:00:00. > :00:17.Now it's time for World Business Report.
:00:18. > :00:19.Business after Brexit - the UK finance minister
:00:20. > :00:21.delivers his so called Mansion House speech to business leaders
:00:22. > :00:25.in the City of London - so what will he promise
:00:26. > :00:41.Our man at the Paris airshow checks it out.
:00:42. > :00:48.Welcome to World Business Report - I'm Sally Bundock -
:00:49. > :00:51.also in the programme a warning Australia's banks
:00:52. > :00:56.Rico will have the details in a moment.
:00:57. > :01:03.All eyes are on the UK's finance minister today
:01:04. > :01:06.as he outlines his vision of Britain after Brexit.
:01:07. > :01:08.The Chancellor of the Exchequer, Philip Hammond is delivering his
:01:09. > :01:10.famous Mansion House speech in London -
:01:11. > :01:13.one of the biggest set-piece events of Britain's economic calendar.
:01:14. > :01:16.It's been given added importance by the fact that Britain
:01:17. > :01:19.has finallky started Brexit negotiations
:01:20. > :01:25.Mr Hammond has been at pains to calm fears of an abrupt change
:01:26. > :01:27.to relations between the EU and Britain -
:01:28. > :01:32.saying he wants the UK to experience trade in a way that "feels as close
:01:33. > :01:35.as possible to the way it feels now".
:01:36. > :01:37.He acknowledges the UK will leave the single market
:01:38. > :01:44.but insists it should reach a deal that allows British goods
:01:45. > :01:46.to flow without tariffs, delays and bureaucracy.
:01:47. > :01:52.And he stresses it would be "a very - very bad outcome" if no
:01:53. > :01:57.That's despite the Prime Minister Theresa May's
:01:58. > :02:00.mantra that no deal is better than a bad deal.
:02:01. > :02:03.With me is Jonathan Portes - Professor of Economics at Kings
:02:04. > :02:19.Good morning. We were all watching David Davis meeting the EU's
:02:20. > :02:25.equivalent Michel Barnier. Today it is Philip Hammond setting out his
:02:26. > :02:32.message. He is trying to reassure business that they will be no cliff
:02:33. > :02:35.edge Brexit. We are still headed for hard except, leaving the customs
:02:36. > :02:39.union and the single market. He will try and reassure business that he
:02:40. > :02:46.will do his best to ensure that won't happen on March 29 2019. There
:02:47. > :02:51.will be a transitional period where he hopes things will carry on like
:02:52. > :02:54.they are now. How do you think he will try to make that happen or
:02:55. > :03:01.guarantee that, given the fact that even yesterday, David Davis has
:03:02. > :03:07.given ground already? David Davis has given ground. David Davis said
:03:08. > :03:11.the row over summer will be a round sequencing whether we will start
:03:12. > :03:14.talking about trade at the same time as we started talking about the
:03:15. > :03:18.subjects that the EU wants to talk about, our expert Bill and what
:03:19. > :03:24.happens to EU citizens here and Britons in Europe. It wasn't a row
:03:25. > :03:28.at all. We in the UK have simply accepted the EU's terms on this but
:03:29. > :03:32.that means we have to sort out all those difficult issues about the
:03:33. > :03:36.terms of our excellent, the so-called divorce Bill, whether EU
:03:37. > :03:41.citizens here and Britons abroad have the same rights. We have to
:03:42. > :03:45.sort of all of that out before we start talking about the transitional
:03:46. > :03:54.period, if there is going to be won, and what it will look like. That is
:03:55. > :04:01.critical to business owners here and also on the content. -- continent.
:04:02. > :04:07.What can we expect from Philip Hammond? There will be a war of
:04:08. > :04:11.words. He will say what people want to hear and that we will be seeking
:04:12. > :04:19.some kind of regulatory equivalents after Brexit. So this is important
:04:20. > :04:24.to the city of London, just to explain it to the viewers who are
:04:25. > :04:30.unaware. Jetta it will give some assurance that some at least of our
:04:31. > :04:34.financial sector could continue to trade and operate businesses in the
:04:35. > :04:42.rest of the EQ the way it does now. -- it will give some assurance. --
:04:43. > :04:46.EU. It would require all the 27 governments to give a mandate to
:04:47. > :04:51.negotiate is to talk about and at the moment, there is little sign of
:04:52. > :04:57.it. Mr Hammond can't deliver on the war of words, possibly. Very thing.
