15/04/2016 Asia Business Report


15/04/2016

Similar Content

Browse content similar to 15/04/2016. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

Now on BBC News, all the latest business news live from Singapore.

:00:00.:00:14.

Hoping for the best but fearing the worst. We look at China's latest

:00:15.:00:22.

growth numbers which will be released soon. And we navigate the

:00:23.:00:34.

country's massive traffic problems. Good morning! It is Friday. Thank

:00:35.:00:40.

you for joining us. I am Rico Hizon. We start with China.

:00:41.:00:47.

Investors are closely watching the mainland today with the world's

:00:48.:00:52.

second-largest economy about to unveil its latest economic growth

:00:53.:00:57.

numbers. Many are speculating it will be the slowest in seven years.

:00:58.:01:05.

The growth numbers may come in soon so we will speak to someone about

:01:06.:01:10.

this. It is certainly appearing as if the data over the last few months

:01:11.:01:19.

is improving. We had trade data out earlier this week showing that

:01:20.:01:24.

exports in China, the key indicator of how they are doing, was so much

:01:25.:01:32.

better in March. Let's take a look at this graph to get a sense of

:01:33.:01:38.

their economy and how the slowdown has come about over the last few

:01:39.:01:44.

years. You can see the dip from the time of the 2009 financial crisis.

:01:45.:01:51.

It has been going downwards. Economists are expecting anywhere

:01:52.:02:05.

between 6.6 to six .8%. This is all part of the narrative. It is about

:02:06.:02:09.

the fact that China is managing this transition from an economy that has

:02:10.:02:14.

been focused on manufacturing and investment and is now trying to turn

:02:15.:02:19.

the corner and focus more on services and innovation. It is a

:02:20.:02:22.

painful transition and it will take time. That is what the numbers will

:02:23.:02:27.

show today. Very challenging in that transition. We were surprised with

:02:28.:02:34.

the IMF, that they gave a very gloomy assessment of the world

:02:35.:02:37.

economy but they upgraded China's economic growth. They did indeed, by

:02:38.:02:46.

a point of a percentage point. But beyond the numbers it is important

:02:47.:02:50.

to recognise how China is doing this. How did you go from being in

:02:51.:02:54.

the economic doldrums in the last two years to say they are turning

:02:55.:02:59.

the corner, the IMF is giving them an upgrade, it is about the same

:03:00.:03:04.

formula they are using, throwing money at the problem. More

:03:05.:03:07.

investment and more stimulus, kicking the can down the road.

:03:08.:03:13.

Credit, credit, credit. What kind of impact will this have on Asia? The

:03:14.:03:19.

IMF says that any 1% decline in GDP growth in China knocks off about .2%

:03:20.:03:25.

of growth on the GDP countries as a whole. -- G20. What happens to China

:03:26.:03:35.

matters to Asia. We buy stuff from them, we sell stuff to them, so if

:03:36.:03:39.

they do better it is Gujarat but it is a declining trend. -- it is good

:03:40.:03:51.

but. The ability of the world's wealthy to hide their money is a hot

:03:52.:04:01.

topic in Washington DC. They are trying to figure out what to do

:04:02.:04:05.

about industrial scale international tax avoidance. We spoke to The World

:04:06.:04:12.

Bank president. Transparency is the way of the future. We will not go

:04:13.:04:15.

backwards and become less transparent overtime. The notion

:04:16.:04:22.

that you can hide illicit wealth or avoid paying taxes, I hope that will

:04:23.:04:30.

be an idea that gets eroded. It is straightforward for us. When state

:04:31.:04:34.

officials take state resources away when people do not pay their or

:04:35.:04:38.

corporations do not pay them it is very bad for the poorest. -- taxes.

:04:39.:04:50.

It is even more aggressive in developing countries which is the

:04:51.:04:56.

opposite of what you want to see. 84% of loans, at least for the

:04:57.:05:03.

private sector, actually end up in offshore tax havens. What do you say

:05:04.:05:10.

to taxpayers in developed nations who are worried about where their

:05:11.:05:14.

development money ends up? When the money is given to us we audit every

:05:15.:05:19.

single project. We have an entire team that looks at corruption. Most

:05:20.:05:26.

reports come from our own staff, because they know we have to watch

:05:27.:05:31.

out for these corrupt practices. If you want to look at end organisation

:05:32.:05:37.

that follows the money perfectly look at us. -- an. Some of our

:05:38.:05:43.

finance people actually followed the account. I would say to taxpayers,

:05:44.:05:50.

you have nothing to worry about. The International Monetary Fund. They

:05:51.:05:59.

say they has been progress on tax evasion but she told the BBC's

:06:00.:06:04.

HARDtalk that more needs to be done and it has to be universal. What is

:06:05.:06:15.

called base erosion and profit shifting projects applied to

:06:16.:06:21.

corporate is in the main and I think that is an area where it needs to be

:06:22.:06:28.

made universal. -- corporates. The automatic exchange of communication

:06:29.:06:31.

between countries. The problem is everyone has to be part of it. If

:06:32.:06:38.

you have little holes in the system creative thinkers and tax

:06:39.:06:41.

optimisers, and there are plenty of those and they have great minds and

:06:42.:06:46.

imaginations... It needs global leadership. Definitely. And it needs

:06:47.:06:51.

to be totally comprehensive and it needs to include the implementation

:06:52.:06:58.

are obvious. -- arm of it. Christine Lagarde. The figures of the G-15

:06:59.:07:08.

revealed it was at a turning point. -- 2015. Total income showed its

:07:09.:07:15.

first solid gains. The boss of Sony says the landscape is indeed

:07:16.:07:22.

changing. This is without any doubt the future for the industry. Paid

:07:23.:07:27.

subscription is what is bringing value. 68 million paid subscribers

:07:28.:07:33.

around the world up from 41 million. We should see hundreds of millions

:07:34.:07:39.

in the future hopefully. But we need to increase the speed of growth.

:07:40.:07:44.

Paid subscription is the one that is generating the growth right now in

:07:45.:07:52.

terms of value for the artists and rights holders, but we are actually

:07:53.:07:58.

agnostic to it as long as the remuneration for artists is there.

:07:59.:08:04.

On Friday, the Indian capital is introducing another round of car

:08:05.:08:09.

registration. There will be a fortnight of restrictions dictating

:08:10.:08:16.

which cars can be on the road. -- we went out to meet a business designed

:08:17.:08:23.

to help people navigate the system. I am 30 years old and live in

:08:24.:08:31.

Delhi. -- 13. I thought of making a website that

:08:32.:09:03.

would help people to find a commute partner. It is common to not know

:09:04.:09:10.

your neighbours. So this website helps you find someone in the same

:09:11.:09:12.

place at the same time. I was told by a business that my car

:09:13.:09:37.

pooling website was very strong. So the public could be benefited a lot.

:09:38.:09:44.

We saw it was a brilliant idea. The name was very catchy. As a result

:09:45.:09:48.

many people registered. In the second phase we are expecting they

:09:49.:09:53.

will be many more people since the awareness has increased multifold. I

:09:54.:09:58.

see many problems in my surroundings. These small problems

:09:59.:10:06.

will only lead to a better in the if they are corrected. A brilliant

:10:07.:10:13.

teenager. A quick look at the markets. This is what is happening

:10:14.:10:18.

in the Asian markets. Next currently. -- mixed.

:10:19.:10:26.

Thank you so much for investing your time with us. I am Rico Hizon. Sport

:10:27.:10:37.

Today is up next. Have a great

:10:38.:10:39.

Download Subtitles

SRT

ASS