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