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Those are the latest headlines from BBC News. Now for the latest | :00:00. | :00:00. | |
financial news, with Sally Bundock and World Business Report. | :00:00. | :00:15. | |
The Bank of England's poised to sign a deal with China that will see | :00:16. | :00:20. | |
London become a hub for trading in the yuan, but has Frankfurt stolen | :00:21. | :00:24. | |
the march? And find out why entrepreneurs are | :00:25. | :00:27. | |
choosing to launch their start`ups in India. | :00:28. | :00:35. | |
Welcome to World Business Report, I'm Sally Bundock. Also in the | :00:36. | :00:41. | |
programme, industrial production sinks in Japan. We digest the news | :00:42. | :00:44. | |
on the eve of the introduction of a controversial sales tax. | :00:45. | :00:52. | |
Let's talk about the Chinese currency. The yuan used to be a | :00:53. | :00:59. | |
closed shop as it was tradable only in mainland China. But that is | :01:00. | :01:04. | |
rapidly changing and soon it is expected to rival the Euro and US | :01:05. | :01:07. | |
dollar in terms of traded volumes. No surprise that con `` petition has | :01:08. | :01:14. | |
been stiff. The German Bundesbank and the People's Bank of China | :01:15. | :01:18. | |
signed a deal on Friday to facilitate transactions in the | :01:19. | :01:21. | |
Chinese currency in Frankfurt. Today, London will enter the frame | :01:22. | :01:26. | |
`` the fray, with a memorandum finally being signed, establishing | :01:27. | :01:31. | |
London as another hub for Chinese currency dealing. Oliver Barron is | :01:32. | :01:37. | |
head of China research at NSBO and joins me now from Beijing. London | :01:38. | :01:46. | |
wanted to be in prime position to offer yuan trade business in Europe. | :01:47. | :01:49. | |
It is playing second fiddle to Frankfurt, or is it? Tell us about | :01:50. | :01:57. | |
the latest move. I think Frankfurt certainly came first bite, in terms | :01:58. | :02:02. | |
of Frankfurt and China, there are clear trade benefits. `` came first. | :02:03. | :02:09. | |
I don't think it will overtake London. London will still be the | :02:10. | :02:13. | |
natural settling place because it is already the centre for currency | :02:14. | :02:17. | |
transactions globally, accounting for over 40% of global transactions. | :02:18. | :02:23. | |
Many people say the yuan will become as big a traded currency as the Euro | :02:24. | :02:30. | |
or US dollar. I read that in my introduction. `` euro. When will | :02:31. | :02:37. | |
that start to happen? Merret currently we are in a situation | :02:38. | :02:44. | |
where the yuan is already one of the largest traded currencies. But in | :02:45. | :02:48. | |
terms of taking over the euro or US dollar, we have a long way to go. | :02:49. | :02:54. | |
Investors need to be comfortable with investing in its financial | :02:55. | :02:57. | |
system. We need to see reform. Opening up of the currency, | :02:58. | :03:02. | |
liberalising of the capital account, before it can rival them. In terms | :03:03. | :03:05. | |
of the constant accusation towards China about the fact that its | :03:06. | :03:10. | |
currency doesn't float freely in the same way that other currencies like | :03:11. | :03:14. | |
the US dollar does, where does this take China? This next step, doing | :03:15. | :03:22. | |
deals with fractured and London, for the Chinese currency to be a freely | :03:23. | :03:28. | |
floating currency? China likes to do things step by step. It has | :03:29. | :03:33. | |
gradually expanded the countries with which it does trade settlement. | :03:34. | :03:40. | |
It has swapped lines `` swap lines and is expanding markets. I think it | :03:41. | :03:46. | |
is going to continue to grow. The offshore markets will keep growing. | :03:47. | :03:49. | |
But it will be a step`by`step process, until we see more progress | :03:50. | :03:55. | |
and other reform. Thank you for joining us. That deal, as and when | :03:56. | :04:04. | |
it is announced, we will update you hear on World Business Report. | :04:05. | :04:08. | |
This time next week Indians will be heading to the polls as the world's | :04:09. | :04:11. | |
biggest democracy votes for a new leader and whoever gets the job kick | :04:12. | :04:14. | |
starting economic growth will be top priority. But despite the slowdown | :04:15. | :04:17. | |
over the past couple of years, the number of start`ups has been growing | :04:18. | :04:20. | |
in India. And it's not just domestic entrepreneurs setting up new | :04:21. | :04:22. | |
businesses. Some expatriates have decided this is the place to try and | :04:23. | :04:26. | |
launch a new idea. Sameer Hashmi reports from Bangalore. | :04:27. | :04:30. | |
This might look like a car park but in fact it is the home of one of the | :04:31. | :04:36. | |
first companies in India that lets you hire a car and then drive it | :04:37. | :04:39. | |
yourself. Unlike most developed countries, until recently anyone | :04:40. | :04:42. | |
wanting to rent a vehicle here to hire a driver as well. We thought, | :04:43. | :04:55. | |
we don't have show first so it will be cheaper... It is the creation of | :04:56. | :05:00. | |
these two friends. The quick universities in the UK and US to | :05:01. | :05:03. | |
move to Bangalore and start the company. A brave move because, | :05:04. | :05:06. | |
wherever you are, launching a business is never easy. But being | :05:07. | :05:11. | |
foreigners in India makes it tricky. A lot of people thought, these white | :05:12. | :05:15. | |
Americans, they think they are going to come here and start a company. | :05:16. | :05:18. | |
But as soon as things turn tough, they are going to run right back to | :05:19. | :05:22. | |
good job opportunities in San Francisco and New York. Investors | :05:23. | :05:26. | |
