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knife. Now on BBC News, all the latest business news live from | :00:00. | 3:59:59 | |
Singapore. All eyes on China. Fresh trade | :00:00. | :00:21. | |
figures show a fall in exports and imports for March. And India's | :00:22. | :00:27. | |
voters are heading to the polls in more than 14 states across the | :00:28. | :00:29. | |
country. Hello and welcome to Asia Business | :00:30. | :00:36. | |
Report. I'm Sharanjit Leyl. Starting with China. Fresh trade figures for | :00:37. | :00:43. | |
the month of March show X boards have fallen 6.6%, compared to | :00:44. | :00:49. | |
previous years. `` exports. Imports have fallen by 11%. These numbers | :00:50. | :00:54. | |
follow a fall in exports in February as well, with fresh concerns over | :00:55. | :01:01. | |
trade. Analysts believe trade will play a lesser role in the way the | :01:02. | :01:05. | |
mainland's government will manage the ongoing expansion of its | :01:06. | :01:15. | |
economy. We think this is the start of a period of adjustment for the | :01:16. | :01:19. | |
Chinese economy, where trade starts to play a smaller role in the | :01:20. | :01:23. | |
overall growth picture. This is partly by design and partly as a | :01:24. | :01:29. | |
result of the downturn in the economy in China. Trade is dependent | :01:30. | :01:34. | |
on the external picture. That picture is stable. We expect | :01:35. | :01:36. | |
external demand to be relatively intact. Overall, policymakers in | :01:37. | :01:42. | |
Beijing want to reduce the vulnerability of the economy and | :01:43. | :01:44. | |
reduce the potential for shocks that they experienced in 2008 and 2009, | :01:45. | :01:51. | |
when the financial crisis hit. You call this an adjustment by the | :01:52. | :01:54. | |
Chinese authorities. It also announced a mini stimulus of sorts | :01:55. | :02:00. | |
last week. They hope that will help lift some of the slowdown projected | :02:01. | :02:03. | |
for the economy. You see that happening? I think what the stimulus | :02:04. | :02:09. | |
really is moving some projects forward, that were scheduled for | :02:10. | :02:13. | |
later this year, to see what that does for the coming couple of | :02:14. | :02:16. | |
quarters. Towards the end of the year they may reassess things. | :02:17. | :02:21. | |
Overall, they are really not keen on bailing out a lot of the accesses. | :02:22. | :02:27. | |
They want to find a way to ease out of the previous cycle of credit and | :02:28. | :02:32. | |
growth. These kinds of projects and infrastructure transport, these are | :02:33. | :02:36. | |
relatively good ways to do that. I think there may be more to come | :02:37. | :02:40. | |
later this year, if growth continues to weaken, but we don't see this as | :02:41. | :02:45. | |
much of a stimulus, more stabilisation may be a better word | :02:46. | :02:48. | |
to use. I think they will reassess when we get to June and July. To | :02:49. | :02:57. | |
India, where Walmart is going head`to`head with its plans to build | :02:58. | :03:00. | |
another 50 wholesale stores within the next five years. That's despite | :03:01. | :03:05. | |
possible policy changes that could arise, should the new government win | :03:06. | :03:09. | |
the election. Today could mark a turning point in those elections, as | :03:10. | :03:14. | |
voters go to the polls in more than 14 states across the country. For | :03:15. | :03:19. | |
more on the retail sector and how it will impact voters, we can go to our | :03:20. | :03:24. | |
correspondent in Delhi. Good morning. Why is the retail sector so | :03:25. | :03:33. | |
controversial in these elections? It has been one of the most politically | :03:34. | :03:38. | |
controversial policies. India's retail sector was opened up to | :03:39. | :03:43. | |
foreign investment 51% in multibrand retail and 100 `` 100% in single | :03:44. | :03:49. | |
brand retail one year ago but we still haven't seen any multibrand | :03:50. | :03:54. | |
retail stores open up shop here. Walmart exists as a wholesale store | :03:55. | :03:58. | |
in India but it is surprising to many that they made an announcement | :03:59. | :04:03. | |
to open 50 more stores. No one has doubt the potential of India's $500 | :04:04. | :04:08. | |
billion retail market at what has been controversial is the political | :04:09. | :04:12. | |
opposition to this decision. Because most of India's retail sectors are | :04:13. | :04:17. | |
organised and many of those are small corner stores, who are key | :04:18. | :04:22. | |
voters of the opposition party, traditionally. So, in its | :04:23. | :04:27. | |
manifesto, the BJP has already says that if it comes into power it will | :04:28. | :04:31. | |
scrap the policy. They are pretty rigid about this. Quite surprising | :04:32. | :04:36. | |
that Walmart has decided to go ahead with the announcement. Surprising | :04:37. | :04:41. | |
and potentially very risky. What are the odds the BJP will be able to | :04:42. | :04:47. | |
follow through with this manifesto? Very strong, because this is one of | :04:48. | :04:51. | |
the key points, but they haven't budged on before. Like I said, are | :04:52. | :04:55. | |
key voters come from this constituency, small traders, small | :04:56. | :05:01. | |
shops, 90% of the retail sector in India. Even with the existing | :05:02. | :05:07. | |
policy, the state has an equal say about whether they want it or not. | :05:08. | :05:10. | |
Not just the BJP but even the latest entrant in the political scenario, | :05:11. | :05:17. | |
even that party has a policy because their voters are small traders. | :05:18. | :05:22. | |
Worst of them fear loss of jobs and they fear that big retailers will | :05:23. | :05:24. | |
