20/12/2016

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:00:00. > :00:18.An experimental year comes to an end for the Bank of Japan -

:00:19. > :00:21.it gives an upbeat outlook for the worlds third biggest economy

:00:22. > :00:27.Going, going, gone - Cyrus Mistry finally steps down

:00:28. > :00:30.from the boards of Tata companies - but says he will bring legal action.

:00:31. > :00:49.How the falling Chinese yuan may rock the luxury housing market

:00:50. > :01:01.The Bank of Japan has concluded its latest policy meeting.

:01:02. > :01:04.It kept monetary policy steady and offered a brighter view

:01:05. > :01:07.of the economy - that's because it believes a weaker yen and a rebound

:01:08. > :01:10.in overseas demand will boost growth in the new year.

:01:11. > :01:13.That's good news for Japanese policymakers, who are attempting

:01:14. > :01:15.to revive the country's flagging economy using a series

:01:16. > :01:20.Seijiro Takeshita is a Professor at the School of Management

:01:21. > :01:24.and Information at the University of Shizuoka in Japan.

:01:25. > :01:35.Nice to see you. They delivered what we expected, which is nothing new.

:01:36. > :01:40.First meeting after the election of Donald Trump. Give us your take on

:01:41. > :01:46.the year ahead for Japan now, then. As you pointed out earlier, a lot of

:01:47. > :01:51.positivity coming from overseas, and for that reason, there has been a

:01:52. > :02:00.virtual upward revision in the bank of Japan's comment, but they are

:02:01. > :02:06.only looking at short-term. They are not really looking at the structural

:02:07. > :02:10.transformation issues, which have a much more serious impact. They will

:02:11. > :02:16.regress them back again. Also uncertainty to come from Europe and

:02:17. > :02:21.in the United States is still there. Although they are at a high level of

:02:22. > :02:28.expenditure, it is not growing that much. The ambiguity factors are very

:02:29. > :02:30.large, and considering they have extremely high uncertainty

:02:31. > :02:36.avoidance, there could be a bit of turmoil ahead of us going into 2017.

:02:37. > :02:40.What are your thoughts in terms of what the central bank and government

:02:41. > :02:45.may do in the New Year given what you have just said? They cannot ride

:02:46. > :02:51.the wave of a weak Japanese yen forever. Absolutely. Of course they

:02:52. > :02:56.will try to sustain their target, but with what is going on in the

:02:57. > :03:00.United States, one cannot prevent the longer term rates from shooting.

:03:01. > :03:05.Can the Japanese central government cope with the situation forever? The

:03:06. > :03:10.answer no. That may evoke a strengthening of the yen, which

:03:11. > :03:16.people are talking about right now. What they really have to do is,

:03:17. > :03:27.again, it is a longshot, but they still to almost go with the second

:03:28. > :03:31.set of targets for Abenomics, which is a much more acute problem for

:03:32. > :03:36.Japan in the long run. Thank you for your time. I'm sure we will talk to

:03:37. > :03:37.you in the New Year about the Japanese economy. Until then, all

:03:38. > :03:39.the best. The executive board of the IMF has

:03:40. > :03:42.reaffirmed its confidence A French court found her guilty

:03:43. > :03:46.of negligence over a huge compensation payment made

:03:47. > :03:49.when she was the French finance minister, but the court

:03:50. > :03:51.did not punish her. The case relates to the payment

:03:52. > :03:54.of more than $400 million The Italian government will seek

:03:55. > :03:59.parliamentary approval to borrow up to $21 billion to support

:04:00. > :04:01.its fragile banking sector and potentially rescue Monte

:04:02. > :04:05.dei Paschi di Siena. The country's third-largest bank

:04:06. > :04:08.needs to raise more than $5 billion in fresh capital by

:04:09. > :04:12.the end of the month. If Monte dei Paschi cannot arrange

:04:13. > :04:15.a private sector bailout, a state rescue may come

:04:16. > :04:25.as early as this week. Chinese government researchers say

:04:26. > :04:29.the Yuan is expected to weaken That's on top of the 6.5% drop

:04:30. > :04:37.in the value of the Yuan Combined with the restriction

:04:38. > :04:41.on sending money overseas, it's bad news for the high-end real

:04:42. > :04:45.estate market in the US. The BBC's Helier Cheung spoke

:04:46. > :04:48.to luxury realtor Aaron Kirman, who says Chinese wealth makes up

:04:49. > :05:02.30% of his business. National buyers always love that

:05:03. > :05:06.you. The dollar is extremely strong right now, and that is really

:05:07. > :05:10.affecting international buyers in general but especially a lot of

:05:11. > :05:14.Chinese as well. We had many calls from people looking to buy in the US

:05:15. > :05:18.at a certain price point, and since the dollar has risen, have changed

