03/12/2013 World Business Report


03/12/2013

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Those are the latest headlines from BBC World News.

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Now for the latest financial news with World Business Report.

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A make or break summit ` the World Trade Organisation meets on the

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island of Bali as it fights to salvage a deal on global commerce.

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And Italian fashion house Ferragamo eyes the business prize in

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south`east Asia. Welcome to World Business Report.

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I'm Sally Bundock. In a minute we'll have a look at Toyota China sales `

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but first ` top trade officials have begun talks on the Indonesian resort

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island of Bali that will either produce an 11th hour deal that could

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boost the global economy or possibly spell the end of the World Trade

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Organisation's relevance as a forum for negotiations. The hope is that

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its 159 members will agree to its first`ever accord aimed at removing

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barriers to trade. There is a lot a stake as it's estimated a deal could

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add $1 trillion to global trade. Alice Budisatrijo is our reporter in

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Bali The Italian fashion house there is often a hostile reception

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when the World Trade Organisation comes to town. The anti` trade

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organisation chants in Bali will have a familiar ring as delegates

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that `` gets down to business. They will try to make negotiations that

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were started 12 years ago. There is no chance of a full agreement.

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Negotiators have been trying to get a deal on part of it, including

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cutting red tape, food security, and lower barriers for customs duties on

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export from poorer countries. In the end, there was no agreement. The

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director`general says a deal would deliver jobs and opportunities, but

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Australia would have grave consequences for the trading system.

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It would fail the business community and the world's poorest people.

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We speak to our correspondence at the negotiations right now. It is

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nice to see you. Tell us about the expectation weigh you are.

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Indonesia's trade Minister says there is a chance of salvaging this

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elusive deal, and yet many argue that it is pie in the sky. There is

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a huge challenge for ministers here to strike a deal. If I can summarise

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the main issues they will put about here, one is trade facilitation,

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easing the flow of goods between international borders. There will be

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talks on making it easier for products from poor countries to get

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into rich countries. There is a very tough negotiation on agriculture.

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India is coming to these meetings with the promise of no copra buys on

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food security programmes. `` no compromise. These talks usually end

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of being a fight between rich and poor countries. This stand is

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frustrating developed countries and developing countries. Officials have

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told that Bali is known as the island of the gods, they are hoping

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that a heavenly guidance could lead these negotiations to an agreement.

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Judging by the rhetoric we have been hearing in the lead up, it feels

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like only a heavenly guidance could bring them to an agreement. They are

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looking for some divine intervention, which is interesting.

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What are people saying about the relevance of the WTO, given that so

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many trade deals are being made on a bilateral level. Certainly, what

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officials have told me is that considering talks in Geneva earlier

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this week have failed to bring an agreement to Bali, these talks in

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Bali between ministers, which is actually even more clouded by

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political interests than talks between trade delegates in Geneva.

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The problem with these trade talks is that it is very difficult, even

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though the WTO was created to help poor countries, there is a promise

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of global trade deals to boost the world economy by $1 trillion. It is

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difficult for governments to convince citizens that they will get

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a slice or a fraction of that pie in the form of their increased wages.

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That is why these trade talks are difficult. Most people only see

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globalisation as meaning a loss of jobs and an influx of cheap goods

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coming in from other countries. Thank you. We will talk to you

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later. Now, Toyota. It has seen a big jump

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in sales in China in November. Some say it is a sign that consumers have

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not been put off Japanese goods, despite the recent spat over

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disputed islands. We are joined from Singapore. Tell us more about this.

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Of course, the space between China and Japan is only very recent, isn't

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it? Absolutely. We are seeing quite encouraging numbers despite the row

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between the Chinese and Japanese. The sales rose by almost 41%. Is the

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third month in a row of gains this year. The November sale is the first

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month 's is a territorial dispute between Asia's? Biggest economies

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surface. Japanese brands are still escaping the backlash they faced

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last year over a group of disputed islands in the East China Sea. This

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illustrates the contrast and the economic fallout between last two's

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to make the speech in this year. Analysts say the pressure on

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Japanese automakers will always be there. They will always need to find

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the best way to cope with the current situation, given that China

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is a must have market. They think that the impact over the disputed

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islands, and China cream this as a fence area will start impacting

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sales numbers this December. We will have to see. An Italian fashion

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house, Ferragamo, is betting on China's love affair with fashion.

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It's heavily invested in China, but with growth in that market slowing,

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it's looking to other countries in south`east Asia. Ashleigh Nghiem

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spoke to the firm's CEO and Salvatore Ferragamo's grandson to

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find out more. The luxury fashion label Ferragamo

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is a long`standing favourite amongst Hollywood and Beverley Hill 's

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luminaries, but Asia is becoming part of the business. The demand is

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largely driven by demand from China. Beijing and Shanghai have been

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overestimated. Every brand has four or five stores. The competition is

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very high. Local consumers have the opportunity to travel more abroad.

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Our strategy to distribute to cover the whole Chinese territorial has

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been a good one. The CEO believes there are still big opportunities

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for growth in other parts of Asia, including Indonesia, the unarmed and

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the Philippines. `` Vietnam's. Today we have a fashion show, it is live

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streaming. Anyone can see it. The information is available. This is

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creating more commonality then there was in the past. With the profits in

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Asia, many luxury brands are putting in a big effort. How was this firm

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trying to do sting which it runs? We are launching a major water brand.

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`` trying to distinguish its brands. We want customers to come in

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and order issues. They can select the material, the colour of the

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ornaments, and have the shoe personalised. That is becoming more

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important. Today, everything is becoming so available. The ability

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to select something made for them, on their specific needs, is what

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luxury has become. An old brands trying new tricks, just one sign of

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how tough it has become for all luxury brands given Chinese is

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spending on these products has dramatically slowed in the past two

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years. We will talk you through the

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newspapers in a moment. Stay with us. The final format victims of

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Friday's helicopter crash have been named by police. Officers have now

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finished their fingertip search of the Clutha Vaults pub, and the

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helicopter is being taken to Hampshire to be studied by air crash

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investigators. Dan Johnson reports from the scene in

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