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Now on BBC News, all the latest business news live from Singapore. | :00:00. | :00:10. | |
More dismal numbers from Japan. The latest figures show the economy | :00:11. | :00:19. | |
contracted 1.4% in the last quarter. The Chinese markets reopen after the | :00:20. | :00:26. | |
week-long New Year holiday. Is it good news or will it bear a monkey | :00:27. | :00:34. | |
on its back? Good morning, Asia. Glad you can join us for this Monday | :00:35. | :00:41. | |
edition. We start with Japan. The latest growth figures are out, | :00:42. | :00:49. | |
revealing the country's GDP has shrunk 1.4% in the fourth quarter | :00:50. | :00:54. | |
compared with the year before. The figures are considered a measure of | :00:55. | :00:57. | |
the effectiveness of government policy. What does it mean for the | :00:58. | :01:06. | |
Prime Minister's reforms? Earlier I spoke with my correspondent. No one | :01:07. | :01:12. | |
is talking about the death of Abenomics yet but we are three years | :01:13. | :01:16. | |
into it and we are where we were three years ago in terms of where | :01:17. | :01:21. | |
the economy is. Two things are happening, one is domestic | :01:22. | :01:23. | |
consumption has not grown to waive Abenomics was supposed to make it. | :01:24. | :01:28. | |
The other thing that has hit Japan hard, and why we have these figures | :01:29. | :01:33. | |
today, is that exports have fallen as well. Over three years exports | :01:34. | :01:37. | |
have done well but the world economy is slowing down and China is slowing | :01:38. | :01:44. | |
down. In the last few weeks we have seen the appreciating yen which will | :01:45. | :01:49. | |
hurt exports going forward. It is a pretty bad outlook for the Japanese | :01:50. | :01:52. | |
economy at the beginning of the year. Exports has been the growth | :01:53. | :01:58. | |
engine of the Japanese economy. That is affected by the global slowdown. | :01:59. | :02:02. | |
Domestic consumption is not taking off. The population is growing old | :02:03. | :02:09. | |
and shrinking. This is the conundrum that the Prime Minister and his team | :02:10. | :02:13. | |
have - how do you get Japanese people to spend money again? The | :02:14. | :02:21. | |
idea has been to engage in quantitative easing for the last | :02:22. | :02:26. | |
three years but it has not have the desired effect because the | :02:27. | :02:29. | |
fundamentals of the economy are driven by demographics. Japan is | :02:30. | :02:34. | |
growing old and the population is shrinking. In 2020 it will be | :02:35. | :02:40. | |
shrinking by 600,000 people a year. In that situation getting the | :02:41. | :02:44. | |
economy to grow again is difficult. The fact that the economy is doing | :02:45. | :02:49. | |
as well as it is some say it is not a bad result. It just shows how | :02:50. | :02:56. | |
difficult it is when you have a shrinking population to keep growth | :02:57. | :03:02. | |
going in your economy. Many economists are saying what the Prime | :03:03. | :03:05. | |
Minister has two launch is the structural arrow to make the economy | :03:06. | :03:10. | |
more productive but they have been slow to move things around --to | :03:11. | :03:14. | |
launch. They have been very slow to move on structural reform. It is a | :03:15. | :03:20. | |
difficult thing to do in an ageing society. Japan is a conservative | :03:21. | :03:24. | |
country with a conservative culture. Many corporations are controlled by | :03:25. | :03:30. | |
old managers. And this makes reform very hard. And the big one is | :03:31. | :03:35. | |
immigration. The Japanese people, the government, don't want more | :03:36. | :03:40. | |
immigration. Despite the poor fundamentals the Nikkei to divide is | :03:41. | :03:45. | |
up 4% at this hour. Chinese sharemarket have opened after a | :03:46. | :03:50. | |
week-long break because of the Chinese New Year period. The | :03:51. | :04:00. | |
Shanghai Composite Index is down 2.6%. The Hang Seng index is going | :04:01. | :04:06. | |
in the opposite direction, headed north, up 2.1%, about 400 points. | :04:07. | :04:12. | |
Let's cross over now to the Hong Kong stock exchange. Why have we | :04:13. | :04:18. | |
seen this diversification of the mainland and Hong Kong markets | :04:19. | :04:24. | |
today? Well I think because China is just starting to open after a | :04:25. | :04:29. | |
week-long holiday, playing catch up with the rest of the market. It has | :04:30. | :04:34. | |
had a dismal week elsewhere in Asia. We have now seen a rebound. I think | :04:35. | :04:40. | |
Shanghai is simply playing catch up. In Hong Kong the Hang Seng is up 2% | :04:41. | :04:47. | |
after it fell 4% on the first day it opened on Thursday, and 1% later. I | :04:48. | :04:53. | |
think it is a matter of Chinese markets catching up with the world. | :04:54. | :04:58. | |
Over the weekend we heard that retail sales over the New Year | :04:59. | :05:03. | |
holiday was relatively healthy, up 11% over the holiday period compared | :05:04. | :05:07. | |
with last year. That will boost sentiment. We had the central bank | :05:08. | :05:15. | |
speaking to a magazine ahead of the week-long opening, saying there is | :05:16. | :05:18. | |
