:00:13. > :00:13.nominate a new president on Wednesday. The nomination of John
:00:14. > :00:22.Lott `` Jean Claude Juncker is expected to pass with little
:00:23. > :00:24.difficulty. Those are the latest headlines from BBC World News. Now
:00:25. > :00:28.for the latest financial news in World Business Report. Banking on a
:00:29. > :00:31.better deal ` the BRIC nations forge ahead with their plans to form a
:00:32. > :00:33.development bank but is China too dominant?
:00:34. > :00:37.From the drawing board to the runway in less than two years ` we look at
:00:38. > :00:41.a new way to build cheaper military jets.
:00:42. > :00:53.Welcome to World Business Report. I'm Sally Bundock. Also in the
:00:54. > :00:55.programme: We gauge the reaction in China to the World Trade
:00:56. > :01:04.Organization's ruling on the solar panel dispute between China and the
:01:05. > :01:07.US. But first, the sixth summit of the group of emerging economies
:01:08. > :01:10.known as the BRICS, or Brazil, Russia, India, China and South
:01:11. > :01:18.Africa, gets under way in north`eastern Brazil's Fortaleza
:01:19. > :01:24.today. There are plans for a BRICS development bank. It would be under
:01:25. > :01:27.the control of the people who would draw on it rather than institutions
:01:28. > :01:29.they say are too close to western governments such as the
:01:30. > :01:32.International Monetary Fund. Acronym aside, the BRICS countries are a
:01:33. > :01:35.diverse group of nations, and in a moment we'll hear from our reporters
:01:36. > :01:38.across the globe about what the different nations are hoping for
:01:39. > :01:45.from the summit. First, Katy Watson sets the scene from Brazil.
:01:46. > :01:50.Fresh from the World Cup, the president will play host to the
:01:51. > :01:54.leaders of the BRICS economies. The summit is under way. Finance
:01:55. > :01:58.ministers, central bankers and business leaders were talking on
:01:59. > :02:06.Monday. There has been a lot of talk about potential. Trade is relatively
:02:07. > :02:09.small. The big exception is China. All BRICS countries trade
:02:10. > :02:13.extensively with China because of its first four commodities but there
:02:14. > :02:17.is concern that the man is slowing down. Perhaps it is fitting that the
:02:18. > :02:22.summit will decamp to Brazil on Wednesday. BRICS leaders will meet
:02:23. > :02:27.with leaders from South America. Brazil is trying to prove itself as
:02:28. > :02:32.a regional leader and improve relationships between the region and
:02:33. > :02:36.begged economic superpowers. `` bid. Let's travel to the other
:02:37. > :02:39.side of the globe and hear what the biggest member of the BRICS group,
:02:40. > :02:42.China, wants to achieve. Here's John Sudworth in Shanghai.
:02:43. > :02:47.In China, the focus ahead of the summit has been known to things, the
:02:48. > :02:52.setting up of the much talked about BRICS development group and, beyond
:02:53. > :02:57.that type of detail, there has been focused on the wider and continuing
:02:58. > :03:05.importance of the BRICS gripping itself. An editorial published by
:03:06. > :03:08.and news agency Elan bass what it calls the shortsighted western view
:03:09. > :03:14.that somehow the BRICS miracle is over. There have been stiff economic
:03:15. > :03:20.headwinds but it has far outstripped those of the developed economies.
:03:21. > :03:24.The article suggests the BRICS grouping will be an important part
:03:25. > :03:28.of international growth for years to come. There will be focused on an
:03:29. > :03:33.important bilateral relationship within the grouping with India,
:03:34. > :03:39.China, and the first meeting between their presence. It is a reminder
:03:40. > :03:41.that, I'm at the top of cooperation and contingent reserve
:03:42. > :03:50.arrangements, there is still rivalry here. Ellie wants to reduce the
:03:51. > :04:02.trade deficit with Beijing and the thorny issue of the border dispute.
:04:03. > :04:04.`` Deli. And we'll hear from our correspondents in the other BRICS
:04:05. > :04:07.countries throughout the morning. The World Trade Organisation finds
:04:08. > :04:09.the United States violated trade rules when it imposed tariffs on
:04:10. > :04:11.Chinese steel products, solar panels and other goods. Rico Hizon is in
:04:12. > :04:21.our Asia Business Hub in Singapore. I would imagine China is pleased
:04:22. > :04:30.about this. Very pleased. Rousing positive
:04:31. > :04:36.excitement for the Chinese solar panel makers of the judges sided
:04:37. > :04:42.with the Chinese and said the import tariffs on solar panels were unfair.
