This is World Business Report. Here
:00:21. > :00:25.are the headlines: A US congressional committee says that
:00:25. > :00:29.two of China's biggest technology firms should be banned from the
:00:29. > :00:39.American market. A more trouble from the proposed
:00:39. > :00:44.
:00:44. > :00:47.A United States congressional committee has called for a two
:00:47. > :00:52.Chinese telecommunications giants to be banned from the American
:00:52. > :00:57.market. A draft report from the House Intelligence Committee said
:00:57. > :01:05.the companies cannot be trusted to be free of Chinese state influence.
:01:05. > :01:11.They pose a security threat to the US and its systems. Give us more
:01:11. > :01:14.detail on what is in this report. What they are saying is that the
:01:14. > :01:19.companies can't be trusted to be free of influence by the Chinese
:01:19. > :01:26.government. The companies could be used for malicious purposes by
:01:26. > :01:33.Beijing. They say that in a time of crisis or a war of, if malicious
:01:33. > :01:40.software is implanted in Chinese Beijing to sub down national
:01:40. > :01:44.security systems. -- shut down. A stark warning. They say they have
:01:45. > :01:49.evidence of this. They have spoken to industry experts and people who
:01:49. > :01:58.have worked for the companies. Their views about the potential
:01:58. > :02:03.threat are not unique. This report is not a surprise. There has
:02:03. > :02:13.already been one response released. Will this report actually lead to
:02:13. > :02:13.
:02:13. > :02:19.anything? It is a report, not a proper then. The shares and one of
:02:19. > :02:27.the companies have fallen. They say they are not directly controlled by
:02:27. > :02:31.the Chinese government. The other company has said the investigation
:02:31. > :02:36.is not objective and is a distraction. In terms of what
:02:37. > :02:39.happens next, you're right, this is just a report. But his
:02:39. > :02:45.congressional committee is asking businesses to not to deals with
:02:45. > :02:49.these companies. It is hard to see why any business would be prepared
:02:49. > :02:58.to do that. This is not the first time that this kind of report has
:02:58. > :03:05.come out. Just two years ago a huge deal between these companies and
:03:05. > :03:11.another telecommunications giant fell apart. That is because one of
:03:11. > :03:18.them was leant on by the Commerce Department. The Defence Department
:03:18. > :03:23.say they were concerned by China's emerging cyber capabilities. Seen
:03:23. > :03:30.in the context of how the rest of Washington is the wing the threat
:03:30. > :03:33.from China, this report is significant.
:03:33. > :03:41.Concerns are growing about the proposed merger of catch mac
:03:41. > :03:44.defence firms to create the world's biggest aerospace company.
:03:44. > :03:49.Britain's the best secretary warned that the French and German
:03:49. > :03:52.governments would have to reduce their stakes in the front. The
:03:52. > :03:57.Financial Times is referring one of the largest shareholders will
:03:57. > :04:07.signal it has significant concerns about the deal. They have until
:04:07. > :04:07.
:04:07. > :04:14.Wednesday to decide whether to go on with the merger talks. We knew
:04:14. > :04:18.this would be fraught with difficulty. But this is interesting.
:04:18. > :04:25.Commercially, the deal makes sense. This will be able to take on
:04:25. > :04:31.bowling as the largest defence operator in the world. -- bowling.
:04:31. > :04:41.220,000 employees. An absolute juggernaut. But it is fraught with
:04:41. > :04:45.
:04:45. > :04:54.pot holes. Germany and France are major stakeholders. So is Spain.
:04:54. > :05:00.There are obviously concerns from the United States. Germany insisted
:05:00. > :05:06.that the head office should be in Germany. When you water this down,
:05:06. > :05:12.it looks like France and Germany will have somewhere between 9-10 %.
:05:12. > :05:19.That is too much. The French and German governments have to reduce
:05:19. > :05:25.their stakes or offer their stop to the public. The chances of that
:05:25. > :05:31.happening in a short space of time are remote. You can understand the
:05:31. > :05:41.political arguments. But for the stakeholder, they do not have the
:05:41. > :05:42.
:05:42. > :05:48.amounts to stop it going forward. The Chief Executive Investment
:05:48. > :05:57.Officer is a sharp cookie. They have got about 40%. He is concerned
:05:57. > :06:04.that Mike Turner, the chief executive, has been too concerned
:06:04. > :06:10.about deal-making. Not enough dividend policy. Not good enough.
:06:10. > :06:15.Thank you. We will see you soon. We will look at today's newspapers.
:06:15. > :06:19.But first, some more business stories.
:06:19. > :06:26.Finance ministers from the Rose Byrne are meeting in Luxembourg.
:06:26. > :06:36.They will launch Europe's new bailout fund. It will have 500
:06:36. > :06:36.
:06:36. > :06:41.billion euros at its disposal to bailout struggling eurozone nations.
:06:41. > :06:50.At last, this bail-out fund has arrived. We have been talking about
:06:50. > :06:57.it for a very long time. Why is it there? What is it allowed to do?
:06:58. > :07:03.There are various rules and regulations. It is a temporary
:07:03. > :07:10.bail-out fund that does not have enough to do what we have coming on
:07:10. > :07:15.the horizon. There is a second permanent one. That is the one that
:07:15. > :07:21.is coming into operation today. So much of the first bail-out fund has
:07:21. > :07:25.already been spent on Greece and Ireland. We are looking at We are looking at
:07:25. > :07:35.banking bail-out for Spain. We have got a bail-out for Cyprus coming up.
:07:35. > :07:36.
:07:36. > :07:43.We will see whether Spain will be looking for a sovereign bailout.
:07:43. > :07:48.Many art origin wind here is not enough money. -- many arguing.
:07:48. > :07:58.Especially if Spain is in a difficult position. How will it
:07:58. > :07:59.
:07:59. > :08:07.work going forward? A very realistic concern. Right now, both
:08:07. > :08:11.of these funds can cope with what ever Spain will throw at it. But
:08:11. > :08:19.Italy is very different. It has got the third largest debt market in
:08:19. > :08:24.the world. Its ratio is already 120 %. That is a problem. The way the
:08:24. > :08:31.stability mechanism works is that it will have a 2 billion euros of
:08:31. > :08:37.capital. But that will not be in place for a three-year period. It
:08:37. > :08:44.would not be ready to cope with Italy. Many people are also worried
:08:44. > :08:50.about France. We have got to leave it there. Thank you for filling us
:08:51. > :09:00.in. Some of the stories that are of concern. A disruption at the plant
:09:00. > :09:07.that makes the new iPhone. 4,000 workers went on strike. The company
:09:07. > :09:13.is saying that production continues as usual. Last year, a brawl
:09:13. > :09:23.involving 2000 workers broke out. The Abu Dhabi based airline Etihad
:09:23. > :09:27.
:09:27. > :09:35.continues its rapid growth. Sales hit $1.3 billion.
:09:35. > :09:40.The new Liam Neeson moved the top to the box-office in the UK. It
:09:40. > :09:47.took a double the original movie. Showing you the market's very