Browse content similar to 16/12/2015. Check below for episodes and series from the same categories and more!
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Global markets are braced for the most pivotal moment | :00:00. | :00:20. | |
to raise interest rates for the first time in nearly a decade. | :00:21. | :00:28. | |
China will make its case for more control at the World | :00:29. | :00:31. | |
Internet Forum, home to the largest number of internet users and some of | :00:32. | :00:34. | |
Prada shares are sliding in Hong Kong as the company sees | :00:35. | :00:54. | |
Our team in the region will have the details. | :00:55. | :00:58. | |
Have we arrived at the day the US Federal Reserve will begin to | :00:59. | :01:03. | |
If so, it would be the first time in nearly ten years. | :01:04. | :01:12. | |
In fact, it's such a long time since the US central bank has been | :01:13. | :01:15. | |
in "tightening" mode that some stockbrokers have had to provide | :01:16. | :01:18. | |
special training to younger staff members on how to react. | :01:19. | :01:27. | |
Since December of 2008 the main cost of borrowing | :01:28. | :01:29. | |
in the world's biggest economy, has been held at a historic low of | :01:30. | :01:39. | |
America's car industry is back. Rock bottom interest rates breathed life | :01:40. | :01:47. | |
back into it. Dealerships like this in New Jersey once again buzzing. | :01:48. | :01:52. | |
The economy is coming back, stabilising. The fear factor is not | :01:53. | :01:59. | |
there. Consequently, they are hitting dealerships and getting what | :02:00. | :02:04. | |
they want. Enjoying life. With the US economy purring back to life, | :02:05. | :02:10. | |
rather than roaring, the central bank is poised to raise rates from | :02:11. | :02:18. | |
near zero. I will make it work. We are always trying to find a good | :02:19. | :02:25. | |
deal. But will hire rates, which strengthens the US dollar, stamp out | :02:26. | :02:30. | |
America's export revival? This man makes leather notebooks and wallets. | :02:31. | :02:39. | |
In Canada we've lost $125,000 in revenue this year. Simply because | :02:40. | :02:44. | |
department stores we sell to cannot afford the product at those costs. | :02:45. | :02:51. | |
Those inside here believe the economy is strong enough to survive | :02:52. | :02:55. | |
a rate hike. Good news and not just in America. The US consumer is the | :02:56. | :03:01. | |
Atlas to the rest of the world. It doesn't have the grace of credit it | :03:02. | :03:08. | |
did but the world is looking for it to export their goods to the US and | :03:09. | :03:13. | |
have asked by a lot of goods, which will happen in 2016 -- buy. The Fed | :03:14. | :03:19. | |
has kept rates near zero for seven years. A measure of how bad the | :03:20. | :03:23. | |
crisis was and how long the recovery has taken. But now here we are, the | :03:24. | :03:28. | |
widely expected interest rate rise won't necessarily be followed by any | :03:29. | :03:32. | |
more in the near future but it is a validation of America's return to | :03:33. | :03:36. | |
some kind of prosperity. With me is Justin Urquhart Stewart, | :03:37. | :03:41. | |
Director Seven Investment Management -- With me is Justin Urquhart | :03:42. | :03:51. | |
Stewart, Director of Seven Your thoughts. We were led up the | :03:52. | :03:58. | |
garden path by Janet Yellen and the Fed. This time everything has been | :03:59. | :04:04. | |
fed towards us. What will happen, this is good news. It shows the US | :04:05. | :04:11. | |
economy has recovered rather well. It is a key moment. You are coming | :04:12. | :04:16. | |
off the stimulus that was put in years ago after the financial | :04:17. | :04:19. | |
crisis. We are strong enough it would seem to go through it. Jobs | :04:20. | :04:24. | |
are good. Companies are much stronger. Deflation isn't there. | :04:25. | :04:27. | |
That is a concern. What about the impact elsewhere? What fireworks | :04:28. | :04:34. | |
will this cause? It will show we are in a state of further recovery. We | :04:35. | :04:41. | |
are onto the next stage. In the eurozone, well they have a lot more | :04:42. | :04:46. | |
QE to go. They have a weak currency as well against the dollar | :04:47. | :04:49. | |
especially. Things are looking positive for them. That shouldn't | :04:50. | :04:55. | |
have much impact. The UK does not mean interest rates will go up. | :04:56. | :04:59. | |
Interest rates are far more directly impacted. We have short term | :05:00. | :05:05. | |
mortgages and much more interest related rates. Whereas in the United | :05:06. | :05:08. | |
States people have 30 year mortgages. Briefly, concern for | :05:09. | :05:13. | |
emerging markets. Are you concerned about India, Rozelle? That has been | :05:14. | :05:19. | |
to do with the dollar which has gone up in price already and the weak | :05:20. | :05:23. | |
emerging market currencies have already occurred and it is already | :05:24. | :05:29. | |
