11/01/2016 World Business Report


11/01/2016

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Now, for the latest financial news with Sally

:00:00.:00:00.

Fasten your seatbelts - a new trading week has begun, with shares

:00:00.:00:21.

We'll be live in Singapore with the latest.

:00:22.:00:30.

Staying in fifth gear after a record breaking year, how will the

:00:31.:00:33.

We're at the Detroit Auto Show, where GM has done the unthinkable,

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unveiling a chinese made car to American consumers.

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Hello, and welcome to World Business Report.

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Also in the programme, we'll hear from a factory owner

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in China about how slowing trade is affecting his business.

:00:57.:00:59.

It's day one of a new trading week and all eyes are on China's stock

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At the start of day shares in Shanghai fell 2%, following weak

:01:05.:01:08.

inflation data over the weekend showing consumer prices edged up

:01:09.:01:11.

Sharanjit Leyl is in our Asia business hub in Singapore for us.

:01:12.:01:23.

Nice to see you, Sharan. So, what's going on? Well, the benchmark index

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in China is still low, down 2.5% right now, as you mentioned, Celek,

:01:37.:01:45.

opening down 2%, reversing Friday's recovery -- Sally. The report did

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not tell investors what they didn't already know, that China's economy

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is slowing. There are overwhelming concerns about that. We saw the

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other data, Factory Gate Prices, falling down mine %. It shows

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deflation risks remain in the world's second largest economy. They

:02:09.:02:14.

are rushing to sell shares and continue to do so. Perhaps also more

:02:15.:02:21.

evidence of the Chinese authorities flip-flopping after the currency,

:02:22.:02:25.

the yuan, strength and largely against the dollar following the

:02:26.:02:29.

central bank moved to set a firm at midpoint reference rate for the

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second session in a row. Previously, they were focused on depreciating

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the currency in what many analysts thought was the attempt to boost

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Chinese exports and help the slowing economy. Sally, if you were to cast

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your mind back to the same time one week ago, that is when Chinese

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markets were suspended from trade for the very first time after the

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regulator had implemented those new circuit breaker rules to prevent the

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market from falling over a certain amount. Now, we know that these

:03:00.:03:02.

markets were suspended again later in the week, which caused more

:03:03.:03:08.

dramatic plunges for global markets as well. China has now suspended the

:03:09.:03:12.

use of that circuit breaker tool on Friday, in a move which has

:03:13.:03:17.

reassured traders, but has prom to criticism over the Chinese

:03:18.:03:22.

authorities' policy measures to control their markets. We will watch

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this space. Thank you so much, Sharan. The Japanese market is

:03:29.:03:29.

closed today for a public holiday. That's the picture on the financial

:03:30.:03:32.

markets, but how bad is the Our team there has been talking to

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a factory owner in Mr Yuan says he's been forced to let

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his staff go after losing tens of thousands of dollars

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in orders over the past year. The US car industry has just

:03:45.:05:40.

finished a record year with sales So, what will it do to keep

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the momentum going? Well, at one of the first car events

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of the year, the Detroit Auto Show, General Motors is doing

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the unthinkable, unveiling But US auto unions are describing

:05:57.:05:58.

the Buick Envision as a slap in the face to taxpayers, who bailed out GM

:05:59.:06:03.

following the financial crisis. Michelle Fleury was at the launch

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in Detroit. This stunning Buick concept. A grand

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entrance. General Motors knows how to make a splash. And here is a clue

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to the night's other surprise... Several of our friends and business

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partners from China are here tonight. We know how big a market

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China is for US carmakers but what about the other way around? GM is

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the first of the Detroit Three to bring a Chinese built car. The Buick

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Envision hits US in summer. The manager of GM defended the decision

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to keep manufacture in China. The strategy we have in the company is

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to design, to build where we sell, that is the general strategy. In

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this case there was no economics to do it here, and as you saw, it is

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doing well in China. How many cars do you hope to sell in the US versus

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how many in China? China will be much more significant. The band may

:07:18.:07:27.

have been called the Accidentals but GM wasn't making a mistake importing

:07:28.:07:33.

a Chinese made car. The auto analyst Michael Dunn explains why. Back in

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2009 with the crisis, many brands went away. They held onto Buick

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because of the profitability China and the potential to grow. So, in

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our way, US consumers, global consumers, can thank China for a

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prosperous Buick today -- in a way. For many here in the birthplace of

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America's car industry, it is a slap in the face. Would you buy a Chinese

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made car? Probably not. What about if it is General Motors? Note! It

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was built in the US and they are shipping the cheap cars from China

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to Detroit which is not right -- no! Chinese made? Yeah. - see a problem.

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What is remarkable is time in a short period of time is capable of

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building a car that can compete along those made here in Motor

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City. The question now is how it will sit with Americans, especially

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right here in the cradle of the US auto industry -- I don't see a

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problem. We will have more from the shell as the week progresses there.

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-- we will have more from there as the week progresses.

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The latest Star Wars film has broken records in China, taking fifty-three

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million dollars in ticket sales on its first weekend.

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"Star Wars: The Force Awakens" has now passed the $1 billion mark

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in global ticket sales faster than any other film.

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Chinese state media say authorities have arrested five more officials

:08:59.:09:01.

of a company involved in a deadly landslide

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The government has blamed breaches in construction safety standards

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for the disaster in the southern city of Shenzhen.

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It takes the total number of arrests to 16.

:09:10.:09:13.

A major shareholder in Royal Dutch Shell,

:09:14.:09:15.

Standard Life Investment, says it will oppose the oil company's

:09:16.:09:17.

It says weak oil prices and risks for BG in Brazil could

:09:18.:09:21.

make the deal "value destructive" for Shell shareholders.

:09:22.:09:23.

Shell says it remains confident of winning the vote.

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A quick look at the market. We've mention Japan's closed, and we've

:09:37.:09:43.

mentioned how Shanghai is performing. Just to mention, the

:09:44.:09:51.

Hong Kong Yuan Rate has jumped 13%, the highest on record, in an

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indication of the credit crunch following the bank of China's

:09:55.:09:57.

intervention to try to stabilise markets in China. You are up to

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date, I will see you soon -- Bank of China.

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