28/05/2013 World Business Report

BBC World News. Now for the latest financial news with Sally Bundock

It is said to be the biggest jump in property values in the US for

seven years, so has the market recovered from the catastrophic

collapse of 2008? Growth is stalling in South Africa

and pay disputes with unions raises fears of a repeat of last years

mining violence. Welcome to World Business Report.

I'm Sally Bundock. Also, we will tell you which is the happiest

Apology for the loss of subtitles for 67 seconds

Some of the nine people that it on it, only one is getting that

the eight the eight are looking for copies.

This is not unique to Brooklyn. The same story is repeating itself

throughout the US. With the number of homes for sale at record lows,

that is driving prices higher. In the past year, home prices in

Atlanta, Georgia, have shot up by 16%. San Francisco, 19%. 23% in

Phoenix, Arizona, once the centre of the housing market bust. But the

market al market altogether, creating a

the turn bubble at this point and wall looking that's -- at this as

seen an extreme situation now but it will rebate going forward.

drop going forward. America appears to be rebuilding one floor at a

time. world's ha

world's happiest nation according to the Organisation for Economic

Co-operation and Development. This income, jo

income, jobs, housing and health. Sharanjit Leyl is at our Asia

getting top spot. -- business hub. Along with the things you mentioned,

it is also the focus of the Asian economy. We saw some other

countries on the list, the likes of Sweden, Canada, Switzerland and

the survey countries on criteria that you

mentioned, income, health, safety and housing. M

Australia's 23 million people are aged between 15-64. And they hold a

paid job. That is above the average. Life expectancy also higher, almost

82 years. And the economy has posted more than two decades of

straight growth due to demand for its natural resources. It has also

managed to avoid the global recession. Essentially, the

economic strength is reflected in the Australian dollar, which is

currently trading close to 30-year highs. But there is a real but

because the government is starting to see a lot of challenges to

Australia's growth. The mining boom there is tapering off somewhat. And

there is a little bit of an unemployment problem as it is

rising. The Labour government in Australia is now trying to move the

economy away from its dependence on economy away from its dependence on

mining and is trying to focus on sectors such as construction and

manufacturing. They have many other challengers, including a widening

income gap. The top 20% of the population and six times more than

the bottom 20%. So, it is not all rosy. That is always the case. Very

interesting. Thank you. It has topped that index for three years

in a row. Moving on to a multi- billion dollar business. Bubble tea

is very popular. But the industry has been hit with a recall.

Singapore has look -- blacklisted some types after an asset was found

in some of duc Afternoon tea with a twist.

everybody's cup of tea. This kind of he has taken off in Asia. This

store in Singapore's central business district sells 700 cups

every week. With two other shops in the country, the company makes more

than $800,000 every year. It goes well with the drinks that they have,

it complements it very well. It's a good afternoon treat because it is

cold and refreshing. The tea is not just a simple thing. You can find

it across Asia and even in thing. What is the fuss about? This

is what is on offer. A green, jasmine tea. A hazelnut tea. And

this is the most popular. A milk tea with black curls. They are made

out of tapioca. You can see them in the bottom. -- pearls. They are

soft, sweet and Chile. That is apparently what makes these drinks

so popular. -- chewy. That is also what makes them the most concern.

Several of the products have been banned, many of them tapioca balls.

But the operation manager is not worried because he says the company

does not use any of the blacklisted Pollux. The Czechs put in place to

buy both Taiwan and our suppliers are getting stricter. -- checks. I

this firm at least, the bubble teak bubble is not about to burst.

There is growing concern about the state of the South African economy.

Figures due out today are expected quarter. Perhaps the biggest

concern is the mining industry because if you include associated

activities it accounts for about 20% of the South African economy.

Very significant indeed. But global demand for gold, Puttnam and cull

has been sluggish. -- pattern. And miners are demanding big pay

increases. One union last week made the headlines and called for a 60%

pay rise for its members. The nation is also facing a power

shortage and there could be blackouts over the winter. South

Africa is coming into winter now in the coming months. We were hoping

to speak to a leading economist based in Johannesburg. Apparently

we can speak to him. Michael Keenan is a Currency Strategist from ABSA

Capital and he joins me now from our Johannesburg studio. It is

lovely to see you. Starting with the situation as far as growth is

concerned. The general scenario in South Africa. From your point of

view, what other reasons for the store in growth? Good morning.

Unfortunately, South Africa has globally. We are a big exporter of

commodities. With slowing growth, coming now particularly out of

China and Europe, those our main trading partner regions, we have

seen the slowing in export and consumption. People have been

unemployment is still relatively high. We are still struggling to

spending aggressively in South Africa. And that traditionally has

been a strong driver of South infrastructure spending, that is

still taking place in the background. That has also slowed

down somewhat. For the most part, things are happening in the back

infrastruc infrastructure. That also is

trimming back on growth. We are expecting growth to come in at

about 2.5%, well below the growth to alleviate some of those

unemployment pressures. We need growth in excess of six this -- 6%

on a consistent basis. Just briefly, tell us about the mining industry.

Because that is a real concern for most people. And from the outside

point of view, that is what all economists and analysts are saying

outside of South Africa is a big worry. Absolutely. We can see it in

weakened dramatically in the past year. That is a result of the

strike activity that is hitting the headlines. We had a bad spell last

year. But it has come back again. There is a lot of Labour tension

and that is denting things like productivity levels and the current

deficit, which is a huge structural flaw inside South Africa.