29/11/2013 World Business Report


29/11/2013

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by her brother, the ousted former leader. Those are the latest

:00:00.:00:00.

headlines. Time for the latest money news.

:00:00.:00:20.

India struggles with this weakest growth in a decade. The question is,

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will the latest numbers show the green shoots of recovery?

:00:27.:00:31.

The Thanksgiving parades, they are over, let the shopping begin. But

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America's retailers are expecting a tough time Black Friday.

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Welcome to the programme. We are going to talk about shopping in the

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United States. Also in the programme, Australia box `` blocks a

:00:58.:01:04.

US takeover bid for Graincorp. Financial markets are not happy.

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But first, we start in India, where the Prime Minister and his

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government are desperately hoping for a rare bit of good news on the

:01:16.:01:21.

economy. India's growth rate has collapsed in the last couple of

:01:22.:01:25.

years, with inflation soaring, companies struggling to invest, and

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the recent slump in the value of its currency, all because foreign

:01:30.:01:33.

investors are pulling out of India. It's taken a quick look at the

:01:34.:01:38.

numbers. India needs its economy to be growing at 8%. That is what it

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needs if it is to reduce poverty and provide jobs for the growing number

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of young people. In the last financial year ending in March,

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annual growth was only 5%. That is the weakest growth number in a

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decade. It is half of what it was two years ago. Since then, things

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have gotten worse. Annual growth was 4.4%. In a few hours, ousted his ``

:02:06.:02:14.

the statistics office will publish figures for the latest quarter. It

:02:15.:02:17.

showed that growth may have picked up a fraction, or .6%. A good

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monsoon has certainly helped. It has given India's 100 million farmers

:02:27.:02:30.

more money to spend. They spend that in the economy, that is good, but

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the rupee's kind has also helped the exporter 's. It means them cheaper

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for all of us to buy. But experts are warning an improvement could be

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just a blip. They say that annual growth this financial year may be

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even work `` weaker than last year. We are at a factory that makes auto

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components. I guess that is the question. Certainly all the people

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in the factory, the owners, the workers, they want to see some solid

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growth. Will it just be a blip? I don't think she can hear me.

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Apologies about that. Maybe the machinery is too loud, I do not

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know. Let's talk about this. Shares in Australia's biggest grain

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company, Graincorp, have been plunging this morning after the

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government blocked a takeover bid by a US rival. The Australian Treasurer

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said the $2.5 billion offer by ADM was not in the nation and `` the

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nation's interest. Graincorp shares have slumped by as much as 26%.

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Thankfully you can hear me. This is interesting. The Prime Minister,

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Kevin Rudd, when elected, he said Australia is open for business. But

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some investors may be doubting that now. Also I have to correct you...

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Kevin Rudd is gone now and we have Tony Abbott. Our fellow Australians

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are determined not to let the Americans get their hands on this

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company, Graincorp, which is the biggest handler of Aalborg grain

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exports. It is a very interesting case, and not just because of that

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open for business declaration, but also the whole sensitive ``

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sensitivity about foreign ownership, especially when it comes to food and

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agriculture. Joe Hockey is keen to point out that he is not going to

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make a habit of saying no, of the 131 foreign investment applications

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that he has looked out, he has only rejected one, and this is it. He

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says there are two reasons, one is competition, and the other is much

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broader. He says there has been so much concern about the takeover,

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that if he said yes, it could undermine public support for foreign

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investment generally. But experts are arguing that buyers may have to

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start factory on a level of political risk when they are looking

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at Australian assets. It has been viewed as a potential indication of

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where this new government is heading. But at the same time that

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Graincorp has been in play, one of Australia's oldest dairy processors

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is in the middle of the takeover battle. There is a Canadian company

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wanting it. Even before we know who is going to win that bidding war,

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they have been given the green light by the foreign investment

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regulators. You could say the Canadians are in but the Americans

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are out. It is too soon to draw any broader conclusions.

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I do know that Rudd is out, Tony Abbott is in. We will talk to you

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soon. Let's go to the US, where the nation

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has been celebrating. The Thanksgiving holiday. These were the

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scenes in New York. 3 million people gathered to watch the parade.

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Sponsored by Macy's department store. But if Thursday was about the

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parades, and the food, today it is all about the shopping. Indeed,

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Black Friday, as it is known, is the biggest shopping day of the year.

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The biggest of them all, Walmart, is ready warning of the gloomy times

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ahead. More Americans have jobs than a year rego, but incomes are failing

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to keep pace with all the household costs. It our final part of our

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series, we report from New York where for many, cheap and cheerful

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is the order of the day. A steady stream of customers keep

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this couple pretty busy. They owe and this could store and almost

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everything sells for only $1. These days, they are seeing more

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customers, and not just their regulate `` regulars. People are

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losing their jobs, their houses, they are in debt. It is hard for

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everyone. It is very hard for everyone to spend money. So more of

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them come here because they do not have to hunt to find a bargain. Of

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course it is less money because everything is so expensive. We

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manage. Everything is up in cost. You have more variety here and you

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get to stretch your dollars more. It is quick, things are radon. Since

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the economic recession, incomes in the US have been declining. They are

:08:09.:08:13.

barely outpacing inflation, which means that people these days have

:08:14.:08:19.

less money in their pocket. Why does that matter? If people have less to

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spend? This economy depends on consumers making purchases, and lots

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of them. If people are not in the shops, the economy as a whole

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suffers. The typical family, on a low income level, has two spent

:08:38.:08:41.

every dime they make. So that money gets circulate it in the economy,

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causing growth, but what we are seeing is that families have low

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incomes, they are spending everything they have but it is still

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not enough to sustain the kind of consumers spending that we really

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need. In an economy that needs consumers to shop, the people

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staking these idols are doing their part for the recovery, even if it is

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only $1. We are going to keep across the big

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spend on Black Friday. Let's touch on this particular story. Can she

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price inflation in Japan hit a five`year high in October. ``

:09:23.:09:33.

consumer. It rose 09%. It is being seen as a victory for the Prime

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Minister, who is trying to end inflation and try to reinvigorate

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the world 's's third largest economy, but his stimulus policies

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through all about. Let's have a quick look at the Asian

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markets. A major new report is out in the UK

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which says that radical action is needed to stop town centres and high

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streets from falling into terminal decline. It is estimated that they

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are ruffled T5 vows and `` 45,000 empty shops in Britain, and the

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distressed town property task force says that many towns and cities need

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rebuilding on a scale not seen since after the Second World War.

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What to do about all of these empty shops blighting our town centres?

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They galvanised communities into action. There have been a host of

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Government schemes, but there is no quick fix. He is the head of a group

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of retailers, bankers, landlords and

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