tv Business Briefing BBC News June 26, 2018 5:30am-5:46am BST
this is the business briefing. i'm samantha simmonds. cleared for take—off. the uk's parliament vote in favour of an expansion of london's main airport, heathrow. business groups welcome the decision, but environmentalists are up in arms. india hosts a meeting of the china—led asian infrastructure investment bank. we'll find out what's on the agenda for china's version of the world bank. and on the markets: fears of a ballooning global trade war have sent asian stocks down, following steep falls on wall street, amid reports that washington was readying for a new phase in its economic confrontation with china. a major expansion at the uk's busiest airport has been given the go—ahead, with a third runway at london heathrow. the proposal passed by 415 votes to 119 —
that's a majority of 296. but there are doubts about the airport's ability to raise the money, with fears that passengers and taxpayers might end up footing part of the bill. heathrow has lagged behind its global rivals. frankfurt is the number one airport for global hub connectivity, amsterdam is second, followed by dallas—fort worth. middle east and asian airports are also catching up fast. heathrow is owned by a group led by family—controlled spanish construction giant, ferrovial, and includes qatar investment authority, canadia's sovereign fund, cdpq, and gic of singapore. but the burning question now is who will pay for the third runway? the estimated cost is $18.6 billion. but that bill could only be the beginning, as billions more are needed to upgrade train and road links around the highly—congested airport. and there are doubts about heathrow‘s ability to raise the cash, given its fragile finances. heathrow airport holdings' 2017 accounts show borrowings stand at over $17.7 billion,
while its equity was just $932 million. with me now is simon calder, travel editor at the independent. good morning, welcome to you. so it has been 30 years in the making this decision. brian elliott has gone through parliament. what happens now? it will be going in first thing this morning and indeed, two senior politicians laying down in front of those bulldozers, they have the constituencies which actually adjacent to where the runway will be built. nothing is going to happen for several years and that is because although mps voted very heavily in favour of the third runway, nobody quite knows what it is. there is no master plan, there is. there is no master plan, there is no decision, as you say, about who is going to build the road, railways, or at least pay for them,
and there is certainly no decision about how the costs are going to be calculated. but the environmental issues are what is at the top of everybody‘s mind at the moment. as $0011 everybody‘s mind at the moment. as 50011 as everybody‘s mind at the moment. as soon as the boat was announced, a number of local authorities said they are going to issue an immediate judicial review because they do not believe that the plans are compatible with what the government's targets are for noise and pollution. and on top of that, of course, you have a proponent of an alternative scheme, was also having a review. add to that, it the extra carbon emissions that an extra ru nway extra carbon emissions that an extra runway will generate and lawyers are going to do quite well over the next year or two. they are looking at increasing flights by 260,000 a year. 5396, i calculate. and they have got to meet eu pollution target. yes, it is going to quite a
difficult one. and what we heard from the transport secretary chris grayling was quite a lot of blue sky thinking, the technology will come along, will be electric cars helping with the problem of emissions vehicles, which is a very significant issue when you're building any new big airport like this. maybe it could actually be electric aircraft. the whole issue is surrounded, as you suggest, by quite a lot vagueness and only now i guess will we start to work out how much it is going to cost, where the money is going to come from, and what the effects will be. talking about the money, the owners of the airport have invited people to kind of bid to build parts of it. they have come up with this figure that it is going to cost £14 billion, but we just it is going to cost £14 billion, but wejust do not it is going to cost £14 billion, but we just do not know. we just do not know and in fact, a leading businessmen and a gentleman who owns quite a lot of the real estate in
the area says the plans you have a way to expensive, i can actually show you how to save billions of pounds on the cost. by the way, why building it, let's have a bit of competition. let's have one terminal at heathrow competing with another because that way, the traveller will get the absolute best value. we will be speaking to the boss of heathrow in around about an hour's time. thank you for coming in and giving your analysis. the asian infrastructure investment bank, which has been dubbed china's version of the world bank is holding its third annual meeting in mumbai. spurned by the us and japan, it will include representatives from the bank's 86 members, including india's prime minister narendra modi. india's commitment to the aiib is huge. for instance, do you know which country is the largest shareholder of the aiib after china? it's india. this and do you know who are the biggest recipients of loans from aiib? —— and do you know who are the biggest recipients of loans from aiib? is again, it's india receiving us $4.4 billion in investments to date. this may be surprising to most,
when india has in the past balked at china's 0ne belt, 0ne road investments. what are we expecting from the meeting? well, a few moments are now, the indian prime minister will be addressing the gathering and it isa be addressing the gathering and it is a huge task for him because he is seeking an additional $2 billion of funding, and while india has the second—largest shareholding in the asian infrastructure investment bank, there are political tensions that are underlying this summer because india, as he rightly pointed out, has not endorsed the one belt, 0ne road initiative of china to link asia, africa and europe trade routes. so many here have the apprehension that china may not grant the investment needed india. narendra modi's address is expected to send out a clear message this bank is not belong to a single country and there is room for all