:04:43. > :04:47.It was against the agreement which was signed in 1994. A lot of
:04:48. > :04:55.excitement, particularly for the likes of China. Energy is up by 11%
:04:56. > :04:59.right now in China. Green energy Holdings are also up. Many solar
:05:00. > :05:09.companies seeing gains of around four `6%. China is urging the
:05:10. > :05:14.Americans to respect this ruling and correct the wrongdoings of abusively
:05:15. > :05:18.using trade remedy measures to ensure environment of fear
:05:19. > :05:23.competition for China. That is according to the government. The US,
:05:24. > :05:27.meanwhile, has argued that the tariffs were imposed to fight
:05:28. > :05:30.artificially low prices from the mainland states and subsidised
:05:31. > :05:37.industries. They have the right to appeal the ruling. The appeals
:05:38. > :05:38.process can take six ` 12 months. While it is ongoing, duties remain
:05:39. > :05:47.in place. How long would you say it takes to
:05:48. > :05:50.design and build a military jet? To take one example, the Lock Heed
:05:51. > :05:53.Martin F35 strike fighter has been on the drawing board for more than a
:05:54. > :05:56.decade and it has still failed to make an appearance at this week's
:05:57. > :05:59.Farnborough Airshow because of engine trouble. Yet is seems if
:06:00. > :06:06.there's no government procurement contracts to worry about, well,
:06:07. > :06:09.things can happen a lot quicker. Our business correspondent Nigel Cassidy
:06:10. > :06:12.reports from Farnborough on the arrival of a military plane that has
:06:13. > :06:24.gone from drawing board to airfield in less than two years. On its way
:06:25. > :06:29.to the Farmborough The show, a military jet on a budget. It is a
:06:30. > :06:34.conference show which was designed using off`the`shelf parts. It was
:06:35. > :06:38.developed in record time because the designers went ahead if it the usual
:06:39. > :06:44.government contract specifying every single feature. The makers of the
:06:45. > :06:50.Scorpion think there is a gap in the market between the cheaper aircraft
:06:51. > :06:55.that the full`blooded $120 million planes. They are very expensive.
:06:56. > :06:59.They produced this one from the joint board to its actual flight in
:07:00. > :07:04.less than two years. They have done that by ignoring your typical
:07:05. > :07:07.military procurement processes. They are taking all the decisions
:07:08. > :07:13.themselves about what it will be like and about the parts like the
:07:14. > :07:18.ejector seats, engine, they all come off the peg. It has reduced the cost
:07:19. > :07:24.and the time of producing the plane. Now they need buyers. I think there
:07:25. > :07:31.is a market. Many countries need this. They have the requirement to
:07:32. > :07:42.be able to do this. They will try to attack when necessary. They will try
:07:43. > :07:50.to satisfy arrange of things in an affordable way. The fuselage, the
:07:51. > :07:54.wings, the structure, it has all been designed for the programme.
:07:55. > :08:04.That is what they are trying to create in terms of the mission. This
:08:05. > :08:15.is more like what we do in the commercial world. It did make it to
:08:16. > :08:16.Farnborough in two years. The joint strike fighter has not arrived yet
:08:17. > :08:25.because of engine trouble. In other news, Chinese telecom
:08:26. > :08:28.equipment maker ZTE has raised its earnings guidance for the first half
:08:29. > :08:31.of 2014, citing improving margins in its global business and revenue from
:08:32. > :08:33.new contracts to build China's next`generation telecoms network.
:08:34. > :08:40.The Shenzhen`based company expects first`half net profit of more than
:08:41. > :08:42.$160 million. Standard Chartered has begun legal
:08:43. > :08:51.proceedings against the head of a commodities trading firm suspected
:08:52. > :08:54.of loans fraud. The bank is the fourth company to start legal action
:08:55. > :08:56.to recoup losses, since Chinese authorities launched an
:08:57. > :08:58.investigation into whether a private metals trading firm, Decheng Mining
:08:59. > :09:01.and its related companies, used fake warehouse receipts as collateral to
:09:02. > :09:04.secure loans. China's flag carrier Air China has warned that its
:09:05. > :09:12.first`half earnings will fall as much as 65% year on year. It's put
:09:13. > :09:15.that down to the depreciating Chinese currency, the yuan, which it
:09:16. > :09:23.says has driven up its financial costs. It follows a similar warning
:09:24. > :09:27.last week from its rival, China Southern Airlines, which warned it
:09:28. > :09:31.could post a loss of up to $180 million for the first half, which it
:09:32. > :09:33.said is due to a weaker yuan. Hospitals in England are being given
:09:34. > :09:49.new guidelines today on safe staffing levels for nurses. Most
:09:50. > :09:56.people will be listening to Congress today. We have also got the Japanese
:09:57. > :10:00.central bank meeting. They will be presenting their latest News on
:10:01. > :10:12.military policy today. I will see you soon.
:10:13. > :10:17.Many thanks for that. Hospitals in England are being given new
:10:18. > :10:21.guidelines on safe staffing levels for nurses. They are warning that
:10:22. > :10:22.there