:00:00. > :00:10.are the latest headlines from BBC World News.
:00:10. > :00:19.
:00:19. > :00:23.Now for the latest financial news Roam if you want to and at a much
:00:23. > :00:28.cheaper cost in Europe. Charges have been cut by a third today
:00:28. > :00:30.thanks to EU regulators. The strong ?I ? The strong
:00:30. > :00:40.Australia's manufacturers and tourism industries have had to
:00:40. > :00:42.
:00:42. > :00:52.Welcome to World Business Report. I'm Sally Bundock. Also in the
:00:52. > :00:58.work. Mark Carney moves into the Bank of England. We assess what is
:00:58. > :01:01.in his in-tray. From today it is cheaper to use mobile phones across
:01:01. > :01:05.the European Union. Checking email or surfing the web on a mobile
:01:05. > :01:09.phone while travelling in the EU will now be a third cheaper under
:01:09. > :01:12.cuts to roaming charges enforced by the EU's regulator just in time for
:01:12. > :01:16.the summer holiday season. For the past six years, the EU has been
:01:16. > :01:21.forcing down prices by placing a cap on the charges providers can
:01:21. > :01:25.impose and reducing that limit each year. It says it has achieved
:01:25. > :01:35.retail price reductions of over 80% industry and benefiting the
:01:35. > :01:38.
:01:38. > :01:42.companies involved. So how much further can it go? I am joined by
:01:42. > :01:50.Luca Schiavoni, an analyst in Ovum's regulatory advisory service.
:01:50. > :01:54.Tell us more about what has changed. Today, we are having a reduction by
:01:54. > :01:59.around 36% in the data roaming prices, the price we pay when we
:01:59. > :02:04.browse the Internet from abroad. There are also reductions in what
:02:04. > :02:12.we pay for making and receiving phone calls and sending texts from
:02:12. > :02:18.other countries. This has been going on since 2007 and the
:02:18. > :02:23.regulation was reviewed last year. There will be further price
:02:23. > :02:29.reductions in 2014, July. This only covers the European Union countries.
:02:29. > :02:33.If you travel elsewhere, you may actually face higher prices because
:02:33. > :02:37.operators are free to set the price now for roaming in other
:02:38. > :02:43.destinations. We see that in some situations this has happened.
:02:43. > :02:46.is good news for consumers. Often we forget to turn our roaming off
:02:46. > :02:50.when we go to Europe and we then get stung with a huge bill. The
:02:50. > :02:57.regulators also argue it's good for the industry. What do companies
:02:57. > :03:03.say? Companies are being quite vocal against roaming regulations.
:03:03. > :03:10.In 2010, they lost an appeal before the European Court of Justice. They
:03:10. > :03:15.have also been recently very vocal against talks to completely remove
:03:15. > :03:20.roaming charges. Of course the fact that markets have been growing, the
:03:20. > :03:25.demand for telecoms services have gone up, particularly data traffic,
:03:25. > :03:31.helps them have a wider market. Also, it is very competitive.
:03:31. > :03:37.Revenue margins are going down. We expect operators to have money to
:03:37. > :03:42.invest, to upgrade networks and provide new services and obviously
:03:42. > :03:47.they need profits to do so. From today, the charges for roaming go
:03:47. > :03:51.down significantly and also the charges for making a call, sending
:03:51. > :03:57.a text. Is it still advisable to switch your running off when you go
:03:57. > :04:03.overseas? Many people are still finding data roaming prices quite
:04:03. > :04:09.costly. Generally, they either turn their data Connection off when
:04:09. > :04:15.abroad or by a SIM card on the spot to benefit from a data plan from a
:04:15. > :04:18.local operator. So, until now, people have thought this is still
:04:18. > :04:22.too expensive. There will be pressure on the market regardless
:04:22. > :04:26.of regulation to bring prices down, so operators will have to do
:04:26. > :04:34.something to make data roaming more attractive. Thank you for your time.
:04:34. > :04:37.Very interesting. Of course we will keep you up-to-date two new changes.
:04:37. > :04:40.There's been a big jump in confidence among Japan's large
:04:40. > :04:44.manufacturers as they hope the policies of Shinzo Abe will boost
:04:44. > :04:47.their fortunes. We can go go live to our Asia business hub in
:04:47. > :04:53.Singapore and speak to Rico Hizon. Tell us more.
:04:53. > :05:02.This is the first time that they have turned positive in nearly two
:05:02. > :05:06.tears. It is based on this survey called the Tankan. Sentiment rose
:05:06. > :05:14.from -8 in the previous quarter. This is the first positive reading
:05:14. > :05:18.since September out in 2011 and shows the government's economic
:05:18. > :05:23.policy, aimed at ending nearly two decades of inflation and falling
:05:23. > :05:27.prices, is boosting the morale of business people. The survey also
:05:27. > :05:31.showed that large manufacturers plan to raise their spending by
:05:31. > :05:39.nearly 6% compared to a forecast of just 3%.
