11/07/2016 World Business Report

Now for the latest financial news with Sally

Trading on the "special" relationship - the UK's finance

minister talks up the country's ties to the US before jetting

Flying the flag for a trillion dollar industry -

the Farnborough Airshow kicks off today, and some huge deals

are expected to be signed - we've got a sneak peak coming up.

Nintendo shares have rocketed today -

we'll be finding out why from our team in Asia.

The British finance minister is today jetting off to New York

for talks with major investors in an effort to strengthen US-UK

trade links after the vote to leave the European Union.

In a piece for the Wall Street Journal, George Osbrone said that

improving ties with the US is now a "top priority".

So let's have a quick look at some of the arguments made

by the British finance minister in that article in favour

of a closer economic relationship between the US and the UK.

The two countries are each other's largest investors,

with almost $1 trillion invested in each other's economies.

In fact, the US invests ten times more in the UK than it does

in China, while the UK invests 50 times more in the US

Additionally, a million people in the US work for British

companies, with the same number working for American firms

With me now is Lorenzo Codogno from the London School of Economics

and the former Chief Economist for the Italian Treasury Department.

Good morning. Nice to see you. It is interesting, George Osborne will

bring the Americans, after President Obama famously said we would be back

of the queue if we chose to leave the European Union. Yes, I think it

is a very good attitude in my view, because it is trying to turn what is

inevitably a negative event into an opportunity. I think it is trying to

say basically we are open for business and we want to continue to

do business with the US, with Europe, but the rest of the world,

attend the UK economy into a supercompetitive economy and try to

face the challenges of renegotiating all of the trade agreements. That is

George Osborne's vision as he laid it out in the Wall Street Journal.

But it is not business as usual. It is hard for him and the Business

Secretary, who has just been at the due 20 meeting, for them to make

promises when we haven't really got our government in place at the

moment. Absolutely. But at least it is a good try. I think there is a

need now to stabilise expectations. Reduce the uncertainty. And

certainly this is one of the main channels through which might

actually see the negative impact of Brexit. Trying to prevent it and

trying to send positive messages to say we are going to cut taxes and

make the economy more competitive is a good message and is a good signal

to the rest of the world. Interesting that he has chosen to go

to the United States as the first port of call. The US is a very

important trade partner for the UK, but not the most important. It is

not the most important in terms of trade, but it is the most important

in terms of investment and in terms of relationships. It is by default

that the Chancellor turns to the US as the first country to look into

before moving to the European countries. Inevitably, the other

important step would be finding a good solution at the European level,

but that will come later. Speaking of the Europeans, tell us about

Italian banks. There has been a lot of concern about the fragility of

the Italian banking sector in the wake of the Brexit ripple effect on

the financial markets. Yes, Brexit has turned out to be a major global

event, and when this happens, people look around and see what is

vulnerable, and clearly in Europe, not just in Italy, the banking

sector is vulnerable right now. In Italy more than other countries. In

the aftermath of Brexit, there was a lot of pressure, certainly pressure

on Italian banks. Now the government is trying to put money in to

recapitalise banks. It probably will not be enough. I think there is a

need to stop the rot and relaunch the expectations on the banking

sector in Italy and throughout Europe. Thank you. We appreciate

your time. If you have any interest

in aviation, there's only one place It may only be a small town

in southern England, but every other year,

it hosts a massive airline trade show where the check books come out

and deals worth tens of billions Think of it as a shop window

for the aviation industry where the manikins are jumbo jets

and the bargain hunters As one of the world's biggest

airshows, we decided to start big. It doesn't get much bigger than

this. A 747. This is an air cargo version, and we can thank lanes like

this before greasing the wheels of our global economy. Not only does it

fly fresh produce and pharmaceuticals around the world,

but also those my friends and tablets we can't live without. If

you have already bought a plane and needs an engine, they are here at

Farnborough Airshow. They are not cheap, threatening dollars, but this

engine can fly 16 million kilometres before it needs a service -- $30

million. Think of the Concorde without the wings, the FISA light.

It can fit inside this engine! He is a great story. I July the 15th this

year, Boeing celebrates 100 years of making aircraft. What started as a

would and canvas playing with a stick and a few wires to a modern

Boeing cockpit today, heaving with the latest technology to make sure

we are transported safely to all corners of the world. How do I get

out of this being? It is not all about the passenger, it is also

about the latest war machines. This is the latest. There would not let

me touch the real thing, but this plane is dubbed the most expensive

weapons programme the world has ever seen. You have bought your plane and

you have your engines, now you need seeds. For those carriers interested

in big office, it is all about looking after the passenger at the

front end of the plane, which is where the big bucks are made. It is

all about who has the best flat bed at 35,000 feet. That is Farnborough

Airshow. I'm going to take a nap. Aaron in his element. We will have

more from him later. We are expecting deals to be done today.

Airbus is set to announce it's sold up to ten A350 aircraft

to Virgin Atlantic for around $3 billion.

Boeing, meanwhile, is confident it will be able to announce a $5

billion deal with the British government for 50 Apache helicopters

and nine P-8 maritime patrol aircraft.

Watch out for that news later today. Let's talk about Japan.

Japanese shares have risen in Asia today

after Prime Minister Shinzo Abe's government claimed a major election

victory over the weekend - and it's not the only bit of news

that's been boosting the regions markets.

Mariko Oi joins us now from Singapore with all the details.

Nice to see you. Let's start with Shinzo Abe. The Nikkei are loving

this news. Indeed. Shares are almost 4% this Monday. That is because

investors think the government might roll out another stimulus package.

It is quite interesting. The Prime Minister says the election result

shows that voters have approved his economic policies, known as

Abenomics, but his critics and many experts have been saying they have

not been as successful as he claims. And that is why they think there

might be another stimulus. That is why it shares a higher. In

Australia, there was another election a week ago, and finally by

Minister Malcolm Turnbull has managed to declare victory, and as a

result, she are rising. I should mention they are rising on Wall

Street because of strong jobs data. Tell us about Nintendo. That is one

shared that is really surging this Monday. It is up by more than 20%,

and it is because of this smart phone game called her, go. It is the

first smart phone game by Nintendo and it was launched in the United

States last week and in Australia and New Zealand -- Pokemon Go. It

has been very popular, at the top of the charts in the US. Even though it

is not available globally yet, according to some reports, its daily

usage number has a past that of Twitter. Investors are definitely

liking that. Having said that, Nintendo has been heavily criticised

in the past for not entering the market quickly enough. In a way,

they are playing catch up, but at least they are loving the first

product they launched. Thank you. That is all from me for now. Stay

with us for the papers in a few minutes. See you then.

Let's get more on Andy Murray's success at Wimbledon,

The British player beat Canada's Milos Raonic