:00:00. > :00:00.Now for the latest financial news with
:00:00. > :00:21.Manila prepares to host leaders of Asia-Pacific nations, including
:00:22. > :00:28.Rico Hizon is there to tell us what's at stake.
:00:29. > :00:30.With an increase in interest rates a live possibility
:00:31. > :00:33.in the US, we assess today's inflation numbers for any clues
:00:34. > :00:43.Welcome to World Business Report. I'm Sally Bundock.
:00:44. > :00:56.In a minute, we'll also have news of a huge merger in the hotel industry.
:00:57. > :00:58.World leaders, including the US President, are arriving in Manila,
:00:59. > :01:05.the capital of the Philippines, for the annual APEC summit.
:01:06. > :01:08.That's the Asia Pacific Economic Cooperation.
:01:09. > :01:10.Proceedings officially start tomorrow and it's the first time
:01:11. > :01:15.these leaders have met since they agreed on a major trade deal known
:01:16. > :01:20.For the Philippines, hosting this event is a huge undertaking.
:01:21. > :01:23.And from our point of view, there is only one man to send to
:01:24. > :01:35.this event and that is Rico Hizon, who is from Manila.
:01:36. > :01:49.Currently, I'm here at the APEC summit in Manila, the second day of
:01:50. > :01:55.the CEO APEC summit. The focus is on inclusive growth and inclusive
:01:56. > :02:00.economies. And the Trans-Pacific Partnership, of which 12 members are
:02:01. > :02:05.from the APEC economies, they will be meeting to discuss what has
:02:06. > :02:12.already been agreed on since the last meeting in Hawaii. The host
:02:13. > :02:17.country, the Philippines, is not part of APEC at the moment but the
:02:18. > :02:23.president says that the Trans-Pacific Partnership must be an
:02:24. > :02:28.agreement of inclusive growth. And here we have more than 1000
:02:29. > :02:34.delegates talking about inclusive growth, inclusive economies and
:02:35. > :02:39.infrastructure development, and they will also be discussing this with
:02:40. > :02:45.the 21 APEC leaders when they meet tomorrow before the official start
:02:46. > :02:51.of the summit in the afternoon on Wednesday. Infrastructure, of
:02:52. > :02:55.course, as I mentioned, is an important factor in this summit.
:02:56. > :03:04.That is one of the major challenges that the host city faces. Manila.
:03:05. > :03:11.Replace with huge potential. But it has its setbacks. Even getting to
:03:12. > :03:14.work each day here can be a chore. I want to experience people's daily
:03:15. > :03:20.frustrations, so today, I'm going to take a ride with this management
:03:21. > :03:25.consultant on his journey to work. At this point, I'm wondering, if
:03:26. > :03:32.Manila really the worst city in which to drive on earth? We are
:03:33. > :03:36.currently in the middle of an major traffic jam. It is
:03:37. > :03:41.bumper-to-bumper. This is the reality every day that we face. It
:03:42. > :03:48.takes 2.5 hours to get one point two another. Public transport is
:03:49. > :03:53.completely dysfunctional here. It is obsolete, 30 years behind the Times.
