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Those are the latest headlines from BBC World News. | :00:00. | :00:00. | |
Now for the latest financial news, with Sally and | :00:00. | :00:00. | |
Exports and imports both fell in November, as consumers fail to | :00:00. | :00:23. | |
What can the government do now to boost domestic demand? | :00:24. | :00:28. | |
Overcapacity and slowing global trade results in a giant merger | :00:29. | :00:32. | |
Also in the programme: Revised figures from Japan | :00:33. | :00:47. | |
China has released its latest set of trade numbers. | :00:48. | :01:01. | |
Both exports and imports declined in November, compared with | :01:02. | :01:03. | |
The big question now is whether or not the cooling economy | :01:04. | :01:07. | |
will face a hard or soft landing in the coming months and years. | :01:08. | :01:12. | |
Chinese trade last year was worth $4.3 trillion | :01:13. | :01:17. | |
making it the world's largest trader, a title it took | :01:18. | :01:19. | |
Those figures disguise a big problem though. | :01:20. | :01:25. | |
China saw imports drop for a record 13th month in a row | :01:26. | :01:29. | |
in November, down 8.7% on the same time a year before. | :01:30. | :01:34. | |
The falling import numbers suggest domestic demand is not as strong | :01:35. | :01:36. | |
And, as you can see here, the rate of Chinese growth has been | :01:37. | :01:54. | |
coming down from the heady heights of over 12% in 2010 to less than 7% | :01:55. | :01:57. | |
The Chinese government is attempting to shift the economy to one that is | :01:58. | :02:07. | |
fuelled by consumer demand as seen in the west. | :02:08. | :02:13. | |
-- West. However, these figures demonstrate this is not | :02:14. | :02:16. | |
So, is China now running out of options to prevent a hard landing? | :02:17. | :02:20. | |
Our corrrespondent in Beijing is Celia Hatton. | :02:21. | :02:26. | |
Nice to see you. Give us a bit more detail on the November numbers. What | :02:27. | :02:34. | |
do they tell us? The numbers tell us it is basically a continuation in | :02:35. | :02:38. | |
the pattern that we have been seeing for the past year. A continued | :02:39. | :02:45. | |
decline in the numbers. It should be said that these numbers weren't as | :02:46. | :02:48. | |
low as economists had feared, although it depends on whether you | :02:49. | :02:52. | |
take these numbers at face value. Some analysts believe the real | :02:53. | :02:55. | |
number is are couple of percentage points lower than reported by the | :02:56. | :02:59. | |
Chinese government. So there is some worry that these numbers continue to | :03:00. | :03:04. | |
be dropping. Some analyst reports that I read today predict that these | :03:05. | :03:07. | |
numbers will continue to drop for perhaps the next 18 months. What | :03:08. | :03:12. | |
will the government do next? It has tried many things, like interest | :03:13. | :03:18. | |
rate cuts, various other measures. Some things have been successful, | :03:19. | :03:21. | |
like cutting taxes on the purchasing of cars. That was quite a spike in | :03:22. | :03:27. | |
car sales in November. Absolutely. So the government cut taxes by half | :03:28. | :03:33. | |
on small automobiles and that led to an 18% boost in sales in November. | :03:34. | :03:37. | |
So, some believe that the government will continue to participate in | :03:38. | :03:43. | |
these tax cuts. Of course we've also seen interest rate cuts and we have | :03:44. | :03:47. | |
seen six so by this year and some are predicting who will see another | :03:48. | :03:51. | |
one later this month. And of course there is expected to be more | :03:52. | :03:55. | |
stimulus spending by the government. This is a bit of a double-edged | :03:56. | :03:59. | |
sword. Local governments in China have gotten themselves into some hot | :04:00. | :04:03. | |
water in the past I spending money on projects that are ill-advised and | :04:04. | :04:09. | |
defended government, local governments, get into this terrible | :04:10. | :04:13. | |
cycle of bad loans, for example. So, stimulus spending is all worry | :04:14. | :04:20. | |
semitone. What they will continue to try to boost the economy. -- is | :04:21. | :04:28. | |
worrisome in China. It will wait for the economy to shift its focus from | :04:29. | :04:32. | |
exports and manufacturing towards a more domestic demand. What is | :04:33. | :04:40. | |
sentiment like? We talk about how China is slowing, but what do the | :04:41. | :04:44. | |
Chinese people feel? It is all about confidence about the future, many | :04:45. | :04:48. | |
economists argue, in terms of viewing future growth? Well, many | :04:49. | :04:56. | |
people in China are concerned. They see the same numbers that we see. | :04:57. | :05:02. | |
They see that manufacturing is slow, they see continued concerns over | :05:03. | :05:04. | |
paying for things like healthcare and education. On continuing trend | :05:05. | :05:11. | |
is China is that saving rates are very high. Chinese people are | :05:12. | :05:16. | |
traditionally saving much more than people in Western countries. But | :05:17. | :05:21. | |
that's because many people are concerned that might not have the | :05:22. | :05:23. | |
government to help them with in-flight retirement and healthcare | :05:24. | :05:33. | |
in the future. People are concerned, especially when it comes to thing | :05:34. | :05:36. | |
for graduate employment and making sure young people can find jobs. | :05:37. | :05:42. | |
Thank you so much. Also illustrating the other story in the day's news, | :05:43. | :05:47. | |