:04:58. > :05:00.When he starts to deliver the speech, we will be a cross that here
:05:01. > :05:04.on the BBC. We have to move on. The credit ratings agency Moody's
:05:05. > :05:06.has downgraded 12 Australian banks, including the country's four
:05:07. > :05:08.largest, blaming elevated risk Rico Hizon is in our
:05:09. > :05:24.Asia Business Hub in Singapore. Is a bubble about to burst? Hope the
:05:25. > :05:28.Lynott. That's why we have seen the major ratings agency doing
:05:29. > :05:32.everything they can to downgrade some of the major banks in
:05:33. > :05:38.Australia. -- hopefully not. We have seen real estate prices in Australia
:05:39. > :05:43.almost doubling from levels in 2009. That's why Moody's has downgraded
:05:44. > :05:46.the big four banks. ANZ, Commonwealth Bank, National
:05:47. > :05:52.Australia Bank and Westpac by one notch, together with the eight other
:05:53. > :05:58.smaller banks. Share prices of Australia's big four banks are
:05:59. > :06:11.currently falling in Sydney trade by around .5% - 1%. Fitch earlier this
:06:12. > :06:14.year lowered its outlook on the sector but left ratings unchanged.
:06:15. > :06:21.It was Moody's that was quite aggressive with they get downgrade.
:06:22. > :06:26.-- with their downgrade. The only way they could be an upgrade is if
:06:27. > :06:30.they see a period of relative stability when household debt
:06:31. > :06:33.doesn't increase much further from current levels. This gives the
:06:34. > :06:37.household a chance to reduce their leveraged and when the mortgage is
:06:38. > :06:41.start to perform, this is a benefit to the banks. It won't happen
:06:42. > :06:46.overnight. Maybe several years before this could turn around.
:06:47. > :06:49.The Paris Airshow, which is taking place this week, is best known
:06:50. > :06:52.as an aerospace industry jamboree - dominated by the multi-billion
:06:53. > :06:55.dollar deals announced by the big beasts of the sector.
:06:56. > :06:59.And some of them have rather imaginative ideas -
:07:00. > :07:03.Our reporter Theo Leggett has been taking a look at one gadget
:07:04. > :07:14.which promises to help car drivers rise above the traffic jams.
:07:15. > :07:23.Here we are at the Paris Airshow and an sitting in a car but not just any
:07:24. > :07:27.car. Let's look at this one. It is rather special. Quite cramped and
:07:28. > :07:32.there is a reason for that. If we go around the front, as you can see,
:07:33. > :07:37.aerodynamic, streamlined, very nice. It is a bit long because this... It
:07:38. > :07:42.is at the airshow, it is a flying car. Not just a prototype. This one
:07:43. > :08:06.can really take off. Watch the video.
:08:07. > :08:14.Impressive, isn't it? And it doesn't actually have some neat party tricks
:08:15. > :08:18.as well which we will show you in a minute. Come over here. I want to
:08:19. > :08:25.talk to one of the men behind it from the Slovakian company behind
:08:26. > :08:30.this elegant beast. What is it for and who will buy it? It is a tech
:08:31. > :08:40.knowledge it demonstrated for what we see as a large challenge and
:08:41. > :08:47.opportunity. -- technology. It creates a level of demonstration and
:08:48. > :08:51.therefore it will be seen by early adopters and people who want to
:08:52. > :08:53.encourage the development of these types of vehicles.
:08:54. > :08:57.Time Warner and Snap have agreed to develop original scripted dramas
:08:58. > :09:01.Time Warner brands HBO, Turner and Warner Bros will also
:09:02. > :09:03.advertise on the augmented reality and messaging platform.
:09:04. > :09:17.The deal is reportedly worth US$100 million.
:09:18. > :09:28.The tech stocks are back. Technology stocks were climbing again on the
:09:29. > :09:32.NASDAQ index on Wall Street and that is pushing technology stocks higher
:09:33. > :09:39.in Asia today. You can see Hong Kong down and the price of oil $47 per
:09:40. > :09:45.barrel. In the US, you have a sense of how things ended there. The
:09:46. > :09:51.NASDAQ rebounded. And they are all headed higher. How long will it
:09:52. > :10:04.last? I will be back in a moment. Stay with us.