:00:00. > :00:07.My autocue has disappeared so I don't know who is doing World
:00:08. > :00:17.Business Report, at some new guy. While those fragile talks
:00:18. > :00:19.between London and Brussels continues over an in-or-out Europe
:00:20. > :00:22.referendum, we are taking a look at what a Brexit would mean for one of
:00:23. > :00:30.the UK's most important industries. And we are taking a look
:00:31. > :00:32.at the latest moves by Beijing to try and reignite
:00:33. > :00:35.the world's second-largest economy, and the impact that is having
:00:36. > :00:45.on investors all around the world. In a minute we will have the
:00:46. > :01:03.latest from the Singapore Airshow. Gordon in my ear tells me I have
:01:04. > :01:08.eight minutes and 58 seconds. There is the deal, it is like Christmas
:01:09. > :01:10.all over again. You give me that and I will give you a fascinating and
:01:11. > :01:13.exciting snapshot of all the latest in the world of business and money.
:01:14. > :01:15.Later today, European Council President Donald Tusk publishes
:01:16. > :01:18.a final draft report to national leaders on a potential deal with the
:01:19. > :01:28.A two-day EU summit starts in Brussels on Thursday,
:01:29. > :01:31.during which a final agreement is expected to be struck.
:01:32. > :01:35.If the talks this week in Brussels don't go well, the UK could well be
:01:36. > :01:41.So what could the cost of an exit be to the City of London?
:01:42. > :01:54.Andy Verity went to the Square Mile to find out.
:01:55. > :02:03.Those in the city who want Britain to leave the EU say that warnings
:02:04. > :02:07.over 100,000. Job losses are scaremongering. While red tape from
:02:08. > :02:12.Brussels is strangling their business. It is just unnecessarily
:02:13. > :02:17.burdening UK businesses and it is 100% of UK businesses which get
:02:18. > :02:21.impacted when actually only 5% export to the European Union. So why
:02:22. > :02:24.should the rest of us suffer? You take a country like Switzerland, it
:02:25. > :02:28.is only the businesses that export to the EU that have to comply with
:02:29. > :02:31.the rules and regulations. More than 2 million people work here in
:02:32. > :02:35.financial services, and to generate the trade surplus for Britain of
:02:36. > :02:42.around ?70 billion. Why put that at risk, say opponents of a Brexit? Why
:02:43. > :02:45.not keep the status quo? But those in favour of a Brexit say that you
:02:46. > :02:49.could keep all those benefits by signing a new free trade deal with
:02:50. > :02:53.the rest of Europe and you would gain the big prize, control over
:02:54. > :02:57.immigration. But most in the city, especially big businesses, what
:02:58. > :03:01.Britain to stay. Leaving the EU would be a leap into the unknown. We
:03:02. > :03:04.don't know what the relationship between Britain and the rest of
:03:05. > :03:09.Europe would be. We would have a period of some years of uncertainty,
:03:10. > :03:12.and in uncertainty then you would get less investment. People would be
:03:13. > :03:17.reluctant to take decisions. I don't think anybody is going to rush to
:03:18. > :03:22.leave, but visitors would then state written will not be in the European
:03:23. > :03:26.Union. The billions of pounds that have modernised the city have come
:03:27. > :03:30.to London since the UK joined the European Union more than 40 years
:03:31. > :03:34.ago. Those in favour of a Brexit would say that is in spite of the
:03:35. > :03:37.European Union. Those against would say it is because of it. Until we
:03:38. > :03:47.have the vote, we won't know who is right.
:03:48. > :03:50.We will keep across that until we are blue in the face, I'm sure.
:03:51. > :03:53.China is going through a difficult transition from rigid socialism to
:03:54. > :03:56.It is now one of the world's fastest-growing
:03:57. > :03:58.economies, a leading exporter and major overseas investor.
:03:59. > :04:00.China's economy grew by 6.9% in 2015, compared with 7.3%
:04:01. > :04:04.a year earlier, marking its slowest growth in a quarter of a century.
:04:05. > :04:06.The government is trying to shift the economy to one driven
:04:07. > :04:09.by consumption and services, rather than manufacturing, exports, and
:04:10. > :04:43.But managing that transition has been challenging.
:04:44. > :04:45.There are doubts about whether Chinese data scan be trusted.
:04:46. > :04:58.Critics say that real growth figures may be much weaker.
:04:59. > :05:00.Meanwhile, worries about the devaluing currency persist,
:05:01. > :05:03.even though the yuan strengthened this week, thanks to China's central
:05:04. > :05:15.bank governor breaking his silence on currency policy.
:05:16. > :05:20.Let's find out more. She is in the house, I dragged her in.
