24/08/2016

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:00:00. > :00:00.If we get more major news from Italy we will have a right here on BBC

:00:07. > :00:07.World News. Now for the latest financial news

:00:08. > :00:10.with Sally and World Business Flying high - record profits

:00:11. > :00:18.for Australian airline Qantas. After a few lean years,

:00:19. > :00:20.the flying kangaroo An echo from a bygone

:00:21. > :00:29.era, cotton spinning - an industry where England

:00:30. > :00:31.was once world-leading, but the last mill closed

:00:32. > :00:34.some 30 years ago - Also in the programme:

:00:35. > :00:51.They are in your toothpaste, Now UK politicians want a global

:00:52. > :00:55.ban, to save ocean life. Australia's national

:00:56. > :01:05.carrier, Qantas, just The airline recorded profits

:01:06. > :01:14.of just over $US1 billion. That is nearly double last year's

:01:15. > :01:17.profit, and for the first time in seven years the airline will pay

:01:18. > :01:24.a dividend to shareholders. It is a huge turnaround

:01:25. > :01:27.from just a few years ago, Rico Hizon is in our

:01:28. > :01:45.Asia Business Hub in Singapore. Well, the flying kangaroo is now

:01:46. > :01:49.soaring. How did they do it? Carrier laid off thousands of staff, taking

:01:50. > :01:55.billions of dollars in write-downs, withholding dividends, cut flights

:01:56. > :01:59.to keep ticket prices up and locked in fuel hedging contracts which let

:02:00. > :02:05.it benefit from a slump in the price of oil. So these bold moves, Sally,

:02:06. > :02:09.were part of the overall strategy of Qantas CEO Alan Joyce to get the

:02:10. > :02:15.carrier back to the black. Analyst say the record result basically

:02:16. > :02:20.vindicates Mr Joyce's initiatives as he faced sometimes this criticism

:02:21. > :02:26.from shareholders, passengers and employees sent undertaking this

:02:27. > :02:30.costly shakeup two years ago. And in a sign of how much the airline is

:02:31. > :02:37.relying on cost-cutting to grow proper, sales grew 3% while fuel

:02:38. > :02:41.cost shrank by 17%. Let's have a look at the divisions. Each of the

:02:42. > :02:47.company's main operating divisions, its domestic, international and

:02:48. > :02:52.discount units and frequent-flier programmes all boasting record

:02:53. > :02:55.earnings. Alan Joyce expected to continue its strong financial

:02:56. > :03:01.performance in the first half of the new financial year, 2017, and will

:03:02. > :03:05.focus on producing higher operating margins. We will wait and see as

:03:06. > :03:10.there are difficult times ahead worldwide. For now I am sure the

:03:11. > :03:13.champagne is flowing in their headquarters. Absolutely. Good to

:03:14. > :03:16.see you, thanks a lot. For the first time in over 30 years,

:03:17. > :03:19.cotton is about to be produced English Fine Cottons will be

:03:20. > :03:25.the sole spinner in the UK, a stark contrast from the industry's

:03:26. > :03:28.peak in the 19th century, where Britain produced over 90%

:03:29. > :03:39.of the world's output. A few short months ago, tower mill

:03:40. > :03:47.in Dukinfield near Manchester was a relic of another era, derelict and

:03:48. > :03:52.empty. How things change. You have been a bit busy. How difficult has

:03:53. > :03:55.the job being? It has been easy for me but the group of guys who have

:03:56. > :04:00.had to build this, they have had challenges. Over the last six to

:04:01. > :04:04.eight weeks they have built all the space age technology you can see.

:04:05. > :04:09.Nearly $8 billion has been invested to turn it according to the company

:04:10. > :04:13.into one of the most effective spinning mills in the world. Our

:04:14. > :04:18.machine operators will be manning the machine as opposed to working on

:04:19. > :04:23.the machine, they will be studying machine as opposed to operating the

:04:24. > :04:26.machine. The UK's cotton spinning industry was finally extinguished

:04:27. > :04:31.after decades of lingering demise in the 1980s, a victim of cheap foreign

:04:32. > :04:34.competition. The machinery of the new cotton spinning era is many

:04:35. > :04:40.times more efficient, computerised, compacts. We had so many nuts and

:04:41. > :04:46.bolts, you know, it is difficult to count and remember what is going to

:04:47. > :04:51.go where. The future is I think very bright as after so many years the

:04:52. > :04:56.industry is coming back home. Cotton spinning on a test scale is now

:04:57. > :04:59.under way. The first time it has been spun in this buildings in the

:05:00. > :05:04.1950s. Full test production starts later. If test reduction goes well

:05:05. > :05:08.they will move almost immediately into full production and the key

:05:09. > :05:11.then will be to ensure there is a market for the product. And they

:05:12. > :05:15.have been working on that for months. The aim is to produce

:05:16. > :05:21.top-quality cotton for the UK fashion industry. Anybody who really

