Browse content similar to 08/05/2014. Check below for episodes and series from the same categories and more!
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President Assad. Those are the latest headlines from | :00:00. | :00:00. | |
BBC World News. Now for the latest financial news | :00:00. | :00:17. | |
with World Business Report. The rich and powerful of the business world | :00:18. | :00:20. | |
gather in Nigeria but will terror fears derail Africa's Davos? | :00:21. | :00:25. | |
Plus, rocketing real`estate ` the Bank of England meets amid growing | :00:26. | :00:29. | |
warnings of a housing bubble. Can it do anything about it? | :00:30. | :00:37. | |
Welcome to World Business Report. I'm Sally Bundock. | :00:38. | :00:43. | |
Also in the programme: A surprise rise in Chinese trade figures boosts | :00:44. | :00:49. | |
Asian markets. We begin in the Nigerian capital Abuja, where | :00:50. | :00:52. | |
business leaders from around the world are gathered for the World | :00:53. | :00:59. | |
Economic Forum on Africa. In a few hours' time, they will be hearing | :01:00. | :01:02. | |
the keynote speech from China's Premier Li Keqiang. Threatening to | :01:03. | :01:09. | |
overshadow the event, of course, are the growing concerns over the | :01:10. | :01:11. | |
security and stability of the country after deadly bombings in the | :01:12. | :01:14. | |
capital and the kidnapping of 200 schoolgirls by Islamist militants, | :01:15. | :01:17. | |
as well as these latest attacks you have been hearing about in the last | :01:18. | :01:19. | |
few hours. However, Nigeria wants the African | :01:20. | :01:22. | |
Davos to be a showcase for its huge business potential. | :01:23. | :01:29. | |
Nigeria is now Africa's biggest economy, with GDP last year | :01:30. | :01:35. | |
estimated at $500 billion. That has tripled in just over a decade. In | :01:36. | :01:40. | |
fact, it's predicted to have the world's fastest`growing economy by | :01:41. | :01:45. | |
2050. Our Africa business correspondent Lerato Mbele is in | :01:46. | :01:58. | |
Abuja talking to business leaders. This year 's World Economic Forum is | :01:59. | :02:01. | |
being hosted by Afrika 's number one economy, Nigeria. A large contingent | :02:02. | :02:06. | |
of business leaders and as many as 30 heads of state are in Nigeria to | :02:07. | :02:09. | |
lend their support and also scout for investment opportunities that | :02:10. | :02:15. | |
are said to exist here. But it is the militancy of Boko Haram, the | :02:16. | :02:20. | |
recent bombings and the kidnapping of 200 schoolgirls in northern | :02:21. | :02:25. | |
Nigeria that has cast a dark shadow over this World Economic Forum. We | :02:26. | :02:30. | |
ask why business leaders believe Nigeria still holds promise in a | :02:31. | :02:42. | |
situation of insecurity. There is a lot of negativity about Nigeria but | :02:43. | :02:45. | |
if you look at the actual facts, there has been a lot of raw growth | :02:46. | :02:47. | |
over the last 15 years. It is the largest country from GDP | :02:48. | :02:54. | |
perspective. It is the most populous country. In Africa. Many challenges, | :02:55. | :03:02. | |
let us be clear, but if you want to make money as an investor, you have | :03:03. | :03:05. | |
to be in Nigeria. There is no question about it. We believe that | :03:06. | :03:13. | |
there will be 160 million consumers in the middle`class by 2030. The | :03:14. | :03:20. | |
consumer facing sectors are large. Manufacturing is starting to get | :03:21. | :03:24. | |
bigger. We will see manufacturing take`off. Across a variety of | :03:25. | :03:29. | |
sectors, we believe there is huge opportunity. We also spoke with the | :03:30. | :03:35. | |
global vice president of General Electric about the opportunities | :03:36. | :03:38. | |
that exist for international companies in Nigeria. Nigeria can | :03:39. | :03:45. | |
play an important role in setting an example for our countries can | :03:46. | :03:50. | |
facilitate the process by which public and private capital come | :03:51. | :03:55. | |
together to solve problems associated with lack of electricity, | :03:56. | :04:01. | |
water that is not clean, unavailability of basic forms of | :04:02. | :04:05. | |
healthcare. A country like Nigeria should play a leadership role. While | :04:06. | :04:11. | |
Nigeria is said to offer huge returns, fresh opportunities in the | :04:12. | :04:14. | |
oil and gas, energy, real estate and banking sector, nobody can deny how | :04:15. | :04:20. | |
tense the situation is in Abuja right now, with the activities of | :04:21. | :04:25. | |
the Koran. But for now, investors are willing to overlook some of | :04:26. | :04:31. | |
those issues, focusing on the returns, the growth, the large | :04:32. | :04:34. | |
consumer market and the prospects that Nigeria has to offer. `` nobody | :04:35. | :04:40. | |
can deny how tense the situation is in Abuja right now with the | :04:41. | :04:46. | |
activities of Boko Haram. To the Bank of England now, where | :04:47. | :04:48. | |
policy`makers are meeting amid increasing nerves over rising UK | :04:49. | :04:51. | |
house prices, particularly in the capital. | :04:52. | :04:53. | |
Last week the bank's deputy governor warned the surging property market | :04:54. | :04:56. | |
could pose the biggest danger to the country's financial stability. | :04:57. | :04:58. | |
Earlier this week a report by the OECD warned the bank to act to | :04:59. | :05:01. | |
contain the housing bubble. House prices are currently rising at more | :05:02. | :05:04. | |
than 10% a year and some economists fear some buyers are being forced to | :05:05. | :05:07. | |
