Browse content similar to 05/04/2016. Check below for episodes and series from the same categories and more!
Line | From | To | |
---|---|---|---|
He has said he has had encouraging talks with the UK government, but | :00:00. | :00:00. | |
there is still a lot to do. Now on BBC News, all the latest | :00:00. | :00:00. | |
business news live from Singapore. Interest rates are going up in the | :00:07. | :00:18. | |
US. Asia exceeds its fortune in lower rate. And trying to cool | :00:19. | :00:25. | |
china's redhot property market, but outside big cities it is a different | :00:26. | :00:33. | |
three. -- story. Welcome to Asia Business Report. America's central | :00:34. | :00:40. | |
bank has been in the spotlight lately, and investors wait for its | :00:41. | :00:47. | |
next rate hike. We will also get monetary policy decisions from | :00:48. | :00:50. | |
several central banks in Asia. We expect a hike from the Federal | :00:51. | :00:54. | |
Reserve in the US, we are seeing a wave of cuts in this region. In | :00:55. | :00:58. | |
Japan, the official cost of borrowing has been lowered to below | :00:59. | :01:04. | |
0%. We are expecting a cut in the near future if not today from both | :01:05. | :01:10. | |
Australia and India. We will hear from our correspondent in Delhi | :01:11. | :01:15. | |
shortly, but first Shane Oliver expends why he believes is tell you | :01:16. | :01:19. | |
is unlikely to cut today. It is a wait-and-see issue. For some time, | :01:20. | :01:26. | |
bankers have said there is low inflation in a stroller providing | :01:27. | :01:29. | |
scope to cut interest rates again if needed. We also have relatively | :01:30. | :01:35. | |
restrained growth in Australia and unemployment is around 6%. The | :01:36. | :01:39. | |
Australian dollar has gone up by about 12%. That rise in the dollar | :01:40. | :01:45. | |
partly owes to the Federal Reserve. They have taken a pause in raising | :01:46. | :01:49. | |
interest rates which has pushed down the value of the US dollar and | :01:50. | :01:52. | |
pushed up the value of the Australian dollar, which is a drag | :01:53. | :01:57. | |
on the Australian economy at a time when we need a contribution from | :01:58. | :02:03. | |
exports for growth. You say Australia needs this growth in net | :02:04. | :02:07. | |
exports, and it is facing several headwinds not those from China, | :02:08. | :02:10. | |
which is slowing. It is its largest trading partner. How much of this | :02:11. | :02:17. | |
can be fixed by policy measures? I guess the big dynamic in Australia | :02:18. | :02:20. | |
is the end of the mining boom. That has dubbed about 1%, and I will | :02:21. | :02:26. | |
continue next year as mining investment continues to unwind. | :02:27. | :02:31. | |
Against that, houses helped more recently. The low Australian dollar | :02:32. | :02:38. | |
helped areas like tourism, and higher education as foreign students | :02:39. | :02:43. | |
came back to Australia, and more recently, manufacturing. The low | :02:44. | :02:45. | |
Australian dollar has helped growth keep going at a time when the China | :02:46. | :02:50. | |
related boom has come to an end. That was Shane Oliver on interest | :02:51. | :02:55. | |
rates. But another central bank making a rates decision today is | :02:56. | :02:58. | |
none other than India, which I mentioned earlier. Many are | :02:59. | :03:08. | |
expecting a cut. When India's central bank meets today to decide | :03:09. | :03:11. | |
on interest rates, focus will be on inflation. It has come down for the | :03:12. | :03:16. | |
first time in six months. The last rate cut was in 2015 when the | :03:17. | :03:20. | |
governor cut interest rates by 50 basis points down to 6.75%. And if | :03:21. | :03:27. | |
another cut takes place later today, it is expected to be passed onto | :03:28. | :03:32. | |
consumers more quickly than before, echoes of a new policy by the | :03:33. | :03:36. | |
central bank. Many argued this is the best chance for the bank to | :03:37. | :03:40. | |
lower rates this year -- because of a new policy. If there is lack of | :03:41. | :03:45. | |
rain in the upcoming monsoon season, it could spike in inflation again, | :03:46. | :03:49. | |
and the country faces its first back-to-back droughts in three | :03:50. | :03:52. | |
decades, nicking life difficult for more than two thirds of the nation. | :03:53. | :03:57. | |
For once, the debating India is not will there be any interest rate cut | :03:58. | :04:03. | |
but by how much? Will the government go for a quarter percentage point | :04:04. | :04:10. | |
cut, already about 0.5% cut? India's finance minister has already | :04:11. | :04:14. | |
warned that high interest rates could make the Indian economy | :04:15. | :04:18. | |
sluggish. It seems the government is hoping India's central bank will | :04:19. | :04:22. | |
further cut policy rates to maintain growth momentum in the economy. | :04:23. | :04:29. | |
Call has been king, but recently the sector has been struggling and seems | :04:30. | :04:36. | |
to be in some sort of decline -- coal. Global prices fell by a lot | :04:37. | :04:42. | |
sliced e.g. To a global oversupply, unlike other commodities, coal | :04:43. | :04:46. | |
prices have been suffering from china's slowdown -- thanks to a | :04:47. | :04:51. | |
global oversupply. There are also plans to cut its own consumption of | :04:52. | :04:58. | |
the black stuff by 1%, or 43 million tons. Other coal producing countries | :04:59. | :05:01. | |
are also being affected. One of North America's biggest coal | :05:02. | :05:07. | |
companies filed for bankruptcy, and exporters in Australia and Indonesia | :05:08. | :05:10. | |
have also been hit. Where does the future light for coal? We can speak | :05:11. | :05:16. | |
