06/05/2013 World Business Report

fraudulent. -- process.

Now for the latest financial news Malaysian markets rally and the

ringgit currency hits a ten-month high, after the governing National

Front coalition extends its 56-year rule, seeing off a strong challenge

by an opposition alliance that had unnerved investors.

Things have been picking up recently for American exporters.

But Europe is still a big worry. We go to New Orleans to visit one

Welcome to World Business Report. I'm Juliette Foster. In a minute

we'll have a look at some of the day's other top business stories.

It's been an exciting morning for the Malaysian markets. Both the

stock market and the currency, the ringgit, soared after election

results that kept the governing National Front coalition in power.

Stocks added more than 7% as worries over political instability

fizzled out. Shireen Muhiudeen is the managing director and principal

fund manager at Corston-Smith Asset Management and joins me now from

It is a positive market reaction but were investors keen for a

National Front victory? Bargain I think the working for a National

Front victory per se but the wanted the election to be over. Now that

it is over, you can see the risk overhang for the markets is gone.

This is why the rally has happened. The Malaysian market has been

underperforming. It is not as if there is anything wrong if the

economy but it is because of the election over again. A has the

overhang disappeared? The National Front did not get a majority. Some

say it makes the Prime Minister vulnerable and markets uncertain.

The markets are pleased that it is not a hung parliament which is what

some people were expecting. He has got a majority although not a two

vote majority, which is something of the past. -- two-thirds majority.

The voter turnout was positive. We focused on the investment a soil.

Having this the voter turnout was positive. The government has its

work cut out for it. Looking at the economic plans ahead, what will the

Prime Minister to about the debt levels? Malaysia will have to do

some of the necessary changes, such as the previous subsidies we have

in place, widening the tax collections game. That will have to

happen. In most nations, do you do not implement his tops of policies

after an election. We will see some of those coming through. There is

concern about domestic investment into to government companies. Some

feel that does not create arable playing field. There is something

else that has to change in business culture. Yes. From our perspective,

we want to see more governance in the business transactions, more

transparency. As the markets mature, we have been running money for good

five years, we are seeing maturity and changes taking place. Some

people argue that it is happening too slowly. But it is happening.

US exporters benefited as countries around the world rebounded from the

lows of the financial crisis induced recession. But with Europe

still struggling, American companies may find life a little

bit harder. Michelle Fleury reports from New Orleans where she found

one company that has found the ingredients for export success.

This is a ground mustard seed we prepared from Canada. These are

Our first market was in Japan. We have sales in a 37 countries. Our

biggest client is in Mexico then the UK and then Japan as the Third

Today, the company is contributing to America's exporting strokes. It

is helping Obama get one step closer to his goal of doubling

exports to the world by the start of 2015. America is already halfway

there. Infant anon mac, the US exported 1.5 trillion dollars worth

of goods and services around the world. Included full of, the climb

to a record 2.1 trillion dollars. It is on its way to Obama's goal.

We reached one billion consumers around the world from this river

right here. Demand from developing countries has an effort countries

in this part of the Earth back, especially those who make a fire

and products. -- Perth. -- high-end In China, American fees are in huge

demand. There is a perception of quality and safety. The height and

consumers do not care what it costs. They want it because it is

expensive. To boost American exports, Obama has supported trade

deals with Europe and the Asia- Pacific. At a time when the US is

struggling to recover, it is a strategy that might insure these

waterways stay busy. Later today we'll get the latest

economic outlook for Italy from the country's national statistics

service. Following the appointment of new Prime Minister Enrico Latta

and the relative stabilisation of the country, it's thought the

outlook will have a somewhat positive tone. But what now for

Italy? Has the third largest economy in the eurozone finally

Apology for the loss of subtitles for 41 seconds

measures be eased off? With me now Who may struggle for them is to

keep the budget deficit target under the EU's target of 3%. Can

they hold that all or the likely It is likely to happen. How much of

an overshoot? That is the difference. We had an overshoot of

2%. Now we are getting overshoots of a few tenths of a %. The bond

markets are much more benign for the countries now. He has also

shows that the markets are trusting countries more that they can get

through the crisis. The European Central Bank has put into the

safety net last July an overall improvement in market sentiment.

The deputy Economics Minister says they will not reach their budget

deficit target. Is the year is unlikely to concede on that.?

point? We had a shift in the crisis this year. If we do it hid the

deficit target, we have to cut more. Countries are looking at the

economic situation and the budget in conjunction. If the country

misses the target because it is in recession, that is fine. There is

what happened in Spain and Portugal. And now in France and Italy as well.

If a country is not in recession anymore, they have to cut may be

even more. They are hitting the structural deficit and not the

normal ones anymore. That is In other news: Growth in China's

services sector slowed sharply in April to its lowest point since

August 2011, providing fresh evidence that economic revival will

remain modest and may be facing wider risks.

The HSBC services Purchasing Managers' Index, or PMI, fell to