fair -- Brazil. I think it is a positive sign. Thank you. -- already | :05:30. | :05:36. | |
there. Justin Welby back with us to talk more on the papers in a couple | :05:37. | :05:38. | |
minutes. -- Justin will be back. China has the world's largest number | :05:39. | :05:40. | |
of internet users and is home to some of | :05:41. | :05:43. | |
the world's biggest internet firms, but it's also home to the Great | :05:44. | :05:45. | |
Firewall, which hides away many Now China will make its case for | :05:46. | :05:48. | |
more control at the World Internet The three day summit | :05:49. | :05:55. | |
in the eastern city of Wuzhen will focus on major development | :05:56. | :06:00. | |
strategies, with foreign tech firms eager to get a slice of the massive | :06:01. | :06:02. | |
but tightly managed market. John Sudworth is at the | :06:03. | :06:05. | |
World Internet Conference for us. President Xi Jinping did the opening | :06:06. | :06:21. | |
speech, as it were. What did he say? Well, Sally, as you can see, Wuzhen | :06:22. | :06:28. | |
is a picturesque place. This is a conference with a laudable slogan, | :06:29. | :06:34. | |
and interconnected world governed by all. It is the word governance that | :06:35. | :06:41. | |
was central to she jinking's speech. He mentioned control and security | :06:42. | :06:46. | |
over and over again -- Xi Jinping. The concern I think four observers | :06:47. | :06:51. | |
is that China is using it to try to build an alternative view of the | :06:52. | :06:56. | |
Internet. The message is clear, as you say, 650 million users, it feels | :06:57. | :07:03. | |
Internet. The message is clear, as you say, 650 million users, it its | :07:04. | :07:07. | |
time has come. It wants to push cyber sovereignty, that individual | :07:08. | :07:10. | |
nations should decide what controls and what censorship they want to put | :07:11. | :07:16. | |
in place. And essentially, if and other nations want to join in and | :07:17. | :07:20. | |
profit from that, they have to abide by those rules. How is that message | :07:21. | :07:28. | |
being received? As we know, many Western companies have had a tough | :07:29. | :07:34. | |
time in China. Yes, well, it is interesting. There are | :07:35. | :07:36. | |
representatives of foreign tech firms here. We have tried to speak | :07:37. | :07:43. | |
to some. Unsurprisingly, perhaps, they are slightly bashful. There has | :07:44. | :07:47. | |
been a lot of focus on this conference, the campaign group | :07:48. | :07:51. | |
borders without borders -- Reporters Without Borders has told those to | :07:52. | :07:59. | |
boycott it. It gives the conference legitimacy. In some ways it becomes | :08:00. | :08:04. | |
compliant with Chinese efforts to censor the Internet. Those companies | :08:05. | :08:10. | |
are perhaps keeping a low profile. But the list of foreign heads of | :08:11. | :08:14. | |
government, senior political leaders who are here is a little telling. | :08:15. | :08:20. | |
The countries limited to just five, Russia, Pakistani, Kazakhstan, | :08:21. | :08:25. | |
Kurdistan and Katich is done, none of whom would be at the top of any | :08:26. | :08:27. | |
list of Internet freedom. Weak sales in Asia have sent | :08:28. | :08:40. | |
profits at the Italian luxury This is something we've talked a lot | :08:41. | :08:55. | |
about, the fact that luxury goods companies are struggling in your | :08:56. | :09:02. | |
part of the world. Indeed. Profits were down sharply almost 40% of the | :09:03. | :09:08. | |
quarter. That is sending Prada shares down to their record low | :09:09. | :09:15. | |
levels as much as 6%, down 40% from the IPO price in Hong Kong. As you | :09:16. | :09:21. | |
have mentioned this is because of the slowing growth in China that we | :09:22. | :09:25. | |
talk about and not just affecting Prada but other luxury brands. The | :09:26. | :09:31. | |
crackdown on corruption is also taking its toll. It has also been | :09:32. | :09:36. | |
affected by the strength of the Hong Kong dollar, which of course is | :09:37. | :09:41. | |
pegged to the US dollar. Hong Kong has always been the destination for | :09:42. | :09:45. | |
the mainland shoppers. The strong dollar has meant it has become | :09:46. | :09:49. | |
rather expensive and they are choosing to go elsewhere. That has | :09:50. | :09:52. | |
definitely been affecting them. Thank you. Let's quickly look at the | :09:53. | :09:59. | |
financial markets in Asia as we run up to that decision. That is with | :10:00. | :10:05. | |
regard to the Fed. A bounce back for Asian markets getting ready for the | :10:06. | :10:09. | |
announcement later in Washington. That is all from me for now. I will | :10:10. | :10:11. | |
see you soon. Doctors and nurses are being urged | :10:12. | :10:20. | |
to treat dying patients as individuals rather than making | :10:21. | :10:22. | |
"snap decisions" about their care. | :10:23. | :10:26. |