11/07/2016

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:00:00. > :00:00.Now for the latest financial news with Sally

:00:00. > :00:18.Trading on the "special" relationship - the UK's finance

:00:19. > :00:22.minister talks up the country's ties to the US before jetting

:00:23. > :00:27.Flying the flag for a trillion dollar industry -

:00:28. > :00:30.the Farnborough Airshow kicks off today, and some huge deals

:00:31. > :00:40.are expected to be signed - we've got a sneak peak coming up.

:00:41. > :00:47.Nintendo shares have rocketed today -

:00:48. > :00:51.we'll be finding out why from our team in Asia.

:00:52. > :00:59.The British finance minister is today jetting off to New York

:01:00. > :01:01.for talks with major investors in an effort to strengthen US-UK

:01:02. > :01:04.trade links after the vote to leave the European Union.

:01:05. > :01:07.In a piece for the Wall Street Journal, George Osbrone said that

:01:08. > :01:10.improving ties with the US is now a "top priority".

:01:11. > :01:13.So let's have a quick look at some of the arguments made

:01:14. > :01:16.by the British finance minister in that article in favour

:01:17. > :01:18.of a closer economic relationship between the US and the UK.

:01:19. > :01:20.The two countries are each other's largest investors,

:01:21. > :01:24.with almost $1 trillion invested in each other's economies.

:01:25. > :01:29.In fact, the US invests ten times more in the UK than it does

:01:30. > :01:32.in China, while the UK invests 50 times more in the US

:01:33. > :01:38.Additionally, a million people in the US work for British

:01:39. > :01:40.companies, with the same number working for American firms

:01:41. > :01:47.With me now is Lorenzo Codogno from the London School of Economics

:01:48. > :01:52.and the former Chief Economist for the Italian Treasury Department.

:01:53. > :02:02.Good morning. Nice to see you. It is interesting, George Osborne will

:02:03. > :02:05.bring the Americans, after President Obama famously said we would be back

:02:06. > :02:11.of the queue if we chose to leave the European Union. Yes, I think it

:02:12. > :02:17.is a very good attitude in my view, because it is trying to turn what is

:02:18. > :02:22.inevitably a negative event into an opportunity. I think it is trying to

:02:23. > :02:26.say basically we are open for business and we want to continue to

:02:27. > :02:31.do business with the US, with Europe, but the rest of the world,

:02:32. > :02:37.attend the UK economy into a supercompetitive economy and try to

:02:38. > :02:42.face the challenges of renegotiating all of the trade agreements. That is

:02:43. > :02:46.George Osborne's vision as he laid it out in the Wall Street Journal.

:02:47. > :02:50.But it is not business as usual. It is hard for him and the Business

:02:51. > :02:55.Secretary, who has just been at the due 20 meeting, for them to make

:02:56. > :02:58.promises when we haven't really got our government in place at the

:02:59. > :03:04.moment. Absolutely. But at least it is a good try. I think there is a

:03:05. > :03:09.need now to stabilise expectations. Reduce the uncertainty. And

:03:10. > :03:13.certainly this is one of the main channels through which might

:03:14. > :03:18.actually see the negative impact of Brexit. Trying to prevent it and

:03:19. > :03:24.trying to send positive messages to say we are going to cut taxes and

:03:25. > :03:31.make the economy more competitive is a good message and is a good signal

:03:32. > :03:35.to the rest of the world. Interesting that he has chosen to go

:03:36. > :03:40.to the United States as the first port of call. The US is a very

:03:41. > :03:45.important trade partner for the UK, but not the most important. It is

:03:46. > :03:49.not the most important in terms of trade, but it is the most important

:03:50. > :03:57.in terms of investment and in terms of relationships. It is by default

:03:58. > :04:03.that the Chancellor turns to the US as the first country to look into

:04:04. > :04:08.before moving to the European countries. Inevitably, the other

:04:09. > :04:13.important step would be finding a good solution at the European level,

:04:14. > :04:19.but that will come later. Speaking of the Europeans, tell us about

:04:20. > :04:22.Italian banks. There has been a lot of concern about the fragility of

:04:23. > :04:30.the Italian banking sector in the wake of the Brexit ripple effect on

:04:31. > :04:36.the financial markets. Yes, Brexit has turned out to be a major global

:04:37. > :04:40.event, and when this happens, people look around and see what is

:04:41. > :04:44.vulnerable, and clearly in Europe, not just in Italy, the banking

:04:45. > :04:51.sector is vulnerable right now. In Italy more than other countries. In

:04:52. > :04:55.the aftermath of Brexit, there was a lot of pressure, certainly pressure

:04:56. > :05:02.on Italian banks. Now the government is trying to put money in to

:05:03. > :05:10.recapitalise banks. It probably will not be enough. I think there is a

:05:11. > :05:15.need to stop the rot and relaunch the expectations on the banking

:05:16. > :05:17.sector in Italy and throughout Europe. Thank you. We appreciate

:05:18. > :05:19.your time. If you have any interest

:05:20. > :05:22.in aviation, there's only one place It may only be a small town

:05:23. > :05:26.in southern England, but every other year,

:05:27. > :05:28.it hosts a massive airline trade show where the check books come out

