15/09/2014 World Business Report


15/09/2014

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Those are the latest headlines from BBC News. Now for the latest

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financial news with Sally Bundock and World Business Report.

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Trying to predict the unpredictable, investors hedge their bets this week

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as Scotland edges closer to making a decision on independence.

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Alibaba's market debut is making waves not just in Wall Street but on

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the West Coast of America too but not everyone there is laying out the

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red carpet. Welcome to World Business Report.

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I'm Sally Bundock... Also in the programme one of China's leading

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energy firms raises billions selling a stake in its retail arm. We'll

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find out why... In four days time the people of

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Scotland will decide on their future ` the world is watching closely as

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it becomes harder to predict the outcome of the vote on independence

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and financial markets hate uncertainty. The 307 year union

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means that Scotland is economically and politically embedded with

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Britain. So how are the companies and investors likely to react if

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Scotland breaks away? Our Scottish Economics Correspondent Colletta

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Smith reports. The battlefield in Scotland has been

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brought but over the last few weeks it is the banks that have been at

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the centre of attention. Five UK banks have legal headquarters in

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Edinburgh but the majority of their customers live in the rest of the

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UK. There has been a flurry of announcements stating that the five

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banks with registered offices in Edinburgh would move if Scotland

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votes yes. RBS, Lloyds, Clydesdale come up Tesco and others plan to

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move to England as does Standard Life who said the following. Most of

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these companies already have offices in London so it wouldn't be

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difficult to do and they have all rushed to reassure staff in Scotland

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that jobs are not at risk. Would it really matter or is it just a case

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of moving? The two sides of the referendum campaign do not agree. I

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think the problem lies entirely with the No campaign for this reason.

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They have been caught red`handed as part of a campaign of

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scaremongering. It is not about 's silly inconsequential things but

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about brass taxes. All of this centres around uncertainty regarding

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what currency and Independent Scotland would be using. Many are

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wondering what options are left. What is the alternative? What will

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it mean for my borrowing costs and mortgages and jobs? If there is no

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clear answer then it is a lot of economic uncertainty. One investor

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says they have already moved hundreds of millions of pounds

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outside of Scotland but others in Edinburgh are urging caution. Even

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if Scotland votes Yes there would be a lengthy period of transition. What

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we do know is that the financial regulators have contingency plans

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and it would be there was possibility to make sure that this

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is managed with calmness and . Deregulating bodies are working

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overtime to try to avoid any panic `` the regulating. We will have some

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more on this when we talk about the newspapers in ten minutes. And you

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can out everything you ever wanted to know about the referendum on the

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BBC website. Alibaba's market debut is making

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waves not just in Wall Street but on the West Coast of America too. A

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chunk of its five billion dollar investment spend over the past year

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has been in Silicon Valley. But as our North America technology

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correspondent Richard Taylor reports, not everyone there is

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welcoming Jack Ma with open arms. Ridesharing San francisco style.

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These are the hallmark of Lift, a popular application for car sharing

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on smartphones. It has teamed up with Alibaba, Jack Ma's Empire a key

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investor earlier this year. That was just a portion of their spending

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spree over the last few months as they have spread way beyond

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transport into areas as diverse as communications, gaming and others.

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So what is driving these investments? This Silicon Valley

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investment firm put money into Alibaba a decade ago. He is very

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astute and I think others are trying to learn as much as they can about

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him, the CEO that is. They are trying to learn as much about the US

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tech market as possible. Many have a strategic aspect where they are

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trying to expand here in the US. And those expansionist intentions are

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getting some in Silicon Valley concerned. Alibaba's e`commerce

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presence here is subtle. It's retail outlet doesn't carry any branding.

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But some observers say it e`commerce ambitions could pose a real threat

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to established American players like Amazon and eBay. They know they

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can't just come to the US and drop. They want some of their services on

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the US first. They will take a long`term approach and introduce

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other services slowly but surely to the US. They have a ton of money and

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experience and you cannot discount Jack Ma. But in their quest to

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become the next big thing, their investment is positively welcomed.

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Chinese funding is seen as a badge of credibility these days. It is

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clear that their presence here in Silicon Valley is not just a 1`way

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street. Many established American firms may see it as encroachment on

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US soil but for many others, it is a gateway into China it self. Not just

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a new market but the biggest in the world.

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China's energy giant, Sinopec, is set to sell a $17 point five billion

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dollar stake in its retail businesses. The stake will go to a

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group of 25 foreign and domestic investors. What is this company up

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to? Rico Hizon is in Singapore... Tell us about Sinopec and what it is

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this whole process, it will be the this whole process, it will be the

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country's biggest privatisation is the president came to power. The

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steak will be sold to a group of foreign and domestic investors and

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this comes as the government pushes to restructure its state`owned

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companies I've bringing in private capital and expertise to improve its

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nonfuel sales `` by. Like in the Western market, nonfuel businesses

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can account for more than half of a station's profits but for them, more

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than 99% of its retail sales come from petrol. This deal helps to

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boost the value of this business and improve it and emphasize export and

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production. Cytotec shares of currently trading lower in Shanghai

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`` Sinopec. `` shares are. In other news... Taiwan and China

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have trade talks after failing to reach

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an agreement to cut tariffs on thousands of products

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crucial to Taiwan's economy. French flag carrier Air France says it may

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be forced to scrap today, as pilots strike in protest

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at the company's plan to develop its low`cost subsidiary. The main

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pilots' union at Air France has called for a week`long strike, which

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would be the longest at the company since 1998. The Japanese markets are

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closed for public holiday but Hong Kong is having a tough session. Here

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is the dollar and the pound sterling. I will see you soon.

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Cycling or walking to work instead of driving makes you happier,

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according to new research. A study of almost eighteen thousand people

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found those who had an active commute, are less likely to report

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feeling under strain, and depressed. Here's our Health Correspondent,

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Adam Brimelow.

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