14/12/2015 World Business Report

Now for the latest financial news with Sally

It would be the first rate rise in the US for almost a decade, global

markets are bracing themselves for this weeks decision from the Fed.

We look at the knock-on effects to emerging economies like India.

And some good news at last from China, November proves to be

a stronger month on the factory floor and the high street.

Also in the programme: The new film, Star Wars: The Force Awakens,

We prepare you for a fresh deluge of merchandising,

Share markets in Asia are sliding as anxiety about this weeks

interest rate decision from the US Federal Reserve sets in.

The central bank let by Janet Yellen is expected to raise the cost

of borrowing for the first time since the financial crisis.

If it goes ahead it will be a sign of growing confidence

in the US recovery, and while any rate increase will be small,

and subsequent rises are likely to be gradual too, it will still have

knock-on effects, particularly in the emerging economies.

Here on the Bombay Stock exchange in Mumbai, the main shares index has

fallen in 2015. If the US a starts offering better returns for rates,

there is a better chance investors will decide to move more of their

money there and doubted Indian businesses that are generally seen

as riskier. It is not just Indian shares that are falling. The value

of the Indian currency is that it is lowest against -- is at its lowest

against the dollar in many years. The depreciating rupee means that

many products are becoming more costly so expect to see imported

items from mobile phones to food to computers and goals, all costing

more. India's biggest import is oil and they have done well out of the

dramatic fall in the last few months. But it is priced in dollars

and if people have to pay more for its, it could get passed on through

higher petrol and diesel prices. So what does this mean for business?

Rising fuel prices mean it will cost more to transport goods. Raw

materials like this will become more expensive, squeezing profit margins

and another problem is that many Indian companies have high levels of

dollar debt. So rising US rates will increase their costs, making them

less profitable. But it is not all bad news. Sales from abroad will go

up in terms of the currency. How India's response will be decided

here the country's Central bank which is already cut interest rates

this year. More cuts to encourage growth but the governor of the Bank

is going to be hesitant to cut rates further as it will make it even less

attractive for foreign investors. So when the US rate rise comes, it

won't be a surprise but the full impact on India is not fully

understood. And you can be sure that throughout the week, we'll have much

more on that decision and the impact it will have around the world.

Now onto the good news coming from China.

The latest economic data shows November was a better than expected

month for factories and retail sales were also robust.

Rico Hizon is in Singapore, so Rico perhaps all

the stimulus measures introduced by the Chinese government are working?

That's right. We have had a flurry of stimulus initiatives over the

past year and a half. Six interest rate cuts since late 2014 and

lowering bank reserve retirements may have indeed put a floor under

this fragile mainland economy. That there is always the flipside, there

are cynics who still believe that the more policy steps are needed to

whether all of these nagging headwinds at home and overseas,

particularly with the cooling property market, risk from high

domestic debt levels and weak global demand as financial markets brace

for interest rate rises by the US central bank. Factory output

expanded by an annual 6.2%, which is higher than expected and one of the

main drivers of the economy was higher than forecast. Retail sales

also gained, their strongest expansion this year and analysts say

that while a low base could be driving this economic growth, it

could be a sign that China's economic data is showing signs of

stable as they should, albeit at a low level. Very welcome news. Thank

you. Star Wars,

the movie that launched the whole blockbuster franchise model back

in the 70s, holds its latest The Force Awakens is

the seventh film to appear, and the first since Disney bought

the franchise back in 2012. Prepare for a fresh deluge

of merchandising, promotional tie-ins and of course the actual

movie, all timed to coincide with High energy and nostalgia for the

original trilogy. The trailers offer few clues to the actual plot but

fans are promised the same look and feel of George Lucas' below the

first films but this is not the same franchise. It has been awakened by

the Disney empire. This adds these icons to their endless revenues

dreamed. The future of the franchise is limitless. I see no reason that

Star Wars can't continue in the hands of gifted storytellers. A huge

factor in the franchise's success is its broad appeal across three

generations. A retailers dream which Disney has been more than happy to

fulfil. We will be doubling space in our stores for Star Wars with many

new products allowing collectors and children alike the ability to get

into this franchise again. Merchandising has driven most of the

revenue for the franchise and it is expected to go up 5 billion within a

year of the release of this film. There are toys, thousands of novelty

items and even video games. Star Wars Battlefront is expected to:

$700 billion million and there is even talk of a

theme park. Disney has made fewer of its own movies, allowing their

subsidiaries to make the blockbusters and is now focused on

growing its brand and marketing it. It has become a self-sustaining

business that could outlive its first fans, from once upon a time

and far, far away. In other news: The South African

president, Jacob Zuma, has appointed his third finance

minister in a week. The new man is Pravin Gordhan,

who has served The decision follows sharp falls on

financial markets in response to the unexplained sacking on Wednesday of

Nhlanhla Nene, and his replacement Business confidence

in Japan held steady in December The Bank of Japan's closely-watched

Tankan Index shows sentiment at That means their confidence hasn't

changed for the past three months. Twitter has sent warnings to

a number of users that their accounts may have been hacked

by what they describe It is the first time that

the social media company has issued The number of accounts affected

by the suspected hack is unclear. The Chinese and North Korean

governments are thought to be Let's have a look at the markets.

Anxiety is setting in about that Fed decision which will come through on

Wednesday. Japan is down, and elsewhere losses right across the

board despite the good news that we had from China. This is the close on

Wall Street on Friday which does not bode well for Monday in Asia.

The annual tax return could soon be a thing of the past

as HMRC launch a new way to work out how much you owe.