:00:00. > :00:00.were wondering. Those are the headlines from BBC News. Now, the
:00:00. > :00:22.latest financial news with Sally. China's Premier makes his first
:00:23. > :00:29.visit to the UK, $30 billion of deals on the table. Russia's just
:00:30. > :00:40.hours from switching off Ukraine's gas supply after contract talks rate
:00:41. > :00:44.down. `` breakdown. Hello. You are with World Business Report, I am
:00:45. > :00:47.Sally Bundock. Also in the programme, London's bid to become
:00:48. > :00:52.the digital capital of Europe. We look at what it is up to. The
:00:53. > :00:58.Chinese Premier Li Keqiang arrives in Britain for a summit meeting with
:00:59. > :01:01.PM David Cameron. Trade and investment are expected to be very
:01:02. > :01:08.high on the agenda. Last year, trade between the countries topped $70
:01:09. > :01:13.billion. That is a huge figure. Chinese investment, when looking at
:01:14. > :01:18.the investment in the UK in 2012, was around $8.9 billion. Britain
:01:19. > :01:25.hopes the figure will go up this year. China has complained that
:01:26. > :01:31.Britain's restrictive visa regime and failure to build a third runway
:01:32. > :01:34.at Heathrow is reducing competitiveness and more analysis on
:01:35. > :01:40.this will come in a moment. First, let's hear from our correspondent
:01:41. > :01:49.John Sudworth. Look familiar? Look again. This isn't Britain Thomas
:01:50. > :01:51.this is China. Thames town is a development on the outskirts of
:01:52. > :02:00.Shanghai, complete with clocktower is, cobbles and its own Winston
:02:01. > :02:03.Churchill statue. TRANSLATION: British history and culture have had
:02:04. > :02:10.a huge impact on the world. White they are among the thousands who
:02:11. > :02:12.come here for their wedding photos. I like British style a lot. I am
:02:13. > :02:21.longing to visit. So is my wife. longing to visit. So is my wife.
:02:22. > :02:25.Romance is in the area, but if the Chinese are keen, Britain is
:02:26. > :02:28.positively head over heels. David Cameron's visit last year was all
:02:29. > :02:34.part of an effort to woo Chinese investment and boost British
:02:35. > :02:41.exports. Thames town has its very own pub of course, but on closer
:02:42. > :02:44.inspection, despite the familiar welcoming exterior, it is just a
:02:45. > :02:49.facade. The same has sometimes been said of the UK` China relationship.
:02:50. > :02:55.The PM's meeting in 2012 with the Dalai Lama at the spiritual leader
:02:56. > :03:00.of Tibet, a man considered by China a dangerous separatist, led to a
:03:01. > :03:04.chill in diplomatic relations. Today, although China's human rights
:03:05. > :03:09.record is in theory still on the table, the focus is, without doubt,
:03:10. > :03:14.on its huge and rapidly growing economy. Chinese money is being
:03:15. > :03:18.sought for UK infrastructure projects like railways and nuclear
:03:19. > :03:27.power and two way trade last year was worth a record ?43 billion.
:03:28. > :03:32.Behind the scenes, tensions lurk. Excuse me. On the one hand, the
:03:33. > :03:35.rising communist power and the other, the former colonial one.
:03:36. > :03:41.There is no doubt about her needs are the most today. One state`run
:03:42. > :03:51.newspaper recently described the UK as an old European country apt for
:03:52. > :03:54.trouble and study `` who needs who. Let's talk to John Foley, a China
:03:55. > :04:00.columnist for Reuters, about this trip. Thank you. What do you expect
:04:01. > :04:08.in terms of trade deals clinched during the visit? For China, the
:04:09. > :04:10.appeal of coming to the UK is looking for investment
:04:11. > :04:13.opportunities. The chance to find and build some of the UK
:04:14. > :04:18.infrastructure, including nuclear power and maybe even high`speed
:04:19. > :04:24.rail. The prize for the UK is to get China to open its markets to British
:04:25. > :04:28.trade. The UK have ambitious export targets, Osborne would like to see
:04:29. > :04:31.?1 trillion of exports by 2020 and crucial to that is getting China to
:04:32. > :04:35.allow Britain to supply pharmaceuticals, financial services,
:04:36. > :04:39.cars, anything like that would be welcome. The question is at what
:04:40. > :04:45.cost Britain opens it markets to China. What are the key hurdles
:04:46. > :04:51.between the two sides reaching the point is they want to reach? Human
:04:52. > :04:55.rights has been a sticking point in the past and China only a few days
:04:56. > :04:59.ago warned the UK not to lecture it on the issue. It is likely we won't
:05:00. > :05:04.lecture them on the trip and we will roll over and be quite steep line at
:05:05. > :05:07.other things. The obstacles are that China won't open its markets as
:05:08. > :05:14.quickly as most people imagine it would one decade ago `` supine.
:05:15. > :05:18.Things like insurance and financial services have strict what they can
:05:19. > :05:22.do. Britain has opened its markets widely and they have allowed China
:05:23. > :05:25.to open a bank for its own currency in London, helping to turn London
:05:26. > :05:35.into an offshore centre, a bigger one for trading and anywhere outside
:05:36. > :05:41.China. Thank you for joining us. We will keep a very close eye on that
:05:42. > :05:45.visit. We will keep you up to date as and when any deals are announced.
