Browse content similar to 17/02/2016. Check below for episodes and series from the same categories and more!
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My autocue has disappeared so I don't know who is doing World | :00:00. | :00:07. | |
Business Report, at some new guy. While those fragile talks | :00:08. | :00:17. | |
between London and Brussels continues over an in-or-out Europe | :00:18. | :00:19. | |
referendum, we are taking a look at what a Brexit would mean for one of | :00:20. | :00:22. | |
the UK's most important industries. And we are taking a look | :00:23. | :00:30. | |
at the latest moves by Beijing to try and reignite | :00:31. | :00:32. | |
the world's second-largest economy, and the impact that is having | :00:33. | :00:35. | |
on investors all around the world. In a minute we will have the | :00:36. | :00:45. | |
latest from the Singapore Airshow. Gordon in my ear tells me I have | :00:46. | :01:03. | |
eight minutes and 58 seconds. There is the deal, it is like Christmas | :01:04. | :01:08. | |
all over again. You give me that and I will give you a fascinating and | :01:09. | :01:10. | |
exciting snapshot of all the latest in the world of business and money. | :01:11. | :01:13. | |
Later today, European Council President Donald Tusk publishes | :01:14. | :01:15. | |
a final draft report to national leaders on a potential deal with the | :01:16. | :01:18. | |
A two-day EU summit starts in Brussels on Thursday, | :01:19. | :01:28. | |
during which a final agreement is expected to be struck. | :01:29. | :01:31. | |
If the talks this week in Brussels don't go well, the UK could well be | :01:32. | :01:35. | |
So what could the cost of an exit be to the City of London? | :01:36. | :01:41. | |
Andy Verity went to the Square Mile to find out. | :01:42. | :01:54. | |
Those in the city who want Britain to leave the EU say that warnings | :01:55. | :02:03. | |
over 100,000. Job losses are scaremongering. While red tape from | :02:04. | :02:07. | |
Brussels is strangling their business. It is just unnecessarily | :02:08. | :02:12. | |
burdening UK businesses and it is 100% of UK businesses which get | :02:13. | :02:17. | |
impacted when actually only 5% export to the European Union. So why | :02:18. | :02:21. | |
should the rest of us suffer? You take a country like Switzerland, it | :02:22. | :02:24. | |
is only the businesses that export to the EU that have to comply with | :02:25. | :02:28. | |
the rules and regulations. More than 2 million people work here in | :02:29. | :02:31. | |
financial services, and to generate the trade surplus for Britain of | :02:32. | :02:35. | |
around ?70 billion. Why put that at risk, say opponents of a Brexit? Why | :02:36. | :02:42. | |
not keep the status quo? But those in favour of a Brexit say that you | :02:43. | :02:45. | |
could keep all those benefits by signing a new free trade deal with | :02:46. | :02:49. | |
the rest of Europe and you would gain the big prize, control over | :02:50. | :02:53. | |
immigration. But most in the city, especially big businesses, what | :02:54. | :02:57. | |
Britain to stay. Leaving the EU would be a leap into the unknown. We | :02:58. | :03:01. | |
don't know what the relationship between Britain and the rest of | :03:02. | :03:04. | |
Europe would be. We would have a period of some years of uncertainty, | :03:05. | :03:09. | |
and in uncertainty then you would get less investment. People would be | :03:10. | :03:12. | |
reluctant to take decisions. I don't think anybody is going to rush to | :03:13. | :03:17. | |
leave, but visitors would then state written will not be in the European | :03:18. | :03:22. | |
Union. The billions of pounds that have modernised the city have come | :03:23. | :03:26. | |
to London since the UK joined the European Union more than 40 years | :03:27. | :03:30. | |
ago. Those in favour of a Brexit would say that is in spite of the | :03:31. | :03:34. | |
European Union. Those against would say it is because of it. Until we | :03:35. | :03:37. | |
have the vote, we won't know who is right. | :03:38. | :03:47. | |
We will keep across that until we are blue in the face, I'm sure. | :03:48. | :03:50. | |
China is going through a difficult transition from rigid socialism to | :03:51. | :03:53. | |
It is now one of the world's fastest-growing | :03:54. | :03:56. | |
economies, a leading exporter and major overseas investor. | :03:57. | :03:58. | |
China's economy grew by 6.9% in 2015, compared with 7.3% | :03:59. | :04:00. | |
a year earlier, marking its slowest growth in a quarter of a century. | :04:01. | :04:04. | |
The government is trying to shift the economy to one driven | :04:05. | :04:06. | |
by consumption and services, rather than manufacturing, exports, and | :04:07. | :04:09. | |
But managing that transition has been challenging. | :04:10. | :04:43. | |
There are doubts about whether Chinese data scan be trusted. | :04:44. | :04:45. | |
Critics say that real growth figures may be much weaker. | :04:46. | :04:58. | |
Meanwhile, worries about the devaluing currency persist, | :04:59. | :05:00. | |
even though the yuan strengthened this week, thanks to China's central | :05:01. | :05:03. | |
bank governor breaking his silence on currency policy. | :05:04. | :05:15. | |
