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Let's catch up with the world of blisters bow and World Business | :00:00. | :00:07. | |
Report. Here is Sally -- world of business now. | :00:08. | :00:12. | |
Free cash if you get a job or not - the Finnish government tries paying | :00:13. | :00:17. | |
the unemployed a basic income in a bid to get them back to work. | :00:18. | :00:23. | |
And with India still reeling from the decision to scrap | :00:24. | :00:25. | |
the country's most widely used notes, Modi announces plans to help | :00:26. | :00:28. | |
Starting this year, Finland becomes the first country in the world | :00:29. | :00:47. | |
2,000 unemployed people in the country will begin receiving | :00:48. | :00:52. | |
560 euro - that's $585 dollars - every month from the state, | :00:53. | :00:55. | |
The government believes many job seekers are put off getting a job | :00:56. | :01:07. | |
because they will lose benefits and therefore be | :01:08. | :01:09. | |
A New Year and perhaps a new approach to welfare policy in | :01:10. | :01:23. | |
Finland. It is just an experiment at this stage but one attracting | :01:24. | :01:28. | |
interest around the world. The new approach involves providing a | :01:29. | :01:31. | |
standard basic income to every citizen whether you work or not. | :01:32. | :01:34. | |
That way, those without a job have an incentive to take even poorly | :01:35. | :01:38. | |
paid or part-time work as they would get to keep the benefit any salary. | :01:39. | :01:43. | |
The traditional weather system means getting a job usually means losing | :01:44. | :01:46. | |
benefits. Will be new system actually encourage more people to | :01:47. | :01:50. | |
work? Nobody knows the shore. That is why the Finnish government has | :01:51. | :01:54. | |
decided to test it. Two dozen unemployed people will get about | :01:55. | :02:00. | |
$580 a month whether they look for a job or not -- 2000. | :02:01. | :02:05. | |
TRANSLATION: We will get information on how this kind of economic | :02:06. | :02:08. | |
incentive affects people's behaviour. It is valuable | :02:09. | :02:11. | |
information and more than the current discussion is based on. We | :02:12. | :02:16. | |
will get some facts. The current discussion is mostly based on | :02:17. | :02:19. | |
opinions and very strong opinions for or against EU welfare policy. | :02:20. | :02:24. | |
This way, we are trying to show something more than an opinion. The | :02:25. | :02:29. | |
Finnish experiment focuses on the unemployed and whether it encourages | :02:30. | :02:34. | |
people into work. But rolling out a basic income in full would mean | :02:35. | :02:37. | |
paying it to everyone. Critics say it would be both expensive and would | :02:38. | :02:41. | |
waste money on people who don't need financial help. | :02:42. | :02:46. | |
We will certainly keep an eye how that pans out in Finland. | :02:47. | :02:54. | |
In a New Year's address to the nation, | :02:55. | :02:56. | |
India's Prime Minister, Narendra Modi has announced several | :02:57. | :02:58. | |
hardest hit by the country's decision to scrap some banknotes. | :02:59. | :03:02. | |
Measures include additional incentives for digital transactions | :03:03. | :03:04. | |
as well as financial support for farmers who have been hit hard | :03:05. | :03:07. | |
since the Prime Minister announced in November that current 500 | :03:08. | :03:12. | |
and 1000 rupee notes would no longer be legal. | :03:13. | :03:19. | |
The government scrapped the notes without warning to crack | :03:20. | :03:22. | |
down on undeclared cash known as 'black money' and fake cash. | :03:23. | :03:27. | |
In fact, this black money shadow economy is said to be worth | :03:28. | :03:30. | |
as much as 20% of India's entire GDP. | :03:31. | :03:37. | |
Together, the two notes represented 86% of the currency | :03:38. | :03:40. | |
in circulation, and the Indian parliament is preparing laws | :03:41. | :03:42. | |
that will make it a criminal offence to hold the old notes | :03:43. | :03:45. | |
Our business correspondent Shilpa Kannan joins me now | :03:46. | :03:55. | |
from Delhi with the latest on this story. | :03:56. | :04:01. | |
It was a disaster in November when this was first announced with very | :04:02. | :04:06. | |
little notice. Tell us what Narendra Modi had to say in his speech. | :04:07. | :04:11. | |
Absolutely. It was shocking and there was utter chaos everywhere. | :04:12. | :04:15. | |
The Prime Minister did acknowledge that and said he is painful to the | :04:16. | :04:19. | |
citizens who showed patients by standing in the line. But what | :04:20. | :04:23. | |
everyone was looking for was did all of that hardship really lead to | :04:24. | :04:27. | |
anything? Was there a big number achieved do this exercise? The Prime | :04:28. | :04:30. | |
Minister failed to provide any details about those kind of numbers. | :04:31. | :04:34. | |
He did not tell us how much black money was seized on what kind of, to | :04:35. | :04:41. | |
this exercise, what did they achieve? Those numbers were not in | :04:42. | :04:45. | |
the speech. But he did give out a lot of handouts, especially to | :04:46. | :04:50. | |
farmers who were really hard hit by this whole exercise. The farmers | :04:51. | :04:55. | |
sector was very badly. There is a crucial agricultural season coming | :04:56. | :04:59. | |
up and farmers could not afford new seeds of fertiliser, said there were | :05:00. | :05:04. | |
handouts for them and for small and medium enterprises. Pregnant women | :05:05. | :05:07. | |
