:00:00. > :00:00.which aims to eradicate female genital mutilation as well as child
:00:00. > :00:00.marriage within a decade. Now it is time for World Business
:00:00. > :00:23.Report with Sally Bundock. Russia prepares for tougher
:00:24. > :00:27.sanctions from the EU. We assess which countries could be the winners
:00:28. > :00:32.and losers if it is pushed into economic isolation.
:00:33. > :00:37.With two weeks to go until Argentina defaults, one New York billionaire
:00:38. > :00:47.thinks he is closing in on a multi`million dollar payday.
:00:48. > :00:49.Hello and welcome. You are with World Business Report. Also in the
:00:50. > :00:54.programme: With hours to go until the results
:00:55. > :00:58.announced we take a look at which presidential candidate investors
:00:59. > :01:03.want to win in Indonesia. In a few hours time European foreign
:01:04. > :01:06.ministers are meeting in Brussels to discuss further sanctions on Russia.
:01:07. > :01:10.Following pressure from Barack Obama, three leading EU powers,
:01:11. > :01:16.Britain, France and Germany, have said they are willing to push for
:01:17. > :01:21.measures which would place whole sections of the Russian economy
:01:22. > :01:26.under sanction. Let's have a look at what this means. Despite strong
:01:27. > :01:31.political rhetoric there are concerns about what this could do
:01:32. > :01:36.for home economies. Russia is a key trading partner with many European
:01:37. > :01:42.nations. Despite the escalating situation, the French still planned
:01:43. > :01:49.to make and sell two assault ships worth $1.6 billion to Russia. This
:01:50. > :01:53.is why France says specific companies should be targeted, not
:01:54. > :01:58.entire sectors of the economy. For Germany, Russia import industrial
:01:59. > :02:03.machinery as well as trains, cars, medicines. More than 6000 German
:02:04. > :02:10.companies are registered in Russia. In the UK it is the city of London
:02:11. > :02:13.that is at risk if blanket financial sanctions were implemented. The city
:02:14. > :02:20.provides extensive services to Russian corporations and it would be
:02:21. > :02:25.hit hard. Wealthy Russians have invested an estimated $46 billion in
:02:26. > :02:30.the UK economy. Targeting individuals could end this flow of
:02:31. > :02:38.capital. It is a TWO`WAY street. Russia needs its European trading
:02:39. > :02:44.partners. EU countries import 84% of oil. This could send Russia into a
:02:45. > :02:51.deep and protracted recession if it collapses. The talk through what is
:02:52. > :02:56.at stake, we are going to look at several countries but firstly we
:02:57. > :03:00.will start with the UK. I am joined by the head of economic research at
:03:01. > :03:06.Open Europe. We have outlined some of the issues. The UK finance
:03:07. > :03:12.minister Chancellor George Osborne has said we must be braced for
:03:13. > :03:17.economic impact. How big a hit could this be? There has been a lot of
:03:18. > :03:21.talk about the links between the city of London and Russia but they
:03:22. > :03:32.are probably not as huge as made out. In 2012 Russia accounted for
:03:33. > :03:37.1%... 0.5% of total investment in Europe into the UK. There are
:03:38. > :03:41.sizeable amounts because London is a global financial centre, any hits
:03:42. > :03:47.would be manageable. There would be losses but it could be withstood.
:03:48. > :03:50.What about sanctions on individuals? We have supposedly a lot of Russian
:03:51. > :03:56.billionaires who are spending money and buying assets in London. There
:03:57. > :04:00.are certainly a disproportionate number of billionaires in London.
:04:01. > :04:04.How much money is held here is a good question. A lot of people talk
:04:05. > :04:07.about this without having looked at the data. We have to remember that
:04:08. > :04:13.when you look at the flows of money out of Russia, a lot of it goes
:04:14. > :04:17.through certain countries, Cyprus, the Netherlands, the British Virgin
:04:18. > :04:22.Islands. These countries will have arrangements which make money hard
:04:23. > :04:29.to track. It is a fair question to ask how effectively the sanctions
:04:30. > :04:38.can be enforced and how the money can be tracked to the billionaires.
:04:39. > :04:43.What about companies like BP? The question there is retaliation. There
:04:44. > :04:52.is an amount of capital from the UK into Russia. There will be concern
:04:53. > :04:55.about business there. It is a question of retaliation, what will
:04:56. > :05:02.Russia do, how will it respond to these harsh measures if they come
:05:03. > :05:06.about? There have been rumours of asset freezes, capital controls.
