23/03/2016 World Business Report

Now for the latest financial news with Sally

Stepping up security, as Brussels deals with the aftermath of a terror

attack, how much should governments spend and where should the money go?

China's new normal - with a growing middle class, is

the world's seconds largest economy ready to move on from

Welcome to World Business Report, I'm Sally Bundock.

Also in the programme, we'll have the latest twist

in the $81 million cyber theft from the Bangladesh central Bank.

But first, Brussels is coming to terms with Tuesday's attacks

at the city's airport and a metro station near European

Union buildings which killed at least 31 people and injured dozens.

The tragic events come despite European countries increasing their

counter-terrorism budgets following the Paris attacks last year.

Belgium pledged $450 million of additional spending,

aimed at improving intelligence and combating radicalisation.

France too increased funding, raising police numbers

It says it has stopped 10,000 people from entering the country

While the UK is adding almost 2,000 intelligence officers.

One of the major issues this attack raises

Our transport correspondent Richard Westcott has been looking

at how this can be done while still allowing the public to

You how EU? We are all familiar with airport security checks like these,

but critically, the Brussels bombers never went through them. There are

still large parts of airports before you get to security that are

effectively open, public places. Anybody could walk in carrying a

bag, posing as a passenger. -- hi, how are you? Some airports in the

Middle East screen passengers before they are allowed into the building.

At the former head of security at Heathrow says that can create its

own problems. You would be building up queues outside the terminal,

amassing another group of people which are perfect target for a

warmer or another shooter. Expert said the best way to stop the attack

is to know which is coming in advance, with surveillance and

tipoffs. -- experts say. With me now is Dr Florian Otto,

an expert in risk analysts Terrible events taking place this

week. Many EU countries are reviewing their security and

spending policies? In deed. Newport has shown that the reassessment of

policy that started last year, it started essentially in January after

the attacks in Paris, they had another review in November, and what

I think is important to understand from the perspective of governments,

they can set obvious things in motion, but this will not improve

the security overnight. If the UK says it will add 2000 intelligence

analysts, they will not appear overnight and start analysing

immediately. It is a long-term struggle, especially when you have

to develop new intelligence capabilities which is critical to

prevent attacks before they happen. The Belgian government has been

criticised, before and after what happened on Tuesday, about the way

their security services were working in conjunction with police? The

system wasn't working well enough? You have to say, the attacks that

took place yesterday were not the first attacks in Brussels in recent

years. There was the attack in 2014 on the Jewish Museum which left 14

people dead. I think that sent the first alarm bells for the Belgian

security services and that they were not entirely on top of the security

in the country. This was really brought to light with the November

Paris attacks, we Brussels was really the staging area for these

attacks. I think what people are realising is that for a very long

time, the Belgian security services did not invest in developing the

human intelligence that you need these days to get an idea of, has

the situation in critical neighbourhoods changed? Is there

something that is planned? These days, I think terrorists know that

electronic surveillance has been stepped up, so the human element is

really critical to understand whether something is coming. In

terms of government budgets, many European budgets are dealing with

less money to spend on anything, be it health, education or security. It

is a difficult issue to settle, in terms of where to spend the money to

prevent something like this? You cannot prevent things like this, but

to help fully plan for things like this. This is an issue for the

Belgian government, they are confronted with the problem that

they haven't invested in security for quite a long time. I think the

overall narrative of budgetary discipline has probably underpinned

this. You can see that security spending is going up in the wake of

the Paris attacks. Security is not seen the same budgetary restrictions

as other items. A lot more on this story online, we will discuss it

further later. But now, let's change gear.

The Boao Forum, loosely referred to as China's

The government and business leaders are meeting against a backdrop

China's economy grew by 6.9 percent in 2015, compared

This marks its slowest growth in a quarter of a century.

Our Asia Business Correspondent Karishma Vaswani is there.

What is the big thing there this year quiz you it is about the Asian

future, and what that holds for economies in the region. China are a

driving force of this event, it is an opportunity for the who's who in

the business and political circles, not just in China but across the

region to gather and discuss some of the issues facing the economy is in

this part of the world. It is also an opportunity for Chinese business

people and political leaders to leave the end of the brutal winter

in Beijing and enjoy the warm air. There is a distinct chill in the

act, if not in that temperature but certainly in the conversation we are

hearing. At the top of everybody's mind is just how badly will China be

hard by this new normal? And how will it transition from an economy

that has depended on manufacturing and investment into one that is

focused on services and innovation? -- hurt. What are people telling you

about the outlook for China? Are they optimistic or pessimistic about

how China is managing the transition? I think there is a

degree of uncertainty. Not many people have a firm view because they

don't know as yet. The problem with China's figure is is that, although

official figures say growth is due to come by about 7% this year, many

economists privately say that the figures are much lower in reality.

Everybody is looking to see how China will try to transition to

agree that has been dependent on manufacturing for so long, and what

will happen to the millions of workers that have been employed in

factories across the mainland. They have seen income levels rise. 200

million people pushed out of poverty, the biggest figure the

world has ever seen. They want to know what their future will mean for

them in this new tie now. Thank you. In other news: Bangladesh's central

bank is considering filing a lawsuit against the Federal Reserve Bank

in New York after cyber hackers The Bangladesh Bank has hired a US

lawyer, In February,

hackers succeeded in instructing the New York Fed to transfer money from

the Bangladesh Central Banks account Australia is to set up

a massive clean-energy innovation fund to counter its status as one

of the world's largest per capita The plan announced by the

Prime Minister Malcolm Turnbull will The aim is to ultimately reduce

Australia's carbon emissions to zero,

an immense task given the country's That's all for now, we will take a

look at the papers in a few minutes. See you