21/06/2017 World Business Report

Now it's time for World Business Report:

The UK Prime Minister prepares for a Brexit heavy Queen's Speech

we talk you through what's at stake.

Remember the romantic days of supersonic air travel?

The days when the Concorde was the choice of the jet-set.

Well its back to the future at the Paris Air Show.

I'm Sally Bundock, also in the programme Toshiba has just

announced who will buy its prized chip making unit.

We'll be live in Tokyo for the latest.

The British government sets out its legislative programme

for the coming year today, and the economy looks set

Ancient custom means it's actually announced

by Queen Elizabeth, hence the name of the occasion -

The recent general election left the governing Conservative Party

So it is currently working on a deal to get the support

of Northern Ireland's Democratic Unionist Party.

But that minority status could limit how bold the government

wants to be, at a time when economic growth in the UK

is slowing down and it is negotiating its exit

There are plans to stimulate the economy so measures to boost

major travel infrastructure projects are thought to be on the cards.

But plans to reform pensions, and social care for the elderly

have proved very controversial and could be left off

With me is Lorenzo Codogno, London School of Economics

and Political Science and LC Macro Advisors Ltd

Good morning. Thank you for coming in. Let's have a talk about what is

likely to be in this speech. Many are saying it will be Brexit heavy.

In many ways it will be watered down because there is still no deal with

the Democratic Unionist Party. That would represent some kind of what

went down is supposed to what could have been expected. Clearly, the

vote was about Brexit. We are coming from a referendum so clearly Brexit

will be the focus of the speech although I doubt there will be clear

messages. It will take a while before the messages become clear. It

will be general. Maybe more on the fiscal stance. When it comes to the

UK economy, the Chancellor is an Britain is weary of austerity after

seven years and Mike cunning, the governor of the Bank of England

saying we are likely to be hit by the costs of Brexit. What will be in

the speech to try to give the people a boost? The Bank of England is

absolutely right but I do not like the word austerity. I think you

should combine then need to reduce the deficit and the debts... Fiscal

discipline has to remain? Foreshore. However, given the economy that the

economy is about to slow, it makes sense to postpone some of the

measures or died loot the adjustments over a period of time.

Dilutes. I think there are separate issues. The more political issue and

the government needs to make sure that incentives are dressed in the

proper way. The issue has economic outcomes and it will be on the mind

of Theresa May as she tries to cling on to power and the remainder the

Prime Minister with an opposition leader like Jeremy Corbyn who says

he will challenge this speech straightaway. Absolutely. After the

election, that will become the heat issue here, particularly as you see

the economy slowing, there is pressure on the government to

deliver something. But again, the government needs to make sure it is

done in the proper way, without undermining, in pinching the social

structure of the economy otherwise it will become even worse. It needs

to be balanced and that will be the big exercise for the next

government. Thank you very much indeed. I hope they were listening.

The Queen's Speech begins later and when it does, we will be a cross it

for you. fom the Paris Air Show -

Theo Leggett is there for us and has been talking to a company

boss who has big plans It is time to have a faster at plan.

We are building an aircraft faster than Concorde but more affordable to

fly. Just looking at the model, it looks similar to the Concorde...

Physics dictate a certain shape. We build something significantly more

efficient and more affordable. 75% less costs. The fuselage is a

different shape. This is tailored, a shape that could be made with

cheaper material. It can go faster because it can take more heat. We

put all turbo fan which is more quiet and more fuel efficient. A

ticket on this could cost around 5000. Noise is a real issue?

Concorde was the loudest passenger plan ever made. This will be no

louder than any other plan. You still have the sonic boom? Sonic

booms are not as bad as people think. You have to fly 100 feet off

the ground to break a window. Up at 60,000 feet, this will sound more

like a car door slam, nothing louder than what we hear today.

The chips are in and the choice have been made.

Japanese conglomerate Toshiba has chosen a preferred bidder for it's

Rico Hizon is in our Asia business Hub in Singapore

Rico, not surprisingly they chose to let it remain Japanese.

Not a simple answer. After a month long search Toshiba has picked a

government led consortium led by Innovation Network Corp, as well as

Bain Capital also joining the group South Korean's SK Hynix Inc. This

chip business is worth more than 20 billion US dollars. Toshiba said the

consortium presented the best proposal. Toshiba had to unload this

unit to cover it is now bankrupt US - UK business. Taiwan's Fox gone and

the Japanese government expressed concerns about its close ties with

China. Other businesses also interested in buying it. Toshiba

wants to reach an agreement by June 28, the day of its annual business

meeting. US stock index provider MSCI has

agreed to include China's mainland domestic shares in its emerging

markets index for the first time. The move is a step forward

for Beijing as it attempts to open up its financial markets

and attract foreign capital. China's inclusion had been rejected

for the past three years, amid worries about regulation and

accessibility for global investors. A big step forward and that story

has caused markets in China to move higher say the action in Shanghai is

heading higher for Chinese stocks but it has not been felt in Hong

Kong. Japan also down by nearly 0.5%. Oil prices rolling quite

significantly on news of a real oversupply of oil in the market and

it has put oil into a bear market. A slight fall for the US. Let's not

forget two of the main markets closed at fresh record highs

yesterday so maybe a touch of profit-taking. See you for the News

review.