12/05/2014

Download Subtitles

Transcript

:00:00. > :00:00.Gove to be reined back. The Lib Dems say he has diverted 400 million

:00:00. > :00:00.pounds away from council`run schools to bail out his flagship policy of

:00:00. > :00:08.building free' schools. A spokesman for Mr Gove said the claims are

:00:09. > :00:18.totally wrong. Now on BBC News, all the latest business news live from

:00:19. > :00:21.Singapore. Countdown, as India enters the final days of its

:00:22. > :00:27.election, we find out how upcoming weather conditions could hit the

:00:28. > :00:36.country's economy. And we find out what is really worrying some of the

:00:37. > :00:39.world's biggest banks. Thank you for watching Asia Business Report, I

:00:40. > :00:44.Rico Hizon. India is in the final week of the world's biggest

:00:45. > :00:52.democratic election, in which rising costs have been a key issue on

:00:53. > :00:55.voters' mines. The increasing amount people have been having to pay is

:00:56. > :01:32.one of the biggest political and economic problems. There is

:01:33. > :01:35.increasing concern that the higher costs will be exacerbated this year.

:01:36. > :01:37.With the return of El Nino weather conditions. It returns every few

:01:38. > :01:39.years and can trigger floods and other severe weather conditions.

:01:40. > :01:42.Earlier, I asked our correspondent how it will impact this economy. The

:01:43. > :01:44.last time it came around was 2009. In the case of India, the north`west

:01:45. > :01:46.monsoons, critical for its agriculture sector, suffered quite

:01:47. > :01:48.badly. We saw inflation increasing quite a bit. So at this particular

:01:49. > :01:51.point, India's own weather bureau is saying that the rainfall will be

:01:52. > :01:54.normal. But in the past, forecasts have been wrong. If that happens, we

:01:55. > :01:56.are going to have a big problem on the inflation front. Inflation comes

:01:57. > :02:00.out today, it you also have wholesale prices, rising prices,

:02:01. > :02:05.what are you expecting? Will it be impacted by the El Nino weather

:02:06. > :02:10.pattern? The run up to the monsoons in June, we have already seen dry

:02:11. > :02:16.weather. We still have some impact on certain particular food items. We

:02:17. > :02:20.are expecting a slight uptick in inflation numbers in April. The big

:02:21. > :02:23.risk is we will see a failure and crops. This will have significant

:02:24. > :02:28.impact for the second half of the year. Especially when the new

:02:29. > :02:30.government is in power, and that can potentially be the first big

:02:31. > :02:39.challenge that they will face in office. Our correspondent from

:02:40. > :02:43.Barclays. Staying in India, this north`east state was once lagging

:02:44. > :02:48.behind when it came to economic development. It was a place where

:02:49. > :02:51.young people could not find jobs and refused to move in large numbers to

:02:52. > :02:57.other parts of the country. Now things are changing. Our report from

:02:58. > :03:09.the State capital. Far away from home, in Mumbai's melting pot, this

:03:10. > :03:15.man is. Trying to find a taste for the city. He sells snacks on his

:03:16. > :03:21.roadside cart and lives with several other men in one room. He came here

:03:22. > :03:24.two decades ago in search of work and goes back once every year to

:03:25. > :03:29.meet his wife and children. TRANSLATION: When I left there was

:03:30. > :03:37.no chance of finding any work here. If you are poor and forced to come

:03:38. > :03:42.here you are earning money to send back to your families. If there were

:03:43. > :03:48.any jobs there, I would not have left my home. Millions like him

:03:49. > :03:52.moved away. Now, for young people there, things seem to be moving

:03:53. > :04:04.forward. Rubbish under recently bought this moody `` Ravi Shankar

:04:05. > :04:09.bought this motorcycle. He found a job almost immediately. TRANSLATION:

:04:10. > :04:15.I am happy Eid in have to leave my home. I have a wife and a small

:04:16. > :04:18.baby. It would have been so hard without them. I would have been

:04:19. > :04:24.constantly worrying. Earlier, translate these used to be full of

:04:25. > :04:28.people leaving to move to more developed part of the country in

:04:29. > :04:34.search of work. Now, youngsters ready to join the workforce find

:04:35. > :04:38.their jobs available right here. In this one area alone, about 100

:04:39. > :04:45.factories have come up in the last five years. One of them is this

:04:46. > :04:51.biscuit manufacturing plant, set up three years ago and employing 350

:04:52. > :04:55.people. But it is mostly small industries which have come to Bihar.

