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return to Britain. Now it is time for all the latest | :00:00. | :00:12. | |
business news, live from Singapore. ?1 billion, Britain's Finance | :00:13. | :00:18. | |
Minister sets up a credit line to invest in India's infrastructure | :00:19. | :00:21. | |
sector. Investing for the long`term. | :00:22. | :00:26. | |
Singapore's sovereign wealth fund explains its strategy. | :00:27. | :00:33. | |
Great to have you with us for this edition of Asia Business Report. | :00:34. | :00:40. | |
India's new Prime Minister has two of the UK's most senior officials in | :00:41. | :00:45. | |
Delhi. The Chancellor of the Exchequer, George Osborne, and | :00:46. | :00:49. | |
William Hague, the Foreign Secretary. They will be discussing | :00:50. | :00:54. | |
how British companies might benefit from plants to stimulator the Indian | :00:55. | :01:01. | |
economy. Everyone rides on the Delhi | :01:02. | :01:03. | |
Underground, including the Chancellor of the Exchequer ` in | :01:04. | :01:06. | |
India, doing business with the new government here. And at the other | :01:07. | :01:13. | |
end of the line, here is George Osborne again for talks with | :01:14. | :01:15. | |
Narendra Modi, India's Prime Minister, whose BJP party won a | :01:16. | :01:18. | |
landslide victory in May's general election. But the British government | :01:19. | :01:25. | |
and Narendra Modi have not always been the best of friends, because of | :01:26. | :01:28. | |
the Gujarat riots 12 years ago, when he was accused of not doing enough | :01:29. | :01:32. | |
to prevent the brutal massacre of Muslims, and Britain boycotted him. | :01:33. | :01:36. | |
Do you think that Narendra Modi harbours any kind of a grudge | :01:37. | :01:39. | |
against the British? Back in 2002, there were concerns about what would | :01:40. | :01:42. | |
happen, but they were extensively investigated. And this government, | :01:43. | :01:47. | |
this British government, took a decision in 2012, actually ahead of | :01:48. | :01:49. | |
other western nations, to re`establish contact with Narendra | :01:50. | :01:58. | |
Modi, to begin a dialogue. A British company has played an important part | :01:59. | :02:01. | |
developing Delhi's new air traffic control tower and airport, and | :02:02. | :02:04. | |
winning other valuable contracts for Britain to help modernise India is | :02:05. | :02:07. | |
what Mr Osborne and the Foreign Secretary dearly want. But it is not | :02:08. | :02:13. | |
easy. As somebody who has worked here for a long time, what are the | :02:14. | :02:17. | |
pitfalls you have to look out for? I think the pitfalls are dealing with | :02:18. | :02:20. | |
the bureaucracy, and the administrative system that is there. | :02:21. | :02:25. | |
Hopefully they are making the right moves to cut through. To grease the | :02:26. | :02:30. | |
wheels of British businesses improving India's infrastructure, Mr | :02:31. | :02:33. | |
Osborne is providing ?1 billion of credit. Have you ever done anything | :02:34. | :02:39. | |
on this scale with any other country? This is the first time we | :02:40. | :02:42. | |
have ever done anything on this scale. This is all about fixing what | :02:43. | :02:46. | |
is not working, as well some other parts of the British economy, which | :02:47. | :02:51. | |
is our exports. And I think as a country we depended too much on | :02:52. | :02:54. | |
exports to the continent of Europe or to North America, you look at a | :02:55. | :02:57. | |
country like India and you see Britain has to be more part of this. | :02:58. | :03:02. | |
It is not all sunshine ` previous Indian governments have promised to | :03:03. | :03:04. | |
modernise India, and have been defeated by the elements. A typical | :03:05. | :03:10. | |
Mumbai monsoon, washing everything clean and new. It is what the Indian | :03:11. | :03:15. | |
people I have spoken to expect of Mr Modi's government, and what he has | :03:16. | :03:21. | |
promised. The world's second most populous country, determined to | :03:22. | :03:23. | |
become richer, maybe with the help and to the benefit of Britain. | :03:24. | :03:34. | |
In other business news making headlines, China's oil prices have | :03:35. | :03:42. | |
increased compared to European levels. That is a slowdown last | :03:43. | :03:49. | |
month. `` China's prices. They have been trying to increase domestic | :03:50. | :03:58. | |
consumption. The US delegation includes Secretary | :03:59. | :04:05. | |
of State John Kerry. The high`level meeting will focus on areas of | :04:06. | :04:11. | |
cooperation ranging from security to energy to agriculture. | :04:12. | :04:16. | |
Indonesians are at the polls today to elect a new president. It is down | :04:17. | :04:20. | |
to a tight race between two candidates. The Jakarta government, | :04:21. | :04:25. | |
who has a small lead over a former general in surveys. In the region, | :04:26. | :04:33. | |
they have 119 million eligible voters. The counting will start | :04:34. | :04:39. | |
after polls closed, which works out to noon local time. | :04:40. | :04:44. | |
Public sector workers increase have begun a 24`hour strike to protest | :04:45. | :04:49. | |
continuing cuts in government spending. Hospitals, tax offices and | :04:50. | :04:54. | |
archaeological sites are expected to be disrupted by this disruption. The | :04:55. | :04:59. | |
workers are protesting against austerity initiatives, including a | :05:00. | :05:03. | |
40% deduction to the salaries and pensions. The European commission, | :05:04. | :05:13. | |
the International Monetary Fund, the European Central bank, are | :05:14. | :05:21. | |
