:00:05. > :00:15.fraudulent. -- process.
:00:15. > :00:18.
:00:18. > :00:21.Now for the latest financial news Malaysian markets rally and the
:00:21. > :00:24.ringgit currency hits a ten-month high, after the governing National
:00:24. > :00:31.Front coalition extends its 56-year rule, seeing off a strong challenge
:00:31. > :00:35.by an opposition alliance that had unnerved investors.
:00:35. > :00:39.Things have been picking up recently for American exporters.
:00:39. > :00:49.But Europe is still a big worry. We go to New Orleans to visit one
:00:49. > :00:52.
:00:52. > :00:57.Welcome to World Business Report. I'm Juliette Foster. In a minute
:00:57. > :01:01.we'll have a look at some of the day's other top business stories.
:01:01. > :01:04.It's been an exciting morning for the Malaysian markets. Both the
:01:04. > :01:08.stock market and the currency, the ringgit, soared after election
:01:08. > :01:11.results that kept the governing National Front coalition in power.
:01:11. > :01:16.Stocks added more than 7% as worries over political instability
:01:16. > :01:19.fizzled out. Shireen Muhiudeen is the managing director and principal
:01:19. > :01:29.fund manager at Corston-Smith Asset Management and joins me now from
:01:29. > :01:34.
:01:34. > :01:41.It is a positive market reaction but were investors keen for a
:01:41. > :01:45.National Front victory? Bargain I think the working for a National
:01:45. > :01:49.Front victory per se but the wanted the election to be over. Now that
:01:49. > :01:54.it is over, you can see the risk overhang for the markets is gone.
:01:54. > :01:58.This is why the rally has happened. The Malaysian market has been
:01:58. > :02:04.underperforming. It is not as if there is anything wrong if the
:02:04. > :02:08.economy but it is because of the election over again. A has the
:02:08. > :02:16.overhang disappeared? The National Front did not get a majority. Some
:02:16. > :02:20.say it makes the Prime Minister vulnerable and markets uncertain.
:02:20. > :02:26.The markets are pleased that it is not a hung parliament which is what
:02:26. > :02:32.some people were expecting. He has got a majority although not a two
:02:32. > :02:40.vote majority, which is something of the past. -- two-thirds majority.
:02:40. > :02:44.The voter turnout was positive. We focused on the investment a soil.
:02:44. > :02:50.Having this the voter turnout was positive. The government has its
:02:50. > :02:59.work cut out for it. Looking at the economic plans ahead, what will the
:02:59. > :03:05.Prime Minister to about the debt levels? Malaysia will have to do
:03:05. > :03:11.some of the necessary changes, such as the previous subsidies we have
:03:11. > :03:16.in place, widening the tax collections game. That will have to
:03:16. > :03:26.happen. In most nations, do you do not implement his tops of policies
:03:26. > :03:31.after an election. We will see some of those coming through. There is
:03:31. > :03:34.concern about domestic investment into to government companies. Some
:03:35. > :03:43.feel that does not create arable playing field. There is something
:03:43. > :03:47.else that has to change in business culture. Yes. From our perspective,
:03:48. > :03:53.we want to see more governance in the business transactions, more
:03:53. > :03:57.transparency. As the markets mature, we have been running money for good
:03:57. > :04:00.five years, we are seeing maturity and changes taking place. Some
:04:00. > :04:09.people argue that it is happening too slowly. But it is happening.
:04:09. > :04:13.US exporters benefited as countries around the world rebounded from the
:04:13. > :04:15.lows of the financial crisis induced recession. But with Europe
:04:15. > :04:22.still struggling, American companies may find life a little
:04:23. > :04:32.bit harder. Michelle Fleury reports from New Orleans where she found
:04:33. > :04:33.
:04:33. > :04:39.one company that has found the ingredients for export success.
:04:39. > :04:49.This is a ground mustard seed we prepared from Canada. These are
:04:49. > :05:27.
