:00:00. > :00:00.BBC World News. Now for the latest financial news
:00:00. > :00:16.with Sally Bundock and World Business Report.
:00:17. > :00:23.Time Warner rejects a takeover by Fox, but will Rupert Murdoch take no
:00:24. > :00:32.for an answer? Plus, from the Farnborough Airshow.
:00:33. > :00:37.Beyond the black box. Tracking technology to make sure an airliner
:00:38. > :00:41.can never disappear again. Welcome to World Business Report.
:00:42. > :00:45.I'm Sally Bundock. We'll be going to Farnborough in just a moment.
:00:46. > :00:51.We start with two of the global giants of film and television.
:00:52. > :00:54.Shares of Time Warner soared on Wednesday after it revealed it had
:00:55. > :01:09.received, and rejected, a takeover offer from rival 21st Century Fox,
:01:10. > :01:11.run, of course, by Rupert Murdoch. The unsolicited offer, made last
:01:12. > :01:17.month, valued Time Warner at around 80 billion dollars ` an amount Time
:01:18. > :01:20.Warner argues is not enough. It said the company and its shareholders
:01:21. > :01:23.would be better off going it alone, and that there were "considerable
:01:24. > :01:26.risks" in doing a deal. Would the group be too big to manage? And,
:01:27. > :01:30.would regulators allow so much of the US media to be controlled by one
:01:31. > :01:34.firm? Time Warner said there would be no further discussions. However,
:01:35. > :01:36.its shares jumped 17% to around the level being offered by Fox,
:01:37. > :01:40.signalling the financial markets don't think it's over.
:01:41. > :01:49.From New York, here's Samira Hussain.
:01:50. > :01:56.Time Warner is the second`largest media conglomerate in the world, and
:01:57. > :01:59.it has piqued the interest of a persuasive suitor. It happens to be
:02:00. > :02:05.the world 's largest media conglomerate. If 21st Century Fox
:02:06. > :02:10.was successful in its bid to takeover Time Warner, it would
:02:11. > :02:15.create the world 's largest media company. With two Hollywood movie
:02:16. > :02:21.studios, local television stations across the United States, the most
:02:22. > :02:26.watched cable News network, and its closest rival, CNN, not to mention
:02:27. > :02:32.several popular American cable channels, like HBO, TNT and TBS. In
:02:33. > :02:37.order for 21st Century Fox to be successful in its takeover bid, it
:02:38. > :02:43.would have to cough up more cash. It seems to be a lowball offer, even
:02:44. > :02:47.though the premium suggested was over 20%, but a company like Time
:02:48. > :02:54.Warner is a once`in`a`lifetime opportunity. These kinds of deals
:02:55. > :02:59.rarely come around. Although Time Warner rejected 21st Century Fox is
:03:00. > :03:03.offer, this company has a very determined CEO at the helm `` 21st
:03:04. > :03:09.Century Fox'. If Rupert Murdoch sees a good deal, chances are a rebuke
:03:10. > :03:18.will not stop him. Let's talk about that in more
:03:19. > :03:24.detail. As we were saying, Rupert Murdoch, 83 years old, he is very
:03:25. > :03:31.determined. Do you think that he is going to take this rebuttal lightly?
:03:32. > :03:35.He is not the kind of person to take no for an answer. I expect the
:03:36. > :03:40.rebuff of the deal is not the end of the story. There is likely to be
:03:41. > :03:43.further negotiations and offers coming through from Rupert Murdoch.
:03:44. > :03:47.Different ends of the spectrum in terms of price, but I suspect that
:03:48. > :03:52.these two media moguls will find a mid price they can both agree on.
:03:53. > :03:56.According to some calculations, a combined company could achieve
:03:57. > :04:29.savings of something like $1 billion. There are a lot of
:04:30. > :04:31.synergies here, but it would be a huge organisation. Presumably there
:04:32. > :04:34.would be hurdles ahead for the companies, if they were going to get
:04:35. > :04:37.together. A merger of this kind is never easy. We had that with two
:04:38. > :04:39.larger publicity companies that fell apart. It would not be easy. That $1
:04:40. > :04:42.billion of savings touted, it could be achieved but would take a long
:04:43. > :04:44.time to achieve. Rupert Murdoch is looking at achieving the vast size
:04:45. > :04:47.and power to move into Latin America, where foxes not strong. ``
:04:48. > :04:50.when ??MACR O2 is not shift towards net flicks and you have to shift
:04:51. > :04:52.towards net flicks that terms of in terms of that big elements would
:04:53. > :04:55.have to be releasedthere are talks that big elements would have to be
:04:56. > :04:58.released for the OK to be given. If they were to get together. Rupert
:04:59. > :05:07.Murdoch has indicated he would sell off CNN if he was not taking the
:05:08. > :05:11.deal. CNN is an important part of Time Warner. It indicates how
:05:12. > :05:15.serious he is about the deal. It is not that it was done lightly, but he
:05:16. > :05:20.would do whatever it takes to succeed in the bed. The shift for
:05:21. > :05:23.him, as an individual, not so long ago he was before a Parliamentary
:05:24. > :05:30.Select Committee answering questions about hacking in the press. `` bid.
