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Rickie Fowler. Those are the latest headlines from BBC News. Now for the | :00:00. | :00:00. | |
latest financial news with Sally Bundock and World Business Report. | :00:00. | :00:17. | |
Increasing the pressure on Putin ` we look at the tougher sanctions | :00:18. | :00:20. | |
that could be imposed on Russia as European leaders meet this week. | :00:21. | :00:29. | |
Preparing to do business with Iran, as talks for a nuclear deal make | :00:30. | :00:32. | |
tangible progress, companies in the Middle East get ready to take | :00:33. | :00:43. | |
advantage. Welcome to World Business Report. I'm Sally Bundock. Also in | :00:44. | :00:48. | |
the programme: We hear how the company Malaysian Airlines is set to | :00:49. | :00:52. | |
weather this latest tragedy. But first: Increasing the pressure on | :00:53. | :00:58. | |
Putin. The leaders of Britain, France and Germany are preparing to | :00:59. | :01:01. | |
impose tougher sanctions on Russia. As international shock and anger | :01:02. | :01:03. | |
intensifies over the shooting down of Malaysian Airlines flight MH17, | :01:04. | :01:06. | |
so western leaders are calling for Russia to play its part in allowing | :01:07. | :01:09. | |
accident investigators to have full access to the crash site in Eastern | :01:10. | :01:12. | |
Ukraine. Tomorrow the European Union's Foreign Affairs Council will | :01:13. | :01:15. | |
meet to discuss what measures should be taken. With me now is Nina Schick | :01:16. | :01:30. | |
of Open Europe. There is a lot of pressure on the EU to impose more | :01:31. | :01:35. | |
sanctions on Russia, particularly from the United States, what action | :01:36. | :01:39. | |
do you think the EU might take? Well they could move very quickly on | :01:40. | :01:43. | |
this, because now this has become an international incident. A lot of | :01:44. | :01:47. | |
European citizens have died. So far what the EU has done is take | :01:48. | :01:50. | |
targeted sanctions on 72 individuals, these are, dance, and | :01:51. | :01:56. | |
asset freezes, on companies operating out of Premier `` visa | :01:57. | :02:02. | |
bans. They could take more sanctions on companies close to Britain's | :02:03. | :02:08. | |
inner circle, and also that have a massive impact on the economy `` | :02:09. | :02:14. | |
President Putin's inner circle. The EU will also have to find agreement | :02:15. | :02:18. | |
within the 28 member states, and that has not always been easy, which | :02:19. | :02:23. | |
is why the EU has always been a step high in the US when it it comes to | :02:24. | :02:26. | |
sanctions. Let's talk about that difficulty. For some EU member | :02:27. | :02:31. | |
states like Germany, it isn't so easy to impose tougher sanctions. | :02:32. | :02:36. | |
Will obviously Germany has always traditionally played as a bridge and | :02:37. | :02:39. | |
mediating role between East and West. And the German public has been | :02:40. | :02:43. | |
tremendously opposed to taking further sanctions on Russia. Now | :02:44. | :02:46. | |
this might change things. I was reading in the German papers this | :02:47. | :02:51. | |
morning, you know, saying this is a game changer. Germany does have | :02:52. | :02:54. | |
strong economic links with Russia. However, in the last few weeks the | :02:55. | :02:58. | |
German position has significantly toughened. They have banned exports | :02:59. | :03:02. | |
of any weapons to Russia from Germany already. And I think we will | :03:03. | :03:05. | |
hear what the fact had been established, some strong language | :03:06. | :03:10. | |
from Germany as well. If we were looking at more full`blown | :03:11. | :03:13. | |
sanctions, in the energy sector for example, how would that play out? | :03:14. | :03:18. | |
Some countries in the Baltic states are almost 100% reliant on energy | :03:19. | :03:22. | |
coming from Russia. Another thing the EU could do before resorting to | :03:23. | :03:29. | |
fall on energy sanctions is to try and squeeze Russian companies out of | :03:30. | :03:32. | |
capital markets. They could also target European exports to Russia, | :03:33. | :03:37. | |
which Russia is dependent on. Things like machinery, medicine, these are | :03:38. | :03:41. | |
things that Russia would be able to source easily from other places. If | :03:42. | :03:45. | |
it came to full`blown energy sanctions, the EU is still 30% | :03:46. | :03:49. | |
dependent on Russia for its energy imports. And it doesn't have the | :03:50. | :03:54. | |
