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are the latest headlines from BBC World News. | :00:00. | :00:10. | |
:00:10. | :00:19. | ||
Now for the latest financial news Roam if you want to and at a much | :00:19. | :00:23. | |
cheaper cost in Europe. Charges have been cut by a third today | :00:23. | :00:28. | |
thanks to EU regulators. The strong ?I ? The strong | :00:28. | :00:30. | |
Australia's manufacturers and tourism industries have had to | :00:30. | :00:40. | |
:00:40. | :00:42. | ||
Welcome to World Business Report. I'm Sally Bundock. Also in the | :00:42. | :00:52. | |
work. Mark Carney moves into the Bank of England. We assess what is | :00:52. | :00:58. | |
in his in-tray. From today it is cheaper to use mobile phones across | :00:58. | :01:01. | |
the European Union. Checking email or surfing the web on a mobile | :01:01. | :01:05. | |
phone while travelling in the EU will now be a third cheaper under | :01:05. | :01:09. | |
cuts to roaming charges enforced by the EU's regulator just in time for | :01:09. | :01:12. | |
the summer holiday season. For the past six years, the EU has been | :01:12. | :01:16. | |
forcing down prices by placing a cap on the charges providers can | :01:16. | :01:21. | |
impose and reducing that limit each year. It says it has achieved | :01:21. | :01:25. | |
retail price reductions of over 80% industry and benefiting the | :01:25. | :01:35. | |
:01:35. | :01:38. | ||
companies involved. So how much further can it go? I am joined by | :01:38. | :01:42. | |
Luca Schiavoni, an analyst in Ovum's regulatory advisory service. | :01:42. | :01:50. | |
Tell us more about what has changed. Today, we are having a reduction by | :01:50. | :01:54. | |
around 36% in the data roaming prices, the price we pay when we | :01:54. | :01:59. | |
browse the Internet from abroad. There are also reductions in what | :01:59. | :02:04. | |
we pay for making and receiving phone calls and sending texts from | :02:04. | :02:12. | |
other countries. This has been going on since 2007 and the | :02:12. | :02:18. | |
regulation was reviewed last year. There will be further price | :02:18. | :02:23. | |
reductions in 2014, July. This only covers the European Union countries. | :02:23. | :02:29. | |
If you travel elsewhere, you may actually face higher prices because | :02:29. | :02:33. | |
operators are free to set the price now for roaming in other | :02:33. | :02:37. | |
destinations. We see that in some situations this has happened. | :02:38. | :02:43. | |
is good news for consumers. Often we forget to turn our roaming off | :02:43. | :02:46. | |
when we go to Europe and we then get stung with a huge bill. The | :02:46. | :02:50. | |
regulators also argue it's good for the industry. What do companies | :02:50. | :02:57. | |
say? Companies are being quite vocal against roaming regulations. | :02:57. | :03:03. | |
In 2010, they lost an appeal before the European Court of Justice. They | :03:03. | :03:10. | |
have also been recently very vocal against talks to completely remove | :03:10. | :03:15. | |
roaming charges. Of course the fact that markets have been growing, the | :03:15. | :03:20. | |
demand for telecoms services have gone up, particularly data traffic, | :03:20. | :03:25. | |
helps them have a wider market. Also, it is very competitive. | :03:25. | :03:31. | |
Revenue margins are going down. We expect operators to have money to | :03:31. | :03:37. | |
invest, to upgrade networks and provide new services and obviously | :03:37. | :03:42. | |
they need profits to do so. From today, the charges for roaming go | :03:42. | :03:47. | |
down significantly and also the charges for making a call, sending | :03:47. | :03:51. | |
a text. Is it still advisable to switch your running off when you go | :03:51. | :03:57. | |
overseas? Many people are still finding data roaming prices quite | :03:57. | :04:03. | |
costly. Generally, they either turn their data Connection off when | :04:03. | :04:09. | |
abroad or by a SIM card on the spot to benefit from a data plan from a | :04:09. | :04:15. | |
local operator. So, until now, people have thought this is still | :04:15. | :04:18. | |
too expensive. There will be pressure on the market regardless | :04:18. | :04:22. | |
of regulation to bring prices down, so operators will have to do | :04:22. | :04:26. | |
something to make data roaming more attractive. Thank you for your time. | :04:26. | :04:34. | |
Very interesting. Of course we will keep you up-to-date two new changes. | :04:34. | :04:37. | |
There's been a big jump in confidence among Japan's large | :04:37. | :04:40. | |
manufacturers as they hope the policies of Shinzo Abe will boost | :04:40. | :04:44. | |
their fortunes. We can go go live to our Asia business hub in | :04:44. | :04:47. | |
Singapore and speak to Rico Hizon. Tell us more. | :04:47. | :04:53. | |
This is the first time that they have turned positive in nearly two | :04:53. | :05:02. | |
tears. It is based on this survey called the Tankan. Sentiment rose | :05:02. | :05:06. | |
from -8 in the previous quarter. This is the first positive reading | :05:06. | :05:14. | |
since September out in 2011 and shows the government's economic | :05:14. | :05:18. | |
policy, aimed at ending nearly two decades of inflation and falling | :05:18. | :05:23. | |
prices, is boosting the morale of business people. The survey also | :05:23. | :05:27. | |
