:00:00. > :00:00.Now for the latest financial news with Sally
:00:00. > :00:20.It would be the first rate rise in the US for almost a decade, global
:00:21. > :00:22.markets are bracing themselves for this weeks decision from the Fed.
:00:23. > :00:28.We look at the knock-on effects to emerging economies like India.
:00:29. > :00:31.And some good news at last from China, November proves to be
:00:32. > :00:39.a stronger month on the factory floor and the high street.
:00:40. > :00:46.Also in the programme: The new film, Star Wars: The Force Awakens,
:00:47. > :01:02.We prepare you for a fresh deluge of merchandising,
:01:03. > :01:05.Share markets in Asia are sliding as anxiety about this weeks
:01:06. > :01:08.interest rate decision from the US Federal Reserve sets in.
:01:09. > :01:11.The central bank let by Janet Yellen is expected to raise the cost
:01:12. > :01:13.of borrowing for the first time since the financial crisis.
:01:14. > :01:16.If it goes ahead it will be a sign of growing confidence
:01:17. > :01:19.in the US recovery, and while any rate increase will be small,
:01:20. > :01:23.and subsequent rises are likely to be gradual too, it will still have
:01:24. > :01:24.knock-on effects, particularly in the emerging economies.
:01:25. > :02:01.Here on the Bombay Stock exchange in Mumbai, the main shares index has
:02:02. > :02:03.fallen in 2015. If the US a starts offering better returns for rates,
:02:04. > :02:07.there is a better chance investors will decide to move more of their
:02:08. > :02:14.money there and doubted Indian businesses that are generally seen
:02:15. > :02:17.as riskier. It is not just Indian shares that are falling. The value
:02:18. > :02:25.of the Indian currency is that it is lowest against -- is at its lowest
:02:26. > :02:31.against the dollar in many years. The depreciating rupee means that
:02:32. > :02:36.many products are becoming more costly so expect to see imported
:02:37. > :02:44.items from mobile phones to food to computers and goals, all costing
:02:45. > :02:50.more. India's biggest import is oil and they have done well out of the
:02:51. > :02:55.dramatic fall in the last few months. But it is priced in dollars
:02:56. > :03:00.and if people have to pay more for its, it could get passed on through
:03:01. > :03:04.higher petrol and diesel prices. So what does this mean for business?
:03:05. > :03:13.Rising fuel prices mean it will cost more to transport goods. Raw
:03:14. > :03:17.materials like this will become more expensive, squeezing profit margins
:03:18. > :03:22.and another problem is that many Indian companies have high levels of
:03:23. > :03:27.dollar debt. So rising US rates will increase their costs, making them
:03:28. > :03:40.less profitable. But it is not all bad news. Sales from abroad will go
:03:41. > :03:43.up in terms of the currency. How India's response will be decided
:03:44. > :03:50.here the country's Central bank which is already cut interest rates
:03:51. > :03:55.this year. More cuts to encourage growth but the governor of the Bank
:03:56. > :04:00.is going to be hesitant to cut rates further as it will make it even less
:04:01. > :04:05.attractive for foreign investors. So when the US rate rise comes, it
:04:06. > :04:10.won't be a surprise but the full impact on India is not fully
:04:11. > :04:13.understood. And you can be sure that throughout the week, we'll have much
:04:14. > :04:15.more on that decision and the impact it will have around the world.
:04:16. > :04:17.Now onto the good news coming from China.
:04:18. > :04:20.The latest economic data shows November was a better than expected
:04:21. > :04:23.month for factories and retail sales were also robust.
:04:24. > :04:25.Rico Hizon is in Singapore, so Rico perhaps all
:04:26. > :04:40.the stimulus measures introduced by the Chinese government are working?
