:00:00. > :00:00.Tuesday. Those are the latest headlines from
:00:00. > :00:00.BBC World News. Now for the latest financial news in
:00:00. > :00:26.World Business Report. The trade deal that sparked a
:00:27. > :00:31.revolution. Ukraine to sign the EU pact it hopes will transform its
:00:32. > :00:34.struggling economy. Plus the next generation of billionaires ` we meet
:00:35. > :00:46.the young Indians on the road to riches.
:00:47. > :00:48.Welcome to World Business Report. It has a fascinating snapshot of
:00:49. > :00:57.everything in the world of business and money. In a minute, Japan sees
:00:58. > :01:00.the highest inflation for 32 years, so is Abenomics finally working? But
:01:01. > :01:04.first, we start in Ukraine ` which is due to sign a political and trade
:01:05. > :01:06.accord with the European Union later this Friday. It represents a
:01:07. > :01:10.historic shift for the country away from Russia and towards the West.
:01:11. > :01:12.It's also a victory for pro`European Ukranians who ousted Russia`backed
:01:13. > :01:24.president Viktor Yanukovych earlier this year when he abandoned the deal
:01:25. > :01:27.` sparking the current crisis. The Association Agreement, as it's
:01:28. > :01:30.known, will open up European and Ukrainian markets to each other over
:01:31. > :01:32.the next decade, and see Ukraine adopt EU standards on everything
:01:33. > :01:35.from food additives to copyright protection.The EU says it will boost
:01:36. > :01:38.exports to Europe by a billion euros or 1.35 billion dollars a year, and
:01:39. > :01:45.save Ukrainian firms 685 million dollars a year in customs
:01:46. > :01:59.duties. But Russia has threatened to punish Ukraine economically if it
:02:00. > :02:02.signs. Ex`president Yanukovych argued it would cost 500 billion
:02:03. > :02:05.dollars in lost trade with Russia. And, cost another billion to
:02:06. > :02:14.implement EU standards. Either way, Ukraine's economy desperately needs
:02:15. > :02:17.a boost. It has been tipped deep into recession by the political
:02:18. > :02:24.crisis, the IMF predicts GDP will slump five per cent this year.
:02:25. > :02:33.Ukraine's currency has also been battered. Yesterday it was trading
:02:34. > :02:36.at 11.88 to the US Dollar. It's fallen around 45% in the last six
:02:37. > :02:40.months ` the worst of any currency in the world. David Stern reports
:02:41. > :02:49.from the Ukranian capital Kiev on the hopes and fears of local
:02:50. > :02:53.business. This underwear is multinational,
:02:54. > :02:58.produced by a local company, and is sold in Ukraine, Russia and the EU.
:02:59. > :03:04.Business will receive a boost when Ukraine signs a long anticipated
:03:05. > :03:09.free`trade deal with Europe. The owner says that European integration
:03:10. > :03:13.is Ukraine's only choice. But, he says that the road will be rocky,
:03:14. > :03:20.competition with European companies will increase. It is like learning
:03:21. > :03:29.to swim, everybody will dive into the water, but somebody will learn
:03:30. > :03:36.to swim, and some people won't. They will drown. The trade deal comes
:03:37. > :03:40.among political and economic turmoil. Ukraine's growth has
:03:41. > :03:46.plummeted, and the government owes billions of dollars to international
:03:47. > :03:51.investors. Last year, Ukraine's former president cancelled the EU
:03:52. > :03:55.deal. Hundreds of thousands protested the move, and drove him in
:03:56. > :04:05.power. Now, his successor is signing the deal. The revolution was not
:04:06. > :04:09.only pro` European, but also anti` Moscow and last year Russia said it
:04:10. > :04:12.would punish Ukraine economically if it signed the association agreement.
:04:13. > :04:20.The question is, does the threat still stand? Ukraine's relations
:04:21. > :04:22.with Russia had deteriorated drastically. Pro` Kremlin
:04:23. > :04:27.separatists are fighting in Ukraine's East. Russia and its
:04:28. > :04:36.economic allies can influence Ukraine in a number of ways. Russia
:04:37. > :04:40.and other Eurasian countries, especially given that they come from
:04:41. > :04:45.a third of our trade, there are a number of companies in the east of
:04:46. > :04:50.the Ukraine that exporter Russia. Many Ukrainians are hoping that once
:04:51. > :04:54.the deal is signed, that the benefits will outweigh the initial
:04:55. > :05:00.pain it will undoubtably bring. `` exports to Russia.
:05:01. > :05:07.Some good news from Japan in its battle to end deflation. It has seen
:05:08. > :05:13.consumer prices rise at their fastest rate in more than three
:05:14. > :05:17.decades. Let's go straight to Sharanjit Leyl in Singapore, who has
:05:18. > :05:21.been following the story. People typically around the world in some
:05:22. > :05:26.parts may say, oh my goodness, I don't want to see prices rise, but
:05:27. > :05:32.in Japan it is a relief? It is a huge sigh of relief, it is also a
:05:33. > :05:36.sign that Japanese Prime Minister `` the Japanese Prime Minister is
:05:37. > :05:42.making headway in the fight against deflation, and inflation is rising
:05:43. > :05:50.to 3.4%, that was in May, following an increase in nationwide sales.