:05:31. > :05:36.It seems like he is back on top. You can never underestimate what he
:05:37. > :05:38.does, and that agreement shows how serious he is about maintaining
:05:39. > :05:44.dominance in the global media industry. Thank you for joining us.
:05:45. > :05:47.This is all over the newspapers, we will discuss it in detail when we
:05:48. > :05:56.reviewed the international press in ten minutes. `` review the
:05:57. > :05:59.international press. The global aviation industry and its
:06:00. > :06:03.customers are gathered this week at Farnborough in the South of England
:06:04. > :06:05.for the annual air show. The airline business was shaken by the
:06:06. > :06:08.disappearance of Malaysian Flight 370 earlier this year. Soon an
:06:09. > :06:11.industry task force is expected to set out how flight positioning and
:06:12. > :06:14.other data should be automatically transmitted from planes in flight,
:06:15. > :06:19.wherever they are in the world, so an airliner can't simply vanish.
:06:20. > :06:23.Nigel Cassidy sends this report. When you come here, to the
:06:24. > :06:26.Farnborough Airshow, you can get so close to huge aeroplanes like this
:06:27. > :06:33.one. You are struck immediately by the contrast between the
:06:34. > :06:39.sophistication, data communication, and the fact that, perish the
:06:40. > :06:42.thought, one of these goes missing over a large ocean, and the thing
:06:43. > :06:50.that you would have to find to discover what happened would be a
:06:51. > :06:54.small black, which is actually an orange, box. It is kept under the
:06:55. > :06:59.tail fin. Finding the box would not be so crucial if aircraft streamed
:07:00. > :07:04.their position to a virtual database, a black box in the cloud.
:07:05. > :07:08.Aircraft are being tracked already across the globe. One of the issues
:07:09. > :07:13.we have is that there is no mandate repossession for aircraft to be
:07:14. > :07:17.tracked everywhere. The only area they are insistently tracked is the
:07:18. > :07:20.North Atlantic, because of the commercial advantage of hacking the
:07:21. > :07:24.aircraft and getting more volume. The work here by the European space
:07:25. > :07:30.agency, and others, is to ensure Iris, a new development of traffic
:07:31. > :07:33.control, can be brought forward to deal with the crowded skies over
:07:34. > :07:38.Europe. Is it true that there is only one person in the driving seat?
:07:39. > :07:41.This is available today, the newest broadband technology could deliver
:07:42. > :07:47.more data from aeroplanes. But, operators do not want to pay for it?
:07:48. > :07:52.Inmarsat is already installed on the flight decks of over 80% of the
:07:53. > :07:55.worlds aircraft, and is capable of handling the tracking. The
:07:56. > :08:00.difficulty is that the airlines and the airline regulators have to make
:08:01. > :08:04.a decision. Is it any longer acceptable for aircraft not to be
:08:05. > :08:08.tracked? As soon as they make that simple decision, we hope they will
:08:09. > :08:12.do that in September at the Montreal conference, then they make the
:08:13. > :08:16.decision on how they can fix it now and later. Some airlines are not
:08:17. > :08:20.waiting to be told to stream the black box data. Even if it is made
:08:21. > :08:26.mandatory, getting automated tracking of the worlds 93,000 daily
:08:27. > :08:30.flights will take several years. Nigel Cassidy, BBC News,
:08:31. > :08:33.Farnborough. In other news: The US has imposed
:08:34. > :08:35.its most wide ranging sanctions yet on Russia, targeting oil giant
:08:36. > :08:41.Rosneft, as well as several arms firms and senior officials.
:08:42. > :08:45.President Obama said Moscow had failed to take the key steps needed
:08:46. > :08:48.to stop an escalation of violence in Ukraine. The European Union has also
:08:49. > :08:50.agreed to block new loans to Russia by two multilateral lenders, the
:08:51. > :08:55.European Investment Bank and European Bank for Reconstruction and
:08:56. > :08:58.Development. Australia's Senate has voted to
:08:59. > :09:02.scrap the country's carbon tax and plans for emissions trading, which
:09:03. > :09:05.was due to begin next year. It is a major victory for conservative Prime
:09:06. > :09:17.Minister Tony Abbott, who campaigned on the issue in last year's
:09:18. > :09:20.election. Australia is one of the world's biggest carbon emitters on a
:09:21. > :09:23.per capita basis, and abandoning plans for the world's second largest
:09:24. > :09:27.emissions trading scheme after Europe, is a major setback for
:09:28. > :09:32.global CO2 trading. Let's have a look at the financial
:09:33. > :09:36.markets, once again, we had the Dow Jones industrial average closing at
:09:37. > :09:44.a record high. That was in the United States. A lot of that is to
:09:45. > :10:00.do with the flurries surrounding Time Warner. I will see you soon.
:10:01. > :10:05.MPs are calling for a ban on the use of B accommodation for teenagers
:10:06. > :10:06.who are in local authority