04/04/2017 World Business Report

UK chancellor Philip Hammond goes on a mission to drum up trade

from one of the world's fastest growing economies.

Stuck in a holding pattern - a top airline boss warns Brexit

could cause chaos in the skies with flights between the UK

and Europe suspended once Britain leaves the EU.

I'm Sally Bundock also in the programme we take

you to Sydney to assess how hot the property market

is and the measures they are taking to cool it down.

But first we start in India where the UK Finance Minister

It's a two-day visit where Philip Hammond will stress

"Britain is open for business" and looking for new trade deals

as the UK negotiates its way out of the European Union.

And let's talk you through the relationship.

It hasn't been a long one, for various reasons, I am sure you know

that well. In 2014 the value of all the goods

and services sold between India and the United Kingdom

was about 24 billion dollars. And it works in India's favour

they export a lot more goods to the UK than the other way around

- their top exports are clothing, But the UK is only the 18th biggest

market for India's exports. And India only comes 17th

on the UK's list of export destinations despite

having the world's second to raise more than $1 trillion

for infrastructure over the next decade and the UK hopes

it can benefit from that given it's position as the world's top

financial services exporter. In return India will be looking

for greater freedom of movement for it's citizens who want to work

and study in the UK. Mihir Sharma is an economist

and senior fellow at the Observer Welcome to the programme. How

successful the youth think these two day trip will be in terms of laying

the foundations for future trade deal? It is important to recognise

that both the UK and India almost desperately want to have some kind

of deal. Post Brexit, India is a suitable target for the UK. India

has been struggling to get a deal for a long time. Negotiations have

broken down and it was hoped that Britain would be easier to deal with

once outside the EU. That said, when Theresa May came last year, it

became very evident that the question of more visas for Indian

workers and students was at the top of the Indian and gender and I think

the British government and the British Prime Minister felt they

could not give anything on that for political reasons. That could be a

key stumbling block because that is really what India wants to see in

terms of give-and-take and the UK is not necessarily wanting to give

that? One of the reasons I would be a little... I would not be confident

that something tangible would emerge from this trip is that it does not

seem there is any meeting down on this matter. For the past five

years, Indian children have found it increasingly difficult to stay back

in Britain to get a bit of work experience after finishing degrees.

The Visa process even fall short stays has become increasingly

difficult for Indian tourists. It has become a cumbersome procedure

and until that is reformed the Indian government is not willing to

do anything else. If they would plough ahead and get over that

obstacle, which areas of business would benefit most? We mention

financial services in the UK but what industry will be keen to get

on-board? On the Indian side, there are a lot of people who are looking

to see if services exports to the UK expanded. For example, corporations

on exporting legal services. We have similar legal systems and that would

be one thing we would be happy to see develop. There is a

pharmaceutical industry, our car industry with similar companies.

From the British side I think there has been some hope that financial

services would benefit especially given the current Indian focus to

expand Finance to many people who've been outside the financial net.

Thank you very much. When we hear more about Philip Hammond's trip we

will update you. There are currently around 12,000 EU

regulations in force across the Union and they cover

everything from banking and the chemicals industry,

to agriculture and the airline Here's our Transport Corresponded

Richard Westcott to talk through some of the pitfalls

that Brexit could create Lots of industries is just telling

for position they want to get to the front of the queue and make sure

there are except agreement is sorted first. To date it was the airline

industry that weighed in. At the moment, any EU airline can fly

anywhere in Europe and that is why we get such cheap flights but that

deal runs out when we leave the EU in two years. If they do not replace

it, there is a slim chance flights would have to stop for a while. It

is not meet saying it, it is Michael Leary, the boss of Ryanair. Other

airlines do not share his apocalyptic view. Others are very

confident a new agreement would be reached soon and that is for one

simple reason because both sides would lose too much money without

it. Without all of those tourists and business people they have to

fly. The airlines have good reason to have a quick deal. They plan

their schedule a year and a half ahead so they need to reassure

customers that when they book their holiday in 2019, their plan would

definitely be able to take off. In other news: Tesla's market value

has overtaken that of Ford making it the second most valuable

carmaker in the US. After the company announced record

vehicle deliveries in the first three months of the year Monday,

shares in the electric car maker At the close of trading Tesla had

a market value of $49 billion, compared with Ford's

value of $46 billion. Now only General Motors

is worth more. South Africa's credit rating has

been cut to junk status The agency said that political

upheaval, including the recent sacking of finance

minister Pravin Gordhan, Another ratings agency, Moody's,

said it was placing its South Africa rating - which is two notches

above "junk" status - The news put more pressure

on the rand, which was down 2% President Trump has signed a highly

controversial order that will roll back an Obama-era law that

restricted how internet service providers could use

Americans' online data. The US House of Representatives

and the Senate backed US citizen's browsing history,

location data, financial and medical information are just some

of the things that can be sold on to marketing companies in order

to better target advertisements. Do get in touch with us. We will

talk about it in a moment in the paper review. I have just dropped by

Flickr! Markets in Hong Kong today are closed as are the Indian market

and also type one. Shanghai and in China also close. A 1% loss on

Japan. The yen has been getting stronger all three days in a row and

that never helps Japan. The wonder of technology. Just my voice

activates the screen, if only that were true. The big winner was Tesla.

I will see you soon.