23/09/2014

Download Subtitles

Transcript

:00:00. > :00:00.with the company's accounts. The retailer overstated its profits and

:00:00. > :00:13.the share price has plunged. Now on BBC News all the latest business

:00:14. > :00:18.news live from Singapore. Eyes on China. Fresh manufacturing

:00:19. > :00:24.data from the Maitland will tell us more about their economy ``

:00:25. > :00:28.mainland. Fighting greenhouse emissions from around the world. The

:00:29. > :00:39.UN comes together to battle climate change in New York. Welcome to Asia

:00:40. > :00:43.Business Report. I Rico Hizon. The economy of China has had a bumpy

:00:44. > :00:48.ride in recent months and the latest numbers from manufacturing will be

:00:49. > :00:56.closely watched for signs that there is more pressure on gross. Falling

:00:57. > :01:00.house prices are already a cause for concern with the property market

:01:01. > :01:08.accounting for 15% of GDP. How worried should investors be? I

:01:09. > :01:13.earlier spoke to an investor and asked her if she was concerned. It

:01:14. > :01:21.is more complicated than picking growth over a reformed agenda. This

:01:22. > :01:24.was put in place last October. There are pockets that are struggling but

:01:25. > :01:29.it is important to remember that it is quality of growth that is

:01:30. > :01:34.important. It is flowing but we are seeing a transition from an

:01:35. > :01:38.investment led GDP model to one of private consumption of services.

:01:39. > :01:44.Where do we see the Chinese economy going forward? A bumpy ride in terms

:01:45. > :01:47.of the economic environment to cause the reforms agenda is very

:01:48. > :02:03.significant and the various policies that are put into lace. `` place.

:02:04. > :02:05.And we have already seen the stimulus initiatives that have

:02:06. > :02:10.boosted the Chinese economy but we have also seen that dip over the

:02:11. > :02:16.last couple of months. The latest manufacturing data coming out today

:02:17. > :02:21.come up what are you looking at? Consensus is that it will be just a

:02:22. > :02:26.low 50. Pockets will be offset by better`than`expected data. The

:02:27. > :02:29.property market should be monitored. What would you like the

:02:30. > :02:38.Chinese government to do at this point to smooth the volatility

:02:39. > :02:41.over? If you look at the growth with low expectations, it is still very

:02:42. > :02:48.attractive versus where we are in the world as a whole. It goes back

:02:49. > :02:56.to the reforms agenda which is a stimulus plan, the anticorruption

:02:57. > :02:59.measures which are related to the austerity measures we have in

:03:00. > :03:07.place. Where are you telling your investors to put their money? It is

:03:08. > :03:10.a balance and it is very stock specific. Attractive consumer

:03:11. > :03:14.related names and old Chinese names which are benefiting from enterprise

:03:15. > :03:23.reform that we are seeing. It is a stock pickers delight to some

:03:24. > :03:27.degree. In other news, the supermarket giant Tesco has this

:03:28. > :03:32.then did some of its top executives after its half`year profit guidance

:03:33. > :03:37.was overstated by almost a quarter of its expected profits for the

:03:38. > :03:44.period. Shares in the company fell by more than 11% after the news. The

:03:45. > :03:46.US Securities and Exchange Commission has awarded a record

:03:47. > :03:51.pay`out to an anonymous whistleblower who live outside the

:03:52. > :03:57.US. It is the largest payment ever given to a whistleblower by

:03:58. > :03:59.regulators. They said the person gave crucial information that helped

:04:00. > :04:07.the agency under cover a fraud that was difficult to detect. The White

:04:08. > :04:11.House says it will practice on tax avoidance deals which are known as

:04:12. > :04:17.inversions. This will impact US companies merging with companies in

:04:18. > :04:21.a country with a lower tax rate. President Obama says the tax

:04:22. > :04:27.initiatives will make these deals less attractive. The strength of the

:04:28. > :04:31.Chinese economy is key to the growth plans of many businesses and hotel

:04:32. > :04:36.groups are no exception. With growing numbers of Chinese

:04:37. > :04:40.tourists, this hotel group hopes to double its residents in Asia over

:04:41. > :04:51.the next few years, opening a new hotel every week. In Tianjin, our

:04:52. > :04:56.correspondent spoke of growth prospects. As long as the new

:04:57. > :05:02.government continues growth in the seven and a half percent region,

