:00:00. > :00:21.South Korea orders Volkswagen to sling its hook as Asia's fourth
:00:22. > :00:24.largest economy tells the German carmaker it can no longer
:00:25. > :00:29.And throwing another kitchen sink at Japan's economic problems.
:00:30. > :00:32.Yes, this man, Prime Minister Abe, gets set to splash the cash
:00:33. > :00:48.trying again to kick start the world's number three economy.
:00:49. > :01:04.Coming up - the Japanese government has unveiled another stimulus
:01:05. > :01:08.package - but are investors underwhelmed?
:01:09. > :01:12.South Korea - has suspended the sales of 80 VW models,
:01:13. > :01:16.this is across the VW group and includes Audi's and Bentleys
:01:17. > :01:23.and fined the German car maker some $16 million.
:01:24. > :01:26.The South Korean govt is accusing VW of forging documents on emissions
:01:27. > :01:29.The move by Asia's fourth biggest economy builds pressure
:01:30. > :01:33.on Volkswagen as it struggles to repair its reputation after it
:01:34. > :01:36.admitted in September to using illegal software to hide
:01:37. > :01:41.toxic emissions on about 11 mln vehicles worldwide.
:01:42. > :01:48.Our correspondent Stephen Evans is in Seoul.
:01:49. > :02:00.Why now? Why now? That is the way the law moves. It moves at this
:02:01. > :02:05.pace. The authorities in South Korea are determined to be tough on this.
:02:06. > :02:12.You have a ban on sales of new models, 32 new models altogether.
:02:13. > :02:17.Models of new cars, rather. Audi, VW and Bentley, the brands in this
:02:18. > :02:23.economy. You also have, and it is rare across the world, they are
:02:24. > :02:27.going after executives. The forgery allegation is basically the
:02:28. > :02:33.allegation that to get the licence to sell in this country, documents
:02:34. > :02:36.had to be forged and executives, they are implying all prosecutors
:02:37. > :02:43.are implying, they knew about these tests when they sought the import
:02:44. > :02:50.licences. There is a fine, there is a ban on sales, plus some pretty
:02:51. > :02:54.robust language from the prosecutors who say executives in this country
:02:55. > :03:00.must have known. Now, if you look at the VW's figures recently, the first
:03:01. > :03:06.six months of the year, it remains the world 's biggest carmaker. Still
:03:07. > :03:12.beating Toyota. Stay at -- sales down 7% in the US, up 7% in China.
:03:13. > :03:20.It has set aside a bunch of money to sort this legal thing out. But, all
:03:21. > :03:27.the signs are that the upward growth of the VW economy has not hit any
:03:28. > :03:30.kind of permanent bump. Very briefly, I'm curious, the suspension
:03:31. > :03:39.of sales, how permanent is it? Temporary. We don't know. It is
:03:40. > :03:45.suspended until the authorities of the environmental Ministry here is
:03:46. > :03:51.satisfied that the paperwork it gets reflects the reality. It doesn't
:03:52. > :03:55.effect, for example, the sale of cars, the second-hand sale of cars.
:03:56. > :04:03.It is the environment Ministry saying we are very very angry. We
:04:04. > :04:09.feel we have been deceived and until you can insure us that that's not
:04:10. > :04:15.the way you run your company, then that ban remains. Thank you for
:04:16. > :04:20.that. We appreciate it, as always. Stephen Evans joining us from Seoul.
:04:21. > :04:22.Japan's Prime Minister Shinzo Abe is - yet again -
:04:23. > :04:24.throwing the kitchen sink at the country's economic problems...
:04:25. > :04:28.Yes, he is set to splash the cash to the tune of some $270bn -
:04:29. > :04:31.trying once more to kick start the world's number three economy.
:04:32. > :04:34.This will rank as the largest spending package since the global
:04:35. > :04:42.But will it be enough to jump start the Japanese economy and get it
:04:43. > :04:53.Mark Oswald, foreign exchange strategist. Always good to have you
:04:54. > :04:57.in the studio. Thank you for coming in at this horrible owl. Talk about
:04:58. > :05:18.horrible, is this another horrible plan by the Japanese government? --
:05:19. > :05:21.horrible hour. In GDP terms, the Japanese economy, in terms of
:05:22. > :05:24.government debt. Japan has plenty of it. People are always worried about
:05:25. > :05:34.Japan borrowing a lot because it already has debt. The bank of Japan
:05:35. > :05:40.has run out of road so that they are trying to find something to give the
:05:41. > :05:44.economy a bit of a kickstart. But we have been here before, plenty of
:05:45. > :05:49.times over the past 25 years. What we really need in Japan, obviously,
:05:50. > :05:59.is a question of when are they going to reform their economy? It clear. I
:06:00. > :06:05.always joke. -- exactly. You can't always throw good money after bad.
:06:06. > :06:11.Why are they so reluctant, 25 years, why are they so reluctant to
:06:12. > :06:16.implement some economic reforms? Some of them are sociocultural
:06:17. > :06:20.problems. Above all, changing the amount of immigration in Japan.