no basis for devaluation of the currency and hoping to boost Chinese | :05:19. | :05:27. | |
and global markets. He says that the Chinese yuan will be stable but they | :05:28. | :05:31. | |
will allow greater volatility against the dollar. And a big story | :05:32. | :05:38. | |
over the last several hours, HSBC has decided to stay put in London. | :05:39. | :05:42. | |
If you look at the share price, it is in positive territory. That is | :05:43. | :05:51. | |
right. HSBC is up more than 3% at the moment, really in line with the | :05:52. | :05:55. | |
rally that we are seeing here in Hong Kong. There was a reaction | :05:56. | :05:59. | |
today from the head of the Hong Kong monetary authority, the de facto | :06:00. | :06:03. | |
central bank of Hong Kong and a regulator. He said he respected the | :06:04. | :06:09. | |
decision of the HSBC board, also recognising that Hong Kong is that | :06:10. | :06:15. | |
Asian headquarters, and of course leadership at HSBC have said that | :06:16. | :06:18. | |
they will stick to their so-called Asian pivot and will continue to | :06:19. | :06:22. | |
pour money and investment into southern China, the river delta | :06:23. | :06:33. | |
where Hong Kong river is --is located. Now to India, the | :06:34. | :06:37. | |
fastest-growing market. Last year passengers jumped 20%, which has | :06:38. | :06:47. | |
attracted companies like air bath -- Airbus and Boeing. What about India | :06:48. | :06:50. | |
as a place to manufacture planes as well? Made in India for an American | :06:51. | :06:59. | |
company. This factory has built up expertise in assembling helicopters | :07:00. | :07:05. | |
for the US firm Bell and is part of a growing number of products for the | :07:06. | :07:11. | |
aviation industry which is made locally. These components are the | :07:12. | :07:15. | |
main product of the plant here in Bangalore, flat track beams used in | :07:16. | :07:26. | |
the wings of all Airbus aircraft. Airbus has plans to make India a | :07:27. | :07:30. | |
more important part of its global supply chain. As a market India is | :07:31. | :07:35. | |
already importing for the company. But the planemaker no longer sees | :07:36. | :07:38. | |
India as only a customer but a supply hub. Outsourcing product and | :07:39. | :07:46. | |
services worth $400 million per year. Every commercial thing that | :07:47. | :07:50. | |
comes out of our plans today has a piece of India in it. We are buying | :07:51. | :07:54. | |
detail parts, components, subassemblies, complex stuff, doors | :07:55. | :08:03. | |
that go on the A320 ARI need piece of engineering. Catering to the | :08:04. | :08:10. | |
international firms, Indian companies are building huge | :08:11. | :08:14. | |
industrial parks, like this one. Here is the biggest aerospace | :08:15. | :08:20. | |
components maker, accessing the right technology from Europe -- A320 | :08:21. | :08:23. | |
are a. In a break from traditional plain building it now offers most of | :08:24. | :08:27. | |
the services under one roof. It says it makes it cheaper and more | :08:28. | :08:34. | |
attractive for customers. But some of India's smaller firms fear | :08:35. | :08:38. | |
missing out on this growing industry. This company makes parts | :08:39. | :08:42. | |
for aircraft used by the Indian air force. But its boss says it needs | :08:43. | :08:46. | |
help if it is to have a chance of winning lucrative military | :08:47. | :08:52. | |
contract. You need to train them, had told them and encourage them to | :08:53. | :08:54. | |
understand the technology and intricacies of the business. And | :08:55. | :09:01. | |
then, perhaps, increase the number of organisations to get in a group. | :09:02. | :09:07. | |
Whether it is commercial aviation or defence, that is what manufacturers | :09:08. | :09:10. | |
here are hoping. That the made in India ambition can help their | :09:11. | :09:18. | |
businesses fly. Before we go, here is a look at the markets once again. | :09:19. | :09:24. | |
And a relief rally for most Asia-Pacific stocks after US and | :09:25. | :09:29. | |
European shares rebound it on Friday from recent weakness with reassuring | :09:30. | :09:32. | |
US resale sales data, boosting sentiment, while in the US rallies | :09:33. | :09:38. | |
after 12 year lows. Despite the worst unexpected GDP number for the | :09:39. | :09:45. | |
quarter, the Nikkei to divide is up 4%, at 15,585, after the Nikkei two | :09:46. | :09:52. | |
to five 1 to 12% last week. And the Hang Seng has rallied after falling | :09:53. | :10:00. | |
last week, one 1.9%. However, we have seen catch up ball from the | :10:01. | :10:05. | |
Chinese markets, especially Shanghai, down two -2.8% after | :10:06. | :10:09. | |
closing with the week-long Chinese lunar New Year holiday -- Nikkei | :10:10. | :10:14. | |
225. Thank you so much for investing your time with us. I am Rico Hizon. | :10:15. | :10:16. | |
Bye for now. The top stories this hour: Turkey | :10:17. | :10:24. | |
bombs Kurdish positions in northern Syria for a second day, dismissing | :10:25. | :10:27. | |
calls for an end to the shelling. Pope Francis urges Mexicans to turn | :10:28. | :10:31. | |
their country into a land | :10:32. | :10:34. |