:00:00. > :00:07.I always thought it was amazing that this guy was born in East Grinstead.
:00:08. > :00:09.He was the first private soldier to win the
:00:10. > :00:13.Victoria Cross, this extraordinary battle at the end of the war.
:00:14. > :00:18.I feel happy that he is being honoured.
:00:19. > :00:21.The private was one of the first of any rank to be awarded the
:00:22. > :00:28.Over the next four years, 469 stones like this one will be laid across
:00:29. > :00:35.We're going to honour every fighter in the First World War who won
:00:36. > :00:43.Unusually this is going to be a war memorial, but most of them will
:00:44. > :00:47.be laid fairly close to the street where the people were brought up.
:00:48. > :00:49.The idea is to show that from ordinary communities
:00:50. > :01:03.100 years on from his remarkable act of bravery,
:01:04. > :01:32.Sidney Godley's memory has never been more alive in his hometown.
:01:33. > :01:40.It will be a cold night. It could be a record`breaking cold night.
:01:41. > :01:46.Showers are tending to push a way out into the North Sea. Clear skies,
:01:47. > :01:50.hardly a breath of wind. This is what we are looking at in towns and
:01:51. > :01:57.cities. Single figure temperatures in many places. Countryside
:01:58. > :02:04.temperatures much lower. At least we will have sunshine to content `` to
:02:05. > :02:08.compensate. Cloud amounts increasing across Northern Ireland, Wales, the
:02:09. > :02:17.south`west. A spot of rain in the afternoon. In eastern areas, patchy
:02:18. > :02:20.cloud but lots of sunshine. The cloud will thicken further overnight
:02:21. > :02:25.to give us some rain as we head into Monday. Some rain, heavy at times
:02:26. > :02:32.across southern parts of England and Wales. The rain becomes lighter as
:02:33. > :02:44.it goes north. It should be dry and bright in Scotland.
:02:45. > :02:54.Good evening. You are watching BBC News. Let's look at the headlines.
:02:55. > :02:58.The United Nations calls for action to prevent the Islamic group Islamic
:02:59. > :03:04.State carry out a massacre in the northern Iraqi town of Amerli.
:03:05. > :03:10.The UK Government insists it is taking action to prevent British
:03:11. > :03:17.people going to Iraq and Syria to engage in terrorism.
:03:18. > :03:22.Iceland raises the aviation alert for its volcano from orange to read
:03:23. > :03:24.and has banned all air traffic in the area after detecting a small
:03:25. > :03:29.eruption. It British national living in Iraq
:03:30. > :03:36.`` living in Sierra Leone has tested positive for the Ebola virus.
:03:37. > :03:41.Patient groups welcomed moves to reduce the cost of parking in
:03:42. > :03:45.England. Charges have been a bone of contention for many years and MPs
:03:46. > :03:53.say they cause misery for thousands of people.
:03:54. > :04:00.Now for Talking Business with Linda Yueh.
:04:01. > :04:03.It has taken five years, but it looks as if the world economy has
:04:04. > :04:06.turned a corner and the spectre of recession has receded.
:04:07. > :04:09.That is not to say there are not risks as the reccvery does look
:04:10. > :04:13.How do leading economists and policymakers view the economy?
:04:14. > :04:29.Find out in this Talking Business with Linda Yueh.
:04:30. > :04:32.A warm welcome to this special programme which showcases some
:04:33. > :04:37.of the top economic experts who we have spoken to on the show.
:04:38. > :04:40.From central bankers through finance ministers to Nobel laureates,
:04:41. > :04:44.it has been a busy and uncertain time with the world economy finally
:04:45. > :04:48.recovering five years after the global financial crisis.
:04:49. > :04:51.The US and Europe appear to be on the mend, but unemployment remains
:04:52. > :04:58.China's growth is also decelerating with worries over
:04:59. > :05:06.The Federal reserve started ending its stimulus
:05:07. > :05:09.and some emerging markets are thought to be vulnerable to
:05:10. > :05:15.Among those dubbed as one of the fragile five is India.
:05:16. > :05:18.I went to Mumbai to speak to the Indian
:05:19. > :05:25.central bank governor to find out how he was able to bring India back
:05:26. > :05:32.First, I asked him what it was like to be called a rock star central
:05:33. > :05:42.I try not to think about it because inevitably,
:05:43. > :05:45.people will come to terms with the fact that central bank is
:05:46. > :05:52.But, you know, while it lasts, let them talk.
:05:53. > :05:58.I don't know whether she likes it or is worried!
:05:59. > :06:08.I want to ask you a little bit about the stock markets,
:06:09. > :06:20.Seriously, what we have been trying to do with the government
:06:21. > :06:24.and the reserve bank is try to change the perception about India.
