:00:00. > :00:00.behind to defeat Algeria 2`1. South Korea and Russia ended 1`1.
:00:00. > :00:18.Now this time for the latest financial news.
:00:19. > :00:26.Watching the oil price as the turmoil in Iraq intensifies. Experts
:00:27. > :00:31.warned the crisis could destabilise energy markets.
:00:32. > :00:34.And the boss of General Motors faces a grilling in Congress just days
:00:35. > :00:45.after the car giant announces another damaging recall.
:00:46. > :00:52.Welcome. You are with World Business Report. We will also find out if
:00:53. > :00:59.casinos are a solution to Japan's economic woes. Financial markets are
:01:00. > :01:08.watching events in Iraq, where the biggest oil refinery has been shot
:01:09. > :01:15.down and foreign staff evacuated. The uprising by Sunni insurgents
:01:16. > :01:19.threatens Iraq. This is a one`month chart of an illustration of the
:01:20. > :01:30.swift reaction to the events in Iraq. About 4% rise last week. It
:01:31. > :01:37.was a similar story for Brent crude. The prices have stabilised a
:01:38. > :01:44.little. Iraq's oil refineries in the south have so far escaped the
:01:45. > :01:52.fighting. But many are wondering, how long will that last? I am joined
:01:53. > :01:57.by an energy analyst. . Good morning. It is difficult to predict
:01:58. > :02:02.what will happen next in Iraq and how bad the situation will become.
:02:03. > :02:11.Naturally, markets are very sensitive. What will happen next? We
:02:12. > :02:15.have seen risk premium return to the oil markets, just as we did when the
:02:16. > :02:23.searing crisis was at its peak. `` Syrian. If Iraq stabilises, we will
:02:24. > :02:29.see the risk premium full`back. If supply is disrupted and Iraq is a
:02:30. > :02:39.significant producer there is a potential for a spike. That is key.
:02:40. > :02:46.Iraq is an exporter, unlike Syria, Libya, other areas that have been
:02:47. > :02:52.through serious unrest. This is the biggest disruption for the market.
:02:53. > :02:58.Iraq is the second`largest OPEC producer. It is a significant player
:02:59. > :03:03.and the fastest`growing producer. Production is forecast to double by
:03:04. > :03:08.the end of the decade. That supply is needed to meet growing demand
:03:09. > :03:16.from the Asian economies. Both in terms of the near`term and the
:03:17. > :03:23.medium`term in terms of where the country can meet the prevention
:03:24. > :03:27.target. One of BP's top economists has been warning that this
:03:28. > :03:31.particular event could be destabilising. To what extent do you
:03:32. > :03:36.believe, given the fact that in the United States they are managing to
:03:37. > :03:42.produce a lot of their own oil because of the shale gas fracking,
:03:43. > :03:50.how difficult things become? We have seen the effect of the Arab spring
:03:51. > :03:56.offset by rising oil production. Libya was previously a significant
:03:57. > :04:02.exporter. But Iraq would shift the balance. If Iraq's production came
:04:03. > :04:15.flying, that would be a significant gains. There is no way countries
:04:16. > :04:23.like the US can fill the gap. How high could the price go potentially?
:04:24. > :04:30.Certainly we would expect prices to go above $120. It depends how
:04:31. > :04:33.significant the impact is. There is the potential for a meaningful price
:04:34. > :04:40.spike beyond that. Possibly over $140.
:04:41. > :04:45.Thank you for your perspective. We are keeping a close eye on that. Let
:04:46. > :04:49.us talk about the chief executive of General Motors. He will be in
:04:50. > :04:56.Washington today, facing tough questions from US lawmakers. She
:04:57. > :05:02.will be appearing before a congressional subcommittee, looking
:05:03. > :05:07.into GM's recall of 6.5 million cars for an ignition switch defect. A
:05:08. > :05:12.malfunction that has been linked to at least 12 deaths. While the number
:05:13. > :05:18.of recalls loan this year is close to 20 million, it is not the only
:05:19. > :05:28.automaker that has been recalling colours. Ford and listen have also
:05:29. > :05:39.recalled millions. How big is the problem for the industry?