to the chief executive of one company who gives us his view. It is | :05:17. | :05:19. | |
important to make a distinction between two types of coal. There is | :05:20. | :05:26. | |
coal that is fed into steel, fundamentally no substitute existing | :05:27. | :05:31. | |
flat. And the level of demand we safer that is a direct result of the | :05:32. | :05:36. | |
health of the global steel industry -- no substitute for that. The coal | :05:37. | :05:47. | |
that is focused on by environmental activists, if we see five or ten | :05:48. | :05:51. | |
years ago, it developed market concern in investing in coal, I | :05:52. | :05:56. | |
think we have seen a continuation of that turnout. Big US, British | :05:57. | :06:02. | |
Private Equity, public pension funds are pulling back from investments in | :06:03. | :06:08. | |
coal. There are emerging China market is dependent on it for power | :06:09. | :06:12. | |
generation. We are seeing a further export of pollution at the moment to | :06:13. | :06:16. | |
an ever tighter handful of developing market economies that are | :06:17. | :06:21. | |
still willing to rely on coal for their power. I think the hangover | :06:22. | :06:27. | |
for coal at the moment is the sustained pressure in considerable | :06:28. | :06:31. | |
part environmental capital led continues to put an overhang on the | :06:32. | :06:35. | |
demand side. Even as that supply-side comes in to check, | :06:36. | :06:41. | |
reduces itself and reduces itself further, it is consistently seeking | :06:42. | :06:45. | |
to catch up with the weakening demand side, and hence that | :06:46. | :06:50. | |
sustained overhang. In other businesses, the International | :06:51. | :06:53. | |
Monetary Fund has said china's slowdown and rising volatility in | :06:54. | :06:57. | |
emerging markets are two of the top to the glowing growing economy. | :06:58. | :07:01. | |
Global stocks plummeted on the first trading day of the New Year after a | :07:02. | :07:04. | |
major sell-off in Chinese markets. It fuelled disappointing data in the | :07:05. | :07:12. | |
world's second-largest economy. They could be more spillovers as china's | :07:13. | :07:17. | |
financial influence grows. Apple's latest attempt to enter the Indian | :07:18. | :07:20. | |
smartphone market is selling used friends has hit some obstacles. The | :07:21. | :07:24. | |
iPhone maker wants to become the first phone maker to import and sell | :07:25. | :07:29. | |
used friends in Apple but this is its second attempt to gain | :07:30. | :07:34. | |
permission to do so -- sell used phones in India. As you keep | :07:35. | :07:40. | |
hearing, china's economy is slowing, but the cost of housing continues to | :07:41. | :07:45. | |
go up and up. At least in some parts of the country. New figures show the | :07:46. | :07:49. | |
price of new homes is still increasing in some big cities like | :07:50. | :07:54. | |
Shanghai, and that is on top of the 15% growth we saw last year. But how | :07:55. | :08:00. | |
risky is the government's policy? Our correspondent has more. | :08:01. | :08:05. | |
Shanghai is still billing to meet demand, but in name middle of a city | :08:06. | :08:11. | |
of 25 million people, there is not much space left -- but in the | :08:12. | :08:16. | |
middle. That is the kind of place Howard is in a hurry to buy. He has | :08:17. | :08:20. | |
been waiting for the right people work in six months. His friend's | :08:21. | :08:25. | |
apartment has gone up in price by 60%. I go to buy is secondary | :08:26. | :08:30. | |
apartment and a lot of people are looking at that one, so people just | :08:31. | :08:35. | |
push up the price. So many people are visiting one single apartment. | :08:36. | :08:39. | |
The government has imposed new restrictions to try to cool demand. | :08:40. | :08:43. | |
Buyers will need more deposit for starters. But it is a delicate | :08:44. | :08:47. | |
balance because at the same time, the world's second-biggest economy | :08:48. | :08:53. | |
is slowing. China is a nation of savers. The government is trying to | :08:54. | :08:56. | |
change that. It wants people to spend more, Oromo. Buy a house maybe | :08:57. | :09:06. | |
and everything that goes with it -- or more. Some buyers are using | :09:07. | :09:12. | |
places like this to part finance the homebuying. It is called | :09:13. | :09:16. | |
peer-to-peer lending and has grown to be a multibillion-dollar online | :09:17. | :09:19. | |
business but it is risky. Many friends have gone under. The problem | :09:20. | :09:25. | |
is should this money be going into other sectors? Lots of investors are | :09:26. | :09:37. | |
getting barebones this way. Expect their loans. So China has cheap | :09:38. | :09:41. | |
money in concerns about bad loans. But outside the major cities, it is | :09:42. | :09:45. | |
not a shortage of houses they are worried about. It is empty houses. | :09:46. | :09:50. | |
And now out of Shanghai, there is a development nearing completion. It | :09:51. | :09:54. | |
might be a safe bet for investors, but that tower is only 40% full. In | :09:55. | :10:00. | |
smaller cities across China, it is far from rosy. Massive amounts of | :10:01. | :10:05. | |
new housing remain unsold. Nonetheless, the government says the | :10:06. | :10:08. | |
property market is in good health. It is not clear what the new | :10:09. | :10:12. | |
measures to tackle that grey market in loans will be, china's regulators | :10:13. | :10:18. | |
want to make sure these sellers have buyers, wherever they are a | :10:19. | :10:23. | |
Christian country. -- across the country. | :10:24. | :10:26. | |
A quick look at the markets. We are waiting for the Hang Seng to open. | :10:27. | :10:32. | |
And that is it for today's Asia Business Report. Thank you for | :10:33. | :10:33. | |
watching. | :10:34. | :10:37. |