:00:00. > :00:20.Global markets are braced for the most pivotal moment
:00:21. > :00:28.to raise interest rates for the first time in nearly a decade.
:00:29. > :00:31.China will make its case for more control at the World
:00:32. > :00:34.Internet Forum, home to the largest number of internet users and some of
:00:35. > :00:54.Prada shares are sliding in Hong Kong as the company sees
:00:55. > :00:58.Our team in the region will have the details.
:00:59. > :01:03.Have we arrived at the day the US Federal Reserve will begin to
:01:04. > :01:12.If so, it would be the first time in nearly ten years.
:01:13. > :01:15.In fact, it's such a long time since the US central bank has been
:01:16. > :01:18.in "tightening" mode that some stockbrokers have had to provide
:01:19. > :01:27.special training to younger staff members on how to react.
:01:28. > :01:29.Since December of 2008 the main cost of borrowing
:01:30. > :01:39.in the world's biggest economy, has been held at a historic low of
:01:40. > :01:47.America's car industry is back. Rock bottom interest rates breathed life
:01:48. > :01:52.back into it. Dealerships like this in New Jersey once again buzzing.
:01:53. > :01:59.The economy is coming back, stabilising. The fear factor is not
:02:00. > :02:04.there. Consequently, they are hitting dealerships and getting what
:02:05. > :02:10.they want. Enjoying life. With the US economy purring back to life,
:02:11. > :02:18.rather than roaring, the central bank is poised to raise rates from
:02:19. > :02:25.near zero. I will make it work. We are always trying to find a good
:02:26. > :02:30.deal. But will hire rates, which strengthens the US dollar, stamp out
:02:31. > :02:39.America's export revival? This man makes leather notebooks and wallets.
:02:40. > :02:44.In Canada we've lost $125,000 in revenue this year. Simply because
:02:45. > :02:51.department stores we sell to cannot afford the product at those costs.
:02:52. > :02:55.Those inside here believe the economy is strong enough to survive
:02:56. > :03:01.a rate hike. Good news and not just in America. The US consumer is the
:03:02. > :03:08.Atlas to the rest of the world. It doesn't have the grace of credit it
:03:09. > :03:13.did but the world is looking for it to export their goods to the US and
:03:14. > :03:19.have asked by a lot of goods, which will happen in 2016 -- buy. The Fed
:03:20. > :03:23.has kept rates near zero for seven years. A measure of how bad the
:03:24. > :03:28.crisis was and how long the recovery has taken. But now here we are, the
:03:29. > :03:32.widely expected interest rate rise won't necessarily be followed by any
:03:33. > :03:36.more in the near future but it is a validation of America's return to
:03:37. > :03:41.some kind of prosperity. With me is Justin Urquhart Stewart,
:03:42. > :03:51.Director Seven Investment Management -- With me is Justin Urquhart
:03:52. > :03:58.Stewart, Director of Seven Your thoughts. We were led up the
:03:59. > :04:04.garden path by Janet Yellen and the Fed. This time everything has been
:04:05. > :04:11.fed towards us. What will happen, this is good news. It shows the US
:04:12. > :04:16.economy has recovered rather well. It is a key moment. You are coming
:04:17. > :04:19.off the stimulus that was put in years ago after the financial
:04:20. > :04:24.crisis. We are strong enough it would seem to go through it. Jobs
:04:25. > :04:27.are good. Companies are much stronger. Deflation isn't there.
:04:28. > :04:34.That is a concern. What about the impact elsewhere? What fireworks
:04:35. > :04:41.will this cause? It will show we are in a state of further recovery. We
:04:42. > :04:46.are onto the next stage. In the eurozone, well they have a lot more
:04:47. > :04:49.QE to go. They have a weak currency as well against the dollar
:04:50. > :04:55.especially. Things are looking positive for them. That shouldn't
:04:56. > :04:59.have much impact. The UK does not mean interest rates will go up.