monitoring austerity measures that were conditions for a bailout worth | :05:22. | :05:26. | |
over 300 billion dollars. A new canal that would link the | :05:27. | :05:30. | |
Atlantic and Pacific is one step closer to becoming a reality. A | :05:31. | :05:37. | |
group in Nicaragua approved the waterways rich. The project aims to | :05:38. | :05:41. | |
challenge the Panama Canal. The alternative route will pass through | :05:42. | :05:46. | |
Lake Nicaragua from the Pacific to the Caribbean. The company has been | :05:47. | :05:52. | |
granted a concession to build the channel. I'd asked someone from | :05:53. | :05:59. | |
shipping Australia as to what the writ would mean the global trade. | :06:00. | :06:02. | |
Shipping is a very competitive industry. The margins are very slim. | :06:03. | :06:10. | |
An extra canal would certainly put pressure on prices and make some | :06:11. | :06:17. | |
savings. How much for economical will this be? That is hard to say at | :06:18. | :06:25. | |
this stage. When you hear of a $45 million investment and you know that | :06:26. | :06:28. | |
they will want a return, I imagine they will not be cutting too close | :06:29. | :06:34. | |
to the bone. The additional channel will provide an alternative to | :06:35. | :06:38. | |
shipping companies, gives them more flexibility in their booking times | :06:39. | :06:44. | |
and would be welcome. The Panama Canal currently has a lot of | :06:45. | :06:48. | |
bottlenecks and delays ships by 20`30 hours. This new channel will | :06:49. | :06:56. | |
make operations more efficient. The timing is probably not the best for | :06:57. | :07:02. | |
the Nicaragua Canal. The Panama Canal is being broadened and an | :07:03. | :07:06. | |
extra channel included. This will mean they should remove the | :07:07. | :07:09. | |
bottlenecks when the new expansion is completed in around 2016. But the | :07:10. | :07:15. | |
Nicaragua Canal has some real benefits. It is 500 or so miles less | :07:16. | :07:23. | |
of steaming to go to the Nicaragua Canal. How important is Asian trade | :07:24. | :07:29. | |
to this the waterway and how will Asian economies benefit from this | :07:30. | :07:36. | |
new channel? This is really a significant benefit to the Asian | :07:37. | :07:40. | |
trade. For a start, the new channel is meant to be deeper and wider. | :07:41. | :07:44. | |
Even the expanded Panama will not take the biggest ships that carry | :07:45. | :07:49. | |
the bulk cargoes from the east coast of South America. But this new canal | :07:50. | :07:56. | |
will be able to do so. That will save them many days of steaming. | :07:57. | :08:04. | |
Singapore's sovereign wealth fund says it is the fact that make its | :08:05. | :08:11. | |
investments grew at a slower pace. It spent one money buying stakes in | :08:12. | :08:20. | |
many different industries. One of the world's largest sovereign | :08:21. | :08:24. | |
wealth funds. They have stakes in many different sectors and | :08:25. | :08:26. | |
businesses, ranging from Chinese banks to telecommunication firms, | :08:27. | :08:29. | |
coffee and nuts, and even infant formula. Temasek has its hands in | :08:30. | :08:33. | |
varied sectors as a key part of Singapore's economy. It is headed by | :08:34. | :08:42. | |
the weight of the prime minister. Last year, returns have been hit by | :08:43. | :08:45. | |
exposure to the banking sector in China, where shares have fallen. `` | :08:46. | :08:48. | |
wife. The heads of its investment division blamed this on short`term | :08:49. | :08:53. | |
market volatility. China, in spite of all the talk, we still see | :08:54. | :08:58. | |
growing at around 7% per year. We do see China offering us attractive | :08:59. | :09:03. | |
returns in the medium term. So really our focus is on a number of | :09:04. | :09:06. | |
sectors in China which we think will benefit from those returns. You can | :09:07. | :09:10. | |
see our investments in the consumer sector, in juice companies and food | :09:11. | :09:13. | |
companies, in technology, Alibaba, and so on and so forth. All these | :09:14. | :09:21. | |
companies we think will benefit from the growth of the Chinese economy. | :09:22. | :09:26. | |
You are one of the world's largest sovereign wealth funds, but your | :09:27. | :09:28. | |
returns in 2013 underperformed the broader market. Shouldn't you be | :09:29. | :09:36. | |
doing a lot better? Sometimes to get the superior long`term returns, you | :09:37. | :09:39. | |
have to invest at times and accept short`term market volatility. You | :09:40. | :09:45. | |
know, you mentioned that the Chinese market has been depressed for the | :09:46. | :09:48. | |
last year, but that has actually given us opportunities to make | :09:49. | :09:53. | |
high`quality investments. And we think we will generate superior | :09:54. | :09:56. | |
returns for the long`term. So I really don't think one year is the | :09:57. | :09:59. | |
right length to look at us from a performance perspective. If you take | :10:00. | :10:04. | |
five or ten years, we have delivered returns in line with or in excess of | :10:05. | :10:16. | |
our cost of capital. Celebrating its 40th year since its founding, they | :10:17. | :10:20. | |
are stressing that the lower returns are just part of the bigger picture. | :10:21. | :10:25. | |
They planned to be in it for a warm hall. And they want the shareholders | :10:26. | :10:30. | |
to share in that journey. `` long haul. | :10:31. | :10:33. | |
Thank you for joining us. Here are the headlines: Brazil are | :10:34. | :10:46. | |
out of the World | :10:47. | :10:47. |