:06:25. > :06:31.There was a point at which people thought even the unimaginable,
:06:32. > :06:34.India a country with $280 billion in reserves, would find it difficult
:06:35. > :06:46.That was never a possibility, but people were not prepared to go
:06:47. > :06:49.The headlines, I have to say, the newspapers,
:06:50. > :06:52.they picked at every bad thing that was happening and focused on it.
:06:53. > :07:01.So our attempt was to try to change the dialogue.
:07:02. > :07:02.We do have macro economic challenges.
:07:03. > :07:07.High inflation, a fiscal deficit which is much too large and we can
:07:08. > :07:13.And we had an external deficit, we were financing ourselves
:07:14. > :07:21.We have focused on bringing down that borrowing and I am happy to
:07:22. > :07:27.report that while the governments and the reserve Banks says we will
:07:28. > :07:38.be borrowing 3.7 percentage point of GDP this year, down from five last
:07:39. > :07:40.year, the private analysts believe it could
:07:41. > :07:47.I think one of the reasons that India has been under pressure is
:07:48. > :08:08.because of the possibility of the Fed being back taking back cash.
:08:09. > :08:11.Do you think the Fed is taking enough nodes of the global effect of
:08:12. > :08:15.I think that at every meeting, the Fed has been hearing concerns
:08:16. > :08:24.The Fed's mandate, as any Federal reserve President
:08:25. > :08:27.has said, does not include foreign countries, except indirectly to the
:08:28. > :08:32.But I don't think the Fed would like to see other countries
:08:33. > :08:43.And to that extent, we are mindful to some extent we
:08:44. > :08:46.might even think that the shot across the bows that Bernanke
:08:47. > :08:49.fired in May was to get the markets to prepare for a federal tapering.
:08:50. > :08:52.And I think certainly we will be better prepared
:08:53. > :08:56.What is happening in the world economy is in not the only
:08:57. > :09:01.The Philippines have struggled to recover from a typhoon
:09:02. > :09:05.and had a lack of insurance and infrastructure.
:09:06. > :09:10.I travelled to Manila and asked the Philippines' finance minister about
:09:11. > :09:19.reports of the recent recovery and growth and whether it could last.
:09:20. > :09:25.About the causes of the recent recovery and growth.
:09:26. > :09:28.The story of the Philippines is about the comeback of a country that
:09:29. > :09:32.Since the president came into office, our growth has averaged
:09:33. > :09:35.This year, we are projecting 7% to 7.5%.
:09:36. > :09:38.But we are building foundations so that we can build `` sustain
:09:39. > :09:43.Because that is our goal, to make sure we give every Filipino
:09:44. > :09:46.the opportunity to realise their potential.
:09:47. > :09:51.If we can talk about six months on from the typhoon, I talked to some
:09:52. > :09:58.people were living in slums on the outskirts of Manila and for them,
:09:59. > :10:04.they are telling me that they are now being relocated from the slums
:10:05. > :10:07.into places which are too far for them to get to their jobs.
:10:08. > :10:11.We divided the area affected by the typhoon in 24 sections.
:10:12. > :10:17.And each of the sections, we asked the private sector to adopt them.
:10:18. > :10:33.Because the area affected by the typhoon is among the poorest
:10:34. > :10:41.In the country, a coconut `based industry which is the poorest area
:10:42. > :10:46.in the country. The coconuts were destroyed. A long time to get them
:10:47. > :10:51.back to productive productive stage. So the key was to get them connected
:10:52. > :10:56.to businesses. Businesses here tend to be controlled by a small number
:10:57. > :11:00.of families. Cronyism is an issue for your country. Does that not need
:11:01. > :11:07.to be tackled? Because that would ensure good governance. The best way
:11:08. > :11:11.to share with other people who are not familiar with the Philippines
:11:12. > :11:14.who are not familiar with the Philippines is to share with
:11:15. > :11:19.companies who have been in the Philippines for a long time. I could
:11:20. > :11:23.go through a long list, Coca`Cola, Procter Gamble, and we are now
:11:24. > :11:30.among the five largest building companies in the world `` five
:11:31. > :11:34.largest building countries in the world. More and more people are
:11:35. > :11:40.discovering the Philippines. Economies are about people. Yes, but
:11:41. > :11:51.there is a real focus on tackling corruption? Yes, we impeached our
:11:52. > :11:57.chief justice for the first time in history. How many countries do that?