:03:54. > :03:58.And time is money. No one knows that more than, who owns a meat
:03:59. > :04:04.processing company. These plans churn out more than 5000 hotdogs
:04:05. > :04:08.every minute. 6 million per day, supplying 80% of the fast food
:04:09. > :04:18.restaurants in the Philippines. The profits are being squeezed. Expense
:04:19. > :04:24.transport costs brought about by congestion and very busy roads. That
:04:25. > :04:29.hampers our efficiency and brings about cost of distribution. Poor
:04:30. > :04:36.infrastructure costs the Philippines economy an estimated $60 million per
:04:37. > :04:38.day. The government insists that infrastructure spending has more
:04:39. > :04:45.than tripled since the president came to power five years ago. The
:04:46. > :04:48.projects to build rail networks, airports, ports and roads have been
:04:49. > :04:54.hit by delays, and even the minister in charge admits that it has had an
:04:55. > :05:00.economic impact. Definitely there is a huge cost in terms of delayed
:05:01. > :05:05.infrastructure, but what I'm saying is that it took some time to put the
:05:06. > :05:09.programmes in place. With elections next year, pressure is on the next
:05:10. > :05:19.government to ease the burden on commuters and businesses working in
:05:20. > :05:21.the capital stock apart from infrastructure being a key issue
:05:22. > :05:29.that the Philippines faces, inclusive growth, inclusive
:05:30. > :05:31.economies and the Trans-Pacific Partnership, what is also being
:05:32. > :05:35.discussed here is the slowdown of the Chinese economy, what it will do
:05:36. > :05:37.going forward, and, of course, the potential interest rate hike by the
:05:38. > :05:44.Federal Reserve as soon as December. Thank you. And while we are on the
:05:45. > :05:49.subject... America could be on the verge
:05:50. > :05:52.of a rate rise and economists are looking towards
:05:53. > :05:54.the inflation figures for clues. Officials from the Federal Reserve
:05:55. > :05:57.are hoping to see inflation firm up before they push the button
:05:58. > :05:59.on a rise. Headline US inflation has held
:06:00. > :06:02.steady below the Fed's 2% target and rates have been near zero
:06:03. > :06:04.since 2008. Experts are now looking
:06:05. > :06:06.for a rate rise in December. With me is Marc Ostwald, FX,
:06:07. > :06:36.Rates and EM strategist at ADM The inflation results are out today
:06:37. > :06:41.as well as the merits of the last meeting. While headline inflation is
:06:42. > :06:49.around flat, that is largely due to energy prices. They are down 18.4%
:06:50. > :06:54.year on year. Airline fares are also a contributing factor, down 6%. We
:06:55. > :06:59.are at the point where the Federal Reserve is looking through this and
:07:00. > :07:04.what it is looking at is the so-called core inflation, which is
:07:05. > :07:08.running at about 2%. And that is hiding a lot of things that are
:07:09. > :07:15.rising much faster, such as rent, prescription drugs, services... It
:07:16. > :07:22.is not a disinflationary problem that they have. They say they can
:07:23. > :07:26.look through this energy price fall and given that the economy is
:07:27. > :07:29.performing very well, I think that they definitely want to get away
:07:30. > :07:34.from this excessively accommodative style that they have had for quite
:07:35. > :07:37.some time. There will be quite little to stop them. May be some
:07:38. > :07:49.international development but when they talk about that, it would be
:07:50. > :07:53.more like signs of the Chinese economy stalling, which they were
:07:54. > :07:56.very worried about earlier in the year, and perhaps admitting that
:07:57. > :07:59.they were led astray by the gyrations of the Chinese stock
:08:00. > :08:05.market. Now they are looking through that and saying that it is perhaps
:08:06. > :08:08.not quite as bad. In terms of the recent events in Paris and the
:08:09. > :08:13.geopolitical impact, that will not impact Janet Yellen's choices on
:08:14. > :08:20.Friday? Some analysts were saying yesterday that could be a factor. If
:08:21. > :08:23.financial markets had react in a very negative way on a consistent
:08:24. > :08:27.basis between now and December, it could be more of a threat, but as is
:08:28. > :08:32.typical of these events, there is an initial knee-jerk reaction, but
:08:33. > :08:35.unless there is a perceived threat to the economy, it is not likely to
:08:36. > :08:42.have much of an impact on the Federal Reserve's decision. Rates
:08:43. > :08:47.going up in December? Yes, but after that added very slow pace. -- at a
:08:48. > :08:53.very slow pace. Thank you. In other news,
:08:54. > :08:54.US hoteliers Marriott International and Starwood Hotels have agreed
:08:55. > :08:57.a $12.2 billion deal to create The deal,
:08:58. > :09:00.where Marriot buys Starwood, will create a giant with more than
:09:01. > :09:03.5,500 hotels with 1.1 million rooms The tie-up will see them overtake
:09:04. > :09:07.the UK's Intercontinental Hotels, BHP Billiton and Vale have been
:09:08. > :09:23.fined a further $260 million for the mining disaster that killed 11
:09:24. > :09:26.people in Brazil earlier this month. The mining giants had already been
:09:27. > :09:29.ordered to pay $65 million after a dam burst at their jointly-owned
:09:30. > :09:31.Samarco mine on November 5. 12 people remain missing following
:09:32. > :09:34.the incident in southern Brazil The fine will provide aid to
:09:35. > :09:58.the victims The markets are much healthier
:09:59. > :10:03.today, the concerns about the attacks in Paris and the
:10:04. > :10:06.geopolitical impact reading away. We also have a weaker Japanese yen
:10:07. > :10:17.today as investors withdraw from safe havens. I will see you soon.
:10:18. > :10:20.There will be a shortage of nearly 200,000 UK care workers