Browse content similar to 05/03/2018. Check below for episodes and series from the same categories and more!
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the UK. The athletics world has been
paying tribute to Sir Roger | 0:00:00 | 0:00:01 | |
Bannister, the first man to run a
mile in under four minutes. Now for | 0:00:01 | 0:00:05 | |
business news from Singapore. | 0:00:05 | 0:00:15 | |
China is set to make sweeping
changes that will give President Xi | 0:00:15 | 0:00:21 | |
Jinping more power and consolidate
control over its regular trip | 0:00:21 | 0:00:24 | |
policies. And one Indian carmaker
makes inroads into the US by | 0:00:24 | 0:00:29 | |
building a massive auto assembly
part in America's car capital. Good | 0:00:29 | 0:00:42 | |
morning and welcome to Asia Business
Report live from Singapore with me. | 0:00:42 | 0:00:47 | |
As we can see, China's National's
People's Congress has kicked off and | 0:00:47 | 0:00:53 | |
is well in Beijing. Leaders began by
setting 2018 GDP growth at 6.5% the | 0:00:53 | 0:01:01 | |
same as last year and an increase in
military spending of 8%. They are | 0:01:01 | 0:01:07 | |
also expected to rubberstamp several
sweeping pieces of legislation | 0:01:07 | 0:01:12 | |
including removing term women for
the President. Lawmakers are also | 0:01:12 | 0:01:18 | |
expected to create a powerful
anticorruption agency and approve a | 0:01:18 | 0:01:23 | |
major overhaul of its banking and
insurance sectors, putting them | 0:01:23 | 0:01:28 | |
under the supervision of one
government bureau. All this while | 0:01:28 | 0:01:32 | |
there is a transition in leadership
at the central bank and the People's | 0:01:32 | 0:01:37 | |
bank of China. These changes are
crucial to President Xi Jinping's | 0:01:37 | 0:01:41 | |
efforts to bring down debt levels in
Chinese companies while the economy | 0:01:41 | 0:01:45 | |
cools down. Growth has dropped from
10% in 2010 to just under 7% last | 0:01:45 | 0:01:53 | |
year and the International Monetary
Fund says that will slow down to | 0:01:53 | 0:01:56 | |
below 6% by 2020 to. Earlier I spoke
to an equities expert in Hong Kong | 0:01:56 | 0:02:06 | |
about what putting an end to
presidential term limits will move | 0:02:06 | 0:02:09 | |
the Chinese economy. Over the medium
term there is likely to be very | 0:02:09 | 0:02:13 | |
little impact. In some ways what it
does reduce the uncertainty that we | 0:02:13 | 0:02:17 | |
may have otherwise seen. From a
market perspective over the short to | 0:02:17 | 0:02:23 | |
medium term I don't think there is
an issue. There will be those who | 0:02:23 | 0:02:28 | |
say if the policies are not the way
that one would want over the longer | 0:02:28 | 0:02:32 | |
term, this may reduce the ability
for that to be changed in the | 0:02:32 | 0:02:35 | |
future. If we go back and look at
the US, around World War Two, we had | 0:02:35 | 0:02:41 | |
presidents was over two terms as
well. I think it comes down to the | 0:02:41 | 0:02:45 | |
policies and the individual
involved. Another massive issue is | 0:02:45 | 0:02:49 | |
that this anticorruption agency. How
is it different to the fact that the | 0:02:49 | 0:02:54 | |
government there has been cracking
down on corruption for several | 0:02:54 | 0:02:57 | |
years? One of the things that we are
seeing at the moment is power being | 0:02:57 | 0:03:03 | |
centralised. If you think about some
of the policies we seen in China, be | 0:03:03 | 0:03:07 | |
it anti- graft or protecting the
environment, simplifying the | 0:03:07 | 0:03:12 | |
financial system, what we are seeing
is that being brought more and more | 0:03:12 | 0:03:15 | |
into more of a Beijing focused.