infrastructure in place to be able to source liquefied natural gas, it | :03:55. | :03:57. | |
doesn't have the ports in place to be able to source that. However, | :03:58. | :04:02. | |
they are working very hard to diversify their energy supply, away | :04:03. | :04:06. | |
from Russia, and indeed that is one of the priorities for the new | :04:07. | :04:11. | |
commission. We appreciate your analysis from Open Europe, very | :04:12. | :04:14. | |
interesting. We will keep you across any developments in terms of what EU | :04:15. | :04:19. | |
leaders decide, on BBC World News. So that's how leaders in the West | :04:20. | :04:22. | |
are reacting to this tragedy. But how about the bosses of Malaysian | :04:23. | :04:25. | |
Airlines? It's hard enough for an airline to rebound from one | :04:26. | :04:28. | |
disaster, let alone two within the space of a few months. Last week | :04:29. | :04:31. | |
shares in the company plummeted. Joining me now is Rico Hizon from | :04:32. | :04:34. | |
our Asia business hub in Singapore. So Rico, does it look like Malaysian | :04:35. | :04:38. | |
Airlines will be able to bounce back from this second disaster? Not just | :04:39. | :04:44. | |
for the company, but for Asians in general, this is such an awful | :04:45. | :04:50. | |
tragedy. Again, hitting the specific company but also for people thinking | :04:51. | :04:54. | |
about travelling, for loved ones who have lost people, it is extremely | :04:55. | :04:59. | |
difficult, isn't it? Absolutely. It really is. Very sad, what has | :05:00. | :05:06. | |
happened to Malaysia Airlines, and when you speak with analysts here | :05:07. | :05:10. | |
and with many Asians, they start to fear about travelling in the | :05:11. | :05:15. | |
region. Especially given what happened to Malaysia Airlines. It is | :05:16. | :05:20. | |
hard enough for an airline to rebound from one disaster, let alone | :05:21. | :05:24. | |
to within the space of a few months. And even before the disappearance of | :05:25. | :05:30. | |
MH370, Malaysia Airlines was already struggling `` let alone and two. Is | :05:31. | :05:34. | |
there any hope that the carrier can rebound after such a rough year? | :05:35. | :05:38. | |
Earlier I spoke with an aviation analyst who says the firm now has | :05:39. | :05:46. | |
three options. Firstly, they can continue as is. They can pour money | :05:47. | :05:53. | |
into the airline. But I don't think that is a viable long`term option. I | :05:54. | :05:57. | |
think they can look at doing something similar to Japan airlines | :05:58. | :06:04. | |
and could put it into bankruptcy. Thirdly, they could look at | :06:05. | :06:10. | |
potentially privatising the airline. I also asked whether this recent | :06:11. | :06:16. | |
incident could impact other Asian carriers, and regional travel? I | :06:17. | :06:23. | |
think it will, without a doubt. Already long`distance travel has | :06:24. | :06:26. | |
been challenged since the Asian financial crisis. Lack of safety | :06:27. | :06:31. | |
should be the number one concern for all airlines, creating problems for | :06:32. | :06:36. | |
consumers looking to travel those distances. After sharp falls on | :06:37. | :06:41. | |
Friday of 11%, Malaysia airlines stock has slipped another 2.5% | :06:42. | :06:45. | |
today. The share price is down about 40% on the year. Thank you very | :06:46. | :06:52. | |
much. Diplomats have agreed a four`month extension to the deadline | :06:53. | :06:54. | |
for an agreement between Iran and world powers on its controversial | :06:55. | :06:57. | |
nuclear programme. Discussions have been taking place for months now, | :06:58. | :06:59. | |
and on Saturday ended following tangible progress on some issues | :07:00. | :07:02. | |
according to America's Secretary of State John Kerry. The US says it | :07:03. | :07:05. | |
will unblock $2.8 billion in frozen Iranian funds, in return for Iran | :07:06. | :07:08. | |
continuing to convert its enriched uranium into fuel. The new deadline | :07:09. | :07:11. | |
is November 24th. The talks have aimed to persuade Iran to limit its | :07:12. | :07:14. | |
nuclear programme in exchange for the lifting of sanctions. While the | :07:15. | :07:16. | |
negotiators talk, companies have been busy re`building business | :07:17. | :07:18. | |
relations with their Iranian counterparts, hoping that a deal | :07:19. | :07:23. | |
will be done. Mark Lobel reports from Dubai, on the firms hoping that | :07:24. | :07:27. | |
