12/11/2015 World Business Report


12/11/2015

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Those are the latest headlines from BBC World News.

:00:00.:00:00.

Now for the latest financial news with Sally

:00:00.:00:00.

Indian Prime Minister Narendra Modi heads for the UK, with billions

:00:07.:00:17.

But is Britain in danger of missing out on India's economic rise?

:00:18.:00:26.

Plus: The longest recession in two decades, but there are signs of

:00:27.:00:29.

Welcome to World Business Report, I'm Sally Bundock.

:00:30.:00:42.

Also coming up: The Aussie dollar surges,

:00:43.:00:45.

We will have all the details from Asia.

:00:46.:00:48.

A historic opportunity, that is what British Prime Minister

:00:49.:00:54.

David Cameron is calling a visit by his Indian counterpart

:00:55.:00:57.

Narendra Modi, who arrives in the UK in a few hours' time.

:00:58.:01:00.

With billions of dollars of trade deals expected to be announced,

:01:01.:01:03.

India's growing importance in the global economy means there is

:01:04.:01:05.

India's economy is expected to grow at more than 7% this year,

:01:06.:01:19.

probably outstripping the growth rate in China.

:01:20.:01:21.

It is on track, say some experts, to become

:01:22.:01:23.

Long before that, it will certainly have the biggest population.

:01:24.:01:28.

That could happen within seven years, say the United Nations.

:01:29.:01:31.

So is Britain doing enough to build on its economic ties?

:01:32.:01:34.

From being one of India's top trading partners, the

:01:35.:01:42.

Trade between the UK and India fell almost 10% in

:01:43.:01:46.

the last financial year, despite a pledge by David Cameron double it.

:01:47.:01:49.

What could be more worrying for the future, the number

:01:50.:01:52.

of Indian students choosing to study in the UK has slumped

:01:53.:01:54.

Teaching his moves at the University of Edinburgh.

:01:55.:02:17.

Indian superstar, Shah Rukh Khan, was awarded an honourary doctorate

:02:18.:02:23.

from the University of Edinburgh last month, drawing India's

:02:24.:02:25.

attention to British University which really

:02:26.:02:29.

The number of Indian students going to the UK for higher education has

:02:30.:02:38.

And even many of those who did study there are not happy.

:02:39.:02:44.

This woman is a physiotherapist who specialises in

:02:45.:02:48.

breathing disorders, and borrowed nearly $18,000 to study in

:02:49.:02:50.

But because of Britain's visa policies, she had to return to India

:02:51.:02:56.

Because of my short time of student visa, I didn't get work

:02:57.:03:06.

experience, so I had come back here.

:03:07.:03:08.

After I came here, I applied for jobs in Mumbai, but

:03:09.:03:11.

when they called me for interviews, the only question was how much

:03:12.:03:15.

experience do you have in this field.

:03:16.:03:17.

While the UK only allows students to stay

:03:18.:03:19.

for four months after they finish their course to look for a job,

:03:20.:03:22.

In the US, poststudy work visas can be for a period of one or two

:03:23.:03:31.

Australia allows two years, while in Canada, students get to stay

:03:32.:03:37.

for up to three years once they finish their degree.

:03:38.:03:40.

For students here in India, the UK has been

:03:41.:03:42.

the most popular destination for higher studies after America.

:03:43.:03:50.

That is because of the quality of education, and also because it

:03:51.:03:53.

is a chance to study in English, a language most Indian

:03:54.:03:56.

Because of the changes in visa policies,

:03:57.:03:58.

many now think that a British degree is not worth the investment.

:03:59.:04:02.

When British Prime Minister David Cameron visited India two years ago,

:04:03.:04:05.

he tried to woo Indian students back, but it doesn't seem to have

:04:06.:04:08.

I'm not really sure we understand why numbers have fallen.

:04:09.:04:15.

I think there have been some misperceptions about our offer, and

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That's why I want to say, today, that there is no limit on the number

:04:20.:04:27.

of Indian students who can come to study in the UK at our great

:04:28.:04:30.

universities, and there is no limit on the number of Indian students who

:04:31.:04:34.

can stay on and work in the UK, provided they get

:04:35.:04:36.

That is a message the British government wants to reach youngsters

:04:37.:04:40.

like these, who are still contemplating studying in the UK.

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But it might not be enough to convince them,

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and that is a lesson Britain seems to be learning the hard way.

:04:46.:04:53.

You can be sure here on the BBC there will be a lot more on his

:04:54.:04:58.

visit as he touches down and goes about the various events here in the

:04:59.:05:00.

