Browse content similar to 18/12/2012. Check below for episodes and series from the same categories and more!
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emergency shelters -- of Fiji. Now for the latest financial news, | :00:05. | :00:15. | |
:00:15. | :00:21. | ||
Fellow. You're with World Business Report. -- hello. Pressure grows on | :00:21. | :00:24. | |
China to take action on long- standing trade restrictions with | :00:24. | :00:30. | |
the US, as crucial trade talks get under way. I'm Rico Hizon in | :00:30. | :00:35. | |
Singapore, Asian stock IRE kids are mostly higher boosted by US the | :00:35. | :00:42. | |
Scot progress. -- stock markets. -- fiscal progress. The latest | :00:42. | :00:45. | |
inflation numbers are once again expected to be above the | :00:45. | :00:50. | |
Government's own target. But does it matter? Speculation mounts the | :00:51. | :01:00. | |
:01:01. | :01:02. | ||
targets could be removed altogether. The United States will press senior | :01:02. | :01:06. | |
Chinese officials for action to tackle long-standing trade problems | :01:06. | :01:12. | |
between the countries. A Chinese delegation, led by vice-premier, is | :01:12. | :01:15. | |
in Washington today and tomorrow for talks with US Trade | :01:15. | :01:19. | |
Representative Ron Kirk. He is expected to push China to drop | :01:19. | :01:23. | |
restrictions on US livestock and farm products, and take stronger | :01:23. | :01:28. | |
action to stop counterfeiting and piracy of American goods. After the | :01:28. | :01:32. | |
war of words we have seen in the recent past, are we now in a new | :01:32. | :01:39. | |
era of talking and diplomacy? I'm joined by Daniel, CEO of Kitum | :01:39. | :01:43. | |
advisers, and asset management company that advises hedge funds. | :01:43. | :01:47. | |
Thank you for joining us. We have a presidency that does not have to be | :01:47. | :01:52. | |
re-elected and a new leadership in China. Is this the time for them to | :01:52. | :01:57. | |
try and find more middle ground? These talks are not set up to | :01:57. | :02:00. | |
necessarily have clear results, they are men for more high-level | :02:00. | :02:04. | |
trade representatives to talk about issues -- meant for. This time | :02:04. | :02:08. | |
around we will look for tone, is there a change because of the new | :02:08. | :02:13. | |
leadership in China unless political pressure on Obama or not | :02:13. | :02:16. | |
needing re-election? We will see if there is some change around some of | :02:16. | :02:20. | |
the tone in these issues that they have been coming back to year after | :02:20. | :02:24. | |
year without much resolution. it comes to the issues, I have | :02:24. | :02:28. | |
mentioned a few of them, there's also the issue of the Chinese | :02:28. | :02:33. | |
currency of course. What is most important for both sides? At the | :02:33. | :02:38. | |
top of the list for the US, there's the currency issue. You have seen | :02:38. | :02:43. | |
the Chinese one increase 10% since the government has come in. The US | :02:43. | :02:47. | |
government still said it is undervalued and that is harming US | :02:47. | :02:51. | |
exports. This year you will see the US Chinese trade deficit at an all- | :02:51. | :02:57. | |
time high. From the Chinese perspective, they have a big | :02:57. | :03:02. | |
immediate issue interest in the fiscal cliff discussion because of | :03:02. | :03:07. | |
their large holdings of the federal debt. At the same time they have | :03:07. | :03:10. | |
some continued concerns they have had for many years around | :03:10. | :03:14. | |
restricting things like restrictions of high-technology | :03:14. | :03:17. | |
goods, in China, as well as political pressure around some of | :03:17. | :03:22. | |
their investments in the US. When it comes to who has got the upper | :03:22. | :03:26. | |
hand, can we say? As you say from China's point of view, they hold a | :03:26. | :03:31. | |
lot of US debt, an awful lot, so you would imagine they have got a | :03:31. | :03:35. | |
trump card for that reason. But from the United States's point of | :03:35. | :03:40. | |
view, the biggest on economy in the world, global leadership etc, who | :03:40. | :03:48. | |
has got the upper hand? On the DET idea, sometimes it is overblown | :03:48. | :03:53. | |
about the political weight that gives China in Washington. You see | :03:53. | :03:58. | |
Japan has increased its Security Holdings and could overtake China | :03:58. | :04:04. | |
as the largest holder of US foreign debt some time early next year. But | :04:04. | :04:14. | |
that said, this is the US's main global competitor. So it is pretty | :04:14. | :04:21. | |
much a discussion our money equals money -- of money equals money. | :04:21. | :04:26. | |
Thank you for joining us. We will keep you up-to-date on any | :04:26. | :04:30. | |
developments we hear about. Let's look at Asia now, shares across the | :04:30. | :04:34. | |
board are gaining quite a bit of ground following a strong trading | :04:34. | :04:38. | |
day in the US. It looks like politicians in Washington have made | :04:38. | :04:41. | |
some progress in solving their differences over how to fix the | :04:41. | :04:45. | |
fiscal cliff, the automatic spending cuts and tax hikes that | :04:45. | :04:50. | |
are due to kick in in America on the 1st January. Let's go to Asia | :04:50. | :04:55. | |
and speed to Rico Hizon. Nice to see you. It is the kind of story we | :04:55. | :05:00. | |
want to hear at the moment, isn't it? -- speak to. They are finding a | :05:00. | :05:05. | |