:11:58. > :12:01.Not many. This is a war against corruption. We want to make sure
:12:02. > :12:08.that this is going to be something good for our population. The
:12:09. > :12:17.president wants there to be no corruption and `` but there were no
:12:18. > :12:22.magic wands in the fight. This will be a journey, and investment in
:12:23. > :12:30.people and processes and investment in situations `` in institutions. We
:12:31. > :12:33.need a meritocracy. We are headed towards that. Incentive `based
:12:34. > :12:38.compensation, we are using information to set proper goals and
:12:39. > :12:43.guide performance. And we are seeing the results. It is not only
:12:44. > :12:48.developing countries that have had a tough time.
:12:49. > :12:53.Developed economies also faced daunting prospect after being struck
:12:54. > :12:57.by the worst financial crisis in the `` in a century. The British banking
:12:58. > :13:02.industry has just recovered to precrisis levels. Wary of going down
:13:03. > :13:09.the same route of debt filled growth, the UK is trying to sell to
:13:10. > :13:12.countries like China. I sat down with the Chancellor, George Osborne,
:13:13. > :13:17.to ask how they plan to become a hub for the Chinese currency was going.
:13:18. > :13:23.We are here on the trading floor of the world's largest bank, and it is
:13:24. > :13:26.a Chinese bank. But the Chinese currency is not well known in
:13:27. > :13:31.Britain at the moment but I think it will become as familiar as the
:13:32. > :13:35.dollar. I want building `` British businesses involved in trading and
:13:36. > :13:39.investing in it. It happens all around the United Kingdom, not just
:13:40. > :13:45.London. That means jobs for generations of British people. But
:13:46. > :13:50.this will be a long time to come, because the Chinese currency is not
:13:51. > :13:53.a tradable currency. This could be a decade before the Chinese liberalise
:13:54. > :13:59.the country `` the currency and make a tradable. Yes, of course it will
:14:00. > :14:04.take time for it to become a global currency, but it is happening pretty
:14:05. > :14:10.quickly, that process. For example, just in the space of the last two
:14:11. > :14:14.years, the amount of Chinese currency trading in Britain has
:14:15. > :14:19.grown dramatically. The head of this bank told me that his bank intends
:14:20. > :14:24.to issue a 2 million bond issue in London. That'll be the first time
:14:25. > :14:30.that a Chinese bank quartered in China, not one of the subsidiaries
:14:31. > :14:38.of that Bang, it is a bond in London. That business is happening
:14:39. > :14:44.right now. `` a Chinese bank headquartered in China, not one of
:14:45. > :14:47.the subsidiaries. What about other countries which have been here and
:14:48. > :14:53.done more with China, is Britain a bit late? I agree with you that
:14:54. > :14:58.Britain needs to do more. Britain did not do enough over the previous
:14:59. > :15:03.ten or 15 years to export to China, to seek Chinese investment. I think
:15:04. > :15:07.we were too reliant on Europe and we didn't look to the broader world. I
:15:08. > :15:12.have been determined to change that in the couple of years that I have
:15:13. > :15:16.been doing this job. You can already see our exports to China have
:15:17. > :15:20.doubled over the last three years and Chinese investment in Britain
:15:21. > :15:25.has doubled over the last year. I have made it a personal priority of
:15:26. > :15:29.mine. It is part of our economic plan to rebalance Britain, to make
:15:30. > :15:33.sure Britain is connected to the fast`growing parts of the world. And
:15:34. > :15:37.this week here in Beijing, we have taken a big step with China to carry
:15:38. > :15:41.that `` take that step. France is also struggling
:15:42. > :15:43.with slow growth. It had to cope with not only
:15:44. > :15:46.the slow financial crisis The second largest economy in
:15:47. > :15:50.the Eurozone has had to help other countries even while its own economy
:15:51. > :15:55.suffers from low productivity. The French government wants to
:15:56. > :15:58.overhaul the system, and introduce reforms that helped
:15:59. > :16:01.Germany shed its 'sick man I asked the French finance
:16:02. > :16:12.minister about the plans. The approach of Mr Hollande is that
:16:13. > :16:16.we need to build a strong compromise ` we need the
:16:17. > :16:23.state, the state helping businesses But at the same time,
:16:24. > :16:34.negotiate as well. It's of general interest that this
:16:35. > :16:47.country becomes more competitive. So you're telling me there's
:16:48. > :16:50.an acceptance there has to be We have to attack,
:16:51. > :17:04.the problem is the taxation system. This is why President Hollande
:17:05. > :17:12.reduced the cost of labour. We will move until 30 billion Euros
:17:13. > :17:17.less... When you compare France with
:17:18. > :17:34.Germany, Taxes
:17:35. > :17:45.for social security are higher. Angela Merkel has said the social
:17:46. > :17:50.model of Europe is unsustainable. But still,
