24/12/2015 World Business Report

India's Prime Minister Narendra Modi is making

his first official visit to Russia and he's bought his cheque book.

We'll be assessing the deals that are expected to be signed.

Abe-Nomics get's turbo charged, Japans government approves

an $800 billion dollar budget, it's biggest in history,

In a minute we'll be getting the latest on the mounting troubles

Indian Prime Minister Narendra Modi will meet with his Russian

counterpart Vladimir Putin today in Moscow for the 16th India-Russia

The high level meeting is the centrepiece of Mr Modi's first

The two leaders are expected to sign a number of deals today,

with a particular focus on the defence and energy sectors.

Bilateral trade between the two countries currently

stands at $10bn, However within the next decade it's expected that

Russia is seeking to expand its ties with Asian nations

Last year Putin agreed that Russia would help India to build

at least ten nuclear reactors and it's thought that this

relationship could be expanded after today's bilateral talks.

India also buys the majority of its military hardware from Russia

and that is expected to be added to today with a $6 billion purchase

The two leaders shared a private dinner last night, ahead

Mr Modi tweeted this picture, with a message below saying that their

Evgeny Gavrilenkov is the Chief Economist of the Russian banking and

Thank you very much for joining us. I noticed the red carpet was rolled

out to Mr Modi. A testament of how important Indian business is for

Russia. The relationships were always very stable and important.

Largely because of the size of trade and stability. We have seen some

technical assistance from the Soviet Union to nations including India. It

is not only selling a defence, but also a mutual cooperation in

producing some other things such as helicopters, designed in Russia. I

think it is very important for India as well. Particularly for the trade

which is around $10 billion, which is not that significant. We have to

keep in mind that after the price fell, and it will stay low in the

foreseeable future, Russia becomes more competitive internationally as

a manufacturing country against a weaker currency. It'll be a rather

stable market for Russia with manufacture and defence sectors. In

some ways it is good for India to prove that it has not treated away

from Russia, after recent years it has become closer to the United

States. I think all countries try to diversify their relations.

Historically, a relationship between Soviet Russia, Soviet Union and

India has been very stable and they are very friendly. I would say they

are very pragmatic, and that is why if Russia can offer something

competitive, like with something we mentioned before, we will see more

corporation in the consumer sector with Russia imposing bans against

Turkey and food supplies in Europe, so some of those products can be

substituted from India. What other main synergies between the Russian

and Indian economies? Russia, people got used to looking at Russia as a

$2.1 trillion economy. It is around 1 trillion, due to the oil price. Is

not growing because that really is growth model was based largely on

domestic demand. Cheap oil is fuelling local and domestic demand.

Domestic demand will remain suppressed for a while because of

the suppressed consumer sector, high interest rates, low debt with high

rates, but what Russia can offer is export. It is not only to India,

with the exchange rate, Russia's GDP per capita becomes a parable with

that of China. China was the same of some of those countries in Asia. It

means that, in a broad range of segments of the economy, Russia may

be competitive, so this is the relationship. India is growing

fast, as well. Thank you very much indeed.

The Japanese government has approved the nation's biggest budget in

history with the aim of controlling the country's huge public debt while

Prime Minister Shinzo Abe is attempting to revive the economy

by using his much publicised "three economic arrows" of fiscal stimulus,

monetary easing and structural reforms.

Today's record, near $800 billion budget focuses

with fast-ageing population and more cash for the military.

Tax revenue in Japan is estimated to reach

a 25-year high next year of 476 point five billion dollars on the

The hope is that this will allow Tokyo to reduce any new borrowing.

That will come a welcome relief to a nation with such massive debts.

By March of next year Japans debt-to-GDP ratio is expected to hit

problems, is there a feeling that the president is going in the right

correction still? Yes, still very much so. The main reason is that so

far we have micro policies, in particular momentary policies

supporting the economy. It has supported the exporter 's with

weaker currency. The domestic economy is recovering gradually.

