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Those are the latest headlines from BBC World news. Time now for World | :00:03. | :00:13. | |
:00:13. | :00:23. | ||
Once thought of as an economic powerhouse, India may post the | :00:23. | :00:27. | |
weakest growth rate in a decade. We will take a look at one is -- at | :00:27. | :00:30. | |
what is going wrong. But none for mob, another record | :00:30. | :00:35. | |
unemployment figure is expected for the eurozone with the Sun 19.5 | :00:35. | :00:45. | |
:00:45. | :00:48. | ||
million people out of work. -- An exciting look at all the latest | :00:48. | :00:52. | |
in the world of business and money. We will be taking a look at those | :00:52. | :00:57. | |
eurozone figures. We will also go live to the Asian | :00:57. | :01:01. | |
pro and talk about the roller- coaster ride the Nikkei has been | :01:01. | :01:04. | |
having. We'll see how it has been faring today. | :01:04. | :01:10. | |
First we start with India. Just three years ago that economy was | :01:10. | :01:14. | |
booming, with annual growth of more than 11% and predictions by some | :01:14. | :01:20. | |
that it was on track to overtake China. How times have changed. | :01:20. | :01:25. | |
Since then the rate of growth has slumped. India has been hit hard by | :01:25. | :01:29. | |
the global economic slowdown and a raft of problems at home, including | :01:29. | :01:32. | |
political deadlock and a string of corruption scandals that have | :01:32. | :01:37. | |
deterred foreign investors. Later this morning we will get the growth | :01:37. | :01:40. | |
figures for the first quarter of this year. They are expected to | :01:40. | :01:46. | |
show India's economy expanded at a rate of just 4.8% between January | :01:46. | :01:51. | |
and March of this year. If we use this to look at India's growth for | :01:51. | :01:56. | |
the past 12 months it would come in at just 5%. That is the weakest | :01:56. | :02:00. | |
rate in a decade. We will go straight to our reporter was at a | :02:00. | :02:10. | |
:02:10. | :02:10. | ||
small manufacturing plant in Mumbai. You are at an auto parts | :02:10. | :02:14. | |
manufacturer. We had a company's numbers the other day and it | :02:14. | :02:19. | |
highlighted how hard it is on the Indian market. It slumped. It | :02:19. | :02:26. | |
reflects the general economy there? Well, there are some external | :02:26. | :02:31. | |
factors that have impacted India in the last couple of years. External | :02:31. | :02:37. | |
demand has dried up. Manufacturers like this one and even beat | :02:37. | :02:41. | |
industry had unanimously said that India's problems are more home- | :02:41. | :02:46. | |
grown. That it is government policy that has not supported manufacture | :02:46. | :02:49. | |
an in fact policy has been inconsistent. Industry has been | :02:49. | :02:53. | |
scared to make any big investments. Over the past year we had seen | :02:53. | :02:58. | |
investments falling sharply. We have also seen less in employment | :02:58. | :03:02. | |
generation. Jobs are a big worry for fresh graduates in the country. | :03:02. | :03:07. | |
Another big problem is consumption. Prices have been rising. People | :03:08. | :03:13. | |
have been consuming less. For the first time in a decade, and your | :03:13. | :03:21. | |
car sales were down. -- annual. It is surprising. For viewers | :03:21. | :03:24. | |
around the world, it must be surprising. These home-grown | :03:25. | :03:30. | |
problems, have they only risen in the past three years? Three years | :03:30. | :03:35. | |
ago, India was booming. We thought it was going to equal or overtake | :03:35. | :03:45. | |
:03:45. | :03:45. | ||
That is right. Between 2009 and 2011 India was growing at 8.4%. It | :03:45. | :03:50. | |
is a little over a year ago that we started seeing a slowdown. That is | :03:50. | :03:55. | |
when we saw government involve -- government policy in action. For | :03:55. | :03:57. | |
example the Government moved on foreign direct investment in the | :03:57. | :04:01. | |
retail sector. They opened it up and then had to backtrack on the | :04:01. | :04:05. | |
decision. What industry is saying is that they cannot trust any | :04:05. | :04:08. | |
decision the Government is making. They are scared to make any long- | :04:08. | :04:13. | |
term investments. At the end of 2012 we did see the Government | :04:14. | :04:18. | |
recognise that and we did see them opening up several directors -- | :04:18. | :04:21. | |
several sectors to foreign investment. India's finance | :04:21. | :04:24. | |
minister has been travelling around the world to try and build | :04:24. | :04:27. | |
investment. He has been holding meetings with industry bodies | :04:27. | :04:31. | |
within the country as well. Most people from the industry say that | :04:31. | :04:34. | |
they need to see a little more action on the ground. The other big | :04:34. | :04:38. | |
worry is that India is scheduled to have nationwide elections next year. | :04:38. | :04:42. | |
They are worried that this might derail the process of economic | :04:42. | :04:44. | |
reform. We will be checking in with you | :04:44. | :04:48. | |
