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China's factories have churned out the highest output in six months. | :00:00. | :00:25. | |
Beijing's stabilising the economy. Reports that one of China's | :00:26. | :00:29. | |
best-known businessmen has returned home after assisting with an | :00:30. | :00:30. | |
investigation. Good morning. Great to have you with | :00:31. | :00:44. | |
us. I am Rico Hizon in Singapore. The chairman of the Chinese | :00:45. | :00:50. | |
conglomerate has returned home after mysteriously disappearing last | :00:51. | :00:57. | |
week. Sometimes described as China's Warren Buffett, he was | :00:58. | :01:01. | |
assisting authorities with an investigation. Let's hear from our | :01:02. | :01:08. | |
Hong Kong correspondent. It is still a mystery what this was about. That | :01:09. | :01:14. | |
is right. Certainly, the latest, from the Chief Executive of that | :01:15. | :01:18. | |
group, in a conference call with investors yesterday, he gave more | :01:19. | :01:25. | |
details about him, but also sought to play down this incident. Of | :01:26. | :01:30. | |
course, the entire financial community in China was shocked last | :01:31. | :01:33. | |
week when a magazine broke the news he had seemingly disappeared. It | :01:34. | :01:40. | |
might have been that he was in police custody. Many questions still | :01:41. | :01:44. | |
about what investigation he might have been helping with. Last week, | :01:45. | :01:50. | |
an executive told me that he himself was not being investigated. Only | :01:51. | :01:56. | |
assisting. They confirmed that in a press release on Friday night. A few | :01:57. | :02:02. | |
more details, let me share them with you, what was said, according to the | :02:03. | :02:08. | |
Reuters news agency, a quote, we trust that the chairman is a wise | :02:09. | :02:13. | |
man and will actively fulfil his duties to assist the investigation | :02:14. | :02:15. | |
as soon as possible is. That is according to the company president. | :02:16. | :02:23. | |
-- possible. He also said the company itself is not in crisis. The | :02:24. | :02:27. | |
financial situation is very healthy. Rico Hizon, this comes at an | :02:28. | :02:33. | |
interesting time for the company. The group is a well-known Chinese | :02:34. | :02:36. | |
conglomerate and is really scouring the world for acquisitions. To date, | :02:37. | :02:45. | |
it has spent $30 billion on foreign acquisitions and intends to do much | :02:46. | :02:48. | |
more. In many ways, this company has to be much more transparent about | :02:49. | :02:52. | |
what is happening relative to other Chinese companies who have also been | :02:53. | :02:57. | |
affected by these types of investigations. We will have to | :02:58. | :03:02. | |
leave it there, thank you so much for updating us on that chairman. | :03:03. | :03:09. | |
Hong Kong. Alibaba will pay more than $265 billion for The South | :03:10. | :03:14. | |
China Morning Post. The deal was announced on Friday. The value of | :03:15. | :03:18. | |
the agreement has just been revealed in a statement to the Hong Kong | :03:19. | :03:22. | |
stock exchange. The sale of a newspaper to a Chinese company has | :03:23. | :03:27. | |
brought about concerns about the independence. A health check over | :03:28. | :03:30. | |
the weekend with new economic reports coming in. Stronger than | :03:31. | :03:37. | |
normal. A a six-month high of the growing at an annual 6.2%. -- A new. | :03:38. | :03:44. | |
The strongest expansion this year. Is this a positive sign? We have | :03:45. | :03:51. | |
this man's viewed. There is reason for optimism. -- view. We see them | :03:52. | :03:58. | |
coming out of this economic recession, but we think the first | :03:59. | :04:05. | |
quarter will be difficult again. It will be difficult. The numbers are | :04:06. | :04:09. | |
in the ballpark expected. That is positive. The month of November, you | :04:10. | :04:19. | |
had, what you call, Singles' Day. Millions of people shopping on | :04:20. | :04:26. | |
line. The likes of Alibaba made tons of money. $30 billion. The biggest | :04:27. | :04:31. | |
retail event in the world. Yes, that helps. But these are year-on-year | :04:32. | :04:40. | |
numbers. It was 14 billion Vizier and 10 billion last year. -- this | :04:41. | :04:46. | |
year. They are healthy. They are good signs. They are clearing out | :04:47. | :04:49. | |
his Elche inventories. It will take time to clear this out. -- this | :04:50. | :04:58. | |
inventory. What about what might happen in the US this week. How will | :04:59. | :05:03. | |
this impact economies and China in particular? The interest rate hike | :05:04. | :05:08. | |
itself will affect China's currency. It recalibrated its position on | :05:09. | :05:15. | |
Friday. That means, as the US hikes the interest rates and the dollar | :05:16. | :05:21. | |
becomes more valuable and appreciates, China may devalue their | :05:22. | :05:24. | |
currency slightly. They may break that pair with the US dollar. That | :05:25. | :05:29. | |
may make China more affordable to people outside of it quite also, the | :05:30. | :05:38. | |
falling oil prices. -- it. We are not quite there yet on the | :05:39. | :05:43. | |
commodities numbers. They will still continue to fall for a little while. | :05:44. | :05:45. | |
