09/02/2016 World Business Report


09/02/2016

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The fear factor, shares in Japan are hammered with the main market

:00:17.:00:22.

sinking by five percent, safe havens like gold and the yen are soaring.

:00:23.:00:25.

Digging deeper, leaders from the world's top mining

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companies gather in South Africa as their industry faces one of its

:00:31.:00:33.

Also in the programme: How India's rural areas are hoping teaching

:00:34.:00:49.

entrepreneurial skills will lift many out of poverty.

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But first, the few financial markets that are open in Asia today

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are being punished as the investors seem to be transfixed by fear.

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In Japan the main market, the Nikkei 225 was down over percent

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Shares in Australia are also down nearly three percent.

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This follows heavy losses the night before on Wall Street

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The concern about the outlook for the global economy is become

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even more acute and now investors are dumping banking shares worldwide

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on fears they will be exposed to a fresh economic slowdown.

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Rico Hizon is in our Asia Business Hub in Singapore.

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They are celebrating a new year, but the share markets are not doing so

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well close to a bad start indeed for the year of the monkey -- so well? A

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bad start indeed. There was a change in US stocks due to persistent

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worries of a global economic slowdown. Oil prices were slumping,

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and in this panic, investors are purchasing Japanese yen as it is a

:02:20.:02:23.

safe net. The dollar slipped below 115 yen, its lowest level since late

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2014. One week ago, the yen was at about 121. It has shaken the core of

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Japanese exporters and people are worried. We are seeing that now in

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the nick a two to five -- Nikkei 225. Exporters are also in the

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dumps, down 5% today as they are hit by the strong yen against the

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dollar. As we went through those figures, the European trading day

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will start very shortly. 25 minutes to go in Japan before the close of

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the day. The Nikkei 225 down by 5.6%. We will keep you updated. You

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can find it online as well. Well as the global economy has

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slowed, and notably China with demand for commodities falling,

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one industry that has suffered The global players

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in the industry are gathered in South Africa for the biggest

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sector conference in the world and many are concerned about the future

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with further job cuts likely and This graph shows the downward path

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for prices of copper, gold The industry has had to

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dramatically cut costs. South Africa,

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the world's largest platinum and manganese producer, could lose

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as many 32,000 jobs, according to Bad news for a nation with

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unemployment above 25 percent. But one mining executive says

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there are opportunities to be had. Like everything in this modern

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world, there are always opportunities to reposition,

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consolidate. These are times when it new companies merge. To be nervous

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and new ideas, that's the model of capitalism. When it breaks, there is

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always someone to fix it. With me is Henry Hall, Senior

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Associate at Critical Resource. Mac has reasons to be cheerful, Rand

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Gold came out with very strong numbers. He is right, when the chips

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are down, there are opportunities to be had quit are absolutely. Some

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success stories in the current market seemed to have weathered the

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storm very well. There could be some potential acquisitions in this

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market, it is a buyers' market. Private equity firms certainly have

:05:30.:05:34.

considerable funds they are looking to deploy in the right types of

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assets. Even perhaps companies such as Rio Tinto who have low iron ore

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stocks may be looking as to whether they can pick up an asset or two.

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The industry has had to restructure in a big way and cause some minds to

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mothball. Investment in some areas has just stopped. They have had to

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rethink their money and where they are spending it in a dramatic way?

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Absolutely. It is a difficult time, they are under huge pressure from

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investors to cut their building times. It has meant retrenchments,

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cutting back projects and staff. I think one of the most important

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thing to look to the future and think about when prices will start

:06:29.:06:33.

to come up again. Will they be potentially damaging some of the

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relationships when they need to start back up again? It takes a lot

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of money and effort to build relationships with your stakeholders

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to get a project off the ground. Resume and leave the countries who

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have got it wrong, the smaller companies will basically go under?

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Big players can manage this kind of a crisis? Absolutely. I think it has

:06:54.:07:05.

been interesting so far, this mining slump has been going on for some

:07:06.:07:09.

time. Banks have had to be very patient with some smaller companies,

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allowing them to keep going in the hope that there will be a pickup.

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Unless some of these companies get an investor soon, it will be very

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tough for them. Thank you for your time.

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And now for the second part in our Education series looking

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at how governments are investing in the next generation

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In the past few years India's become a hub for start-ups,

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attracting billions of dollars of investment from around the world.

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Most has been focused on the country's cities.

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But with a majority of India's people living in rural areas,

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what difference would teaching entrepreneurial skills to village

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The BBC's Yogita Limaye reports from Bettiah

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Students from the local school, out on an assignment. They are scouting

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for entrepreneurs in the village. When they find one, they ask him or

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her a list of questions. How did you start your business, and what

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problems did you face? Her classmates carefully wrote down the

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shop owner's answers. I learnt a lot about what people go through to set

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up a business through this exercise, especially about how to

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overcome challenges. It was part of the lesson on entrepreneurship that

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we are being taught at school. Like this shop or the many other stores

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along here, you would find that typically in these villages most

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people are running farms or small businesses. If they were in exit is,

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they would be thought of as entrepreneurs, a concept that has an

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urban feel. A recent government campaign to encourage start-ups

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seemed very city centric. But, about 70% of Indians live in rural areas

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and believe that teaching entrepreneurial skills in these

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areas could create jobs and improve lives. That is what this

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not-for-profit organisation is trying to do. They have been taking

:09:26.:09:30.

lessons in entrepreneurship in some of the poorest states. They use a

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mix of textbooks and outdoor activities to teach students is like

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marketing and financial planning. Entrepreneurship is basically

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non-existent as a concept. But there are businesses which are

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entrepreneurs. To make people realise these are of high value can

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be related to something much bigger. It is something that is still not

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taught at most schools, either rural or urban. But in these villages, a

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vast majority of students would perhaps never have access to higher

:10:11.:10:16.

education or management school. And so, they would probably have to

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learn how to run a business as they go along.

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