23/08/2014 Talking Business with Linda Yueh

I always thought it was amazing that this guy was born in East Grinstead.

He was the first private soldier to win the

Victoria Cross, this extraordinary battle at the end of the war.

I feel happy that he is being honoured.

The private was one of the first of any rank to be awarded the

Over the next four years, 469 stones like this one will be laid across

We're going to honour every fighter in the First World War who won

Unusually this is going to be a war memorial, but most of them will

be laid fairly close to the street where the people were brought up.

The idea is to show that from ordinary communities

100 years on from his remarkable act of bravery,

Sidney Godley's memory has never been more alive in his hometown.

It will be a cold night. It could be a record`breaking cold night.

Showers are tending to push a way out into the North Sea. Clear skies,

hardly a breath of wind. This is what we are looking at in towns and

cities. Single figure temperatures in many places. Countryside

temperatures much lower. At least we will have sunshine to content `` to

compensate. Cloud amounts increasing across Northern Ireland, Wales, the

south`west. A spot of rain in the afternoon. In eastern areas, patchy

cloud but lots of sunshine. The cloud will thicken further overnight

to give us some rain as we head into Monday. Some rain, heavy at times

across southern parts of England and Wales. The rain becomes lighter as

it goes north. It should be dry and bright in Scotland.

Good evening. You are watching BBC News. Let's look at the headlines.

The United Nations calls for action to prevent the Islamic group Islamic

State carry out a massacre in the northern Iraqi town of Amerli.

The UK Government insists it is taking action to prevent British

people going to Iraq and Syria to engage in terrorism.

Iceland raises the aviation alert for its volcano from orange to read

and has banned all air traffic in the area after detecting a small

eruption. It British national living in Iraq

`` living in Sierra Leone has tested positive for the Ebola virus.

Patient groups welcomed moves to reduce the cost of parking in

England. Charges have been a bone of contention for many years and MPs

say they cause misery for thousands of people.

Now for Talking Business with Linda Yueh.

It has taken five years, but it looks as if the world economy has

turned a corner and the spectre of recession has receded.

That is not to say there are not risks as the reccvery does look

How do leading economists and policymakers view the economy?

Find out in this Talking Business with Linda Yueh.

A warm welcome to this special programme which showcases some

of the top economic experts who we have spoken to on the show.

From central bankers through finance ministers to Nobel laureates,

it has been a busy and uncertain time with the world economy finally

recovering five years after the global financial crisis.

The US and Europe appear to be on the mend, but unemployment remains

China's growth is also decelerating with worries over

The Federal reserve started ending its stimulus

and some emerging markets are thought to be vulnerable to

Among those dubbed as one of the fragile five is India.

I went to Mumbai to speak to the Indian

central bank governor to find out how he was able to bring India back

First, I asked him what it was like to be called a rock star central

I try not to think about it because inevitably,

people will come to terms with the fact that central bank is

But, you know, while it lasts, let them talk.

I don't know whether she likes it or is worried!

I want to ask you a little bit about the stock markets,

Seriously, what we have been trying to do with the government

and the reserve bank is try to change the perception about India.

There was a point at which people thought even the unimaginable,

India a country with $280 billion in reserves, would find it difficult

That was never a possibility, but people were not prepared to go

The headlines, I have to say, the newspapers,

they picked at every bad thing that was happening and focused on it.

So our attempt was to try to change the dialogue.

We do have macro economic challenges.

High inflation, a fiscal deficit which is much too large and we can

And we had an external deficit, we were financing ourselves

We have focused on bringing down that borrowing and I am happy to

report that while the governments and the reserve Banks says we will

be borrowing 3.7 percentage point of GDP this year, down from five last

year, the private analysts believe it could

I think one of the reasons that India has been under pressure is

because of the possibility of the Fed being back taking back cash.

Do you think the Fed is taking enough nodes of the global effect of

I think that at every meeting, the Fed has been hearing concerns

The Fed's mandate, as any Federal reserve President

has said, does not include foreign countries, except indirectly to the

But I don't think the Fed would like to see other countries

And to that extent, we are mindful to some extent we

might even think that the shot across the bows that Bernanke

fired in May was to get the markets to prepare for a federal tapering.