:04:41. > :04:49.That's right. We have had a flurry of stimulus initiatives over the
:04:50. > :04:53.past year and a half. Six interest rate cuts since late 2014 and
:04:54. > :05:00.lowering bank reserve retirements may have indeed put a floor under
:05:01. > :05:05.this fragile mainland economy. That there is always the flipside, there
:05:06. > :05:08.are cynics who still believe that the more policy steps are needed to
:05:09. > :05:15.whether all of these nagging headwinds at home and overseas,
:05:16. > :05:18.particularly with the cooling property market, risk from high
:05:19. > :05:25.domestic debt levels and weak global demand as financial markets brace
:05:26. > :05:29.for interest rate rises by the US central bank. Factory output
:05:30. > :05:37.expanded by an annual 6.2%, which is higher than expected and one of the
:05:38. > :05:41.main drivers of the economy was higher than forecast. Retail sales
:05:42. > :05:46.also gained, their strongest expansion this year and analysts say
:05:47. > :05:50.that while a low base could be driving this economic growth, it
:05:51. > :05:53.could be a sign that China's economic data is showing signs of
:05:54. > :05:58.stable as they should, albeit at a low level. Very welcome news. Thank
:05:59. > :05:59.you. Star Wars,
:06:00. > :06:01.the movie that launched the whole blockbuster franchise model back
:06:02. > :06:04.in the 70s, holds its latest The Force Awakens is
:06:05. > :06:08.the seventh film to appear, and the first since Disney bought
:06:09. > :06:10.the franchise back in 2012. Prepare for a fresh deluge
:06:11. > :06:12.of merchandising, promotional tie-ins and of course the actual
:06:13. > :06:45.movie, all timed to coincide with High energy and nostalgia for the
:06:46. > :06:49.original trilogy. The trailers offer few clues to the actual plot but
:06:50. > :06:53.fans are promised the same look and feel of George Lucas' below the
:06:54. > :07:05.first films but this is not the same franchise. It has been awakened by
:07:06. > :07:07.the Disney empire. This adds these icons to their endless revenues
:07:08. > :07:13.dreamed. The future of the franchise is limitless. I see no reason that
:07:14. > :07:19.Star Wars can't continue in the hands of gifted storytellers. A huge
:07:20. > :07:23.factor in the franchise's success is its broad appeal across three
:07:24. > :07:30.generations. A retailers dream which Disney has been more than happy to
:07:31. > :07:33.fulfil. We will be doubling space in our stores for Star Wars with many
:07:34. > :07:38.new products allowing collectors and children alike the ability to get
:07:39. > :07:42.into this franchise again. Merchandising has driven most of the
:07:43. > :07:46.revenue for the franchise and it is expected to go up 5 billion within a
:07:47. > :07:52.year of the release of this film. There are toys, thousands of novelty
:07:53. > :07:53.items and even video games. Star Wars Battlefront is expected to:
:07:54. > :08:05.$700 billion million and there is even talk of a
:08:06. > :08:09.theme park. Disney has made fewer of its own movies, allowing their
:08:10. > :08:13.subsidiaries to make the blockbusters and is now focused on
:08:14. > :08:16.growing its brand and marketing it. It has become a self-sustaining
:08:17. > :08:24.business that could outlive its first fans, from once upon a time
:08:25. > :08:26.and far, far away. In other news: The South African
:08:27. > :08:28.president, Jacob Zuma, has appointed his third finance
:08:29. > :08:31.minister in a week. The new man is Pravin Gordhan,
:08:32. > :08:33.who has served The decision follows sharp falls on
:08:34. > :08:37.financial markets in response to the unexplained sacking on Wednesday of
:08:38. > :08:40.Nhlanhla Nene, and his replacement Business confidence
:08:41. > :08:47.in Japan held steady in December The Bank of Japan's closely-watched
:08:48. > :08:51.Tankan Index shows sentiment at That means their confidence hasn't
:08:52. > :09:02.changed for the past three months. Twitter has sent warnings to
:09:03. > :09:04.a number of users that their accounts may have been hacked
:09:05. > :09:07.by what they describe It is the first time that
:09:08. > :09:10.the social media company has issued The number of accounts affected
:09:11. > :09:14.by the suspected hack is unclear. The Chinese and North Korean
:09:15. > :09:33.governments are thought to be Let's have a look at the markets.
:09:34. > :09:41.Anxiety is setting in about that Fed decision which will come through on
:09:42. > :09:44.Wednesday. Japan is down, and elsewhere losses right across the
:09:45. > :09:51.board despite the good news that we had from China. This is the close on
:09:52. > :10:01.Wall Street on Friday which does not bode well for Monday in Asia.
:10:02. > :10:04.The annual tax return could soon be a thing of the past
:10:05. > :10:08.as HMRC launch a new way to work out how much you owe.