UK. If you need to find work, it would

:05:01.:05:01.

seem Australia is the place to be. The latest jobless data shows they

:05:02.:05:04.

have seen the best yearly gain Sharanjit Leyl is in our Asia

:05:05.:05:07.

business hub. Nice to see you. It all sounds like

:05:08.:05:18.

good news, but it does say wages are going down, so it is a bit of a

:05:19.:05:24.

mixed picture, isn't it? It is a mixed picture to some extent but

:05:25.:05:27.

what is really interesting is that these numbers basically beat all

:05:28.:05:32.

expectations. In October we saw that jobless rate falling, sharply. A

:05:33.:05:39.

five-month low. 5.9% from 6.2% the month earlier. The Australian dollar

:05:40.:05:43.

gaining almost 1% on that news and is on track for its best one-day

:05:44.:05:48.

gain in a month. The economy in fact adding over 58,000 jobs in October,

:05:49.:05:55.

that is almost 4000 more than consensus forecast ensures

:05:56.:06:00.

astonishing strength and may mean a cut in interest rates is less likely

:06:01.:06:03.

in Australia, all producing something of a boost to the

:06:04.:06:08.

administration of the country's new Prime Minister Malcom Turnbull. Of

:06:09.:06:11.

course it is a mixed picture because we are seeing a slowdown in China as

:06:12.:06:15.

well, that is Australia's largest trading partner. That has caused a

:06:16.:06:19.

lot of nervousness over the last few months in Australia. We saw the

:06:20.:06:23.

economy slowing in the three months to the end of June. The GDP that

:06:24.:06:28.

expanding just 0.2%. But of course this News is a spot of optimism for

:06:29.:06:30.

the economy, a much needed boost. To Russia, now,

:06:31.:06:34.

where growth figures out later are expected to show its economy shrank

:06:35.:06:36.

4.4% in the three months to That wouldn't be quite as bad

:06:37.:06:39.

as the previous quarter. Still, Russia is on track

:06:40.:06:43.

for its longest recession in two decades, dragged down

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by the slump in crude oil prices, Financial markets, though, are

:06:46.:06:48.

starting to bet on an improvement, with Russian shares and the rouble

:06:49.:06:52.

both up sharply in recent months. Lilit Gevorgyan, senior economist,

:06:53.:06:55.

IHS Global Insight. You are a regular on the show, it is

:06:56.:07:17.

nice to see you again. So the growth numbers again are going to be pretty

:07:18.:07:21.

grim. But actually not as bad as previous quarters and a year before.

:07:22.:07:26.

Well, only marginally better. And I think what is quite symbolic is how

:07:27.:07:32.

the Russian Ministry of economy has been so keen to announce this

:07:33.:07:38.

positive news even before the data came out, saying that they believe

:07:39.:07:41.

that they have reached the bottom. And from now on it is going to be

:07:42.:07:46.

much better, and so they will be on the track of recovery. However, I

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have to emphasise that the recent high frequency data is not really

:07:50.:07:55.

pointing to much easing in recession. A hat there will be some

:07:56.:08:02.

deceleration. -- perhaps there will be some deceleration, however I

:08:03.:08:05.

don't think there will be quite quick recovery. So it is going to be

:08:06.:08:10.

long and painful recovery. Absolutely, I think it will be a

:08:11.:08:15.

protracted, very slow recovery. Mainly because of the external

:08:16.:08:19.

reasons. I don't think there will be a quick recovery in oil prices, and

:08:20.:08:23.

I think domestically the confidence is really hurt. So how is the

:08:24.:08:28.

average person in Russia coping with all of this? Because sanctions are

:08:29.:08:32.

still in place, financial sanctions in particular are really hitting the

:08:33.:08:35.

economy hard. That is not going to change any time soon. Again if we

:08:36.:08:41.

look at data, it shows that inflation that was as high as 17% in

:08:42.:08:46.

December last year, it really eroded. Real disposable income of

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houses eroded. The middle class could use the travelling abroad, but

:08:53.:08:56.

with the rouble significantly weakened, this has become very

:08:57.:09:06.

expensive, so many lament the loss of those days when they could go

:09:07.:09:10.

abroad. If you look at the broader population, you see poverty levels

:09:11.:09:14.

have started creeping up again, and this is not actually good news for

:09:15.:09:17.

President Putin because one of his achievements during his long years

:09:18.:09:21.

of residency was that he brought down poverty levels by 50% --

:09:22.:09:27.

presidency. So it is really hurting. They have seen wages dropping. They

:09:28.:09:31.

have seen their hours, working hours getting longer. So I think for the

:09:32.:09:40.

Russian... For Russians, they have definitely felt the impact on their

:09:41.:09:44.

living standards. Thank you, always good to get the latest from you. And

:09:45.:09:49.

of course, when we get the official growth figures we shall update you.

:09:50.:09:57.

Now, we've got to talk about that incredible Singles Date yesterday.

:09:58.:10:02.

Chinese e-commerce giant Alibaba sold a record $14.3

:10:03.:10:04.

billion worth of goods on Thursday, known as Singles Day.

:10:05.:10:07.

The mock festival in honour of people not

:10:08.:10:08.

in a relationship has turned 11 November into a huge shopping binge,

:10:09.:10:12.

that outstrips the USA's Black Friday and Cyber Monday combined.

:10:13.:10:14.

Alibaba says its sales were up 60% on last year.

:10:15.:10:26.

Financial markets in Asia are mixed. Japan and Hong Kong up a little. The

:10:27.:10:32.

Australian dollar rising significantly off the back of those

:10:33.:10:35.

much better than expect the jobless figures. That's all from me for now.

:10:36.:10:40.

I will see you in a few minutes. We will look at some more business

:10:41.:10:44.

stories in the papers. See you then.

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