:05:40. > :05:43.Michael normally drives a cobalt. The car he is driving here was a
:05:44. > :05:50.letter from General Motors. His car was one of 5 million that have been
:05:51. > :05:56.recalled this year. All because of ignition switch malfunctions. I was
:05:57. > :06:02.angry. This is something that she knew about four a number of years. I
:06:03. > :06:11.have two young daughters. `` they knew about four. Although General
:06:12. > :06:18.Motors has recalled more cars than it sold last year, it is not the
:06:19. > :06:23.only automaker sending customers recall notices. Recalls up.
:06:24. > :06:30.Surprisingly, that has not hurt sales. Americans are buying cars
:06:31. > :06:36.again. And in record numbers. For many car makers in the US, May was
:06:37. > :06:43.their best month in years. So much buying is tied to the economy as a
:06:44. > :06:49.whole. That is why a lot of time is buying is not going to react closely
:06:50. > :06:57.to these recalls. If there is momentum, people want to buy a car,
:06:58. > :07:01.people want to buy a car. When General Motors's CEO faces US
:07:02. > :07:08.lawmakers on Wednesday, this recent set of recalls is raising some
:07:09. > :07:18.serious questions for America's biggest car maker. How widespread
:07:19. > :07:20.are these safety issues? Japan's lawmakers are starting
:07:21. > :07:27.long`awaited talks today on a bill to lift a ban on casino gambling.
:07:28. > :07:30.Some say Japan has the potential to become one of the largest gambling
:07:31. > :07:39.market in the world. Shinzo Abe says it will be the highlight of his
:07:40. > :07:44.growth strategy. Is this a bit of a gamble? Will it pay off?
:07:45. > :07:49.A big gamble that could result in major returns for the slowing
:07:50. > :07:52.Japanese economy. A research paper says that Japan's potential revenue
:07:53. > :08:00.from gambling could reach $40 billion. If you compare that to Las
:08:01. > :08:06.Vegas, that is six times the strip's $6.5 billion total. It could
:08:07. > :08:13.become Asia's second`largest gaming market after Macau. Currently it
:08:14. > :08:19.allows betting on horse, bicycle and addresses as well as pension go. But
:08:20. > :08:25.it is not enough to boost the economy. Another industry that would
:08:26. > :08:30.be impacted is the reason. The Prime Minister is hoping on casino resorts
:08:31. > :08:37.to attract travellers from overseas. `` tourism. 2020 is the year that
:08:38. > :08:42.Tokyo is hosting the Summer Olympics. They are hoping that
:08:43. > :08:49.gaming will be a positive catalyst for the economy.
:08:50. > :08:53.The Canadian government has approved controversial plans for a new
:08:54. > :08:57.pipeline linking Alberta to the Pacific Coast that will allow it to
:08:58. > :08:59.ship oil to Asia. The northern gateway pipeline will transport more
:09:00. > :09:06.than half a million barrels of oil per day from the oilfields. It is
:09:07. > :09:09.expected to cost over $7 billion to build and is strongly opposed by a
:09:10. > :09:18.large number of environmental groups and Canadian aboriginal peoples.
:09:19. > :09:22.A bill that would make California the first state in the United States
:09:23. > :09:30.to require warning labels on sugary drinks has been defeated. It was
:09:31. > :09:32.rejected on a 7`8 vote on Tuesday as Democratic lawmakers doubted whether
:09:33. > :09:38.a label would change consumer behaviour. It needed ten votes to
:09:39. > :09:43.pass. The oil price has gone up again
:09:44. > :09:48.today. We have talked about that. The Federal reserve will end its
:09:49. > :09:52.meeting looking at the world economy and the US economy and the decisions
:09:53. > :09:56.on interest rates and also whether it will pull back on stimulus
:09:57. > :10:11.further. That is all from me for the time being.
:10:12. > :10:18.The number of young people being admitted to hospital with Crohn's
:10:19. > :10:19.disease has soared by