22/01/2016

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:00:00. > :00:15.Now on BBC News all the latest business news live from Singapore.

:00:16. > :00:20.Oil dominates discussions as China's president visits the Middle

:00:21. > :00:26.East. We ask what he hopes to achieve. How businesses are trying

:00:27. > :00:39.to revamp the way tea is consumed in India. Welcome to Asia Business

:00:40. > :00:44.Report. China's president Xi Jinping is on a five-day trip to the Middle

:00:45. > :00:48.East and relations with his country's oil suppliers are high on

:00:49. > :00:53.the agenda. He is already visited Saudi Arabia which is China's

:00:54. > :00:57.biggest oil supplier and she is also headed to Iran which is the fifth

:00:58. > :01:00.largest exporter of oil to China. Let's take a look at where oil

:01:01. > :01:07.prices are right now, because they have been trading over $29 a barrel

:01:08. > :01:11.and this has reversed some of the recent lows we have seen over the

:01:12. > :01:21.last few weeks. Earlier I asked an oil analyst what he stands to gain?

:01:22. > :01:26.If you look at these two economies, Saudi Arabia and Iran as producers,

:01:27. > :01:30.a supply more than 25% of China's oil so although China has

:01:31. > :01:34.traditionally had a strategy to diversify its oil supplies within

:01:35. > :01:39.the Middle East, there are two of the top suppliers. At the same time,

:01:40. > :01:41.it is a perfect opportunity not to antagonize Saudi Arabia at a time

:01:42. > :01:48.when around is returning to the global scene. -- Iran. This would be

:01:49. > :01:54.a great opportunity for Saudi Arabia to create an outlet, and four I ran

:01:55. > :02:02.in China which is their biggest market and that which is expected to

:02:03. > :02:09.grow the most. You mentioned that relationship and it is very tenuous,

:02:10. > :02:18.it is rife with tension, between the Saudis and the Iranians. What are

:02:19. > :02:23.the odds that OPEC cuts production this year to try to boost prices

:02:24. > :02:26.which are at historic close? The first thing we need to see is the

:02:27. > :02:35.declining US production because that is the ultimate objective of the

:02:36. > :02:39.Saudi strategy in OPEC. To produce that will. So as soon as we see a

:02:40. > :02:43.significant drop, and by that, I mean half a million barrels per day

:02:44. > :02:48.in total of US production, then Saudi can come back and say that the

:02:49. > :02:54.strategy had worked. They kicked out whatever they could in the market in

:02:55. > :02:58.terms of non- OPEC production and at the same time, by the middle of this

:02:59. > :03:04.year, according to the international energy agency, we should see an

:03:05. > :03:07.output of 6000 barrels per day from Iran. They will be much more

:03:08. > :03:11.comfortable in their total output and at that point in the second half

:03:12. > :03:17.of this year, towards the end of this year, there could be talks

:03:18. > :03:20.within OPEC, independent of the tensions that happen bilaterally

:03:21. > :03:25.between Saudi Arabia and Iran that could allow the organisation to

:03:26. > :03:29.redesign individual quotas and cut. This week China revealed its economy

:03:30. > :03:33.had hit the slowest pace of growth for a quarter of a century. After

:03:34. > :03:37.years of rapid economic development, how can the government

:03:38. > :03:48.achieve more sustainable expansion? It is a hot topic at the World

:03:49. > :03:53.Economic Forum in Davos where our correspondent spoke to the national

:03:54. > :03:56.treasury secretary. I think they have tough challenges to meet and

:03:57. > :04:00.policies that would make a difference. The question is whether

:04:01. > :04:03.they stick to them and that is something that takes political

:04:04. > :04:07.leadership. They know the policies they need to have in place. Do you

:04:08. > :04:12.think they're trying to gain an unfair vantage with their currency

:04:13. > :04:14.devaluation? I think they are in a very challenging position because

:04:15. > :04:20.after a long period of being fixed to the dollar, we're seeing a

:04:21. > :04:27.strengthening dollar make them less competitive in other countries than

:04:28. > :04:33.they would have been otherwise. Crime to maintain parity to the

:04:34. > :04:38.dollar and other currencies is challenging -- trying. Doing it in a

:04:39. > :04:42.way that is not communicated clearly is confusing. People are scared

:04:43. > :04:44.because of the way they have done it, not because they're try to

:04:45. > :04:54.manage through different set of policy choices that the we have to

:04:55. > :05:00.communicate our policies clearly -- that we have. We have to communicate

:05:01. > :05:05.our policies clearly and get our policies right. European and US

:05:06. > :05:07.stocks have rallied after the European Central Bank chief

:05:08. > :05:12.suggested the ECB is willing to offer more stimulus at its next

:05:13. > :05:14.meeting in March. He cited a significant change in economic

:05:15. > :05:23.conditions with oil prices plunging and pushing inflation lower. GM has

:05:24. > :05:28.opened its first Cadillac factory in China to target the country's

