Browse content similar to 07/07/2014. Check below for episodes and series from the same categories and more!
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cover`up. Those are the headlines. Let's go to | :00:00. | :00:00. | |
Singapore now. Doing business with China. We will | :00:00. | :00:19. | |
have a look at the German trade ties with the world's second largest | :00:20. | :00:23. | |
economy. A special report on the Indian auto | :00:24. | :00:27. | |
industry and what they want to see from the government in the next | :00:28. | :00:30. | |
Budget. Welcome to Asia Business Report. | :00:31. | :00:41. | |
China is Asia's biggest economy and journey easier's. So surprised that | :00:42. | :00:45. | |
business is at the top of the agenda for Angela Merkel's visit to China | :00:46. | :00:57. | |
this week. `` Germany is Europe. Many German companies are looking to | :00:58. | :01:05. | |
China to their fortunes. Angela Merkel arrived for her | :01:06. | :01:08. | |
seventh visit to China, a measure of the weight she puts on the | :01:09. | :01:11. | |
relationship. In the south`western cities, she toured a Volkwagen | :01:12. | :01:14. | |
factory. A joint`venture with a Chinese company. This visit is about | :01:15. | :01:22. | |
trade. China buys German machinery and the middle`class buys German | :01:23. | :01:25. | |
cars. The German economy is kept ticking over by Chinese orders. | :01:26. | :01:33. | |
Trade is balanced. Germany sold goods worth $91 billion to China | :01:34. | :01:36. | |
last year. China sold goods worth $99 billion. In the past, Chancellor | :01:37. | :01:39. | |
Merkel struck a balance between condemning human rights abuses in | :01:40. | :01:42. | |
China but not wanting to alienate the leadership too much. It is not | :01:43. | :01:49. | |
clear how strongly she will speak out this time. The three`day trip | :01:50. | :02:00. | |
started in Sichuan. It has a population of 80 million people. | :02:01. | :02:03. | |
Just one province but with the same population as Germany. That is how | :02:04. | :02:09. | |
important the Chinese market is. German companies tread carefully. | :02:10. | :02:12. | |
They have complained that Chinese companies just copy their ideas. | :02:13. | :02:17. | |
China wants glossy Western consumer goods and the Chinese market is too | :02:18. | :02:22. | |
big for the West to ignore. Chinese leaders hold a joint session with | :02:23. | :02:29. | |
the German Cabinet later this year. It is a profitable relationship for | :02:30. | :02:30. | |
both sides. That is the background to the | :02:31. | :02:40. | |
business ties between China and Germany. For more of what we can | :02:41. | :02:45. | |
expect from the Chancellor's visit over the next few days, we bring in | :02:46. | :02:50. | |
Martin patients. We know that Angela Merkel began her trip and usually | :02:51. | :02:54. | |
but where is she expected to be today? `` Martin Patience. She was | :02:55. | :03:04. | |
in the south of the country and many would see that as the land of | :03:05. | :03:08. | |
opportunity as China moves the West to open up less developed areas in | :03:09. | :03:13. | |
the country. `` moves westwards. Today is about politics. She will be | :03:14. | :03:17. | |
meeting the Chinese Premier and later today, she will hold talks | :03:18. | :03:23. | |
with she jinking. Trade business will be at the top of the agenda. | :03:24. | :03:28. | |
Unusually for a western country, Germany exports as much to China as | :03:29. | :03:35. | |
it buys back. Many would see that as the main reason that the German | :03:36. | :03:40. | |
economy has staved off some of the problems that we have seen in other | :03:41. | :03:44. | |
European countries. `` she will hold talks with Xi Jinping. The Germans | :03:45. | :03:49. | |
have a lot of concerns about the Chinese market, not least | :03:50. | :03:52. | |
intellectual property. We heard one German intelligence chief warning | :03:53. | :03:57. | |
small and medium`sized firms that they were at risk of industrial | :03:58. | :04:04. | |
espionage by Chinese government agencies. Has there been a response | :04:05. | :04:13. | |
among the delegation? Has not. It is interesting that it has been raised | :04:14. | :04:17. | |
by a German official. What you will often see and hear from China `` in | :04:18. | :04:23. | |
China from Western companies is not a lot. They do not want to be | :04:24. | :04:28. | |
targeted. They are fearful of consequences if they speak out about | :04:29. | :04:33. | |
these issues. There are concerns about industrial espionage. | :04:34. | :04:37. | |
Basically, Chinese companies ripping off technology from joint | :04:38. | :04:43. | |
enterprises. There is, of course, increased competition from Chinese | :04:44. | :04:47. | |
businesses as China moves up the food chain in terms of technology. | :04:48. | :04:52. | |
Western companies are then facing more competition. There are also | :04:53. | :04:57. | |
concerns from small and medium`sized businesses in Germany that they are | :04:58. | :05:04. | |
not being paid in time. That might sound like a small grumble but often | :05:05. | :05:08. | |
it is 3`6 months. Some put that down to the tightening of credit within | :05:09. | :05:13. | |
Chinese tanks. There are issues on the table. `` Chinese banks. Both | :05:14. | :05:22. | |
have stressed that this is mutually beneficial. They are saying that the | :05:23. | :05:28. | |
relationship between China and Germany is at the best in history. | :05:29. | :05:35. | |
In the latest updates on the visit, you can go to the website. | :05:36. | :05:42. | |
