tv Business Briefing BBC News March 12, 2018 5:30am-5:46am GMT
this is business briefing. i'm sally bundock. the world's biggest stock market listing looks set to be delayed as advisers struggle to achieve a $2 trillion valuation for saudi aramco. as the european union considers whether to go to the world trade organisation over us tariffs on steel and aluminium imports, we ask what's next for international trade? a strong start for the financial markets of the world this week. a recordbreaker for markets of the world this week. a recordbreakerfor some markets of the world this week. a recordbrea ker for some markets markets of the world this week. a recordbreaker for some markets on wall street on friday. let's get cracking. it's been called the world's biggest stock market listing, but it's being reported
that the long—awaited ipo of saudi arabia's massive oil company, aramco, could be delayed until 2019 at the earliest, after it failed to get the desired valuation. let's take a look at why it's such a big deal. it had been expected that aramco would be valued at up to $2 trillion us. we don't know its current valuation yet, but the ipo itself would only sell off around 5% of saudi aramco, bringing in billions of dollars. it's the world's biggest oil company, producing roughly one out of every eight barrels of oil in the world. let's go to our asia business hub where rico hizon is following the story. all stock markets around the world had been hoping to get this ipo. there's still a lot at stake here. rico hizon is following it. it is nice to see you. all of the big stock markets wanted. hong kong is a pa rt stock markets wanted. hong kong is a part of that race. it is interesting it has been delayed. that is right. not only hong kong, york, london. ——
new york. saudi officials, apart from the valuation, they have been split on whether to list it overseas. some said london had a good chance of securing the listing. other officials have shown ambitions to list in new york. they hope us officials will make regulatory concessions for a deal to materialise in the big apple. others have said the royal court is trying to make a solution with asia. at least in hong kong. they could play a major role in the investment. if they all cannot agree, a private sale to strategic investors has been another option under consideration. as you mentioned, saudi arabia wants to sell 5% of the world's largest oil producing company. this is part
ofa oil producing company. this is part of a programme driven by the crown prince, mohamed bin salman. at the moment, there is a lot of indecision from riyadh, but sadly, if and when aramco lists on any of these foreign exchanges, just imagine the windfall of those who will underwrite this historical public offering. thank you. the plot thickens. we will have more on this story in the news briefing coming up in five minutes. president donald trump has renewed his demand that the european union halts its trade barriers to us products in order to spare his allies new steel and aluminium tariffs. over the weekend, eu negotiators and the us trade representative held talks in brussels in an effort to defuse a row that many fear could turn into a trade war. the trump administration says the tariffs are necessary because the quantity of steel and aluminium in the global market is threatening to impair the "national security" of the us. but america has made legally binding
trade commitments as part world trade organisation rules, and the wto could end up challenging the tariffs. however, the wto also offers a "national security exception," located in article 21 of the general agreement on tariffs and trade, which allows members to impose trade restrictions on certain products for the purposes of national security. the wto has one of the most active international dispute settlement mechanisms in the world. since its launch in 1995, over 500 disputes have been brought to the wto and over 350 rulings have been issued. let's get more on this story arun pillai—essex
is a senior north america analyst at consultants, verisk maplecroft. it is good to see you. you have been watching this very closely, i am sure. discussions, as we mentioned, over the weekend. how do you feel we will move forward in this scenario. donald trump looks determined at this point. absolutely. the eu trade commissioner and japanese cou nterpa rts commissioner and japanese counterparts were talking over the weekend. what has come out of it is not clear. the us has invited countries to negotiate for exemptions to tariffs. but what would constitute an appropriate mechanism to deliver that exemption has not been adjudicated yet at all. asa has not been adjudicated yet at all. as a result, in the next week, the eu,japan, as a result, in the next week, the eu, japan, south korea, other major
trading partners, they will seek more clarity. it is quite hard to know what the world trade organisation may decide in the future. that is an extremely long winded process. it could take years. let this is the real existential threat to the wto, the way in which the administration has justified the ta riffs the administration has justified the tariffs through the use of national security. it is entering uncharted waters. this section gives the presidency the power to impose trade barriers based on national security. it has not been used by the wto since the formation of the wto. if they... is the eu and japan and other countries took into the dispute settling mechanisms within the wto, what with the ruling sad? of the us ignore the ruling? —— what
would the us ruling say? these are serious issues. it puts the spotlight on the wto itself. how it operates, and the processes we all tried to get to with that, you know, that international body overseeing trade. many have argued the wto is not necessarily doing its job as we might like. one of the pillars of the deputy oh is equal treatment of all members. the fact the us is inviting individual countries to negotiate defeats the purpose of the wto. this ad hoc process is a threat to thejurisdiction of wto. this ad hoc process is a threat to the jurisdiction of the wto as a body. we shall keep watching. thank you forjoining us from the middle of the night where you are. over the weekend, some of india's biggest airlines announced major expansion plans.
