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Those are the latest headlines from BBC World News. | :00:00. | :00:00. | |
Now for the latest financial news with | :00:00. | :00:00. | |
The World's largest insurer, AXA, stubs out almost $2 billion worth | :00:00. | :00:22. | |
Japan's Central bank governor defends his negative interest rate | :00:23. | :00:25. | |
policy, and warns that the UK leaving the EU would be | :00:26. | :00:28. | |
Welcome to World Business Report, I'm Victoria Fritz. | :00:29. | :00:44. | |
In a minute we'll look ahead to Ryanair's full year results. | :00:45. | :00:47. | |
But first, the world's largest insurer, French AXA, | :00:48. | :00:49. | |
will stop investing in the tobacco industry and sell investments worth | :00:50. | :00:52. | |
It says investing in the sector makes no sense, | :00:53. | :01:21. | |
given that smoking kills some six million people a year. | :01:22. | :01:23. | |
The move by Axa is an attempt to support government efforts to reduce | :01:24. | :01:27. | |
Imogen Foulkes met up with AXA's incoming Chief Executive, | :01:28. | :01:30. | |
The reason is very simple. We are a large provider of healthcare | :01:31. | :01:35. | |
insurance, and what we are seeing more and more is that chronic | :01:36. | :01:40. | |
diseases cost a lot of money. We need to invest more into prevention | :01:41. | :01:47. | |
and we really want to support that and not invest in tobacco, which | :01:48. | :01:52. | |
creates more diseases. Aren't you a bit late with this? Your health | :01:53. | :01:58. | |
insurance company, it is more than 50 years since governments were | :01:59. | :02:03. | |
first warned about the dangers of tobacco. You can only really see | :02:04. | :02:09. | |
now, in tobacco, but it has turned from a lethal disease to a chronic | :02:10. | :02:14. | |
disease. Now is the right time to do it and it is a time where the public | :02:15. | :02:20. | |
awareness for prevention is much higher. For prevention, you need the | :02:21. | :02:27. | |
willingness of the institution to do it, and also the willingness of the | :02:28. | :02:34. | |
individual. Is one of the reasons also, of all the time it has taken | :02:35. | :02:43. | |
to diversify, that tobacco was traditionally a good, safe | :02:44. | :02:52. | |
investment? If you look at some angles, you could say it is a very | :02:53. | :02:56. | |
interesting investment. But there are other products that are very | :02:57. | :02:59. | |
interesting to us. It is important as an investor to invest in | :03:00. | :03:04. | |
something that is stable. Will it affect the finances of AXA? It will | :03:05. | :03:14. | |
definitely affect the finances, but you have two sides. You have one | :03:15. | :03:21. | |
side where if you diversify and lose the unit and potentially have to | :03:22. | :03:23. | |
reinvest in something else, but on the other hand you have less claims | :03:24. | :03:29. | |
the cost if you achieve making use of prevention and have lower chronic | :03:30. | :03:37. | |
diseases. For us it is positive and therefore also positive for | :03:38. | :03:40. | |
shareholders. Japan's central bank governor has | :03:41. | :03:54. | |
told the BBC that a UK exit from the European Union would be | :03:55. | :03:57. | |
a major risk to global growth. The Bank of Japan's Haruhiko Kuroda | :03:58. | :04:00. | |
also defended his controversial Mr. Kuroda was speaking with | :04:01. | :04:03. | |
our Asia Business Correspondent, Karishma Vaswani, on the sidelines | :04:04. | :04:06. | |
of the G7 meetings in Japan. It is up to British people to decide | :04:07. | :04:16. | |
whether or not to exit from the EU. But suddenly in the latest G20 | :04:17. | :04:31. | |
communication, it has been shown that this could potentially be quite | :04:32. | :04:40. | |
serious. If a Brexit is agreed, it could have significant is on the | :04:41. | :04:46. | |
global economy. What about on Japan's economy? I'm afraid that | :04:47. | :04:53. | |
through charade, and the global economy, including Japan, as well as | :04:54. | :05:03. | |
the US, that could be affected. But as I said, the decision is up to the | :05:04. | :05:08. | |
British people. The implementation of negative into dressed by black -- | :05:09. | :05:15. | |
