29/07/2016

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:00:00. > :00:00.Those are the latest headlines from BBC News.

:00:00. > :00:00.Now for the latest financial news with Aaron Heslehurst

:00:00. > :00:25.The French agree to build Britain's first new new-clear power

:00:26. > :00:29.But now the Brits want more time to think.

:00:30. > :00:32.Plus - five centuries in business but now banking on a rescue.

:00:33. > :00:41.The perilous state of the world's oldest financial institution.

:00:42. > :00:56.This is just a bite-size snapshot of all the latest in the world of

:00:57. > :01:00.business and money. Also coming up: Will the Bank

:01:01. > :01:03.of Japan turn on the money It could end up as one of the most

:01:04. > :01:12.expensive structures ever built. It would certainly be a massive,

:01:13. > :01:14.multi-billion dollar gamble for the companies and

:01:15. > :01:16.governments involved, We are talking about Britain's first

:01:17. > :01:27.nuclear power station in a generation, the

:01:28. > :01:29.proposed Hinkley C plant Late on Thursday the board of French

:01:30. > :01:34.energy giant EDF narrowly approved the $24 billion project,

:01:35. > :01:36.despite fears it could In fact, two senior executives have

:01:37. > :01:49.quit over all of this. Now, the UK Government says

:01:50. > :01:52.it won't make a final Because of the vast cost,

:01:53. > :02:00.a third of the investment The state CGN group will put

:02:01. > :02:07.in almost $8 billion, that's The Chinese hope it will give them

:02:08. > :02:15.an in with the UK government Hinkley C would provide

:02:16. > :02:24.3,200 megawatts of power. That would supply 7% of the UK's

:02:25. > :02:29.total electricity requirement. It's enough to make 85.3 million

:02:30. > :02:43.cups of tea at once. Or to keep the lights on in 48.5

:02:44. > :02:46.million homes around the UK. to charge 640 million iPhones

:02:47. > :02:58.all at the same time. In return for their

:02:59. > :02:59.massive investment, the French and Chinese

:03:00. > :03:01.would get a guaranteed price for the electricity

:03:02. > :03:04.the plant produces. That price is this -

:03:05. > :03:08.about ?92.50, or $121.68, per megawatt hour of electricity

:03:09. > :03:17.for a period of 35 years. this is more than twice

:03:18. > :03:24.the current market rate, another one of the reasons

:03:25. > :03:26.it is so controversial. Dr Paul Dorfman is from

:03:27. > :03:41.the Energy Institute The delay from the British side, is

:03:42. > :03:45.this a Brexit issue or a new government going, we just need a bit

:03:46. > :03:53.more time to think about this? Yes, it's good news. The deal, as you

:03:54. > :03:56.say, is deeply problematic and it looks like our government is

:03:57. > :04:04.thinking again. There are lots of reasons for this. The reactor that

:04:05. > :04:08.his bill is the same brand of reactor that has failed in

:04:09. > :04:13.construction terms, both in Finland and France, where it is about three

:04:14. > :04:21.times over time and cost. That will be a problem in itself, right? This

:04:22. > :04:26.is a plant that has failed? It is certainly a failed reactor. The

:04:27. > :04:31.failure of the construction of this reactor has essentially bankrupted

:04:32. > :04:37.EDF's construction arm, which will have to be bailed out by the French

:04:38. > :04:43.government. Can I just ask you this. Time is short. Some will say this is

:04:44. > :04:48.a 20th-century solution to a 21st-century problem and locking in

:04:49. > :04:53.at prices for the UK government, to pay the French and Chinese, locking

:04:54. > :04:59.in a rate that is more than twice the market rate today for 35 years,

:05:00. > :05:08.that is absurd, isn't it? It does seem to be absurd and there are

:05:09. > :05:12.problems with it. For example, this is all the UK government has to find

:05:13. > :05:19.low carbon energy. Fortunately, nuclear by about 2020 will eat all

:05:20. > :05:23.of the framework. So if you are wondering why we have seen the

:05:24. > :05:28.decimation of nuclear solar, wind, UK gridlock grid, that's why. If you

:05:29. > :05:33.are talking about energy in the round, a recent report has said that

:05:34. > :05:37.renewables account for all of the increasing global power generation

:05:38. > :05:42.in 2050, so that's a 70% in wind and about 32% in solar, with China