:05:00. > :05:05.Interest rates are far more directly impacted. We have short term
:05:06. > :05:08.mortgages and much more interest related rates. Whereas in the United
:05:09. > :05:13.States people have 30 year mortgages. Briefly, concern for
:05:14. > :05:19.emerging markets. Are you concerned about India, Rozelle? That has been
:05:20. > :05:23.to do with the dollar which has gone up in price already and the weak
:05:24. > :05:29.emerging market currencies have already occurred and it is already
:05:30. > :05:36.fair -- Brazil. I think it is a positive sign. Thank you. -- already
:05:37. > :05:38.there. Justin Welby back with us to talk more on the papers in a couple
:05:39. > :05:40.minutes. -- Justin will be back. China has the world's largest number
:05:41. > :05:43.of internet users and is home to some of
:05:44. > :05:45.the world's biggest internet firms, but it's also home to the Great
:05:46. > :05:48.Firewall, which hides away many Now China will make its case for
:05:49. > :05:55.more control at the World Internet The three day summit
:05:56. > :06:00.in the eastern city of Wuzhen will focus on major development
:06:01. > :06:02.strategies, with foreign tech firms eager to get a slice of the massive
:06:03. > :06:05.but tightly managed market. John Sudworth is at the
:06:06. > :06:21.World Internet Conference for us. President Xi Jinping did the opening
:06:22. > :06:28.speech, as it were. What did he say? Well, Sally, as you can see, Wuzhen
:06:29. > :06:34.is a picturesque place. This is a conference with a laudable slogan,
:06:35. > :06:41.and interconnected world governed by all. It is the word governance that
:06:42. > :06:46.was central to she jinking's speech. He mentioned control and security
:06:47. > :06:51.over and over again -- Xi Jinping. The concern I think four observers
:06:52. > :06:56.is that China is using it to try to build an alternative view of the
:06:57. > :07:03.Internet. The message is clear, as you say, 650 million users, it feels
:07:04. > :07:07.Internet. The message is clear, as you say, 650 million users, it its
:07:08. > :07:10.time has come. It wants to push cyber sovereignty, that individual
:07:11. > :07:16.nations should decide what controls and what censorship they want to put
:07:17. > :07:20.in place. And essentially, if and other nations want to join in and
:07:21. > :07:28.profit from that, they have to abide by those rules. How is that message
:07:29. > :07:34.being received? As we know, many Western companies have had a tough
:07:35. > :07:36.time in China. Yes, well, it is interesting. There are
:07:37. > :07:43.representatives of foreign tech firms here. We have tried to speak
:07:44. > :07:47.to some. Unsurprisingly, perhaps, they are slightly bashful. There has
:07:48. > :07:51.been a lot of focus on this conference, the campaign group
:07:52. > :07:59.borders without borders -- Reporters Without Borders has told those to
:08:00. > :08:04.boycott it. It gives the conference legitimacy. In some ways it becomes
:08:05. > :08:10.compliant with Chinese efforts to censor the Internet. Those companies
:08:11. > :08:14.are perhaps keeping a low profile. But the list of foreign heads of
:08:15. > :08:20.government, senior political leaders who are here is a little telling.
:08:21. > :08:25.The countries limited to just five, Russia, Pakistani, Kazakhstan,
:08:26. > :08:27.Kurdistan and Katich is done, none of whom would be at the top of any
:08:28. > :08:40.list of Internet freedom. Weak sales in Asia have sent
:08:41. > :08:55.profits at the Italian luxury This is something we've talked a lot
:08:56. > :09:02.about, the fact that luxury goods companies are struggling in your
:09:03. > :09:08.part of the world. Indeed. Profits were down sharply almost 40% of the
:09:09. > :09:15.quarter. That is sending Prada shares down to their record low
:09:16. > :09:21.levels as much as 6%, down 40% from the IPO price in Hong Kong. As you
:09:22. > :09:25.have mentioned this is because of the slowing growth in China that we
:09:26. > :09:31.talk about and not just affecting Prada but other luxury brands. The
:09:32. > :09:36.crackdown on corruption is also taking its toll. It has also been
:09:37. > :09:41.affected by the strength of the Hong Kong dollar, which of course is
:09:42. > :09:45.pegged to the US dollar. Hong Kong has always been the destination for
:09:46. > :09:49.the mainland shoppers. The strong dollar has meant it has become
:09:50. > :09:52.rather expensive and they are choosing to go elsewhere. That has
:09:53. > :09:59.definitely been affecting them. Thank you. Let's quickly look at the
:10:00. > :10:05.financial markets in Asia as we run up to that decision. That is with
:10:06. > :10:09.regard to the Fed. A bounce back for Asian markets getting ready for the
:10:10. > :10:11.announcement later in Washington. That is all from me for now. I will
:10:12. > :10:20.see you soon. Doctors and nurses are being urged
:10:21. > :10:22.to treat dying patients as individuals rather than making
:10:23. > :10:26."snap decisions" about their care.