:05:29. > :05:32.growing but crowded luxury car market. The joint venture with

:05:33. > :05:38.Shanghai Automotive Industries will be able to produce 160,000 vehicles

:05:39. > :05:45.per year. China is the fastest growing auto market but sales have

:05:46. > :05:48.slowed in the last year. T is India's most widely consumed

:05:49. > :05:53.beverage but it is usually drunk at home or bought from small roadside

:05:54. > :05:58.tea stalls -- tea. Coffee dominates the country's cafes and now some

:05:59. > :06:04.entrepreneurs are trying to give tea a makeover by reinventing how it is

:06:05. > :06:11.consumed and sold. Now we go to our correspondent. A bubbling pot of

:06:12. > :06:14.tea. That is what most Indians wake up to each morning but the humble

:06:15. > :06:22.tea may now be making a journey towards rediscovery. This tea room

:06:23. > :06:26.in Mumbai Indians one of many restaurants that have come about

:06:27. > :06:30.recently which centred around tea. In a country where this is virtually

:06:31. > :06:36.the national drink, it has taken a long time for tea houses to come

:06:37. > :06:40.about. People do not realise the commercial value of tea because of

:06:41. > :06:47.the massive availability. Be produced close to 118 million kilos

:06:48. > :06:52.of tea. People call it a poor man's drink, everyone has it to start

:06:53. > :06:59.their day, and nobody marketed it like coffee was done earlier. When

:07:00. > :07:02.I'm craving a cup of tea, like many other Indians, this is the kind of

:07:03. > :07:08.place I would normally come to where it is normally served in these small

:07:09. > :07:13.glass cups. This has a charm of its own, but if you wanted to sit away

:07:14. > :07:17.from the heat and the noise, perhaps working on your laptop, you are

:07:18. > :07:21.virtually forced to have a cup of coffee because so far, you couldn't

:07:22. > :07:27.get a wide variety of good tea options in a cafe kind of setting.

:07:28. > :07:30.That is what this man is hoping to change. He's trying to build places

:07:31. > :07:38.that give you the same environment as a coffee shop but serving tea

:07:39. > :07:42.instead. Founded three years ago, he has more than a dozen stores in

:07:43. > :07:45.Delhi and Mumbai and is expanding rapidly, hoping to reach as many as

:07:46. > :07:51.a thousand outlets in the next three years. What coffee is to the West,

:07:52. > :07:55.tea is to this country. It is a requirement for a good place to sit

:07:56. > :08:05.and for the daily cup of tea that you are drinking anyway. For

:08:06. > :08:09.India's tea entrepreneurs, the challenge will be brewing something

:08:10. > :08:18.new and different yet with a taste that is familiar. Returning to our

:08:19. > :08:27.coverage of the World Economic Forum that is taking place in Davos, there

:08:28. > :08:28.are many successful entrepreneurs attending but how effective are

:08:29. > :08:32.these business tycoons when attending but how effective are

:08:33. > :08:36.to giving back? Now we go to our correspondent. One of the

:08:37. > :08:40.overarching themes of the World Economic Forum here in Davos is how

:08:41. > :08:45.the countries of the world can best benefit from philanthropy. Here

:08:46. > :08:51.billionaires and charities can rub shoulders but can they establish

:08:52. > :08:54.common goals? So, a big effort for the next few years is how we find a

:08:55. > :08:58.language to talk to each other so we are very clear about who is doing

:08:59. > :09:10.what, how we measure it and how we really understand not only outcomes

:09:11. > :09:10.but motives. Cabral's top 27 philanthropic organizations spend

:09:11. > :09:10.some $15 billion world's. Of that about two thirds

:09:11. > :09:22.goes towards global there is a geographic mismatch. Of

:09:23. > :09:27.the top 27, only two are from outside North America and Europe. Is

:09:28. > :09:32.it now time for the culture of philanthropy to extend to emerging

:09:33. > :09:36.markets? Does the idea of giving back need to be planted at a young

:09:37. > :09:42.age? In countries where the practice is less established? I get really

:09:43. > :09:45.annoyed and frustrated that people think you have got to have a lot of

:09:46. > :09:51.money before you can become a philanthropist or become

:09:52. > :09:57.charitable. A child can be exposed to her role model of a parent or a

:09:58. > :10:03.teacher and volunteer their time. So philanthropy must be carved into all

:10:04. > :10:05.parts of the community here at the World Economic Forum and not just

:10:06. > :10:16.remain the preserve of a small band of billionaires. And before we go

:10:17. > :10:20.let's have a look at the markets. They are all rallying this Friday,

:10:21. > :10:27.reversing those huge losses we saw on Wednesday, especially the Nikkei

:10:28. > :10:32.and Hang Seng. That is mainly because of all the promising

:10:33. > :10:33.economic stimulus from Europe and the central Bank of Japan. That is

:10:34. > :10:38.all for this edition. In the US a state of emergency has

:10:39. > :10:44.been declared in the capital and across several states as an

:10:45. > :10:50.historic snow blizzard approaches. Russia has warned that a British

:10:51. > :10:53.inquiry which found that