Supporting young families, providing more funds to Social Security and

that will certainly be very well received this year. And the

president is relying on tax revenue to get the country out of the issues

it has of barring. That is the important side effect of these

monetary policy. The government funds are comparatively full. There

is a mountain of public debt that has accumulated. Tax income is

flowing, in particular from the corporate side which is helping the

government. It can basically a open its purse strings a little bit

more, and with the global environment next year, may be a

little bit shaky, in particular Asia, the government must make sure

that the domestic economy is on a very solid footing next year. How

much political pressure as is put on Mr Abe? There is a feeling that

nothing has been done for the future reforms. Try to get the lagging

sectors like agriculture and the manufacturing sector up. Now the

government is focusing on the elections next summer, so a bigger

budget might be helpful with structural reforms which will be

effective for the Japan government. Good to get an update from new life

from Tokyo. That -- live. Shares in the troubled airbag

manufacturer Takata are trading sharply down today

after an eighth death in the U.S was linked to one of

the firms faulty airbag inflators. It's the first death to be linked to

the firms products since April Ashleigh Nghiem joins me now

from Singapore with the latest. Bring us up to date with

the latest on this? The driver was a teenager when he

died in July. In response to this news, three carmakers, Honda, Subaru

and Mazda recalling several 100 cars. It is a 2002, and 2006 cars.

Across the US, more than 23 million vehicles fitted

are under this massive recall campaign involving 12 carmakers and

another 7 million have been recalled in other parts of the world. It is

not being good for the company, which shares down 5% in afternoon

trade. And we heard from court documents out of Florida that Honda

may have known about this five years ago. The warning urged from unsealed

documents that have been reported to be seen by a number of news

agencies. According to minutes during a meeting at Honda's

headquarters in California back in July 2009, nearly six years ago, an

executive pressed the company on the extended to the defect. He has been

reported that he told the chief executive that he was worried about

how far the airbags spread out and asked for the company to get to the

bottom of why it did this. They have declined to comment on this. Good to

talk to on the. That that -- good to talk to you on this. For generations

they have done it for free. New plans to make money of seaweed,

means the old ways of collecting from the beach may become a thing of

the past. And age-old tradition, harvesting seaweed in the west of

Ireland. Seaweed he is used as a fertiliser to grow crops, but the

man from the health and cosmetic industry is growing. We have been

doing this for years and years. We have been doing this for 30 years or

so. Harvesting the seaweed for potato. All of the people in the

area, and the surrounding areas, they collect a lot of seaweed for

potato. It is a natural manure. The health properties of seaweed both in

food and medicine has been well known that from ancient times. The

Irish government has spotted an opportunity and is starting a new

licensing to tap into a new revenue source. Local industries are furious

that they will be cut out. It is a disgrace to the people on the West

Coast. Some people use it for selling and commercial use. Is that

right is going to be taken away, you have no rights. The Irish state

legally owns the shore and everything on it, including the

seaweed. But the tradition has been that that is why they collect it for

free. The legal position for the collection of seaweed is proving a

little bit more complicated. Is now imagining a challenge with the

Attorney General -- it is. The use has become something of a legal

tangle. Many fear that the company is paying big money will be the

winners. Facebook's effort to provide Indians

with free access to a limited number of internet

services has run into trouble. India's telecoms regulator has asked

the mobile network that partnered with the US firm to put their

Free Basics offer on hold. Critics of Facebooks 'Free Basics'

service say it runs contrary to net Malicious software has been found on

the Hyatt's computers. It is asking customers to carefully check their

payment card statements. Hyatt said if any -- does not know if any

customers' data has been stolen. It is a busy day for the markets in

some areas, but in others, quiet. In Asia, a mixed bag. These are the

closing market figures for the US overnight. In terms of European

indices, we will just have to guess. That is the latest business from me

and the team. Thank you for watching. Goodbye.

Train services across the UK will be hit by engineering works