21/06/2017

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:00:00. > :00:10.Chancellor has defined his own goals for bricks and negotiations saying

:00:11. > :00:21.the priority that the Asians. Hong Kong's new chief executive lays

:00:22. > :00:30.out economic plans in an exclusive interview with the BBC. Knockoff

:00:31. > :00:42.time for these call centre workers. We find out why they are worried

:00:43. > :00:46.about US protectionism. Good morning, Asia and hello, world, glad

:00:47. > :00:58.you could join us for this edition. It has been nearly 20 years since

:00:59. > :01:02.Hong, handed over to Chinese rule. How do they plan to address the

:01:03. > :01:06.concerns of the younger generation, faced with an affordable housing and

:01:07. > :01:12.a growing wealth gap. A Chinese editor put the question to her. I

:01:13. > :01:17.want to give our younger generation hoped for the future of Hong Kong.

:01:18. > :01:22.In terms of the economy the hope lies in diversifying the economy so

:01:23. > :01:28.it is not just financial services and tourism, I want more attention

:01:29. > :01:35.on technology and creating quality jobs for people, for young people.

:01:36. > :01:39.Certainly I I know that housing is important. I want to give young

:01:40. > :01:44.people the sense of hope. And, yet, this generation, some of whom in

:01:45. > :01:48.2014 spent nearly three months on the street protesting for democracy,

:01:49. > :01:52.they may look at you and say that you have been there for the best

:01:53. > :01:56.part of 40 years. It had the housing job, the development job and now you

:01:57. > :02:00.are saying you are going to sort this out? The root of the problem is

:02:01. > :02:07.the politics because Hong Kong is a stitch up between the rich and the

:02:08. > :02:11.rulers and we do not get a look in. The government has increased

:02:12. > :02:18.spending on social welfare by 71%... And yet, and yet... The wealth gap

:02:19. > :02:23.happens in most advanced economies because it is not relativity. It was

:02:24. > :02:31.the incoming chief executive for Hong Kong. MSCI has decided to

:02:32. > :02:34.include China's A shares in its emerging markets index. Until now,

:02:35. > :02:40.only Chinese shares listed in Hong Kong were part of the index. MSCI

:02:41. > :02:45.compiles global stock market indices all lists of companies that

:02:46. > :02:50.investors use as a benchmark for investing decisions. Earlier I spoke

:02:51. > :02:54.to a correspondent in Hong Kong and asked why this decision was

:02:55. > :03:00.important. It was a widely expected decision, capping a process that

:03:01. > :03:03.took over for years. During that time MSCI had been speaking to

:03:04. > :03:08.investors around the world as well as Chinese regulators in an effort

:03:09. > :03:12.to bring Asia into this highly influential index. In the last three

:03:13. > :03:17.years the proposal was rejected because of market access issues.

:03:18. > :03:22.Foreign investors were unable to get access to the shares to buy or sell

:03:23. > :03:29.as they saw fit. This time the proposal was scaled down from over

:03:30. > :03:34.400 stocks to 169 stocks in the access issue was much less because

:03:35. > :03:42.those shares are accessible to foreign investors via Hong Kong.

:03:43. > :03:47.There were a couple of surprises in the announcement a few hours ago,

:03:48. > :03:56.instead of 169 different stock, it is now 222 stocks that are likely to

:03:57. > :04:05.be included into that MSCI index with a weighting of just under

:04:06. > :04:12.0.75%. With the inclusion of these Chinese A Shares, will that boost

:04:13. > :04:20.the stock price of these shares? In the short term, probably not. I

:04:21. > :04:24.would say that this is a significant move, certainly form of symbolic

:04:25. > :04:33.point of view to some say this is a watershed moment in the into into --

:04:34. > :04:39.for the into into an nationalisation. If you are a fund

:04:40. > :04:42.manager benchmarking your performance against this index then

:04:43. > :04:47.essentially you are being compelled to purchase the components of this

:04:48. > :04:52.index and it is expected that over the next decade it is likely to

:04:53. > :04:57.bring 400 billion US dollars worth of investment into mainland Chinese

:04:58. > :05:02.shares. That is a massive fortune, 400 billion US dollars that it but

:05:03. > :05:11.it is just a drop in the bucket when you consider that China's cup back

:05:12. > :05:15.in 7 trillion US dollars. Stock markets will be opening in about 55

:05:16. > :05:21.minutes so we will find out if this inclusion will have an impact. In a

:05:22. > :05:25.move that could see China play a bigger ruling carmaking for North

:05:26. > :05:30.America, Ford has moved some of the production for its focus model to

