09/04/2012 World Business Report

champion after beating it --... Now for World Business Report.

A bigger than expected jump in China's inflation rate with rising

food prices. They are young and they are

unemployed in Portugal. Could immigration be the answer for them?

Food prices have driven China's annual consumer inflation to a

stronger than expected 3.6% for March. This rise is due to bad

weather which has pushed up food prices and it also authorities

raising the price of fuel. However, producer prices fell by 0.3%.

Michael, what should we make of this slight contradiction? On the

one hand you have got the headline inflation figures going up, or the

other hand you have got producer figures going down.

I don't think there is a contradiction. I think both figures

show that the government is getting inflation under control. Last year

we were talking about a level of inflation of about 6.5%. Food

inflation was even higher. The government at that point was

seriously worried that people could get angry about the rising prices

and perhaps become more dissatisfied with the government.

It worked hard to bring prices down and that is essentially what it has

done over the last few months or so. So this particular figure from

March of 3.6% - it is well within the government's target for this

year at all 4%. One The government will be content with these figures.

You think the emphasis will be on maintaining growth rather than

stepping on inflation? Yes, I think towards the end of

last year the emphasis by Chinese officials changed slightly from

dampening down inflation to making sure the economy grows enough to

meet everybody's expectations. As we all know, there is less demand

for China's exports from North America, from Europe, that kind of

thing. The government has got to be concerned that the economy grows

enough to give people jobs and increase wages. That is what it is

doing at the moment. It is allowing more credit into the system,

allowing banks to loan more money to people to make sure that if the

economy slows doubt it doesn't slow down too quickly.

-- slows down. Unemployment in southern Europe is

prompting a flood of immigration to countries as far away as Brazil or

Angola. In Portugal, graduates are at the forefront of a 40% rise in

immigration since the start of the debt crisis. with no career ladder

to climb at home, history is repeating itself.

Portugal has long exported Labour, people willing to walk a broad for

low wages. Now because of the financial crisis it faces a new

wave of immigration. Now, a lot of people have letters after their

name. This young masters student's grandfather succeeded in Belgium.

This generation is lost, so much so that they hide achievements on

their CVs to try and get the few jobs on offer. Even if you want a

low wage just to pay your bills or to go out and meet some friends or

have extra cash, when you put on your CV things like that you have a

master's or a PhD, you were immediately rejected because they

say you are over-qualified. Some are heading for African countries

like Angola with its burgeoning industries. It is Brazil which is

perhaps the biggest destination. Many people do not expect to return.

Brazil is growing economic cliff. They need qualified people. -- are

economically. The university system is still growing, they need

qualified people to teach in their universities. Of course the

language is the same. This university professor says that

rising immigration is starting to destroy Portugal's middle class.

depends on the evolution of the crisis - where we are now. In 2-3

years if the situation gets better, most of these people, many of these

people who are leaving now they will be back and they will

contribute again took the increasing of our economy.

Meanwhile, departures continue. This cafe is closing. This work her

hopes for a fruit-picking jobs abroad. It seems like everyone

under 30 is scouring job ads for a better life overseas.

If you are looking for signs that the global economy is thriving, you

could do a lot worse than looking at luxury car sales. Porsche sales

are up 20% from last year. We spoke to the head off Porsche at the New

York Motor Show. We have a strong momentum and we're

keeping it in 2012. In March we had sales dropping by 5%. We are in the

middle of a transition between two generations. We have just started

with the 9-11 coupe. We have seen a renewed confidence in the United

States, a very strong year for car sales. A lot of people are still

worried about the rising gas prices. I can see that one very important

aspect for premium products - consumer confidence. People are

sending in more requests for information. This is a rebound. A

very solid rebound - not very quick, not very high, but solid, permanent.

I am feeling very comfortable. US market is very important for

Porsche, but China is also important. How do you view the

Chinese market currently where we have seen its frenetic pace of

growth slowed a little? The US market is still the number one in

the world. I think it will remain like that for the next 30 years,

but China is growing. Not only China, but also in Russia and

Brazil. The east of Europe is also strong. This is a good balance - 0

depending on one market or another, which used to be the case -- not

depending.... The markets are a balance across the world, that is

positive news for everybody. Belgian transport workers are

continuing to strike until they hold talks with the government

today after an inspector was killed on Saturday. Brussels public

transport supervisor was beaten to death after a call to the site of

an accident. A suspect has been arrested.

Film Federer are still talking about a hung their games which

talking $33 million -- film fans -- the hunger games.

It has topped the domestic growth of each of the Twilight movies and

all except the first and last of the Harry Potter films.

Markets are looking negative at the moment, at the Tokyo market is at