Browse content similar to 08/02/2016. Check below for episodes and series from the same categories and more!
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across England for Monday a storm imaging comes in. Dover sport has | :00:00. | :00:00. | |
been closed because of extreme weather. Dover's port. | :00:00. | :00:00. | |
Now on BBC News, all the latest business news live from Singapore. | :00:00. | :00:17. | |
India's latest growth numbers look set to confirm the country is | :00:18. | :00:23. | |
growing faster than China, but does it trickled down to the real | :00:24. | :00:28. | |
economy? And it is the first day of the bin New Year. So what does the | :00:29. | :00:33. | |
Year of the Monkey mean for business -- Lunar New Year. | :00:34. | :00:40. | |
Good morning, Asia, hello, world. Glad you could join us for Asia | :00:41. | :00:46. | |
Business Report. Happy Chinese New Year. I'm Rico Hizon in Singapore. | :00:47. | :00:53. | |
Later today we will be finding out how fast India's economy grew in the | :00:54. | :00:58. | |
last three months of 2015. Most expect a continuation of the trend | :00:59. | :01:04. | |
seen in the last year, growth above 7%. A pace that would confirm India | :01:05. | :01:08. | |
is the fastest-growing large economy of 2015. But there is concern that | :01:09. | :01:14. | |
the benefits of that growth are not filtering down to the so-called real | :01:15. | :01:18. | |
economy. The car industry has traditionally been seen as a guide | :01:19. | :01:22. | |
to how things are going. We were there to test the mood at the Delhi | :01:23. | :01:24. | |
auto show. Fast cars, new launches, and a | :01:25. | :01:38. | |
hopeful industry. After years of underperformance, the expectation | :01:39. | :01:41. | |
here is that India's growing economy will finally read our business. | :01:42. | :01:48. | |
IndyCar cells grew by more than 7.5% last year, faster then any of the | :01:49. | :01:59. | |
world's, gets -- India castles. Hoping to cash in on this, have | :02:00. | :02:05. | |
already spent hundreds of hundreds of millions of dollars on factories | :02:06. | :02:10. | |
like this one. In common with other brands, this factory is used | :02:11. | :02:15. | |
primarily to make cars for export. It is also betting on more Indians | :02:16. | :02:20. | |
buying cars. For now, it only has 1.5% share of the local market but | :02:21. | :02:26. | |
is here for the long haul. The growth is outpacing the rest of the | :02:27. | :02:31. | |
world and the auto industry seems to be following that trend. While | :02:32. | :02:36. | |
people in cities are buying cars, any worried this rapid growth is | :02:37. | :02:40. | |
affecting the two thirds of India's population that we've in urban | :02:41. | :02:45. | |
areas. It is not just cars that are not being bought. Sales of | :02:46. | :02:49. | |
motorbikes and small trucks in rural India have been weak. Back-to-back | :02:50. | :02:54. | |
monsoons have left many farmers worse off, and wary of spending | :02:55. | :02:58. | |
money. That has been felt by businesses like this one, the | :02:59. | :03:05. | |
country's largest tractor maker. There was some liquidity. The ruling | :03:06. | :03:11. | |
economy right now is a sleeping giant, one of the recent sales have | :03:12. | :03:20. | |
not been searching is because there is a lot of ground still to cover. | :03:21. | :03:26. | |
Cells are a good indicator of how people are feeling about the | :03:27. | :03:31. | |
economy. Back at the car show, malefactors hope optimism about 2016 | :03:32. | :03:35. | |
will help the industry pick up speed -- manufacturers. | :03:36. | :03:39. | |
It has been over a week since Japan's decision to push the cost of | :03:40. | :03:47. | |
borrowing to negative. Their aim was to force companies to spend, but | :03:48. | :03:51. | |
economists believe it will have limited impact with business | :03:52. | :03:55. | |
investment not held back by high interest rates. As much as worries | :03:56. | :03:59. | |
about the long-term outlook. What has been the early response to | :04:00. | :04:05. | |
negative rates? Earlier I asked why we have not seen a sustained | :04:06. | :04:09. | |
depreciation despite the initiative. What we're seeing in Asia is not | :04:10. | :04:15. | |
everybody is in such good shape as India. There are big concerns, and | :04:16. | :04:21. | |
that usually means the Japanese yen is becoming a safe haven currency, | :04:22. | :04:25. | |
the dollar being awake does not help either. We have strong pressure this | :04:26. | :04:30. | |
year on the yen and the bank of Japan wanted to show we have a new | :04:31. | :04:34. | |
tour here. If this goes too far, we have a new tool and we will use it. | :04:35. | :04:41. | |
Could this be wrong timing? No, the timing is quite good. This week we | :04:42. | :04:48. | |
will have new data at showing prices double feather. | :04:49. | :04:56. | |
it also means overall pressure. This is a | :04:57. | :05:04. | |
will be used to have an impact on currency markets, and when the bank | :05:05. | :05:06. | |
of Japan is just moving beyond the current limit of -0.1% or even | :05:07. | :05:13. | |
