Browse content similar to 02/05/2016. Check below for episodes and series from the same categories and more!
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China's manufacturers see a smidgen of expansion but is it | :00:18. | :00:19. | |
We have a bull and bear battle it out. | :00:20. | :00:27. | |
And preparing for the risk of climate change, a new report | :00:28. | :00:29. | |
says almost half the worlds biggest institutional investors are doing | :00:30. | :00:32. | |
Also in the programme some good news for mobile phone users in Europe | :00:33. | :00:52. | |
where roaming charges have gone down dramatically. | :00:53. | :00:54. | |
New numbers from China show activity in the manufacturing sector grew | :00:55. | :00:57. | |
for a second month in a row, but only slightly. | :00:58. | :01:01. | |
The official Purchasing Managers' Index came | :01:02. | :01:03. | |
That's down slightly from 50.2 in March and barely above | :01:04. | :01:14. | |
the 50-point mark that separates expansion from contraction. | :01:15. | :01:30. | |
Good to see you. It is good news but not that exciting. Put it all in | :01:31. | :01:41. | |
perspective for us. Well, how you view China's slowdown may be very | :01:42. | :01:46. | |
different depending on whether you are an optimist or a pessimist. I | :01:47. | :01:52. | |
spoke to these two individuals, one is a well-known pessimist, Gordon | :01:53. | :02:03. | |
Chang, and I caught up with him together with this gentleman, Mark | :02:04. | :02:12. | |
Boston. I asked them where they thought China was headed. I think | :02:13. | :02:17. | |
China is going to a natural transition from being an economy | :02:18. | :02:21. | |
that was overreliant on manufacturing, overreliant on | :02:22. | :02:27. | |
investment driven economy, so now it will be a consumer driven service | :02:28. | :02:36. | |
oriented economy. This is exactly what the IMF and others have been | :02:37. | :02:41. | |
telling them to do. So, we are seeing a slowdown, but that will be | :02:42. | :02:45. | |
something that we expect them to get through over the coming years. | :02:46. | :02:52. | |
Gordon, you don't agree with anything Mark says? I don't think | :02:53. | :02:59. | |
they can make this transition because there is significant | :03:00. | :03:02. | |
political opposition in Beijing. At the same time you have $1 trillion | :03:03. | :03:07. | |
of net capital outflow last year, a debt to GDP ratio approaching 400% | :03:08. | :03:13. | |
when you look at all the debt. And you also have infighting between | :03:14. | :03:17. | |
President Xi Jinping and Premier Li Keqiang, who is supposed to be head | :03:18. | :03:23. | |
of the economy. When you look at these factors, they are not going to | :03:24. | :03:28. | |
make that transition the way everybody wants them to. Even though | :03:29. | :03:32. | |
technically nothing is inevitable, it seems that the crash of some sort | :03:33. | :03:40. | |
looks virtually certain. I was also speaking to Mark Austen. Even though | :03:41. | :03:44. | |
they have very different point of view, one thing seems certain, which | :03:45. | :03:48. | |
is that China's economic fortunes will continue to dig bait where the | :03:49. | :03:52. | |
global economy is headed for sometime come. So much so that | :03:53. | :03:57. | |
manufacturing numbers are partly to blame for the slide we are seeing in | :03:58. | :04:00. | |
regional markets today. Using your mobile phone abroad is | :04:01. | :04:04. | |
now cheaper for customers On Saturday roaming charges were | :04:05. | :04:07. | |
capped with a maximum price, it's the first step before they're | :04:08. | :04:10. | |
completely abolished next year. There is nothing quite like the | :04:11. | :04:23. | |
shock of seeing a huge phone bill after taking a holiday somewhere. | :04:24. | :04:27. | |
That is set to change across Europe because from Saturday prices have | :04:28. | :04:31. | |
been capped for all calls, text messages and data. And even better | :04:32. | :04:38. | |
news for consumers, it is just the first step in plans to completely | :04:39. | :04:40. | |
scrap roaming charges from next year. Under the new rules, roaming | :04:41. | :04:45. | |
will be 75% cheaper during this interim period. Prices are capped at | :04:46. | :04:51. | |
5 cents per minute for outgoing calls, to sense the text, and 5 | :04:52. | :05:05. | |
cents per megabyte. So, can we use our phones abroad now without any | :05:06. | :05:09. | |
worry? Not really, because different phone providers may charge you extra | :05:10. | :05:13. | |
if you go over a certain limit. These new rules also only apply | :05:14. | :05:17. | |
within the EU, so if you travel abroad to Asia or Africa, your best | :05:18. | :05:22. | |
bet may still be buying a local sim card. | :05:23. | :05:26. | |
