:00:14. > :00:24.Where will the money go? The US rate hike, where will it leave Asia's
:00:25. > :00:29.property market? And questions over England's preparation, and whether
:00:30. > :00:39.it was good enough, following devastating floods. Welcome to the
:00:40. > :00:43.programme. With the US rate hike out of the box, the focus has moved to
:00:44. > :00:47.the rest of the world. In Asia there has been little talk of raising
:00:48. > :00:50.rates, with many central banks cutting and pumping money into their
:00:51. > :00:55.economies to promote stronger growth. This divergence puts
:00:56. > :00:58.emerging markets in a fairly tough spot. If they keep lower rates they
:00:59. > :01:03.will continue to encourage investment or they risk capital
:01:04. > :01:07.outflow, which is money leaving the country and devaluing the currency.
:01:08. > :01:10.They could follow the lead of the US in raising rates, stemming the
:01:11. > :01:17.outflow but possibly stifling investment. In the past 24 hours
:01:18. > :01:20.since the decision, it has been completely mixed bag. Hong Kong has
:01:21. > :01:26.raised rates, the Philippines held steady, and Taiwan, surprisingly,
:01:27. > :01:34.have lower their rates. In a few hours we will hear from the bank of
:01:35. > :01:39.Japan. One answer to the uncertainty over the currencies is of course
:01:40. > :01:41.real estate. Put your money into bricks and mortar and you might be
:01:42. > :01:49.less vulnerable to currency fluctuations. Our guest says
:01:50. > :01:55.property investors have some certainty after waiting the decision
:01:56. > :01:58.for years. Eventually it has happened, and it has been so well
:01:59. > :02:03.signposted, I think there is a sense of relief within the markets. A lot
:02:04. > :02:07.of equity markets have bounced back. In terms of the property markets
:02:08. > :02:12.themselves, as you say we have seen Hong Kong lift interest rates,
:02:13. > :02:18.although I don't think it will have too much of an impact in the short
:02:19. > :02:22.term. It is all about next year, how fast and aggressively the Fed starts
:02:23. > :02:28.to lift interest rates. The countries that have currencies
:02:29. > :02:32.pegged to the US dollar, particularly Singapore, will be
:02:33. > :02:35.particularly impacted. If you keep everything equal, an increase in
:02:36. > :02:40.interest rates should have an impact on volumes and potentially pricing.
:02:41. > :02:46.It is good to be looking into 2016. Volumes and pricing you say, and it
:02:47. > :02:55.is just a slight hike, 25 basis points. What impact will that have
:02:56. > :02:59.the of us? Obviously an increase in interest rates increases mortgage
:03:00. > :03:06.costs, so for any new homebuyers the cost of buying property goes up, and
:03:07. > :03:14.again, this can have a dampening impact on demand. Also in terms of
:03:15. > :03:17.the debt for existing homeowners goes up. Monthly repayments will be
:03:18. > :03:23.higher. That can also have an impact on the wider economy, through the
:03:24. > :03:29.multiplier effect of people having less money to go out and spend on
:03:30. > :03:32.consumer goods. It can have a wider impact, so probably what we have to
:03:33. > :03:37.do is look at each of these markets individually and judge from the
:03:38. > :03:43.local demand's price situation. Hong Kong will feel at the top of the
:03:44. > :03:49.market. Floods in the Indian state of Tamil Nadu have killed more than
:03:50. > :03:52.300 people in the last few weeks. The cost to the local economy has
:03:53. > :03:58.been estimated at hundreds of millions of dollars. Now the cleanup
:03:59. > :04:01.is under way, we went to the state capital of Chennai to find out how
:04:02. > :04:04.people and businesses are getting back to normal.
:04:05. > :04:12.The rain has stopped and now it is time to cry and salvage what they
:04:13. > :04:15.can. At this paper company they are trying to get stock to a drier
:04:16. > :04:21.location, away from the flooded factory. Diaries, calendars and
:04:22. > :04:27.stationery were all made here, but most machinery and even the office
:04:28. > :04:32.furniture is ruined. TRANSLATION: I have incurred a loss of nearly
:04:33. > :04:36.$40,000. We cannot take any orders now. All the customers I had have
:04:37. > :04:41.left us. Now I need to start from scratch. After all of the struggle
:04:42. > :04:46.to run this factory, absolutely everything is gone. I have no idea
:04:47. > :04:52.what I'm going to do next. You find all sorts of small businesses here,
:04:53. > :04:57.from producers of car parts and pharmaceuticals to Robert processing
:04:58. > :05:03.factories and exporters. At these unprecedented floods have left their
:05:04. > :05:07.operations completely ruined. People tell me they have no idea how long
:05:08. > :05:12.it will be until they can get it to work. Tamil Nadu is one of the most
:05:13. > :05:16.industrialised states in the country, and an immediate
:05:17. > :05:21.contributed to India's economy. Local car companies like Ford and
:05:22. > :05:24.BMW have car factories here, so suppliers like this one have base
:05:25. > :05:33.themselves here as well. It is also India's second-biggest hub.
