:00:03. > :00:13.BBC World News. Now for the latest financial news in World Business
:00:13. > :00:23.
:00:23. > :00:28.G8 leaders are expected to call for more transparency and the global
:00:28. > :00:31.exchange of information in a bid to crack down on tax evasion.
:00:31. > :00:41.The 50th Paris Air Show is opening today and the dogfight between
:00:41. > :00:42.
:00:42. > :00:50.Europe's Airbus and America's Hello and welcome to World Business
:00:50. > :00:57.Report. I'm Sally Bundock. Also, we will also look at Singapore's
:00:57. > :01:01.latest trade data. First, British Prime Minister David Cameron, who
:01:01. > :01:04.is hosting the annual G8 Summit in Northern Ireland this week, says he
:01:04. > :01:14.will put tax evasion and aggressive avoidance at the heart of the
:01:14. > :01:15.
:01:15. > :01:19.meeting. Britain's offshore jurisdictions, including the Isle
:01:19. > :01:21.of Man and Jersey, have signed up to an initiative led by the
:01:21. > :01:24.Organisation for Economic Cooperation and Development. They
:01:24. > :01:28.have agreed to be more transparent and exchange information and give
:01:28. > :01:31.details on the true owners of so- called shell companies. Our
:01:31. > :01:36.business reporter asked Allan Bell, the Chief Minister of the Isle of
:01:36. > :01:39.Man, whether he thought this move by the G8 was politically motivated.
:01:39. > :01:44.There is a great deal of political focus on small jurisdictions but
:01:44. > :01:49.the danger in that is that they are missing the real target, which are
:01:49. > :01:54.way beyond the shores of places like the Isle of Man. We have a
:01:54. > :01:58.well regulated jurisdictions, we fully comply with international
:01:58. > :02:02.standards. There are many other jurisdictions that do not. I think
:02:02. > :02:08.they need to broaden their range, to identify where the real problem
:02:08. > :02:14.areas are. For example, the US has estate called Delaware. It's a
:02:14. > :02:16.brass plate state, full of many companies, many more than there are
:02:16. > :02:21.inhabitants. There was an interesting article in the
:02:21. > :02:25.Financial Times that identified a single building housing over 2000
:02:25. > :02:29.companies. That is ten times the total number of companies
:02:29. > :02:34.registered in the Isle of Man. Most of those are of unknown ownership.
:02:34. > :02:39.It shows the scale of the problem. HSBC said in their most recent
:02:39. > :02:46.report that they were going to use, their words, tax havens an awful
:02:46. > :02:50.lot less because they had, "and bad name". Is there a danger that some
:02:50. > :02:55.of these banks may decide to bring bigger investments onshore and that
:02:55. > :03:00.could affect investments? There are two issues. That debate is going on
:03:00. > :03:06.around at the moment. Most banks are reconsidering for a number of
:03:06. > :03:10.reasons. We have to be very conscious of that. Alongside that,
:03:10. > :03:15.we have the review of the banking system anyway, the review going on
:03:15. > :03:20.currently, and that will we do find the relationship between onshore
:03:20. > :03:26.and offshore banking. -- will be defined. That will develop further
:03:26. > :03:32.over the next 12 months. Is the Isle of Man a tax haven? No. I
:03:32. > :03:39.would ask for U2 first explain what you understand as a tax haven. --
:03:40. > :03:44.for U2. But the Isle of Man has a very open and transparent economy.
:03:44. > :03:47.We are fully co-operative with the international community.
:03:47. > :03:52.Interesting. That was the chief minister of the
:03:52. > :03:59.Isle of Man. With me is George Bull, Senior Tax Partner at Baker Tilly.
:03:59. > :04:05.Clearly the UK's prime minister, who is hosting this meeting, wants
:04:05. > :04:09.to be seen to be doing his bit but they have done quite a lot? He has
:04:09. > :04:12.worked hard on this and it has been necessary for the credibility of
:04:12. > :04:16.the UK to get the Crown dependencies lined up and ready to
:04:16. > :04:22.sign an agreement on the exchange of information. It's a very
:04:22. > :04:27.important step. And would you say taking a bit of a risk? It is.
:04:27. > :04:30.Sometimes we hear of first mover advantage. It is the opposite here.
