05/09/2016

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:00:00. > :00:00.Now for the latest financial news with Aaron and World Business

:00:00. > :00:18.As leaders of the world's most powerful nations try to breathe

:00:19. > :00:21.fresh life into the global economy at the G20 summit,

:00:22. > :00:24.it is more or less hijacked by one issue -

:00:25. > :00:30.Forget "roll out the barrel", it is more like "knock

:00:31. > :00:38.It is the art of making wooden barrels for beer and spirits.

:00:39. > :00:41.It lives on in the few remaining cooperages in the US,

:00:42. > :01:08.Thank you for joining us. If you are watching in Britain if I am too

:01:09. > :01:14.loud, turn the volume down. This is a snapshot of all that is happening

:01:15. > :01:15.in the world of his nurse and money. -- business and money.

:01:16. > :01:19.The Chinese city of Hangzhou is playing host to the G20 summit,

:01:20. > :01:24.Since the global financial crisis of 2008, China has moved up

:01:25. > :01:27.In terms of size, it is the second-largest economy

:01:28. > :01:31.For President Xi Jinping, the summit is a chance for China

:01:32. > :01:34.to claim its place at the top of global economic leadership.

:01:35. > :01:38.But there will also be something new to talk about at this summit.

:01:39. > :01:41.It is the first big international outing

:01:42. > :01:43.for this lady here, the new British Prime Minister,

:01:44. > :01:48.Many at the summit are concerned about the effects of the Brexit vote

:01:49. > :01:57.Japan has issued a pointed statement outlining its concerns over Brexit,

:01:58. > :02:00.and today, China and the UK will discuss China's investment

:02:01. > :02:09.Robin Brant joins me now from the summit in Hangzhou.

:02:10. > :02:17.Great to see you. Let's start with this. I am just curious, how much

:02:18. > :02:23.talk there is about Brexit, how big is it, if you will? Well, I think it

:02:24. > :02:27.dominated the discussions between Theresa May, on her international

:02:28. > :02:31.debut as you said, Barack Obama yesterday, and he made no bones

:02:32. > :02:35.about it. Even though there is a special relationship between these

:02:36. > :02:38.two countries, he said that the US was concerned about any adverse

:02:39. > :02:42.effect on trade between the two nations as the UK tries to extricate

:02:43. > :02:46.itself from the European Union. And he reminded Theresa May that the US

:02:47. > :02:49.thinks it is more important to try and reach a free-trade agreement

:02:50. > :02:53.with the European Union and its Asia-Pacific partners first. So the

:02:54. > :02:57.reality is that Britain is at the back of the queue when it comes to

:02:58. > :03:00.some kind of deal with the United States. There is broad anxiety as

:03:01. > :03:04.well about the UK's decision to leave the European Union. Firstly

:03:05. > :03:07.because what will that mean for countries here and their trade with

:03:08. > :03:11.the UK. But institutionally what does it mean for the European Union

:03:12. > :03:16.as a club at a time when the global economy is showing no signs of

:03:17. > :03:24.improving at all. You've got to love it, all these leaders wanting to put

:03:25. > :03:28.their two sense -- 2 cents in. I want to ask you, Theresa May will

:03:29. > :03:40.sit down with the Chinese officials, and I am not sure if it is also with

:03:41. > :03:44.Xi Jinping, to talk about Hinkley Point. I wonder if China will be

:03:45. > :03:48.able to reassure her over the security concerns, which is the

:03:49. > :03:54.reason why we think Britain delayed this deal. Yes, I am not sure there

:03:55. > :03:57.is much more that President Xi Jinping can do to reassure her

:03:58. > :04:00.although there are concerns I think amongst some officials around the

:04:01. > :04:04.Prime Minister about national security and worries about a malign

:04:05. > :04:08.influence that China may have years down the line if it was indeed to be

:04:09. > :04:13.in control of this very important infrastructure. Things like nuclear

:04:14. > :04:18.power stations. Make no mistake, this is a very important meeting for

:04:19. > :04:21.her. For the Chinese, they are financially invested in Hinkley

:04:22. > :04:24.Point but crucially they have been The Project lead for the further

:04:25. > :04:28.nuclear power stations to follow. They want to show the world they can

:04:29. > :04:32.do big, hi-tech infrastructure stuff like this. And the fact that the

:04:33. > :04:36.Prime Minister has put the agreement on hold and is having a fresh look

:04:37. > :04:40.at it is a source of concern for them. There will be no decision all

:04:41. > :04:44.of a sudden at the G20 summit from her. They will have to wait for that

:04:45. > :04:48.but she has to reassure them that she is being fair in her assessment.

:04:49. > :04:52.Senior figures are telling me they believe this is a dangerous time for

:04:53. > :04:56.UK- China relations and even the idea that some seem to be looting

:04:57. > :04:59.around the Prime Minister that you can operate two halves of the

:05:00. > :05:02.nuclear deal, yes, the Chinese can put their money in but the Prime

:05:03. > :05:05.Minister might prevent them being involved in building the other

:05:06. > :05:09.stations. Those kind of people suggesting that kind of thing being

:05:10. > :05:16.described as idiotic. We will talk to you very soon. We will speak to

:05:17. > :05:17.rob and a lot in the next couple of days.