interest rates in January took everybody by surprise. When do you | :05:16. | :05:17. | |
think it will start to have an impact on Japan's economy and what | :05:18. | :05:24. | |
are the options if it doesn't? We announced it in January, and | :05:25. | :05:28. | |
implemented the new policy in the middle of February. We are still | :05:29. | :05:35. | |
early in May. Although the impact on the financial market is quite clear | :05:36. | :05:46. | |
already, the impact on the greater economy and prices will take some | :05:47. | :05:52. | |
more time. I don't say that it will take one or two years or something | :05:53. | :05:58. | |
like that. It would have an impact on the economy soon. If we think it | :05:59. | :06:10. | |
is necessary to achieve 2% inflation, we can change our | :06:11. | :06:24. | |
monetary policy. I think we have still got enough room to do | :06:25. | :06:25. | |
something. In other news: Exports from Japan | :06:26. | :06:36. | |
fell by 10% in April compared with It's the seventh consecutive | :06:37. | :06:39. | |
month of falls. Imports plunged 23%, | :06:40. | :06:42. | |
putting the trade balance The weak trade data is thought to be | :06:43. | :06:44. | |
mainly due to poorer demand from The Greek parliament has approved | :06:45. | :06:49. | |
several economic and financial reforms after | :06:50. | :06:52. | |
a bitter four-day emergency debate The bill includes tax rises, | :06:53. | :06:54. | |
and also creates a privatisation Thousands | :06:55. | :06:58. | |
of people demonstrated outside Egypt has enlisted | :06:59. | :07:07. | |
a robotic submarine to search the Mediterranean seabed | :07:08. | :07:13. | |
for the black boxes of the missing EgyptAir plane that | :07:14. | :07:15. | |
vanished from radar on Thursday. It is hoped that the recorders | :07:16. | :07:17. | |
can determine whether the plane The Airbus A320 was en route | :07:18. | :07:20. | |
from Paris to Cairo with 66 people With me is John Strickland, | :07:21. | :07:31. | |
airline expert from JLS Consulting. What is worse for the industry in | :07:32. | :07:48. | |
terms of sentiment, if we find out it was an attack or an accident? | :07:49. | :07:51. | |
Does it matter whether it is difficult to give an answer in | :07:52. | :08:05. | |
precise terms. Neither is good. --? It is difficult. We would expect to | :08:06. | :08:11. | |
see a technical fault that would point to wider questions about the | :08:12. | :08:14. | |
use of that aircraft. Unfortunately we may also becoming more used to a | :08:15. | :08:22. | |
terrorist attack occurring. If we would even further back to one of | :08:23. | :08:25. | |
the biggest terrorist attacks with the twin towers back in 2001, what | :08:26. | :08:30. | |
we see overtime is that those kind of attacks tend to be recovered | :08:31. | :08:37. | |
from. It does worry people at a time when we are not certain exactly what | :08:38. | :08:43. | |
caused what. Be disparaged picture that is opening up because of the | :08:44. | :08:51. | |
response to these big issues worldwide, one of them companies | :08:52. | :08:56. | |
that has done very well is Ryanair. They seem to be in a very strong | :08:57. | :09:01. | |
position and we will be hearing their results later today. Yes, over | :09:02. | :09:09. | |
1 billion euros is the expectation. They continue to grow last year. | :09:10. | :09:14. | |
They watch their costs tremendously, that is helped by the falling price | :09:15. | :09:21. | |
of fuel. They are giving a lot of savings back into their affairs. The | :09:22. | :09:29. | |
low fare approach a dog is to their advantage, because it puts pressure | :09:30. | :09:35. | |
on the competitors. They also put effort into customer service which | :09:36. | :09:39. | |
seems to have paid off. And you will stay with those -- with us to | :09:40. | :09:45. | |
discuss those results later on. Asian session has been mixed, | :09:46. | :09:54. | |
markets have started to entertain the prospect of a rate rise | :09:55. | :09:57. | |
in the States, after Fed meeting minutes showed policymakers weren't | :09:58. | :10:00. | |
shying away from raising rates Japan's Nikkei was hurt on worrying | :10:01. | :10:02. | |
economic data on manufacturing trade imbalances, as well | :10:03. | :10:06. | |
as reports that Japan's sales tax | :10:07. | :10:09. |