08/11/2013 World Business Report

substance. Those are the latest headlines. Now

it is time for the latest financial news.

Shaping the future of China. Party leaders meet this weekend to agree

reforms that could have a massive effect on the global economy.

Counting the cost of deadlock in Washington. US jobs numbers may

reveal a slump in high ring and a rise in unemployment in October. ``

hiring. In just a moment, we will have a

full report on the US jobs figures. First, our top story. What will

China look like in the coming decade? It is a key moment for the

nation as its new leaders hold a meeting this weekend to set the

course for the next 5` ten years. Many believed that economic reforms

agreed this year could prove as important as those under Deng

Xiaoping, in 1978, and Jiang Zemin in 1993, which effect to be opened

up China to capitalism and begin nearly four decades of phenomenal

economic growth. As you saw, the potential reform of

this. China's currency, the yuan, will be one of the areas most

closely watched in the business world. At the moment it is strictly

controlled. Moves to liberalise it could see it becoming one of the

most used currencies in the world, alongside the dollar and the euro.

Hong Kong, an international financial centre that has directly

benefited from china's opening to the world. The reforms that have

propelled china's rise will force launched 35 years ago. They have

been instrumental in reshaping not just Hong Kong's famous skyline, but

also the global economic order. That is why the meeting this weekend of

the Communist Party's central committee is potentially so

important. Local investors are hoping to get an indication of

China's next age of development. The currency traders want to know how

the Chinese currency may be freed in the coming years. They tend to be

big picture meetings. It is principles, not details and

timelines. We are expecting a chimp `` a continuation of the present

trend. A quite rapid development of the capital. It would allow foreign

investors greater access. The speed with which Shanghai's free trade

zone was set up the sum is proof to some of the government's ``

intentions. Other changes could include expanding the property and

consumption taxes, allowing the market a greater say in setting

interest rates, and further relaxing the one child policy for some

families. With reform hopes running so high, this watcher says it is

important to understand the limits. Xi Jinping has made it very clear

that stability and also the protection of state interest will

also be top priorities. What it means, there are several dozen big

clans at the top of the party which control a big chunk of the economy.

The western interests of the major ones, and the power blocs, will be

protected. In the hazy world of Chinese politics, it is sometimes

hard to see the difference between reformers and hardliners. The

outcome of their power struggle is what will shape the country's

future. He is a senior economist at ANZ in

Hong Kong. Many thanks were joining us. As we went here ring from our

reporter, we already had a taste of some of the reforms and the speed

with which the free economic zone was set up near Shanghai. Is this a

taste of what is to come? Or the new initiatives, including the

free`trade zone, is clear that the new government led by Xi Jinping,

has a determination and willingness to push China economically into the

next age. China is no longer the world's factory. Inflation and wages

have been rising over the past several years. It has to have a

structural change of the underlying economic fundamentals in order to

push the growth to a sustainable manner. Doing things such as

allowing the currency to appreciate, giving markets more of a say in the

setting of interest rates, but in order for all of these developments

to take place, there needs to be a reshaping of the internal problems,

the development of a modern welfare state, for example. Obviously it is

not free from challenge. They run many domestic challenges that the

new government needs to tackle, especially for the industrial

structure of China. It has been biased towards manufacturing and

heavy industry, but there is an overall aim and goal for the

government to rebalance the economy to become more consumption led

instead of investment led. From that perspective, China needs to do a

lot, including some structural change, ranging from the changing of

the one child policy, to cracking down some of the state dominance in

certain economic set this. `` sectors.

They say a week is a long time in politics, but it seems that 16 days

can also make an huge difference in economics. Figures out on Thursday

showed the economy was growing at a healthy pace and the three months to

the end of September, but that was before the 16 day shutdown that

paralysed much of the US government and saw thousands of federal workers

are sent home. On Friday, October employment figures will give us the

first shot of the damage. They are expected to show that US employers

created 125,000 jobs in October. To put that into perspective, the

monthly average sofar is 178,000. The jobless rate is also expected to

have gone up to 7.3%, from 7.2% in September.

Lighting up America's won me. This New Jersey company installs lighting

and audio equipment at events, including big concerts with Elton

and Justin Timberlake. He started the business 30 years ago in his

parents' garage. The firm survived the recession and in recent years,

it expanded and hired more staff. Things were starting to look up, but

then the US government came to a standstill. To have the government

to make it harder for you, with things such as the shutdown, and the

sequestration, it is very challenging and frustrating. We are

in the same boat as any small business. We are working hard,

putting in long hour was, trying to build something, and the government

in many ways is getting in your way. Small businesses like this are

believed to generate two thirds of new jobs created in America's on me.

But this is just one of many companies that are feeling slightly

less confident about the economy because of the political deadlock in

the capital. The deadlock resulted in much of the US government in

paralysis, with hundreds of thousands of federal employees

suddenly out of work for two weeks. It also took a toll on confidence

among small business owners. The political disagreement is not yet

fully resolved. The issue is not over. All that Congress agreed was

to put off the issue for a few months. It is hard to gauge the

total impact. This is the third time it has happened in three years. That

uncertainty could make businesses think twice before hiring more

people. The US economy still needs to replace jobs that were lost

during the recession. Without them, the economic recovery remains murky.

That date is having an effect on market around the world with Asian

stocks tracking losses on the US on renewed concerns that the Fed will

start scaling back earlier than expected.

This is BBC News. Only two in every 100 teapots about illegal immigrants

result in a person being removed