regarding the problem with smog. We will talk about that later. | :05:48. | :05:52. | |
Internet firms including the likes of Google and Amazon, | :05:53. | :05:55. | |
operating in the EU, will be forced to report serious security breaches | :05:56. | :05:58. | |
According to the Reuters news agency, EU countries and lawmakers | :05:59. | :06:02. | |
have agreed reporting obligations for | :06:03. | :06:03. | |
companies in critical sectors such as transport, energy and finance. | :06:04. | :06:09. | |
The price of oil has fallen to its lowest level since 2009 as global | :06:10. | :06:12. | |
The price of West Texas crude sank to $37.65 a barrel, | :06:13. | :06:18. | |
a drop of 5.8%, while Brent Crude fell 5.3% to $40.73 a barrel. | :06:19. | :06:25. | |
The slumping price comes as OPEC, a group of | :06:26. | :06:28. | |
the largest oil producing nations, refused to cut oil production. | :06:29. | :06:36. | |
Again, something we will comment on when we come to the papers. Now | :06:37. | :06:42. | |
let's talk about a big merger on the cards in a global shipping industry. | :06:43. | :06:46. | |
In a $2.4 billion deal, France's CMA CGM has agreed to buy | :06:47. | :06:49. | |
the Singapore-based Neptune Orient Lines. | :06:50. | :06:55. | |
If it gets the nod from regulators it could be the biggest deal | :06:56. | :06:58. | |
in almost a decade in a sector struggling with slower global trade. | :06:59. | :07:01. | |
Our Asia Business correspondent Karishma Vaswani has the details. | :07:02. | :07:05. | |
This is one of Asia's easiest ports and a major player that has helped | :07:06. | :07:11. | |
Singapore turn into a global trading and shipping hub is Neptune Orient | :07:12. | :07:18. | |
Lines. It was started in 1968, originally as Singapore's national | :07:19. | :07:22. | |
shipping line. Today it is one of the world's largest. 92 vessels | :07:23. | :07:28. | |
servicing many ports around the world. But over the last few years | :07:29. | :07:33. | |
it has racked up $4 billion in debt. No surprise then that Neptune Orient | :07:34. | :07:40. | |
Lines has been looking for a suitor. For NOL -- it require significant | :07:41. | :07:51. | |
investment. We need to improve Alp competitive position and stay | :07:52. | :07:57. | |
competitive in this industry. NOL must be willing to take the capital | :07:58. | :08:01. | |
investment to stay in the game. That's despite the weak conditions | :08:02. | :08:07. | |
in the industry. We operate in a very fragmented world, with many | :08:08. | :08:10. | |
players. The industry as a whole suffers from volatile freight | :08:11. | :08:18. | |
trades. In this context, and as mentioned, we believe that scale is | :08:19. | :08:21. | |
more critical than ever to ensure profitable growth. Now, this deal | :08:22. | :08:26. | |
could be one of the biggest ever in the global shipping industry. | :08:27. | :08:31. | |
Companies have been under pressure to cut costs, sell their assets and | :08:32. | :08:36. | |
merge. And with predictions that next year's economic output will be | :08:37. | :08:39. | |
even worse than next year, expect more consolidation to come. | :08:40. | :08:44. | |
Japan has released revised growth numbers for the third quarter | :08:45. | :08:48. | |
of the year, showing the economy grew by 0.3% from July to September. | :08:49. | :08:56. | |
It thought it contracted, so this is a big relief for the Japanese | :08:57. | :09:04. | |
president Shinzo Abe, as we thought Japan was in recession in that time. | :09:05. | :09:06. | |
Rico Hizon joins me now from Singapore. | :09:07. | :09:10. | |
Point three of a %, but it makes all the difference! -- zero .3%. A big | :09:11. | :09:20. | |
relief, dodging a recession. With the number, it offers a glimmer of | :09:21. | :09:25. | |
hope for policymakers struggling to end years of stagnation. Capital | :09:26. | :09:30. | |
expenditure was the key contributor to this upgrade, which is a welcome | :09:31. | :09:38. | |
sign for the government, the pressuring of companies to invest | :09:39. | :09:41. | |
more and put the economy on a sustained recovery path. The data | :09:42. | :09:49. | |
may ease some pessimism over the outlook and allow the central bank | :09:50. | :09:55. | |
to hold off on additional 80 is in measures, even as inflation slides | :09:56. | :09:59. | |
further away from the 2% target. But there are sceptics who say don't | :10:00. | :10:05. | |
read too much into this. The upgrade was amplified by a slower than | :10:06. | :10:09. | |
expected fall in inventory, which works to push up growth, but | :10:10. | :10:13. | |
suggests that companies are struggling to sell goods in the face | :10:14. | :10:18. | |
of weak demand. Of course, apart from this GDP revision, some good | :10:19. | :10:22. | |
news, especially from the trade front. Japan posted a surplus for | :10:23. | :10:27. | |
the 16th straight month in October, as the trade balance swung to a | :10:28. | :10:31. | |
surplus, which now stands at about $12 billion US. This might be the | :10:32. | :10:35. | |
start of something good for the Japanese economy. Let's hope so! | :10:36. | :10:39. | |
Thank you. These are the markets. | :10:40. | :10:42. | |
Oil is still languishing at lows last seen in 2009. Asian stocks | :10:43. | :10:50. | |
across the board are lower because of the China trade data. See you | :10:51. | :10:53. | |
soon. Farmers need to dramatically cut | :10:54. | :11:03. | |
the amount of antibiotics they use on their animals, because | :11:04. | :11:07. | |
of the threat to human health, | :11:08. | :11:11. |