Historically we have seen that done | 0:03:15 | 0:03:20 | |
at a more provincial level. But is a
definite trend we have seen. And is | 0:03:20 | 0:03:24 | |
the cooling economy and is a high
level of debt, are they a big | 0:03:24 | 0:03:30 | |
challenge for the President going
forward? Every economy as it grows | 0:03:30 | 0:03:36 | |
and the Chinese economy has become
quite large now and as a result of | 0:03:36 | 0:03:39 | |
that, growth will slow down. From a
market perspective I think Beijing | 0:03:39 | 0:03:44 | |
is too focused on growth. We have
seen a correlation between stock | 0:03:44 | 0:03:47 | |
market return and growth, it is non-
existent. If you look at the US | 0:03:47 | 0:03:53 | |
market and its growth relative to
China, it is likely will expand. The | 0:03:53 | 0:03:59 | |
key here is what most people are
looking for is an improvement in a | 0:03:59 | 0:04:02 | |
type of growth. Not just about jobs
for the sake of jobs, it is about | 0:04:02 | 0:04:07 | |
better jobs, advancing the economy,
about bringing industry forward. I | 0:04:07 | 0:04:09 | |
think that will be a key focus. | 0:04:09 | 0:04:12 | |
Donald Trump has begun a local game
of tit-for-tat when he said the US | 0:04:12 | 0:04:19 | |
will slap a tariff on imported steel
and aluminium. The EU struck back | 0:04:19 | 0:04:25 | |
saying they would target products
like jeans, bourbon and | 0:04:25 | 0:04:31 | |
Harley-Davidson is. But what could
this mean for India? I'm joined now | 0:04:31 | 0:04:36 | |
by our correspondent. Will this
affect Indian steel producers? Not | 0:04:36 | 0:04:41 | |
directly. Just 2% of Indian steel is
exported to the United States. What | 0:04:41 | 0:04:48 | |
is causing concern here is the
damping of cheap imports from | 0:04:48 | 0:04:51 | |
countries that would have sold to
the US market, countries like Korea, | 0:04:51 | 0:04:57 | |
Japan and Russia. The Indian
government last year introduced | 0:04:57 | 0:05:03 | |
anti-dumping charges, increased
tariffs on imports and that helped | 0:05:03 | 0:05:11 | |
Indian producers of steel. The
problem is that those charges have | 0:05:11 | 0:05:15 | |
now become lower than market rates,
because of the price of raw material | 0:05:15 | 0:05:19 | |
rising, so Indian producers are
still concerned that these tariffs | 0:05:19 | 0:05:22 | |
could affect them. We heard from the
European Union, we heard from | 0:05:22 | 0:05:28 | |
Canada. What does the Indian
government say about this? India's | 0:05:28 | 0:05:35 | |
steel Secretary says it is not an
immediate cause for concern. | 0:05:35 | 0:05:38 | |
However, as I mentioned, the
anti-dumping concerns that will | 0:05:38 | 0:05:45 | |
affect companies which rely on
export and also Tata steel which has | 0:05:45 | 0:05:54 | |
European operations secretary also
mentioned that the article Donald | 0:05:54 | 0:06:01 | |
Trump is using to justify these
tariffs is slightly stretched. That | 0:06:01 | 0:06:05 | |
is that the US has the right to
investigate any import that is a | 0:06:05 | 0:06:09 | |
threat to national security. Thank
you so much for that update. As we | 0:06:09 | 0:06:15 | |
wait to see how steel and aluminium
tariffs will play out over the next | 0:06:15 | 0:06:19 | |
few days, Michigan in the American
midwest has long been the capital of | 0:06:19 | 0:06:24 | |
the US auto industry. After the
financial crisis, some of the | 0:06:24 | 0:06:28 | |
biggest car companies headquartered
there filed for the. Industry in the | 0:06:28 | 0:06:32 | |
area went on a downward spiral and
has only just started to recover. | 0:06:32 | 0:06:39 | |
This revival is being aided by an
Indian carmaker which has set up a | 0:06:39 | 0:06:43 | |
factory there and rolled out its
first set of cars last week. | 0:06:43 | 0:06:52 | |
The first new car factory to be
opened in the area in 25 years. | 0:06:52 | 0:06:58 | |
Billed as the torch bearer of the
resurgence of Detroit, it belongs to | 0:06:58 | 0:07:03 | |
an Indian company that has its eyes
set on the US market. I want to be | 0:07:03 | 0:07:09 | |
part of the next generation of auto
development. The industry is about | 0:07:09 | 0:07:12 | |
to be rocked. The American boss
tells me why the area was an obvious | 0:07:12 | 0:07:17 | |
choice for them. If you put a centre
outside of your home country, the | 0:07:17 | 0:07:24 | |
best place is probably destroyed. --
Detroit. The EPA is here, there are | 0:07:24 | 0:07:34 | |
test labs and wind tunnels... It is
one stock shop to locate and | 0:07:34 | 0:07:38 | |
engineering centre in this area.
