12/05/2014 Asia Business Report


12/05/2014

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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

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building free' schools. A spokesman for Mr Gove said the claims are

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totally wrong. Now on BBC News, all the latest business news live from

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Singapore. Countdown, as India enters the final days of its

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election, we find out how upcoming weather conditions could hit the

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country's economy. And we find out what is really worrying some of the

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world's biggest banks. Thank you for watching Asia Business Report, I

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Rico Hizon. India is in the final week of the world's biggest

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democratic election, in which rising costs have been a key issue on

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voters' mines. The increasing amount people have been having to pay is

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one of the biggest political and economic problems. There is

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increasing concern that the higher costs will be exacerbated this year.

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With the return of El Nino weather conditions. It returns every few

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years and can trigger floods and other severe weather conditions.

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Earlier, I asked our correspondent how it will impact this economy. The

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last time it came around was 2009. In the case of India, the north`west

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monsoons, critical for its agriculture sector, suffered quite

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badly. We saw inflation increasing quite a bit. So at this particular

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point, India's own weather bureau is saying that the rainfall will be

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normal. But in the past, forecasts have been wrong. If that happens, we

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are going to have a big problem on the inflation front. Inflation comes

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out today, it you also have wholesale prices, rising prices,

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what are you expecting? Will it be impacted by the El Nino weather

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pattern? The run up to the monsoons in June, we have already seen dry

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weather. We still have some impact on certain particular food items. We

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are expecting a slight uptick in inflation numbers in April. The big

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risk is we will see a failure and crops. This will have significant

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impact for the second half of the year. Especially when the new

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government is in power, and that can potentially be the first big

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challenge that they will face in office. Our correspondent from

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Barclays. Staying in India, this north`east state was once lagging

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behind when it came to economic development. It was a place where

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young people could not find jobs and refused to move in large numbers to

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other parts of the country. Now things are changing. Our report from

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the State capital. Far away from home, in Mumbai's melting pot, this

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man is. Trying to find a taste for the city. He sells snacks on his

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roadside cart and lives with several other men in one room. He came here

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two decades ago in search of work and goes back once every year to

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meet his wife and children. TRANSLATION: When I left there was

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no chance of finding any work here. If you are poor and forced to come

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here you are earning money to send back to your families. If there were

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any jobs there, I would not have left my home. Millions like him

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moved away. Now, for young people there, things seem to be moving

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forward. Rubbish under recently bought this moody `` Ravi Shankar

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bought this motorcycle. He found a job almost immediately. TRANSLATION:

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I am happy Eid in have to leave my home. I have a wife and a small

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baby. It would have been so hard without them. I would have been

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constantly worrying. Earlier, translate these used to be full of

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people leaving to move to more developed part of the country in

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search of work. Now, youngsters ready to join the workforce find

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their jobs available right here. In this one area alone, about 100

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factories have come up in the last five years. One of them is this

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biscuit manufacturing plant, set up three years ago and employing 350

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people. But it is mostly small industries which have come to Bihar.

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It is yet to attract many big names. While the State's rapid rate of

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growth over the last ten years has been welcomed, it will still take a

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while to catch up with the rest of India. Much of how Bihar progresses

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depends on politics. So people are relying on whichever party comes to

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power both in national government and here in the states, to keep

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Bihar moving in the right direction. In other business News making

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headlines, for the first time, the UK has more billionaires per head of

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population than any other country. That is according to a Rich List

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published by the Sunday Times newspaper. The top names had a

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fortune of over $20 billion. They say there are now over 100

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billionaires raced in the UK, with a combined wealth of over 500 billion

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dollars. The head of Samsung is in a stable condition after emergency

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heart surgery. He underwent an operation after suffering eating

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difficulties `` breathing difficulties on Saturday night. He

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is now recuperating in a stable condition after undergoing the

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operation. Asia boss Asia's biggest casino operator announced its

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earnings today. In the past week, its shares have been hit and have

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basically gone down. It is among the six biggest casino operators to see

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their stock price plunge on concerns China may tighten controls. Earlier,

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I spoke to our Hong Kong correspondent for more on this

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story. These casino operators saw their shares fall by 49%. It is on

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worries of a growing crackdown on money laundering and illegal money

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transfers out of China. We had news from China union, the biggest

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network of ATM cards in China, saying they would tighten their

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restrictions. This is how most Chinese travellers when they leave

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China access money. Of course, there are lots of restrictions to how much

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they can take outside the country including places like Hong Kong.

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There are also restrictions of how much they can take once they arrive

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in these two places. People in these casino is have said that the

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reason, the way that some gamblers have been getting around these

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currency controls is going to a pawn shop, buying something expensive,

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returning it right away, in exchange for cash which they get to keep. The

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owners of the shops get a cut from a deal like that. Of course, this is

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something that we have been hearing there has been a crackdown on. That

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has led to those big falls in share prices. From rogue traders, to

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sub`prime mortgages, there have been many crises in recent years. But a

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recent survey has found a bank industry is worried that technology

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will pose the biggest risk to their business. I spoke to a correspondent

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from PricewaterhouseCoopers, who published the report into what

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worries the world's banks. We asked why the top risk globally was not

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macroeconomic factors any more. Immediately after the crisis, people

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were really concerned about where the economy was going. What they

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were going to do about it. What the big issues were and how they were

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going to steer their businesses. By and large people have settled down

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on that now. Now the issue is how the regulator will respond to that

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local financial crisis. Regulators have not quite put in place their

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detailed plans yet. While the banks are pretty sure what their business

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strategies will now be as we go forward, they are a little bit

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concerned about how regulators will react. If we look specifically at

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banks in this region, it is macroeconomic is. The Asia Pacific

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banks were not as badly damaged by the crisis as culpable banks in

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Europe and America. As a consequence, again, they are at the

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stage where they are looking at how the Asian economy can develop. The

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regulators will be that do what they need to do, or the changes might be

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somewhere else. So there might be looking at things slightly

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differently. What is consistent between the two is the technology

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risk which is consistent across the board. What you mean by technology

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risk Rees are we talking a cyber risk? It everything. Customers are

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driving the banks to be more efficient. They are almost making no

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discretion as to where they go. So banks have had to adopt world`class

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technology in order to protect customers. This is coming with a

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certain amount of risk. Ranks are beginning to understand the risks of

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the marketplace for the Internet and other formats which they need to

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deal with. Are they worried about a? Are they dealing with? How big a

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risk factor is a? Very interesting. They have been doing this every two

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years. The last time the risk came up was 1998, two years before Y2K.

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Let's have a quick look at the markets. Sentiment in Asia is

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cautious despite US stocks setting a record close on Friday. Investors

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are bracing for a reaction after rebels declared victory in eastern

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Ukraine. Thank you for in investing your time with us, I am Rico Hizon.

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Goodbye for now. The top stories: unofficial self`rule referendums

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have been held in eastern Ukraine. There has been a shooting in one

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town. In

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