got some money. There were various little handouts. Many said this | :05:08. | :05:15. | |
sounded more like a budget speech then a New Year's if speech. But no | :05:16. | :05:21. | |
details on where this money would come from. And also the impact on | :05:22. | :05:27. | |
the Indian economy. Some have downgraded growth forecasts for | :05:28. | :05:30. | |
India now because of this move. Absolutely. That was one thing that | :05:31. | :05:38. | |
many people were pointing out. With the of this whole currency swap | :05:39. | :05:42. | |
exercise, people were worried about what kind of impact India's growth | :05:43. | :05:46. | |
will have, and rural economy will be the first one to take a hit. People | :05:47. | :05:52. | |
in rural areas simply don't have access to so many banks as much as | :05:53. | :05:56. | |
in urban India. With these kind of handouts, it looks like the Prime | :05:57. | :06:00. | |
Minister is trying to kickstart the ruling consumption again and maybe | :06:01. | :06:04. | |
the investment cycle and get a boost from that. Is I clearly seems to be | :06:05. | :06:11. | |
on rural India. There is also crucial key state elections coming | :06:12. | :06:14. | |
up. This is just ahead of the election date announcement. Very | :06:15. | :06:17. | |
populist move by the Indian Prime Minister. Thank you. Nice to see | :06:18. | :06:23. | |
you. We will see you again soon. Let's talk about one of the things | :06:24. | :06:27. | |
many are discussing as we enter a new year. That is the big question | :06:28. | :06:32. | |
of what will be ye have in store for the world's currencies? -- the year. | :06:33. | :06:35. | |
2016 was a roller-coaster year as Brexit and US presidential | :06:36. | :06:38. | |
elections gripped investor sentiment. | :06:39. | :06:39. | |
Our Asia business correspondent Karishma Verswani takes a look | :06:40. | :06:42. | |
at the past year and what to expect in 2017. | :06:43. | :06:54. | |
At the start of 2016 it was all about the Japanese yen, and the | :06:55. | :07:00. | |
hardest working central banker did everything in his power to weaken | :07:01. | :07:05. | |
again. Nothing, not even negative interest rates worked. 2016 everyone | :07:06. | :07:10. | |
said would be a tough year for the yen. As all of this was going on, | :07:11. | :07:15. | |
the Chinese yuan was falling. As its economy became more uncertain, | :07:16. | :07:19. | |
Chinese companies and individuals began selling more of their cash | :07:20. | :07:24. | |
overseas. Then came the first big shot, the vote for Brexit. The | :07:25. | :07:27. | |
Sterling slumped against the US dollar after the UK and expectedly | :07:28. | :07:32. | |
voted to beat the European Union in June. It lost about 15% of its | :07:33. | :07:37. | |
value. All of that uncertainty led to more money flowing into the safe | :07:38. | :07:41. | |
haven Japanese yen, which kept rising, and all he could do was | :07:42. | :07:46. | |
wring his hands. All of this while, the Chinese yuan kept falling. Then | :07:47. | :07:52. | |
Trump inflation hit. He won the White House and the US dollar | :07:53. | :07:56. | |
soared. Good news that the dollar but bad news for emerging market | :07:57. | :08:00. | |
currencies like the Malaysians currency which at explores bubbles | :08:01. | :08:04. | |
since the 1998 financial crisis. And through it all, the Chinese yuan | :08:05. | :08:08. | |
kept falling, even as the government kept pumping in cash to prop it up | :08:09. | :08:14. | |
-- fell to its lowest level. At the beginning of 2017, the US dollar is | :08:15. | :08:18. | |
at its strong is level in years. It looks set to stay that way. The | :08:19. | :08:27. | |
British pound has lost a fifth of its value since the Brexit vote. A | :08:28. | :08:30. | |
new normal, perhaps? And the Japanese yen, whatever Donald Trump | :08:31. | :08:33. | |
could do, he did, and now it is weakening against a strong dollar. | :08:34. | :08:37. | |
What about the Chinese yuan? It looks set to continue its buy much | :08:38. | :08:41. | |
downwards against the US dollar. For now, at least -- it's much | :08:42. | :08:43. | |
downwards. She has had a busy 12 months as we | :08:44. | :08:52. | |
all have at the BBC. Let's talk more about the Chinese government as far | :08:53. | :08:56. | |
as currency control is concerned. Announcing tighter controls on those | :08:57. | :08:58. | |
wishing to buy foreign currency. Individuals will now have to provide | :08:59. | :09:00. | |
more information to their bank with regards to why | :09:01. | :09:04. | |
they are making the purchase. The tighter controls are part | :09:05. | :09:06. | |
of an array of measures being taken by the government to curb huge | :09:07. | :09:09. | |
capital outflows driven by the Yuan sinking to an eight-year | :09:10. | :09:12. | |
low against the dollar. Let's look at the financial markets. | :09:13. | :09:30. | |
Pretty much no action as far as the share market are concerned around | :09:31. | :09:33. | |
the world because nearly everybody is closed for the brain new year | :09:34. | :09:38. | |
holiday as it were. A bank holiday in most parts of the world -- brings | :09:39. | :09:47. | |
new. Most markets will reopen on Tuesday this week. But they do go, | :09:48. | :09:51. | |
you can have a look at how the currencies are faring as we enter a | :09:52. | :09:58. | |
new year. I will see you send. -- soon. | :09:59. | :10:05. | |
We will look at the International papers shortly. Let's bring you some | :10:06. | :10:14. | |
UK news. Five men have been arrested | :10:15. | :10:16. |