:17:51. > :18:11.we need strong social set nets. We've heard from the policy makers,
:18:12. > :18:16.what do the best economists see First, two economics went head
:18:17. > :18:28.to head on one of the most I travelled to Hong Kong to speak to
:18:29. > :18:40.them and find out Five years on from the worst
:18:41. > :18:48.economic crash in a century, The top 1%
:18:49. > :18:58.of earners have captured 95%. That means the bottom 99% have
:18:59. > :19:05.only seen incomes rise by 0.4%. Is this high level of inequality
:19:06. > :19:12.the cause of slow recovery? Two of the most eminent
:19:13. > :19:22.economists disagree. Those
:19:23. > :19:32.at the top don't need to spend. Those at
:19:33. > :19:37.the bottom are spending everything. Short of
:19:38. > :19:51.an irrational investment bubble... Short of that,
:19:52. > :19:54.when you have this high level Without people buying,
:19:55. > :20:26.it's hard to have a robust economy. If the local to spend as much, would
:20:27. > :20:33.it make sense? I see it as as the meantime, I think the problems have
:20:34. > :20:39.much more to do with deregulation. Nor really for Europe, except the
:20:40. > :20:55.very crude thing, the great depression, again in 2007. European
:20:56. > :21:02.countries are also the mess. The world's largest economy is not only
:21:03. > :21:09.facing it places but is also having to do with China. Can the United
:21:10. > :21:18.States maintain this position? I spoke to a former chief economist to
:21:19. > :21:24.get testy on long`term prospects. I think the risks are more balanced. I
:21:25. > :21:32.can tell you 100 things that could go wrong but I think a lot of things
:21:33. > :21:38.could go rate. `` right. The United States has a lot of things, its
:21:39. > :21:44.legal system, all the land, immortal straits. People are predicting it is
:21:45. > :21:50.all over for the United States. They were predicting again later. I think
:21:51. > :22:01.immortal signs of resilience. But it will not necessarily see if all of
:22:02. > :22:09.the problems. We can see what evidence of this. It is about the
:22:10. > :22:17.constitutional devices. We have problems but the bottom line is that
:22:18. > :22:25.it is more likely to get better. You mentioned the risks but the bigger
:22:26. > :22:40.picture is that the United States will remain the most technologically
:22:41. > :22:49.advanced, more productive? Some of the doomsayers are reasoning
:22:50. > :22:53.questions about this? I think the United States has been doing very
:22:54. > :23:02.well. It has been a beneficiary of China. Problems exist in the United
:23:03. > :23:11.States. Equality is the number one. It is not a good thing. Certainly,
:23:12. > :23:24.the date levels are very high. `` debt. The United States has a lot of
:23:25. > :23:31.advantages, still. I think the death of the United States has been told
:23:32. > :23:35.to many times. Eventually, China will pass the United States but it
:23:36. > :23:41.is not going to be so quick as some of these calculations show. Give us
:23:42. > :23:52.your take on China. Spectacular growth but that is slowing down. Can
:23:53. > :23:56.they manage? That is a very tough question. What they have done is
:23:57. > :23:59.amazing. If you asked me to new cycle would be have got through ten
:24:00. > :24:10.years without a single significant recession I would have said West
:24:11. > :24:16.than 50`50. `` less. Going forward, it looks like it is going to get
:24:17. > :24:25.harder and harder. Every time something slows down, it goes back.
:24:26. > :24:32.The gnawing cannot go on forever. It is not easy to take this train that
:24:33. > :24:42.is going very fast and say that we will get actually bring Western
:24:43. > :24:50.economies... If you are asking if the next 40 years will be like the
:24:51. > :24:52.last 40 years, highly unlikely. What about the rest of the world? What
:24:53. > :25:00.are the big issues and risks are the big issues and risks
:25:01. > :25:09.confronting the global economy? I spoke to a woman from New York
:25:10. > :25:16.University. `` a man. Still the number of risks exist in the
:25:17. > :25:24.economy. Political tensions could exist in the eurozone. In the United
:25:25. > :25:31.States, you have gridlock. It could have an impact on fiscal policy. In
:25:32. > :25:43.China, questions about landing. That is going to affect things, and also
:25:44. > :25:52.geopolitical risk. We will see with the permanent agreement with Iran
:25:53. > :25:59.can be agreed. It could lead to mortally contravention. We have here
:26:00. > :26:06.from leading economists and top policymakers. The global economy is
:26:07. > :26:10.finally recovering. The good news is that the risk of recession seems to
:26:11. > :26:16.be behind us. But, still challenges on the horizon. Including questions
:26:17. > :26:21.about income equality that pose fundamental questions of growth. The
:26:22. > :26:26.crisis may be behind us but still plenty of hard work ahead for
:26:27. > :26:29.economists. That is all we have time for. Check out the website. Join us
:26:30. > :26:34.next time.