:05:07. > :05:11.Thank you for coming in from Open Europe. We will be discussing in
:05:12. > :05:19.detail the economic factors that could influence the edge and German
:05:20. > :05:23.officials later on. Argentina is less than two weeks
:05:24. > :05:27.away from default. The latest hearing in New York today is aimed
:05:28. > :05:34.at resolving the stand`off between it and hold out investors. One New
:05:35. > :05:38.York hedge fund has refused to accept Argentina's rescheduling of
:05:39. > :05:42.debts. This report from Wall Street on the Titan pushing Argentina to
:05:43. > :05:46.the brink. When it comes to distressed
:05:47. > :05:56.investing, few can match him. The 30th floor is home to a hedge fund
:05:57. > :06:01.co`founded by Paul Singer. He made his name as a vulture investor,
:06:02. > :06:05.buying up the debt of bankrupt companies and countries and
:06:06. > :06:10.negotiating his way to profit. In 1996 he bought up some of the rue's
:06:11. > :06:17.debt for $11 million. He said the route would pay them back in full or
:06:18. > :06:23.be sued. He got his $58 million. This time it is Argentina in his
:06:24. > :06:29.sights. Paul Singer, a key fundraiser for the Republicans, seen
:06:30. > :06:32.here with Mitt Romney, may be weeks away from collecting hundreds of
:06:33. > :06:39.millions of dollars. Not a bad return on an investment of $48
:06:40. > :06:44.million. The heavily discounted Argentinian debt. How did this the
:06:45. > :06:47.11 year battle start? In 2001 Argentina defaulted on debt. 93% of
:06:48. > :06:53.its lenders agreed to be repaid less. A few holdout creditors
:06:54. > :07:00.including Paul Singer refused to go along. They sued and won. He is a
:07:01. > :07:05.very tenacious investor. He will stop at nothing. Argentina is
:07:06. > :07:09.learning that. He is learning that Argentina is about as tenacious as
:07:10. > :07:14.he is. They are not taking it lying down? Argentina is cutting deals
:07:15. > :07:20.with China, Russia, telling everyone that this is a political issue, this
:07:21. > :07:25.isn't just a financial issue. After waiting more than a decade, Paul
:07:26. > :07:29.Singer wants his money. If Argentina refuses to pay by the end of the
:07:30. > :07:38.month, the country will default. It is a lose lose situation for all
:07:39. > :07:42.involved. Indonesia is hours away from
:07:43. > :07:47.unveiling its election results. The presidential vote that took place on
:07:48. > :07:51.July the 9th is reportedly the closest race in over a decade.
:07:52. > :07:56.Concerns are mounting now that the transition of power will not run
:07:57. > :08:01.smoothly. It is increasingly worrying investors. We get more from
:08:02. > :08:06.Rico Hizon on in our Asia business hub. Tell us what the likely outcome
:08:07. > :08:13.is going to be. This is indeed the moment of truth.
:08:14. > :08:20.We will find out today who will be the next President of Indonesia.
:08:21. > :08:26.Looking at most private tallies of official results, they give it to
:08:27. > :08:34.the Jakarta Governor Joko Widodo. Over the weekend his opponent
:08:35. > :08:36.accused the election commission of failing to investigate widespread
:08:37. > :08:46.cheating in the polls and warned he will not accept the election results
:08:47. > :08:54.and suggested officials recount the results in Jakarta. The uncertainty
:08:55. > :09:00.is making markets quite jittery. In early Jakarta trading the benchmark
:09:01. > :09:09.index is slightly down by one fifth of a percent. It was up on Monday
:09:10. > :09:16.admits to news of a victory. If the results are challenged this could
:09:17. > :09:33.hurt rallying stocks which are up. It could lead to more uncertainty.
:09:34. > :09:37.A few more business stories. Yahoo has bought Ferrari. It is thought to
:09:38. > :09:46.be the biggest acquisition since they bought a blogging platform in
:09:47. > :09:58.2012. Yahoo said it will target advertising at smart phone users.
:09:59. > :10:05.Netflix reported $71 million for the second quarter. Later today we will
:10:06. > :10:20.have earning news from Apple, McDonald's, Coca`Cola. These are the
:10:21. > :10:24.markets in Asia: China's president has done a deal
:10:25. > :10:28.with Venezuela including a credit line to the country in return for
:10:29. > :10:34.crude oil and other minerals. An interesting story emerging in South
:10:35. > :10:50.America. In the UK, the senior lawyer who
:10:51. > :10:52.reviewed the government's anti` terror legislation is expected to
:10:53. > :10:53.call