:00:00. > :00:17.Now it's time for World Business Report:
:00:18. > :00:20.The UK Prime Minister prepares for a Brexit heavy Queen's Speech
:00:21. > :00:27.we talk you through what's at stake.
:00:28. > :00:32.Remember the romantic days of supersonic air travel?
:00:33. > :00:35.The days when the Concorde was the choice of the jet-set.
:00:36. > :00:42.Well its back to the future at the Paris Air Show.
:00:43. > :00:49.I'm Sally Bundock, also in the programme Toshiba has just
:00:50. > :00:56.announced who will buy its prized chip making unit.
:00:57. > :01:00.We'll be live in Tokyo for the latest.
:01:01. > :01:06.The British government sets out its legislative programme
:01:07. > :01:08.for the coming year today, and the economy looks set
:01:09. > :01:16.Ancient custom means it's actually announced
:01:17. > :01:18.by Queen Elizabeth, hence the name of the occasion -
:01:19. > :01:22.The recent general election left the governing Conservative Party
:01:23. > :01:26.So it is currently working on a deal to get the support
:01:27. > :01:29.of Northern Ireland's Democratic Unionist Party.
:01:30. > :01:35.But that minority status could limit how bold the government
:01:36. > :01:38.wants to be, at a time when economic growth in the UK
:01:39. > :01:40.is slowing down and it is negotiating its exit
:01:41. > :01:44.There are plans to stimulate the economy so measures to boost
:01:45. > :01:49.major travel infrastructure projects are thought to be on the cards.
:01:50. > :01:54.But plans to reform pensions, and social care for the elderly
:01:55. > :01:56.have proved very controversial and could be left off
:01:57. > :02:01.With me is Lorenzo Codogno, London School of Economics
:02:02. > :02:09.and Political Science and LC Macro Advisors Ltd
:02:10. > :02:19.Good morning. Thank you for coming in. Let's have a talk about what is
:02:20. > :02:27.likely to be in this speech. Many are saying it will be Brexit heavy.
:02:28. > :02:32.In many ways it will be watered down because there is still no deal with
:02:33. > :02:40.the Democratic Unionist Party. That would represent some kind of what
:02:41. > :02:45.went down is supposed to what could have been expected. Clearly, the
:02:46. > :02:52.vote was about Brexit. We are coming from a referendum so clearly Brexit
:02:53. > :03:00.will be the focus of the speech although I doubt there will be clear
:03:01. > :03:09.messages. It will take a while before the messages become clear. It
:03:10. > :03:16.will be general. Maybe more on the fiscal stance. When it comes to the
:03:17. > :03:23.UK economy, the Chancellor is an Britain is weary of austerity after
:03:24. > :03:29.seven years and Mike cunning, the governor of the Bank of England
:03:30. > :03:37.saying we are likely to be hit by the costs of Brexit. What will be in
:03:38. > :03:42.the speech to try to give the people a boost? The Bank of England is
:03:43. > :03:47.absolutely right but I do not like the word austerity. I think you
:03:48. > :03:57.should combine then need to reduce the deficit and the debts... Fiscal
:03:58. > :04:01.discipline has to remain? Foreshore. However, given the economy that the
:04:02. > :04:08.economy is about to slow, it makes sense to postpone some of the
:04:09. > :04:21.measures or died loot the adjustments over a period of time.
:04:22. > :04:26.Dilutes. I think there are separate issues. The more political issue and
:04:27. > :04:34.the government needs to make sure that incentives are dressed in the
:04:35. > :04:40.proper way. The issue has economic outcomes and it will be on the mind
:04:41. > :04:45.of Theresa May as she tries to cling on to power and the remainder the
:04:46. > :04:49.Prime Minister with an opposition leader like Jeremy Corbyn who says
:04:50. > :04:55.he will challenge this speech straightaway. Absolutely. After the
:04:56. > :05:05.election, that will become the heat issue here, particularly as you see
:05:06. > :05:08.the economy slowing, there is pressure on the government to
:05:09. > :05:13.deliver something. But again, the government needs to make sure it is
:05:14. > :05:18.done in the proper way, without undermining, in pinching the social
:05:19. > :05:27.structure of the economy otherwise it will become even worse. It needs
:05:28. > :05:33.to be balanced and that will be the big exercise for the next
:05:34. > :05:38.government. Thank you very much indeed. I hope they were listening.
