15/09/2014

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:00:00. > :00:00.Those are the latest headlines from BBC News. Now for the latest

:00:00. > :00:15.financial news with Sally Bundock and World Business Report.

:00:16. > :00:20.Trying to predict the unpredictable, investors hedge their bets this week

:00:21. > :00:25.as Scotland edges closer to making a decision on independence.

:00:26. > :00:29.Alibaba's market debut is making waves not just in Wall Street but on

:00:30. > :00:39.the West Coast of America too but not everyone there is laying out the

:00:40. > :00:44.red carpet. Welcome to World Business Report.

:00:45. > :00:46.I'm Sally Bundock... Also in the programme one of China's leading

:00:47. > :00:57.energy firms raises billions selling a stake in its retail arm. We'll

:00:58. > :01:00.find out why... In four days time the people of

:01:01. > :01:03.Scotland will decide on their future ` the world is watching closely as

:01:04. > :01:06.it becomes harder to predict the outcome of the vote on independence

:01:07. > :01:08.and financial markets hate uncertainty. The 307 year union

:01:09. > :01:11.means that Scotland is economically and politically embedded with

:01:12. > :01:14.Britain. So how are the companies and investors likely to react if

:01:15. > :01:23.Scotland breaks away? Our Scottish Economics Correspondent Colletta

:01:24. > :01:28.Smith reports. The battlefield in Scotland has been

:01:29. > :01:33.brought but over the last few weeks it is the banks that have been at

:01:34. > :01:37.the centre of attention. Five UK banks have legal headquarters in

:01:38. > :01:43.Edinburgh but the majority of their customers live in the rest of the

:01:44. > :01:45.UK. There has been a flurry of announcements stating that the five

:01:46. > :01:55.banks with registered offices in Edinburgh would move if Scotland

:01:56. > :02:02.votes yes. RBS, Lloyds, Clydesdale come up Tesco and others plan to

:02:03. > :02:17.move to England as does Standard Life who said the following. Most of

:02:18. > :02:20.these companies already have offices in London so it wouldn't be

:02:21. > :02:25.difficult to do and they have all rushed to reassure staff in Scotland

:02:26. > :02:32.that jobs are not at risk. Would it really matter or is it just a case

:02:33. > :02:36.of moving? The two sides of the referendum campaign do not agree. I

:02:37. > :02:41.think the problem lies entirely with the No campaign for this reason.

:02:42. > :02:51.They have been caught red`handed as part of a campaign of

:02:52. > :03:00.scaremongering. It is not about 's silly inconsequential things but

:03:01. > :03:05.about brass taxes. All of this centres around uncertainty regarding

:03:06. > :03:10.what currency and Independent Scotland would be using. Many are

:03:11. > :03:16.wondering what options are left. What is the alternative? What will

:03:17. > :03:21.it mean for my borrowing costs and mortgages and jobs? If there is no

:03:22. > :03:27.clear answer then it is a lot of economic uncertainty. One investor

:03:28. > :03:29.says they have already moved hundreds of millions of pounds

:03:30. > :03:35.outside of Scotland but others in Edinburgh are urging caution. Even

:03:36. > :03:42.if Scotland votes Yes there would be a lengthy period of transition. What

:03:43. > :03:45.we do know is that the financial regulators have contingency plans

:03:46. > :04:00.and it would be there was possibility to make sure that this

:04:01. > :04:04.is managed with calmness and . Deregulating bodies are working

:04:05. > :04:14.overtime to try to avoid any panic `` the regulating. We will have some

:04:15. > :04:18.more on this when we talk about the newspapers in ten minutes. And you

:04:19. > :04:26.can out everything you ever wanted to know about the referendum on the

:04:27. > :04:29.BBC website. Alibaba's market debut is making

:04:30. > :04:33.waves not just in Wall Street but on the West Coast of America too. A

:04:34. > :04:36.chunk of its five billion dollar investment spend over the past year

:04:37. > :04:38.has been in Silicon Valley. But as our North America technology

:04:39. > :04:50.correspondent Richard Taylor reports, not everyone there is

:04:51. > :05:01.welcoming Jack Ma with open arms. Ridesharing San francisco style.

