0:00:16 > 0:00:23Hello. This is Business Briefing. I'm Sally Bundock. Here are the
0:00:23 > 0:00:24headlines:
0:00:24 > 0:00:26The soaring cost of living in Zimbabwe -
0:00:26 > 0:00:28could the dark days of hyperinflation be returning?
0:00:28 > 0:00:32Plus a desert oasis with a difference.
0:00:32 > 0:00:38The UAE plans to colonize Mars within a century and grow lettuce.
0:00:38 > 0:00:42Yes, you are hearing me correctly.
0:00:42 > 0:00:45We'll bring you all the details from the Dubai Air Show.
0:00:45 > 0:00:48And on the markets despite a downbeat day for Wall Street
0:00:48 > 0:00:56the night before, Asia is riding higher with Japan up by almost
0:00:56 > 0:01:05a percent.
0:01:05 > 0:01:14We start in Zimbabwe, where as you've been hearing
0:01:14 > 0:01:16President Mugabe remains under house arrest,
0:01:16 > 0:01:19after what the African Union says "seems like a coup" -
0:01:19 > 0:01:28something denied by the country's military.
0:01:28 > 0:01:30The economy is a huge source of unrest in Zimbabwe.
0:01:30 > 0:01:36Its currency was scrapped in 2009 after hyperinflation reached several
0:01:36 > 0:01:37billion percent and replaced with foreign currencies.
0:01:38 > 0:01:39Today it's mostly the US dollar.
0:01:39 > 0:01:44But that hasn't helped ordinary people.
0:01:44 > 0:01:50Zimbabwe's official inflation rate was
0:01:50 > 0:01:522.24% in October.
0:01:52 > 0:01:55But some analysts who track the cost of consumer goods in Zimbabwe think
0:01:55 > 0:01:57they're rising at over 65% a year.
0:01:57 > 0:02:00That's because of a shortage of dollars needed to pay
0:02:00 > 0:02:03for imported goods.
0:02:03 > 0:02:06In fact, one
0:02:06 > 0:02:08economist, Steve Hanke from John Hopkins University,
0:02:08 > 0:02:08thinks
0:02:08 > 0:02:10the situation is far worse.
0:02:10 > 0:02:14He recently wrote in Forbes magazine that the actual inflation rate
0:02:14 > 0:02:14is almost 243%.
0:02:15 > 0:02:17He's warning that hyperinflation is returning to the country.
0:02:17 > 0:02:20He and other economists put the blame on Robert Mugabe's
0:02:20 > 0:02:28economic policies.
0:02:28 > 0:02:34The economy is by weight has been in a prolonged state of paralysis
0:02:34 > 0:02:39spending over ten years. -- economy and Zimbabwe. This is done to Nehru
0:02:39 > 0:02:43causes, like the seizing of farms, and much is dependent on Rod
0:02:43 > 0:02:48McGarvie's political agenda. Now it appears he will be reading power and
0:02:48 > 0:02:53if once gives an opportunity for a fresh start the economy. -- Robert
0:02:53 > 0:02:55Mugabe's political.
0:02:55 > 0:02:57William Attwell, Senior Analyst for Sub-Saharan Africa
0:02:57 > 0:03:00at Frontier Strategy Group.
0:03:00 > 0:03:04You are from South Africa and have family in Zimbabwe. Give us your
0:03:04 > 0:03:09perspective on the economy.It has been recovering very mildly over the
0:03:09 > 0:03:15past year or so. There has been a bounceback in agricultural
0:03:15 > 0:03:20production. There has been a rebound in metals prices well, helping
0:03:20 > 0:03:27exports. But the real Achilles heel is the currency and crash crisis,
0:03:27 > 0:03:30which, as was mentioned there, is really pushing us back into
0:03:30 > 0:03:35inflation again, and it means the economy is still starved of cash,
0:03:35 > 0:03:40inhibiting businesses' ability to function.And he will point the
0:03:40 > 0:03:47finger, don't they, at the policies of President Mugabe as the reason
0:03:47 > 0:03:53that it is floundering so much.Yes. I think what is significant, in
0:03:53 > 0:03:56addition to the firing last week, that the Vice President, who might
0:03:56 > 0:04:02return to power, now, is actually the firing of the relatively
0:04:02 > 0:04:07moderate Finance Minister about a month ago. He had been leading
0:04:07 > 0:04:13reforms. They were happy to stabilise the economy and re-engage
0:04:13 > 0:04:17Zimbabwe with lenders like the IMF and World Bank, which Zimbabwe has
0:04:17 > 0:04:22not been able to access money from 4/50 years, due to serious debt
0:04:22 > 0:04:31arrears. The court is that with some change, it provides an opening, as
0:04:31 > 0:04:35you have said, which could ease cash loans and strains of the economy.It
0:04:35 > 0:04:43is critical what happens next. We have the South African officials
0:04:43 > 0:04:48looking at this crisis.What you think will happen next? Into floor
0:04:48 > 0:05:04situation. I think that there is a strong supporter of the military.
0:05:04 > 0:05:08The more popular site, represented by Grace Mugabe, is he giving the
0:05:08 > 0:05:12week. There is either going to be some pushback from that.Thank you
0:05:12 > 0:05:19for your analysis. We will discuss that in detail later in the News
0:05:19 > 0:05:33Briefing. It is all the media, so we will look that event. We are also
0:05:33 > 0:05:36continuing our coverage of the Dubai Air Show. The United Arab Emirates
0:05:36 > 0:05:39are no stranger to ambitous projects, but this latest one is
0:05:39 > 0:05:42astronomical. They have been laying out plans for a desert always is
0:05:42 > 0:05:53with a difference, 300 -- 33 million miles away, on Mars.