:05:46. > :05:51.Let's talk about Russia, which is threatening to cut the gas supply to
:05:52. > :05:55.Ukraine in a few hours if Kiir feels too pale `` Kiev fails to pay $2
:05:56. > :06:00.billion it owes. Talks failed without agreement on Sunday. Russia
:06:01. > :06:06.says it offered Ukraine discount, but Ukraine wanted a lower fixed by
:06:07. > :06:10.contract. I am joined by the director of seven investment
:06:11. > :06:16.management. I feel like it is a Monday morning discussion. Today is
:06:17. > :06:18.critical. They could cut off supplies literally within under two
:06:19. > :06:24.hours. We are technically running out of time. Russia can play
:06:25. > :06:27.hardball with this. Ukraine needs the gas. Although the EU thought
:06:28. > :06:34.they is no reason why it Russia or why
:06:35. > :06:46.Gazprom should be flexible. As far as they are concerned, Ukraine has
:06:47. > :06:49.least of which the political issues. There probably won't be an agreement
:06:50. > :06:53.and they will have to go into a pay as you go back and is, to release an
:06:54. > :06:56.amount of gas, and meanwhile they will find themselves in a position
:06:57. > :07:04.where they won't have a long`term agreement. It is a chicken and egg
:07:05. > :07:12.scenario. Gazprom said unless we get this amount of money by 6am GMT, we
:07:13. > :07:19.will cut off. This pay as you go scenario has being discussed, which
:07:20. > :07:25.was a point until the early hours of this morning. Who will move first?
:07:26. > :07:31.Gazprom don't need to move. We will end up with a fudge. The question
:07:32. > :07:36.isn't now, but later in the year. Demand for gas is relatively low.
:07:37. > :07:40.Coming into autumn, that is when you will find it. It is difficult for
:07:41. > :07:45.Ukraine, it was it isn't a functioning country. Its economics
:07:46. > :07:50.are in a mess. It can't pay for these easily. It needs to get itself
:07:51. > :07:56.stabilised and then try to attract investment to provide that support.
:07:57. > :07:59.That seems a far cry. See you soon. You will talk us through the papers
:08:00. > :08:04.in about five minutes. Let's squeeze in some other stories. London's
:08:05. > :08:09.first tech week kicks off today, aiming to make London the digital
:08:10. > :08:12.capital of Europe. It competes with Paris and Berlin, though no city
:08:13. > :08:21.comes close to challenging Silicon Valley's success in California. Our
:08:22. > :08:23.correspondent looks at why. This website is one on which entertainers
:08:24. > :08:34.can list events and on which fun seekers Ken buy tickets. London's
:08:35. > :08:38.Silicon Valley roundabout has 3000 tech companies, it generating $115
:08:39. > :08:42.billion per year in revenue. Silicon Valley's companies generate three
:08:43. > :08:50.times that much. There are two other major tech hubs in Europe, Paris's
:08:51. > :08:55.silicon Road and Berlin's silicon Alley are what London have to
:08:56. > :09:00.compete with. There are so many other things here, fashion, culture
:09:01. > :09:02.industry can feed and derive value industry can feed and derive value
:09:03. > :09:07.and to which they can add efficiency. We think there is a
:09:08. > :09:10.special place for London within the tech ecosystem. Silicon Valley turns
:09:11. > :09:16.out multibillion dollar companies like Facebook, Google and above. So
:09:17. > :09:21.far, the European tech centres like London, have produced none `` Uber.
:09:22. > :09:26.Is it because the individually Laak Silicon Valley's size? Analysts say
:09:27. > :09:34.no. The problem is, they lack Silicon Valley's money. The average
:09:35. > :09:37.start`up company in Silicon Valley gets $3 million from financial
:09:38. > :09:43.backers. In Paris, the average start`up that 62% less funding. In
:09:44. > :09:49.Berlin, it gets 80% less and in London, 81% less. There are lots of
:09:50. > :09:52.New York and elsewhere in the US New York and elsewhere in the US
:09:53. > :09:58.that have been successful with start`ups. They have a pool of cash
:09:59. > :10:01.and they say, I have done it, how can I empower others to do it and
:10:02. > :10:06.how can I make money from that and let's take a punt. In the UK, people
:10:07. > :10:11.are more cautious white out of London, Paris and Berlin, perhaps it
:10:12. > :10:15.is the city that adopts the Silicon Valley style of openhanded funding
:10:16. > :10:21.which will be the one that draws the most players.
:10:22. > :10:33.That is World Business Report. See you soon. Flair...
:10:34. > :10:39.Thank you to Sally. We will look at the papers in a moment. The food
:10:40. > :10:43.standards agency urges people not to wash chicken before they took it to
:10:44. > :10:46.avoid foods poisoning. Experts say water spreads bacteria to kitchen
:10:47. > :10:54.services, clothing and other utensils and it is only thorough
:10:55. > :10:55.cooking that will kill the bacteria that affect 280,000 people. Our