:05:39. > :05:42.The news was not so good out of China, though?
:05:42. > :05:47.Absolutely. This is reinforcing fears about slowing growth in the
:05:47. > :05:55.world's second biggest economy. The government's official purchasing
:05:55. > :05:59.index fell from 50.8. A reading above 50 shows an expanding in
:05:59. > :06:05.activity while a reading below indicates contraction. But it was a
:06:05. > :06:08.different story for the HSBC index, which revealed a more dire economic
:06:08. > :06:14.environment. They shrunk for a second straight month and bottomed
:06:14. > :06:21.to the lowest level in nine months. New orders fell, despite price cuts.
:06:21. > :06:29.The number is a contraction at 48.2. That is down from a Macy reading of
:06:29. > :06:34.49.2. We are therefore seen a weaker Chinese economy. -- May.
:06:34. > :06:39.For Mark Carney, the former head of the Bank of Canada and the first
:06:39. > :06:43.non Brit to run the Bank of England, moves into its headquarters in the
:06:43. > :06:46.city of London this morning. He faces a tough challenge. Britain's
:06:46. > :06:49.politicians are hoping he can inject confidence and try new ideas
:06:49. > :06:53.to revive the flagging economy. Expectations are high but once the
:06:53. > :06:58.hype has died down will he deliver the results and what monetary tools
:06:58. > :07:01.will he use? We will discuss this further when we look through this
:07:01. > :07:07.mornings papers in five minutes. Crowds in the Croatian capital,
:07:07. > :07:11.Zagreb, have been celebrating the country joining the European Union.
:07:11. > :07:14.Just a few hours ago, Croatia officially became the EU's 28th
:07:14. > :07:23.member. Overnight customs posts were removed along the country's
:07:23. > :07:27.border with other EU nations. The loss of hundreds of car-making
:07:27. > :07:32.jobs in Australia has been blamed of the effects of a strong domestic
:07:32. > :07:35.-- domestic currency. Automotive firm Holden sacked 400 workers in
:07:35. > :07:39.April, while Ford Australia says it will close its factories in October
:07:39. > :07:41.2016, with the loss of hundreds of jobs. Much of the country's
:07:41. > :07:46.manufacturing industry has also struggled to cope with a high
:07:47. > :07:50.currency. In the first of a series of reports from around Asia taking
:07:50. > :07:56.a look at the recent squeeze on the currency markets, Phil Mercer
:07:57. > :08:03.reports from Sydney on how Under pressure from competition
:08:03. > :08:06.overseas, Australia's manufacturers have had to innovate to stay viable.
:08:06. > :08:10.The sector has been baffled by the strength of the Australian dollar
:08:10. > :08:19.in recent years. It has made imports cheaper and has sent the
:08:19. > :08:25.price of many exports soaring. A factory in Sydney sees cheap metal
:08:25. > :08:31.cut by laser to reduce costs. The finished product has a range of
:08:31. > :08:34.uses, from submarines to barbecues. Competition from China and Taiwan
:08:34. > :08:38.has forced Lifestyle Barbecues, a family-run firm, to shift its focus
:08:38. > :08:41.away from the low-cost end of the market to premium sales. There are
:08:41. > :08:51.a lot of products available to supply customers who want barbecues
:08:51. > :08:56.
:08:57. > :09:00.at low prices. Because of the high Australian dollar, you can go to a
:09:00. > :09:07.store and purchase a barbecue for up to $800. That will be perfectly
:09:07. > :09:10.adequate. But we sell the equivalent form for up to $3,000.
:09:10. > :09:14.Manufacturers say the muscular Australian dollar, which has spent
:09:14. > :09:17.much of the past three years valued above its American cousin, has put
:09:17. > :09:21.them at a distinct disadvantage. Michael is an analyst in Sydney and
:09:21. > :09:31.he agrees. It has changed the landscape of the Australian
:09:31. > :09:32.
:09:32. > :09:38.industrial outlook. Manufacturing as a sector has been hit hard. That
:09:38. > :09:45.is where Australia is hardly competitive at the best of times.
:09:45. > :09:48.The dollar has put Australia in an uncompetitive position. The weight
:09:48. > :09:52.of the strong currency has also caused a slump in the tourism
:09:52. > :09:55.industry but there are signs that the pressure is beginning to ease.
:09:55. > :09:58.In recent weeks, the Aussie dollar has weakened against the major
:09:58. > :10:05.global currencies. That could be enough to lure back more stay-away
:10:05. > :10:08.foreign travellers. There are many different pressures on the
:10:08. > :10:11.Australian dollar, from the strength of the Chinese and US
:10:11. > :10:14.economies to interest rates and the softening of the mining boom.
:10:14. > :10:17.Predicting where the currency goes next is a tricky business. One