03/06/2013 World Business Report


03/06/2013

Similar Content

Browse content similar to 03/06/2013. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

home in the Northern territory. Those are the latest headlines from

:00:02.:00:12.
:00:12.:00:22.

BBC World News. Now for the latest Signs of a pick up for the Chinese

:00:22.:00:27.

economy, will this year be the rebound from a disappointing 2012?

:00:27.:00:32.

And the struggle for control of del goes to the final round. Wilshere

:00:32.:00:39.

holders allow the country's founder to buy the computer maker back? --

:00:39.:00:43.

will shareholders. You're with World Business Report. I'm Sally

:00:43.:00:48.

Bundock. Also, you have heard of the Silver surfer, now make way for

:00:48.:00:53.

the Salvo entrepreneur. We will explain. In a positive sign for the

:00:53.:00:57.

global economy the latest report on China shows the slowdown may have

:00:57.:01:02.

bottomed out. An official measure of manufacturing activity shows

:01:02.:01:06.

strong expansion in the month of May. Looking at the figures,

:01:06.:01:10.

starting from their early 2012. You can see that at the beginning of

:01:10.:01:14.

that year there was a sharp increase, then there was a big

:01:14.:01:20.

swift drop off. This white line represents the number 50, anything

:01:20.:01:24.

below that represents a contraction within factories. As the year

:01:24.:01:27.

progresses, and as we go to the month of May, it seems to be

:01:27.:01:31.

getting better. This is a very closely watched way of measuring

:01:32.:01:36.

the economy by economists. And there was, as you see, quite a bit

:01:36.:01:41.

of a downturn. But since then things have improved. We can speak

:01:41.:01:45.

to John Sudworth in Shanghai to get more sense from all of this. Nice

:01:45.:01:50.

to see you. Only last week we had the IMF downgrading its forecasts

:01:50.:01:57.

for China. This is better news? Are things in proving? It will

:01:57.:02:04.

certainly be welcomed. The official data is taken note of. But what's

:02:04.:02:09.

interesting is that a widely followed private survey, basically

:02:09.:02:14.

the same kind of survey Baird carried out by HSBC rather than

:02:14.:02:18.

official Chinese government statisticians, shows the opposite -

:02:18.:02:23.

- but carried out. It has found factory output is falling. The

:02:23.:02:33.
:02:33.:02:39.

index stood at 49.2, for the month It shows a contraction rather than

:02:40.:02:45.

an expansion. The HSBC survey is based more on private sector small

:02:45.:02:50.

companies rather than the big state owned companies. For that reason

:02:50.:02:54.

some people suggested could be a better barometer for picking up the

:02:54.:02:59.

subtle shifts. If the HSBC findings rather than the government findings

:02:59.:03:03.

are correct, of course it's very gloomy news. We're none the wiser

:03:03.:03:10.

as ever. But wide this this economic data so closely watched?

:03:10.:03:16.

It really does matter -- why is. The assumption now is that China is

:03:16.:03:20.

in the process of a major shift. Last year Crowe was 7.8%, the

:03:20.:03:26.

lowest in more than a decade -- growth. Most people are agreed that

:03:26.:03:30.

the year's top bumper at double- digit growth argon. Policy makers

:03:30.:03:37.

are talking about 7% a year -- the years of -- are gone. It really

:03:37.:03:42.

matters for China. It is probably about the minimum level it needs to

:03:42.:03:45.

keep the economy motoring along, to provide the jobs and the increase

:03:45.:03:50.

and wealth for the countryside. Tens of millions of people still

:03:50.:03:54.

leaving the countryside for the cities. If it goes below 7% it

:03:54.:04:00.

could present China with some real political problems. It is a

:04:00.:04:05.

question then on of legitimacy. It really doesn't matter. No-one is

:04:05.:04:09.

suggesting that as a result of one HSBC surveyed it's all going to go

:04:09.:04:15.

crashing down, but it shows that this economy is facing problems as

:04:15.:04:22.

it enters a new reality. Let's move on to what's happening in the

:04:22.:04:27.

corporate world in the US. Rival factions are trying to gain control

:04:27.:04:30.

of the computer maker Dell Computers, and the struggle will

:04:30.:04:34.

enter a new phase over the next few weeks. Michael Dell wants to buy

:04:34.:04:39.

back the company he founded as a student in 1984. A number of

:04:39.:04:43.

shareholders who oppose his offer say it undervalues the company.

:04:43.:04:47.

Both sides can now lobby shareholders directly, and are

:04:47.:04:57.
:04:57.:04:57.

likely to do so until the vote over Michael Dell is one step closer to

:04:57.:05:01.

transforming his ailing computer making business into a full service

:05:01.:05:06.

