:00:00. > :00:00.But with just over a third of the votes counted,
:00:00. > :00:00.Scientists in the United States are trying to grow human organs
:00:07. > :00:09.inside pigs, by injecting human stem cells into pig embryos.
:00:10. > :00:11.The research is aimed at overcoming the worldwide shortage
:00:12. > :00:14.Those are the latest headlines from BBC World News.
:00:15. > :00:19.Now for the latest financial news with the World Business Report.
:00:20. > :00:21.Strapped for cash, one of the world's biggest oil
:00:22. > :00:24.producers, Saudi Arabia, woos banks ahead of its plan to issue
:00:25. > :00:29.And trade talks in Beijing between China and the US kick off, but will
:00:30. > :00:40.they be overshadowed by mounting tensions over the South China Sea?
:00:41. > :00:43.Welcome to World Business Report, I'm Sally Bundock.
:00:44. > :00:45.Also in the programme, we get the inside track
:00:46. > :00:53.But first, Saudi officials are meeting with global banks in Riyadh
:00:54. > :00:56.later today as the oil producer moves forward with plans to issue
:00:57. > :01:00.The country has been badly hit by low oil prices, which generate
:01:01. > :01:11.more than two-thirds of its revenues.
:01:12. > :01:14.So to plug the gap the country could sell up to $15
:01:15. > :01:17.billion worth of US-denominated debt in the next few months.
:01:18. > :01:18.It follows a $10 billion government loan agreed
:01:19. > :01:23.Taking a look at this graph, from the beginning of the year the price
:01:24. > :01:25.of Brent Crude has dramatically improved, it's now trading
:01:26. > :01:29.at close to $50 dollars a barrel, an increase of almost 70 percent
:01:30. > :01:48.But now let's look back to 2014, and this puts it all in perspective.
:01:49. > :01:50.Even though oil prices are now at seven-month highs,
:01:51. > :01:53.they're still a fraction of the prices seen in the middle of 2014.
:01:54. > :01:56.Saudi Arabia needs to have the price at about $100
:01:57. > :02:12.I am joined by the managing editor of the Oxford Business Group, Oliver
:02:13. > :02:16.Cornock. Please tell us about this international bond sale, there's
:02:17. > :02:20.bound to be an appetite? There is. We saw a precipitous drop off, there
:02:21. > :02:28.was only a matter of time before the King of Saudi Arabia try to tap into
:02:29. > :02:35.international markets. It is not a surprising or particularly desperate
:02:36. > :02:39.move. International economies are always issuing debt, it is a strange
:02:40. > :02:45.for Saudi Arabia to be tapping international markets for the first
:02:46. > :02:49.time, but purely predictable. In terms of the timing and leadership,
:02:50. > :02:55.it has all changed quite significantly? A new economic plan
:02:56. > :03:01.has been introduced? Absolutely, it was announced about one month ago.
:03:02. > :03:07.Big targets for the future, reducing their reliance on oil and getting
:03:08. > :03:13.ladies into work, raising percentages. Part of that will be
:03:14. > :03:17.finding alternative revenue streams and managing wealth and revenue,
:03:18. > :03:22.because it is a wealthy country but it has been drawing down on a huge
:03:23. > :03:28.foreign reserves. With the lower oil price, that is an issue. The bond
:03:29. > :03:34.issue builds on fundamentals such as the young population and low income
:03:35. > :03:41.streams, it will not be a hard sell. It also talks about adding
:03:42. > :03:50.taxes, value added tax. We think it's normal, but it isn't in Saudi
:03:51. > :03:54.Arabia? The low oil price is providing all of these economies
:03:55. > :04:02.with a silver lining, an opportunity to enter into these more mature
:04:03. > :04:07.tools of economic interaction. In the past, these have been very
:04:08. > :04:14.expensive subsidies and welfare programmes which haven't been able
:04:15. > :04:19.to reform in the post- Arab Spring. This gives them the opportunity to
:04:20. > :04:25.change, and of course tax will be part of that. Thank you also, you
:04:26. > :04:28.will be back in about five minutes to talk through some of the day's
:04:29. > :04:32.stories in the papers. Now let's talk about trade talks
:04:33. > :04:35.underway between the US and China. US Secretary of State John Kerry is
:04:36. > :04:38.in Beijing along with the It's an official economic dialogue
:04:39. > :04:40.between Tensions are high over currency
:04:41. > :04:44.and trade practices, not to mention of course the dispute
:04:45. > :04:58.over the South China Sea. Over to our Asia business hub. It
:04:59. > :05:04.will be interesting to see how these two big powerhouses get on? It is
:05:05. > :05:09.interesting. What is even more significant is that this is really
:05:10. > :05:13.the last time that this takes place under the Obama Administration.
