Browse content similar to 04/02/2014. Check below for episodes and series from the same categories and more!
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to sit the Common Entrance exams used by private schools. Now on BBC | :00:00. | :00:00. | |
News, all the latest business news live from Singapore. | :00:00. | :00:17. | |
Asian stock markets followed the week US manufacturing data. | :00:18. | :00:25. | |
Fast food giant Yum! Brands looks at its biggest market. | :00:26. | :00:33. | |
Welcome. The kick off with the market in Asia, where share prices | :00:34. | :00:46. | |
are falling due to a worse than expected US manufacturing report. | :00:47. | :00:54. | |
Marcus in Japan, Hong Kong and Australia are in negative territory | :00:55. | :01:02. | |
-- markets. This follows a down day on Wall Street, which saw US stocks | :01:03. | :01:05. | |
tumble the most since June last year. The Dow Jones and the S 500 | :01:06. | :01:20. | |
were down by more than 2%. My feeling now is that at the end of | :01:21. | :01:24. | |
last year, markets, especially in the US, Japan, had gains and that | :01:25. | :01:32. | |
led to invest exuberance, which left them vulnerable to a correction. | :01:33. | :01:36. | |
This is what we have seen. It is probably just a correction. | :01:37. | :01:40. | |
Obviously the emerging market worries that we have seen in some | :01:41. | :01:44. | |
parts, like Turkey and Argentina, have helped trigger that. The bad | :01:45. | :01:52. | |
weather has added to the woes. But, at the end of the day, this is | :01:53. | :01:56. | |
probably just a correction. It may have a couple more percent to go but | :01:57. | :02:02. | |
we have been selling and giving a good buying opportunity. | :02:03. | :02:14. | |
Moving on. We have news just in. The Australian central bank has decided | :02:15. | :02:16. | |
to keep the cost of borrowing steady, at 2.5%. We can cross to our | :02:17. | :02:22. | |
Sydney correspondent. Why are they keeping rates on hold? Predicting | :02:23. | :02:28. | |
interest rates in this country is a bit of a sport. A survey of | :02:29. | :02:32. | |
economists in the last few days reflected a view that the reserve | :02:33. | :02:38. | |
bank was likely to change interest rates. Economists were unanimous in | :02:39. | :02:43. | |
their view that they would stay at the historic low of 2.5%. What the | :02:44. | :02:52. | |
reserve bank is trying to do is assume a neutral position. Not too | :02:53. | :02:56. | |
hot, not too cold, in order to guide the Australian economy through what | :02:57. | :03:00. | |
will likely be a very challenging year, even the mining boom at the | :03:01. | :03:05. | |
Australian economy has relied upon for the past decade or so is | :03:06. | :03:09. | |
cooling. At the moment, it seems the reserve bank, in its first board | :03:10. | :03:14. | |
meeting of the year, has decided that it is steady as she goes. Also, | :03:15. | :03:20. | |
the Australian economy is still by jesting past interest rate cuts from | :03:21. | :03:25. | |
the Reserve Bank of Australia -- digestive. This will have an impact | :03:26. | :03:32. | |
on the economy? What we are seeing is that, in August of last year, the | :03:33. | :03:36. | |
rates went to these historic lows, 2.5%. You would have to be over 50 | :03:37. | :03:43. | |
years of age in this country to remember a time and interest rates | :03:44. | :03:46. | |
were this low. Economists are telling us that the housing, | :03:47. | :03:52. | |
construction and retail sectors in this country are showing some decent | :03:53. | :03:55. | |
signs of life, the cause of these low interest rates. But there is a | :03:56. | :04:00. | |
feeling that the jobs market in Australia isn't responding so well, | :04:01. | :04:04. | |
so perhaps there will be another interest rate cut later in the year. | :04:05. | :04:08. | |
But of course only the reserve bank will know that. One thing that might | :04:09. | :04:13. | |
stop the reserve bank cutting rates further in the next few months is | :04:14. | :04:17. | |
inflation. Inflation in Australia has edged up over 2.5%. The game, we | :04:18. | :04:22. | |
will have to wait and see. Thank you. | :04:23. | :04:28. | |
Shares of Chinese computer manufacturer Lenovo slumped more | :04:29. | :04:32. | |
than 14% in Hong Kong, adding to losses from last week was | :04:33. | :04:35. | |
announcement that it had bought Google's Motorola mobility handset | :04:36. | :04:52. | |
unit for more than $3 billion. Sony called the report inadequate. Five | :04:53. | :04:59. | |
brokerages have downgraded stock, after the company announced it had | :05:00. | :05:13. | |
bought motor roller. Investors are not happy with these recent business | :05:14. | :05:33. | |
decisions. Of course, last week, we had then by Motorola. A lot of the | :05:34. | :05:37. | |
concern that is going on is, can they digestive all of these | :05:38. | :05:41. | |
businesses? Some of them not being the most profitable. But our | :05:42. | :05:46. | |