they're all keen to meet growing demand in the indian market, which is the fastest growing domestic aviation sector in the world. but despite the bright prospects, airlines face one major challenge. we travelled to an air show in hyderabad to find out more. india's aviation industry is flying high. last year, airlines flew nearly 120 million domestic passengers between indian cities, 18% more than the previous year and more than any other country in the world. 25, 26% of our fliers are first timers fliers ever so the market is absolutelyexploding. we plan to get to 20 aircraft by october, november this year and in the next 3— to 5—year horizon, we plan to be india's second largest low—cost carrier. which roughly means we get to about 60, 65 aircraft. by 2025, india is expected to overtake the uk to become the third—largest air passenger market after china and the united states but there is one major roadblock to the rapid growth.
the biggest airports in mumbai and delhi are struggling to cope with the growing traffic and while the government is trying to build new airports and expand existing ones, that's taking time. first, of course, is land. it's very difficult in today's day and age in crowded urban areas to build large—scale airports and to expand those airports so we need to find land close to major urban centres where can build aiports. and that's a very difficult challenge for india or any other country in the world. due to land acquisition problems, the construction of mumbai's second airport at this sit got delayed for nearly a decade. and at the country's premier aviation event, the organisation was on display. now, every two years at the hyderabad air show, this runway would normally be packed with the latest international commercial aircraft models but this year, there are only private jets
and small aircraft with a maximum capacity of 20 seats. airlines say they weren't informed in advance which is why they couldn't fly in their aircraft for this show. airlines have put it down to bad organisation. but it hasn't stopped them from planning ahead. but for the country to scale new heights, upgrading infrastructure quickly will be essential. we have a lot more business for you in the news briefing. i will see you ina in the news briefing. i will see you in a moment. almost two thirds of doctors in some parts of the uk say they feel
patient safety has deteriorated over the past year, according to a new report. the royal college of physicians has found that growing pressures on nhs staff have led to some concerns about patient care. our health correspondent, adina campbell, reports. with the nhs coming out of one of the toughest winters on record, a new report by the royal college of physicians claims most areas of care have gotte n physicians claims most areas of care have gotten worse over the last months. more than 1500 doctors in england, wales, and northern ireland replied to the same questions they we re replied to the same questions they were asked during a similar period a year ago. 64% said they felt patient ca re year ago. 64% said they felt patient care had deteriorated. 10% higher than last year. 92% said they had experienced staff shortages, up again by almost 10%. and 85% said they had experienced a rising demand
for their service, 7% higher than 12 months ago. doctors crying on their way home, distressed calls to older patients because of substandard care 01’ patients because of substandard care or delays in social care, they were some of the anonymous stories reported to the royal college of physicians. the government says it is absolutely committed to making the nhs the safest health—care system in the world. nearly £3 billion of extra funding, allocated towards it over the next two years. but some doctors say they often feel they are having to do more for less. adina campbell, bbc news. there will be more on that story at 6am, and that is breakfast with louise and dan. they will have all the day's news, business and sport, including a special tribute to much loved comedian sir ken dodd. that is coming up at 6am. this is the briefing from bbc news.
the latest headlines: right—wing parties opposed to colombia's peace deal with left—wing rebels have won most votes in the country's congressional elections. in its first test as a political party, the farc took only a small fraction of the votes cast. the bbc is making an unprecedented appeal to the united nations human rights council over the abuse of its staff and their families by the iranian government. the veteran british entertainer sir ken dodd has died at the age of 90. his stage debut was in 1954 and he continued to perform until last year. the world's biggest stock market listing looks set to be delayed as advisers struggle to achieve a $2 trillion valuation for the saudi oil giant aramco. on the bbc website, it is
interesting, a lot of quotes from elon musk, the boss, of course, of tesla and spacex. he has been speaking at an event called south by southwest. we are in there. he has been talking about many things, not least the delay of the mass market tesla car, and his mission to mars, saying we'll all be drinking in a mars bar before we know it. the papers. the times. it is covering the ongoing investigation into the poisoning of a russian spy here in the uk. its lead story says theresa may's about to publically blame russia for the attack here. the front of the ft now, and that delay to aramco's floatation.
the paper reckons london is still the best bet to list the company when its ready. arab news looks at the bbc persian story and the corporation taking the unprecedented move of asking the un to help protect its staff from what it says is persecution by iranian authorities. die welt is among many german outlets covering donald trump's threats to impose tariffs on eu cars, a move jittering the country's big auto making industry. to the tabloid newspaper, the sun, here in the uk and its headline "it's all scone wrong!" does jam or cream go on first? we'll explain how an advert here's caused a outcry. and finally, another uk newspaper now and the liverpool echo who's given its website front page over to the city's late