:04:30. > :04:33.It gives a great exchange of information between the
:04:34. > :04:38.dependencies of the UK and the various tax authorities. But if
:04:38. > :04:42.other nations do not play ball and signed up, companies will still
:04:42. > :04:45.have plenty of places to go. What you think this G8 summit will
:04:45. > :04:49.achieve from the point of view of getting other countries to play
:04:49. > :04:54.ball? I think this will really change the mood music and show that
:04:54. > :05:00.the G8 is serious about exchanging information, potentially about this
:05:00. > :05:03.UK driven register of ownership of companies, and that will play very
:05:03. > :05:07.well not only with the domestic populations but especially the
:05:07. > :05:15.pressure groups. People are really concerned about tax justice. What
:05:15. > :05:19.about the likes of Apple, Amazon, Google? The big multinationals have
:05:19. > :05:24.been on side of the UK government. And the UK government is in a bind.
:05:24. > :05:29.It said it would give us the lowest tax rates from G20. The UK begins
:05:29. > :05:33.to look like a tax haven but, at the same time, it wants to get rid
:05:33. > :05:42.of multinational avoidance. A bit of a problem. We will not hear much
:05:42. > :05:46.about that at G8 because the next big move is from Paris later this
:05:46. > :05:53.month by the Organisation for Economic Cooperation and
:05:53. > :05:57.Development. Thank you. We will keep you up-to-date with that story.
:05:57. > :06:00.We will keep you across any development as they take place.
:06:01. > :06:04.Moving on. Boeing and Airbus really miss a
:06:04. > :06:10.chance to try to steal the limelight from each other. And it
:06:10. > :06:14.all went a bit quiet when first the giant Airbus and then the Boeing
:06:14. > :06:18.787 Dreamliner hit major delays. Today, they resumed their dogfight
:06:18. > :06:25.if not in the skies but on the ground at the world's biggest
:06:25. > :06:27.airshow, which opens north of Paris this morning. Our correspondent is
:06:27. > :06:33.there. Welcome to the biggest ever Paris
:06:33. > :06:40.Air Show. Certainly for exhibitors if not orders for the big plane
:06:40. > :06:45.makers. Airbus said it should be good for around 200 orders. Boeing
:06:45. > :06:51.says it will not play the numbers game. Everybody is excited about
:06:51. > :06:56.the second potential public appearance for the Airbus A 350.
:06:56. > :07:00.Together, with Boeing's delayed Dreamliner, it heralds the start of
:07:01. > :07:07.a new era of Lena Burnie, light bodied planes, allowing the
:07:07. > :07:11.industry to deliver the Holy Grail, low cost, long-haul travel.
:07:11. > :07:18.This Nordic airline hopes to succeed where others have failed,
:07:18. > :07:28.running budget flights from Europe to Asia. They have a record 273
:07:28. > :07:28.
:07:28. > :07:34.Boeings and Airbus planes on order. They will really be game changes in
:07:34. > :07:44.this market. When we do the calculation, we could get the
:07:44. > :07:44.
:07:44. > :07:48.numbers to add up with the older airplanes. With over 600 Airbus A
:07:48. > :07:57.350s and 90787 Dreamliners already on order, some carriers are going
:07:57. > :08:01.to have to wait several years for their orders. -- 900 Dreamliners.
:08:01. > :08:07.Even though it needs within the next 20 years China could become
:08:07. > :08:10.the world's third largest plane maker.
:08:10. > :08:13.We will hear more on that later this week.
:08:13. > :08:17.The tiny city state of Singapore is often seen as a bellwether for
:08:17. > :08:21.Asian economies, and if today's trade data is anything to go by it
:08:21. > :08:30.looks pretty gloomy. Sharanjit Leyl is in our Asia hub in Singapore.
:08:30. > :08:37.Nice to see you. Tell us more about this news. Just about as gloomy as
:08:38. > :08:43.the weather today. Exports are falling more than expected.
:08:43. > :08:47.Domestic exports fell 4.6% from one year earlier. That is after it fell
:08:47. > :08:53.about 1% in April. Shipments of electronics in particular did quite
:08:53. > :08:58.badly, falling over 13% from one year ago. That is the 10th month of
:08:58. > :09:01.decline. All of this due to an uneven global recovery, which is
:09:01. > :09:08.essentially hurting demand. Analysts have lowered their
:09:08. > :09:11.estimates for the export growth this year to around 2.5% from 4%
:09:11. > :09:15.previously. Or not this ties in with a World Bank forecast last
:09:15. > :09:22.week which cut global growth projections for this year. That is
:09:22. > :09:26.after emerging markets from China. It has weakened prospects for
:09:26. > :09:30.Singapore's open trade dependent economy. Singapore may be small in
:09:30. > :09:35.comparison to others in the region but, because it is open, it usually
:09:35. > :09:38.acts as a gauge against others in the region. Thank you.
:09:38. > :09:43.If these are the markets. They started a new trading which in Asia