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As the deadline for bids on the Online giant looms, the owner of | :00:00. | :00:24. | |
We'll analyse today's inflation figures with an expert. | :00:25. | :00:37. | |
Also in the programmme: Australia tries to sell more than just | :00:38. | :00:44. | |
commodities and beach holidays to the Chinese. | :00:45. | :00:50. | |
The owner of Britain's Daily Mail newspaper is considering a bid | :00:51. | :00:55. | |
for the struggling US internet company Yahoo. | :00:56. | :00:57. | |
The Wall Street Journal says the Daily Mail and General Trust is | :00:58. | :01:00. | |
in talks with private equity firms about an offer. | :01:01. | :01:02. | |
Yahoo is under pressure from shareholders to turn itself | :01:03. | :01:05. | |
around and just weeks ago invited interested parties to make an offer | :01:06. | :01:08. | |
and first-round bids for the firm's main web assets are due today. | :01:09. | :01:11. | |
So far Google and the US telecoms firm Verizon are said to be | :01:12. | :01:14. | |
circling and now of course the Daily Mail is added to that list. | :01:15. | :01:27. | |
For Yahoo's boss Marissa Mayer, it's an admission she is losing her | :01:28. | :01:30. | |
battle to turn around the struggling tech giant. | :01:31. | :01:33. | |
There were high hopes when she was hired as Chief Executive in 2012 | :01:34. | :01:36. | |
that she would revive Yahoo - that had just churned through several | :01:37. | :01:39. | |
Mayer was viewed as one of the biggest power players in Silicon | :01:40. | :01:44. | |
Valley having had a rapid rise to the top management at Google. | :01:45. | :01:49. | |
But three years after her appointment and Yahoo was | :01:50. | :01:51. | |
still marred by slowing growth and internal dissent. | :01:52. | :01:56. | |
It's left it vulnerable to activist investors, | :01:57. | :01:57. | |
like shareholder Starboard Value, demanding the board be completely | :01:58. | :01:59. | |
With me is Simon Griffiths, partner at Irwin Mitchell. | :02:00. | :02:17. | |
That morning. It is very interesting. Tell us your thoughts | :02:18. | :02:26. | |
on the Daily Mail getting involved. It is great to have a British | :02:27. | :02:29. | |
company interested in getting involved because Britain have no | :02:30. | :02:36. | |
large global Internet businesses. However, I think with the Daily | :02:37. | :02:40. | |
Mail's involvement, private equity houses will take Yahoo's core | :02:41. | :02:48. | |
business and the Daily Mail will take the content and media. When we | :02:49. | :02:53. | |
look at the market cap of the Daily Mail compared with Yahoo, we can see | :02:54. | :03:00. | |
it would need a financial helping hand. Correct. The Daily Mail around | :03:01. | :03:13. | |
?2.5 million, Yahoo's ?34 billion. However, core assets are worth | :03:14. | :03:18. | |
around $6,000,000,000-$8,000,000,000. It is | :03:19. | :03:24. | |
hard to tell because most of the value is the stake in Ali Baa-Baas, | :03:25. | :03:28. | |
the Chinese Internet company and the stake in Yahoo Japan, only part of | :03:29. | :03:35. | |
the value of Yahoo comes from its core assets -- $6 billion - $8 | :03:36. | :03:40. | |
billion. Talk us through Horizon and Google. It is all speculation. No | :03:41. | :03:44. | |
formal offers at all. Your thoughts on those companies? Horizon is a | :03:45. | :03:52. | |
large US telecoms business, whose CEO has a vision of becoming a | :03:53. | :03:57. | |
global tech business. Acquiring Yahoo will help in his vision to get | :03:58. | :04:03. | |
there. Google doesn't need Yahoo. It doesn't make much difference. Of | :04:04. | :04:11. | |
course if companies are looking at Yahoo, Google has had a look, but it | :04:12. | :04:15. | |
would be a headache for Google. It would be a lot of hassle with | :04:16. | :04:20. | |
competition authorities might well refusing it. Marissa Mayer joined | :04:21. | :04:26. | |
the company when she was young and six months pregnant. There was | :04:27. | :04:30. | |
controversy when she started. However, she seemed extremely | :04:31. | :04:34. | |
determined. A woman on a mission. She has not fulfilled that mission. | :04:35. | :04:41. | |
Maybe. Let's hope she is still a determined business leader after | :04:42. | :04:44. | |
this Yahoo period of life is over. It was once a glorious company with | :04:45. | :04:51. | |
market capital over $150 billion, now $35 billion. It is not her | :04:52. | :04:57. | |
fault. Thank you so much for coming in. We shall keep you up to date | :04:58. | :05:01. | |
with every twist and turn as far as that story is concerned. | :05:02. | :05:03. | |
It's the biggest trade delegation ever from Australia to China. | :05:04. | :05:06. | |
For all of this week, 1,000 business representatives | :05:07. | :05:08. | |
and the country's trade minister are touring China to boost ties | :05:09. | :05:11. | |
Bilateral trade stood at just under 100 billion USD last year. | :05:12. | :05:17. | |
And it's especially crucial for Australia because China is | :05:18. | :05:19. | |
its biggest trading partner in both exports and imports. | :05:20. | :05:22. | |
How to sell Australia to the Chinese? It looks like this at the | :05:23. | :05:38. | |
moment, and hunky man holding shrimp. It works. Plenty of Chinese | :05:39. | :05:45. | |
holiday in Australia, and plenty send children to be educated. This | :05:46. | :05:50. | |