:05:19. > :05:25.their price point to a bow at dollar amount. Chinese buyers did dip this

:05:26. > :05:29.year. The main reason for that was multifaceted -- to a lower dollar

:05:30. > :05:32.amount. It has been difficult for them to get their money out of

:05:33. > :05:36.China. That has been difficult. A lot of deals have not been made

:05:37. > :05:40.because they could not get their money out. Also the Chinese economy

:05:41. > :05:45.took a hit last year as well and this year as well. Was there any

:05:46. > :05:50.nervousness in the market ahead of the US election? People were very

:05:51. > :05:55.nervous about where we were going before the election and he was going

:05:56. > :05:58.to win. That made it a little bit questionable for people -- who was

:05:59. > :06:02.going to win. Markets were slow prior to the election. It was

:06:03. > :06:06.interesting, because after the election, a lot of people moved

:06:07. > :06:10.forward from all over the globe. Are there any signs of what it Donald

:06:11. > :06:14.Trump presidency will mean real estate? I think Donald Trump has

:06:15. > :06:18.certain things that will help him that the real estate market. He

:06:19. > :06:23.intends to lower taxation for the wealthy. That really does help in

:06:24. > :06:28.making wealthy people continue to invest in by luxury properties. Then

:06:29. > :06:33.you have a trickle-down effect. Donald Trump is a real estate Guru,

:06:34. > :06:37.and so that is something that is very special to him in his heart,

:06:38. > :06:41.and I think it will make sure that real estate is very secure moving

:06:42. > :06:44.forward. You have dealt with their lot of wealthy buyers. What are some

:06:45. > :06:56.of the more unusual requests you have had? People usually want that

:06:57. > :07:00.very fine multi- million theatre. It is interesting. We even had a buyer

:07:01. > :07:06.who wanted a medical Hospital in case you got Sikh. We had to create

:07:07. > :07:10.a 5000 square feet hospital below the home basement to make sure if

:07:11. > :07:16.something happened to him, he and his family.

:07:17. > :07:18.The boardroom battle is over for now.

:07:19. > :07:20.Former Tata Sons chairman Cyrus Mistry has resigned

:07:21. > :07:22.from the boards of all Tata group-listed firms.

:07:23. > :07:25.But he is vowing to continue to push for better corporate governance

:07:26. > :07:45.It has become quite a bitter battle, hasn't it? Tell us the latest.

:07:46. > :07:48.That's right, Sally. It has been a really bitter public battle over the

:07:49. > :07:58.last eight weeks since Cyrus Mistry was sacked at -- as the chairman of

:07:59. > :08:00.the Tata steel grid. They had extraordinary meetings where

:08:01. > :08:07.shareholders were supposed to vote whether Cyrus Mistry should continue

:08:08. > :08:12.on the board of these companies, but before they could get started, Cyrus

:08:13. > :08:16.Mistry decided to resign last evening, saying his battle continues

:08:17. > :08:20.and he does not want to use the extraordinary meeting platform to

:08:21. > :08:24.continue his battle against the Tata group, but he will move to the

:08:25. > :08:31.courts now and take ever go to. The battle is not over but will now

:08:32. > :08:37.shift to the court. -- take a legal term. How damaging is this? It has

:08:38. > :08:41.been really damaging. Tata is the biggest conglomerate in India and

:08:42. > :08:46.the oldest conglomerate in India. It makes everything from tea, salt,

:08:47. > :08:51.software. They have a very good public reputation because they have

:08:52. > :08:56.always prided themselves in following good governance. But after

:08:57. > :09:00.this whole public saga, if I can use that term, between the two warring

:09:01. > :09:04.sides, it has really damaged their reputation in public, especially

:09:05. > :09:09.when it comes to corporate governance, ethical values being

:09:10. > :09:13.followed, and I think the Tata family has been known to making sure

:09:14. > :09:17.that they are really philanthropic in their work and keep a very good

:09:18. > :09:22.image publicly, which has taken a hit because of this public battle.

:09:23. > :09:26.Thank you. We will rely on you to keep us up-to-date with every twist

:09:27. > :09:32.and turn. Let's have a book at the markets. The markets globally and

:09:33. > :09:37.sentiment has been hit a little by the geopolitical concerns because of

:09:38. > :09:41.events in Berlin and in Turkey. That is something that is on the minds of

:09:42. > :09:46.investors as we come towards the end of a trading year. A very mixed

:09:47. > :09:50.picture in Asia at the moment. And in the United States. We saw a

:09:51. > :10:01.slight uptick in the main markets. I will see you soon.

:10:02. > :10:05.The NHS in England was left with an unpaid bill of ?30 million

:10:06. > :10:07.last year by overseas patients who are not entitled

:10:08. > :10:12.The figure comes from more than 100 NHS trusts.

:10:13. > :10:14.Our correspondent Robert Piggott reports.