29/05/2017

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:00:00. > :00:17.Now it's time for World Business Report.

:00:18. > :00:19.France's newly elected President Emmanuel Macron faces

:00:20. > :00:23.a diplomatic challenge as he meets with Russia's Vladimir Putin.

:00:24. > :00:29.But the countries do have deep economic ties.

:00:30. > :00:31.It used to call itself "the World's Favourite Airline",

:00:32. > :00:33.but with flight disruptions entering a third day,

:00:34. > :00:41.few of BA's passengers are likely to agree.

:00:42. > :00:43.Welcome to World Business Report. I'm Jamie Robertson.

:00:44. > :00:47.In a minute we'll have special report from Sri Lanka on why

:00:48. > :00:50.the country is selling chunks of its infrastructure back

:00:51. > :00:52.to the country that built them, China.

:00:53. > :01:00.today the new French President Emmanuel Macron will meet

:01:01. > :01:02.with his Russian counterpart, Vladimir Putin.

:01:03. > :01:06.The Kremlin was hoping that the meeting would take place

:01:07. > :01:09.under rather different circumstances - in the recent French election

:01:10. > :01:12.campaign, Mr Putin had voiced his support for the eurosceptic

:01:13. > :01:15.candidate Marine Le Pen, who lost to Mr Macron.

:01:16. > :01:17.Nonetheless, the relationship between France and Russia remains

:01:18. > :01:26.France is Russia's biggest foreign investor -

:01:27. > :01:29.in the first quarter of this year, French businesses injected 797

:01:30. > :01:33.million dollars into the Russian economy.

:01:34. > :01:36.This compares to Germany with $350 million and the United States

:01:37. > :01:42.Significant tension still exists between Russia and the West

:01:43. > :01:44.following the country's ongoing dispute with Ukraine.

:01:45. > :01:53.With me is Lilit GEVORGYAN, Senior Economist at IHS

:01:54. > :01:55.Global Insight British Airways is facing questions over

:01:56. > :01:58.the catastrophic failure of its computer system and how it's

:01:59. > :02:15.Vladimir Putin wants to meet the man who managed to secure victory,

:02:16. > :02:19.despite the odds but secondly I think the Russian President has a

:02:20. > :02:23.number of messages to deliver to the new French leader and the first

:02:24. > :02:29.message would be to decouple politics from economic and work on

:02:30. > :02:35.our political disagreements, rebuild our political relationship but I

:02:36. > :02:41.think President Putin will use the word pragmatism which in Russian

:02:42. > :02:47.interpretation means let's work on commercial relations. We are very

:02:48. > :02:53.much interested in around 6000 French companies working in

:02:54. > :03:01.Russia... Self interest, you are talking about. Is Mr Macron going to

:03:02. > :03:05.say I am part of the European Union all let's talk about our

:03:06. > :03:12.relationship? Diplomatically he will comment on long-standing Russian-

:03:13. > :03:20.French relationship, the history and its ties to Peter the Great, however

:03:21. > :03:28.I think, lucky for the Russian President, he is dealing with a

:03:29. > :03:36.French leader who probably has trust issues with the Russian leader at

:03:37. > :03:39.the moment and he is also a staunch supporter of the European Union so

:03:40. > :03:50.the sort of Rees said that the Russian leader would be looking for

:03:51. > :03:55.is unlikely to happen. Do we know what Mr Macron feels about the

:03:56. > :04:01.sanctions? He has made clear that a tough stand is required against

:04:02. > :04:05.Russia for its involvement in Ukraine and Syria full dog what the

:04:06. > :04:14.Russian President will try to do is suggest that the world political

:04:15. > :04:21.scene is changing. -- Syria. . Lets be more pragmatic and accept that

:04:22. > :04:28.Russia is a global player and it has its terms of engagement. He is going

:04:29. > :04:33.to be in France, the reason he is there because of an exhibition to do

:04:34. > :04:42.with Peter the Great. A lot of symbolism. Can you explain what that

:04:43. > :04:47.is? Peter the Great was the one who brought European modernisation to

:04:48. > :04:52.Russia, the glory to Russia. It was about engagement and opening up to

:04:53. > :04:59.the West and Europe. The Russian leader also hopes his legacy will be

:05:00. > :05:06.one of bringing that glory, to be one of the chosen global powers in

:05:07. > :05:15.the world and expanding Russia's borders by annex in Crimea... With

:05:16. > :05:17.Peter the Great and Mr Macron... We must leave it there. Thank you so

