22/07/2013 World Business Report

2000. Those are the latest headlines. Time for the latest

financial news. World Business Abenomics, giving the Liberal

Democratic Party a mandate to push through further economic reforms.

The Asian economy that is now growing faster than China. Welcome

to the programme. Also on the programme, we focus on why more

British businesses are making their goods at home. In Tokyo, investors

have in buying up Japanese shares, a of confidence due to that project is

win for the ruling LDP in the upper house. -- an indication of

confidence. Recently, the yen has weakened sharply against the US

dollar, making Japanese products cheaper overseas. Shinzo Abe's

policy of pumping money into the Japanese economy on an unprecedented

level, the so-called Abenomics, seems to have won the backing of

Japanese companies and voters. Thank you for joining us. What is your

reaction to this result? It was widely expect that he would receive

the majority in the upper house of parliament? Expected and very good

news for consistency. Over the last decade, Japan was always stop and

go, stop and go, a new prime minister every year and gridlock in

Parliament. This should now be a thing of the past. He has three

years of stable government so that his drive for reform and policies

that he started six months ago will be able to go full steam ahead.

is your opinion on what Abenomics is. This is becoming a common

phrase. What is he actually doing ? First, he wants an economic

recovery, and end of deflation. In order to do that, he has massive

fiscal stimulus. Just a cyclical upturn will not be good enough to

turn Japan back into strengths. Structural reform is also a major

part of the agenda. That means labour market, energy market,

healthcare market, pension market... These difficult issues

will be addressed to make sure that Japan can return to being a 2%

stable growth economy. That is an enormous task for any government and

a huge mandate. He has the majority for the next three years. Will he do

it? I think his chances are very good. It is easier to talk about

these things than implement them, of course, but there are some concrete

indicators that Japan is going on to a new track. For example, the

government is committed to taking part in the Trans-Pacific

Partnership trade deregulation and liberalisation front. Also, the

government has deregulated Japan's energy grid to allow for more

competition and new business people to invest. The early signs are very

good that Japan is not just talk but also action. Thank you for joining

us and for your time stop we will look at the market reaction later.

Meanwhile, in the Philippines, hunger for new goods has sparked a

consumer boom. The economy is growing faster than that of China

but the country still has serious problems including high

unemployment. The day, the president delivers his State of the nation

address and he is expect to out plans for fresh economic reforms. --

expected. This could be New York, Tokyo or any capital city in the

world. Tall buildings and paved streets. But I am in Manila. This is

the epicentre of what is now one of the fastest-growing economies in the

region, surpassing even China at the beginning of the year. And helping

that growth are Filipino people like this couple, who are regular

shoppers at this shopping mall. Consumer demand is a key driver of

the nation's economy and they are some of the many millions for whom

shopping for food and clothes has been transformed with the

introduction of new outlets and a never-ending array of choice.

quarter, there is a new shopping mall. Literally. Every city that you

go to, there is a safe place to shop, eat and unwind. We have many

choices now compared with two years ago. Almost all of the brand names.

We do not have to leave the country to go shopping. It is the enthusiasm

of the Filipino consumer that has prevented a slowdown. 17% of the

Philippines economy comes from consumer spending but this is

because there is little industry or other drivers of growth. That means

new jobs are created, -- few jobs are created, adding to the

unemployment rate, which is the highest in Asia. This is one of the

over 3 million jobless Filipino is not benefiting from economic change.

He has been looking for work for a year and comes to this street a

couple of times per week. These men congregate to look for work in the

shipping industry. Just contract work. There is no job security.

at home, it is dinnertime and on the menu are people and Kentucky fried

chicken. Like many middle-class families, -- Pizza Hut and into the

fried chicken. Like many middle-class Filipinos, they can

afford to enjoy. There is still a lot of work to be done to ensure

everyone gets their fair share. The Philippines is also because centre

of the world but for most manufacturing, overseas companies

tend to go to China. However, higher wages and higher shipping costs are

forcing some companies to rethink where they make their products. In

the UK, one in seven companies are now bringing some of all of their

manufacturing at home. Packing their suitcases, manufacturers are coming

home. These children's suitcases are made right here in the south of

England. The manufacturers here decided that instead of opening up a

new fact in China, they would do their during in Britain. And they

are not the only ones. In the US, the likes of Apple, General Electric

and Caterpillar, have opened up new factories on home soil. Here,

Mulberry, Topshop and Aston Martin are coming home. No longer is China

the holy grail of cheap during. In 2012, wages in China grew up to 45%.

Shipping costs rose by over one third and the currency continued to

strengthen. With the risk of intellectual property theft, moving

manufacturing home could be an easy decision to make. For those who have

taken the plunge, they continue to see the benefit. Today, retailers

want suppliers who can react to new promotions and unexpected seasonal

demands. It can take up to 120 days from placing your order to receiving

it when you outsource to China. Now, it is just 30 days. We can react to

the market much faster. This is happening in California. In America,

like in the UK, there is a growing trend for consumers to support their

local producers. There is a fundamental shift taking place as

consumers recognise that the economy is bad and they can make a

difference by buying products made in America, which is very important

to getting jobs for their children, their families, and for the entire

economy. It seems the desire of British and American politicians to

have their nation carried high on the march of the makers could

actually come true - slowly but surely. Very interesting just to

keep track of these trends going on in business. Looking at the market,

now. 1.5% higher off the back of the news from Japan that it is more than