21/04/2014 World Business Report


21/04/2014

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for minor injuries. Those are the latest headlines from BBC World

:00:00.:00:00.

News. Now for the latest financial news with Sally.

:00:00.:00:17.

Eyeing Alibaba ` every big bank wants a piece of this latest market

:00:18.:00:21.

floatation that's set to be the biggest technology listing since

:00:22.:00:25.

Facebook. And in the driving seat: China's

:00:26.:00:28.

young urbanites are the new market force for global carmakers.

:00:29.:00:36.

Welcome to World Business Report. I'm Sally Bundock. Also in the

:00:37.:00:43.

programme a spending spree in Japan in March has caused a new economic

:00:44.:00:50.

headache for Shinzo Abe. We'll have the details.

:00:51.:00:53.

The huge Chinese Internet company Alibaba is preparing to file a

:00:54.:00:55.

prospectus for its highly anticipated stock market debut in

:00:56.:01:01.

the USA. When it happens, it'll be the largest American IPO since

:01:02.:01:03.

Facebook back in 2012 and could attract nearly as much attention.

:01:04.:01:11.

The company accounts for 80% of all Chinese online consumer shopping,

:01:12.:01:14.

and last year it accounted for more transactions than Amazon and eBay

:01:15.:01:15.

combined. Only last week another Chinese

:01:16.:01:24.

internet firm, Weibo, launched on the US market ` so why are the

:01:25.:01:28.

giants of Chinese tech so keen to come to market in the West now?

:01:29.:01:41.

Samira Hussain is in New York. It was just last week when China's

:01:42.:01:44.

equivalent to Twitter, Weibo made its debut here in New York. In that

:01:45.:01:49.

first day of trading, the stock shot up 20%. The success of Weibo has

:01:50.:01:56.

investors even more excited about Alibaba. Chinese e`commerce giant

:01:57.:02:02.

has more sales and net income of both Amazon and eBay combined. It

:02:03.:02:08.

China's largest Internet company and operate in the world 's largest

:02:09.:02:13.

Internet market. Alibaba a council 80% of all Chinese online consumer

:02:14.:02:19.

shopping. But why a Chinese companies choosing to list in New

:02:20.:02:24.

York instead of Hong Kong? In the case of Alibaba, most of it has to

:02:25.:02:29.

do with ownership structure. American rules allow for executives

:02:30.:02:32.

to retain much more control of their company. Alibaba's successors have

:02:33.:02:39.

even lifted some US companies. Yahoo! Has benefited a stake in

:02:40.:02:46.

Alibaba and it's really been boosting Yahoo! 's share which have

:02:47.:02:51.

run up by more than 40% this year. It is all the more reason why many

:02:52.:02:55.

more investors will be watching how Alibaba does in the coming months.

:02:56.:03:00.

Beijing's annual auto show has opened with foreign brands unveiling

:03:01.:03:03.

dozens of new models and concept cars, all eager to get a bite of the

:03:04.:03:09.

rapidly expanding Chinese market. Last year, sales in China rose to

:03:10.:03:14.

just under 18 million vehicles. Now as Melanie Wray reports, car makers

:03:15.:03:17.

from Europe, America, Japan and Korea with more advanced

:03:18.:03:19.

technologies than the domestic market have moved to the fast lane

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to appeal to local tastes. Global carmakers are gearing up to

:03:22.:03:35.

meet the demands of China's young urban professionals. They want a

:03:36.:03:39.

vehicle that will let them stand out but not a top end model. That's why

:03:40.:03:44.

it China's annual auto shows in Beijing and Shanghai have grown into

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the industry 's most important commercial events. Notably strong

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Chinese sales helped to support the global industry while the United

:03:55.:03:59.

States, Europe slumped following the 2008 financial crisis. This year,

:04:00.:04:07.

Ford unveiled a new sedan. Designed in China for global sale. This

:04:08.:04:13.

compact model was designed with features to appeal to local tastes.

:04:14.:04:16.

They include a bigger backseat for children and grandparents, brighter

:04:17.:04:22.

colours and cupholders to fit iced tea bottles. It goes on sale in

:04:23.:04:26.

China this year, expanding later to other markets. Wheeze the best ideas

:04:27.:04:33.

from around the world. It is amazing how what people want and value is

:04:34.:04:39.

similar around the world. They want to be able to handle their

:04:40.:04:45.

families. I think this is going to be a preferred vehicle around the

:04:46.:04:49.

world. It was really led by Chinese taste. But these foreign brands

:04:50.:04:55.

piling into China are adding to the intense competition. Domestic brands

:04:56.:04:59.

have been slowly losing market share. TRANSLATION: About five years

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ago, the main foreign carmakers in China start to roll out products

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that range between 9000 and 60,000 US dollars. A cheaper price poses

:05:13.:05:21.

competition for Chinese domestic carmakers because foreign brands

:05:22.:05:24.

have a better reputation. It estimated that China is car demand

:05:25.:05:30.

is likely to reach 2.7 million cars a year by 2020. Which would make it

:05:31.:05:35.

the world 's biggest premium car market, ahead of the US. If this

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show is anything to go by, it looks like China will pay a big role in

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designing future vehicles. Not just for them but also the world.