an opening up of trade with Iran is sooner rather than later. At this | :07:28. | :07:48. | |
registration in Dubai `` at this freight station in Dubai's port, | :07:49. | :07:56. | |
imports have been halted to placate American clients. Recently companies | :07:57. | :07:59. | |
from across the world have signalled a change in direction by setting up | :08:00. | :08:04. | |
potential investment fund sharing presentations, and initiating ties | :08:05. | :08:08. | |
with this is in Iran. That has led this shipping group's vice president | :08:09. | :08:12. | |
to believe that companies in the US may be left behind if sanctions are | :08:13. | :08:17. | |
lifted. A view he is slowly waking up to. I would say there are a lot | :08:18. | :08:22. | |
of regional offices here sending information back to the Americans, | :08:23. | :08:24. | |
doing market research and studies, winding out what the runny and | :08:25. | :08:30. | |
market needs. Investors are already focused on Iran's you'd oil | :08:31. | :08:34. | |
reserves, and the many undeveloped statements of the economy in a | :08:35. | :08:38. | |
country of almost 18 million people. Many large international | :08:39. | :08:41. | |
companies are now exploring the possibility of doing business in | :08:42. | :08:46. | |
Iran. Mostly at arms length. But many smaller ones from around the | :08:47. | :08:49. | |
world have already made the trip to Tehran, and have been welcomed with | :08:50. | :08:53. | |
open arms by representatives from the uranium chamber of commerce. I | :08:54. | :08:58. | |
visited the Metro, which has an engineer I was very interested in. | :08:59. | :09:02. | |
This structural engineer visited Tehran a few weeks ago with other | :09:03. | :09:05. | |
French as men and women from Dubai. They met with representatives from | :09:06. | :09:12. | |
small and medium`size companies. Several of them have come back from | :09:13. | :09:17. | |
to me, and we are now negotiating agreements with them. They are | :09:18. | :09:22. | |
expecting for me to bring obviously new technology, new design. But one | :09:23. | :09:31. | |
senior risk advertiser who just visited Tehran said that even if | :09:32. | :09:34. | |
sanctions go, companies need to abide by human rights and terrorism | :09:35. | :09:38. | |
sanctions. You have to be very cognisant, because of the stifling | :09:39. | :09:42. | |
bureaucracy, of the corruption risk. There is a Labour risk in that there | :09:43. | :09:46. | |
is not an awful lot of talent and Iran, in Iran at the moment. Despite | :09:47. | :09:51. | |
the risks. Companies across the world are now jockeying for | :09:52. | :09:54. | |
position. Some analysts predict Iran could become the world's largest | :09:55. | :09:59. | |
emerging market if it economic isolation ends. In other news: A US | :10:00. | :10:07. | |
court has ordered the country's second largest cigarette company to | :10:08. | :10:11. | |
pay $23.6 billion to the wife of a smoker who died of lung cancer in | :10:12. | :10:14. | |
1996. During a four`week trial, lawyers argued that RJ Reynolds was | :10:15. | :10:17. | |
negligent in informing consumers of the dangers of consuming tobacco. | :10:18. | :10:20. | |
Emerging and frontier market countries have borrowed a record of | :10:21. | :10:24. | |
nearly $70 billion in the first half of this year, even as central | :10:25. | :10:26. | |
bankers warn that debt market euphoria could be storing up trouble | :10:27. | :10:32. | |
for the future. After 97 years of family ownership, a majority stake | :10:33. | :10:35. | |
in Forbes Media has been sold to a Hong Kong`based group of | :10:36. | :10:37. | |
international investors called Whale Media Investments. Forbes Media, | :10:38. | :10:39. | |
which includes Forbes magazine, was sold to Integrated Whale Media | :10:40. | :10:50. | |
Investments for an undisclosed sum. That's the latest business news. I | :10:51. | :10:55. | |
will see you soon to look through the papers. We will take a look at | :10:56. | :11:10. | |
the papers, but first: The government will today set out how | :11:11. | :11:13. | |
new pension reforms, announced in the Budget in March, will actually | :11:14. | :11:16. | |
work. Under the new rules, retirees will be able to cash in their | :11:17. | :11:19. | |
pension funds and spend the money as they please. And they will have the | :11:20. | :11:23. | |
right to free and impartial advice to help them. Here is our business | :11:24. | :11:25. | |
correspondent, Theo | :11:26. | :11:26. |