:05:34. > :05:38.Questions are now being asked about how so much can happen from just a
:05:39. > :05:41.few days of rain. Some say it is because the city has been developed
:05:42. > :05:46.without enough thought given to the environment. This is not an adequate
:05:47. > :05:53.response, we need to see a long-term plan in place, and we need to invest
:05:54. > :06:02.in research into many of the structures. Fort Chennai and other
:06:03. > :06:06.parts of Tamil Nadu, it will take months for people and businesses to
:06:07. > :06:11.pick themselves up and get back to normal. But the bigger question of
:06:12. > :06:14.how to improve basic infrastructure to make sure natural disasters have
:06:15. > :06:18.less devastating results will take much longer to cleanup.
:06:19. > :06:25.You can watch that and other stories on India business report this
:06:26. > :06:32.weekend at these times on BBC World News. Police in China have
:06:33. > :06:35.reportedly detained ten company officials were fabricating pollution
:06:36. > :06:38.data. The environment ministry said it has stepped up investigations
:06:39. > :06:43.following public discontent over pollution. This comes just a week
:06:44. > :06:47.after the red alert for smog in Beijing, which cut production in
:06:48. > :06:52.that present limited cars on the road. The world's energy demand will
:06:53. > :06:57.have grown by nearly one third by 2040, according to the International
:06:58. > :07:00.energy agency. It predicts that growth will come entirely from
:07:01. > :07:14.developing countries, but how will the energy be generated? We spoke to
:07:15. > :07:18.an executive director of the IEA. Today we are releasing a report, and
:07:19. > :07:25.the news after 20 years of strong growth of
:07:26. > :07:31.global coal demand, now in 2014 we have found out that it has stalled,
:07:32. > :07:36.and in 2015 we receive for the first time a decline in the global coal
:07:37. > :07:46.consumption. This is mainly driven by China, because China is using
:07:47. > :07:55.half of the world's coal, and it is restructuring, going to heavy --
:07:56. > :07:57.going from heavy industry economy to lighter industry. But here in South
:07:58. > :08:06.East Asia we see that main choice for many power
:08:07. > :08:14.producers. Why? Because it is cheaper. The big
:08:15. > :08:29.planets, which are low efficiency, sub critical plants. They should at
:08:30. > :08:29.least be using high-efficiency coal plants
:08:30. > :08:40.significantly lower. Obviously the price of oil is at a low at the
:08:41. > :08:44.moment. How much is that effecting development and also
:08:45. > :08:49.energy, renewable energy sources? It is a very risky development. What is
:08:50. > :08:59.happening is that this expect all investments are declining
:09:00. > :09:06.more than 20%, and next year, 2016, it will continue to decline. We have
:09:07. > :09:15.never seen Thomas Ince 30 years, oil investment declining two years in a
:09:16. > :09:22.row. In a few years we will have no more oil production. We will see
:09:23. > :09:28.significant upward pressure on prices in the near future. The
:09:29. > :09:36.may well be an excuse for some governments not to strongly push
:09:37. > :09:37.renewable energy and energy efficiency, therefore as an energy
:09:38. > :09:53.agency we are warning of 10 cents is reportedly taking
:09:54. > :09:58.control of the incredibly popular online game, league of legends. It
:09:59. > :10:02.is buying up the rest of the shares of the company, and the financial
:10:03. > :10:04.terms of the acquisition had not been revealed.
:10:05. > :10:10.Let's have a look at the markets, because we know Asian markets have
:10:11. > :10:15.opened lower, including Hong Kong's Hang Seng, which is already down 1%.
:10:16. > :10:22.Hong Kong also raised interest rates, taking their cues from the
:10:23. > :10:26.Federal Reserve. We are seeing most markets lower, taking their cues
:10:27. > :10:36.from the US, so oil prices remain low.
:10:37. > :10:42.The top stories this hour: The first arrest is made in connection
:10:43. > :10:50.with the San Bernardino shootings that killed 14.