:05:43. > :05:46.leading the way. Thank you very much. Short and sweet, but we

:05:47. > :05:48.appreciate your time. In Italy, there are growing fears

:05:49. > :05:50.about the health of Tonight, after the US markets close,

:05:51. > :05:57.the EU will publish results of the latest so-called

:05:58. > :06:04.bank stress tests. Those are basically to test if banks

:06:05. > :06:08.can withstand the financial crisis. are expected to be the major source

:06:09. > :06:22.of concern, as Theo Leggett reports This is the world's oldest bank,

:06:23. > :06:27.founded in 1472 it originally provided small loans to Tuscan

:06:28. > :06:32.farmers. Now it is Italy's third-largest bank and is in

:06:33. > :06:37.trouble, weighed down by a huge fort stomach portfolio of loans that may

:06:38. > :06:41.never be repaid. -- huge portfolio. There are about 600 banks across the

:06:42. > :06:45.country and more local branches than pizza restaurants. Many of them are

:06:46. > :06:51.struggling because customers can't repay their debts. Across the

:06:52. > :06:57.sector, depending on which metrics you look at, there are 360 billion

:06:58. > :07:04.euros, which makes up about one fifth of the country's GDP and about

:07:05. > :07:07.20% of all loans in the country. Here in this northern Italian town

:07:08. > :07:12.they know exactly what can happen when a bank gets into financial

:07:13. > :07:15.trouble. Last deal on local bank was one of four which had to be bailed

:07:16. > :07:20.out by the Italian government. But the price of that they allowed under

:07:21. > :07:26.EU law was that investors had to lose money and in Italy bank

:07:27. > :07:33.investors are often ordinary savers. One of them is Roberto. He and his

:07:34. > :07:37.wife lost 24,000 euros they had invested in the bank. Now he's

:07:38. > :07:45.fighting for compensation. TRANSLATION: It doesn't matter what

:07:46. > :07:50.had -- whether it is 100 or 1000 euros. We are talking about our

:07:51. > :07:53.money, money that we made from hard work and sweat. It is my money and

:07:54. > :08:00.the Italian government has stolen it from me. This is a relatively small

:08:01. > :08:05.bank. ??Monte dei Paschi is a lot to go. If a solution to its problems

:08:06. > :08:08.can't be found in the private sector the government may have to step in

:08:09. > :08:12.and many more ordinary people could lose their money. Experts fear that

:08:13. > :08:21.could cause political up rural, possibly threatening the government

:08:22. > :08:25.and the Prime Minister and sending shockwaves through the entire EU.

:08:26. > :08:28.To Asia now, where all eyes are on Tokyo,

:08:29. > :08:30.specifically the Bank of Japan which has just wound

:08:31. > :08:39.Karishma Vaswani is our Asia business correspondent.

:08:40. > :08:45.All of these huge expectations on the bank of Japan and they came out

:08:46. > :08:49.and said, we will do something, we will continue pumping money into the

:08:50. > :08:53.markets. That's about it, and nobody likes that at the moment. You are

:08:54. > :08:56.absolutely right. I think this is being read as a major

:08:57. > :08:59.disappointment. Investors were looking for some sort of major

:09:00. > :09:05.effort by the bank of Japan and the central bank of an to show that he

:09:06. > :09:15.was trying to support the Japanese economy. -- bank governor. Japan has

:09:16. > :09:19.been in a two decade-long slump. Prices are low, wages are low and

:09:20. > :09:23.the problem is that no matter what the central bank and the government

:09:24. > :09:26.has thrown at this problem, massive, billions of dollars worth of cash

:09:27. > :09:31.and money and stimulus, even pushing interest rates further below zero,

:09:32. > :09:36.nothing appears to be working. Earlier in the week we saw a move by

:09:37. > :09:42.the Japanese Prime Minister Shinzo Abe, who announced plans for a $265

:09:43. > :09:46.billion stimulus package. He says details of that will be released

:09:47. > :09:50.next week. And it looked at the time like he was saying to his friend at

:09:51. > :09:57.the central bank, now show your cards. Well, it hasn't impressed

:09:58. > :10:01.investors at all. Nothing has worked in the past and nothing will work in

:10:02. > :10:07.the future, until economic structural reforms! Economic

:10:08. > :10:10.structural reforms. The Nikkei is down just over 1% and the Japanese

:10:11. > :10:12.yen has gone back up again. That continues to hurt the Japanese

:10:13. > :10:12.economy. Don't forget you can get in touch

:10:13. > :10:16.with me and some of the team I will be back to look at some of

:10:17. > :10:25.the papers from around the world. The UK's first maternity service

:10:26. > :10:29.for victims of rape and sexual