And I think certainly we will be better prepared

What is happening in the world economy is in not the only

The Philippines have struggled to recover from a typhoon

and had a lack of insurance and infrastructure.

I travelled to Manila and asked the Philippines' finance minister about

reports of the recent recovery and growth and whether it could last.

About the causes of the recent recovery and growth.

The story of the Philippines is about the comeback of a country that

Since the president came into office, our growth has averaged

This year, we are projecting 7% to 7.5%.

But we are building foundations so that we can build `` sustain

Because that is our goal, to make sure we give every Filipino

the opportunity to realise their potential.

If we can talk about six months on from the typhoon, I talked to some

people were living in slums on the outskirts of Manila and for them,

they are telling me that they are now being relocated from the slums

into places which are too far for them to get to their jobs.

We divided the area affected by the typhoon in 24 sections.

And each of the sections, we asked the private sector to adopt them.

Because the area affected by the typhoon is among the poorest

In the country, a coconut `based industry which is the poorest area

in the country. The coconuts were destroyed. A long time to get them

back to productive productive stage. So the key was to get them connected

to businesses. Businesses here tend to be controlled by a small number

of families. Cronyism is an issue for your country. Does that not need

to be tackled? Because that would ensure good governance. The best way

to share with other people who are not familiar with the Philippines

who are not familiar with the Philippines is to share with

companies who have been in the Philippines for a long time. I could

go through a long list, Coca`Cola, Procter Gamble, and we are now

among the five largest building companies in the world `` five

largest building countries in the world. More and more people are

discovering the Philippines. Economies are about people. Yes, but

there is a real focus on tackling corruption? Yes, we impeached our

chief justice for the first time in history. How many countries do that?

Not many. This is a war against corruption. We want to make sure

that this is going to be something good for our population. The

president wants there to be no corruption and `` but there were no

magic wands in the fight. This will be a journey, and investment in

people and processes and investment in situations `` in institutions. We

need a meritocracy. We are headed towards that. Incentive `based

compensation, we are using information to set proper goals and

guide performance. And we are seeing the results. It is not only

developing countries that have had a tough time.

Developed economies also faced daunting prospect after being struck

by the worst financial crisis in the `` in a century. The British banking

industry has just recovered to precrisis levels. Wary of going down

the same route of debt filled growth, the UK is trying to sell to

countries like China. I sat down with the Chancellor, George Osborne,

to ask how they plan to become a hub for the Chinese currency was going.