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We will be discussing that story further we look at today's

:05:52.:05:54.

newspapers. But now, let's talk about Japan. The task of steering

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the Japanese economy back to a health is getting tougher for Prime

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Minister Shinzo Abe. The latest trade figures show the growth in

:06:00.:06:02.

shipments of goods overseas is marginal and yet there was a big

:06:03.:06:06.

spike in imports in the month of March. But was this down to a

:06:07.:06:12.

spending spree ahead of the rise in sales tax there in April. Sharanjit

:06:13.:06:16.

Leyl is in our Asia business hub in Singapore. Nice to see you. Tell us

:06:17.:06:23.

more about what is going on in Japan. As he said, a slight rise in

:06:24.:06:31.

exports but huge rises in imports making the deficit basically

:06:32.:06:36.

quadrupling from last year. Partially to do with that sales

:06:37.:06:40.

hike. But more to do with the ongoing problems around increased

:06:41.:06:46.

energy imports. The deficit quadrupling in March and export

:06:47.:06:49.

growth slowing along with this rise in imports, the week Japanese

:06:50.:06:56.

currency. Hugely Djibouti do that as well, pushing up the cost of those

:06:57.:06:59.

imports. The deficit at Shelly Rudman to $14 billion. Japan's

:07:00.:07:03.

energy imports have been rising after it shut all of its nuclear

:07:04.:07:07.

reactors in the aftermath of the earthquake and tsunami in 2011.

:07:08.:07:12.

According to the latest trade data, imports have liquefied and are

:07:13.:07:20.

rising. Japan is having to pay a lot more for those imports after

:07:21.:07:25.

aggressive policy move is aimed at spurring economic growth. Including

:07:26.:07:30.

a huge group to the country 's money supply. The Japanese currency has

:07:31.:07:38.

fell `` fallen nearly 10% against the US currency. That surge in

:07:39.:07:46.

consumer spending is also to blame. Some Alice are saying the tax

:07:47.:07:49.

increase could have wanted companies to push their shipments to the local

:07:50.:07:53.

market to take advantage of buying spree before that tax rise took

:07:54.:07:59.

place. There was also other data as well. Some of them showing

:08:00.:08:03.

sluggishness in the corporate sector, demand for loans of Japanese

:08:04.:08:08.

countries fell. Consumer confidence fell in March as well. Consumer

:08:09.:08:16.

confidence actually much lower as well. Thank you very much. Let

:08:17.:08:21.

squeeze in some other business stories.

:08:22.:08:25.

A big foreign take over of British company could happen soon. The

:08:26.:08:28.

financial press in the UK are reporting the American

:08:29.:08:29.

pharmaceutical giant Pfizer has approached British rival AstraZeneca

:08:30.:08:32.

with a $100 billion dollar takeover bid. The paper has cited senior

:08:33.:08:34.

investment bankers and industry sources saying that informal

:08:35.:08:37.

conversations about a deal had taken place between the two but that no

:08:38.:08:40.

talks were currently under way after AstraZeneca resisted the approach.

:08:41.:08:45.

Later this week US President Barack Obama heads to Asia, where trade

:08:46.:08:50.

will feature prominently on his agenda. The United States is

:08:51.:08:54.

negotiating a deal called the trans pacific partnership which would cut

:08:55.:08:57.

barriers to doing business with a range of countries, including

:08:58.:09:02.

Singapore and Japan. Breaking a US`Japan deadlock over access to

:09:03.:09:05.

Japan's farm and auto markets is seen as key to finalizing the TPP.

:09:06.:09:17.

Let's have a look at the markets. Today in Asia is a quiet day.

:09:18.:09:22.

Globally, many markets are closed for a public holiday. In Europe and

:09:23.:09:25.

western economies it is the long Easter break going on at the moment.

:09:26.:09:32.

Japan open, Taiwan, South Korea. Hong Kong is not treating all that

:09:33.:09:36.

Shanghai is trading. In Japan, that trade deficit story which our

:09:37.:09:41.

correspondent in Singapore just mentioned. That has weakened yen to

:09:42.:09:47.

a degree. That is all for me for now. I was used in when we review

:09:48.:09:50.

the papers. New figures show that people are

:09:51.:10:05.

five times more likely to get the most dangerous form of skin cancer

:10:06.:10:10.

than they were in the 1970s. The dramatic rise is partly down to the

:10:11.:10:14.

increasing popularity of package holidays and the wider availability

:10:15.:10:16.

of sun

:10:17.:10:17.

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