:00:00. > :00:00.There are reports that the gunman is holding a number of hostages.
:00:00. > :00:00.Those are the latest headlines from BBC World News.
:00:00. > :00:16.Now for the latest business news with Sally.
:00:17. > :00:18.China's "difficult battle" - the world's number two economy
:00:19. > :00:21.lowers its growth target for the year and plans to overhaul bloated
:00:22. > :00:27.Plus, weaning Indians off cheaper fuel - the government
:00:28. > :00:38.tries to strip fuel subsidies from those that earn more.
:00:39. > :00:45.I'm Sally Bundock - also in the programme another hiccup for the
:00:46. > :00:48.nuclear ambitions at Hinkley Point - its reported the Finance Director
:00:49. > :01:00.of EDF has quit because of concerns over how much it will cost.
:01:01. > :01:05.We will have the details out in just a moment but let's start with China.
:01:06. > :01:07.China faces "difficult battle" ahead, the words of
:01:08. > :01:09.Premier Li Keqiang at the nation's annual parliamentary meeting which
:01:10. > :01:12.began on Saturday, as he lowered China's growth target for the year.
:01:13. > :01:14.Beijing faces tough questions over its stewardship of
:01:15. > :01:22.the world's second largest economy and over its financial markets.
:01:23. > :01:25.The new growth target for 2016 is between 6.5% and 7%.
:01:26. > :01:28.The International Monetary Fund expects just 6.3% growth this year.
:01:29. > :01:31.But the country's chief economic planner said China will not
:01:32. > :01:36.experience a hard landing, despite cutting growth targets.
:01:37. > :01:38.China's five-year plan included targets on energy consumption,
:01:39. > :01:43.job creation and inflation, but analysts said details were scant.
:01:44. > :01:46.And there was a promise to overhaul the bloated and inefficient state
:01:47. > :01:49.sector over the next 20 years, by bringing in the private sector
:01:50. > :01:51.to help run state-owned firms that dominate industries across banking,
:01:52. > :02:06.Yang Zhao is Chief China Economist at Nomura.
:02:07. > :02:15.Thank you for being on the programme. So, there is a lot of
:02:16. > :02:20.information, but the target remains for them to try to hit the growth
:02:21. > :02:27.number of 7%. And yet the one thing that is so difficult to control is
:02:28. > :02:32.that, isn't it? Yes, I think they would target this lower than last
:02:33. > :02:39.year, however, it is still quite challenging. The government has
:02:40. > :02:44.given themselves more room with monetary and fiscal policy easing.
:02:45. > :02:52.Let's talk about 3% of fiscal deficit as GDP, and 13% of M2 growth
:02:53. > :02:57.is not an upside from last year's levels. If we look at last year's
:02:58. > :03:01.economic growth, even with extra contribution from financial sector,
:03:02. > :03:08.it is still moderate. This year I would think the equity market won't
:03:09. > :03:11.have another huge bubble again, so those contributions from the
:03:12. > :03:18.financial market were gone. If we look at the real part of the
:03:19. > :03:21.economy, driven by real estate and manufacturing sectors, they continue
:03:22. > :03:26.to slow down. I would say that economic growth will likely continue
:03:27. > :03:30.to drop. A very challenging target for this year. A very challenging
:03:31. > :03:34.target for this year and the years ahead. Talk us through your thoughts
:03:35. > :03:40.on some of the other things they have mentioned so far, ringing in
:03:41. > :03:45.the private sector to help run state-owned businesses, also more
:03:46. > :03:54.changes within other areas like energy, for example -- bringing. Are
:03:55. > :04:02.those discussions encouraging in terms of other plans in the years
:04:03. > :04:08.ahead? Relatively speaking, it is a little bit more encouraging, because
:04:09. > :04:16.they have to make some change. The SOE's are not dealing with zombie
:04:17. > :04:20.companies, which are losing money right now, running in huge losses
:04:21. > :04:26.right now, so they have to introduce some materialised measures to truly
:04:27. > :04:35.reduce the extra capacity in those areas. I would expect that more MNA
:04:36. > :04:42.will happen in the areas of some zombie companies, which will have to
:04:43. > :04:46.go bankrupt, and be removed from the industry to improve the supply side
:04:47. > :04:49.a little bit. On that front, I would say a little bit encouraging
:04:50. > :04:55.compared to the year before last year and last year. Thank you so
:04:56. > :04:58.much for your time. There is so much more to discuss but unfortunately
:04:59. > :05:05.our time is much limited. There is much more information on the website
:05:06. > :05:09.and what it means for the world's second-biggest economy, so take a
:05:10. > :05:11.look if you have time later. We will discuss it more when we look at the
:05:12. > :05:14.papers. Let's move on. Now over to another economic
:05:15. > :05:17.might - India, where the government is trying to coax higher earners
:05:18. > :05:20.to give up gas subsidies. Millions of Indian families rely
:05:21. > :05:23.on this support to make their But plans to take it away
:05:24. > :05:27.from those who can afford it, are proving tricky, as
:05:28. > :05:36.Sameer Hashmi reports from Mumbai. These cylinders contained the gas
:05:37. > :05:43.that tens of millions of Indian households use for cooking. A
:05:44. > :05:46.canister in Mumbai costs around $10. Until last year, this woman would
:05:47. > :05:51.receive about $3 back from the government for every time she bought
:05:52. > :05:57.a cylinder. That money was a subsidy, making the gas cheaper.
