Browse content similar to 05/04/2016. Check below for episodes and series from the same categories and more!
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Now for the latest financial news and World Business Report. | :00:00. | :00:16. | |
Leaked documents from Panama reveal that close relatives of some of | :00:17. | :00:19. | |
China's top leaders have links to offshore companies in tax havens. | :00:20. | :00:25. | |
Yes, the world is now spending $1.7 trillion a year on this stuff - | :00:26. | :00:32. | |
sending the share price for the makers to 4-year highs. | :00:33. | :00:34. | |
We'll tell you who the big spenders are. | :00:35. | :00:45. | |
Michelle tells me I have nine minutes! I will give you an exciting | :00:46. | :01:02. | |
look into the world of the business. interest rates - do they fuel | :01:03. | :01:06. | |
housing bubbles? Tax authorities around | :01:07. | :01:10. | |
the globe have promised action following the leak of millions | :01:11. | :01:12. | |
of documents from the Panamanian They reveal how the world's rich | :01:13. | :01:14. | |
and powerful hide their wealth They also show how leading regime | :01:15. | :01:19. | |
figures in Syria and north Korea were able to keep their companies | :01:20. | :01:26. | |
trading, despite being blacklisted The papers make uncomfortable | :01:27. | :01:30. | |
reading for a number of current Close relatives of senior Chinese | :01:31. | :01:38. | |
political leaders - including the President, Xi Jinping | :01:39. | :01:43. | |
- are among those found to have Our correspondent Celia | :01:44. | :01:46. | |
Hatton has more details. Ask the wrong question, | :01:47. | :01:55. | |
this is what happens. Chinese citizens who want | :01:56. | :01:58. | |
their Communist leaders to list their assets, | :01:59. | :02:01. | |
are rounded up and put in prison. This is the group of men who rule | :02:02. | :02:06. | |
China and they refused to discuss their wealth but they say they want | :02:07. | :02:10. | |
to eliminate corruption Punishing 300,000 officials | :02:11. | :02:12. | |
last year alone. That makes today's news very | :02:13. | :02:24. | |
uncomfortable for Chinese President The relatives of seven current | :02:25. | :02:26. | |
and former Chinese leaders were found to have links to offshore | :02:27. | :02:30. | |
companies, all in known tax havens. Of the seven named, these three are | :02:31. | :02:33. | |
the most important: President Xi Jinping and two other top leaders - | :02:34. | :02:37. | |
Zhang Gaoli and Liu Yunshan. All three men have in-laws who are | :02:38. | :02:43. | |
listed as directories or It is not illegal for Chinese | :02:44. | :02:47. | |
citizens to invest overseas but the Communist Party bans | :02:48. | :02:53. | |
relatives from profiting from their political connections, so | :02:54. | :02:56. | |
this new information is unwelcomed. So far, the government is doing what | :02:57. | :03:01. | |
it can to control the story When I enter "Panama Papers" | :03:02. | :03:04. | |
into China's most popular search engine, this is what I get - | :03:05. | :03:09. | |
a message telling me But even the censors can't hide | :03:10. | :03:12. | |
a growing awareness in China that there is a large wealth gap | :03:13. | :03:18. | |
between the vast majority of China's ordinary people and the red | :03:19. | :03:21. | |
aristocracy - the wealthy officials The fact that more and more details | :03:22. | :03:26. | |
about overseas holdings of the red aristocracy has come out, | :03:27. | :03:31. | |
this will translate into resentment Also, more entrenched doubts about | :03:32. | :03:37. | |
whether this one-party authoritarian Slowly we are learning more | :03:38. | :03:46. | |
and more about how the relatives of Chinese leadership store | :03:47. | :03:53. | |
their money Overseas. Despite best efforts of the | :03:54. | :03:57. | |
Communist Party, an unexpected leak of files from half way around the | :03:58. | :04:00. | |
world in Panama is shedding light Global defence spending has now | :04:01. | :04:05. | |
reached $1.7 trillion a year, thanks in parts to the war against | :04:06. | :04:18. | |
ISIS that figure is on the rise. Arms firms are profiting - their | :04:19. | :04:23. | |
share prices rising to a four-year Over the past few years, Western | :04:24. | :04:46. | |
countries have tried their best to pare back defence spending but | :04:47. | :04:59. | |
others have sales soaring. The US defence budget declined by 2.4% last | :05:00. | :05:05. | |
year although it is still far and away the biggest military spender. | :05:06. | :05:12. | |
Saudi Arabia increased by 5.7% to 87 billion dollars. They are involved | :05:13. | :05:18. | |