the asian countries to grow together, seek funding together. india, on the other hand, needs this funding because it needs to build roadways, waterways to connect its cities and rural areas, and narendra modi will also be meeting businessmen here for private investments. now let's brief you on some other business stories. president trump has criticised the american motorcycle maker harley—davidson for its decision to move some of its production outside the united states. the company says making bikes for the european market would gradually be transferred to other countries to avoid sharply increased tariffs. mr trump tweeted that he was surprised that harley—davidson — of all companies — was the first to "wave the white flag". but over half of the american public appears to be happy about president trump's economic performance. for the first time since he took office, the cnbc all—america economic survey showed that his economic approval rating surged six points to 51%. later today, uber will hear if a bid to overturn a ruling stripping it
of its licence to operate in london has succeeded. london is uber‘s biggest european market. the company says the license should be reinstated as it has changed its corporate culture and practices. now let's take you back to india, because a bank that started in the red light district of mumbai has been forced to close down due to a lack of funding. it was an essential part of empowering sex workers financially, so its closure has left almost 5000 women without any other banking options. the bbc spoke to some of those sex workers. that is it for the business briefing this hour. but before we go, here are the markets — they are down. fears of a ballooning global trade war sending asian stocks sharply lower. the japanese market is now at a fraction, but the dowjones was down significantly. i would fraction, but the dowjones was down significantly. iwould back fraction, but the dowjones was down significantly. i would back injust a moment with the news briefing, stay with us. —— i will be back. prince william will visit israel
today. later, he will lay a wreath at yad vashem, the country's holocaust memorial centre. later he will meet israel's prime minister and the country's president, and tomorrow he's due to meet the palestinian president. 0ur royal correspondent nicholas witchell has this report. first israel, where he arrived late in the evening and secondly to the palestinian territories. as a loyal, william is distanced from middle
eastern politics but when it comes to israel and palestinians, just about any action by visiting vip can be seen to have political connotation. so for william, this is a challenge. it is a visit which officials have entrusted to win because he has the procedure being future king. he has experience now of foreign visit and it is an experience now the which is well suited, given his emphasis on young people and the future. his first duty though will be to look to the past. he will visit yad vashem, israel's memorial to those killed in the holocaust. william is said to have prepared carefully for the visit. it began injordan, where even a sightseeing visit to a ruined roman city had a serious edge. he met a roman city had a serious edge. he meta group roman city had a serious edge. he met a group of refugee children there. now, in his immersion in the challenges of middle east will intensify. we will have more on that
throughout the day. coming up at six o'clock on breakfast — charlie stayt and louise minchin will have all the day's news, business and sport, including more reaction to the vote in favour of a third runway at heathrow airport. welcome back. this is the briefing from bbc news. the latest headlines: the pentagon has confirmed that two military bases in texas will be used as temporary camps to house migrants. it's not known if families will be allowed to stay at the camps together. president trump has criticised the motorcycle maker harley—davidson for deciding to move some production outside the us. he said he was surprised the firm was the first to "wave the white flag". after portugal and spain booked their place in the next round of the world cup, denmark and france hope to follow suit. in the british government has won a key vote over the expansion of heathrow, paving the way for a third ru nway heathrow, paving the way for a third runway at the airport.
now it is time to look at the headlines from around the world. we begin with the independent, which leads with plans to build a third runway at one of the world's busiest airports, london heathrow. it's a contentious expansion plan, there's environmental and noise concerns, but many papers are leading with the absence of foreign secretary boris johnson during the vote. in the washington post, tensions are flaring between republicans and democrats over immigration and the separation of migrant families at the us—mexico border. 0n the business pages of the daily telegraph, motorcycle maker harley—davidson says it'll move some of its production out of the us to dodge tariffs imposed by the eu. donald trump says he's surprised by the decision. in the ft, and staying with those trade wars, technology shares have lost ground. and comes amid efforts by the us to block chinese investments. us treasury secretary steve mnuchin confirmed that the tariffs will not be applied to just china, but to all countries that are trying to steal us technology. and finally in the huffington post, a study by the british royal college of physicians says smokers should be allowed to smoke electronic
cigarettes at nhs hospitals in a bid to persuade people to kick the habit. so let's begin. with me is nina trentmann from the wall streetjournal. welcome back. let's have a look at the headline in the independent. porridgejohnson said he would never approve his vote. but he didn't have two because he was sent out of the country, screw about, disappearing, dingy? —— boris. we found out that he was in afghanistan. convenient that you sometimes have big trips without much notice. this is based a lot of criticism, avoiding the vote by going to get a son.