15/01/2014 World Business Report


15/01/2014

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attack caused thousands of dollars worth of damage. Those are the

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latest headlines from BBC World News. Going up - The World Bank sees

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stronger growth as rich economies expand.

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China's biggest smartphone maker Huawei saw strong sales in 2013 and

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operating profits up more than 40%. Welcome to World Business Report.

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I'm Sally Bundock - also in the programme inflation in India is set

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to fall slightly bringing relief to consumers - but will the trend

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continue. We find out. The World Bank says the global economy is at a

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turning point, as growth appears to be strengthening in both rich and

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developing countries. But in its annual assessment of the global

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economy the Bank also warns of risks stemming from changing policies in

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the United States. It says: Growth in developing countries will expand

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from four point 8% last year to five point 3% this year But with some

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countries doing considerably better - Angola 8%, China seven point 7%,

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and India six point 2%. For the worlds richest nations it predicts

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growth will accelerate from one point 3% last year to two point 2%

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this year. And it says although the main risks that have preoccupied the

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global economy over the past five years have subsided, the underlying

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challenges remain. Our Economics Correspondent Andrew Walker talked

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to the World Bank economist, Andrew Burns, and asked if he's confident

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we are over the worst. I am not ready to say it is over. We

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are into the healing stage of that process. It may not go perfectly

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smoothly, the worst has passed us and we are starting to get into that

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process. If we look at the Euro, growth is likely to be a little bit

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hesitant going forward in the next year. A little bit like it was in

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the US two years ago where we have one might be good news, another

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month of not so good news. Never really certain that we are there.

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Our sense is that growth is coming back. There must be some risks to

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this favourable outlook. There certainly are risks. With the

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improvement in group and the normalisation of output there is

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going to be a normalisation in policy as well. That carries risks

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for developing countries. The US Federal reserve particular

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withdrawing and that enormous amount of cash being pumped into the

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economy. Our expectation is that going forward, this process should

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go along the Tivoli smoothly without a significant negative impact for

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developing countries. It seems flatly counter intuitive that you

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might get a lot of turbulence but none when it actually does start

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taking place? Sometimes that is the way that financial markets work.

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There is a forward-looking aspect of the eventual changes and a

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compression of time. That is one perspective on what has happened so

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far. The other is that and it could be additional surprises. Financial

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markets could react in a dis- orderly fashion going forward.

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Boeing says it will join a probe with Japan airlines to find out why

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one of the airlines had to be grounded after a 787 Dreamliner when

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smoke was coming from one of its batteries. All 787 were grounded a

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year ago for three months after repeated problems with batteries

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overheating. Singapore's central bank is denying suggestions that the

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affluent city-state faces a credit bubble linked to high property

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prices. The Monetary Authority of Singapore says the property market

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is stabilising, household balance sheets are strong and the financial

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system is robust. The Japanese Prime Minister, Shinzo Abe has pledged

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more than 3-hundred million dollars towards security in Africa, as Japan

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seeks to increase its influence on the continent. Mr Abe - who is

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ending his tour of the continent in Ethiopia - says Japan will also

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offer two billion dollars in business loans to the private sector

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and will focus its investment on women and young people.

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India is due to release its latest inflation figures shortly. Forecasts

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say the nation could see prices edge down from a 14-month high in

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November to about 7% in December. That's good news for consumers who

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have been battling persistently high inflation for about four years. But

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is it a long-term change for the better? Yogita Limaye has more from

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Mumbai. I have just bought some tomatoes and

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the price that I have paid is about the fourth of what it cost in

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November. The prices of most vegetables here were soaring. A lot

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of these have become cheaper in recent months and the reason, the

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winter harvest has been good. That is the reason the supply of

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vegetables have gone up. It has reflected in retail inflation

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figures. This is great news for consumers who have been battling

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very high food prices. Some people, particularly those from low income

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families said that they had almost stopped buying vegetables and

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pressure is certainly eased. The number is also expected to have gone

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down and should be about 7% down from a high of 7.5%. Many believe

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that even at 7% it is still quite high. India's Central Bank has

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increased interest rates twice in September to try and get it to

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moderate. They had held rates unchanged because they believed that

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inflation would go on a downward trend. However, the central bank is

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unlikely to announce anything unless we see it go substantially up.

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Huawei the world's No.2 telecom equipment maker says it expects to

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post a 40% rise in annual operating profit. Huawei has had a turbulent

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year in which it was shut out of multi-billion dollar network

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opportunities in the United States and Australia and drew the scrutiny

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of British authorities over cyber security issues. Lets get more on

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this - we're joined by Puneet Pal Singh is in Singapore full is a tell

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us more about how Huawei is going it is busily a strong player in the

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market? These are good numbers by any measure especially given the

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fact that we are starting on key markets such as the US. Those

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setbacks were offset by continued growth in emerging markets including

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its domestic market, China. China has been willing to improve the

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teller communications network across the country. As part of their push

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it is looking to deploy faster fourth-generation mobile network

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equipment which has created new business opportunities for companies

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like Huawei. Huawei traditionally concentrated on making telecom

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network equipment has also benefited from diversifying its business into

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fast-growing sectors such as smartphone manufacturing. It makes

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low-cost devices which has been a winning strategy. A key reason

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behind that is the fact that unlike other markets, mobile phone service

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riders in emerging economies like China and India do not subsidised

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handsets for subscribers. That means consumers have to pay up from their

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own pocket to buy mobile phones. That makes low-cost devices much

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more affordable. That has helped Huawei become one of the biggest

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smartphone companies in the world. Despite issues in the US, things are

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looking good for Huawei. Thanks very much. Let's have a look at the

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market. It has been quite a week. We have seen 3% losses in Japan and it

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is completely different today. A lot has to do with US retail sales

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numbers which came out well after these markets closed in Asia. They

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were much stronger. The US is out there and spending. That is a really

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good news for exporters, that make goods in Asia that are shipped over

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to the world's biggest economy. A 2% jump for return. All the markets

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across Asia doing well today. As you can see in the US we had much better

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session as well because the day before we saw 1% losses and of

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course if the US does well it often goes well for Asia morning after.

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Doctors aren't being given the right kind of training to diagnose young

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people who have mental health problems according to the Royal

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College of GPs. It says there has been a big rise in the number of

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sixteen to twenty five year olds suffering mental health problems

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since the recession and estimates tens of thousands are suffering from

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depression, stress

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