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tv   World Business Report  BBC News  September 26, 2017 5:30am-5:46am BST

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this is bbc world news, the headlines: the white house has condemned north korea's claim it has the right to shoot down us bombers even outside north korean airspace and it said the suggestion america had declared war on north korea as absurd. the german chancellor angela merkel has she will try to regain the trust of her party's former supporters who switched their votes to the anti—immigrant afd in sunday's elections. but she said it wouldn't lurch to the right. an american newspaper is reporting that at least six of president trump's advisors used private e—mail accounts to discuss white house matters since he took office. the new york times says they include mr trump's daughter ivanka. votes are still being counted in the referendum in iraqi kurdistan, with a big yes expected. kurds say it will give them a mandate to negotiate secession, but iraq's prime minister has denounced it as unconstitutional. now it's time for world business report. in the balance.
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jobs and trade are at risk as a us court prepares to rule on a plane row between america's boeing and canada's bombardier. whatsapp is blocked again in china. is it another blow to facebook‘s ambitions in the country? we'll be live in shanghai. welcome to world business report. i'm ben bland. we start with a major dispute over planes that good have big implications forjobs and trade in canada, the united states and here in the uk. later today a us trade court is due to give a preliminar decision on allegations of price dumping.
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the american giant boeing is accusing its canadian rival bombardier of illegally selling planes below cost price. the dispute centres around bombardier‘s biggest ever orderfor its c—series passenger jets. in 2016, the major us airline delta agreed to buy up to 125 aircraft in a deal worth approximately $5.6 billion. however, boeing alleges that bombardier agreed to sell the initial 75 planes to delta for almost $14 million a piece below their cost price. that's something boeing argues was made possible by illegal subsidies from governments in canada and the uk, where the c—series‘ wings are made. bombardier has rejected boeing's accusations as hypocrisy and said in a statement that boeing says it wants a level playing field, but it is not even on the field, that's because, according
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to bombardier, boeing doesn't even make a comparable aircraft. the 4,5000 jobs at risk at bombardier‘s factory in northern ireland mean the dispute is a top priority for the uk's prime minister theresa may. that plant is in an area which is very important to the democratic unionist party, whose votes prop up her government. earlier this month both mrs may and canada's justin trudeau discussed the dispute and made clear their concerns about a ruling against bombardier. i have already raised the issue with president trump in the telephone call i had with him last week, but i will raise it with him, the issue of bombarding eight, with him when i meet with him again later this week and i'll be impressing on him the significance of too the united kingdom and obviously to jobs significance of too the united kingdom and obviously tojobs in northern ireland. on the issue of boeing, it's been very clear canada
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is embarking upon a brick kiln and processed to strengthen our military and we have obviously been looking at the super hornet aircraft from boeing asa at the super hornet aircraft from boeing as a potential significant procurement of our new fighterjets. but we won't do business with a company busy trying to sue us and put our airspace workers out of business. professor george yip from the business school at imperial college university here in londonjoins me. welcome to world business report, good to see you. the invocations of this, either way, what do you make of it? this is a typical fight between multinational companies who have their value around the world. northern ireland is part of bombardier‘s value chain and governments normally subsidise multinational companies to put jobs in their countries, canada is being accused of this and the uk government gave a loan of £100
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million to bombardier in order to put theirjobs there so you see these disputes over time. with president trump having run on trade protection, this will be a big issue for him because he's all so dealing with major appliance imports from south korea, solar panels from china. this is a high profile case and the decision is going to be made bya us and the decision is going to be made by a us entity event though it's meant to be an independent court, it is still a us entity and in the end what happens will be subject to political influence from the white house. that's why prime minister may phoned him. how at risk are the jobs at bombardier if the ruling goes against it? this is a massive company that presumably can absorb this kind of shocked if there were to bea this kind of shocked if there were to be a fine or somesuch. yes. -- shock. i don't think they will be taken out of the market altogether but if they have to reprice then they will sell fewer units. it looks like they're being accused of
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something up to 15 to 20% price subsidy, which is quite a big amount. in terms of northern ireland, how much of all the jobs, 4500 in northern ireland, are devoted to the wings for this new aircraft solely. this dispute in some ways is small fry compared to the potential challenges, potential competition coming down the track for both these companies. exactly. china has had the ambition of going into the commercialjet aircraft market and in may this year had the first test flight of the c—919. this will be sold in three years time and it's a state—owned company, all the chinese airlines have placed advanced orders, it has over 700 of those, and of course there will be significant subsidies from china. it's a bit like the humans fighting in game of thrones while the white walkers are massing to the north. professor, thank you very much indeed. the instant messaging service whatsapp appears to have been totally blocked in china. while the authorities have previously restricted the service this seems to be the biggest
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clamp—down so far. the facebook owned app has struggled for market share in china and this will be seen as a blow to it's ambitions in the country. 0ur correspondent robin brant is in shanghai. what is behind the latest blocking? let's give you an update on where we are at the moment. i've been on whatsapp this morning. restrictions appear to be intermittent. i could send texts to people outside china and also in china but if you want to try to send a video or a picture or even a voice message then that was a problem. for whatsapp to be fully operational unit was known as a virtual private network that seeks to circumvent china's restrictions on the internet. the long and short of it is there appears to be some restrictions on the use of whatsapp in china and that's been the case certainly for the last couple of weeks. we have some restrictions already put in place in the summer
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which prevented users sending videos and pictures and that appears to be in place at the moment. what's it about? it could be about market protection. whatsapp is a player in china but the big, dominant force in the instant messaging market is wichat, owned by huge chinese tech giant tensen. whatsapp has half a billion users across the globe but it isn't big in china. the more likely explanation is about domestic security, censorship, propaganda. we're heading up to a big political eventin we're heading up to a big political event in the middle of october. the 19th annual meeting of the communist party. —— 19th meeting of the congress of the communist party. it's about people disseminating pictures and videos on applications like whatsapp. what do we think this
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means in terms of facebook‘s ambitions in china on a bigger scale? facebook isn't available here legally without the use of that virtual private network, the softwa re virtual private network, the software that circumvents china's huge censorship restrictions. it's like google, twitter, youtube, all of those outlets are not available here legally either. mark zuckerberg and facebook are trying to come back into the market but they're not in a place where they're willing to except the censorship restrictions and they are very severe. but whatsapp is available here, quite unusually, although we have these restrictions at the moment. for facebook there is a broader gentler approach about getting back into the chinese market, it can't resist the size of the market of course, but at the moment we aren't in the place where facebook will come in and accept those huge restrictions.