IT company, or even possibly something more. Dell Computers's

:05:06.:05:11.

board of directors say the takeover bid by the founder and CEO is the

:05:11.:05:21.

But not so fast. Michael Dell's takeover it is too low at $24.4

:05:21.:05:25.

million, some say. Other shareholders are being told to vote

:05:25.:05:30.

against the deal, and another of her is being put forward, keeping

:05:30.:05:38.

the company a public be traded one. -- offer. It is going to be a tough

:05:38.:05:41.

sell. Some of the long-term stockholders have already said they

:05:41.:05:46.

are against it. What we have seen in some recent deals is that

:05:46.:05:50.

shareholders, especially shareholders against deals, really

:05:50.:05:54.

don't show their hand until the last moment. On one hand while the

:05:54.:05:59.

proxy is now out and you can go and solicit votes next week, I think

:05:59.:06:03.

the last week, the last two weeks, coming up to the boat, that's where

:06:03.:06:07.

all the action is going to happen. -- the vote. Shareholders will cast

:06:08.:06:13.

their votes on July 18th. Until then Michael Dell and Carl icon

:06:13.:06:18.

will be lobbying hard for what they believe is the best deal for the

:06:18.:06:22.

slumbering PC maker. European governments are trying to spur

:06:22.:06:26.

entrepreneurial activity, hoping that will help tackle the region's

:06:26.:06:30.

high unemployment and sluggish growth. According to United States

:06:30.:06:35.

research, the fastest-growing age group starting companies is between

:06:36.:06:41.

50-64. Could still wear hair the silver lining in Europe's economics

:06:41.:06:47.

are there? -- silver-haired. The word entrepreneur these days tends

:06:47.:06:53.

to conjure up a image of someone in their early 20s running a software

:06:53.:06:59.

start-up and selling it for millions. But the average age of

:07:00.:07:04.

start up starters in America is over 40. But what about for Europe

:07:04.:07:08.

where economies are finding it tough to return to growth? Could

:07:08.:07:13.

older entrepreneurs be the answer? If you're an old entrepreneur, is

:07:13.:07:18.

it easier or more difficult to start a business? I have come up

:07:18.:07:23.

here to Exact Logistics to ask the entrepreneur who started his

:07:23.:07:31.

company. Exact six Logistics was started because I was made

:07:32.:07:36.

redundant and we have the chance to make a small business on our own. I

:07:36.:07:42.

didn't want to work for a company again that wasn't my own. I was 51

:07:42.:07:46.

when I started. It makes it harder, you don't have the same level of

:07:46.:07:51.

energy perhaps, but you have got a lot more experience. Bringing all

:07:51.:07:54.

that experience together definitely made this a more successful

:07:54.:08:02.

business. This is a business in Coventry, started by Tom in 2008.

:08:02.:08:07.

He did it precisely because he was an older entrepreneur, and he had

:08:08.:08:12.

commitments... a family and a mortgage. Tom was a properly

:08:12.:08:17.

developer who had previously worked in the car industry. -- property.

:08:17.:08:21.

When the bottom fell out of the mortgage market he saw a niche

:08:21.:08:29.

selling rubber to make waterproof roofs on homes. There are more

:08:29.:08:32.

entrepreneurs in this country that have been born out of hard times

:08:32.:08:37.

than good times, necessity drives the change in what we do. As a

:08:37.:08:42.

slightly although entrepreneur who has had the life experience, it is

:08:42.:08:47.

easier for me to see the pitfalls - - although entrepreneur.

:08:47.:08:51.

countries looking to jump-start their economies, it could mean that

:08:51.:08:56.

older more risk aware entrepreneurs provide a more stable return to

:08:56.:09:06.
:09:06.:09:10.

-- a case brought up against Apple by the justice department begins

:09:10.:09:14.

today. They conspired against the publishers to raise the price of

:09:14.:09:19.

electronic books, it is claimed. Apple says the Government's case is

:09:19.:09:26.

unfounded. Japan Airlines says it halted a scheduled flight of a

:09:26.:09:31.

Boeing Dreamliner on Sunday, just a day after its fleet of Dreamliners

:09:31.:09:34.

resume full operations. Engineers were concerned about a faulty

:09:35.:09:38.

sensor in one of the modified batteries, but it turned out to be

:09:38.:09:42.

a very minor problem. It was grounded for four months due to

:09:42.:09:48.

battery problems. So the markets today were kind of mixed. We are

:09:48.:09:53.

seeing quite heavy losses again in Japan as you can see. Hong Kong up

:09:53.:09:58.

Download Subtitles

SRT

ASS