22/07/2016 World Business Report


22/07/2016

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Brexit, protectionism, currency wars, finance heads

:00:18.:00:21.

have a full in-tray as they arrive in China for the G20 summit.

:00:22.:00:25.

The head of Fox News Roger Ailes resigns following accusations

:00:26.:00:28.

of sexual harassment, company boss Rupert Murdoch takes

:00:29.:00:30.

over in the hopes of stabilising his media empire.

:00:31.:00:39.

Welcome to World Business Report, I'm Sharnjit Leyl.

:00:40.:00:47.

Following a turbulent few weeks, central bankers and finance

:00:48.:00:49.

ministers from 20 of the world's major economies are meeting in

:00:50.:01:00.

And they'll have a lot on their plate.

:01:01.:01:03.

Following Britain's decision to leave the EU,

:01:04.:01:05.

the International Monetary Fund nudged down its forecast

:01:06.:01:07.

So far, central banks in Europe and the UK have kept policy on hold,

:01:08.:01:11.

until they have a better economic picture.

:01:12.:01:13.

Across the pond, Donald Trump has been officially nominated

:01:14.:01:15.

as the Republican candidate for the US Presidential election.

:01:16.:01:22.

The billionaire businessman has vowed to impose hefty tariffs

:01:23.:01:25.

on Chinese imports, which could spark retaliation

:01:26.:01:26.

from Beijing, and bring about an all-out trade war.

:01:27.:01:30.

I'm joined now by Charles Pittar, Chief Executive of Juwai.com,

:01:31.:01:33.

one China's largest property portals, connecting Chinese buyers

:01:34.:01:35.

We know that yours is a property firm, how much are we seeing Chinese

:01:36.:01:51.

demand for overseas property impacted by the events of the last

:01:52.:01:57.

few weeks? Good question. It is interesting, we did a survey prior

:01:58.:02:03.

to the Brexit result and we interviewed approximately 400 real

:02:04.:02:09.

estate professionals in China and approximately 40 in the UK. The

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results of the survey suggested that the Chinese, from a Chinese

:02:16.:02:18.

perspective, they were probably going to hold off on any investment

:02:19.:02:24.

decisions until after the Brexit vote. Indications were that the

:02:25.:02:30.

Chinese were more interested in UK property than before. The picture

:02:31.:02:35.

painted by the domestic UK audience that was interviewed agree with

:02:36.:02:39.

that. We have seen since the result of the Brexit that that has played

:02:40.:02:43.

out. In the last few weeks we have had more enquiries into loans in

:02:44.:02:49.

China than we have seen for the duration of this year, so the last

:02:50.:02:57.

four weeks have seen it leading up to 40%, a clear indication that the

:02:58.:03:00.

Chinese are very interested in the UK and the post Brexit result has

:03:01.:03:07.

seen the demand increase. Taking a look at the US is now, Donald

:03:08.:03:14.

Trump's confirmation as the Republican nominee, how do you think

:03:15.:03:19.

relations will change with China when you take into account his anti-

:03:20.:03:22.

China rhetoric in his speech? Is there a fear amongst Chinese

:03:23.:03:31.

investors that if Trump is elected, there may be issues with foreign

:03:32.:03:38.

investments? It is a complex issue and answer. When we look at the

:03:39.:03:43.

demand from our property portal in China globally, the US is the

:03:44.:03:48.

biggest market. 40% of the enquiries we get up for the US market. It is a

:03:49.:03:53.

global market. If there are indications, any of the countries we

:03:54.:03:57.

are dealing with internationally, that they are less proactive and

:03:58.:04:01.

less keen on the demand from China, it could have an impact. When you

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look at what is happening with the G20 and the fact that you have a

:04:06.:04:10.

number of UK officials in China at the moment, essentially saying that

:04:11.:04:15.

the UK is open for business, that sends a very positive message. So

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the countries are potentially sending a good message, if the US

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send a negative message, that could have an impact. We will be watching

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very carefully. Thank you for joining us.

:04:33.:04:36.

After a newspaper scandal in Britain, Rupert Murdoch is facing

:04:37.:04:39.

This man here, the brainchild behind Fox News, Roger Ailes has resigned

:04:40.:04:43.

following accusations of sexual harassment by a number

:04:44.:04:45.