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robin brant in shanghai, many thanks indeed. in other news: the brazilian government says it's revoking a controversial decree that would have opened up a vast reserve in the amazon to commercial mining. the temer administration was heavily criticised last month over the move and a court ended up suspending the measure. the reserve of more than 40 thousand square kilometres is home to indigenous tribes as well as being rich in gold and other minerals and has been protected for more than 30 years. the biggest diamond to be found in more than 100 years has finally been sold for $53m. the stone which was found in botswana two years was sold by the mining company lucara to the british diamond dealer graff‘s. it is named lesedi la rona, which means 0ur light in the tswana language, which is spoken in botswana. last year it failed to sell at an auction. 0n on that gym we end world business report. see you soon. —— gem. women from across europe whose children have been harmed
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by the epilepsy drug valproate will give evidence at an official public hearing in london today. the european medicines agency is holding a safety review of the drug to see if new warnings about taking it in pregnancy are reaching women. it estimated that 20,000 children have been harmed in the uk alone. 0ur health correspondent sophie hutchinson reports. lily this woman's son was diagnosed with severe learning difficulties when he was three years old. it was caused by the epilepsy drug valproate that she took when she was pregnant. they asked the doctors whether it was safe to take the drug while expecting and were later horrified to discover they had been wrongly reassured. devastated. upset. angry. i felt
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wrongly reassured. devastated. upset. angry. ifelti wrongly reassured. devastated. upset. angry. i felt i was let down by the health service. it's estimated tens of thousands of children across the world have been harmed after being exposed to valproate medicines in the womb. it carries a 10% risk of physical problems and a 40% risk of developmental disorders. today a safety review by the european medicines agency will look at whether new warnings on pillboxes in the uk and a range of other strengthened measures are actually reaching women of childbearing age. the uk's medicines watchdog the nhra says it supports the review and stressed it's important that women don't stop taking european medicines agency without first discussing it with their doctor. parents from across europe like these parents with children harmed by valproate will give evidence to the public hearing amid concerns babies are still being damaged by the drug. coming up at 6am on breakfast,naga munchetty and dan walker will have more of the day's news, business and sport.
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they will take a look at some of the challenges faced by families who adopt children. this is bbc news. the latest headlines: the united states has rejected north korea's claim that the us has declared war and that pyongyang now has the right to shoot down american bombers outside north korean airspace. its foreign minister was responding to a tweet from president trump suggesting the north korean leadership would not be about much longer. the german chancellor angela merkel has insisted her party will not lurch to the right but will try to win back the one million voters who deserted her for the anti—immigrant afd in sunday's elections. she said she would try to regain the trust of large numbers who felt excluded. the new york times is reporting at least six of donald trump's closest advisers have used private e—mail
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accou nts advisers have used private e—mail a ccou nts to advisers have used private e—mail accounts to discuss white house matters since he took office. they include steve banner, his son—in—law jared kushner, daughter—in—law ivanka and economic adviser, gary cohen. ballots are being counted in an independence referendum in iraqi kurdistan. it's expected to be a big vote for independence but won't trigger an immediate attempt to break away. iraq's central government, along with turkey and iran have all described independence as unacceptable. now it's time for our newspaper review. what's making headlines around the world ? we're starting on the front page of the guardian with more developments in the ongoing saga between north korea and the united states. the latest sees north korea's foreign minister accuse the us of warmongering after president donald trump threatened the country, tweeting that "they won't be around much longer!" next, staying in that part
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of the world, the japan times of course carrying news of the announcement byjapan‘s prime minister shinzo abe of a snap election — in part in response to the threat of conflict with north korea. the article focuses, however, on his plan to use revenue from a consumption tax hike to fund eduction and social security. to london, and there could be a new taxi app on the scene in the wake of transport officials banning uber. us—based ride—hailing company lyft says it's looking to expand to the uk.

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