tv World Business Report BBC News June 16, 2017 5:30am-5:46am BST
this is bbc world news. the headlines: police have started a criminal investigation into london's deadly tower block fire but they say some some victims may never be identified. 17 bodies have been found and dozens of people are still missing. american politicians have been playing their traditional charity baseball game a day after a leading republican and three others were shot as they practised for the match. the annual congressional game in washington is seen as a rare and welcome moment of unity. a year—long investigation by bbc arabic and a danish newspaper has uncovered evidence that the uk defence giant bae systems has made large—scale sales across the middle east of sophisticated surveillance technology, including to many repressive governments. doctors treating otto warmbier, the american student released on tuesday from a north korean prison, say he has suffered extensive loss of brain tissue and is still in a coma. now it's time for world business report. back from the brink again.
after months of wrangling, lenders agree on more bailout money for greece and the chance of debt relief next year. could the greek tragedy be reaching its final act? plus, havana rethink — are cuba's growing business ties with the us now under threat from president trump? welcome to world business report. i'm rachel horne. also coming up, after the biggest recall in the history of the car industry, could faulty air bag maker takata be about to file for bankruptcy? we'll have the latest from asia. we start in greece which has edged back from the brink of financial collapse once again. late on thursday, after months of wrangling, european finance ministers, together with the international monetary fund, finally agreed to give athens its latest slice of bailout money.
and there's a hint it could get some relief from its crippling debt mountain next year. let's show you the details. greece will finally get this — 8.5 billion euros — part of an 86 billion euro bailout plan agreed in 2015 which is the third it has had. it will come just in time, as greece faces 7.3 billion euros of debt repayments due next month. it's total debt now stands at more than 337 billion euros. —— its total debt now stands at more than 337 billion euros. to put that in perspective, have a look at this — the red is greece's debt level over the past decade. the grey is its annual economic output or gross domestic product — everything of value that the country produces. the debt is currently some 180% of gdp — one of the highest levels in the world. it has struggled to narrow the gap because round after round of austerity — demanded by its lenders — has steadily weakened its economy. that's why greece has been insisting on debt relief.
in other words, writing a big chunk of it off, or at least deferring it. the issue bitterly divides its creditors. imf boss christine lagarde says that's the only way greece will ever get back on its feet and has been refusing to get involved without it. german finance minister wolfgang schaeuble has been amongst those insisting the debt must eventually be repaid in full. but it looks like some sort of debt relief could now be on for next year. the chairman of the eurozone finance ministers' group is optimistic there could soon be an end in sight. overall, i think this is a major step forward. i commend the eurogroup institutions, the greek authorities and foremost, of course, the greek people for their intense efforts and resolves. we are now going into the last year of the financial support programme of greece. we will prepare an exit strategy going forward to enable greece to stand on his own feet again over the course of next year.
thanos vamvakidis is global head of g10 foreign exchange strategy at bank of america merrill lynch. thank you for coming in. good morning. let's start with debt relief, something that germany has been adamant that greece must repay all of its debts in full but the imf said we must have some debt relief because the act is unsustainable. it's looking like greece make its debt relief in some form. they have beenin debt relief in some form. they have been in this chicken game for the last nine months. i think the agreement is a compromise which is the best outcome given all the constraints but it isn't the final solution. the reason of broad understanding that debt relief could be acquired at its another kick off the can down the road. sir you won't think we will see an agreement for a
chunk of debt to be written off, you think it is more extending repayments? this is exactly what they are discussing. depending on they are discussing. depending on the fiscal performance and economic growth, they have to agree to maturity extension to allow greece to eventually repay the debt. we are talking about an extension of between 0— 15 years, this is the discussion but of course a lot depends on what will be your long—term growth assumption because this will affect the numbers. and also what will be the assumption of the interest rate you will be paying on the loan? this is what they are discussing. it has not been signed off yet, it has to be approved by a number of parliaments?” off yet, it has to be approved by a number of parliaments? i don't expect any problems. germany was a concern, given that they require the participation of the imf, but one of the good news from the deal is the imf will participate with the so—called standby arrangement which doesn't include any money before the
race a final deal on the desk. do you feel they have been any softening of the stance towards greece because of brexit? we have seen the uk leading has perhaps made finance ministers thinking they don't want another country to live. not really but rightly so they have kept the two issues separate. if anything the creditors were tough on greece. they had approved measures for the next five years and had fiscal guidelines for the next few decades without actually getting the final answer on debt relief so this is completely separate. thank you so much for coming in. we are also in cuba because president donald trump is expected to announce a new policy towards the country during a visit to miami later today. it could see rules on trade and travel tightened once again, and undo significant elements of president obama's agreement with the island. will grant reports from havana. after almost three years of the us
policy of engagement with a great three, president trump is now expect it to unveil a new approach —— cuba. every year since 2014 has seen record numbers of visitors to the island thanks in no small part to the number of us citizens who have come here, both via direct flights and by sea on cruise ships. mr trump may choose to limit the number of categories under which they can come here, including the broad term people to people exchanges, all put limits on the number of times they can reach the island, perhapsjust one visit per year. many feared mr trump will prevent us entities from working with the tourism or the commercial wings of the cuban military and that would have an
