Browse content similar to 20/06/2017. Check below for episodes and series from the same categories and more!
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Now it's time for World Business Report. | :00:00. | :00:17. | |
Business after Brexit - the UK finance minister | :00:18. | :00:19. | |
delivers his so called Mansion House speech to business leaders | :00:20. | :00:21. | |
in the City of London - so what will he promise | :00:22. | :00:25. | |
Our man at the Paris airshow checks it out. | :00:26. | :00:41. | |
Welcome to World Business Report - I'm Sally Bundock - | :00:42. | :00:48. | |
also in the programme a warning Australia's banks | :00:49. | :00:51. | |
Rico will have the details in a moment. | :00:52. | :00:56. | |
All eyes are on the UK's finance minister today | :00:57. | :01:03. | |
as he outlines his vision of Britain after Brexit. | :01:04. | :01:06. | |
The Chancellor of the Exchequer, Philip Hammond is delivering his | :01:07. | :01:08. | |
famous Mansion House speech in London - | :01:09. | :01:10. | |
one of the biggest set-piece events of Britain's economic calendar. | :01:11. | :01:13. | |
It's been given added importance by the fact that Britain | :01:14. | :01:16. | |
has finallky started Brexit negotiations | :01:17. | :01:19. | |
Mr Hammond has been at pains to calm fears of an abrupt change | :01:20. | :01:25. | |
to relations between the EU and Britain - | :01:26. | :01:27. | |
saying he wants the UK to experience trade in a way that "feels as close | :01:28. | :01:32. | |
as possible to the way it feels now". | :01:33. | :01:35. | |
He acknowledges the UK will leave the single market | :01:36. | :01:37. | |
but insists it should reach a deal that allows British goods | :01:38. | :01:44. | |
to flow without tariffs, delays and bureaucracy. | :01:45. | :01:46. | |
And he stresses it would be "a very - very bad outcome" if no | :01:47. | :01:52. | |
That's despite the Prime Minister Theresa May's | :01:53. | :01:57. | |
mantra that no deal is better than a bad deal. | :01:58. | :02:00. | |
With me is Jonathan Portes - Professor of Economics at Kings | :02:01. | :02:03. | |
Good morning. We were all watching David Davis meeting the EU's | :02:04. | :02:19. | |
equivalent Michel Barnier. Today it is Philip Hammond setting out his | :02:20. | :02:25. | |
message. He is trying to reassure business that they will be no cliff | :02:26. | :02:32. | |
edge Brexit. We are still headed for hard except, leaving the customs | :02:33. | :02:35. | |
union and the single market. He will try and reassure business that he | :02:36. | :02:39. | |
will do his best to ensure that won't happen on March 29 2019. There | :02:40. | :02:46. | |
will be a transitional period where he hopes things will carry on like | :02:47. | :02:51. | |
they are now. How do you think he will try to make that happen or | :02:52. | :02:54. | |
guarantee that, given the fact that even yesterday, David Davis has | :02:55. | :03:01. | |
given ground already? David Davis has given ground. David Davis said | :03:02. | :03:07. | |
the row over summer will be a round sequencing whether we will start | :03:08. | :03:11. | |
talking about trade at the same time as we started talking about the | :03:12. | :03:14. | |
subjects that the EU wants to talk about, our expert Bill and what | :03:15. | :03:18. | |
happens to EU citizens here and Britons in Europe. It wasn't a row | :03:19. | :03:24. | |
at all. We in the UK have simply accepted the EU's terms on this but | :03:25. | :03:28. | |
that means we have to sort out all those difficult issues about the | :03:29. | :03:32. | |
terms of our excellent, the so-called divorce Bill, whether EU | :03:33. | :03:36. | |
citizens here and Britons abroad have the same rights. We have to | :03:37. | :03:41. | |
sort of all of that out before we start talking about the transitional | :03:42. | :03:45. | |
period, if there is going to be won, and what it will look like. That is | :03:46. | :03:54. | |
critical to business owners here and also on the content. -- continent. | :03:55. | :04:01. | |
What can we expect from Philip Hammond? There will be a war of | :04:02. | :04:07. | |
words. He will say what people want to hear and that we will be seeking | :04:08. | :04:11. | |
some kind of regulatory equivalents after Brexit. So this is important | :04:12. | :04:19. | |
to the city of London, just to explain it to the viewers who are | :04:20. | :04:24. | |
unaware. Jetta it will give some assurance that some at least of our | :04:25. | :04:30. | |
financial sector could continue to trade and operate businesses in the | :04:31. | :04:34. | |
rest of the EQ the way it does now. -- it will give some assurance. -- | :04:35. | :04:42. | |