in was in Yemen, Syria and Iran. The far east has seen the biggest | :05:19. | :05:28. | |
increase. China rose 7.4%. That has provoked increased spending by | :05:29. | :05:32. | |
neighbours such as Indonesia, the Philippines and Vietnam. If you are | :05:33. | :05:39. | |
any of Japan, South Korea, you name it, this idea that there is the | :05:40. | :05:46. | |
threat not 20 years in the future, now. It is going to get stronger and | :05:47. | :05:51. | |
stronger. He suddenly say, we have to spend money. This increase in | :05:52. | :05:58. | |
spending is the boost to the arms industry. The world is largest | :05:59. | :06:03. | |
defence contractors has seen its stock double since 2011. It is | :06:04. | :06:10. | |
positive development for defence firms but, at the same time, those | :06:11. | :06:15. | |
dollars are emerging not from their markets but from the Asia-Pacific, | :06:16. | :06:22. | |
in particular, in an increasingly competitive environment. They can | :06:23. | :06:28. | |
not only have to compete with each other and also with the fast | :06:29. | :06:32. | |
developing industry of Asian countries like South Korea. | :06:33. | :06:40. | |
US, China, written is number five. Higher, in fact than Russia. -- | :06:41. | :06:56. | |
Britain. Exciting stuff. The Reserve Bank of India is expected to cut its | :06:57. | :07:03. | |
interest rates. The global trend. Low oil prices and the uncertainty | :07:04. | :07:07. | |
surrounding the Chinese economy factor. Is this the new normal and | :07:08. | :07:15. | |
does it signal danger for the global economy? Lets find out. Thank you | :07:16. | :07:25. | |
for getting up this alley. Australia kept their rates on hold, as | :07:26. | :07:30. | |
expected. Let's talk about India, the world 's fastest growing | :07:31. | :07:37. | |
economy. Does it do good job using interest rates as tool to manage the | :07:38. | :07:43. | |
economy? India is very complex economy. It does have the best job | :07:44. | :07:48. | |
it can. Its biggest problem at the moment is trying to restructure some | :07:49. | :07:51. | |
of the bad debts in its banking sector. Really, on the Indian | :07:52. | :07:58. | |
economy, the stimulus needs to come from structural reforms, | :07:59. | :08:05. | |
legislative, and reform in the banking sector. At the moment it is | :08:06. | :08:10. | |
overloaded with bad debts. We all know that India needs structural | :08:11. | :08:15. | |
reform, it is not just about interest rates. But the negative | :08:16. | :08:20. | |
interest rate, that is where the central banks charge the banks to | :08:21. | :08:28. | |
put their money in. Do not want your money, get your money out there. -- | :08:29. | :08:34. | |
we do not want. People who have money are not putting it into banks, | :08:35. | :08:39. | |
so they put it into other areas like housing. Does that artificially | :08:40. | :08:49. | |
inflate the prices? Yes, people cannot put money on deposits in our | :08:50. | :08:54. | |
conservative way, they look for assets, whether it is property, | :08:55. | :09:00. | |
housing to boost their returns and get better returns. The problematic | :09:01. | :09:05. | |
with it if it does not address a lot of the problems. One reason for | :09:06. | :09:10. | |
negative interest rates if they do not want their currency revalued | :09:11. | :09:15. | |
and, secondly, and more substantially, we have problem with | :09:16. | :09:18. | |
the banking system globally because the current models we have is | :09:19. | :09:26. | |
basically one not fit for purpose. They need to keep interest rates low | :09:27. | :09:30. | |
so that, as we restructure banking, as opposed to the current banks, | :09:31. | :09:35. | |
they need to keep rates low to make sure we do not get the shock and, as | :09:36. | :09:41. | |
the current banks start to winter on the vine, so to speak. We had the | :09:42. | :09:46. | |
list of some of the major central banks around the world using | :09:47. | :09:52. | |
negative interest rates are, unfortunately we are out of time. | :09:53. | :09:56. | |
But they are using negative interest rates because all the other tools | :09:57. | :10:01. | |
have been used. Mark, always our pleasure. We are saying goodbye to | :10:02. | :10:08. | |
make look, I have been told. Follow me on Twitter. I will be back | :10:09. | :10:14. | |
shortly to take look at the papers from around the world. | :10:15. | :10:23. | |
The number of police staff taking long term sick leave for | :10:24. | :10:25. | |
psychological reasons has gone up by a third over the past five years. | :10:26. | :10:29. | |
Figures provided to the BBC following a freedom | :10:30. | :10:30. | |
of information request suggest long term sick leave also increased. | :10:31. | :10:36. |