over the next few hours, so you stay there and we will talk to you | :04:48. | :04:57. | |
Japan's stock market has been recovering some ground after | :04:57. | :05:02. | |
yesterday's steep falls that saw the Nikkei, the main market, down | :05:02. | :05:09. | |
some 5%. We go straight to our reporter in Singapore. Great to see | :05:09. | :05:14. | |
you. The Nikkei, it has been a roller-coaster ride. How is it | :05:15. | :05:22. | |
faring today? It has been a crazy ride over the past week. 5.2% | :05:22. | :05:29. | |
yesterday. Over the past week close to 15%. That is 1,500 points lost | :05:29. | :05:34. | |
in a week of trade. Today we are seeing a rebound in Tokyo's stocks, | :05:34. | :05:40. | |
but still not enough to cover for yesterday's steep downturn. Exports | :05:40. | :05:46. | |
are leading the recovery, with Sony, Panasonic and listen up between 1% | :05:46. | :05:49. | |
and 1.5%. The gains are being kept due to the continued strength of | :05:49. | :05:53. | |
the Japanese yen, which is currently at a three-week high | :05:53. | :05:57. | |
against the US dollar. If you take a look at all the markets across | :05:57. | :06:01. | |
the board, it is still very cautious. Australian and South | :06:01. | :06:11. | |
:06:11. | :06:11. | ||
Korean shares inching up by midday trading. Sydney being led by mining. | :06:11. | :06:15. | |
Markets in Shanghai, Hong Kong, Jakarta, Manila not as lucky. All | :06:16. | :06:20. | |
in negative territory. When you speak with traders they say share | :06:21. | :06:24. | |
prices are slowly gathering some upside momentum held by this | :06:24. | :06:29. | |
lacklustre economic data from the US which includes GDP data, which | :06:29. | :06:34. | |
was slightly less than expected in the first quarter. All pointing to | :06:34. | :06:40. | |
a fragile expectation and raising expectations that the Fed will keep | :06:40. | :06:46. | |
its monetary policies. I mentioned India at the top of the | :06:46. | :06:51. | |
programme, but it is not the only bit of Major at news out. We are | :06:51. | :06:55. | |
also waiting for unemployment figures from the countries that use | :06:55. | :07:00. | |
the single currency. They are expected to show the jobless rate | :07:00. | :07:09. | |
hit yet another record high for last month, reaching 12.2 %. It | :07:09. | :07:16. | |
means that almost 19.5 2 million people in the eurozone are now | :07:16. | :07:19. | |
jobless. One hope for job creation is the troubled European nations | :07:19. | :07:23. | |
can export more outside the eurozone. In Spain exports have | :07:23. | :07:33. | |
been rising, but from a low level. In these boxes there are small | :07:33. | :07:40. | |
Spanish success stories. This is one of three shops of a shoe market | :07:40. | :07:44. | |
-- shoemaker in the poshest part of Madrid. Elsewhere in Spain during | :07:44. | :07:54. | |
the recession the company has closed for lack of around 40 shops. | :07:54. | :08:00. | |
Last year they opened more shops in other countries. As the internal | :08:00. | :08:05. | |
market in Spain shrinks, success in business means growing your market | :08:05. | :08:11. | |
abroad. TRANSLATION: The situation now means you have to go out side | :08:11. | :08:15. | |
to sell. The domestic market is shrinking and it is very difficult | :08:15. | :08:19. | |
to grow your business here. All these strategies are to go out side | :08:19. | :08:24. | |
and try to conquer foreign markets. Spanish exports in the first | :08:24. | :08:31. | |
quarter of this year were up 4% on last year. Imports falling because | :08:31. | :08:38. | |
of falling demand, Spain has turned a small deficit into a surplus. | :08:38. | :08:42. | |
More Spanish goods sold abroad is a ray of light in an otherwise gloomy | :08:43. | :08:46. | |
economic picture. The government has brought in a raft of economic | :08:46. | :08:50. | |
reforms and a rise in exports is a sign that Spanish businesses are | :08:50. | :08:57. | |
becoming more competitive. If you make the air conditioning systems | :08:57. | :09:02. | |
on board trains, like this business near Madrid, your internal market | :09:02. | :09:08. | |
has almost collapsed. Their business, like others he, now | :09:08. | :09:13. | |
relies on trade abroad. Spanish companies' competitive edge is held | :09:13. | :09:17. | |
by relatively low wages compared with northern Europe. The bosses | :09:18. | :09:21. | |
here believe the Government's reforms of the Spanish economy | :09:21. | :09:29. | |
still haven't gone far enough. There is a need to further it makes | :09:29. | :09:34. | |
me working market more flexible. There needs to be more innovation | :09:34. | :09:39. | |
and the competitiveness of companies and productivity needs to | :09:39. | :09:44. | |
improve. An improvement of the education system, for instance | :09:44. | :09:52. | |
technical schools. The Spanish car industry is also doing well. Like | :09:52. | :09:58. | |
other manufacturers, Volkswagen's plant in Pamplona is expanding. The | :09:58. | :10:03. | |
recession hit drags on and unemployment is still horribly high. | :10:03. | :10:07. |