:00:12. > :00:14.the country's business leaders as well as politicians. The European
:00:14. > :00:17.Commission is today expected to propose larger health warnings on
:00:17. > :00:21.cigarette packets along with a total ban on flavourings such as
:00:21. > :00:24.menthol. But the proposals stop short of forcing all cigarettes to
:00:24. > :00:30.be sold in plain packets carrying graphic health warnings, as has
:00:31. > :00:34.been required in Australia from the start of this month. Still this
:00:34. > :00:36.move in Europe is likely to anger tobacco firms who fear tougher
:00:36. > :00:45.packaging rules will cut already dwindling sales in the region and
:00:45. > :00:47.set a worrying precedent for growth markets in Asia and Africa. Joining
:00:47. > :00:57.us from Brussels is Florence Berteletti- Kemp, Director, Smoke
:00:57. > :01:00.
:01:00. > :01:06.Free Partnership. What you make of these proposals in Europe? I would
:01:06. > :01:13.like to answer this question in two parts. With regards to the content
:01:13. > :01:22.of the proposal, we welcome the proposal. The 75% graphic warnings
:01:22. > :01:29.on both sides of the packet. The fact that Slims cigarettes will be
:01:29. > :01:36.banned. And the ban on menthol. Overall we would say the proposal
:01:36. > :01:43.is a revolution. Secondly, with regard to the process, we are
:01:43. > :01:49.relieved that after three years of preparation by the European
:01:49. > :01:55.Commission, is expected, very long- awaited proposals have come up so
:01:55. > :02:00.that the Parliament and Council will be able to debate, discuss its
:02:00. > :02:06.content and hopefully improve the areas which are not yet in a
:02:06. > :02:10.proposal such as plain packaging which you have just mentioned. We
:02:10. > :02:15.expect plain packaging in the proposal, we want it and at the
:02:15. > :02:21.very minimum, we want to make sure there will be nothing in this
:02:21. > :02:25.proposal that would prevent state such as the UK to go further than
:02:25. > :02:31.what the European Commission has proposed. We have seen Australia
:02:31. > :02:39.take this step. Their packages are very graphic. What evidence is
:02:39. > :02:44.there to show that this effect smokers have put its? There is
:02:44. > :02:49.plenty of evidence around the world that the packaging of tobacco
:02:49. > :02:55.products has a huge impact on smoking prevalence, especially
:02:55. > :02:59.among young people. There is the example of Canada. Canada is the
:03:00. > :03:05.first country in the world that introduced graphic warning. If you
:03:05. > :03:10.look at the evidence, and the level of smoking in that country, it is
:03:10. > :03:20.17%. That is a dream number compared to many countries in the
:03:20. > :03:22.
:03:22. > :03:29.European Union. The other example is you require. The packet is 80%
:03:29. > :03:38.plane back to front. It is a very good example. The was a decrease of
:03:38. > :03:43.4.3%. In Argentina there was an increase of 3%. Thank you for your
:03:43. > :03:47.time on World Business Report. The will keep an eye on these
:03:47. > :03:49.developments. The World Bank has raised its growth forecast for
:03:49. > :03:53.China, saying stimulus measures and approval of infrastructure projects
:03:53. > :03:57.will help boost the economy. The bank now expects China's economy to
:03:57. > :04:05.grow by 8.4% next year - up from its earlier projection of 8.1%.
:04:05. > :04:11.Rico Hizon is in our Asia business hub in Singapore. Music to years of
:04:11. > :04:17.most around the world that China will grow more than expected?