:05:21. > :05:22.Linda Yueh, professor at London Business School and Fellow
:05:23. > :05:29.So the big boss of China's Central Bank broke his silence. Explain to
:05:30. > :05:35.the uninitiated what is going on with the currency. A sickly the
:05:36. > :05:38.central bank governor hadn't spoken about monetary policy for months but
:05:39. > :05:43.gave an interview to a Chinese weekly magazine and what he said was
:05:44. > :05:49.the currency is basically stable. Either way, China used to drive half
:05:50. > :05:53.of global growth, but we account a quarter of the world's population,
:05:54. > :05:58.and now look. We drive a quarter of global growth, so basically this is
:05:59. > :06:02.about right, this is a hard landing. So that has given
:06:03. > :06:10.confidence that China has responded on the big shifts that you have
:06:11. > :06:14.described. On the back of that, the yuan increased in value on other
:06:15. > :06:18.currencies around the world. So a weaker currency is good if you are
:06:19. > :06:22.exporting a lot of stuff, right? So all the stuff that Chinese factories
:06:23. > :06:25.make an ship off, if the currency is lower in value that is cheaper for
:06:26. > :06:30.all of us around the world to buy Chinese stuff, so we buy a lot of
:06:31. > :06:35.it, right? But if they are trying to shift its economy, they want more
:06:36. > :06:39.Chinese people, middle-class etc to spend money in the economy, it is
:06:40. > :06:44.better to have a higher value currency, isn't it? It is, yes. That
:06:45. > :06:47.means by the same reasoning that Chinese people will find it cheaper
:06:48. > :06:52.to buy stuff from the rest of the world because their currency, the
:06:53. > :06:55.yuan, goes further. That is why at the moment, the long-term uncertain
:06:56. > :07:00.value of the Chinese currency is what is contributing to some of this
:07:01. > :07:04.volatility. Because unlike other major economies, China is not a
:07:05. > :07:08.market economy. You can't just look at, for instance, what the interest
:07:09. > :07:12.rate is or how things look for decades, how financial markets
:07:13. > :07:15.traded, because financial markets are still largely closed. It is that
:07:16. > :07:20.uncertainty around the value of the currency which is contributing to
:07:21. > :07:23.this global volatility. But let me just add, I am not sure entirely if
:07:24. > :07:27.I agree with the Governor's assessment on this but he said the
:07:28. > :07:33.central bank is neither God nor a magician when it comes to
:07:34. > :07:37.uncertainty. And so I think that means we just have to wait a little
:07:38. > :07:43.while longer to see whether Chinese currency settles but it is
:07:44. > :07:46.undoubtedly why we see so much turmoil in global markets these
:07:47. > :07:54.days. And you will come back and take us through the papers. For you!
:07:55. > :07:55.Thank you and great to see you. -- poor you!
:07:56. > :07:57.Now, Asia's biggest commercial aerospace and defence airshow is
:07:58. > :08:00.in full swing in Singapore, and for the latest, Karishma Vaswani
:08:01. > :08:14.We are talking about China and of course some of the struggles. Now
:08:15. > :08:17.China's economy may be slowing. One thing that is not necessarily
:08:18. > :08:24.slowing other Chinese airlines. They are buying a lot of planes, right?
:08:25. > :08:27.-- are the Chinese airlines. That's absolutely right. I am coming to you
:08:28. > :08:31.one day two of the Singapore airshow. This is when the wheeling
:08:32. > :08:37.and dealing gets under way and we have seen some deal signed. China's
:08:38. > :08:45.OK Airlines has picked up 12 737 Boeing aeroplanes, that is for a
:08:46. > :08:49.pricetag of $1.3 billion. Still nowhere near the figures and numbers
:08:50. > :08:56.we have seen at previous airshows in Singapore in 2014, this airshow sold
:08:57. > :08:59.deals worth $30 billion. So the niggling concerns about global
:09:00. > :09:03.economic uncertainty, what you were talking about a few minutes ago,
:09:04. > :09:07.that is certainly a bit of a theme here at the airshow but I am large
:09:08. > :09:11.aircraft manufacturers are feeling extremely confident about the
:09:12. > :09:15.future. We have heard from Boeing saying they are going to sell almost
:09:16. > :09:29.4000 planes in Asia over the next 20 years, worth $550 million. -- 500
:09:30. > :09:32.$50 billion. And 1500 planes worth $70 billion. I know we are going to
:09:33. > :09:34.get more from you throughout the rest of the day. I am very jealous
:09:35. > :09:52.you are there. $550 billion. The Nikkei has been up, down and up.
:09:53. > :09:54.It is down over 2.5% and Brent crude slightly up but still a barrel of
:09:55. > :10:01.oil worth 32 a barrel. Don't forget,
:10:02. > :10:05.you can get in touch with me