03/04/2017 World Business Report

Now for the latest financial news with Sally

After last week's massive cabinet reshuffle, President Zuma may face

We talk you through what's at stake.

Toshiba shares plunge in Tokyo again on reports it may miss it's results

In a moment we will look at the property market in Beijing as well.

We begin in South Africa where the parliament's speaker

is considering a no-confidence vote request from the opposition

This comes after the country's finance minster, Pravin Gordhan,

and many other cabinet members, were sacked last week

by the President which has had a big impact.

Within hours of Mr Gordhan's removal, the South African currency,

the rand, fell sharply and was down over 5% against the dollar

The share markets were also impacted seeing their biggest drop since 2015

with government bonds and banking stocks falling hardest.

Mr Gordhan's successor, Malusi Gigaba, has called

for a radical transformation of the economy

but as yet there are few details of what his plans are.

However it is likely the cost of borrowing will increase further.

And that is because of a likely downgrade by the credit

It is due to deliver its verdict on Friday.

Many analysts now predict South Africa to be downgraded

William Attwell, Senior Analyst - Sub-Saharan Africa at

Good morning. You are from Cape Town so you know this economy extremely

well. How is that doing? We have shifted to a low growth trajectory.

Last year analyst were looking at whether the economy could enter

recession but some indicators have turned around. We have been moving

to slightly more positive growth, still below 1% but nevertheless

positive. With Pravin Gordhan at the helm, he had put in some good

elements to get the economy going? He had placed to meet credit ratings

and this improved sentiment was South Africa. Pravin the currency is

one of the strongest. A dramatic cabinet reshuffle by President Zuma,

why? It is a leader the ANC, the ruling party, leadership election

and what this represents is a power grab by President Jacob Zuma to try

to control access to financial resources of the State which is

important to the machine which is brought into office and kept him

that, as well as silencing and sidelining some of his critics in

the Cabinet. What do we know about Malusi Gigaba? No financial

experience. He was the former home affairs Minister. He is a supporter

of President Zuma? Absolutely. What people are worried about is that he

will turn a blind eye to some of the corruption which character rises

this administration. Will the vote of no-confidence happen? Not

immediately, Parliament is not sitting at the moment and the

Speaker is a close ally of President Zuma. We will watch this space and

any news we will update you. Toshiba shares fell as much as 9.4

percent this morning, before recovering somewhat,

on reports that it may miss its earnings deadline

for the third time. It's now expected that its shares

will be demoted to the second section of the Tokyo

Stock Exchange in August. Mriko Oi is in our Asia

Business Hub in Singapore. The third time it is missing the

earnings report that what does it mean? Surely it will get into

trouble with the authorities? It basically means its shares of will

likely be demoted to the second section or even face delisting later

this year. We were supposed to find out its earnings next week that

there have been reports the company is likely to miss it yet again, for

the third time and that is my shares have been falling sharply in Tokyo

this morning. Interesting news is well on Toshiba, it's memory chip

unit, shareholders reluctantly agreed to sell it, and over the

weekend one newspaper reported the names including Apple, Amazon on,

and Google, are interested in joining ten other potential readers

say that will be an interesting bidding war and it is an important

dimension that in Tokyo there is quite a lot of pressure to keep

practically these crown jewel of Toshiba instead of selling to a

foreign buyer. Thank you very much indeed.

Now, lets take a look at the property sector in Asia.

Are we experiencing a boom, a bust or a bubble?

Our collegues in the region have been busy looking at the property

market all over Asia, and we begin today

in China, where housing has become unaffordable for many young adults.

Stephen McDonnell sent this report from Beijing.

It starts off the evening, rush-hour in Beijing and the young workers are

pouring out into the massive subway are low. They will join the commute

to the outer suburbs. There is no way most people young people here

can afford to buy a flat downtown in fact it is hard to imagine how most

of them could afford to buy a property anywhere in the city.

It is true, there are plenty of cities in the world where property

is expensive, is it me, Paris, Singapore, you name it. Here people

's salaries could be half or even less..

So who is buying property here? Investors. The government is trying

to rein in this explosion by limiting access to credit in the

hope that China is young workers may one day be able to buy a place of

their own.. It has been a record quarter for

Tesla.. The electric car maker said

that was a 70% rise on the same It is a rebound for the US company

after production problems late last year resulted in a 9% fall

in deliveries in the fourth quarter. Let's quickly show you financial

markets that the start of the trading week. We mention Toshiba top

a survey gauges business sentiment and it has gone up again. So

business sentiment is improving in Japan and that has boosted the

Nikkei slightly. I will see you soon.