:05:31. > :05:34.the mainland. The shift in production will save the company $1

:05:35. > :05:42.billion and it comes off the back of a record year for four's sales in

:05:43. > :05:45.China. It is worse remembering that General motors already exports be

:05:46. > :05:49.weeks from China to America but this is the first time that the number to

:05:50. > :05:56.American carmaker will do so. They have said that no US employees will

:05:57. > :06:01.lose their jobs and it will have no effect on employment levels. This is

:06:02. > :06:08.the second major twist from Ford this year. The new Ford Focus was

:06:09. > :06:15.meant to be built in a $1.6 billion factory in the central state and

:06:16. > :06:22.when it was abandoned, hurting locals, it was seen as the time of a

:06:23. > :06:28.win for President Trump and approach to US companies and global trade.

:06:29. > :06:34.Having the car made in China instead was probably not what the White

:06:35. > :06:38.House was hoping for. Some auto jobs are headed to Asia and some of the

:06:39. > :06:46.call centre jobs are headed in the other direction. Horizon is bringing

:06:47. > :06:52.jobs from the Philippines back to the US. A more companies likely to

:06:53. > :06:58.follow this example? It is early afternoon here and it is knockoff

:06:59. > :07:04.time for these call centre employees who often worked the night shift.

:07:05. > :07:10.Most work for a company which lost a contract with Verizon. Jobs usually

:07:11. > :07:14.head on the other direction, but Horizon is hiring 1000 workers in

:07:15. > :07:27.the US and they are taking the jobs from here. So with Donald Trump to

:07:28. > :07:31.blame? We were informed of an agreement he had where people in the

:07:32. > :07:42.US were demanding that they no longer out first. -- outsourced.

:07:43. > :07:46.When a call centre pulls out in the Philippines we can get a job even

:07:47. > :07:51.though the pay is not the same. The company may transfer these workers

:07:52. > :07:55.onto other contacts but right now they are bracing for job losses.

:07:56. > :08:01.Verizon makes no suggestion that politics factors into the decision.

:08:02. > :08:05.Are workers are nervous about a president who rails against US jobs

:08:06. > :08:09.heading overseas to the US president has his name on the building behind

:08:10. > :08:13.me and it casts a long shadow over this part of town. The President

:08:14. > :08:18.himself casts a shadow over the industry. After all, he is the

:08:19. > :08:22.president who said to purchase American and higher American and

:08:23. > :08:27.most jobs are outsourced from the US. Analysts say the competitive

:08:28. > :08:30.wages and strong English-language schools should help to keep these

:08:31. > :08:34.companies are strong although there are some is short-term concerns.

:08:35. > :08:41.There are some companies that have delayed plans because they are

:08:42. > :08:46.uncertain about a border adjustment tax. The basic growth of the

:08:47. > :08:49.industry is continuing. One clear measure of the health of the

:08:50. > :08:54.industry is the office space it leases and that is not low down.

:08:55. > :08:57.With the amount of work that continues to flow through, based on

:08:58. > :09:01.the leases signed in the Philippines, we think that has not

:09:02. > :09:08.been affected. For the moment industry is confident it can weather

:09:09. > :09:12.any oncoming storm. In other business news making headlines,

:09:13. > :09:15.investors will keep an eye on the troubled electronic giants Toshiba

:09:16. > :09:18.this morning after reports that will sell its semiconductor business to a

:09:19. > :09:29.Japanese government led conglomerate which includes the state backed fund

:09:30. > :09:34.innovation network. US -- Toshiba needs to sell the unit to cover

:09:35. > :09:39.losses from its bankrupt US nuclear business. After months of delay,

:09:40. > :09:44.Tokyo's legendary PG Fish market will to a new site. The governor of

:09:45. > :09:50.Tokyo had postponed the move over safety concerns at the new location.

:09:51. > :09:54.But now the governor says the move will allow the current site to be

:09:55. > :10:00.redeveloped before the world-famous fishmarket returns. TRANSLATION: I

:10:01. > :10:06.have made a decision on basic policy of the redevelopment of the

:10:07. > :10:10.fishmarket, based on determination to uphold the brand and the

:10:11. > :10:14.tradition, created by Japan over the years and also by thinking of the

:10:15. > :10:18.next generation which must not inherit a negative legacy in the

:10:19. > :10:22.form of accumulating debt. I also hope that the brand will be the best

:10:23. > :10:35.in Japan and. It is something we can be proud of. From the market in

:10:36. > :10:41.Tokyo, let's look at the stock market. The nick a rebounded and the

:10:42. > :10:42.All Ordinaries lower by 115 because