We are here on the trading floor of the world's largest bank, and it is

a Chinese bank. But the Chinese currency is not well known in

Britain at the moment but I think it will become as familiar as the

dollar. I want building `` British businesses involved in trading and

investing in it. It happens all around the United Kingdom, not just

London. That means jobs for generations of British people. But

this will be a long time to come, because the Chinese currency is not

a tradable currency. This could be a decade before the Chinese liberalise

the country `` the currency and make a tradable. Yes, of course it will

take time for it to become a global currency, but it is happening pretty

quickly, that process. For example, just in the space of the last two

years, the amount of Chinese currency trading in Britain has

grown dramatically. The head of this bank told me that his bank intends

to issue a 2 million bond issue in London. That'll be the first time

that a Chinese bank quartered in China, not one of the subsidiaries

of that Bang, it is a bond in London. That business is happening

right now. `` a Chinese bank headquartered in China, not one of

the subsidiaries. What about other countries which have been here and

done more with China, is Britain a bit late? I agree with you that

Britain needs to do more. Britain did not do enough over the previous

ten or 15 years to export to China, to seek Chinese investment. I think

we were too reliant on Europe and we didn't look to the broader world. I

have been determined to change that in the couple of years that I have

been doing this job. You can already see our exports to China have

doubled over the last three years and Chinese investment in Britain

has doubled over the last year. I have made it a personal priority of

mine. It is part of our economic plan to rebalance Britain, to make

sure Britain is connected to the fast`growing parts of the world. And

this week here in Beijing, we have taken a big step with China to carry

that `` take that step. France is also struggling

with slow growth. It had to cope with not only

the slow financial crisis The second largest economy in

the Eurozone has had to help other countries even while its own economy

suffers from low productivity. The French government wants to

overhaul the system, and introduce reforms that helped

Germany shed its 'sick man I asked the French finance

minister about the plans. The approach of Mr Hollande is that

we need to build a strong compromise ` we need the

state, the state helping businesses But at the same time,

negotiate as well. It's of general interest that this

country becomes more competitive. So you're telling me there's

an acceptance there has to be We have to attack,

the problem is the taxation system. This is why President Hollande

reduced the cost of labour. We will move until 30 billion Euros

less... When you compare France with

Germany, Taxes

for social security are higher. Angela Merkel has said the social

model of Europe is unsustainable. But still,

we need strong social set nets. We've heard from the policy makers,

what do the best economists see First, two economics went head

to head on one of the most I travelled to Hong Kong to speak to

them and find out Five years on from the worst

economic crash in a century, The top 1%

of earners have captured 95%. That means the bottom 99% have

only seen incomes rise by 0.4%. Is this high level of inequality

the cause of slow recovery? Two of the most eminent

economists disagree. Those

at the top don't need to spend. Those at

the bottom are spending everything. Short of

an irrational investment bubble... Short of that,

when you have this high level Without people buying,

it's hard to have a robust economy. If the local to spend as much, would

it make sense? I see it as as the meantime, I think the problems have

much more to do with deregulation. Nor really for Europe, except the

very crude thing, the great depression, again in 2007. European

countries are also the mess. The world's largest economy is not only

facing it places but is also having to do with China. Can the United

States maintain this position? I spoke to a former chief economist to

get testy on long`term prospects. I think the risks are more balanced. I

can tell you 100 things that could go wrong but I think a lot of things

could go rate. `` right. The United States has a lot of things, its

legal system, all the land, immortal straits. People are predicting it is

all over for the United States. They were predicting again later. I think

immortal signs of resilience. But it will not necessarily see if all of

the problems. We can see what evidence of this. It is about the

constitutional devices. We have problems but the bottom line is that

it is more likely to get better. You mentioned the risks but the bigger

picture is that the United States will remain the most technologically

advanced, more productive? Some of the doomsayers are reasoning

questions about this? I think the United States has been doing very

well. It has been a beneficiary of China. Problems exist in the United

States. Equality is the number one. It is not a good thing. Certainly,

the date levels are very high. `` debt. The United States has a lot of

advantages, still. I think the death of the United States has been told

to many times. Eventually, China will pass the United States but it

is not going to be so quick as some of these calculations show. Give us

your take on China. Spectacular growth but that is slowing down. Can

they manage? That is a very tough question. What they have done is

amazing. If you asked me to new cycle would be have got through ten

years without a single significant recession I would have said West

than 50`50. `` less. Going forward, it looks like it is going to get

harder and harder. Every time something slows down, it goes back.

The gnawing cannot go on forever. It is not easy to take this train that

is going very fast and say that we will get actually bring Western

economies... If you are asking if the next 40 years will be like the

last 40 years, highly unlikely. What about the rest of the world? What

are the big issues and risks are the big issues and risks

confronting the global economy? I spoke to a woman from New York

University. `` a man. Still the number of risks exist in the

economy. Political tensions could exist in the eurozone. In the United

States, you have gridlock. It could have an impact on fiscal policy. In

China, questions about landing. That is going to affect things, and also

geopolitical risk. We will see with the permanent agreement with Iran

can be agreed. It could lead to mortally contravention. We have here

from leading economists and top policymakers. The global economy is

finally recovering. The good news is that the risk of recession seems to

be behind us. But, still challenges on the horizon. Including questions

about income equality that pose fundamental questions of growth. The

crisis may be behind us but still plenty of hard work ahead for

economists. That is all we have time for. Check out the website. Join us

next time.