05/09/2016 World Business Report


05/09/2016

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Now for the latest financial news with Aaron and World Business

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As leaders of the world's most powerful nations try to breathe

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fresh life into the global economy at the G20 summit,

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it is more or less hijacked by one issue -

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Forget "roll out the barrel", it is more like "knock

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It is the art of making wooden barrels for beer and spirits.

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It lives on in the few remaining cooperages in the US,

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Thank you for joining us. If you are watching in Britain if I am too

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loud, turn the volume down. This is a snapshot of all that is happening

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in the world of his nurse and money. -- business and money.

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The Chinese city of Hangzhou is playing host to the G20 summit,

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Since the global financial crisis of 2008, China has moved up

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In terms of size, it is the second-largest economy

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For President Xi Jinping, the summit is a chance for China

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to claim its place at the top of global economic leadership.

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But there will also be something new to talk about at this summit.

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It is the first big international outing

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for this lady here, the new British Prime Minister,

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Many at the summit are concerned about the effects of the Brexit vote

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Japan has issued a pointed statement outlining its concerns over Brexit,

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and today, China and the UK will discuss China's investment

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Robin Brant joins me now from the summit in Hangzhou.

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Great to see you. Let's start with this. I am just curious, how much

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talk there is about Brexit, how big is it, if you will? Well, I think it

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dominated the discussions between Theresa May, on her international

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debut as you said, Barack Obama yesterday, and he made no bones

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about it. Even though there is a special relationship between these

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two countries, he said that the US was concerned about any adverse

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effect on trade between the two nations as the UK tries to extricate

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itself from the European Union. And he reminded Theresa May that the US

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thinks it is more important to try and reach a free-trade agreement

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with the European Union and its Asia-Pacific partners first. So the

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reality is that Britain is at the back of the queue when it comes to

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some kind of deal with the United States. There is broad anxiety as

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well about the UK's decision to leave the European Union. Firstly

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because what will that mean for countries here and their trade with

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the UK. But institutionally what does it mean for the European Union

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as a club at a time when the global economy is showing no signs of

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improving at all. You've got to love it, all these leaders wanting to put

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their two sense -- 2 cents in. I want to ask you, Theresa May will

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sit down with the Chinese officials, and I am not sure if it is also with

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Xi Jinping, to talk about Hinkley Point. I wonder if China will be

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able to reassure her over the security concerns, which is the

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reason why we think Britain delayed this deal. Yes, I am not sure there

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is much more that President Xi Jinping can do to reassure her

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although there are concerns I think amongst some officials around the

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Prime Minister about national security and worries about a malign

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influence that China may have years down the line if it was indeed to be

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in control of this very important infrastructure. Things like nuclear

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power stations. Make no mistake, this is a very important meeting for

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her. For the Chinese, they are financially invested in Hinkley

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Point but crucially they have been The Project lead for the further

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nuclear power stations to follow. They want to show the world they can

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do big, hi-tech infrastructure stuff like this. And the fact that the

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Prime Minister has put the agreement on hold and is having a fresh look

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at it is a source of concern for them. There will be no decision all

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of a sudden at the G20 summit from her. They will have to wait for that

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but she has to reassure them that she is being fair in her assessment.

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Senior figures are telling me they believe this is a dangerous time for

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UK- China relations and even the idea that some seem to be looting

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around the Prime Minister that you can operate two halves of the

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nuclear deal, yes, the Chinese can put their money in but the Prime

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Minister might prevent them being involved in building the other

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stations. Those kind of people suggesting that kind of thing being

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described as idiotic. We will talk to you very soon. We will speak to

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rob and a lot in the next couple of days.

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Shares of the troubled South Korean shipping giant Hanjin slumped

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by the daily limit of 30% when trading resumed this morning,

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They carry all our stuff around the world. Basically, the company has

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been going down the gurgler. Rico Hizon is in our

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Asia Business Hub in Singapore. I am wondering if Hanjin is a bit of

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a story, a bit of an example, of what is going on with the global

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economy? Because the shipping, it carries all our stuff, it is cargo

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shipping which is a leading indicator of the global economy, and

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we no prices have fallen through the floor, haven't they? That's right.

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The global economy is slowing down. Exports are slowing down. Trade is

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slowing down. The Hanjin shipping empire is crumbling, and as you

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mentioned, its share price as well. You know, the South Korean shipping

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company is struggling to contain the fallout of its collapse, as it has

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filed even for bankruptcy protection in the United States to protect its

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vessels from being seized by creditors. And this is days after

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the company sought protection in South Korea mid last week. And

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shares plummeting today, by the daily limit. Trading resumed after

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being suspended since 30 August, and Hanjin filed for receivership in

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Seoul on Wednesday, after banks withdrew their support. The courts

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have secretly decided to begin rehabilitations proceeding in South

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Korea. Shares plummeting to 871, their lowest level since December

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2009, and Hanjin is currently the largest shipping company in Korea,

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Aaron, operating approximately 60 sites worldwide, 140 will vessels.

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It is ranked ninth largest, transporting over 100 million tons

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of cargo a year. Just by its sheer volume, the collapse of Hanjin goes

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to show that indeed we are in a slowing global economy. We are, good

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on you. We will talk to you soon. Manufacturing jobs in the US

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may be on the decline, but there is one industry

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that is experiencing Makers of barrels, that is, because

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I didn't know that this morning. Demand for wood barrels to age wine

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and spirits is on the rise, and with only a few dozen

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barrel-makers in the United States, it is a good time to be

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in the barrel -building business. At a time when machines are

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replacing people, this is a craft that still depends on the human

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touch. As a child, George watched his grandfather make wood barrels

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back in Romania. He didn't just learn a skill, he inherited a

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passion. I started with my grandfather when I was a very young

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child. Maybe I watch him by six years old, I started to imitate him

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by ten years old. And after that I was in and out doing barrels,

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sometimes as a hobby and later on I decided to do it professionally, for

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business. Demand for these kind of wood barrels is increasing. And that

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is because domestic whiskey production, that is whiskey made

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right here in the US, is up some 40%. And a big part of that has to

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do with consumers wanting to drink locally. The trend towards eating

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locally sourced foods has seeped into America's alcohol industry,

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giving rise to small batch and craft distilleries. Over the last ten

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years, the craft ruing movement has really just blown up. And whiskey,

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American whiskey, in particular, is just taking on a whole new

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Renaissance, if you will, with different dynamics, with different

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grains, the amazing different still types, and of course using fantastic

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barrels. C, you have two tap from the side, because you hit like that,

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and you destroy your finger. Three decades after leaving Romania, Voicu

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abandon his career in engineering, in favour of bringing his old world

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skill to the US market. What do you think your grandfather would save

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the sort you are doing our? He would be very happy, absolutely very

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happy, I am sure. Don't forget, you can get

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in touch with me and some I will be back to take a look at the

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papers from around the world. Hooroo.

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All day here on the BBC, we are going to be taking a closer

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look at the fallout from Britain's decision to leave

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