:00:18. > :00:22.champion after beating it --... Now for World Business Report.
:00:22. > :00:28.A bigger than expected jump in China's inflation rate with rising
:00:28. > :00:38.food prices. They are young and they are
:00:38. > :00:41.
:00:41. > :00:46.unemployed in Portugal. Could immigration be the answer for them?
:00:46. > :00:50.Food prices have driven China's annual consumer inflation to a
:00:50. > :00:53.stronger than expected 3.6% for March. This rise is due to bad
:00:53. > :01:03.weather which has pushed up food prices and it also authorities
:01:03. > :01:07.raising the price of fuel. However, producer prices fell by 0.3%.
:01:07. > :01:12.Michael, what should we make of this slight contradiction? On the
:01:12. > :01:16.one hand you have got the headline inflation figures going up, or the
:01:16. > :01:20.other hand you have got producer figures going down.
:01:20. > :01:24.I don't think there is a contradiction. I think both figures
:01:24. > :01:29.show that the government is getting inflation under control. Last year
:01:29. > :01:33.we were talking about a level of inflation of about 6.5%. Food
:01:33. > :01:37.inflation was even higher. The government at that point was
:01:37. > :01:42.seriously worried that people could get angry about the rising prices
:01:42. > :01:46.and perhaps become more dissatisfied with the government.
:01:46. > :01:51.It worked hard to bring prices down and that is essentially what it has
:01:51. > :01:55.done over the last few months or so. So this particular figure from
:01:55. > :02:05.March of 3.6% - it is well within the government's target for this
:02:05. > :02:06.
:02:06. > :02:09.year at all 4%. One The government will be content with these figures.
:02:09. > :02:15.You think the emphasis will be on maintaining growth rather than
:02:15. > :02:19.stepping on inflation? Yes, I think towards the end of
:02:19. > :02:22.last year the emphasis by Chinese officials changed slightly from
:02:22. > :02:27.dampening down inflation to making sure the economy grows enough to
:02:27. > :02:32.meet everybody's expectations. As we all know, there is less demand
:02:32. > :02:36.for China's exports from North America, from Europe, that kind of
:02:36. > :02:40.thing. The government has got to be concerned that the economy grows
:02:40. > :02:45.enough to give people jobs and increase wages. That is what it is
:02:45. > :02:49.doing at the moment. It is allowing more credit into the system,
:02:49. > :02:54.allowing banks to loan more money to people to make sure that if the
:02:54. > :03:01.economy slows doubt it doesn't slow down too quickly.
:03:01. > :03:04.-- slows down. Unemployment in southern Europe is
:03:04. > :03:14.prompting a flood of immigration to countries as far away as Brazil or
:03:14. > :03:24.Angola. In Portugal, graduates are at the forefront of a 40% rise in
:03:24. > :03:29.
:03:29. > :03:35.immigration since the start of the debt crisis. with no career ladder
:03:35. > :03:39.to climb at home, history is repeating itself.
:03:39. > :03:45.Portugal has long exported Labour, people willing to walk a broad for
:03:45. > :03:51.low wages. Now because of the financial crisis it faces a new
:03:51. > :03:59.wave of immigration. Now, a lot of people have letters after their
:03:59. > :04:04.name. This young masters student's grandfather succeeded in Belgium.
:04:04. > :04:11.This generation is lost, so much so that they hide achievements on
:04:11. > :04:15.their CVs to try and get the few jobs on offer. Even if you want a
:04:16. > :04:22.low wage just to pay your bills or to go out and meet some friends or
:04:22. > :04:26.have extra cash, when you put on your CV things like that you have a
:04:26. > :04:31.master's or a PhD, you were immediately rejected because they
:04:31. > :04:35.say you are over-qualified. Some are heading for African countries
:04:35. > :04:41.like Angola with its burgeoning industries. It is Brazil which is
:04:41. > :04:51.perhaps the biggest destination. Many people do not expect to return.
:04:51. > :04:54.
:04:54. > :05:01.Brazil is growing economic cliff. They need qualified people. -- are
:05:01. > :05:04.economically. The university system is still growing, they need
:05:04. > :05:14.qualified people to teach in their universities. Of course the
:05:14. > :05:17.
:05:18. > :05:26.language is the same. This university professor says that
:05:26. > :05:31.rising immigration is starting to destroy Portugal's middle class.
:05:31. > :05:35.depends on the evolution of the crisis - where we are now. In 2-3
:05:35. > :05:39.years if the situation gets better, most of these people, many of these
:05:39. > :05:46.people who are leaving now they will be back and they will
:05:46. > :05:51.contribute again took the increasing of our economy.
:05:51. > :05:57.Meanwhile, departures continue. This cafe is closing. This work her
:05:57. > :06:01.hopes for a fruit-picking jobs abroad. It seems like everyone
:06:01. > :06:05.under 30 is scouring job ads for a better life overseas.
:06:05. > :06:10.If you are looking for signs that the global economy is thriving, you
:06:10. > :06:20.could do a lot worse than looking at luxury car sales. Porsche sales
:06:20. > :06:21.
:06:21. > :06:26.are up 20% from last year. We spoke to the head off Porsche at the New
:06:26. > :06:31.York Motor Show. We have a strong momentum and we're
:06:31. > :06:41.keeping it in 2012. In March we had sales dropping by 5%. We are in the
:06:41. > :06:44.
:06:44. > :06:54.middle of a transition between two generations. We have just started
:06:54. > :06:58.with the 9-11 coupe. We have seen a renewed confidence in the United
:06:58. > :07:04.States, a very strong year for car sales. A lot of people are still
:07:04. > :07:14.worried about the rising gas prices. I can see that one very important
:07:14. > :07:18.
:07:18. > :07:24.aspect for premium products - consumer confidence. People are
:07:24. > :07:33.sending in more requests for information. This is a rebound. A
:07:33. > :07:39.very solid rebound - not very quick, not very high, but solid, permanent.
:07:39. > :07:42.I am feeling very comfortable. US market is very important for
:07:42. > :07:46.Porsche, but China is also important. How do you view the
:07:46. > :07:54.Chinese market currently where we have seen its frenetic pace of
:07:54. > :07:59.growth slowed a little? The US market is still the number one in
:07:59. > :08:06.the world. I think it will remain like that for the next 30 years,
:08:06. > :08:16.but China is growing. Not only China, but also in Russia and
:08:16. > :08:21.Brazil. The east of Europe is also strong. This is a good balance - 0
:08:21. > :08:31.depending on one market or another, which used to be the case -- not
:08:31. > :08:35.
:08:35. > :08:39.depending.... The markets are a balance across the world, that is
:08:39. > :08:43.positive news for everybody. Belgian transport workers are
:08:43. > :08:50.continuing to strike until they hold talks with the government
:08:50. > :08:55.today after an inspector was killed on Saturday. Brussels public
:08:55. > :08:58.transport supervisor was beaten to death after a call to the site of
:08:58. > :09:04.an accident. A suspect has been arrested.
:09:04. > :09:14.Film Federer are still talking about a hung their games which
:09:14. > :09:18.
:09:18. > :09:23.talking $33 million -- film fans -- the hunger games.
:09:23. > :09:29.It has topped the domestic growth of each of the Twilight movies and
:09:29. > :09:34.all except the first and last of the Harry Potter films.
:09:34. > :09:42.Markets are looking negative at the moment, at the Tokyo market is at