:05:27. > :05:33.Our first market was in Japan. We have sales in a 37 countries. Our
:05:33. > :05:43.biggest client is in Mexico then the UK and then Japan as the Third
:05:43. > :05:44.
:05:44. > :05:48.Today, the company is contributing to America's exporting strokes. It
:05:48. > :05:54.is helping Obama get one step closer to his goal of doubling
:05:54. > :05:59.exports to the world by the start of 2015. America is already halfway
:05:59. > :06:04.there. Infant anon mac, the US exported 1.5 trillion dollars worth
:06:04. > :06:14.of goods and services around the world. Included full of, the climb
:06:14. > :06:15.
:06:15. > :06:18.to a record 2.1 trillion dollars. It is on its way to Obama's goal.
:06:18. > :06:23.We reached one billion consumers around the world from this river
:06:23. > :06:27.right here. Demand from developing countries has an effort countries
:06:27. > :06:37.in this part of the Earth back, especially those who make a fire
:06:37. > :06:41.
:06:41. > :06:45.and products. -- Perth. -- high-end In China, American fees are in huge
:06:45. > :06:50.demand. There is a perception of quality and safety. The height and
:06:50. > :06:54.consumers do not care what it costs. They want it because it is
:06:54. > :06:59.expensive. To boost American exports, Obama has supported trade
:06:59. > :07:02.deals with Europe and the Asia- Pacific. At a time when the US is
:07:02. > :07:07.struggling to recover, it is a strategy that might insure these
:07:07. > :07:10.waterways stay busy. Later today we'll get the latest
:07:10. > :07:13.economic outlook for Italy from the country's national statistics
:07:13. > :07:16.service. Following the appointment of new Prime Minister Enrico Latta
:07:16. > :07:20.and the relative stabilisation of the country, it's thought the
:07:20. > :07:24.outlook will have a somewhat positive tone. But what now for
:07:24. > :07:34.Italy? Has the third largest economy in the eurozone finally
:07:34. > :07:34.
:07:34. > :08:16.Apology for the loss of subtitles for 41 seconds
:08:16. > :08:20.measures be eased off? With me now Who may struggle for them is to
:08:20. > :08:30.keep the budget deficit target under the EU's target of 3%. Can
:08:30. > :08:34.
:08:34. > :08:38.they hold that all or the likely It is likely to happen. How much of
:08:38. > :08:45.an overshoot? That is the difference. We had an overshoot of
:08:45. > :08:53.2%. Now we are getting overshoots of a few tenths of a %. The bond
:08:53. > :08:57.markets are much more benign for the countries now. He has also
:08:57. > :09:01.shows that the markets are trusting countries more that they can get
:09:01. > :09:10.through the crisis. The European Central Bank has put into the
:09:10. > :09:18.safety net last July an overall improvement in market sentiment.
:09:18. > :09:28.The deputy Economics Minister says they will not reach their budget
:09:28. > :09:30.
:09:30. > :09:36.deficit target. Is the year is unlikely to concede on that.?
:09:37. > :09:40.point? We had a shift in the crisis this year. If we do it hid the
:09:40. > :09:45.deficit target, we have to cut more. Countries are looking at the
:09:45. > :09:49.economic situation and the budget in conjunction. If the country
:09:49. > :09:54.misses the target because it is in recession, that is fine. There is
:09:54. > :09:58.what happened in Spain and Portugal. And now in France and Italy as well.
:09:58. > :10:02.If a country is not in recession anymore, they have to cut may be
:10:02. > :10:12.even more. They are hitting the structural deficit and not the
:10:12. > :10:14.
:10:14. > :10:17.normal ones anymore. That is In other news: Growth in China's
:10:17. > :10:19.services sector slowed sharply in April to its lowest point since
:10:19. > :10:27.August 2011, providing fresh evidence that economic revival will
:10:28. > :10:30.remain modest and may be facing wider risks.
:10:30. > :10:34.The HSBC services Purchasing Managers' Index, or PMI, fell to