:05:14. > :05:20.Things might change dramatically next year. But it is one of the most
:05:21. > :05:23.senior bilateral talks between the two largest economies. We also had
:05:24. > :05:30.Xi Jinping saying that it is important to include a bilateral
:05:31. > :05:36.investment treaties. Stressing the trade relations between the
:05:37. > :05:41.countries. John Kerry and the Treasury Secretary are both there.
:05:42. > :05:47.They have been saying they support China's market reforms and capacity
:05:48. > :05:51.cuts and there decision to cut industrial excess capacity. They
:05:52. > :05:57.have said that that capacity has been distorting global markets and
:05:58. > :06:00.the countries need to promote sustainable and balanced growth.
:06:01. > :06:05.What is really threatening to overshadow the talks is the ongoing
:06:06. > :06:12.tensions with regards to China's claims to the China Sea. I heard
:06:13. > :06:18.from a senior rear Admiral at a meeting this weekend about how the
:06:19. > :06:25.Chinese will essentially refuse to abide by a ruling that was taken at
:06:26. > :06:31.the Hague by the Philippines. China maintaining their hold on the south
:06:32. > :06:32.China Sea which is likely to lead to tensions between themselves and the
:06:33. > :06:33.US. Flying is one of the safest forms
:06:34. > :06:36.of transport, statistically, But recent accidents have focused
:06:37. > :06:38.our attention on the need to combat new threats
:06:39. > :06:41.in order to protect passengers. Among those threats
:06:42. > :06:43.is cyber security. Our correspondent Theo Leggett
:06:44. > :06:44.caught up with a leading security expert,
:06:45. > :07:02.Matthew Finn, and asked how serious The worst that could happen is that
:07:03. > :07:06.someone could get control of the aircraft or potentially of the
:07:07. > :07:10.landing lights, the traffic management system. I we have been
:07:11. > :07:17.focusing attention for the last 40 or 50 years has been about worrying
:07:18. > :07:20.about weapons getting on board the aircraft, now the thinking is moving
:07:21. > :07:24.into a space where we think about what could happen from a
:07:25. > :07:33.technological standpoint. None of this has actually happened yet, so
:07:34. > :07:42.how seriously our defence experts taking that? There have been some
:07:43. > :07:47.eventuated and possibilities of this happening, such as that in Kiev
:07:48. > :07:52.outboard. Even if it doesn't happen as yet, it is important to take a
:07:53. > :08:00.look at how cyber security could present a risk to the aviation
:08:01. > :08:05.industry. You have been speaking to executives here, do you think they
:08:06. > :08:09.are amenable to the kind of taste and you are calling for. I do, the
:08:10. > :08:18.industry is always looking at how they can improve, whether it is
:08:19. > :08:23.safety security or passenger satisfaction. The reality is that we
:08:24. > :08:27.have to keep moving security forward and getting better. The airline
:08:28. > :08:31.industry has got much greater awareness about cyber security. Two
:08:32. > :08:39.or three years ago, this was not high on the agenda but it is now.
:08:40. > :08:43.What hasn't changed is an increase in capability to do something about
:08:44. > :08:48.it, and I think that is where the industry needs to focus. How can we
:08:49. > :08:52.learn lessons from other industries to improve the airline industry's
:08:53. > :08:57.response capability relative to cyber security?
:08:58. > :09:06.In other news: He might run the world's biggest social networking
:09:07. > :09:09.site, but not even Mark Zuckerberg is immune to being hacked.
:09:10. > :09:11.The Facebook founder's accounts on sites including Instagram,
:09:12. > :09:13.Twitter, LinkedIn and Pinterest appear to have been briefly
:09:14. > :09:16.A hacker group called Ourmine, which has more than 40,000 Twitter
:09:17. > :09:19.Swiss voters have rejected a proposal to introduce
:09:20. > :09:27.Final results showed that nearly 77 percent oppose the plan,
:09:28. > :09:32.The proposal had called for adults to be paid
:09:33. > :09:43.a monthly income, regardless of whether they are working or not.
:09:44. > :09:45.The suggested monthly income would have be at
:09:46. > :10:06.Let us have a brief look at the markets.
:10:07. > :10:16.Recent polls have said that there may be a push to leave the EU which
:10:17. > :10:19.appears to be spooking markets at the moment. I'll see you again
:10:20. > :10:31.soon. He transcended his sport, and his
:10:32. > :10:34.race, although