:05:18. > :05:19.Shares of the troubled South Korean shipping giant Hanjin slumped

:05:20. > :05:22.by the daily limit of 30% when trading resumed this morning,

:05:23. > :05:37.They carry all our stuff around the world. Basically, the company has

:05:38. > :05:39.been going down the gurgler. Rico Hizon is in our

:05:40. > :05:50.Asia Business Hub in Singapore. I am wondering if Hanjin is a bit of

:05:51. > :05:54.a story, a bit of an example, of what is going on with the global

:05:55. > :05:58.economy? Because the shipping, it carries all our stuff, it is cargo

:05:59. > :06:02.shipping which is a leading indicator of the global economy, and

:06:03. > :06:09.we no prices have fallen through the floor, haven't they? That's right.

:06:10. > :06:13.The global economy is slowing down. Exports are slowing down. Trade is

:06:14. > :06:18.slowing down. The Hanjin shipping empire is crumbling, and as you

:06:19. > :06:23.mentioned, its share price as well. You know, the South Korean shipping

:06:24. > :06:28.company is struggling to contain the fallout of its collapse, as it has

:06:29. > :06:33.filed even for bankruptcy protection in the United States to protect its

:06:34. > :06:36.vessels from being seized by creditors. And this is days after

:06:37. > :06:42.the company sought protection in South Korea mid last week. And

:06:43. > :06:47.shares plummeting today, by the daily limit. Trading resumed after

:06:48. > :06:52.being suspended since 30 August, and Hanjin filed for receivership in

:06:53. > :06:56.Seoul on Wednesday, after banks withdrew their support. The courts

:06:57. > :07:01.have secretly decided to begin rehabilitations proceeding in South

:07:02. > :07:06.Korea. Shares plummeting to 871, their lowest level since December

:07:07. > :07:12.2009, and Hanjin is currently the largest shipping company in Korea,

:07:13. > :07:19.Aaron, operating approximately 60 sites worldwide, 140 will vessels.

:07:20. > :07:23.It is ranked ninth largest, transporting over 100 million tons

:07:24. > :07:28.of cargo a year. Just by its sheer volume, the collapse of Hanjin goes

:07:29. > :07:30.to show that indeed we are in a slowing global economy. We are, good

:07:31. > :07:33.on you. We will talk to you soon. Manufacturing jobs in the US

:07:34. > :07:36.may be on the decline, but there is one industry

:07:37. > :07:38.that is experiencing Makers of barrels, that is, because

:07:39. > :07:50.I didn't know that this morning. Demand for wood barrels to age wine

:07:51. > :07:54.and spirits is on the rise, and with only a few dozen

:07:55. > :07:57.barrel-makers in the United States, it is a good time to be

:07:58. > :08:04.in the barrel -building business. At a time when machines are

:08:05. > :08:09.replacing people, this is a craft that still depends on the human

:08:10. > :08:13.touch. As a child, George watched his grandfather make wood barrels

:08:14. > :08:20.back in Romania. He didn't just learn a skill, he inherited a

:08:21. > :08:24.passion. I started with my grandfather when I was a very young

:08:25. > :08:30.child. Maybe I watch him by six years old, I started to imitate him

:08:31. > :08:35.by ten years old. And after that I was in and out doing barrels,

:08:36. > :08:40.sometimes as a hobby and later on I decided to do it professionally, for

:08:41. > :08:44.business. Demand for these kind of wood barrels is increasing. And that

:08:45. > :08:49.is because domestic whiskey production, that is whiskey made

:08:50. > :08:53.right here in the US, is up some 40%. And a big part of that has to

:08:54. > :09:00.do with consumers wanting to drink locally. The trend towards eating

:09:01. > :09:05.locally sourced foods has seeped into America's alcohol industry,

:09:06. > :09:11.giving rise to small batch and craft distilleries. Over the last ten

:09:12. > :09:15.years, the craft ruing movement has really just blown up. And whiskey,

:09:16. > :09:21.American whiskey, in particular, is just taking on a whole new

:09:22. > :09:25.Renaissance, if you will, with different dynamics, with different

:09:26. > :09:33.grains, the amazing different still types, and of course using fantastic

:09:34. > :09:37.barrels. C, you have two tap from the side, because you hit like that,

:09:38. > :09:45.and you destroy your finger. Three decades after leaving Romania, Voicu

:09:46. > :09:50.abandon his career in engineering, in favour of bringing his old world

:09:51. > :09:54.skill to the US market. What do you think your grandfather would save

:09:55. > :09:56.the sort you are doing our? He would be very happy, absolutely very

:09:57. > :10:00.happy, I am sure. Don't forget, you can get

:10:01. > :10:13.in touch with me and some I will be back to take a look at the

:10:14. > :10:16.papers from around the world. Hooroo.

:10:17. > :10:20.All day here on the BBC, we are going to be taking a closer

:10:21. > :10:23.look at the fallout from Britain's decision to leave