Mr Ailes did not give a reason for stepping down as CEO,

:04:46.:04:48.

saying only that he'd become a 'distraction'.

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He's likely to leave with a $40 million pay

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package, and Mr Murdoch himself, who owns parent

:05:00.:05:01.

company 21st Century Fox will take over as acting Chief

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I'm joined now by Joe Flint from the Wall Street Journal,

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What does the departure mean for Fox, especially as it comes today of

:05:15.:05:24.

all days, the last day of the Republican National Convention? We

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know that Fox is very much a rightleaning, conservative channel.

:05:30.:05:34.

Today ideally would have been a great day for Fox News, huge ratings

:05:35.:05:39.

tomorrow because of the coverage of the Trump speech. Instead, they are

:05:40.:05:44.

very distracted by the sudden departure of their leader and a

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sickly the only leader they have ever known. His departure will be a

:05:48.:05:55.

huge blow for the channel. The organisation is all about him, he

:05:56.:06:00.

put it together, knows where all the bodies are buried, and it will be

:06:01.:06:05.

very tough to replace Roger Ailes, when over the loyalty of the people

:06:06.:06:10.

he has in place. There is going to be a seismic change at the channel

:06:11.:06:15.

in the next few years. What does it tell us about the fact that Rupert

:06:16.:06:23.

Murdoch is stepping in in terms of how he views the importance of Fox

:06:24.:06:28.

News? You're correct. Rupert Murdoch's decision to take over the

:06:29.:06:33.

CEO and chairman role is a smart one. I think he is trying to send a

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message to the Fox News team about how important the channel is to him,

:06:38.:06:41.

that he is aware of what a big deal it is for Roger Ailes not to be

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there and that his hand is still on the steering wheel. I don't know how

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actively involved he will be in the day to day decision-making,

:06:51.:06:54.

obviously he has a large company to run. IT will certainly be more

:06:55.:06:59.

involved than he had been in recent years. The channel had been doing so

:07:00.:07:04.

well. I don't want to suggest he runs on autopilot, it is a very big

:07:05.:07:11.

operation. But with Roger they are, everybody knew their role and how to

:07:12.:07:14.

execute it. I think that Rupert hopes to bring that as well. Just

:07:15.:07:21.

quickly, it is funny you say that Mr Murdoch wants to be seen as being at

:07:22.:07:25.

the steering wheel. We are seeing lots of commentary because of this

:07:26.:07:29.

incident that he is somehow losing control of his media empire? I think

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that is more because of the roles he has given to his sons, Laughlan and

:07:36.:07:43.

James. Laughlan is a German and James is the chief executive. Roger

:07:44.:07:53.

Ailes and Fox News were kind of a separate area within the company.

:07:54.:07:56.

They generate so much money that nobody was going to mess with them.

:07:57.:08:01.

I think there has been a lot of thought that James and Laughlan

:08:02.:08:04.

don't share the same loyalty to Roger Ailes that Rupert does, and

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might have been more aggressive about wanting to bring their scandal

:08:10.:08:15.

to an end quickly. I would also add to that in a time of tremendous

:08:16.:08:20.

change and disruption in the media industry, Fox News is the one thing

:08:21.:08:25.

that 21st-century Fox can rely on to deliver huge profits. Thank you for

:08:26.:08:31.

joining us. Now, Pokemon Go, the little app that

:08:32.:08:35.

could, Mariko Oi is in our Asia Tell us more? Japanese fans have

:08:36.:08:50.

been waiting for it and finally this morning it was launched. As a

:08:51.:08:55.

result, shares of Nintendo have recovered somewhat. They doubled,

:08:56.:09:00.

more than doubled since the launch of the game, but in recent days we

:09:01.:09:05.

have seen profits fall. But today profits rose by 6%. The rest of the

:09:06.:09:14.

Japanese markets are down, taking their cue from Wall Street. Other

:09:15.:09:19.

shares, such as McDonald's Japan which are a partner with Nintendo,

:09:20.:09:23.

their shares are trading higher as well. You have been watching World

:09:24.:09:46.

Business Report, stay with us. Before we look at the papers, let's

:09:47.:09:49.

fill you in on some UK stories. Banking on mobile apps has overtaken

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all other forms of banking combined.

:09:52.:09:55.

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