Let's find out more. She is in the house, I dragged her in. | :05:16. | :05:20. | |
Linda Yueh, professor at London Business School and Fellow | :05:21. | :05:22. | |
So the big boss of China's Central Bank broke his silence. Explain to | :05:23. | :05:29. | |
the uninitiated what is going on with the currency. A sickly the | :05:30. | :05:35. | |
central bank governor hadn't spoken about monetary policy for months but | :05:36. | :05:38. | |
gave an interview to a Chinese weekly magazine and what he said was | :05:39. | :05:43. | |
the currency is basically stable. Either way, China used to drive half | :05:44. | :05:49. | |
of global growth, but we account a quarter of the world's population, | :05:50. | :05:53. | |
and now look. We drive a quarter of global growth, so basically this is | :05:54. | :05:58. | |
about right, this is a hard landing. So that has given | :05:59. | :06:02. | |
confidence that China has responded on the big shifts that you have | :06:03. | :06:10. | |
described. On the back of that, the yuan increased in value on other | :06:11. | :06:14. | |
currencies around the world. So a weaker currency is good if you are | :06:15. | :06:18. | |
exporting a lot of stuff, right? So all the stuff that Chinese factories | :06:19. | :06:22. | |
make an ship off, if the currency is lower in value that is cheaper for | :06:23. | :06:25. | |
all of us around the world to buy Chinese stuff, so we buy a lot of | :06:26. | :06:30. | |
it, right? But if they are trying to shift its economy, they want more | :06:31. | :06:35. | |
Chinese people, middle-class etc to spend money in the economy, it is | :06:36. | :06:39. | |
better to have a higher value currency, isn't it? It is, yes. That | :06:40. | :06:44. | |
means by the same reasoning that Chinese people will find it cheaper | :06:45. | :06:47. | |
to buy stuff from the rest of the world because their currency, the | :06:48. | :06:52. | |
yuan, goes further. That is why at the moment, the long-term uncertain | :06:53. | :06:55. | |
value of the Chinese currency is what is contributing to some of this | :06:56. | :07:00. | |
volatility. Because unlike other major economies, China is not a | :07:01. | :07:04. | |
market economy. You can't just look at, for instance, what the interest | :07:05. | :07:08. | |
rate is or how things look for decades, how financial markets | :07:09. | :07:12. | |
traded, because financial markets are still largely closed. It is that | :07:13. | :07:15. | |
uncertainty around the value of the currency which is contributing to | :07:16. | :07:20. | |
this global volatility. But let me just add, I am not sure entirely if | :07:21. | :07:23. | |
I agree with the Governor's assessment on this but he said the | :07:24. | :07:27. | |
central bank is neither God nor a magician when it comes to | :07:28. | :07:33. | |
uncertainty. And so I think that means we just have to wait a little | :07:34. | :07:37. | |
while longer to see whether Chinese currency settles but it is | :07:38. | :07:43. | |
undoubtedly why we see so much turmoil in global markets these | :07:44. | :07:46. | |
days. And you will come back and take us through the papers. For you! | :07:47. | :07:54. | |
Thank you and great to see you. -- poor you! | :07:55. | :07:55. | |
Now, Asia's biggest commercial aerospace and defence airshow is | :07:56. | :07:57. | |
in full swing in Singapore, and for the latest, Karishma Vaswani | :07:58. | :08:00. | |
We are talking about China and of course some of the struggles. Now | :08:01. | :08:14. | |
China's economy may be slowing. One thing that is not necessarily | :08:15. | :08:17. | |
slowing other Chinese airlines. They are buying a lot of planes, right? | :08:18. | :08:24. | |
-- are the Chinese airlines. That's absolutely right. I am coming to you | :08:25. | :08:27. | |
one day two of the Singapore airshow. This is when the wheeling | :08:28. | :08:31. | |
and dealing gets under way and we have seen some deal signed. China's | :08:32. | :08:37. | |
OK Airlines has picked up 12 737 Boeing aeroplanes, that is for a | :08:38. | :08:45. | |
pricetag of $1.3 billion. Still nowhere near the figures and numbers | :08:46. | :08:49. | |
we have seen at previous airshows in Singapore in 2014, this airshow sold | :08:50. | :08:56. | |
deals worth $30 billion. So the niggling concerns about global | :08:57. | :08:59. | |
economic uncertainty, what you were talking about a few minutes ago, | :09:00. | :09:03. | |
that is certainly a bit of a theme here at the airshow but I am large | :09:04. | :09:07. | |
aircraft manufacturers are feeling extremely confident about the | :09:08. | :09:11. | |
future. We have heard from Boeing saying they are going to sell almost | :09:12. | :09:15. | |
4000 planes in Asia over the next 20 years, worth $550 million. -- 500 | :09:16. | :09:29. | |
$50 billion. And 1500 planes worth $70 billion. I know we are going to | :09:30. | :09:32. | |
get more from you throughout the rest of the day. I am very jealous | :09:33. | :09:34. | |
you are there. $550 billion. The Nikkei has been up, down and up. | :09:35. | :09:52. | |
It is down over 2.5% and Brent crude slightly up but still a barrel of | :09:53. | :09:54. | |
oil worth 32 a barrel. Don't forget, | :09:55. | :10:01. | |
you can get in touch with me | :10:02. | :10:05. |