26/09/2016 Asia Business Report


26/09/2016

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have urged members not to abandon the party and stay and fight

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Hilary Benn told activists they should "rise above the most

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vile abuse" being thrown at them by other members of the party.

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Now on BBC News all the latest business

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The greatest threat to the global economy. Find out why one of the

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world's best economist is really worried about China. And how India's

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space programme is making money shuttling foreign satellites out of

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this world at bargain prices. Good morning, Asia. Hello, world. I'm

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Sharanjit Leyl. Welcome to another edition of Asia Business Report.

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Thank you for joining us. Former chief economist of the International

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Monetary Fund has told the BBC he believes China's economy is slowing

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down much more than official figures showed. He is one of the world's

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most respected economists speaking to us. He said the possibility of a

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calamitous heartland in in China could be the greatest risk. -- hard

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landing. It has been picking up, but China has been really important to

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the world economy. It is going through a big political revolution.

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There is no doubt about that. It is slowing down more than the figures

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show, I feel. If you want to look at a party in the world with a debt

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problem, look at China. These things don't go on forever. The state owns

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everything. China is different. They can control it only to a point. I

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definitely worry about a hard landing in China. We are having a

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pretty hard landing already is. I really worry about China being taken

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for granted. That whatever Europe and Japan are doing, at least China

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is moving along. There is no substitute for them. India may come

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along some day and do better. But it is falling so far behind in size it

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will not be enough. That is the area in the world I worry most about.

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What could mitigate this risk of China's hard landing? That is a

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tough question. Ideally, you would like to regenerate growth and be

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more on your feet when this happens so that when China starts slowing

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down Europe is doing better, the US is already, I think doing better,

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maybe some emerging markets are doing better. You would like the

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rest of the world not to be dependent on China so much. By the

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IMF has marked down its forecast of global growth nine years in a row.

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The rumour is they are about to do it again in this forecast. In the

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early stage, it was the advanced countries. But for some time now it

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has been China. There are limits to what you can do. Is a country that

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big is slowing down, and it can slow down a light, there are limits. --

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if. He was talking about the rest of the global economy. You can find out

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more of his views on our blog. Goldman Sachs is reportedly cutting

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one third of its 300 investment banking jobs in Asia outside Japan.

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That is in response to a slowdown in activity in the region. They told

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Reuters a majority of the cuts will take place in Hong Kong, Singapore,

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and China. It is likely to affect staff in the mergers and

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acquisitions department. A Singapore -based firm has acquired a stake in

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Rolling Stone, the magazine known as the voice of music and popular

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culture. They aim to expand the business in new markets. The

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Singapore firm has a portfolio of companies including retail

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industries in the music industry. They hope that contributes to the

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growth of Rolling Stone. OPEC members are going to meet on the

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sidelines of the international and the forum starting today, Monday, in

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Algeria. They have a lot to discuss. Oil prices. They have been all over

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the place since last year. Prices were rock bottom at under $30 a

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barrel in January, but his 16. They rose to $60. They have been

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fluctuating from 40 to 50 ever since. The low prices are caused by

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a glut in supply expected to exist until at least the end of next year

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and even into. In April, these members failed to agree on capping

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production. I asked what they are expecting from the meeting. There is

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a persistent oversupply that needs to be taken care of. So while

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earlier this year we saw attempts by OPEC to perhaps introduce a freight

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scheme that wasn't successful, it has grown over the past months. That

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will balance oil ministers and what they were talking about earlier this

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year, it hasn't materialised. In fact, now the expectation is that it

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will continue, not only because of non- OPEC production, which is now

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declining, but because different OPEC producers are competing for

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market share, playing against them in terms of whatever strategy they

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may have two produce that. -- reduce that. Be spark was caused by a boom

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in US shale. The OPEC leader in Saudi Arabia responded by increasing

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production rather than cutting it. How long will this light last? If

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you look at Saudi policies specifically this is the right time

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as the Iraqi representative to OPEC said early last week. This is the

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right time for OPEC to take some action because it allows Saudi

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Arabia to reduce from the peak output they have now, 10.7 million

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barrels a day, anywhere this time of year because there are owned a man

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falls because of the consumption for air-conditioning. -- there own

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demand We also have Iran back to pre- sanction level production. This

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might be a good way for the Saudis to prevent Iraq from gaining market

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share because they have increased production at a much faster rate

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than expected when the sanctions were lifted earlier this year.

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Speaking to me earlier. SpaceX -- space exploration is expensive and

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less you are in India. They launch satellites for a fraction of the

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cost other countries spend. They have also found a way of making

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money by allowing foreign satellites to piggyback its launch vehicles. It

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is set to send five foreign satellites into space today. We have

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more from Bangalore. Four, three, two, one. Canvas rocket become a

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moneymaking machine for India? The blast off in June was the vehicle's

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35th successful launch. It had on board 20 satellites, the most in a

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single go for the Indian space agency. 17 of them were foreign. And

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India was being paid to carry them along. We have the national

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requirement. They are of communication and navigation. We

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have some access capacity. What we have been looking for is how to make

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it more cost-effective for RBS own activities. -- excess capacity. So

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we send it along with our satellites. This is the model of the

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kind of launchers they have used to send satellites into space. They are

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on average doing one a month. It is expensive to be each time a vehicle

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has to be built from scratch. This country is often riverside for

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spending money on a space programme with high levels of poverty. --

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criticised. But they say they have strong returns from mapping and

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weather forecasting but also making money from other countries. India

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has so far launched 74 foreign satellites and earn more than $120

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million from it. Vehicles like this one are being put together at a

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frantic speed now as India plans to have 12 launchers every year, a pace

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that has more than doubled since 2015. This woman runs a company that

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brokers deals between the India space agency and foreign companies

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that wants satellites launched. The need for launchers is growing

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exponentially primarily because we are now seeing new companies which

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are planning to launch entire commercial constellations of

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satellites. Not wine - five, but anywhere from 24- 120 satellites per

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consolation. -- consolation. They also have request from private

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companies as well. So far they have only carried small and light ones.

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Launching heavier ones is where the big money is. BBC News, Bangalore.

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In other news, messaging firm Snapchat has announced its first

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gadget SunGlasses with its first camera. They have gained an

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old-fashioned name, calling them Spectacles, recording dirty seconds

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of video at a time and going on sale later this year. They are renaming

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themselves Snap Inc, outlining their desire to go beyond the messaging

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apps. The markets. They are all down in Asia. The Nikkei is down 0.6.

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That is due to the stronger currency, the yen, taking a toll on

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exporters. Australia's economy is taking a hit from the strong close

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on Friday. That is it for Asia Business Report. Thank you for

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watching. You are watching BBC News. The headlines. Britain and France

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have accused Russia of committing war crimes in Syria. The UN says

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conditions in Aleppo have

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