Lawmakers and politicians attended | 0:07:38 | 0:07:42 | |
the launch and were all keen to show
that this droid's worst is behind | 0:07:42 | 0:07:46 | |
it. This massive abandoned car
factory has long been a symbol of | 0:07:46 | 0:07:52 | |
the downfall of the droid's auto
industry. And where most of the US | 0:07:52 | 0:07:58 | |
manufacturers have headquartered
here have made a comeback, the city | 0:07:58 | 0:08:02 | |
itself is still a long way from the
boom time it wants experienced. | 0:08:02 | 0:08:07 | |
Still, many who have seen the twist
and turns and it does come in the | 0:08:07 | 0:08:12 | |
droid story are breathing easily.
For decades, this plant made car | 0:08:12 | 0:08:17 | |
seats sold to big auto makers in the
area. When some of those companies | 0:08:17 | 0:08:22 | |
purely bankrupt after the financial
crisis, this factory almost did not | 0:08:22 | 0:08:26 | |
make it. I can very clearly recall
discussions back in 2007, 2008 about | 0:08:26 | 0:08:33 | |
whether we would be able to keep
this facility open, whether the heat | 0:08:33 | 0:08:36 | |
to the industry and the customer we
serve here was so severe that we | 0:08:36 | 0:08:40 | |
would not have sufficient business
volume to keep the operation in this | 0:08:40 | 0:08:44 | |
location. Competition is stiff from
other parts of the US. However | 0:08:44 | 0:08:52 | |
nowhere is the success of the auto
industry more important than in this | 0:08:52 | 0:08:55 | |
town. Were almost everyone has a
personal connection to it. | 0:08:55 | 0:09:04 | |
In other business news, the Federal
police of India have made four more | 0:09:04 | 0:09:08 | |
arrests involving the state lender,
widening the investigation of the | 0:09:08 | 0:09:13 | |
biggest ranking fraud in the history
of the country. Over a dozen people | 0:09:13 | 0:09:17 | |
have been arrested by India's
Central bureau of investigations | 0:09:17 | 0:09:21 | |
since the fraud came to light in
January. A quick look at the week | 0:09:21 | 0:09:26 | |
ahead. On Tuesday we will see of
Austria's central bank keeps its | 0:09:26 | 0:09:32 | |
neutral is dance and holds interest
rates at a historic low of 1.5%. One | 0:09:32 | 0:09:36 | |
day later we will have an update on
the health of Australia's economy | 0:09:36 | 0:09:40 | |
when it releases its latest growth
figures. And Japan's central bank | 0:09:40 | 0:09:47 | |
will also hold its monetary policy
meeting at the end of the week. And | 0:09:47 | 0:09:51 | |
investors will be looking for signs
of inflation when the US reports its | 0:09:51 | 0:09:56 | |
latest payroll numbers. Having a
look at the markets before we go. | 0:09:56 | 0:10:02 | |
All Asian markets are lower.
Investors are still concerned about | 0:10:02 | 0:10:05 | |
the potential trade war. On Friday
we saw a sharp fall in Asian markets | 0:10:05 | 0:10:09 | |
although Wall Street did recover
somewhat on Friday. We will continue | 0:10:09 | 0:10:14 | |
to monitor that and in currencies
were watching the dollar and also | 0:10:14 | 0:10:18 | |
the bureau after result of exit
polls for Italy's elections. That is | 0:10:18 | 0:10:25 | |
it for this edition of Asia Business
Report. Thank you for watching. | 0:10:25 | 0:10:38 |