:05:18. > :05:19.much. We are now entering the third day

:05:20. > :05:23.of disruption, even if the airline says it's making "good progress"

:05:24. > :05:26.in returning flights to normal. In a few hours we will see how

:05:27. > :05:38.investors are reacting when the Madrid Stock Exchange

:05:39. > :05:42.opens, BA's owner IAG has a dual listing in London and Madrid,

:05:43. > :05:44.but the London market And our reporter at Heathrow,

:05:45. > :05:48.Joe Lynam, says BA faces a huge They are obliged under European

:05:49. > :05:59.passengers left stranded. They are obliged under European

:06:00. > :06:03.rules to apply compensation for even a two-hour delay and some people

:06:04. > :06:12.have been waiting for a day and a half. That could stretch to $700 and

:06:13. > :06:17.that is only one leg. It can see what I mean, you can see thousands

:06:18. > :06:21.of dollars per person multiplied by who knows how many thousands of

:06:22. > :06:50.customers. Financially, this is going to cost them. A report from

:06:51. > :06:56.Sri Lanka. This port in southern Sri Lanka opened in 2010 and cost more

:06:57. > :07:01.than $1 billion and was paid for with loans from China. There was

:07:02. > :07:05.only one ship here this morning and it left a little while ago. The next

:07:06. > :07:11.one does not arrive until tomorrow. Compare that with these companies

:07:12. > :07:16.are the port in Colombia, seeing hundreds of ships going in and out

:07:17. > :07:21.each day for top all of these has been built but barely anyone is

:07:22. > :07:26.using it. For Sri Lanka, the sport has become a large investment that

:07:27. > :07:31.is bringing few returns. That means the country is unable to pay back

:07:32. > :07:35.the money it borrowed to build it and so instead the Sri Lankan

:07:36. > :07:43.government is now planning to give a major stake in the port to a Chinese

:07:44. > :07:52.firm - it could be as high as 80%. It is activity that does not bring

:07:53. > :07:58.economic return. You can keep it there with nothing but the next step

:07:59. > :08:05.is to look if you can sell it. A brand-new city is being created off

:08:06. > :08:10.the coast of Colombia, with swanky corporate offices, apartment blocks,

:08:11. > :08:17.parks, and even a marina. It is being built by Chinese company but

:08:18. > :08:24.in return for the money, two thirds of this city it will be handed over.

:08:25. > :08:32.China will effectively control another part of Sri Lanka. Some

:08:33. > :08:37.China backed projects led to protests from locals and willing to

:08:38. > :08:41.sell their land, homes and farms for development but not all Chinese

:08:42. > :08:45.investment has been without benefit. Many highways and roads construct

:08:46. > :08:53.that have helped boost tourism but Sri Lanka is trapped in a debt

:08:54. > :08:57.crisis and owes $1 billion to China alone. So whether good or bad, the

:08:58. > :09:04.government here does not have much room to negotiate on the kind of

:09:05. > :09:20.deals it tries to do to help its economy and its people. In Monaco,

:09:21. > :09:29.the yachts stole the show but what will you do if you do not have all

:09:30. > :09:34.the space for all your toys. If you are a member of the super-rich, the

:09:35. > :09:39.chances are you will have a super yacht but that comes with it

:09:40. > :09:44.headaches like we do you put the all your private submarine? This is what

:09:45. > :09:51.this is all about. It is really rather special. This is the game

:09:52. > :09:55.changer. The idea is that it is as port vessel for super yachts so when

:09:56. > :10:00.you are cruising around the Caribbean and you do not want your

:10:01. > :10:06.little toys cluttering your decks, and you have somewhere to put them.

:10:07. > :10:16.It is 60 a beach is long. Spaceball speedboats and irreplaceable is. In

:10:17. > :10:21.this market, size does matter. You need somewhere to park your

:10:22. > :10:28.helicopter. This is the all-important helipad. And a hangar

:10:29. > :10:33.to keep it safe and dry. This is a limited market, there are only so

:10:34. > :10:40.many people in the world with super yachts that might need something

:10:41. > :10:46.like this. If you have to ask how much it costs, you really cannot

:10:47. > :10:50.afford it. You can get in touch with me on Twitter. I will be back with

:10:51. > :11:01.more when we look at the newspapers later.

:11:02. > :11:04.More than 200 drivers a day have been caught using their mobile

:11:05. > :11:08.phones in the month since the law was tightened.