were initially reluctant for that reason. Now we have been in business | :05:27. | :05:30. | |
for almost one year, we have proven wrong. There is really no official | :05:31. | :05:35. | |
figure but it is estimated that over one million new small and | :05:36. | :05:37. | |
medium`sized firms are launched in India every year. According to the | :05:38. | :05:41. | |
World Bank, this is one of the toughest places to start a business. | :05:42. | :05:45. | |
Mark's journey in India began six years ago when he and his wife | :05:46. | :05:49. | |
decided to move here from the UK to start a branding and corporate | :05:50. | :05:57. | |
communications company. I do think India is an attractive market. You | :05:58. | :06:01. | |
have to take a long`term view on India. The next five `10 years could | :06:02. | :06:07. | |
be very exciting in India. We remain pretty bullish about it. But clearly | :06:08. | :06:12. | |
not without its challenges. And it's not only individuals who are | :06:13. | :06:14. | |
optimistic about start`ups here. But investors as well. Last year, | :06:15. | :06:17. | |
backers put $1.6 billion, US, into Indian start`ups with the e`commerce | :06:18. | :06:25. | |
sector most popular. It's good to see this reverse kind of migration | :06:26. | :06:31. | |
happening. It's good because you suddenly have very open, very | :06:32. | :06:33. | |
entrepreneurial thinking, where many of us in India don't have that | :06:34. | :06:39. | |
openness of mind. Making it easier for ex`patriots to start a business | :06:40. | :06:42. | |
here is something the government has been talking about for a while. And, | :06:43. | :06:46. | |
if that happens, that might tempt more foreigners like Mark to come | :06:47. | :06:49. | |
here, not just to sample the culture, sights and food but to have | :06:50. | :06:52. | |
a go at being an Indian entrepreneur. | :06:53. | :06:58. | |
Its very important week for the Japanese economy, with a brand`new | :06:59. | :07:04. | |
sales tax starting tomorrow. Today we had surprisingly bad news about | :07:05. | :07:08. | |
the economy. In feathery, the industrial production went down by | :07:09. | :07:17. | |
2.3%. A month on month fall. Slipping after a near 4% rise in | :07:18. | :07:20. | |
January. Economists were expecting growth. Rico Hizon is in our Asia | :07:21. | :07:29. | |
Business hub in Singapore. Tell us, what's going on Japan? A very big | :07:30. | :07:37. | |
disappointment with this `` these industrial production numbers. The | :07:38. | :07:41. | |
key industries showed very low numbers, especially automakers, | :07:42. | :07:47. | |
manufacturers of mobile phones, personal computers and heavy | :07:48. | :07:52. | |
machinery. Weakened factory output. You also have to add to the equation | :07:53. | :07:56. | |
unusually cold conditions and snowstorms weighing on production. | :07:57. | :08:05. | |
This data comes the day before the controversial national sales tax. It | :08:06. | :08:11. | |
will be rising to 8% from 5%. Analysts say there is a possible | :08:12. | :08:15. | |
sign that benefits from last`minute demand before the implementation may | :08:16. | :08:18. | |
have run their course. Companies may have also curbed reduction to keep | :08:19. | :08:23. | |
inventories low, fearing oversupply because they may be worried that | :08:24. | :08:28. | |
demand could be weaker after this sales tax hike. Ahead of this | :08:29. | :08:33. | |
insurgents, the Prime Minister is looking out for the bank of Japan? | :08:34. | :08:38. | |
Key survey which will be out on the 1st of April, tomorrow. That could | :08:39. | :08:43. | |
offer what impact the sales tax hike could have on business sentiment. | :08:44. | :08:48. | |
Economists say the numbers suggest the economy might not rebound | :08:49. | :08:52. | |
quickly and the burden might fall on the central bank, as the government | :08:53. | :08:57. | |
has already committed to fiscal stimulus spending. Everything really | :08:58. | :09:03. | |
is very tentative on what might happen to the Japanese economy going | :09:04. | :09:05. | |
forward, with the implementation of this new tax rate from 5% ` 8%. | :09:06. | :09:12. | |
Thank you. In other news, Italian police have | :09:13. | :09:15. | |
arrested two men who were allegedly trying to deposit trillions of euros | :09:16. | :09:20. | |
in fake bonds in the Vatican bank. The pair, an American and a Dutch | :09:21. | :09:23. | |
national, claimed they had an appointment with bank officials to | :09:24. | :09:26. | |
gain entry but were handed over to police. Fake bonds with a face value | :09:27. | :09:29. | |
of three trillion euros, that's $4.1trillion, were found in their | :09:30. | :09:36. | |
briefcase. The suspects were reportedly hoping to open a line of | :09:37. | :09:40. | |
credit at the bank. The Greek parliament has narrowly | :09:41. | :09:43. | |
approved a big reform package that will open more retail sectors to | :09:44. | :09:47. | |
competition. The measures are part of a deal between Greece and its | :09:48. | :09:50. | |
international lenders. They faced stiff criticism from the opposition, | :09:51. | :09:53. | |
and some government deputies, who said the reforms will lead to more | :09:54. | :09:56. | |
imports and damage the country's economy. | :09:57. | :10:07. | |
It's a new trading week in Asia. Let's look at how things are shaping | :10:08. | :10:13. | |
up. The next big star `` picture emerging. These other currencies: | :10:14. | :10:21. | |
I will be back shortly to talk through the papers. Stay with us. | :10:22. | :10:34. | |
Strapped`for`cash child protection agencies are acting as nothing more | :10:35. | :10:38. | |
than an emergency service, according to a children's charity. The NSPCC | :10:39. | :10:45. | |
says this is due to an increase in the number of abuse complaints | :10:46. | :10:47. | |
following the Jimmy Savile | :10:48. | :10:48. |