effect because they are basically ubiquitous to this economy and if you want any sizeable commercial presence here, you basically have to work with them. it seems increasingly likely that president trump is going to use cuba's poor human rights record is the motivation for changing the relationship. the problem with human rights however it is at the same time, mrtrump is rights however it is at the same time, mr trump is making overtures to another country with poor human rights, saudi arabia. a greater understanding has been fostered between the two nations over the past three years, particularly in the arts, culture, music and sports. in science also, given advances in immunology and cancer treatment has been taken back to the united states for further tests. now, been taken back to the united states forfurther tests. now, some of those shed projects are now sufficiently robust to withstand any
rollback by the trump administration but others may be put in jeopardy. to asia now and the fate of one of the world's biggest auto parts companies — japan's takata. it is of course at the centre of that massive recall of faulty air bag inflators — the biggest safety recall the car industry has ever seen. now, there are reports the company could be forced to file for bankruptcy as early as next week. sharanjit leyl is following the story for us in singapore. we have been hearing a company shares has been suspended. could this be the end for takata? that's right, trading has been suspended, the last they traded they were down about 0.6% and as you mentioned those media reports essentially saying the company is preparing to file for bankruptcy, you know, to put this into context, we've had about 100 million takata airbags
which can rupture with deadly force, they can spray shrapnel at passengers and they have been recalled globally, faulty airbags have been leaked to at least one dozen deaths and more than 100 injuries worldwide. these reports, some of which come from japan's became newspaper, indicates the company became newspaper, indicates the com pa ny faces became newspaper, indicates the company faces $9 billion. takata hasn't commented but sources close to the case are warning of imminent bankruptcy. the company says it will be in talks with a potential deal with us auto—parts maker key safety systems which may buy some of the assets under a plan but the company is looking bleak. thank you very much. back with more on that and all of the business stories throughout the day. a second soldier has died after he was wounded in an incident
involving a tank at an army firing range in pembrokeshire. two other soldiers were injured at castlemartin ranges on wednesday. tomos morgan reports. the flags at half—mast in pembrokeshire after the tragic events of wednesday afternoon which resulted in the deaths of two servicemen. it is still unclear exactly what happened at the bbc understands four members of the royal tank regiment were gravely injured in an incident involving the ammunition of a challenger to tank. three soldiers were taken to hospitals in south wales with one being taken hospitals in south wales with one being ta ken directly hospitals in south wales with one being taken directly to the queen elizabeth hospital in birmingham which has a dedicated wing for treating injured service personnel. yesterday afternoon, the ministry of defence announced that one soldier had died in hospital. late last night, the minister of defence, people and veterans tobias ellwood confirmed the death of a second
member of the team. castlemartin range, opened by the war office in 1938, is one of only two ranges in the uk were armed units can carry out direct fire training. the m0 de, police and health and safety executive are investigating and a temporary ban on tank live firing has been put in place. downing street says they are confident that the parliament will approve the queen ‘s speech. mrs may's yet to finalise a deal with the democratic unionists on supporting her minority government, but officials insist the talks are progressing well. sinn fein have accused the prime minister of breaching the good friday agreement by agreeing to work with the dup. coming up at 6am on breakfast — charlie stayt and naga munchetty will have all the day's news, business and sport. they'll also have more on a memorial to mark the london bridge attack two weeks ago. first responders, families and survivors of the attack will attend the service of hope at southwark cathedral later today
this is bbc news. the latest headlines: police have started a criminal investigation into london's deadly tower block fire but they say some some victims may never be identified. 17 bodies have been found and dozens of people are still missing. american politicians have been playing their traditional charity baseball game a day after a leading republican and three others were shot as they practice for the match. the annual congressional game in washington is seen as a rare and welcome moment of unity. a year—long investigation by bbc arabic and a danish newspaper has uncovered evidence that the uk defence giant bae systems has made large—scale sales across the middle east of sophisticated surveillance technology, including to many repressive governments. doctors treating 0tto warmbier, the american student released on tuesday from a north korean prison, say he has suffered extensive loss of brain tissue and is still in a coma.
now it is time for our news review. we begin with the independent and uk prime minister theresa may who has ordered a full public inquiry into the grenfell tower fire in london, saying people "deserve answers" as to why it spread so rapidly. the guardian looks at the victims of the devastating blaze saying that police have warned that some victims may never be identified. the times focusses on the refurbished material surrounding the tower reporting that the united states had already banned the type of cladding that allegedly encased the 24—storey block. and in the times' world section, usjustice department special counsel robert mueller is now investigating us president donald trump for obstruction of justice. mr trump has hit back claiming he is the victim of witch—hunt
led by "very bad people". the telegraph business section says bank of england officials have called for uk interest rates to rise in a surprise move that signals policy makers are more concerned about rising inflation even as the uk economy grows. and finally, greece said it was hopeful of securing a deal yesterday that could end months of eurozone feuding with the imf — in fact, they have secured that deal— and unlock sorely needed bailout cash for greece to avert a fresh crisis.