In the first half, they will continue to fall. That will impact | :05:46. | :05:52. | |
their import goods as well. If you have a falling Chinese currency, a | :05:53. | :05:57. | |
depreciating Chinese currency, and falling commodities prices, then, | :05:58. | :06:02. | |
Chinese exports should start to look up at some point in the second | :06:03. | :06:08. | |
quarter. Tony Nash. Confidence in Japan. Holding steady in the three | :06:09. | :06:13. | |
months till December. Some fear it may not last. Their index reveals | :06:14. | :06:18. | |
sentiment that they stood at plus 12. From the Fujitsu Research | :06:19. | :06:31. | |
Institute. We had a major deterioration in sentiment during | :06:32. | :06:34. | |
the summer and after that during Fall we had major slowdowns in Asia | :06:35. | :06:39. | |
affecting some companies. The companies are flat. -- fall. We | :06:40. | :06:48. | |
think it is basically not that bad. That is the sentiment. The outlook | :06:49. | :06:52. | |
for next year is much more tricky. Much of the good news, low oil | :06:53. | :06:57. | |
prices and a push from the micro policy side is out of the charts. | :06:58. | :07:01. | |
Next year, it might be, well, not that easy. We also saw a turnaround | :07:02. | :07:07. | |
in the GDP numbers for the July-September quarter. It was one | :07:08. | :07:12. | |
of growth. But the service is sector is also reflecting weak domestic | :07:13. | :07:18. | |
consumption. Domestic consumption has settled. It is settled. In | :07:19. | :07:26. | |
Japan, they are ageing gradually, they are preparing, not getting over | :07:27. | :07:29. | |
the top because of market policies, but they are not cutting back that | :07:30. | :07:35. | |
much. We saw major change in terms of investment outlook and what | :07:36. | :07:37. | |
companies are doing. That is where sentiment becomes important. | :07:38. | :07:43. | |
Companies did not buy the overall big impact of a slowdown in Asia. | :07:44. | :07:47. | |
They are protected by the comparatively weak yen. They have | :07:48. | :07:52. | |
settled and a growing again. They can invest in smaller economies. | :07:53. | :08:01. | |
Briefly, steady among manufacturers, has Japan already pulled out of a | :08:02. | :08:07. | |
recession? Yeah. Definitely. Martin Schulz. In the wake of the financial | :08:08. | :08:13. | |
crisis of 2008, interest rates were cut globally to produce growth. But | :08:14. | :08:18. | |
the US bank is looking set to raise the cost of borrowing for the first | :08:19. | :08:24. | |
time since the crash. Annual rate increases will be small and gradual, | :08:25. | :08:26. | |
but they will still have some knock-on effects. We report on how | :08:27. | :08:33. | |
this could affect India's economy. Here on the Bombay stock exchange | :08:34. | :08:40. | |
and Mumbai, the shares have fallen more than 5% in 2015. And, the | :08:41. | :08:45. | |
moment the interest rates go up in the US, they are likely to fall | :08:46. | :08:50. | |
further. That is because if the US offers better returns through higher | :08:51. | :08:54. | |
rates it is a good chance that investors will move more of their | :08:55. | :08:57. | |
money there and out of Indian businesses that are generally seen | :08:58. | :09:04. | |
as riskier. It is not just Indian shares that are falling. The value | :09:05. | :09:07. | |
of the Indian currency is at its lowest against dollar in more than | :09:08. | :09:12. | |
two years. That is because investors are selling emerging currencies, | :09:13. | :09:16. | |
including India's and buying dollars. That means imported | :09:17. | :09:22. | |
products become more costly. Expect to see imported items all costing | :09:23. | :09:34. | |
more. India's biggest import is oil. The country has done well out of the | :09:35. | :09:38. | |
dramatic fall in crude prices over the last two months, but the oil's | :09:39. | :09:45. | |
priced in dollars, that could get passed on through higher petrol and | :09:46. | :09:52. | |
diesel prices. -- price. What does this mean for businesses? Rising oil | :09:53. | :09:56. | |
prices will affect transport prices. Imported raw materials like | :09:57. | :10:03. | |
this will become more expensive, squeezing profit margins. Another | :10:04. | :10:06. | |
problem is that many Indian companies have high levels of dollar | :10:07. | :10:12. | |
debt. Rising interest rates will increase their costs, making them | :10:13. | :10:19. | |
more profitable. It is not all bad news. If you are an exporter, a | :10:20. | :10:26. | |
weaker rupee means that you can have greater export payments. It will be | :10:27. | :10:31. | |
decided here at the central bank of the country. They have already cut | :10:32. | :10:38. | |
interest rates to 6.7% this year. More cuts to make borrowing cheaper | :10:39. | :10:44. | |
and encourage more growth. The bank's governor is likely to be | :10:45. | :10:47. | |
hesitant to cut rates further as will it even less attractive for | :10:48. | :10:52. | |
foreign investors. When the US rate hike comes, it will not be a | :10:53. | :10:56. | |
surprise that the impact on India is not fully understood. Thank you for | :10:57. | :11:01. | |
investing your time with us. I am Rico Hizon. Goodbye for now. | :11:02. | :11:16. | |
Shaker Ahmer, the last British man to be released from Guantanamo Bay, | :11:17. | :11:20. |