15/07/2014 World Business Report

nominate a new president on Wednesday. The nomination of John

Lott `` Jean Claude Juncker is expected to pass with little

difficulty. Those are the latest headlines from BBC World News. Now

for the latest financial news in World Business Report. Banking on a

better deal ` the BRIC nations forge ahead with their plans to form a

development bank but is China too dominant?

From the drawing board to the runway in less than two years ` we look at

a new way to build cheaper military jets.

Welcome to World Business Report. I'm Sally Bundock. Also in the

programme: We gauge the reaction in China to the World Trade

Organization's ruling on the solar panel dispute between China and the

US. But first, the sixth summit of the group of emerging economies

known as the BRICS, or Brazil, Russia, India, China and South

Africa, gets under way in north`eastern Brazil's Fortaleza

today. There are plans for a BRICS development bank. It would be under

the control of the people who would draw on it rather than institutions

they say are too close to western governments such as the

International Monetary Fund. Acronym aside, the BRICS countries are a

diverse group of nations, and in a moment we'll hear from our reporters

across the globe about what the different nations are hoping for

from the summit. First, Katy Watson sets the scene from Brazil.

Fresh from the World Cup, the president will play host to the

leaders of the BRICS economies. The summit is under way. Finance

ministers, central bankers and business leaders were talking on

Monday. There has been a lot of talk about potential. Trade is relatively

small. The big exception is China. All BRICS countries trade

extensively with China because of its first four commodities but there

is concern that the man is slowing down. Perhaps it is fitting that the

summit will decamp to Brazil on Wednesday. BRICS leaders will meet

with leaders from South America. Brazil is trying to prove itself as

a regional leader and improve relationships between the region and

begged economic superpowers. `` bid. Let's travel to the other

side of the globe and hear what the biggest member of the BRICS group,

China, wants to achieve. Here's John Sudworth in Shanghai.

In China, the focus ahead of the summit has been known to things, the

setting up of the much talked about BRICS development group and, beyond

that type of detail, there has been focused on the wider and continuing

importance of the BRICS gripping itself. An editorial published by

and news agency Elan bass what it calls the shortsighted western view

that somehow the BRICS miracle is over. There have been stiff economic

headwinds but it has far outstripped those of the developed economies.

The article suggests the BRICS grouping will be an important part

of international growth for years to come. There will be focused on an

important bilateral relationship within the grouping with India,

China, and the first meeting between their presence. It is a reminder

that, I'm at the top of cooperation and contingent reserve

arrangements, there is still rivalry here. Ellie wants to reduce the

trade deficit with Beijing and the thorny issue of the border dispute.

`` Deli. And we'll hear from our correspondents in the other BRICS

countries throughout the morning. The World Trade Organisation finds

the United States violated trade rules when it imposed tariffs on

Chinese steel products, solar panels and other goods. Rico Hizon is in

our Asia Business Hub in Singapore. I would imagine China is pleased

about this. Very pleased. Rousing positive

excitement for the Chinese solar panel makers of the judges sided

with the Chinese and said the import tariffs on solar panels were unfair.

It was against the agreement which was signed in 1994. A lot of

excitement, particularly for the likes of China. Energy is up by 11%

right now in China. Green energy Holdings are also up. Many solar

companies seeing gains of around four `6%. China is urging the

Americans to respect this ruling and correct the wrongdoings of abusively

using trade remedy measures to ensure environment of fear

competition for China. That is according to the government. The US,

meanwhile, has argued that the tariffs were imposed to fight

artificially low prices from the mainland states and subsidised

industries. They have the right to appeal the ruling. The appeals

process can take six ` 12 months. While it is ongoing, duties remain

in place. How long would you say it takes to

design and build a military jet? To take one example, the Lock Heed

Martin F35 strike fighter has been on the drawing board for more than a

decade and it has still failed to make an appearance at this week's

Farnborough Airshow because of engine trouble. Yet is seems if

there's no government procurement contracts to worry about, well,

things can happen a lot quicker. Our business correspondent Nigel Cassidy

reports from Farnborough on the arrival of a military plane that has

gone from drawing board to airfield in less than two years. On its way

to the Farmborough The show, a military jet on a budget. It is a

conference show which was designed using off`the`shelf parts. It was

developed in record time because the designers went ahead if it the usual

government contract specifying every single feature. The makers of the

Scorpion think there is a gap in the market between the cheaper aircraft

that the full`blooded $120 million planes. They are very expensive.

They produced this one from the joint board to its actual flight in

less than two years. They have done that by ignoring your typical

military procurement processes. They are taking all the decisions

themselves about what it will be like and about the parts like the

ejector seats, engine, they all come off the peg. It has reduced the cost

and the time of producing the plane. Now they need buyers. I think there

is a market. Many countries need this. They have the requirement to

be able to do this. They will try to attack when necessary. They will try

to satisfy arrange of things in an affordable way. The fuselage, the

wings, the structure, it has all been designed for the programme.

That is what they are trying to create in terms of the mission. This

is more like what we do in the commercial world. It did make it to

Farnborough in two years. The joint strike fighter has not arrived yet

because of engine trouble. In other news, Chinese telecom

equipment maker ZTE has raised its earnings guidance for the first half

of 2014, citing improving margins in its global business and revenue from

new contracts to build China's next`generation telecoms network.

The Shenzhen`based company expects first`half net profit of more than

$160 million. Standard Chartered has begun legal

proceedings against the head of a commodities trading firm suspected

of loans fraud. The bank is the fourth company to start legal action

to recoup losses, since Chinese authorities launched an

investigation into whether a private metals trading firm, Decheng Mining

and its related companies, used fake warehouse receipts as collateral to

secure loans. China's flag carrier Air China has warned that its

first`half earnings will fall as much as 65% year on year. It's put

that down to the depreciating Chinese currency, the yuan, which it

says has driven up its financial costs. It follows a similar warning

last week from its rival, China Southern Airlines, which warned it

could post a loss of up to $180 million for the first half, which it

said is due to a weaker yuan. Hospitals in England are being given

new guidelines today on safe staffing levels for nurses. Most

people will be listening to Congress today. We have also got the Japanese

central bank meeting. They will be presenting their latest News on

military policy today. I will see you soon.

Many thanks for that. Hospitals in England are being given new

guidelines on safe staffing levels for nurses. They are warning that

there