Browse content similar to 13/05/2014. Check below for episodes and series from the same categories and more!
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assault against two young girls. Now on BBC News, all the latest | :00:00. | :00:00. | |
business news with Asia Business Report. | :00:07. | :00:20. | |
Led by Prime Minister Tony Abbott, Australia's government gets set to | :00:21. | :00:23. | |
hand down what could be one of the nation's toughest budget in years. | :00:24. | :00:31. | |
`` budgets. Investors react as India wraps up its five weeks of voting. | :00:32. | :00:45. | |
Thank you for joining us. How big of a budget problem does Australia | :00:46. | :00:48. | |
have? We will find out today when the government details its first | :00:49. | :00:50. | |
budget since coming to power late last year. With warnings of a crisis | :00:51. | :00:56. | |
within the nation's finances, Australians are being told they will | :00:57. | :00:58. | |
all have to do the heavy lifting to balance the books. While the local | :00:59. | :01:04. | |
economy is picking up speed, locals are bracing themselves for higher | :01:05. | :01:07. | |
taxes for the rich as well as cuts to welfare and government jobs. | :01:08. | :01:14. | |
Australia managed to chart a safe path through the choppy waters of | :01:15. | :01:17. | |
the global recession, thanks to a mining boom. But the government | :01:18. | :01:21. | |
believes that this lifestyle superpower must endure budget pain | :01:22. | :01:28. | |
to guarantee future prosperity. The budget is something that does | :01:29. | :01:32. | |
need to come down, does need to have some tough measures in it. But I | :01:33. | :01:36. | |
don't think we are as poorly off as people might think we are. | :01:37. | :01:39. | |
I think it will be tough and hit a lot of people who don't want to be | :01:40. | :01:42. | |
hit hard. I think it will be brutal and will | :01:43. | :01:45. | |
hit the middle range. Tax hikes for the rich, cuts to | :01:46. | :01:49. | |
welfare and the raising of the retirement age to 70 are expected to | :01:50. | :01:52. | |
be included in its latest economic blueprint. | :01:53. | :01:56. | |
Economists believe that with a deficit of about 3% of GDP, | :01:57. | :01:58. | |
Australia's financial woes are modest compared with the US and | :01:59. | :02:07. | |
Europe. It is right to say Australia has a | :02:08. | :02:13. | |
budget problem. We have had the biggest boom in our history. We | :02:14. | :02:17. | |
should be running budget surpluses now, not deficits. There is a | :02:18. | :02:20. | |
problem there but we don't have the sort of emergency that we have had | :02:21. | :02:23. | |
over the last years. Australia does have significant | :02:24. | :02:25. | |
challenges. Although unemployment here is low by international | :02:26. | :02:28. | |
standards, at less than 6%, it is expected to rise. And a decade`long | :02:29. | :02:34. | |
mining boom is fading. But economic growth is steady and the weakening | :02:35. | :02:37. | |
currency is helping exporters. So in many ways, Australia remains the | :02:38. | :02:46. | |
lucky country. But academics warn that an overly | :02:47. | :02:51. | |
tough budget could harm the economy. In the medium to long` term, there | :02:52. | :02:55. | |
could be some issues. The resources boom is over, suggesting the good | :02:56. | :03:00. | |
times are over too. There are fundamentally good aspects in the | :03:01. | :03:03. | |
economy and it is a question of sensible stewardship rather than the | :03:04. | :03:06. | |
sort of panic attack we are seeing at the moment. | :03:07. | :03:10. | |
The sand and the surf are part of Australia's famous no`worries | :03:11. | :03:12. | |
lifestyle but the government believes this fun`loving nation is | :03:13. | :03:15. | |
living beyond its means and warns that all Australians will have to | :03:16. | :03:18. | |
share the pain to help balance the books. | :03:19. | :03:29. | |
And the budget will be released this evening in Canberra. We will bring | :03:30. | :03:33. | |
you updates and reactions on tomorrow's bulletin right here on | :03:34. | :03:41. | |
Asia Business Report. One of the key drivers of | :03:42. | :03:44. | |
Australia's economy is China's demand for its resources, with | :03:45. | :03:46. | |
exports highly sensitive to Beijing's slower growth. While the | :03:47. | :03:51. | |
mainland's economic engine has lost momentum, it is not necessarily bad | :03:52. | :03:55. | |
news. I spoke to Mark Williams from Capital Economics, who explained why | :03:56. | :03:58. | |
China slowdown is not something to worry about. `` China's. It is | :03:59. | :04:13. | |
certainly true that the economy is slowing and there has been a sense | :04:14. | :04:17. | |
of panic in some waters of the market, which is massively overdone. | :04:18. | :04:20. | |
You have to remember that the Chinese growth rate has halved since | :04:21. | :04:25. | |
2007, down from 14% to 7% in the past few years. The fact that it is | :04:26. | :04:31. | |
slowing a bit more should not be because of massive concern. If | :04:32. | :04:34. | |
anything, the slowdown we are seeing is positive. It means some of the | :04:35. | :04:39. | |
imbalances in the Chinese economy are eroding. We should not be too | :04:40. | :04:46. | |
worried about it, but where do we see the risks in this slowdown? Is | :04:47. | :04:54. | |
it bad debt? Labour disputes? The focus of concern shifts every few | :04:55. | :04:58. | |
months but the area we should really focus on is property because it has | :04:59. | :05:04. | |
massive oversupply at the moment. And also, it's big enough that if | :05:05. | :05:10. | |
