23/09/2014 World Business Report

BBC World News. Now for the latest financial news with and World

Business Report. China reports a surprise pick`up in

production at its manufacturers but is this enough to calm nerves about

future growth. Preparing for the winter months.

Europe works out its energy strategy as the Russia`Ukraine crisis

continues. Welcome to World Business Report.

I'm Sally Bundock. Also in the programme, the second part in our

series on climate change takes us to New York.

But first, activity in China's manufacturing sector unexpectedly

picked up in September even as factory employment slumped to a

5.5`year low. At a conference in Singapore delegates are at concerned

about any change in supply and the impact it may have. Russia has

pipelines that radiate across the continent. Which countries are

likely to be hit hardest if relations between the countries get

worse? If you any, Latvia and Belarus are almost completely

reliant on Russia for natural gas. Normally Ukraine would also get 100%

of its gas supply from Russia but currently it has restricted supplies

to the Ukraine and so the exact amount Ukraine is receiving is

unclear. Either way, Ukraine still offers an important pipeline to the

rest of Europe. For example, 83% of Slovakia's gas originates in Russia

while 59% of Polish gas used comes from Russia. Moving further afield,

37% of Germany's gas, 29% of Italy's gas and 16% of France's gas comes

from Russian energy companies. Italy is particularly at risk. The

majority of its gas comes via the Ukrainian pipeline, the one that is

likely to be switched off first if relations between Kiev and Moscow

sour further. The rest of Europe including UK and Spain do not

receive any but they will be affected if there is a rise in

global prices if Russia decides to limit its supplier.

With me is Cornelia Meyer, chief executive of Meyer Resources, an

international economist and independent energy expert. If you

watch us all the time you will know she's a regular. Nice to you again.

It is that time of year when we head into the winter months in Europe.

There is always that thought that there could be energy issues but

this year it is much more critical. Where are we as we head into winter?

We are in a better place than we could potentially be because last

winter was quite mild and gas stocks are high. That said, all in all

Europe gets about 30% of its gas from Russia and about half of that,

15% comes through that Ukrainian pipelines. Germany will be OK

because they receive their gas directly through a pipeline that

goes directly to, recently built, to Germany. The people who are really

going to be affected are the the southern European region like Bosnia

that get all their gas from the European pipelaying. Sarajevo is

heated in the winter by a gas central heating system so they would

literally freeze to death. Europe, it is their own faults because one

has tried to diversify away from Russia with pipelines from

Azerbaijan, through Turkey. What happened is the Germans said, oh

no, book arrest could potentially be Errani and gas... `` it could be

book arrest, Iran. It shows there is no quick answer to this. This has

been going on for years. Each winter we have the discussion about

Europe's reliance on gas from Russia through Ukraine. They constantly

argue about unpaid bills, how big, how small the bills are. This year

we have the political and military crisis in eastern Ukraine, Russia,

sanctions. It is so much more complicated this year and so much

more is at stake this year. Certainly with the Ukrainian

pipelines there is a lot at stake. When you look at the other

pipelines, I think less so because if you look at what Russia needs as

well. 70% of its exploits `` it's exports are oil and ass. 20% of

GDP, 16% is oil and gas. They are heavily reliant on the budget. Thank

you very much. That is ongoing in you very much. That is ongoing in

Singapore and we will keep across any arrangements that come across.

Let's talk about China. Activity in manufacturing unexpectedly picked up

in September even as factory employment slumped to a 5.5 year

low. It adds to previously lacklustre news out of China that

paints a picture of slow growth. What now? How excited can we get

about this news? We go to Rico Hizon. You are always smiling. It is

a big relief short`term for investors after the string of weak

economic numbers pointing to a slowdown in the second largest

economy in the world. Domestic and export orders registering

improvement. Factory employment slumping to its lowest level since

2009 when a collapse in exports through tens of millions of Chinese

out of work. We are starting to see the impact of the string of

measures, stimulus measures implemented by Chinese authorities

to boost growth and they are having an impact on the economy. When you

talk to analysts they warn a slowdown in property is an ongoing

risk. The property market makes up 15% of GDP and according to industry

numbers there is 1.4 billion square metres of property outstanding and

that translates to 12 months of inventory that needs to be sold.

There is an oversupply of inventory in China's uppity market. There are

risks in the Chinese economy but many say GDP growth can be

maintained at 7.5% this year. OK, super, thank you.

It `` It's a high profile event attended by the world's political

and business leaders. This Tuesday the United Nations summit on climate

change gets under way in New York. But leaders from two of the world's

biggest polluters, China and India, are skipping the event. So will the

calls from who took to the street to demand change go unheeded?

In our week`long series on climate change, Michelle Fleury reports from

New York. The Big Apple knows how to put on a big show. UN

Secretary`General Ban Ki`moon, in the blue cap, and Al Gore joined

hundreds of thousands of `` of thousands on the streets. It is a

very powerful message that people should take climate change

seriously. It is very important and the governments are not doing

anything at an international level to put pressure. The march brought

people together. This economist is less confident of consensus among

politicians. It was wonderful to see that kind of show of profound

concern all over the world. I don't think political leaders are there.

This is still a world dominated by the geopolitics of fossil fuels.

Once America's richest man, John D Rockefeller made his fortune from

oil. His descendants say it is time to move away from fossil fuels and

invest in clean energy. It is a view shared by a growing number of

companies including this supermarket chain. The company helped build the

solar roof and wind turbines dotted around this car park of the

supermarket. This project, it is a great demonstration of different

technologies that are cost`effective. When businesses

trade out, show their neighbours what they are doing, a lot of other

companies will catch on. The success of businesses like this one reflects

a change in the way companies think about climate change. More and more

firms are taking into account the financial cost of doing nothing.

Some corporations are still putting profits before the planet and on

Monday Wall Street was filled with protesters.

A quick look at the markets. They were higher in Asia because of the

news about China. They have been hit by the situation in Syria with the

US airstrike beginning. Hong Kong is up just slightly. Much higher

earlier. Japan is closed for a public holiday. The US yesterday,

ended lower across the board. I will see you soon as we talk through the

papers. The Labour leader Ed Miliband will

today promise more spending on the NHS, more apprenticeships and to

double the number of first`time homebuyers. In his speech to his

party's conference in Manchester, the Labour leader is expected to say

that the money for the NHS will come from a new mansion tax on properties

worth more than ?2 million. Our political correspondent Carole

Walker