come and sweet down into the retail market here. At the Congress party, | :05:25. | :05:29. | |
which brought in the legislation, the `` believes it can improve the | :05:30. | :05:34. | |
supply chain system. The food management is pretty poor in the | :05:35. | :05:38. | |
country. They feel they can generate more jobs. Thank you for that. | :05:39. | :05:45. | |
In other news making headlines, to Gotye recalling 6.4 million vehicles | :05:46. | :05:51. | |
over five separate issues. `` Toyota. Issues include problems with | :05:52. | :06:00. | |
the airbag, seat rails, with screenwriters and a glitch with the | :06:01. | :06:02. | |
engine starters. That poses a fire risk. `` screen wipers. The carmaker | :06:03. | :06:08. | |
said it wasn't aware of any injuries or crashes caused by the conditions. | :06:09. | :06:14. | |
The Bank of America will pay $783 million in fines and refunds to | :06:15. | :06:17. | |
settle accusations that it misled customers about its credit card | :06:18. | :06:22. | |
services. Some $45 million of that will be paid on penalties to US | :06:23. | :06:26. | |
regulators. The pay`out relates to the lending giant's marketing of its | :06:27. | :06:31. | |
payment and protection services between 2012 and 2010. In a study in | :06:32. | :06:41. | |
financial stability, the IMF, referred to as the lender of last | :06:42. | :06:45. | |
resort, warned the issue poses a big risks to growth prospects in | :06:46. | :06:49. | |
emerging markets. Our correspondent in Washington. She has been speaking | :06:50. | :06:55. | |
to the IMF's director of monetary and capital markets. One topic | :06:56. | :07:00. | |
discussed inside the headquarters of the IMF is Howard years of cheap | :07:01. | :07:04. | |
credit has led to a rise in corporate debt. In fact, in emerging | :07:05. | :07:12. | |
economies, its a level not seen since the financial crisis, which is | :07:13. | :07:17. | |
worrying some people here. I was told the prospect of lower interest | :07:18. | :07:20. | |
rates and slower growth could mean that some companies in emerging | :07:21. | :07:25. | |
markets will have difficulty paying back some of the money they have | :07:26. | :07:30. | |
borrowed. Bite of the corporate debt in emerging markets, a significant | :07:31. | :07:35. | |
fraction, would be at risk. `` much of the. 35% of the corporate debt in | :07:36. | :07:40. | |
many emerging markets, specifically, would be owned by | :07:41. | :07:44. | |
firms which will have difficulties in servicing their obligations. | :07:45. | :07:50. | |
Given the IMF's worries about corporate debt, I also asked what | :07:51. | :07:54. | |
lessons could be learned from the recent failure of a Chinese company | :07:55. | :08:00. | |
that defaulted on its debt. This led him to address another concern. | :08:01. | :08:07. | |
China's shadow banking system. It is very important that, given the | :08:08. | :08:10. | |
growth in the non`bank financial sector in China, the so`called | :08:11. | :08:14. | |
shadow banking system, that it is very important that these sorts of | :08:15. | :08:22. | |
small defaults can play in taking out the hazard and making investors | :08:23. | :08:27. | |
and savers feel aware of the risks which are SO shade with the high | :08:28. | :08:33. | |
returns. The IMF wants to see greater local cooperation. But as | :08:34. | :08:39. | |
ever with countries facing different challenges and at different stages | :08:40. | :08:43. | |
of development that will be easier said than done. | :08:44. | :08:51. | |
The World's Largest Busk producer in China is hoping to set a new record | :08:52. | :08:55. | |
on the Hong Kong stock exchange. `` world's largest pork producer. It | :08:56. | :09:02. | |
has hired 29 banks to work on the initial offering, which is said | :09:03. | :09:07. | |
could raise up to $6 million. I asked about the upcoming listing. | :09:08. | :09:12. | |
The listing in Hong Kong is directly related to that deal. As you | :09:13. | :09:18. | |
recall, that was a very expensive deal at the time. $4.7 billion, US, | :09:19. | :09:26. | |
paid for the company. But if you also include the amount of debt that | :09:27. | :09:29. | |
the Chinese company had to assume, the pricetag really balloons even | :09:30. | :09:32. | |
further come to more than $7 billion, US. As you can imagine, | :09:33. | :09:37. | |
that's a lot of money to be owing to creditors banks. What we understand | :09:38. | :09:42. | |
is that the main purpose of this listing is to raise money from | :09:43. | :09:47. | |
investors to pay down the debt, to improve its financial standing. | :09:48. | :09:51. | |
According to the Reuters news agency, it will be offering these | :09:52. | :10:00. | |
shares between eight dollars, Hong Kong, to $11 per share. That implies | :10:01. | :10:06. | |
a price to earnings ratio of between 15 and 20. That's a way for | :10:07. | :10:10. | |
investors to decide how expensive or cheap that share is. So, according | :10:11. | :10:15. | |
to fund managers, they are saying that this price looks fairly fed | :10:16. | :10:21. | |
because of course now this company is competing not just against | :10:22. | :10:25. | |
Chinese companies at the biggest food makers in the world. | :10:26. | :10:31. | |
That brings us to the end of this edition of Asia Business Report. | :10:32. | :10:39. | |
The main stories: Oscar Pistorius has faced a tough cross`examination | :10:40. | :10:47. | |
by the prosecution for the first time in the trial of the `` killing | :10:48. | :10:53. | |
of his girlfriend. Internet users are advised to change their | :10:54. | :10:56. | |
passwords under what has been described as a catastrophic floor | :10:57. | :11:01. | |
found in a type of security | :11:02. | :11:02. |