:04:17. > :04:20.is correct. The World Bank has seen the impact of lower interest rates
:04:20. > :04:28.and public investment in infrastructure beginning to show up
:04:28. > :04:31.in the mainland economic data. Effect will be felt into 2013 as
:04:31. > :04:37.monetary authorities have authorised the approval of large
:04:37. > :04:41.projects. The slowdown of Chinese Grove had prompted policy makers to
:04:41. > :04:46.announce stimulus initiatives, that includes two interest rates since
:04:46. > :04:52.June and approval of major infrastructure projects with 150
:04:52. > :04:57.billion US dollars. That raises its forecast for the developing East
:04:57. > :05:03.Asia region which excludes China. It includes Thailand and the
:05:03. > :05:08.Philippines and them and it will now expand by 5.7%. The banks said
:05:08. > :05:16.the region was likely to benefit from financial recovery from the
:05:16. > :05:20.floods just year and strong growth in the Philippines full. Millions
:05:20. > :05:23.of voters in South Korea have gone to the polls in a presidential
:05:23. > :05:28.election seen as too close to call. The election comes at a difficult
:05:28. > :05:30.time for Asia's fourth-largest economy. Growth has been slowing,
:05:30. > :05:33.exports weakening, and youth unemployment rising. But it's not
:05:33. > :05:35.just politicians who are getting the blame, so are South Korea's big
:05:35. > :05:38.family-owned conglomerates, known as the chaebols. They helped fuel
:05:38. > :05:48.the country's economic rise but calls to reform them now dominate
:05:48. > :05:50.
:05:50. > :05:55.the debate. South Koreans, the story goes build their economy
:05:56. > :06:03.brick by brick by pulling together. A generation on, many feel it is
:06:03. > :06:08.time for some redistribution. Charcoal briquettes for the city's
:06:08. > :06:12.porous times a gift from the country's biggest economic China.
:06:12. > :06:16.In this G20, May, some still live through the brutal winters with no
:06:16. > :06:20.central heating. Not everybody benefited equally from the stop
:06:20. > :06:27.Korean economic boom. The wealthiest in six times as much as
:06:27. > :06:32.the poorest and it is the country's most powerful conglomerates being
:06:32. > :06:36.blamed for the gap. We are out of time with that. These big companies
:06:36. > :06:41.will have to chip in more to improve their image. Without doing
:06:41. > :06:49.that, it will be very difficult for them to survive and the business in
:06:49. > :06:54.Korea. Society yeah has matured. and the selection, both candidates
:06:54. > :06:59.have put economic democratisation at the centre of campaigns,
:06:59. > :07:05.accusing the chaebols of squeezing out small businesses, forcing
:07:05. > :07:12.prices and enriching themselves. But the Conservative contender, it
:07:12. > :07:17.has often worries about the South Korean export has crime. Reform of
:07:17. > :07:21.the chaebols and redistribution of wealth may be national demands that
:07:21. > :07:26.cross-party lines, but with the global slowdown starting to bite,
:07:26. > :07:30.for many voters that focus is again switching back to growth. The
:07:30. > :07:35.recession he will not help the poor any more than the rich. In a
:07:35. > :07:39.country that still relies on a handful of businesses for half its
:07:40. > :07:47.GDP, it is likely to entrench the status quo and not change it. As
:07:47. > :07:52.one commentator said recently, people do not worry about political
:07:52. > :07:54.monopoly any more they worry about the economic kind. In other
:07:54. > :07:57.business news, Facebook's photo- sharing site Instagram has denied
:07:57. > :08:00.it plans to sell its users' photos to advertisers. There's been
:08:00. > :08:03.widespread anger from social media users to a change in Instagram's
:08:03. > :08:06.privacy policy, which appeared to give the site the right to sell
:08:06. > :08:09.photos. In a blog, the site's co- founder said Instagram's Terms of
:08:09. > :08:13.Use would be changed to clarify this and he insisted that Instagram
:08:13. > :08:16.did not claim ownership rights of users' photos. The Irish government
:08:16. > :08:19.has voiced its opposition to Ryanair's bid to buy rival Aer
:08:19. > :08:22.Lingus, saying the deal risked damaging competition. However,
:08:22. > :08:25.despite the government holding a 25% stake in Aer Lingus, it is the
:08:25. > :08:28.European Union that will decide whether the takeover can go ahead
:08:28. > :08:34.or not. Ryanair has responded, saying the Irish government has no
:08:34. > :08:43.power to block its bid. It already owns 30% of Aer Lingus. Brussels
:08:43. > :08:50.will rule on the deal early next year. Markets very strong in Asia
:08:50. > :08:55.today. To ban stands up. It has been rising all week ahead of the
:08:55. > :08:59.new government coming into power at the end of the week. He has clear