take on unsustainable levels of debt. So what is the Bank of England | :05:08. | :05:13. | |
likely to do? Rob Wood worked there for 12 years. He is now with | :05:14. | :05:23. | |
Berenberg Bank here in London. Interest rates today. I can only | :05:24. | :05:28. | |
assume there will be no change today. No change today. They will go | :05:29. | :05:34. | |
up later this year or early next year. The economy is growing quickly | :05:35. | :05:39. | |
and interest rates don't need to be at these levels for much longer. | :05:40. | :05:44. | |
Some would argue that interest rates going up could be something that | :05:45. | :05:47. | |
could tame the housing, but it's a very blunt tool, isn't it? Yes, it | :05:48. | :05:53. | |
is, but it also gets into the cracks. The Bank of England has | :05:54. | :05:57. | |
other tools that it could use to deal with the housing market. It | :05:58. | :06:01. | |
could mandate maximum loan to value ratios. It could mandate that | :06:02. | :06:08. | |
affordability should be tested against a difficult benchmark for | :06:09. | :06:11. | |
interest rates to make it harder for them to get a mortgage. But those | :06:12. | :06:15. | |
things are quite specific and there are ways around them. Rising | :06:16. | :06:21. | |
interest rates would be one way of getting into all the cracks and make | :06:22. | :06:26. | |
sure in that you really do slow down house price inflation. Do you agree | :06:27. | :06:30. | |
that there is a bubble waiting to burst and that it could be very | :06:31. | :06:36. | |
damaging? I don't think we are in a bubble quite yet. London is a | :06:37. | :06:40. | |
separate situation. But the main problem is that we don't build | :06:41. | :06:43. | |
enough houses. That is driving up prices. A will always be expensive | :06:44. | :06:48. | |
as long as we don't build enough. If we let this run for much longer, the | :06:49. | :06:54. | |
chances of a bubble developing will increase. And the Bank of England | :06:55. | :06:57. | |
has to act to prevent this from happening, which is why I think they | :06:58. | :07:00. | |
have to take action on this very soon. Will Mark Carney take action? | :07:01. | :07:09. | |
He started his time with the Bank of England being quite dismissive of | :07:10. | :07:14. | |
housing... It has become more obvious that house price inflation | :07:15. | :07:18. | |
is spreading out across the country and that it's not just the London | :07:19. | :07:22. | |
only phenomenon. It is now quite likely that they will take action | :07:23. | :07:26. | |
over the next few months or so, increasingly tightening the noose | :07:27. | :07:30. | |
around the housing to slow down price increases. Thank you. And we | :07:31. | :07:36. | |
will be keeping you up`to`date as and when we get the news on the | :07:37. | :07:42. | |
rates decision today in the UK and anything else they say. Asian | :07:43. | :07:44. | |
markets are getting a boost from some positive news from China. Let's | :07:45. | :07:47. | |
speak to Rico Hizon in our Singapore bureau. Good news about China at | :07:48. | :07:58. | |
last! That is right. Many investors were waiting for the numbers from | :07:59. | :08:02. | |
the mainland and when you take a look at the data, export recovery | :08:03. | :08:08. | |
was driven from demands from developing countries. The US and EU | :08:09. | :08:15. | |
countries have been buying Chinese made goods with outgoing shipments | :08:16. | :08:18. | |
rising by almost 1%, recovering from a decline in March. Imports gained | :08:19. | :08:24. | |
0.8%, leaving the mainland with a trade surplus of $18.5 billion. This | :08:25. | :08:29. | |
momentum going forward? Analysts say yes. But they do say not to expect a | :08:30. | :08:37. | |
steep recovery, rather a slow and mild comeback. When China sneezes | :08:38. | :08:42. | |
the whole world catches a cold. At least for today, nobody is sneezing. | :08:43. | :08:46. | |
The reaction has been switched from investors. The decay widened its | :08:47. | :08:52. | |
game and the Australian dollar hit a fresh two week high. `` the Nikkei | :08:53. | :09:06. | |
widened its gains. Overall, good news for the markets. We are all | :09:07. | :09:14. | |
struggling with hayfever in the UK, so no sneezing from China is very | :09:15. | :09:23. | |
good news or us. `` for us. In other news: Barclays is expected to | :09:24. | :09:26. | |
announce 15,000 job losses as part of a strategy review. Up to 70% of | :09:27. | :09:29. | |
the cuts could be in Britain. According to media reports, around | :09:30. | :09:32. | |
25% of investment banking staff could lose their jobs as the bank | :09:33. | :09:35. | |
tries to retreat from more risky areas. | :09:36. | :09:37. | |
The European Central Bank is expected to keep borrowing costs at | :09:38. | :09:40. | |
their record low of 0.25%, despite calls for additional stimulus for | :09:41. | :09:50. | |
the region's economy. Let's take a look at those markets. Janet Yellen | :09:51. | :09:59. | |
was talking about... And of course, the trade news from China. Most of | :10:00. | :10:04. | |
the markets headed higher, apart from the NASDAQ index, which was | :10:05. | :10:10. | |
down by 0.3%. Thank you for joining us. We will be back for a look at | :10:11. | :10:21. | |
the papers in a few minutes. Police in London have begun what is | :10:22. | :10:25. | |
believed to be the world's largest trial of body`worn cameras, as they | :10:26. | :10:29. | |
try to restore public trust. The pilot will assess whether the | :10:30. | :10:32. | |
cameras are effective in cutting crime and reducing complaints | :10:33. | :10:34. | |
against officers. Our home affairs correspondent Matt Prodger | :10:35. | :10:36. |