07/06/2013

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:00:05. > :00:15.with the South. Those are the latest headlines. Now,

:00:15. > :00:25.

:00:25. > :00:30.with the latest financial news, On a knife-edge. Global markets

:00:30. > :00:35.await key US employment numbers for May. There are fears the Federal

:00:35. > :00:40.Reserve may soon begin to pull the plug on stimulus measures.

:00:40. > :00:50.Plus, a slowdown in the desert. President Obama hosts the Chinese

:00:50. > :00:53.

:00:53. > :01:02.President over their rocky $5 billion trading relationship.

:01:02. > :01:07.Welcome. First, it's a bidet for global markets this Friday. -- big

:01:07. > :01:11.day. In a few hours, we will get the official numbers from the US.

:01:11. > :01:15.They are seeing as a vital indicator of how the US economy

:01:15. > :01:20.recovery is going and key to whether the Federal Reserve will

:01:20. > :01:25.start to scale back its support for the economy. That is something Ben

:01:25. > :01:32.Bernanke he has warned he will start to ring if data improves. It

:01:32. > :01:38.has been spooking the stock market. US employers are expected to create

:01:38. > :01:43.some thousands of jobs in May. That would be 5,000 more than April. Way

:01:43. > :01:48.below the 200,000 needed to make a dent in the unemployment rate. That

:01:48. > :01:55.jobless rate is expected to remain at 7.5% in May. Still a whole

:01:55. > :02:01.percentage point above the 6.5% that they want to see. Meanwhile,

:02:01. > :02:06.the stock markets remain extremely volatile. Concerns about the

:02:06. > :02:14.Federal Reserve's next move. US shares swung back. In the last few

:02:14. > :02:23.hours, Japan's Nikkei index officially ended bare market

:02:23. > :02:31.territory. A 20% drop in any case since two weeks ago. What is it

:02:31. > :02:37.looking like today? It is looking bad. It is when a

:02:37. > :02:44.main share index plunges 20% or more from its peak over eight weeks.

:02:44. > :02:53.The Nikkei reached its height on May 23rd. That was a 5.5 year high

:02:53. > :03:00.but has plunged since then, hurting the market and the strength of the

:03:00. > :03:10.currency. It has appreciated to 96.5 to the US dollar. It is

:03:10. > :03:10.

:03:10. > :03:15.hurting exporters and adding to its problems. A lot of fear amongst

:03:15. > :03:17.investors. They are closely watching the key US jobs report. If

:03:18. > :03:22.more Americans are getting employers, this will disappoint

:03:22. > :03:28.market. But if it is short of expectations, this will give share

:03:28. > :03:31.markets to move higher. The rest of Asia is also hurting. Shares have

:03:31. > :03:35.dropped to six-month lows. They fail to capitalise on Wall Street's

:03:36. > :03:39.gains overnight. Investors moved to the sidelines ahead of the

:03:39. > :03:42.unemployment report, which could provide clues on whether the

:03:42. > :03:47.Federal Reserve will start tapering its stimulus programme in the

:03:47. > :03:57.coming weeks. All eyes will be focused on that jobs data.

:03:57. > :03:57.

:03:57. > :04:00.They will indeed. Thank you for now. Now, after years of political

:04:01. > :04:05.isolation, Burma is being seen as one of the world's hottest

:04:05. > :04:10.investment opportunities. It is hosting the World Economic Forum

:04:10. > :04:19.this week. Out chief economic of -- correspondent is there. We can talk

:04:20. > :04:23.to her now. What is on the agenda? This is the final day of the World

:04:23. > :04:27.Economic Forum and it is known as the leaders summit day. That means

:04:27. > :04:30.the Prime Ministers in the region, from the Philippines to Vietnam and

:04:30. > :04:35.also the former British prime minister Tony Blair, who just

:04:35. > :04:39.walked by, are here to talk about the details of development. We

:04:39. > :04:45.heard a lot from executives but now it is about how you operational

:04:45. > :04:50.lies it to help this country, which is the poorest in Asia. That was

:04:50. > :04:55.the question that I posed to the former New Zealand prime minister,

:04:56. > :05:01.Helen Clark. $YELLOW We have to look to support them to invest on

:05:01. > :05:06.sectors where poor people live and work. That screams agriculture,

