09/05/2017 World Business Report


09/05/2017

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and children have been rescued from the Mediterranean

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Now it's time for World Business Report.

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The cosy relationship between big business and government -

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voting is under way in South Korea, but will new leadership make

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And, the wasteland. American shopping mauls are deserted and

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retailers are suffering, so what is President Trump planning to do about

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it? Also in the programme,

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Rico will join us from Singapore - he's seen the latest

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International Monetary Fund report But first, today, the people

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of South Korea are voting The election comes after

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the former head of state - Park Geun-hye - was removed

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from office as part of an ongoing The South Korean economy bounced

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back strongly following the 2008 financial crisis, but in recent

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years, quarterly growth has The current frontrunner,

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Moon Jae-In, has vowed to boost government spending and create

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over 800,000 new jobs His main rival - Ahn Cheol-Soo -

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feels the government should be more cautious with its spending plans,

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but both candidates are united over South Korea is still reeling

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from a "money-for-influence" scandal which has seen several

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of the country's top executives This includes the bosses of massive

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corporations such as Samsung, In the past, large conglomerates

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were credited with South Korea's rise to economic prominence,

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but now many experts are questioning whether the country has become too

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over-reliant on the so-called To give you a sense of scale,

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the biggest company in South Korea is Samsung - the group spans every

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aspect of life and its business accounts for roughly 20%

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of the country's GDP growth. Currently the ten biggest companies

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in South Korea account for nearly a quarter of the country's total

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corporate tax revenue. Joining us now from Seoul

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is the journalist Jason Strother. Just tell us a bit more about Moon

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Jae-In, the frontrunner. He ran against Park Geun-hye in 2012 and

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lost, why is he so popular this time? Well, Moon Jae-In has wanted

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this job for a very long time. He is part of the generation that helped

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bring democracy to South Korea in the 1980s. He was an aid to a

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president from 2002- 2008. He did lose to Park Geun-hye by not an

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entirely large margin in 2012. But ever since protest began against the

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former president at the end of last year, he was out there at the

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peaceful candlelight vigil is. He wanted to be amongst the people, to

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show them that if he is elected, he will do away with the cosy ties

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between the political and business elite. In recent months, we've had

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the perfect storm of an impeached President and the boss of Samsung

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facing criminal charges. Many are arguing, is this really what will

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bring change in South Korea at last? Do you think that is the case, and

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if so, is the new president going to be able to deliver it? I think every

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president, no matter what their political persuasion is, has wanted

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to reduce the powers of the economic companies and their dominance over

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the economy. That is easier said than done. There are many linkages

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between the political class and the business class. If Moon Jae-In is

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elected, he certainly has a mandate to try his best to do away with

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these ties. But it will prove to be difficult, sure. In terms of the

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economy, it has not been performing that well but it has also not been a

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disaster. Companies like Samsung, despite corruption and problems with

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their phones, they have still seen profits rise. What will Moon Jae-In

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bring to the economy? We have to separate the campaign promises from

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what is realistic. I am not too sure if Moon Jae-In, with his pledges to

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create hundreds of thousands of jobs, working out of a civil servant

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office, will that really make a difference? Can he really live up to

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these expectations that many voters have hung on him? He is facing a

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strong challenge, although he does have a clear lead right now. If the

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Conservatives were to pull ahead and come ahead with it to read, we could

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expect to see very much the same in terms of business relations that we

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have seen for the past ten years. Thank you for that. We will keep an

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eye on the outcome of that presidential election.

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Much attention has been paid to the loss of manufacturing

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But in the last few months alone, more jobs have been lost in retail

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than exist in the entire coal industry.

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Despite years of steady recovery and a pick up in wages,

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Samira Hussain reports on a crisis that can be seen from the boutiques

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New York City, known for Broadway shows, great restaurants and

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shopping. Oh, the shopping. But there is a seismic shift happening

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in American retail. It is even evident right here in the big Apple.

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The red parts on this map show that vacant storefronts in New York City.

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When they close, they take jobs with them. New York City clothing stores

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have been shedding jobs for the last three years. Overall, the US economy

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has lost more than 90,000 retail jobs since October 2016. There were

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too many stores built out, too many stores, too much space, too mount

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inventories. Then we had the Internet, that has also had a big

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impact. The story is repeating itself across America. This is what

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is left of this small, showing the demise of the American shopping

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centre. It's lunchtime and I'm in the food court. Normally it would be

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really busy, but as you can see, it is rather quiet. This is what

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happens when the big department stores leave. They take the

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customers with them. In just the last two years, both Macy's and

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JCPenney have closed their doors at this more. The future of Sears is

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looking rocky. This store is also collateral damage. There are not a

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lot of stores left. We still have hope. In the absence of customers,

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hope may be all this store has. But it is a hope shared by the new

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owners of the more, who believe they can turn it around. Nationwide, the

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outlook for retail looks bleak. Nationwide, the outlook

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for retail looks It has been a tough few years

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for the global economy, but the International Monetary Fund

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predicts the Asia Pacific region Rico Hizon is in our

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Asia Business Hub in Singapore. Rico, that sounds encouraging,

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what else did they say? They said a whole lot of things. The

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IMF forecast in Asia is picking up momentum, with the Chinese economy

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expected to perform better at 6.6%. All regional economic expansion will

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move up to 5.5%, making it the world 's fastest growing economy. There

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are problems. The influential multinational body noted risks to be

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able to sustain this growth. One risk is that there is a rapidly

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ageing population. Asian economies must learn from the experience of

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Japan. Number two, the big buildup of borrowing in China in the

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aftermath of the global financial crisis. Also, the IMF wants tighter

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regulations, which could change. -- change things. There are also

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protectionist measures that will be taken into account. Thank you.

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Taking a look at the markets now. We got results from Toyota and

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Mitsubishi, they are still coming, there is some nervousness. Sony is

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looking good and they could have some better profits news. Their

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shares are climbing, that is interesting. That is how markets are

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faring right now in Asia, I will be back soon with a look at the

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morning's

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