EU. It would require all the 27 governments to give a mandate to | :04:43. | :04:46. | |
negotiate is to talk about and at the moment, there is little sign of | :04:47. | :04:51. | |
it. Mr Hammond can't deliver on the war of words, possibly. Very thing. | :04:52. | :04:57. | |
When he starts to deliver the speech, we will be a cross that here | :04:58. | :05:00. | |
on the BBC. We have to move on. The credit ratings agency Moody's | :05:01. | :05:04. | |
has downgraded 12 Australian banks, including the country's four | :05:05. | :05:06. | |
largest, blaming elevated risk Rico Hizon is in our | :05:07. | :05:08. | |
Asia Business Hub in Singapore. Is a bubble about to burst? Hope the | :05:09. | :05:24. | |
Lynott. That's why we have seen the major ratings agency doing | :05:25. | :05:28. | |
everything they can to downgrade some of the major banks in | :05:29. | :05:32. | |
Australia. -- hopefully not. We have seen real estate prices in Australia | :05:33. | :05:38. | |
almost doubling from levels in 2009. That's why Moody's has downgraded | :05:39. | :05:43. | |
the big four banks. ANZ, Commonwealth Bank, National | :05:44. | :05:46. | |
Australia Bank and Westpac by one notch, together with the eight other | :05:47. | :05:52. | |
smaller banks. Share prices of Australia's big four banks are | :05:53. | :05:58. | |
currently falling in Sydney trade by around .5% - 1%. Fitch earlier this | :05:59. | :06:11. | |
year lowered its outlook on the sector but left ratings unchanged. | :06:12. | :06:14. | |
It was Moody's that was quite aggressive with they get downgrade. | :06:15. | :06:21. | |
-- with their downgrade. The only way they could be an upgrade is if | :06:22. | :06:26. | |
they see a period of relative stability when household debt | :06:27. | :06:30. | |
doesn't increase much further from current levels. This gives the | :06:31. | :06:33. | |
household a chance to reduce their leveraged and when the mortgage is | :06:34. | :06:37. | |
start to perform, this is a benefit to the banks. It won't happen | :06:38. | :06:41. | |
overnight. Maybe several years before this could turn around. | :06:42. | :06:46. | |
The Paris Airshow, which is taking place this week, is best known | :06:47. | :06:49. | |
as an aerospace industry jamboree - dominated by the multi-billion | :06:50. | :06:52. | |
dollar deals announced by the big beasts of the sector. | :06:53. | :06:55. | |
And some of them have rather imaginative ideas - | :06:56. | :06:59. | |
Our reporter Theo Leggett has been taking a look at one gadget | :07:00. | :07:03. | |
which promises to help car drivers rise above the traffic jams. | :07:04. | :07:14. | |
Here we are at the Paris Airshow and an sitting in a car but not just any | :07:15. | :07:23. | |
car. Let's look at this one. It is rather special. Quite cramped and | :07:24. | :07:27. | |
there is a reason for that. If we go around the front, as you can see, | :07:28. | :07:32. | |
aerodynamic, streamlined, very nice. It is a bit long because this... It | :07:33. | :07:37. | |
is at the airshow, it is a flying car. Not just a prototype. This one | :07:38. | :07:42. | |
can really take off. Watch the video. | :07:43. | :08:06. | |
Impressive, isn't it? And it doesn't actually have some neat party tricks | :08:07. | :08:14. | |
as well which we will show you in a minute. Come over here. I want to | :08:15. | :08:18. | |
talk to one of the men behind it from the Slovakian company behind | :08:19. | :08:25. | |
this elegant beast. What is it for and who will buy it? It is a tech | :08:26. | :08:30. | |
knowledge it demonstrated for what we see as a large challenge and | :08:31. | :08:40. | |
opportunity. -- technology. It creates a level of demonstration and | :08:41. | :08:47. | |
therefore it will be seen by early adopters and people who want to | :08:48. | :08:51. | |
encourage the development of these types of vehicles. | :08:52. | :08:53. | |
Time Warner and Snap have agreed to develop original scripted dramas | :08:54. | :08:57. | |
Time Warner brands HBO, Turner and Warner Bros will also | :08:58. | :09:01. | |
advertise on the augmented reality and messaging platform. | :09:02. | :09:03. | |
The deal is reportedly worth US$100 million. | :09:04. | :09:17. | |
The tech stocks are back. Technology stocks were climbing again on the | :09:18. | :09:28. | |
NASDAQ index on Wall Street and that is pushing technology stocks higher | :09:29. | :09:32. | |
in Asia today. You can see Hong Kong down and the price of oil $47 per | :09:33. | :09:39. | |
barrel. In the US, you have a sense of how things ended there. The | :09:40. | :09:45. | |
NASDAQ rebounded. And they are all headed higher. How long will it | :09:46. | :09:51. | |
last? I will be back in a moment. Stay with us. | :09:52. | :10:04. |