:05:29. > :05:31.and deals worth tens of billions Think of it as a shop window

:05:32. > :05:35.for the aviation industry where the manikins are jumbo jets

:05:36. > :05:49.and the bargain hunters As one of the world's biggest

:05:50. > :05:54.airshows, we decided to start big. It doesn't get much bigger than

:05:55. > :06:00.this. A 747. This is an air cargo version, and we can thank lanes like

:06:01. > :06:04.this before greasing the wheels of our global economy. Not only does it

:06:05. > :06:07.fly fresh produce and pharmaceuticals around the world,

:06:08. > :06:11.but also those my friends and tablets we can't live without. If

:06:12. > :06:16.you have already bought a plane and needs an engine, they are here at

:06:17. > :06:22.Farnborough Airshow. They are not cheap, threatening dollars, but this

:06:23. > :06:26.engine can fly 16 million kilometres before it needs a service -- $30

:06:27. > :06:30.million. Think of the Concorde without the wings, the FISA light.

:06:31. > :06:36.It can fit inside this engine! He is a great story. I July the 15th this

:06:37. > :06:40.year, Boeing celebrates 100 years of making aircraft. What started as a

:06:41. > :06:46.would and canvas playing with a stick and a few wires to a modern

:06:47. > :06:50.Boeing cockpit today, heaving with the latest technology to make sure

:06:51. > :06:55.we are transported safely to all corners of the world. How do I get

:06:56. > :06:59.out of this being? It is not all about the passenger, it is also

:07:00. > :07:02.about the latest war machines. This is the latest. There would not let

:07:03. > :07:06.me touch the real thing, but this plane is dubbed the most expensive

:07:07. > :07:11.weapons programme the world has ever seen. You have bought your plane and

:07:12. > :07:16.you have your engines, now you need seeds. For those carriers interested

:07:17. > :07:20.in big office, it is all about looking after the passenger at the

:07:21. > :07:25.front end of the plane, which is where the big bucks are made. It is

:07:26. > :07:31.all about who has the best flat bed at 35,000 feet. That is Farnborough

:07:32. > :07:36.Airshow. I'm going to take a nap. Aaron in his element. We will have

:07:37. > :07:40.more from him later. We are expecting deals to be done today.

:07:41. > :07:43.Airbus is set to announce it's sold up to ten A350 aircraft

:07:44. > :07:45.to Virgin Atlantic for around $3 billion.

:07:46. > :07:48.Boeing, meanwhile, is confident it will be able to announce a $5

:07:49. > :07:50.billion deal with the British government for 50 Apache helicopters

:07:51. > :07:55.and nine P-8 maritime patrol aircraft.

:07:56. > :07:59.Watch out for that news later today. Let's talk about Japan.

:08:00. > :08:01.Japanese shares have risen in Asia today

:08:02. > :08:03.after Prime Minister Shinzo Abe's government claimed a major election

:08:04. > :08:06.victory over the weekend - and it's not the only bit of news

:08:07. > :08:08.that's been boosting the regions markets.

:08:09. > :08:12.Mariko Oi joins us now from Singapore with all the details.

:08:13. > :08:23.Nice to see you. Let's start with Shinzo Abe. The Nikkei are loving

:08:24. > :08:29.this news. Indeed. Shares are almost 4% this Monday. That is because

:08:30. > :08:33.investors think the government might roll out another stimulus package.

:08:34. > :08:38.It is quite interesting. The Prime Minister says the election result

:08:39. > :08:42.shows that voters have approved his economic policies, known as

:08:43. > :08:47.Abenomics, but his critics and many experts have been saying they have

:08:48. > :08:50.not been as successful as he claims. And that is why they think there

:08:51. > :08:54.might be another stimulus. That is why it shares a higher. In

:08:55. > :08:58.Australia, there was another election a week ago, and finally by

:08:59. > :09:02.Minister Malcolm Turnbull has managed to declare victory, and as a

:09:03. > :09:09.result, she are rising. I should mention they are rising on Wall

:09:10. > :09:14.Street because of strong jobs data. Tell us about Nintendo. That is one

:09:15. > :09:21.shared that is really surging this Monday. It is up by more than 20%,

:09:22. > :09:28.and it is because of this smart phone game called her, go. It is the

:09:29. > :09:31.first smart phone game by Nintendo and it was launched in the United

:09:32. > :09:36.States last week and in Australia and New Zealand -- Pokemon Go. It

:09:37. > :09:40.has been very popular, at the top of the charts in the US. Even though it

:09:41. > :09:45.is not available globally yet, according to some reports, its daily

:09:46. > :09:50.usage number has a past that of Twitter. Investors are definitely

:09:51. > :09:53.liking that. Having said that, Nintendo has been heavily criticised

:09:54. > :09:57.in the past for not entering the market quickly enough. In a way,

:09:58. > :10:04.they are playing catch up, but at least they are loving the first

:10:05. > :10:10.product they launched. Thank you. That is all from me for now. Stay

:10:11. > :10:20.with us for the papers in a few minutes. See you then.

:10:21. > :10:26.Let's get more on Andy Murray's success at Wimbledon,

:10:27. > :10:29.The British player beat Canada's Milos Raonic