:05:39. > :05:40.The Queen's Speech begins later and when it does, we will be a cross it
:05:41. > :05:45.for you. fom the Paris Air Show -
:05:46. > :05:49.Theo Leggett is there for us and has been talking to a company
:05:50. > :05:59.boss who has big plans It is time to have a faster at plan.
:06:00. > :06:07.We are building an aircraft faster than Concorde but more affordable to
:06:08. > :06:20.fly. Just looking at the model, it looks similar to the Concorde...
:06:21. > :06:25.Physics dictate a certain shape. We build something significantly more
:06:26. > :06:36.efficient and more affordable. 75% less costs. The fuselage is a
:06:37. > :06:43.different shape. This is tailored, a shape that could be made with
:06:44. > :06:51.cheaper material. It can go faster because it can take more heat. We
:06:52. > :07:00.put all turbo fan which is more quiet and more fuel efficient. A
:07:01. > :07:09.ticket on this could cost around 5000. Noise is a real issue?
:07:10. > :07:15.Concorde was the loudest passenger plan ever made. This will be no
:07:16. > :07:25.louder than any other plan. You still have the sonic boom? Sonic
:07:26. > :07:32.booms are not as bad as people think. You have to fly 100 feet off
:07:33. > :07:40.the ground to break a window. Up at 60,000 feet, this will sound more
:07:41. > :07:46.like a car door slam, nothing louder than what we hear today.
:07:47. > :07:49.The chips are in and the choice have been made.
:07:50. > :07:52.Japanese conglomerate Toshiba has chosen a preferred bidder for it's
:07:53. > :07:58.Rico Hizon is in our Asia business Hub in Singapore
:07:59. > :08:04.Rico, not surprisingly they chose to let it remain Japanese.
:08:05. > :08:15.Not a simple answer. After a month long search Toshiba has picked a
:08:16. > :08:25.government led consortium led by Innovation Network Corp, as well as
:08:26. > :08:38.Bain Capital also joining the group South Korean's SK Hynix Inc. This
:08:39. > :08:44.chip business is worth more than 20 billion US dollars. Toshiba said the
:08:45. > :08:55.consortium presented the best proposal. Toshiba had to unload this
:08:56. > :09:04.unit to cover it is now bankrupt US - UK business. Taiwan's Fox gone and
:09:05. > :09:12.the Japanese government expressed concerns about its close ties with
:09:13. > :09:17.China. Other businesses also interested in buying it. Toshiba
:09:18. > :09:26.wants to reach an agreement by June 28, the day of its annual business
:09:27. > :09:30.meeting. US stock index provider MSCI has
:09:31. > :09:33.agreed to include China's mainland domestic shares in its emerging
:09:34. > :09:38.markets index for the first time. The move is a step forward
:09:39. > :09:42.for Beijing as it attempts to open up its financial markets
:09:43. > :09:45.and attract foreign capital. China's inclusion had been rejected
:09:46. > :09:47.for the past three years, amid worries about regulation and
:09:48. > :10:05.accessibility for global investors. A big step forward and that story
:10:06. > :10:12.has caused markets in China to move higher say the action in Shanghai is
:10:13. > :10:17.heading higher for Chinese stocks but it has not been felt in Hong
:10:18. > :10:26.Kong. Japan also down by nearly 0.5%. Oil prices rolling quite
:10:27. > :10:32.significantly on news of a real oversupply of oil in the market and
:10:33. > :10:38.it has put oil into a bear market. A slight fall for the US. Let's not
:10:39. > :10:44.forget two of the main markets closed at fresh record highs
:10:45. > :10:47.yesterday so maybe a touch of profit-taking. See you for the News
:10:48. > :10:51.review.