High`level British ministers are due in India this week to meet the new | :05:43. | :05:45. | |
Prime Minister. The Foreign Secretary William Hague and finance | :05:46. | :05:50. | |
minister George Osborne will arrive in Mumbai later today for talks with | :05:51. | :05:55. | |
their Indian counterparts. The focus will be on strengthening economic | :05:56. | :05:58. | |
ties. Two way trade between India and the UK has reportedly the past | :05:59. | :06:04. | |
$15 billion. Speaking of the Indian government, | :06:05. | :06:07. | |
they are due to have a busy week because on Thursday, it will unveil | :06:08. | :06:11. | |
its first Budget after coming to power. The new finance minister has | :06:12. | :06:15. | |
already said that the country cannot afford populist policies is expected | :06:16. | :06:20. | |
to announce tax breaks to encourage foreign investment and incentives | :06:21. | :06:24. | |
for individuals to save more. We report on one industry which we will | :06:25. | :06:26. | |
be watching closely. For hours outside of Mumbai, this is | :06:27. | :06:36. | |
a factory at one I's best small car makers. It mainly produces vehicles | :06:37. | :06:46. | |
for sale within India. `` at one of India's best small car makers. It is | :06:47. | :06:50. | |
looking to the government to get the wheels of the business turning | :06:51. | :06:53. | |
again. At the top of the wish list is a simple `` and publication of | :06:54. | :06:58. | |
the tax rules. On the current regime we have does not allow us to | :06:59. | :07:04. | |
optimise costs. `` simplification. It does not allow us to take the | :07:05. | :07:09. | |
right business decisions. Once of the cars or all of the cars roll off | :07:10. | :07:12. | |
the factory line, independent dealers have to sell them. The last | :07:13. | :07:16. | |
three years, they have been suffering. Earlier, it was very | :07:17. | :07:26. | |
affordable. Total has now gone up to almost above $1. That is an | :07:27. | :07:30. | |
important factor which affect our business. `` petrol cost. | :07:31. | :07:38. | |
This is a potential customer. Over the last few months, he has been | :07:39. | :07:47. | |
checking out quite a few cars. With banks charging over 10% to borrow | :07:48. | :07:54. | |
money, he has yet to buy one. The government was voted to power with | :07:55. | :07:57. | |
the huge mandate and the promise of providing the economy. There is no | :07:58. | :08:02. | |
surprise that expectations are running high as the government | :08:03. | :08:04. | |
prepares to announce its first Budget. It will be a speech that | :08:05. | :08:09. | |
everyone, from big business to the man on the street, will watch with a | :08:10. | :08:11. | |
lot of interest. And hope. South East Asia's largest bank hopes | :08:12. | :08:23. | |
to expand even though its chief executive says uncertainty in the | :08:24. | :08:25. | |
global economy could mean lower growth for many countries in Asia. I | :08:26. | :08:32. | |
earlier spoke to one analyst who told the that despite the slowdown, | :08:33. | :08:37. | |
there are sectors seeing headway. The property and construction sector | :08:38. | :08:41. | |
is one. You will see headwinds for the next couple of years. Steel and | :08:42. | :08:47. | |
cement as well. On the other hand, if you look at the exported sector | :08:48. | :08:54. | |
in South China, it is benefiting of the European turnaround from `0.5% | :08:55. | :09:01. | |
to plus 0.5%. It is doing OK. Some portions of manufacturing are doing | :09:02. | :09:06. | |
OK. It is a two speed economy to the next two years. DBS is planning a | :09:07. | :09:11. | |
big regional expansion into Hong Kong, China, India and Indonesia | :09:12. | :09:14. | |
which goes to the polling booths this week to elect the next leader. | :09:15. | :09:19. | |
What do you estimate from that market? Indonesia has the same | :09:20. | :09:24. | |
advantages as China and India. A large population which is very | :09:25. | :09:28. | |
young, younger than other countries and a growing middle class. The | :09:29. | :09:31. | |
Indonesian challenge in the short term is to make sure that it can | :09:32. | :09:37. | |
attract enough investment. Savings and investment pools are critical to | :09:38. | :09:42. | |
Indonesia's group agenda. In that regard, making sure that the economy | :09:43. | :09:47. | |
stays open to the inflow of investment and business investment | :09:48. | :09:53. | |
appetite, that is really important. `` growth agenda. What would be best | :09:54. | :09:58. | |
for the growth of your business? The market as a general theme would look | :09:59. | :10:02. | |
for somebody who is likely to be less nationalistic and more open. | :10:03. | :10:09. | |
From a market standpoint, there is an Mac standpoint that one of | :10:10. | :10:15. | |
ministration might be more open to investment than another. The truth | :10:16. | :10:19. | |
is that it is difficult to really tell from the rhetoric in the last | :10:20. | :10:22. | |
month. A quick look at the markets. They | :10:23. | :10:27. | |
are all flat this Monday morning. A slow start after the US holiday on | :10:28. | :10:33. | |
Friday. That is all for this edition of Asia Business Report. Thank you | :10:34. | :10:34. | |
for watching. You are watching BBC News. These are | :10:35. | :10:44. | |
the headlines: The Palestinian militant group Hamas says at least | :10:45. | :10:47. | |
six of its fighters have been killed in Israeli air strikes on the Gaza | :10:48. | :10:51. | |
Strip. It follows days of rocket attacks against Israel. | :10:52. | :10:52. |