:05:03. > :05:08.that is extremely good for travel because when consumers have

:05:09. > :05:12.disposable income, they travel. How is that travelling Chinese public

:05:13. > :05:18.changing the game for the entire industry and people like you? They

:05:19. > :05:28.are definitely changing the game. If I take an example like the

:05:29. > :05:38.Maldives, China is now third largest geographic source of business ``

:05:39. > :05:47.their. I think travel is going to be a boom. Our tagline is, the Chinese

:05:48. > :05:50.are coming. What are the biggest risks to your business model if you

:05:51. > :05:58.look at property downturns at the moment? Certainly that is a big risk

:05:59. > :06:07.for the hotel industry because I'm number of hotels are affected. They

:06:08. > :06:13.also are viewed as infrastructure in China to a certain degree. As far as

:06:14. > :06:17.some form of softening as you are seeing today in the real estate

:06:18. > :06:26.market, it is an issue. Do you see that turning into a full`blown

:06:27. > :06:37.crisis? Not yet stop it is `` not yet. Some governments have

:06:38. > :06:45.overreached and others have relaxed on this front, that his previous

:06:46. > :06:54.restrictions on buying a second home in cash. How worried are you? It is

:06:55. > :06:57.a concern but I think one has to believe that if there is a country

:06:58. > :07:03.that can manage this, it would be China. They have managed a number of

:07:04. > :07:07.clearly concerning issues extremely well over time and I have good

:07:08. > :07:13.confidence that they will manage at this time. Also you have large

:07:14. > :07:21.growth behind all of this. It solves a lot of problems. Business leaders

:07:22. > :07:24.and heads of state from around the world are heading to New York for a

:07:25. > :07:34.United Nations backed lime at Summit which will focus on the world's

:07:35. > :07:41.biggest greenhouse gas emissions. Some leaders are not attending and

:07:42. > :07:47.earlier I spoke to an Australian correspondent about whether or not

:07:48. > :07:49.that was a concern. It depends what the government representatives say.

:07:50. > :07:56.It is not as if they are not represented. We have leaders from

:07:57. > :08:01.125 other countries. My country is represented by a senior person as

:08:02. > :08:06.are the Indian and Chinese governments so what matters most is

:08:07. > :08:08.what they say. How much consensus is there among the countries

:08:09. > :08:16.participating that something needs to be done to fight climate change?

:08:17. > :08:20.I think there is a sense of building momentum as well as growing

:08:21. > :08:31.anxiety. That is what we are hearing today when we hear from Ban Ki`moon

:08:32. > :08:37.and other business leaders. The costs are hitting and they are

:08:38. > :08:42.hitting now. Taking action can lead to opportunity that has benefits,

:08:43. > :08:45.for example in air pollution and the health benefits that come from

:08:46. > :08:54.that. There is a different momentum here, a pivot from looking at who

:08:55. > :08:58.will bear the greatest burden. As you say there is a change of

:08:59. > :09:03.momentum but what kind of challenges in the region in terms of getting

:09:04. > :09:10.business on the same page and convincing them that changes need to

:09:11. > :09:18.be made? A number of things. There is wariness about what is going on

:09:19. > :09:21.in the west of the world `` rest. But there is an improving dialogue

:09:22. > :09:26.between the US and China who are building a strategic alliance. I

:09:27. > :09:32.think we are beginning to see from policymakers in places like China,

:09:33. > :09:36.Korea and elsewhere, that these policies can be implemented and it

:09:37. > :09:42.doesn't mean death and destruction to local business and economies.

:09:43. > :09:47.That is important but we have gotten massive urbanisation happening,

:09:48. > :09:50.massive investment needed in infrastructure across the region and

:09:51. > :10:02.it is really important that those are directed well. Before we go,

:10:03. > :10:07.here is a look at the markets. Asia is currently slipping in midmorning

:10:08. > :10:12.on Tuesday trade due to growth worries in China and a slide in the

:10:13. > :10:24.price of oil which has pushed the stock market to its biggest loss in

:10:25. > :10:38.almost seven weeks. Those are the markets. Thank you for investing

:10:39. > :10:42.your time with us. I'm Mike Embley. The top stories

:10:43. > :10:43.this hour. We