:05:06. > :05:11.which has been invested in the most basic ways. People need access to

:05:11. > :05:15.credit. They need roads to get the goods to market. They need

:05:15. > :05:22.electricity, they need water, they need sanitation. These are basic

:05:22. > :05:27.things. And that is really the key. It does have her -- diversified

:05:27. > :05:32.economy. We have heard a lot about big companies. They have said they

:05:32. > :05:36.are setting up big factories. But they like infrastructure. For many

:05:36. > :05:39.factories to take-off, there is a lot that government pop --

:05:39. > :05:45.government policy has to do. But her and Clarke was talking about

:05:45. > :05:49.the fact that the country is 70% agricultural. -- Helen Clark. Part

:05:49. > :05:54.of this development has to lift that sector into a more

:05:54. > :05:58.technologically efficient phase. If they were to do that, Burma is one

:05:58. > :06:04.of the few countries in the world that could actually grow based on

:06:04. > :06:07.agriculture and resources and as well as manufacturing. They need to

:06:08. > :06:16.realise that potential and that will be the key thing not only of

:06:16. > :06:26.the summit but when all of the leaders leave. That will be the

:06:26. > :06:27.

:06:27. > :06:33.challenge. Many thanks. These beautiful

:06:33. > :06:37.picture behind me is California. The lavish 200 acre retreat was

:06:37. > :06:42.once the home of the publishing tycoon. Later today, it will host

:06:42. > :06:46.the two most powerful men on earth. The Chinese President will meet

:06:46. > :06:51.President Obama for two days of talks, raising everything from

:06:51. > :07:01.cyber war to trade. Our correspondent is in Shanghai.

:07:01. > :07:04.California is being billed to see under -- unscripted democracy. A

:07:04. > :07:10.long way from the caricatures of the stiff and formal world of

:07:10. > :07:14.Chinese politics. There is a lot to talk about. For America, priorities

:07:14. > :07:20.are cyber security. North Korea and the influence that China may be

:07:21. > :07:25.able to bring there. And the important trade relationship, now

:07:25. > :07:30.worth more than $500 billion US every year. China is talking about

:07:30. > :07:34.a new great power relationship. It wants to be treated as an equal, in

:07:34. > :07:40.recognition of its new economic and political cloud. Some observers

:07:40. > :07:48.suggest America has as much to fear it as to gain from a rising China.

:07:48. > :07:53.-- clout. Despite an emergency of a consumer society, over the years

:07:53. > :07:57.there has been very little political reform and President Xi

:07:57. > :08:04.Jinping remains head of a Communist Party, seemingly intent on

:08:04. > :08:12.consolidating its grip on power. With me is a Chinese analyst from

:08:12. > :08:17.an economy intelligence unit. A slightly off the business agenda

:08:17. > :08:23.question. The issue of human rights always comes up whenever China and

:08:23. > :08:29.the US meat. But has the trading relationship between these two get

:08:29. > :08:38.put further and further down the agenda? It will always be on the

:08:38. > :08:42.US-China agenda. President Obama can't afford to not bring it up.

:08:42. > :08:49.But, on the Chinese side, there are ways in which the two countries

:08:49. > :08:54.have learned to manage that issue. There is a sense of the Chinese

:08:54. > :08:59.side that they have a way of responding to it. Not always

:08:59. > :09:04.effectively. Wife mac in previous years, talks between China and the

:09:04. > :09:09.US have been dominated by currency and manipulation. Is there a sense

:09:09. > :09:14.this year that conversation might be more focused on trade?

:09:14. > :09:18.The key issues for this year's summit will be the trade and

:09:18. > :09:22.investment relationship. The US will raise concerns about cyber

:09:22. > :09:26.security and industrial espionage on the Chinese side. For China, it

:09:26. > :09:35.will be Chinese investment in the US. In showing that Chinese

:09:35. > :09:40.companies have what they think is proper market access. -- ensuring.

:09:40. > :09:46.What else do you think will come out of this summit? Expectations

:09:46. > :09:50.are so high. We have to be careful about having too high expectations.

:09:50. > :10:00.This is supposed to be an informal meeting of two leaders. Learning to

:10:00. > :10:06.

:10:06. > :10:16.get on with each other. It is not designed to be too high profile. We

:10:16. > :10:18.