:04:56. > :05:01.It is yet to attract many big names. While the State's rapid rate of

:05:02. > :05:05.growth over the last ten years has been welcomed, it will still take a

:05:06. > :05:09.while to catch up with the rest of India. Much of how Bihar progresses

:05:10. > :05:13.depends on politics. So people are relying on whichever party comes to

:05:14. > :05:20.power both in national government and here in the states, to keep

:05:21. > :05:24.Bihar moving in the right direction. In other business News making

:05:25. > :05:27.headlines, for the first time, the UK has more billionaires per head of

:05:28. > :05:33.population than any other country. That is according to a Rich List

:05:34. > :05:43.published by the Sunday Times newspaper. The top names had a

:05:44. > :05:47.fortune of over $20 billion. They say there are now over 100

:05:48. > :05:53.billionaires raced in the UK, with a combined wealth of over 500 billion

:05:54. > :05:58.dollars. The head of Samsung is in a stable condition after emergency

:05:59. > :06:04.heart surgery. He underwent an operation after suffering eating

:06:05. > :06:08.difficulties `` breathing difficulties on Saturday night. He

:06:09. > :06:16.is now recuperating in a stable condition after undergoing the

:06:17. > :06:19.operation. Asia boss Asia's biggest casino operator announced its

:06:20. > :06:25.earnings today. In the past week, its shares have been hit and have

:06:26. > :06:30.basically gone down. It is among the six biggest casino operators to see

:06:31. > :06:36.their stock price plunge on concerns China may tighten controls. Earlier,

:06:37. > :06:42.I spoke to our Hong Kong correspondent for more on this

:06:43. > :06:48.story. These casino operators saw their shares fall by 49%. It is on

:06:49. > :06:52.worries of a growing crackdown on money laundering and illegal money

:06:53. > :06:59.transfers out of China. We had news from China union, the biggest

:07:00. > :07:01.network of ATM cards in China, saying they would tighten their

:07:02. > :07:07.restrictions. This is how most Chinese travellers when they leave

:07:08. > :07:12.China access money. Of course, there are lots of restrictions to how much

:07:13. > :07:16.they can take outside the country including places like Hong Kong.

:07:17. > :07:22.There are also restrictions of how much they can take once they arrive

:07:23. > :07:25.in these two places. People in these casino is have said that the

:07:26. > :07:28.reason, the way that some gamblers have been getting around these

:07:29. > :07:33.currency controls is going to a pawn shop, buying something expensive,

:07:34. > :07:38.returning it right away, in exchange for cash which they get to keep. The

:07:39. > :07:45.owners of the shops get a cut from a deal like that. Of course, this is

:07:46. > :07:48.something that we have been hearing there has been a crackdown on. That

:07:49. > :07:56.has led to those big falls in share prices. From rogue traders, to

:07:57. > :08:01.sub`prime mortgages, there have been many crises in recent years. But a

:08:02. > :08:04.recent survey has found a bank industry is worried that technology

:08:05. > :08:08.will pose the biggest risk to their business. I spoke to a correspondent

:08:09. > :08:12.from PricewaterhouseCoopers, who published the report into what

:08:13. > :08:19.worries the world's banks. We asked why the top risk globally was not

:08:20. > :08:22.macroeconomic factors any more. Immediately after the crisis, people

:08:23. > :08:27.were really concerned about where the economy was going. What they

:08:28. > :08:32.were going to do about it. What the big issues were and how they were

:08:33. > :08:35.going to steer their businesses. By and large people have settled down

:08:36. > :08:40.on that now. Now the issue is how the regulator will respond to that

:08:41. > :08:45.local financial crisis. Regulators have not quite put in place their

:08:46. > :08:48.detailed plans yet. While the banks are pretty sure what their business

:08:49. > :08:52.strategies will now be as we go forward, they are a little bit

:08:53. > :08:55.concerned about how regulators will react. If we look specifically at

:08:56. > :09:02.banks in this region, it is macroeconomic is. The Asia Pacific

:09:03. > :09:06.banks were not as badly damaged by the crisis as culpable banks in

:09:07. > :09:12.Europe and America. As a consequence, again, they are at the

:09:13. > :09:17.stage where they are looking at how the Asian economy can develop. The

:09:18. > :09:22.regulators will be that do what they need to do, or the changes might be

:09:23. > :09:25.somewhere else. So there might be looking at things slightly

:09:26. > :09:27.differently. What is consistent between the two is the technology

:09:28. > :09:32.risk which is consistent across the board. What you mean by technology

:09:33. > :09:38.risk Rees are we talking a cyber risk? It everything. Customers are

:09:39. > :09:43.driving the banks to be more efficient. They are almost making no

:09:44. > :09:49.discretion as to where they go. So banks have had to adopt world`class

:09:50. > :09:55.technology in order to protect customers. This is coming with a

:09:56. > :09:58.certain amount of risk. Ranks are beginning to understand the risks of

:09:59. > :10:03.the marketplace for the Internet and other formats which they need to

:10:04. > :10:09.deal with. Are they worried about a? Are they dealing with? How big a

:10:10. > :10:13.risk factor is a? Very interesting. They have been doing this every two

:10:14. > :10:21.years. The last time the risk came up was 1998, two years before Y2K.

:10:22. > :10:27.Let's have a quick look at the markets. Sentiment in Asia is

:10:28. > :10:30.cautious despite US stocks setting a record close on Friday. Investors

:10:31. > :10:34.are bracing for a reaction after rebels declared victory in eastern

:10:35. > :10:49.Ukraine. Thank you for in investing your time with us, I am Rico Hizon.

:10:50. > :10:52.Goodbye for now. The top stories: unofficial self`rule referendums

:10:53. > :10:55.have been held in eastern Ukraine. There has been a shooting in one

:10:56. > :10:56.town. In