How much is being done by institutional investors to prepare | :05:27. | :05:29. | |
Well nearly half the world's biggest asset owners are doing nothing | :05:30. | :05:33. | |
at all according to a report by Asset Owners Disclosure Project. | :05:34. | :05:36. | |
This organisation represents big investors worth 38 trillion dollars | :05:37. | :05:38. | |
and looks at what action they're taking to mitigate climate risk. | :05:39. | :05:41. | |
A rapidly warming planet means economic instability, which, | :05:42. | :05:43. | |
in turn, means weaker investment portfolios. | :05:44. | :05:48. | |
With me is Julian Poulter, CEO of the Asset Owners Disclosure Project | :05:49. | :06:03. | |
Explain why so many are doing nothing about this. Climate change | :06:04. | :06:10. | |
has become very much an economic and financial issue, not just an | :06:11. | :06:14. | |
environmental one. We live in a time where short-term share markets | :06:15. | :06:22. | |
dominate everything. These asset owners, who incentivised to look at | :06:23. | :06:25. | |
the risk of climate change over a much longer period, more like 20 | :06:26. | :06:30. | |
years. Essentially, Mark Carney in his speech in November pointed this | :06:31. | :06:36. | |
out, this tragedy of the Horizons, whereby short-term markets, mainly | :06:37. | :06:40. | |
because things like a lack of carbon price and other incentives in | :06:41. | :06:44. | |
market, will eventually affect financial stability. Once the | :06:45. | :06:52. | |
markets begin to reassess the risk. What you think will cause us to | :06:53. | :06:56. | |
change behaviour in the sense of those who are managing our | :06:57. | :07:01. | |
pensions, ensuring our financial futures, will make good decisions | :07:02. | :07:06. | |
about this? The reality is that many of these asset owners give their | :07:07. | :07:13. | |
funds to short-term manages to deal with it. Essentially, they are not | :07:14. | :07:19. | |
really believing the way the market is pricing it in the short term, and | :07:20. | :07:24. | |
is deciding to do other things in the long-term. They are investing | :07:25. | :07:29. | |
more in renewable energy, and devising new low carbon indices, | :07:30. | :07:34. | |
ways that they can decarbonise their portfolios, so if, in the words of | :07:35. | :07:38. | |
Mark Carney, there is a wholesale reassessment of profits, that the | :07:39. | :07:41. | |
market changes rapidly, they are better protected. Just put this in | :07:42. | :07:48. | |
perspective, it is quite staggering that the figures, if there was some | :07:49. | :07:56. | |
kind of major climate readjustment that was negative, in terms of the | :07:57. | :08:00. | |
money lost and the impact on our economies is in our security. We are | :08:01. | :08:06. | |
less than ten years on from the last big market collapse. The reality is | :08:07. | :08:12. | |
that your average pension portfolio has much greater exposure to climate | :08:13. | :08:17. | |
risk than other mortgage-backed securities did in 2007. It is in | :08:18. | :08:23. | |
more than half of the pension portfolio, and therefore of the | :08:24. | :08:30. | |
markets do start to move... What if there is another hurricane in Boston | :08:31. | :08:35. | |
or somewhere further north, and suddenly markets get a sense that | :08:36. | :08:37. | |
governments will have to move quickly, that rapid reassessment of | :08:38. | :08:40. | |
the risk is what will produce market instability. Thank you to coming in | :08:41. | :08:45. | |
so early on a bank holiday. After a half-century of waiting, | :08:46. | :08:54. | |
passengers have set sail from Miami Carnival Corp's | :08:55. | :08:59. | |
704-passenger Adonia left The cruise comes after Cuba loosened | :09:00. | :09:07. | |
its policy banning Cuban-born people Several Cuban-born passengers | :09:08. | :09:10. | |
were among those aboard. Australia's third largest lender, | :09:11. | :09:16. | |
Westpac bank, has reported a 3% rise in profits | :09:17. | :09:20. | |
in the six months to March That's less than forecast | :09:21. | :09:23. | |
and with interest rates at record lows it's being put down to growth | :09:24. | :09:27. | |
in mortgages and corporate loans. The markets that are open today... | :09:28. | :09:43. | |
There have been affected by the news we mentioned at the top of the show | :09:44. | :09:47. | |
about manufacturing data out of China not being encouraging. Also | :09:48. | :09:50. | |
one of the big reasons Japan is having such a tough time is because | :09:51. | :09:54. | |
look at the yen versus the US dollar, extremely strong of late. | :09:55. | :09:59. | |
That is really hitting shares listed in Tokyo. | :10:00. | :10:12. | |
The government is considering new laws on how tips are | :10:13. | :10:21. | |
A consultation document from the Business Secretary | :10:22. | :10:24. |