trade mission, it is a massive effort, is aimed at broadening that | :05:51. | :05:56. | |
relationship. What they are trying to do is get Chinese to buy services | :05:57. | :06:01. | |
from Australia. We have leaders from 1000 businesses coming in this | :06:02. | :06:05. | |
delegation, senior politicians, going to eight Chinese cities in | :06:06. | :06:09. | |
five days, selling tourism, education and agribusiness. What | :06:10. | :06:17. | |
does it say about the relationship? It has changed a lot. The Chinese | :06:18. | :06:21. | |
buying everything in the ground in Australia is over. This is about | :06:22. | :06:26. | |
selling far more services to the people of China from Australia. It | :06:27. | :06:31. | |
is very important. It is no underestimation to say the future of | :06:32. | :06:35. | |
the Australian economy depends in part on its relationship in trade | :06:36. | :06:38. | |
with China. How much will they raise? Last time in 2014 the | :06:39. | :06:44. | |
Australian government said it led to the injection of $3.5 billion US. | :06:45. | :06:50. | |
They want the same or more this time around. That was Robin Brant in | :06:51. | :06:57. | |
Shanghai for us. Let's stay with China. Everyone wants to know how | :06:58. | :07:02. | |
the Chinese economy is doing. This week we have loads of economic news. | :07:03. | :07:05. | |
Today, it is inflation. Chinese inflation for appears to be | :07:06. | :07:07. | |
holding steady, with the consumer price index again coming in | :07:08. | :07:10. | |
at 2.3% compared with a year ago. Producer prices fell 4.3% in March | :07:11. | :07:13. | |
also compared to a year earlier. That's slightly higher than | :07:14. | :07:16. | |
for the previous month. What does all of it mean? We speak | :07:17. | :07:29. | |
with an independent analyst who can make sense of it. Thank you for | :07:30. | :07:33. | |
being on the programme. Talk us through these numbers today. Does it | :07:34. | :07:39. | |
tell us that prices are rising or does it tell us that the fears | :07:40. | :07:44. | |
around deflation have gone away? No, I think it tells us very little. | :07:45. | :07:51. | |
What you have to remember is even at 2.3% below the central bank target | :07:52. | :07:59. | |
of 3% CPI, this is the 49th month of falling producer prices. After all | :08:00. | :08:03. | |
of the stimulus earlier in the year the Chinese economy is at best | :08:04. | :08:06. | |
treading water. It is still effectively weakening. Is the | :08:07. | :08:13. | |
deflation threat still there? I think it certainly is. This is not | :08:14. | :08:16. | |
going away any time soon. The government is unable to bring about | :08:17. | :08:22. | |
meaningful reform that will change the Chinese economy long-term. | :08:23. | :08:26. | |
Measures instituted are relatively short-term. Papering over short-term | :08:27. | :08:32. | |
problems. Do you think the central bank will move interest rates soon | :08:33. | :08:37. | |
in your view? It has been cutting rates recently. This is the real | :08:38. | :08:43. | |
problem. The central bank is in a horrible position, juggling many | :08:44. | :08:48. | |
things, one being the inflation picture, the other being liquidity | :08:49. | :08:50. | |
requirements in the system and managing the currency as well. The | :08:51. | :08:57. | |
feeling is they are doing better than potentially forecast in terms | :08:58. | :09:02. | |
of inflation numbers, so maybe they won't rush to cut rates as | :09:03. | :09:05. | |
aggressively as people thought a couple of weeks ago. But the numbers | :09:06. | :09:09. | |
are changing monthly and the outlook is still weak. If it is not direct | :09:10. | :09:15. | |
rate cuts, it will be listening to cover over many debt problems. We | :09:16. | :09:19. | |
have to leave it there but we appreciate your time. Thank you for | :09:20. | :09:23. | |
your perspective on the Chinese economy. Let's squeeze in some other | :09:24. | :09:27. | |
stories, starting with Japan. It has sought to | :09:28. | :09:28. | |
reassure investors that it's willing to intervene | :09:29. | :09:31. | |
in the currency markets. The move follows a recent pledge | :09:32. | :09:32. | |
by the G20 nations to consult on foreign exchange markets and avoid | :09:33. | :09:36. | |
competitive currency devaluations. The yen has gained more than 10% | :09:37. | :09:38. | |
against dollar this year, which worries the government because | :09:39. | :09:40. | |
it decreases export earnings and Tatar Steel is beginning the formal | :09:41. | :09:43. | |
process of selling its loss-making UK plants, inviting interested | :09:44. | :09:47. | |
bidders to submit their offers. So far, | :09:48. | :09:49. | |
the only company to have publicly expressed an interest is Liberty | :09:50. | :09:51. | |
Steel, owned by Sanjeev Gupta. Thousands of workers in England | :09:52. | :09:59. | |
and Wales risk losing their jobs So, let's look at markets. Inflation | :10:00. | :10:17. | |
data in China did not wobble markets much. As you can see, Japan is down | :10:18. | :10:22. | |
a lot with the yen strengthening daily versus the US dollar, hitting | :10:23. | :10:29. | |
sentiment. Hong Kong is up half a percent, as I mentioned. Chinese | :10:30. | :10:33. | |
news did not really affect sentiment. I will see you soon. | :10:34. | :10:38. |