way of resolving this problem. have been hearing this story for | :05:05. | :05:10. | |
the past month and a half, Sally. That's why Asian share markets have | :05:10. | :05:15. | |
been dry rating with progress and on progress of these ongoing fiscal | :05:15. | :05:21. | |
talks in the US -- John 'M' rating. Investors here are still on edge -- | :05:21. | :05:31. | |
:05:31. | :05:32. | ||
John 'M' rating 0. The US is a key trading partner of the region. Asia | :05:32. | :05:39. | |
cars, machinery, garments, consumer electronics, to the consumer hungry | :05:39. | :05:43. | |
nation. That's not the only factor pushing regional stocks higher | :05:43. | :05:50. | |
today, local issues are improving sentiment. Japan is doing well with | :05:50. | :05:55. | |
the Nikkei up by 1.2 % today due to that last night's victory of the | :05:55. | :05:59. | |
LDP party, which is pushing for more monetary easing and a weaker | :05:59. | :06:05. | |
yen. Tokyo is closely followed Australian shares after the iron- | :06:05. | :06:15. | |
:06:15. | :06:20. | ||
ore prices got to a 5%. So far a good day for Asian markets. Thank | :06:20. | :06:24. | |
you for joining us. Inflation in the UK is expected to fall slightly | :06:24. | :06:29. | |
when figures are released later to 2.6 % in November. The price fall | :06:29. | :06:32. | |
will be welcome news, but it is still a long way from the UK | :06:32. | :06:37. | |
Government's own target of 2%. Many economists are now considering a | :06:37. | :06:41. | |
future without inflation targets to aim for. In fact the Governor of | :06:41. | :06:46. | |
the Bank of England has raised the idea of scrapping them altogether. | :06:46. | :06:49. | |
The cost of The cost ofn Britain has been rising faster than planned for | :06:49. | :06:53. | |
much of the last five years. The Bank of England asked to explain | :06:53. | :06:58. | |
itself to the government if inflation consistently tops 2% -- | :06:58. | :07:04. | |
past two. It has missed that target in 42 out of the last 62 months. -- | :07:04. | :07:08. | |
Hastoe. We're living in quite extraordinary times. Over the last | :07:08. | :07:12. | |
10 or so years the Governor of the Bank of England will tell you we | :07:12. | :07:16. | |
have been within a fairly narrow range of the 2% target on average. | :07:16. | :07:20. | |
But in the last few years we have been further away than normal. With | :07:20. | :07:25. | |
any luck, all of these were the shots and oil price spikes and wars | :07:25. | :07:30. | |
are a temporary thing and we can go back to -- and whether shots. | :07:30. | :07:34. | |
current governor of the Bank of Canada is set to become the new | :07:34. | :07:38. | |
head of the Bank of England in June. During a speech in Toronto he | :07:38. | :07:42. | |
hinted that banks might have to look at new ways to help boost the | :07:42. | :07:47. | |
economy. That fuelled speculation he may support scrapping inflation | :07:47. | :07:51. | |
targets altogether, instead focusing on boosting the economy. | :07:51. | :07:56. | |
Even the current governor of the Bank of England, Mervyn King, has | :07:56. | :07:59. | |
admitted out while targets are important, it's crucial to consider | :07:59. | :08:05. | |
the bigger picture, not just short- term targets. There may be | :08:05. | :08:09. | |
circumstances in which it is justified to aim off the inflation | :08:09. | :08:13. | |
target for a while in order to moderate the risk of financial | :08:13. | :08:19. | |
crisis. Monetary policy cannot just mop up after a crisis. Risks must | :08:19. | :08:24. | |
be dealt with before hand. I do not see this as inconsistent with | :08:24. | :08:29. | |
inflation targeting. Speculation that inflation targets may be | :08:29. | :08:33. | |
scrapped has divided top economists. Some believe it makes sense to | :08:33. | :08:37. | |
explore new options. But others think the move could damage the | :08:37. | :08:41. | |
credibility of the Bank of England. Either way there does not seem to | :08:41. | :08:45. | |
be a quick fix to either keeping a lid on inflation, or boosting | :08:45. | :08:51. | |
growth in the economy. Some other business stories, Morgan Stanley | :08:51. | :08:55. | |
has agreed to pay a fine of $5,000,000.20 securities regulators | :08:55. | :09:04. | |
in the US state of Massachusetts for withholding with information | :09:04. | :09:14. | |
:09:14. | :09:16. | ||
prior to the launch of Facebook. Morgan Stanley did not admit any | :09:16. | :09:21. | |
killed but agreed to be censored and pay the fine. -- did not admit | :09:21. | :09:27. | |
any guilt. A US judge has denied Apple's request for a permanent | :09:27. | :09:32. | |
injunction against Samsung's smart phones. A one $1 billion in damages | :09:32. | :09:36. | |
in August after a jury found Samsung had copied critical | :09:36. | :09:41. | |
features of the eye at home and I sad -- iPhone and iPad -- they won | :09:41. | :09:48. | |
$1 billion. Any injunction could potentially have been extended to | :09:48. | :09:51. | |
Samsung's new LA Galaxy products, but US District Judge Lucy Cope | :09:51. | :09:56. | |
said Apple had not presented a enough evidence to show its | :09:56. | :10:01. | |
patented Features drove consumer demand for the entire iPhone. | :10:01. | :10:05. | |
European Union fisheries ministers are meeting for two days of talks | :10:05. | :10:09. | |
to set new annual fishing quotas. The UK is concerned about plans to | :10:09. | :10:13. | |
cut cod quotas in the North Sea even though numbers are increasing. | :10:13. | :10:19. |