:05:58. > :06:01.Now, the rules have changed. Any household where tax records show
:06:02. > :06:07.someone earns around $15,000 a year or more must now pay the full market
:06:08. > :06:12.right, and so for this family, who falls into that bracket, the subsidy
:06:13. > :06:16.has been withdrawn, and she is not happy. The cost of living in Mumbai
:06:17. > :06:22.is very high, so the difficulties we are going through to meet our daily
:06:23. > :06:28.needs is different in other areas. So, this policy which has been made
:06:29. > :06:34.uniform for all will be a little bit difficult for us. Up to $44 million
:06:35. > :06:39.a year could be saved by the scheme and the government says the money
:06:40. > :06:42.could be used to help poorer households by cooking gas, instead
:06:43. > :06:50.of kerosene, coal, would and cow dung. So, not everyone who has to
:06:51. > :06:54.pay more resented -- wood. When you talk about the small nuclear
:06:55. > :07:00.families, they hardly use many cylinders each year, which makes no
:07:01. > :07:04.difference. In any case, we can support these low income families,
:07:05. > :07:09.why not? This is a way of doing as certain kind of charity.
:07:10. > :07:12.why not? This is a way of doing as certain kind of For the last year
:07:13. > :07:17.the government has tried to get consumers to voluntarily give up
:07:18. > :07:21.this cooking gas subsidy. Perhaps, unsurprisingly, few came forward,
:07:22. > :07:24.which is why the state is trying to make subsidy is more closely linked
:07:25. > :07:30.with incomes. The problem is identification. That is a challenge
:07:31. > :07:34.the government has. Most of the time when you are declaring your income
:07:35. > :07:39.it is a self declaration. We don't have many taxpayers in the country.
:07:40. > :07:44.Most of the time if you want to find out, it is a case of us saying
:07:45. > :07:50.whether we are poor or rich. That will be the major issue when we try
:07:51. > :07:54.to do these subsidies on income. Without accurate income data it is
:07:55. > :07:57.almost impossible to work out who should get the benefit, and that
:07:58. > :07:58.means the thorny issue of subsidies remains a tricky one to grapple
:07:59. > :08:01.with. Eurozone Finance ministers hold
:08:02. > :08:05.talks on economic reforms for Greece But there's mounting concern that
:08:06. > :08:08.Greece's third bailout, worth 86 The EU and the
:08:09. > :08:13.International Monetary Fund are at loggerheads over the reform measures
:08:14. > :08:16.Athens must adopt for all parties to The Finance Director of the French
:08:17. > :08:23.energy giant, EDF, is reported to have resigned in a dispute over its
:08:24. > :08:27.plans to build two nuclear reactors It's thought Thomas Piquemal was
:08:28. > :08:30.concerned the 18 billion pound project could put
:08:31. > :08:43.the company's future in jeopardy. To Asia now, where Sharp shares
:08:44. > :08:50.jumped more than 7% as investors expect Taiwan's Foxconn to close a
:08:51. > :08:53.deal this week to buy Japan's Sharp. Sharanjit Leyl is in Singapore
:08:54. > :08:58.for us. It is nice to see you. It is thought
:08:59. > :09:07.that the Foxconn deal might be side and delivered this week. That's what
:09:08. > :09:11.thought, Sally. Indeed, those shares are extending on Friday's gains with
:09:12. > :09:15.more speculation that Taiwan's Foxconn will buy a majority stake in
:09:16. > :09:21.Sharp with sources saying the talks are on the right track and that
:09:22. > :09:27.Foxconn's founder is reportedly in Bangkok taking part in a meeting
:09:28. > :09:33.sponsored by Sharp. This comes after the last minute hitch over Sharp's
:09:34. > :09:37.liabilities caused delays, when Foxconn suspended the deal at the
:09:38. > :09:44.last minute citing this material information. The announcement came
:09:45. > :09:50.after Sharp's board voted in favour of Foxconn's offer estimated at
:09:51. > :09:54.almost $6 billion. Well, according to one source, discussions are set
:09:55. > :10:00.to conclude this week, as you say, with most of the due diligence
:10:01. > :10:05.already done. Thank you so much and good to see you. We will keep an eye
:10:06. > :10:10.on that story when it is confirmed, Foxconn's bailout of Sharp. Markets
:10:11. > :10:14.begin well. Look at that, the price of oil, almost $40 a barrel. It is
:10:15. > :10:19.continuing to go up. Markets are happy off the back of good news from
:10:20. > :10:23.the US on Friday about jobs. And also as well, nothing of too
:10:24. > :10:28.concerned out of the parliamentary meeting going on in Beijing. I will
:10:29. > :10:36.see you soon as we review the other stories in the papers.