16/07/2014 World Business Report


16/07/2014

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as it moves across the Philippines. Those are the latest headlines. Now

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for the latest financial news, Sally, World Business Report.

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Bang on target, China's economy grows by 7.5%, but could a slump in

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the housing market halt future expansion? And, Apple and IBM forge

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a partnership to create business apps for iPads and iPhones.

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Hello, and welcome. You are with World Business Report, also in the

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programme: more from the Farnborough airshow whereas small eco` plane is

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grabbing attention. Growth in China is picking up at a rate better than

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expected, accelerating by 7.5% in the second quarter, compared to the

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year before. That hits the growth target set by Premier Li's

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government. Despite this growth, there are concerns a sharp slowdown

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in the property market, which makes up 20% of China's economy, could

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derail the attempts to keep the growth wait at 7.5% or more. ``

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growth rate. Despite the looming clouds on the

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economic horizon, this city, like so many others, has just kept on

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building. Now, though, it may have become the first to face the storm

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of overcapacity and unsold housing stock. This year, something

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previously unheard of is rife. Massive property discounting. This

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brand`new apartment is being advertised with 30% off, leaving

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those who pay the original price furious. China has been through

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property wobbles before. The question this time is whether it is

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just another adjustment, or something more serious and systemic.

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Some observers suggest that if this country's massive construction boom

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really is unwinding in a catastrophic way, then it could wipe

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2% or more of GDP at a stroke. Many analysts fear that China's property

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market for years, such an important engine of growth, has begun to pose

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the biggest risk, and there is talk of further government action to

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support home sales. Others, like this estate agent, said the danger

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is limited. Chinese families have less debt than those in the West, so

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they have less to lose. People from the countryside are still flooding

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to the cities for better education and a better life, he tells me. The

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demand will always be there. The Chinese government agrees. It is

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urbanisation, it says, that will ultimately keep growth on track. But

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if so, critics are beginning to wonder, why are so many new homes

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deal empty, and why are prices so damp? `` still empty.

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For decades, these two technology giants have battled to dominate

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personal computing, but in this new era of tablets and smart phones,

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they are becoming friends. Apple and IBM have teamed up to provide simple

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to use business apps, and sell them to business clients. They are

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developing more than 100 apps to business clients, and they are

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hoping to make them available sometime later this year.

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These little devices, they are everywhere. In a city like New

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York, it seems that almost everyone is cutting some sort of Apple

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device. They are immensely popular with consumers. But, Apple is

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aggressively trying to make their products equally ubiquitous in the

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corporate world, and this partnership with IBM clears the road

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for them to do just that. IBM is selling Apple products to their

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corporate clients. IBM is keen to get more of their software onto

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Apple devices, and Apple is very good at creating simple to use apps.

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30 years ago it would have been unthinkable to see these two

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companies working together. In what seems to be a win win for both Apple

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and IBM, this could also make it virtually impossible for the once

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industry dominant blackberry to regain any sort of foothold in the

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corporate world `` BlackBerry. De BRICS bank has been announced,

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and we report from Fortaleza, Brazil.

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After hosting football players for the last month, Dilma Rousseff has

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turned to hosting political leaders. After months of talk, big

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announcements were made. The BRICS have announced their new development

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bank, the fund projects in developing markets. It will

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initially have $50 billion worth of funds, and the capacity to double

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that figure. As well as the bank, they have agreed on a contingency

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fund worth 100 $11. It is a pool of money that will help BRICS countries

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when they are under pressure. These announcements are significant. BRICS

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countries have long criticised the World Bank and the IMF for not

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giving developing nations enough representation. I creating their own

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bank account control where their money goes and what influence they

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have. BRICS countries say they need an estimated $4.5 trillion to fund

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infrastructure projects in the next five years. The bank can go some way

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to plugging the gap, but it is just a start. The big question is whether

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that institution can really challenge the World Bank and develop

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a sense of competition, or whether it will be a mere symbol. I think it

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depends a bit on how these countries get along. They don't really know

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each other so well. The BRICS nations feel they can offer a better

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alternative. As Brazil's president said on Tuesday, they can make

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changes that are equal and fair. These countries want more of a say

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in global politics, and this is their first step in making that

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happen. We will discuss that further when we

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look at the papers. Of all the vintage and state`of`the`art planes

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at this week's Farnborough airshow, one tiny two seater is taking part

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in the display. It is standing out because it is almost silent, it

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doesn't need any kerosene to get off the ground. It is being bankrolled

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by Airbus has an experimental project.

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They have not yet dared to cross the English Channel in this tiny plane,

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but that is a plan for someday soon, as Airbus engineers test ideas to

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eat out more air miles from no or very little airline fuel. There are

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a lot of electric buggies rolling around here, so it was only a matter

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of time before we got an all electric plane. This has two seats,

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it is powered by lithium iron factories, which are stored in the

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wings. They provide about 50 kilowatts between them. This can

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only run for about half an hour, but they are working on that. Cost of

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running it is minimal, which is why there are already applications for

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planes like this as pilot trainers. We had some very specific ideas on

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how to isolate every cell and make it very safe. The next generation of

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batteries has come through, and it will be a lot safer for the future.

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If we have a hybrid, the thermal engine will only be used to

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replenish batteries. All the proportion will always be electric.

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The ultimate goal for Airbus is to combine this with hybrid tech

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knowledge it and produce a regional jet that could maybe carry 90 people

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in the air for a couple of hours. The problem is, if we look at the

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modern airliner, even compared to five years ago, it uses are not more

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electricity, so maybe we have to wean ourselves off that power. We

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are seeing it as a technological platform to demonstrate electrical

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plane capabilities, and at the same time, with the Boeing 787, we are

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over consuming electricity, we couldn't manage the battery because

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when you look at the previous generation, the 787 is consuming

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three times more electricity than the previous generation. Industry

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leaders know they need to keep investing, and what they need now is

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better batteries. Let's have a look at the markets.

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The better than expected growth in China gave them a bit of a boost.

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They are fairly flat. These markets are also digesting what Janet Yellen

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had to say about foreign monetary policy. They could be going up if

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the jobs market in the US creep up faster than expected. You can see,

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this is the close in the US, and a stronger dollar. I will see you

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soon. The Department of Education says

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that 99% of schools are

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