:05:02. > :05:06.These are the hallmark of Lift, a popular application for car sharing

:05:07. > :05:18.on smartphones. It has teamed up with Alibaba, Jack Ma's Empire a key

:05:19. > :05:22.investor earlier this year. That was just a portion of their spending

:05:23. > :05:25.spree over the last few months as they have spread way beyond

:05:26. > :05:30.transport into areas as diverse as communications, gaming and others.

:05:31. > :05:36.So what is driving these investments? This Silicon Valley

:05:37. > :05:42.investment firm put money into Alibaba a decade ago. He is very

:05:43. > :05:47.astute and I think others are trying to learn as much as they can about

:05:48. > :05:56.him, the CEO that is. They are trying to learn as much about the US

:05:57. > :06:02.tech market as possible. Many have a strategic aspect where they are

:06:03. > :06:06.trying to expand here in the US. And those expansionist intentions are

:06:07. > :06:11.getting some in Silicon Valley concerned. Alibaba's e`commerce

:06:12. > :06:18.presence here is subtle. It's retail outlet doesn't carry any branding.

:06:19. > :06:20.But some observers say it e`commerce ambitions could pose a real threat

:06:21. > :06:28.to established American players like Amazon and eBay. They know they

:06:29. > :06:33.can't just come to the US and drop. They want some of their services on

:06:34. > :06:36.the US first. They will take a long`term approach and introduce

:06:37. > :06:42.other services slowly but surely to the US. They have a ton of money and

:06:43. > :06:48.experience and you cannot discount Jack Ma. But in their quest to

:06:49. > :06:55.become the next big thing, their investment is positively welcomed.

:06:56. > :06:58.Chinese funding is seen as a badge of credibility these days. It is

:06:59. > :07:02.clear that their presence here in Silicon Valley is not just a 1`way

:07:03. > :07:08.street. Many established American firms may see it as encroachment on

:07:09. > :07:13.US soil but for many others, it is a gateway into China it self. Not just

:07:14. > :07:22.a new market but the biggest in the world.

:07:23. > :07:25.China's energy giant, Sinopec, is set to sell a $17 point five billion

:07:26. > :07:30.dollar stake in its retail businesses. The stake will go to a

:07:31. > :07:38.group of 25 foreign and domestic investors. What is this company up

:07:39. > :07:45.to? Rico Hizon is in Singapore... Tell us about Sinopec and what it is

:07:46. > :07:53.this whole process, it will be the this whole process, it will be the

:07:54. > :07:57.country's biggest privatisation is the president came to power. The

:07:58. > :08:02.steak will be sold to a group of foreign and domestic investors and

:08:03. > :08:06.this comes as the government pushes to restructure its state`owned

:08:07. > :08:15.companies I've bringing in private capital and expertise to improve its

:08:16. > :08:24.nonfuel sales `` by. Like in the Western market, nonfuel businesses

:08:25. > :08:30.can account for more than half of a station's profits but for them, more

:08:31. > :08:40.than 99% of its retail sales come from petrol. This deal helps to

:08:41. > :08:40.boost the value of this business and improve it and emphasize export and

:08:41. > :09:16.production. Cytotec shares of currently trading lower in Shanghai

:09:17. > :09:17.`` Sinopec. `` shares are. In other news... Taiwan and China

:09:18. > :09:23.have trade talks after failing to reach

:09:24. > :09:23.an agreement to cut tariffs on thousands of products

:09:24. > :09:29.crucial to Taiwan's economy. French flag carrier Air France says it may

:09:30. > :09:34.be forced to scrap today, as pilots strike in protest

:09:35. > :09:38.at the company's plan to develop its low`cost subsidiary. The main

:09:39. > :09:42.pilots' union at Air France has called for a week`long strike, which

:09:43. > :09:44.would be the longest at the company since 1998. The Japanese markets are

:09:45. > :09:49.closed for public holiday but Hong Kong is having a tough session. Here

:09:50. > :10:09.is the dollar and the pound sterling. I will see you soon.

:10:10. > :10:12.Cycling or walking to work instead of driving makes you happier,

:10:13. > :10:15.according to new research. A study of almost eighteen thousand people

:10:16. > :10:18.found those who had an active commute, are less likely to report

:10:19. > :10:19.feeling under strain, and depressed. Here's our Health Correspondent,

:10:20. > :10:25.Adam Brimelow.