showed that large manufacturers plan to raise their spending by | :05:27. | :05:31. | |
nearly 6% compared to a forecast of just 3%. | :05:31. | :05:39. | |
The news was not so good out of China, though? | :05:39. | :05:42. | |
Absolutely. This is reinforcing fears about slowing growth in the | :05:42. | :05:47. | |
world's second biggest economy. The government's official purchasing | :05:47. | :05:55. | |
index fell from 50.8. A reading above 50 shows an expanding in | :05:55. | :05:59. | |
activity while a reading below indicates contraction. But it was a | :05:59. | :06:05. | |
different story for the HSBC index, which revealed a more dire economic | :06:05. | :06:08. | |
environment. They shrunk for a second straight month and bottomed | :06:08. | :06:14. | |
to the lowest level in nine months. New orders fell, despite price cuts. | :06:14. | :06:21. | |
The number is a contraction at 48.2. That is down from a Macy reading of | :06:21. | :06:29. | |
49.2. We are therefore seen a weaker Chinese economy. -- May. | :06:29. | :06:34. | |
For Mark Carney, the former head of the Bank of Canada and the first | :06:34. | :06:39. | |
non Brit to run the Bank of England, moves into its headquarters in the | :06:39. | :06:43. | |
city of London this morning. He faces a tough challenge. Britain's | :06:43. | :06:46. | |
politicians are hoping he can inject confidence and try new ideas | :06:46. | :06:49. | |
to revive the flagging economy. Expectations are high but once the | :06:49. | :06:53. | |
hype has died down will he deliver the results and what monetary tools | :06:53. | :06:58. | |
will he use? We will discuss this further when we look through this | :06:58. | :07:01. | |
mornings papers in five minutes. Crowds in the Croatian capital, | :07:01. | :07:07. | |
Zagreb, have been celebrating the country joining the European Union. | :07:07. | :07:11. | |
Just a few hours ago, Croatia officially became the EU's 28th | :07:11. | :07:14. | |
member. Overnight customs posts were removed along the country's | :07:14. | :07:23. | |
border with other EU nations. The loss of hundreds of car-making | :07:23. | :07:27. | |
jobs in Australia has been blamed of the effects of a strong domestic | :07:27. | :07:32. | |
-- domestic currency. Automotive firm Holden sacked 400 workers in | :07:32. | :07:35. | |
April, while Ford Australia says it will close its factories in October | :07:35. | :07:39. | |
2016, with the loss of hundreds of jobs. Much of the country's | :07:39. | :07:41. | |
manufacturing industry has also struggled to cope with a high | :07:41. | :07:46. | |
currency. In the first of a series of reports from around Asia taking | :07:47. | :07:50. | |
a look at the recent squeeze on the currency markets, Phil Mercer | :07:50. | :07:56. | |
reports from Sydney on how Under pressure from competition | :07:57. | :08:03. | |
overseas, Australia's manufacturers have had to innovate to stay viable. | :08:03. | :08:06. | |
The sector has been baffled by the strength of the Australian dollar | :08:06. | :08:10. | |
in recent years. It has made imports cheaper and has sent the | :08:10. | :08:19. | |
price of many exports soaring. A factory in Sydney sees cheap metal | :08:19. | :08:25. | |
cut by laser to reduce costs. The finished product has a range of | :08:25. | :08:31. | |
uses, from submarines to barbecues. Competition from China and Taiwan | :08:31. | :08:34. | |
has forced Lifestyle Barbecues, a family-run firm, to shift its focus | :08:34. | :08:38. | |
away from the low-cost end of the market to premium sales. There are | :08:38. | :08:41. | |
a lot of products available to supply customers who want barbecues | :08:41. | :08:51. | |
:08:51. | :08:56. | ||
at low prices. Because of the high Australian dollar, you can go to a | :08:57. | :09:00. | |
store and purchase a barbecue for up to $800. That will be perfectly | :09:00. | :09:07. | |
adequate. But we sell the equivalent form for up to $3,000. | :09:07. | :09:10. | |
Manufacturers say the muscular Australian dollar, which has spent | :09:10. | :09:14. | |
much of the past three years valued above its American cousin, has put | :09:14. | :09:17. | |
them at a distinct disadvantage. Michael is an analyst in Sydney and | :09:17. | :09:21. | |
he agrees. It has changed the landscape of the Australian | :09:21. | :09:31. | |
:09:31. | :09:32. | ||
industrial outlook. Manufacturing as a sector has been hit hard. That | :09:32. | :09:38. | |
is where Australia is hardly competitive at the best of times. | :09:38. | :09:45. | |
The dollar has put Australia in an uncompetitive position. The weight | :09:45. | :09:48. | |
of the strong currency has also caused a slump in the tourism | :09:48. | :09:52. | |
industry but there are signs that the pressure is beginning to ease. | :09:52. | :09:55. | |
In recent weeks, the Aussie dollar has weakened against the major | :09:55. | :09:58. | |
global currencies. That could be enough to lure back more stay-away | :09:58. | :10:05. | |
foreign travellers. There are many different pressures on the | :10:05. | :10:08. | |
Australian dollar, from the strength of the Chinese and US | :10:08. | :10:11. | |
economies to interest rates and the softening of the mining boom. | :10:11. | :10:14. | |
Predicting where the currency goes next is a tricky business. One | :10:14. | :10:17. |