investors not really seeing the true value of these purchasers? In some | :05:47. | :05:53. | |
cases. If you were to focus on Motorola, yes. If you look at it on | :05:54. | :05:58. | |
paper, the business wasn't very profitable. But if you look at what | :05:59. | :06:02. | |
Lenovo's long-term strategy was with that, they needed a way to get into | :06:03. | :06:07. | |
the US. What Motorola provided was not just the channel relationships | :06:08. | :06:14. | |
and operator relationships but the patents that they needed, or access | :06:15. | :06:19. | |
to the patents. In order to help detect themselves as they go into | :06:20. | :06:22. | |
that market. But what if these rumours are true, that they would | :06:23. | :06:28. | |
want to buy part of Sony's business? Is that a good fit? Merret in | :06:29. | :06:36. | |
theory, yes. There are a number of assets that Sony would bring to the | :06:37. | :06:41. | |
table. -- in theory. On the consumer side, we haven't necessarily being | :06:42. | :06:47. | |
seen as much of a premium brand. It would be interesting to have that | :06:48. | :06:51. | |
aspect added. But, nonetheless, we are talking about a market where | :06:52. | :06:56. | |
consumer PCs are just under fire from tablets and smartphones and | :06:57. | :06:59. | |
that's why there are so many challenges. US regulators are said | :07:00. | :07:09. | |
to approve the deal with Lenovo. Will it really happen? Could we see | :07:10. | :07:14. | |
this deal not materialising? Should go through. When you look at when | :07:15. | :07:20. | |
Lenovo a quiet part of the PC division many years ago, that went | :07:21. | :07:25. | |
through. Many US government businesses, broadly, still continue | :07:26. | :07:32. | |
to use Lenovo or IBM products. If anything, the server deal might be | :07:33. | :07:37. | |
under scrutiny because, will you trust having your data sitting on | :07:38. | :07:40. | |
back-end servers? Even that is likely to go through. Mobile phones, | :07:41. | :07:44. | |
which you could argue as Telecom, could that be an issue? We will | :07:45. | :07:52. | |
leave it there. Thank you. We will have to wait and see if this indeed | :07:53. | :07:59. | |
will materialise. Lenovo buying part of Sony's business. Moving on to | :08:00. | :08:02. | |
other business news making headlines. The world's biggest | :08:03. | :08:13. | |
central bank has a new woman leading it, the first in its 100 years. | :08:14. | :08:19. | |
Janet Yellen will unwind the stimulus programme without hurting | :08:20. | :08:23. | |
economic growth, she says. Then the bank is stepped down last week after | :08:24. | :08:28. | |
eight years in office. He has joined a Washington think tank. Shares of | :08:29. | :08:35. | |
Yum! Brands, the owner of KFC and Pizza Hut, rising by nearly 4% in | :08:36. | :08:40. | |
late US trade, after the firm reaffirmed its forecast for next | :08:41. | :08:49. | |
year. It posted weaker than expected profits after part of its food was | :08:50. | :08:54. | |
said to be contaminated in China. It is now hopeful the worst might be | :08:55. | :08:59. | |
over. More from Beijing. It is Chinese New Year in China. Are | :09:00. | :09:07. | |
times when many families will be going out to eat. But it seems many | :09:08. | :09:10. | |
people will be avoiding chicken at KFC. Concerns over avian flu means | :09:11. | :09:16. | |
many people are dropping chicken from their diets, even though | :09:17. | :09:25. | |
experts say there's no risk. Some Chinese poultry suppliers are | :09:26. | :09:30. | |
accused of misusing antibiotics. We don't go to KFC because it is junk | :09:31. | :09:34. | |
food and not good for children. So, we seldom eat it. TRANSLATION: I | :09:35. | :09:40. | |
don't pay much attention to KFC because we really eating. But I am | :09:41. | :09:45. | |
worried about food. Anything going into my mouth is important and I am | :09:46. | :09:49. | |
worried about food safety. TRANSLATION: I don't often eat KFC. | :09:50. | :09:55. | |
IDE it sometimes because it is convenient. KFC had less sales but | :09:56. | :10:04. | |
it has a new advertising campaign called trust in every bite. They say | :10:05. | :10:08. | |
they have tightened the supply chain in China. Analysts say it is vital | :10:09. | :10:13. | |
that young brands turn to sales in China. The corporation is so heavily | :10:14. | :10:18. | |
dependent on the Chinese market and on KFC in particular, it is vital, | :10:19. | :10:23. | |
they say, that the new campaign work in order for the corporation's | :10:24. | :10:30. | |
global finances to improve. Thanks for investing your time with | :10:31. | :10:31. | |
us. Goodbye for now. The top stories this hour: The World | :10:32. | :10:44. | |
Health Organisation has warned of a "tidal wave" of cancer sweeping the | :10:45. | :10:48. | |
globe. It says more needs to be done to tackle the disease. | :10:49. | :10:50. | |
A priest in the Central African Republic says in the past week at | :10:51. | :10:53. | |
least 75 Christians have | :10:54. | :10:54. |