further. But the main objective as well for implementing this negative | :05:14. | :05:16. | |
interest rate policy was to force companies to spend. When do you | :05:17. | :05:23. | |
think they will start spending? What we are seeing is that there is a | :05:24. | :05:31. | |
strong focus on the exchange rate, on exports, on companies moving | :05:32. | :05:35. | |
their business investment. But there you are focusing overseas | :05:36. | :05:39. | |
investment. The domestic economy has limited growth potential, so the | :05:40. | :05:43. | |
government is trying to help companies to invest in Asia in the | :05:44. | :05:47. | |
longer-term, and this is a target. The exchange rate is important for | :05:48. | :05:51. | |
that and they are focusing on it. Apart from this policy, other other | :05:52. | :05:58. | |
options they can still implement to jumpstart the economy? -- are there | :05:59. | :06:00. | |
other options? We will have elections this summer, and | :06:01. | :06:03. | |
policymakers are reluctant to do big problem -- electorate. This will | :06:04. | :06:17. | |
have an impact on the currency, buying even more time than the | :06:18. | :06:20. | |
government the Labour side, reforms in health | :06:21. | :06:30. | |
and agriculture, and necessary changes in the domestic | :06:31. | :06:36. | |
economy. That is basically the idea. And in other business news: The | :06:37. | :06:40. | |
foreign exchange reserves have fallen to their lowest level in more | :06:41. | :06:44. | |
than three years as Beijing defends the one. China's foreign country | :06:45. | :06:51. | |
reserve plans by about 100 billion US dollars in January -- currency | :06:52. | :06:57. | |
reserves. It has been running down its fast currency holdings, which is | :06:58. | :07:02. | |
more than 3 trillion US dollars in a bid to boost the UI's value. It is | :07:03. | :07:09. | |
the Lunar New Year, and the first day of the Year of the Monkey. It is | :07:10. | :07:15. | |
time for celebrating across Asia and an opportunity to look ahead to what | :07:16. | :07:19. | |
the next 12 months will bring. We went out on the street in Singapore | :07:20. | :07:23. | |
to see what's on in business are expecting. I feel in the year of the | :07:24. | :07:29. | |
Fire monkey, I work in tech, said there will be a trend moving towards | :07:30. | :07:33. | |
small businesses growing and social enterprise. I'm looking at the | :07:34. | :07:41. | |
industry and I wish the Year of the Monkey would bring prosperity to the | :07:42. | :07:45. | |
banking industry. I know there are challenges. In the Year of the | :07:46. | :07:50. | |
Monkey, it should be quite challenging because of what is | :07:51. | :07:56. | |
happening in the global markets. I work in performance coaching and | :07:57. | :07:59. | |
innovation and believe that in the year of the Fire monkey, innovation | :08:00. | :08:05. | |
will be continuously trending, not only in companies that outside of | :08:06. | :08:08. | |
companies. I work in hospitality. For the Year of the Monkey, the | :08:09. | :08:13. | |
economy now is not that good. I don't think people will travel that | :08:14. | :08:23. | |
much. I am from the legal industry, and there has been a lull in the | :08:24. | :08:27. | |
shipping industry right now, so I expect the Fire monkey to help us | :08:28. | :08:32. | |
pick it up. Challenging times ahead, but still upbeat and positive. But | :08:33. | :08:37. | |
what about an equity analyst who is doubling as an expert. Every year, | :08:38. | :08:45. | |
they come up with the index. It is a tongue in cheek forecast for the | :08:46. | :08:50. | |
lonely year. -- minute New Year. We can find out what this means for | :08:51. | :08:58. | |
you, the investor. In Chinese culture, we love this animal, the | :08:59. | :09:04. | |
Fire monkey, because we think the monkey has he managed to buck we | :09:05. | :09:09. | |
don't like the monkey because of its mischievous behaviours. -- but | :09:10. | :09:14. | |
sometimes we don't like. The Hang Seng index also has the | :09:15. | :09:19. | |
characteristics of the monkey. It will be a rocky ride, and we believe | :09:20. | :09:27. | |
there will be lots of ups and downs. In this year, each year, the | :09:28. | :09:35. | |
animal, the Zodiac, and each element of the five elements rotate, and | :09:36. | :09:42. | |
this year, you can see the monkey is sitting on top of sectors including | :09:43. | :09:51. | |
the auto sectors and financial. We would suggest avoiding water related | :09:52. | :09:59. | |
sectors. They often do not work well. Water related sectors include | :10:00. | :10:05. | |
transport, gaming, consumer retail, and also healthcare. Volatile times | :10:06. | :10:11. | |
ahead. Let's have a look at the markets. Many of them are closed for | :10:12. | :10:16. | |
the Lunar New Year holidays, but those open for trading are in | :10:17. | :10:22. | |
negative territory. Hong Kong, Singapore and China are closed today | :10:23. | :10:25. | |
due to the Chinese New Year holidays. Thank you for investing | :10:26. | :10:29. | |
your time with us. Happy New Year. | :10:30. | :10:34. |