0:06:06 > 0:06:10Tsonga is believed that more than 4 billion years ago, Mars used to look
0:06:10 > 0:06:15similar to Earth, in that it had similar geography. But something
0:06:15 > 0:06:21went wrong then it turned into a dead planet. One reason for that is
0:06:21 > 0:06:24it is basically losing its atmosphere.
0:07:16 > 0:07:18To Asia now and some warnings about serious risks facing
0:07:18 > 0:07:19China's economy.
0:07:19 > 0:07:26Sharanjit Leyl is following this from our business hub in Singapore.
0:07:26 > 0:07:31Good to see you. Tell Moore. Was this warning coming from?Is coming
0:07:31 > 0:07:36from a variety of places. Actually, what has ended up happening is that
0:07:36 > 0:07:40the warnings have resulted in China coming up with some new rules to try
0:07:40 > 0:07:44and curb some of the risks at its big development banks, and that is
0:07:44 > 0:07:48as they look to avoid a debt crisis. They are, these rules. They are
0:07:48 > 0:07:52saying that for the first time, the Chinese banking regulator by they
0:07:52 > 0:07:56will start enforcing specific rules to reduce financial risk at three
0:07:56 > 0:08:03banks. The new measures will ensure they don't lend more cash than they
0:08:03 > 0:08:08can afford, and crucial corporate governance rules, as well. The three
0:08:08 > 0:08:10banks offended at the journeys of
0:08:10 > 0:08:15, the export bank of China, and the agricultural development bank of
0:08:15 > 0:08:19China.Together, they have 3.8 trillion dollars in assets at the
0:08:19 > 0:08:26end of September.This comes as there is the threat of ballooning
0:08:26 > 0:08:30debt. This comes as the two senior financial experts are they warned
0:08:30 > 0:08:35about the Chinese financial sector, with the head of research at the
0:08:35 > 0:08:39Chinese central bank, and the committee chair of the National
0:08:39 > 0:08:42People's Congress have been speaking at a congress and have warned that
0:08:42 > 0:08:46the Chinese financial sector runs the risk of becoming a bubble.Thank
0:08:46 > 0:08:51you very much for joining us Sharanjit Leyl.
0:08:51 > 0:08:54Now let's brief you some other business stories.
0:08:54 > 0:08:56Barbie maker Mattel has rebuffed the latest takeover approach
0:08:56 > 0:08:58from rival Hasbro, according to sources quoted
0:08:58 > 0:09:00by Reuters, casting doubt over the potential merger
0:09:00 > 0:09:02between the world's two largest toy companies.
0:09:02 > 0:09:04Mattel believes the offer undervalues it and doesn't address
0:09:05 > 0:09:08potential antitrust concerns, the sources claim.
0:09:08 > 0:09:10European regulators have warned banks working on post-Brexit plans
0:09:10 > 0:09:13that they will "need to have substance locally" to serve
0:09:13 > 0:09:20European clients.
0:09:20 > 0:09:23The European Central Bank says some proposals are inadequate and risk
0:09:23 > 0:09:26creating "empty shells". Many banks currently access the European market
0:09:26 > 0:09:29through UK offices but are working on contingency plans, adding space
0:09:29 > 0:09:39in cities such as Frankfurt and Dublin.
0:09:39 > 0:09:42And the president of Angola, Joao Lourenco, has fired
0:09:42 > 0:09:45the daughter of his predecessor as head of the country's state
0:09:45 > 0:09:45oil company, Sonangol.
0:09:46 > 0:09:49Isabel Dos Santos, the billionaire daughter of former
0:09:49 > 0:09:53President Jose Eduardo dos Santos, is Africa's richest woman with a net
0:09:53 > 0:09:54worth of over $3 billion.
0:09:54 > 0:10:02President Lourenco, known as JLo, has promised to tackle corruption
0:10:02 > 0:10:12Let's take a look at what is trending in business.
0:10:12 > 0:10:16From the Wall Street Journal - how the robot revolution
0:10:16 > 0:10:18could create 21 million jobs.
0:10:18 > 0:10:19Experts predict the US
0:10:19 > 0:10:21will lose 19 million jobs to automation by 2032.
0:10:21 > 0:10:23The good news?
0:10:23 > 0:10:3121 million new roles will be created It predicts a raft of new job
0:10:31 > 0:10:36categories including man-machine teaming managers.
0:10:36 > 0:10:39The plot thickens.
0:10:39 > 0:10:41From Quartz, demand for gold has dropped
0:10:41 > 0:10:42to an eight-year low.
0:10:42 > 0:10:44As stock markets soar, investors have seemingly decided
0:10:45 > 0:10:47they don't need the precious metal often bought as a hedge
0:10:48 > 0:10:49during downturns.
0:10:49 > 0:10:51And among the most read on the BBC website,
0:10:51 > 0:10:53Dyson to sue former chief executive Max Conze.
0:10:53 > 0:10:56The electrical firm Dyson is suing its former boss
0:10:56 > 0:10:58for allegedly leaking company secrets and using company resources
0:10:58 > 0:10:59for his own benefit.
0:10:59 > 0:11:02Of course, as you know, get in touch with us.
0:11:02 > 0:11:07Let's us know what you are spotting
0:11:07 > 0:11:15online - use the hashtag #bbcthebriefing.
0:11:15 > 0:11:18That's it for Business Briefing this hour, but before we go,
0:11:18 > 0:11:22here are the markets.
0:11:22 > 0:11:26The news briefing is coming up next. We will talk you through all the
0:11:26 > 0:11:52stories making headlines in the global media today.