:05:51. > :05:55.Deflation has been a huge problem for years. Falling prices for
:05:56. > :06:00.decades in Japan has held off making purchases. We have seen high utility
:06:01. > :06:05.charges squeezing budgets, household spending was down more than
:06:06. > :06:10.expected, about 8%. Analysts I have spoken to have said that raising the
:06:11. > :06:14.effects of the price rise, means that consumer prices would have been
:06:15. > :06:18.flat. That is a sign that not much has changed. It could also be a
:06:19. > :06:24.temporary blip and price gains could slow in coming months. As we have
:06:25. > :06:27.said before, this is important because Japan has battled deflation
:06:28. > :06:34.for the best part of the past two decades. That has hit domestic
:06:35. > :06:40.demand, stifling growth, and the government has taken steps to
:06:41. > :06:44.reverse the trend. The country 's central back Hill Central Bank has
:06:45. > :06:53.hit a target of 2%. The Japanese Prime Minister today in an interview
:06:54. > :07:07.declared an end to it. `` Japanese Prime Minister in an interview this
:07:08. > :07:10.week. If you are a regular viewer, you
:07:11. > :07:13.will know that every Friday we are trying to spot the next generation
:07:14. > :07:16.of global billionaires, who they might be, where they might come from
:07:17. > :07:19.and how they might make their money. Today we are in India, where the
:07:20. > :07:22.billionaire count is expected to double in the next ten years. Yogita
:07:23. > :07:25.Limaye has met two young entrepreneurs from the financial
:07:26. > :07:38.capital Mumbai who think they are already on the road to success.
:07:39. > :07:42.Young India is in the fast lane. This man is 27, and ever since he
:07:43. > :07:50.graduated five years ago, he has started one company every year.
:07:51. > :07:55.Among his ventures, this Harley`Davidson franchise. The only
:07:56. > :07:59.one in Mumbai. He has had the financial support of his family.
:08:00. > :08:04.But, he is aiming to make his own mark. He is in a hurry to achieve
:08:05. > :08:08.his goals, but is also realistic that sometimes not everything goes
:08:09. > :08:12.to plan. When the economy was better, I was aiming to be in the
:08:13. > :08:18.billionaire club at the age of 30, but that is going to push to 32
:08:19. > :08:25.now. I want to be the youngest billionaire in India. The other one
:08:26. > :08:32.was 31, so I am aiming for 30. That is going to be postponed but you
:08:33. > :08:40.never know! India has a large young population, and in Mumbai, they are
:08:41. > :08:44.among the first to be exposed to new technologies and ideas. It has an
:08:45. > :08:49.entrepreneurial spirit, that is a culture often employed early on.
:08:50. > :08:53.This man started up his first company when he was only 16,
:08:54. > :09:00.providing software solutions to local businessmen. I got my first
:09:01. > :09:03.company at the age of 15. It was something awesome. I discovered a
:09:04. > :09:11.new world. A new world could be Internet! `` called the Internet. I
:09:12. > :09:16.was researching how to make money on it rather than playing games. At the
:09:17. > :09:20.age of 19, he still has to graduate, but has already begun six ventures,
:09:21. > :09:27.some with his classmates from university. He believes that India
:09:28. > :09:31.is the place to be in right now. If you have a great idea, there is
:09:32. > :09:35.amazing potential. Because there are millions of people in India, it
:09:36. > :09:40.could happen faster than anyone has ever seen in New York, or anywhere.
:09:41. > :09:45.The conference to take on the world has come with India's rapid rise
:09:46. > :09:50.over the past decade. Even though growth has slowed over the past
:09:51. > :09:56.couple of years, people like these to believe that India still has most
:09:57. > :09:59.to go and they want to make sure that they are riding along as it
:10:00. > :10:07.tries to make its way towards economic success `` Miles to go.
:10:08. > :10:10.Good luck to them. In other news, Chinese e`commerce giant Alibaba has
:10:11. > :10:16.decided to list on the New York Stock Exchange in what could be the
:10:17. > :10:19.largest ever technology flotation. The decision is a blow to the rival
:10:20. > :10:23.Nasdaq market which was hoping to handle the share sale, expected
:10:24. > :10:26.later this summer. Alibaba handles more than 80% of online retail
:10:27. > :10:30.transactions in the world's number two economy. It could have a stock
:10:31. > :10:43.market valuation north of $200 billion. Wowzers! Argentina has
:10:44. > :10:47.moved closer to defaulting on its debt after a US judge refused to
:10:48. > :10:51.give it more time to pay off two hedge funds which hold 1.3 billion
:10:52. > :10:58.dollars in bonds. In debt. The judge has ordered Buenos Aires to pay both
:10:59. > :11:02.the funds by the June 30th deadline. Don't forget you can get in touch
:11:03. > :11:13.with me and some of the team on Twitter ` I'm @BBCAaron.
:11:14. > :11:21.Aaron will be back later, but another story here in the UK now.
:11:22. > :11:23.The head of counter terrorism in Wales says that police forces
:11:24. > :11:26.haven't failed in their efforts to combat the radicalisation of British
:11:27. > :11:29.Muslims. The denial comes after a video emerged showing two young
:11:30. > :11:32.Cardiff men encouraging others to join them in Syria and Iraq. More
:11:33. > :11:33.from our Wales Correspondent, Hywel