:05:22. > :05:31.values quality, heritage, Britishness, Providence, --

:05:32. > :05:36.provenance, social responsibility, they are looking to Tony Allen fine

:05:37. > :05:42.fabric. It really is a step in history, bringing back what really

:05:43. > :05:45.belongs to Manchester. If all goes to plan, English Fine Cottons will

:05:46. > :05:47.produce 500 tons of cotton in its first year, with plans to increase

:05:48. > :05:50.that in future years. MPs in the UK are calling

:05:51. > :05:53.for a complete international ban on the use of microbeads

:05:54. > :05:55.by cosmetics companies, because of the damage they are doing

:05:56. > :05:58.to the world's oceans. Microbeads are small pieces

:05:59. > :06:00.of plastic that are used in thousands of commonly

:06:01. > :06:02.used exfoliating scrubs, toothpastes and shaving

:06:03. > :06:03.gel products. The MPs' report says the tiny beads,

:06:04. > :06:06.which are a type of microplastic, are accumulating in the world's

:06:07. > :06:09.oceans and rivers, harming marine Many of the world's largest

:06:10. > :06:26.cosmetics companies have already committed to phasing out

:06:27. > :06:28.the use of microbeads, but the UK Environmental Audit

:06:29. > :06:31.Committee has called Several US states have already

:06:32. > :06:35.announced that they will ban the manufacture and sale of certain

:06:36. > :06:37.types of products containing With me is Rosie Rogers,

:06:38. > :06:55.senior political advisor Good morning, Rosie. I have read a

:06:56. > :06:58.bit of this report, it is quite thick and lengthy but it talks about

:06:59. > :07:03.the fact that actually the research is not all there yet, in terms of

:07:04. > :07:06.the actual impact of these microbeads, and there is still work

:07:07. > :07:12.to do. So how do they believe they could sort of progress to the point

:07:13. > :07:16.where you get an international ban? Absolutely, there is a lot more

:07:17. > :07:19.research needed and this report does call for more research, which we

:07:20. > :07:22.definitely support but there is enough scientific evidence out there

:07:23. > :07:25.to show that microbeads are having a very devastating affect on the

:07:26. > :07:30.marine environment. In fact there are over 8 million tons of plastic

:07:31. > :07:35.in our world's oceans pumped in there from our drains, and micro

:07:36. > :07:37.plastics are a part of that problem. There is enough research showing

:07:38. > :07:42.there are devastating effects on these tiny bits of plastic, and they

:07:43. > :07:45.can be banned, which is one positive thing about them. A large proportion

:07:46. > :07:50.of the cosmetics industry have committed to phasing out these

:07:51. > :07:54.products by 2020. Is that voluntary action not enough? We really applaud

:07:55. > :08:00.the companies who have said they will take this action, looking at

:08:01. > :08:06.Marks Spencer 's, Waitrose brand boots, but Greenpeace did a report

:08:07. > :08:09.auditing the top 30 cosmetic companies and we found there were

:08:10. > :08:13.massive inconsistencies from different actual ways that companies

:08:14. > :08:19.are labelling microbeads, from what they define as microbeads, the

:08:20. > :08:22.different phase out times, so it is difficult for consumers to know what

:08:23. > :08:27.is happening, when a band is going to happen and what products actually

:08:28. > :08:34.have microbeads in them, so the best way to deal is have an international

:08:35. > :08:39.ban as the report says -- when a ban is going to happen. The report does

:08:40. > :08:45.admit that because of Brexit, bringing about a band in the

:08:46. > :08:50.European Union is more difficult. Brexit has brought out a lot of

:08:51. > :08:52.uncertainties and in terms of environmental issues we are

:08:53. > :08:58.uncertain what will be the future but one thing is clear. Fish and the

:08:59. > :09:01.sea, micro plankton, they don't care about Brexit. They care that these

:09:02. > :09:04.pieces of plastic are coming into the area and going into their

:09:05. > :09:08.bellies, and sometimes ending up on our plates as well. There is a big

:09:09. > :09:12.human impact on this. So despite whatever is happening in terms of

:09:13. > :09:20.Brexit and the EU, one thing that can be done is that this government

:09:21. > :09:22.can do something today, nationally, for the UK consumers and UK wildlife

:09:23. > :09:27.to ban microbeads and hopefully influence the EU in the long-term.

:09:28. > :09:33.Thank you for your time this morning. Let's show you market is

:09:34. > :09:38.really quickly. It is all about the Federal Reserve annual meeting on

:09:39. > :09:44.Friday, markets are treading water and trying to guess what will Janet

:09:45. > :09:48.Yellen say, ahead of the US Federal Reserve, when she does her speech

:09:49. > :09:51.there at the end of the week? That is all from me for the time being. I

:09:52. > :09:57.will see you soon. The Labour leadership candidate

:09:58. > :10:00.Owen Smith has pledged