07/06/2013 World Business Report

with the South. Those are the latest headlines. Now,

with the latest financial news, On a knife-edge. Global markets

await key US employment numbers for May. There are fears the Federal

Reserve may soon begin to pull the plug on stimulus measures.

Plus, a slowdown in the desert. President Obama hosts the Chinese

President over their rocky $5 billion trading relationship.

Welcome. First, it's a bidet for global markets this Friday. -- big

day. In a few hours, we will get the official numbers from the US.

They are seeing as a vital indicator of how the US economy

recovery is going and key to whether the Federal Reserve will

start to scale back its support for the economy. That is something Ben

Bernanke he has warned he will start to ring if data improves. It

has been spooking the stock market. US employers are expected to create

some thousands of jobs in May. That would be 5,000 more than April. Way

below the 200,000 needed to make a dent in the unemployment rate. That

jobless rate is expected to remain at 7.5% in May. Still a whole

percentage point above the 6.5% that they want to see. Meanwhile,

the stock markets remain extremely volatile. Concerns about the

Federal Reserve's next move. US shares swung back. In the last few

hours, Japan's Nikkei index officially ended bare market

territory. A 20% drop in any case since two weeks ago. What is it

looking like today? It is looking bad. It is when a

main share index plunges 20% or more from its peak over eight weeks.

The Nikkei reached its height on May 23rd. That was a 5.5 year high

but has plunged since then, hurting the market and the strength of the

currency. It has appreciated to 96.5 to the US dollar. It is

hurting exporters and adding to its problems. A lot of fear amongst

investors. They are closely watching the key US jobs report. If

more Americans are getting employers, this will disappoint

market. But if it is short of expectations, this will give share

markets to move higher. The rest of Asia is also hurting. Shares have

dropped to six-month lows. They fail to capitalise on Wall Street's

gains overnight. Investors moved to the sidelines ahead of the

unemployment report, which could provide clues on whether the

Federal Reserve will start tapering its stimulus programme in the

coming weeks. All eyes will be focused on that jobs data.

They will indeed. Thank you for now. Now, after years of political

isolation, Burma is being seen as one of the world's hottest

investment opportunities. It is hosting the World Economic Forum

this week. Out chief economic of -- correspondent is there. We can talk

to her now. What is on the agenda? This is the final day of the World

Economic Forum and it is known as the leaders summit day. That means

the Prime Ministers in the region, from the Philippines to Vietnam and

also the former British prime minister Tony Blair, who just

walked by, are here to talk about the details of development. We

heard a lot from executives but now it is about how you operational

lies it to help this country, which is the poorest in Asia. That was

the question that I posed to the former New Zealand prime minister,

Helen Clark. $YELLOW We have to look to support them to invest on

sectors where poor people live and work. That screams agriculture,

which has been invested in the most basic ways. People need access to

credit. They need roads to get the goods to market. They need

electricity, they need water, they need sanitation. These are basic

things. And that is really the key. It does have her -- diversified

economy. We have heard a lot about big companies. They have said they

are setting up big factories. But they like infrastructure. For many

factories to take-off, there is a lot that government pop --

government policy has to do. But her and Clarke was talking about

the fact that the country is 70% agricultural. -- Helen Clark. Part

of this development has to lift that sector into a more

technologically efficient phase. If they were to do that, Burma is one

of the few countries in the world that could actually grow based on

agriculture and resources and as well as manufacturing. They need to

realise that potential and that will be the key thing not only of

the summit but when all of the leaders leave. That will be the

challenge. Many thanks. These beautiful

picture behind me is California. The lavish 200 acre retreat was

once the home of the publishing tycoon. Later today, it will host

the two most powerful men on earth. The Chinese President will meet

President Obama for two days of talks, raising everything from

cyber war to trade. Our correspondent is in Shanghai.

California is being billed to see under -- unscripted democracy. A

long way from the caricatures of the stiff and formal world of

Chinese politics. There is a lot to talk about. For America, priorities

are cyber security. North Korea and the influence that China may be

able to bring there. And the important trade relationship, now

worth more than $500 billion US every year. China is talking about

a new great power relationship. It wants to be treated as an equal, in

recognition of its new economic and political cloud. Some observers

suggest America has as much to fear it as to gain from a rising China.

-- clout. Despite an emergency of a consumer society, over the years

there has been very little political reform and President Xi

Jinping remains head of a Communist Party, seemingly intent on

consolidating its grip on power. With me is a Chinese analyst from

an economy intelligence unit. A slightly off the business agenda

question. The issue of human rights always comes up whenever China and

the US meat. But has the trading relationship between these two get

put further and further down the agenda? It will always be on the

US-China agenda. President Obama can't afford to not bring it up.

But, on the Chinese side, there are ways in which the two countries

have learned to manage that issue. There is a sense of the Chinese

side that they have a way of responding to it. Not always

effectively. Wife mac in previous years, talks between China and the

US have been dominated by currency and manipulation. Is there a sense

this year that conversation might be more focused on trade?

The key issues for this year's summit will be the trade and

investment relationship. The US will raise concerns about cyber

security and industrial espionage on the Chinese side. For China, it

will be Chinese investment in the US. In showing that Chinese

companies have what they think is proper market access. -- ensuring.

What else do you think will come out of this summit? Expectations

are so high. We have to be careful about having too high expectations.

This is supposed to be an informal meeting of two leaders. Learning to

get on with each other. It is not designed to be too high profile. We