12/09/2014

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:00:00. > 3:59:59News. Now for the latest financial news with Alice Baxter and World

:00:00. > :00:23.Business Report. Safety before competition. The boss

:00:24. > :00:27.of Emirates says rival airlines knew about the risk of missiles in

:00:28. > :00:29.Eastern Ukraine and failed to pass on the information.

:00:30. > :00:32.Plus, posh frocks and big bucks. Britain's multi billion dollar

:00:33. > :00:43.fashion industry hits the catwalk as London Fashion Week gets under way.

:00:44. > :00:49.Welcome to World Business Report. I'm Alice Baxter. In a minute,

:00:50. > :00:52.tougher new sanctions EU and US sanctions on Russia come into force,

:00:53. > :00:58.we'll be asking who stands to lose out. But first... The shooting down

:00:59. > :01:05.of Malaysian airliner MH17 over Ukraine in July provoked horror and

:01:06. > :01:09.condemnation around the world. It has also sparked a fierce debate

:01:10. > :01:12.within the aviation industry. The question: should airlines share

:01:13. > :01:20.information on possible dangers with rivals? One very senior figure says

:01:21. > :01:22.it has to start happening now. Emirates Airlines president Tim

:01:23. > :01:25.Clark has told the BBC that some airlines had long been aware of the

:01:26. > :01:28.presence of Russian missile launchers in the area and were

:01:29. > :01:38.taking evasive action but failed to pass that information on. Here's

:01:39. > :01:45.what Mr Clark had to say. MH17 was a game changer for us is

:01:46. > :01:48.for the first time, there was evidence that these missiles had

:01:49. > :01:59.been on site for a number of weeks beforehand. I can say that we did

:02:00. > :02:03.not know about that fact. We had a concern that that information was

:02:04. > :02:11.known by certain stakeholders and entities and should have been passed

:02:12. > :02:15.to a number of other... At least to the organizations that control the

:02:16. > :02:19.industry and regulate it. We understand that certain carriers

:02:20. > :02:24.were aware of that and had taken evasive action. I have been very

:02:25. > :02:31.vocal about the need to share that information within the industry.

:02:32. > :02:33.That we need to establish an information clearinghouse which

:02:34. > :02:39.helps all of us as an industry stop some have said that there are

:02:40. > :02:46.competitive issues but one thing is for certain, none of us within this

:02:47. > :02:51.industry will ever compromise our safety, however hard we compete

:02:52. > :02:59.against each other and therefore, the notion that the various

:03:00. > :03:06.organizations should take the lead on this is something that I have

:03:07. > :03:13.very strong support for, from all of my peer group airlines, all of whom

:03:14. > :03:26.are competitors and all of whom agree, as an industry, this should

:03:27. > :03:28.be done and done quickly. Glamorous, glitzy and incredibly

:03:29. > :03:31.lucrative. The multi`billion dollar global fashion industry descends on

:03:32. > :03:33.London for a week starting today. From the designers marketing their

:03:34. > :03:37.latest creations to the buyers hoping to spot the trends that will

:03:38. > :03:40.get us spending, it's a crucial time for everyone in the business.

:03:41. > :03:45.Fashion is increasingly important to the economy here in the UK. To give

:03:46. > :03:48.you an idea?It will contribute a record 26 billion pounds to the

:03:49. > :03:52.economy this year according to the British Fashion Council. That's

:03:53. > :03:56.twice what the car industry contributes. London Fashion Week

:03:57. > :04:04.itself generates around 100 million pounds of orders each season. And

:04:05. > :04:07.it's growing fast, sales of UK designer fashion have risen 20% each

:04:08. > :04:10.year over the last decade despite swings in the economy. This is also

:04:11. > :04:16.one of the few industries dominated by young women. Seven out of ten

:04:17. > :04:20.workers in UK fashion are female and half are under 30. Samira Hussain

:04:21. > :04:29.has been to meet one young designer hoping to make it big this year.