something goes wrong there, it will have widespread repercussions not | :05:11. | :05:14. | |
just in China but around the world. And where is this most being felt in | :05:15. | :05:21. | |
Asia? It's the commodity producers who are most exposed to the sort of | :05:22. | :05:24. | |
slowdown we are seeing at the moment. If the property sector goes | :05:25. | :05:32. | |
down, that will hurt copper, steel and iron ore producers and so on. | :05:33. | :05:37. | |
But at the same time, if the government can work more on consumer | :05:38. | :05:41. | |
demand through spending, producers of consumer goods, of which there | :05:42. | :05:47. | |
are many in this part of the world, should stand to do well. In a few | :05:48. | :05:56. | |
hours, China will unveil its latest retail figures as well as numbers | :05:57. | :06:00. | |
for industrial production, giving us an insight into how Chinese | :06:01. | :06:04. | |
consumers are behaving as well as providing an indication of how the | :06:05. | :06:09. | |
country's manufacturers are doing so far this year. In other business | :06:10. | :06:17. | |
news, Britain's biggest satellite television company BSkyB has | :06:18. | :06:19. | |
confirmed its interest in buying its sister companies in Germany and | :06:20. | :06:23. | |
Italy. The UK broadcasting giant said the move would have the | :06:24. | :06:26. | |
potential to create a world`class multinational pay TV group. Rupert | :06:27. | :06:38. | |
Murdoch owns almost 40% of BSkyB. Several former Barclays executives | :06:39. | :06:44. | |
will be questioned by fraud investigators over a deal with | :06:45. | :06:48. | |
Qatari investors in 2008. They include the former chief executive, | :06:49. | :06:55. | |
Robert Diamond. The Royal Bank of Scotland has announced plans for a | :06:56. | :06:58. | |
public share sale later this year of part of its US affiliate, Citizens | :06:59. | :07:06. | |
Bank. It is expected to raise over 100 million US dollars. After buying | :07:07. | :07:13. | |
citizens bank in 1988, RBS turned it into one of the biggest regional | :07:14. | :07:17. | |
banks in the US. But since being bailed out by the UK government in | :07:18. | :07:23. | |
2008, RBS has been under pressure to sell some of its foreign buildings. | :07:24. | :07:29. | |
Shares in Sharp have risen by more than 4% in Tokyo trading after the | :07:30. | :07:32. | |
firm reported its first annual profit in several years, following a | :07:33. | :07:39. | |
huge restructuring move. Japan's electronics giant reported a net | :07:40. | :07:42. | |
income of $140 million for the 12 months to March, more than double | :07:43. | :07:45. | |
its own forecast. Sharp is the largest maker of LCD screens, which | :07:46. | :07:47. | |
are used in televisions and smartphones. The Indian stock market | :07:48. | :07:55. | |
is about to open, giving investors a chance to react to the early exit | :07:56. | :07:58. | |
polls released last night after the country concluded voting in its | :07:59. | :08:04. | |
five`week long election process. Experts are predicting the BJP under | :08:05. | :08:12. | |
the leadership of Narendra Modi, will form the next government. This | :08:13. | :08:20. | |
is the Bombay stock exchange, located in the heart of India's | :08:21. | :08:26. | |
financial capital. It is perhaps the best indicator as to how investors | :08:27. | :08:30. | |
are feeling, and in the past few months, the only way has been up. | :08:31. | :08:36. | |
Time after time, the market has seen new record highs. Foreign investors | :08:37. | :08:41. | |
have put more than $5 billion into Indian companies in the last five | :08:42. | :08:45. | |
months and it is a frenzied driven by growing opinion that India is set | :08:46. | :08:49. | |
for a change in government. The polls have placed the coalition | :08:50. | :08:55. | |
headed by the BJP as the frontrunner to the next government. The people, | :08:56. | :09:06. | |
the markets, what a government led by Narendra Modi. They also vote | :09:07. | :09:10. | |
that he can do it without the support of his coalition partners | :09:11. | :09:15. | |
and can do it alone, with a clean sweep. That would lead to a great | :09:16. | :09:20. | |
deal of stability as far as policy is concerned. They won't have to | :09:21. | :09:26. | |
dance to the tune of coalition partners. Many are expecting sharp | :09:27. | :09:32. | |
rises when trading against on Tuesday, but some are arguing | :09:33. | :09:38. | |
caution. The opinion polls have been absolutely wrong during the previous | :09:39. | :09:41. | |
two elections, and that has left many investors worried, fearing that | :09:42. | :09:47. | |
the stock markets could fall dramatically if the final result due | :09:48. | :09:52. | |
on Friday turned out to be different from what the polls have been | :09:53. | :09:54. | |
predicting. But whatever happens today, the long`term mood of | :09:55. | :10:00. | |
investors both from home and abroad will be determined not by what | :10:01. | :10:05. | |
people are predict it will happen but by who takes power when the | :10:06. | :10:13. | |
results are in. Now, taking a look at the stock markets at the moment. | :10:14. | :10:19. | |
They are in positive territory after gains in the US technology and | :10:20. | :10:29. | |
biotechnology sector. Thank you for investing your time with us on Asia | :10:30. | :10:41. | |
Business Report. Goodbye. This is BBC News. The headlines: The United | :10:42. | :10:45. | |
States has revealed it is flying manned surveillance missions over | :10:46. | :10:47. | |
Nigeria to help | :10:48. | :10:48. |