:06:21. > :06:26.Foreign workers only constitute about a small percentage of the
:06:27. > :06:30.workforce. They are against it. It doesn't work politically. With
:06:31. > :06:34.Japan's demographics going sharply against them, they have an ageing
:06:35. > :06:37.population, they have no young taxpayers, no young workers coming
:06:38. > :06:46.through, to be able to pay for that. In the lung -- in the long run, they
:06:47. > :06:52.need to find that. They need to earn money from abroad because the
:06:53. > :06:57.domestic profile is so weak. They need to fundamentally change that.
:06:58. > :07:01.Another issue problem for Japan and, perhaps out of its control, if
:07:02. > :07:04.currency. Investors around the world, when we have Hick ups,
:07:05. > :07:11.investors panic and take their money out of the stock markets and they
:07:12. > :07:16.put it in Japan. The more they get the yen, the yen goes up and that is
:07:17. > :07:24.not good for the Japanese companies and they sell their stuff abroad. Is
:07:25. > :07:31.not good for Japan trying to fight this deflation. On the other hand,
:07:32. > :07:34.not surprising, giving thereafter refuse safe havens in the world in
:07:35. > :07:42.the dollar is obviously very much subject to when the Feds are going
:07:43. > :07:49.to move on interest rates. That's for another interview! We appreciate
:07:50. > :07:55.it. Short and sweet but enqueue. -- but thank you. Further south,
:07:56. > :08:02.towards my home country. Well, it is my home country.
:08:03. > :08:05.The central bank of Australia has just announced its interest rate
:08:06. > :08:18.Hello, mate! Was this expected. I think it was. I was reading in the
:08:19. > :08:22.first part of this year, we had better growth than many were
:08:23. > :08:29.expecting but things like housebuilding and exports were doing
:08:30. > :08:35.OK at the beginning of the year but have they called a little bit? The
:08:36. > :08:39.big reason for this, I think, is inflation. Inflation in Australia is
:08:40. > :08:43.quite a bit below what the reserve bank wants. The reserve wants
:08:44. > :08:50.between two and 3%. That is one reason the reserve bank is taking
:08:51. > :08:57.interest rates into new territory. A few moments ago the rate was lowered
:08:58. > :09:01.to a historic low of 1.5%. If you have a mortgage, it's pretty good
:09:02. > :09:05.news. If you are a saver, not so good. It is likely to have an impact
:09:06. > :09:10.on quite a high Australian dollar which the Reserve Bank has also had
:09:11. > :09:17.its eye on in recent months. Don't tell me about the dollar. And become
:09:18. > :09:21.I come home, it kills me. In all seriousness, since China has come
:09:22. > :09:24.off the boil, meaning the Australians were digging up less and
:09:25. > :09:30.selling yesterday Chinese, but that has really is hit the Australian
:09:31. > :09:35.economy, many said Australia had all its eggs in one basket and needed to
:09:36. > :09:42.diversify the economy. Has it been doing that? Has it been on the right
:09:43. > :09:45.path of diversifying the Australian economy? It hath too. The long
:09:46. > :09:51.mining boom that lasted for the best part of a decade is failing.
:09:52. > :09:57.Australia is not the powerhouse it once was in terms of exporting,
:09:58. > :10:02.mostly iron or, to places like China and also coal. The Prime Minister
:10:03. > :10:08.Malcolm Turnbull wants Australia to become an innovation nation. Also
:10:09. > :10:11.boosting manufacturing, agriculture, housebuilding and tourism. All
:10:12. > :10:19.sectors will be important in Australia's near future. Plotting a
:10:20. > :10:28.path to Verity at the end of a very long and prosperous mining boom. --
:10:29. > :10:42.path to prosperity. Did you see that backdrop? Not bad. Can we look at
:10:43. > :10:45.the markets? You can see the Nikkei. Holding their breath waiting to see
:10:46. > :10:53.what the Japanese Promina start reveals in this new wave of economic
:10:54. > :11:00.stimulus. -- Japanese Prime Minister. There seems to be a bit of
:11:01. > :11:03.a central banks seem. We have seen what the bank of Japan did on
:11:04. > :11:09.Friday, that disappointed the markets, it didn't do enough in
:11:10. > :11:14.terms of its programme. Enough in certainly in terms of investors and
:11:15. > :11:20.the markets are round the world were hoping for. All eyes are now on the
:11:21. > :11:25.Japanese Prime Minister. The United States reserve, of course, will
:11:26. > :11:31.they? Won't they? People are now saying that they won't raise the
:11:32. > :11:37.interest rates this year given, of course, the disappointing economic
:11:38. > :11:41.numbers that we saw on Friday. Really shocked the markets and the
:11:42. > :11:55.world's largest economy slowed down. There you go. Follow me on Twitter.
:11:56. > :11:57.You can get me at BBC Arryn. -- Aaron. I will be back to look at the
:11:58. > :12:16.newspapers. The High Court will decide whether
:12:17. > :12:18.England has the power to get a