:04:30. > :04:36.It is down to the final touches and this young designer is attending to

:04:37. > :04:42.every detail. But instead of the traditional catwalk, she is doing

:04:43. > :04:47.something a little different. This season, I am doing an exhibition as

:04:48. > :04:49.a house which means that people can come up close to my garments and

:04:50. > :05:01.touch them and see the print on them. That is what my methods are

:05:02. > :05:08.based on, hand printing and screen based effects so it will be nice for

:05:09. > :05:13.people to come and see that. She has even created a film to showcase her

:05:14. > :05:17.work. More and more designers are doing just that using interactive

:05:18. > :05:23.and digital ways to model their collections. But it doesn't mean

:05:24. > :05:28.this year will be without some of the more traditional events at

:05:29. > :05:33.London Fashion Week. Organisers are putting the finishing touches on the

:05:34. > :05:37.main venue. Does behind me is where the catwalk will be and dozens

:05:38. > :05:46.designers are putting on shows at a dizzying pace. Almost one every half

:05:47. > :05:51.hour for the next five days. London Fashion Week also means big business

:05:52. > :05:58.as British designers look to expand internationally. But the uncertainty

:05:59. > :06:04.in some parts of Europe and economics sluggishness in some parts

:06:05. > :06:09.of Asia in some of the top Rams could falter in those markets. The

:06:10. > :06:16.slowdown in China could affect some of the bigger brands. It is a huge

:06:17. > :06:25.opportunity for younger designers for them to enter into some of the

:06:26. > :06:36.top tier cities. This could mean more possibilities for up`and`coming

:06:37. > :06:39.designers like this one. As you have been hearing, tougher

:06:40. > :06:43.economic sanctions on Russia by the US and the European Union are due to

:06:44. > :06:45.take effect from today. There will be further restrictions on Russia's

:06:46. > :06:48.access to EU capital markets, as well as curbs on European loans to

:06:49. > :06:53.five major Russian state`owned banks. 24 new names will also be

:06:54. > :06:56.added to the list of Russian officials and Ukrainian separatist

:06:57. > :07:04.leaders subject to visa bans and asset freezes. Christopher Granville

:07:05. > :07:10.is from consultants Trusted Sources. Not a good day for Russia. We are

:07:11. > :07:13.also expecting its energy sector to be hit quite dramatically for the

:07:14. > :07:20.first time on this latest round of sanctions, aren't we? For the first

:07:21. > :07:23.time in European Union sanctions although they are merely following

:07:24. > :07:28.in the footsteps of the United States which took this action back

:07:29. > :07:34.in July. But these measures are extremely long`term. They had to do

:07:35. > :07:39.with trying to prevent, in the long run, the most advanced technologies

:07:40. > :07:43.for drilling oil and gas in the most challenging environments from being

:07:44. > :07:47.made available to Russia. It would have to produce and themselves or

:07:48. > :07:55.get them from Asia or South America. This is not designed to

:07:56. > :07:57.hamper oil and gas production today which would be extremely damaging

:07:58. > :08:04.for the world economy and for Europe. The important thing for the

:08:05. > :08:08.economy and for the financial markets are the measures you just

:08:09. > :08:14.mentioned to stop stopping market and capital flows to major

:08:15. > :08:21.state`owned banks in Russia. This is much more serious in the short run.

:08:22. > :08:25.This inflicts much more damage on Russia been on the countries

:08:26. > :08:35.imposing the sanctions but Russia is braced for the damage `` than on.

:08:36. > :08:39.Even the lighter impact that will be had on the European economy will be

:08:40. > :08:44.much more painful because businesses and workers will wonder why they are

:08:45. > :08:56.taking these measures et al. . What is so important `` at all. What is

:08:57. > :09:02.so important? Lots of food for thought. Those expected sanctions

:09:03. > :09:11.are coming`out of the European Union and Russia today.

:09:12. > :09:13.A California judge has fined computer giant Hewlett Packard 58.8

:09:14. > :09:16.million dollars for bribing Russian government officials. HP had pleaded

:09:17. > :09:19.guilty to violating the Foreign Corrupt Practices Act by paying to

:09:20. > :09:27.secure a major IT project with the Office of the Prosecutor General in

:09:28. > :09:36.Russia. A quick look at the markets. Over in Asia, a mixed

:09:37. > :09:48.picture this hour. That is all for me this hour.

:09:49. > :09:51.Eight cities in England are calling for more powers to be devolved from

:09:52. > :09:54.Whitehall. Council leaders from across the country are due to report

:09:55. > :09:56.why they believe that significant decentralisation in England should

:09:57. > :09:58.follow the Scottish referendum ` whatever