:00:00. > :00:16.Now it is time for World Business Report.
:00:17. > :00:21.Will Rupert Murdoch's takeover plans for the pay TV giant be cleared
:00:22. > :00:29.They saw off the speculators and the IMF, but 20 years
:00:30. > :00:31.on from the Asian financial crisis, did Malaysia's risky strategy
:00:32. > :00:46.In a minute we will have more on the markets,
:00:47. > :00:49.and how they are reacting to rumours of higher interest rates.
:00:50. > :00:55.We start with a big day for this man, media tycoon Rupert Murdoch.
:00:56. > :00:58.He may be 86 years old, but his empire-building ambition
:00:59. > :01:02.Today he finds out whether the UK Government will let him take over
:01:03. > :01:05.pay TV giant Sky, or whether to order a full investigation.
:01:06. > :01:09.Mr Murdoch's 21st Century Fox already owns 39% of Sky.
:01:10. > :01:12.The price tag for full control - $15 billion.
:01:13. > :01:14.Sky is one of Europe's biggest broadcasters,
:01:15. > :01:37.The deal has already been cleared by countries across the region,
:01:38. > :01:41.but some claim it would give Mr Murdoch too much control of media
:01:42. > :01:45.It is not the first time he has tried to take over Sky.
:01:46. > :01:48.His company News Corporation abandoned a bid in 2011,
:01:49. > :01:50.following the phone-hacking scandal involving its newspapers.
:01:51. > :01:52.This year a new scandal, sexual harassment allegations
:01:53. > :01:56.at Fox News in the US, has led to calls for the latest deal
:01:57. > :01:59.to be blocked by the UK regulator, Ofcom, something our media editor
:02:00. > :02:02.Amol Rajan asked Mr Murdoch about when he caught up with him
:02:03. > :02:26.From the BBC, are you worried about Ofcom? No. Are you worried about
:02:27. > :02:31.Ofcom? Do you have any concerns about what Ofcom might say about
:02:32. > :02:41.what is happening at Fox? None whatsoever? Fox News is getting
:02:42. > :02:45.record ratings, so I am not worried at all. And you don't think Ofcom
:02:46. > :02:47.will consider what is happening at Fox News? There is nothing happening
:02:48. > :02:49.at Fox News. Nothing, OK? Samantha Tomaszczyk covers mergers
:02:50. > :02:59.and acquisitions at Dealreporter. Is he going to get it, do you think?
:03:00. > :03:04.What is the feeling about this particular deal? I think it is first
:03:05. > :03:08.important to point out that because of the opacity of the process it has
:03:09. > :03:14.been difficult to gauge. It be read both ways, the question of media put
:03:15. > :03:18.plurality. It will be interesting to read the report and you brought up
:03:19. > :03:21.the issue of fitness and propriety which has seen a lot of coverage in
:03:22. > :03:27.the headlines about the sexual harassment case and the racial
:03:28. > :03:31.discrimination cases at Fox. Our analysis shows that risk may have
:03:32. > :03:36.been slightly overblown by the mainstream press that will be
:03:37. > :03:42.interesting see how Ofcom deals with that. Are they, Kabul, the sexual
:03:43. > :03:47.harassment allegations in the United States and here in 2011, the phone
:03:48. > :03:51.hacking scandal, and the way in which the business is run, that it
:03:52. > :03:55.was run unethically in terms of hacking phones in order to be able
:03:56. > :03:59.to get stories, effectively. Is sexual harassment the same? Is it
:04:00. > :04:06.something which you can assess fitness to run a company on? No, it
:04:07. > :04:11.is not the same. I think firstly, as you point out, geographically there
:04:12. > :04:23.are differences, issues with Fox, not with Sky. And the phone hacking
:04:24. > :04:28.of Millie Dowler was so poisonous to the transaction at the time and that
:04:29. > :04:34.has faded with time. From a deal point of view, why does he want to
:04:35. > :04:38.do this? Why does he want to get Sky? There are several reasons, both
:04:39. > :04:43.personal and business. He has tried to do the deal before, as we know,
:04:44. > :04:45.and it is now possibly more important for him because the media
:04:46. > :04:49.landscape is changing and there needs to be a combination of the
:04:50. > :04:54.revenues from the entertainment business and also the news business.
:04:55. > :05:00.Does it work into social media and other things like that, and the new
:05:01. > :05:04.media, is it integral to that? It could be a reflection, because Sky
:05:05. > :05:08.could do better with social media, getting its stories promoted on that
:05:09. > :05:13.and working really online on its offering. You mentioned also that it
:05:14. > :05:20.might be more personal than business driven. How much is personal, do you
:05:21. > :05:24.think? Not more personal because he is a very smart man so it will be
:05:25. > :05:28.done for business reasons of role. But because he has tried to do it
:05:29. > :05:32.before, it is a long-term ambition and I think this time it will be
:05:33. > :05:33.very difficult to walk away. Thank you very much indeed.
:05:34. > :05:37.As we have been reporting all this week, it has been 20 years
:05:38. > :05:40.since the financial crisis that swept through East Asia and wreaked
:05:41. > :05:44.Today we are in Malaysia, which took a massive gamble
:05:45. > :05:47.and brought in capital controls, effectively controlling how much
:05:48. > :05:49.money went in and out of the country, rejecting help
:05:50. > :05:52.from the IMF, and alienating the international financial
:05:53. > :05:58.In the short term, this helped lessen the economic damage,
:05:59. > :06:05.This company makes cranes and lifting equipment for industrial
:06:06. > :06:14.Last year they opened the largest manufacturing facility in Southeast
:06:15. > :06:20.A sign of confidence in future growth.
:06:21. > :06:24.20 years ago its business ranked almost 70% in a matter of months.
:06:25. > :06:27.This man was starting out in the family business in Malaysia
:06:28. > :06:38.We were seeing first customers come back and saying we probably can't
:06:39. > :06:41.take delivery, or we will take delivery but we cannot pay
:06:42. > :06:45.In that year, '97, the damage when we looked at our books,
:06:46. > :06:53.will always be in our memories as the worst ever.
:06:54. > :06:55.But things looked very different at street level.
:06:56. > :06:59.This man has run the store for 46 years and says he did not feel
:07:00. > :07:01.the effects of the Asian financial crisis.
:07:02. > :07:05.TRANSLATION: Business today is not as good as it was in 1997.
:07:06. > :07:14.Then the Prime Minister, Mahathir Mohamad, refused a bailout,
:07:15. > :07:17.and in September 1998 implemented capital controls stopping offshore
:07:18. > :07:24.It was a very frightening thing, to go against the whole world,
:07:25. > :07:28.all of the great opinions of the great economies and all that,
:07:29. > :07:36.it is not something that you do everyday.
:07:37. > :07:38.But I found that there is no other way.
:07:39. > :07:42.So it is a big risk, I know, but I had to take that risk.
:07:43. > :07:47.As a result of our currency control, we recovered very quickly.
:07:48. > :07:49.Now, if you ask around here, most people will tell
:07:50. > :07:52.you that they didn't feel the effects of the Asian financial
:07:53. > :07:59.But 20 years on there are some who say that Malaysia missed
:08:00. > :08:02.a golden opportunity for reform which would have put it
:08:03. > :08:11.This economist tells me capital controls sheltered Malaysia
:08:12. > :08:14.from the worst of the IMF's austerity measures.
:08:15. > :08:22.But it let the government continue with an economic policy favouring
:08:23. > :08:25.the indigenous Malay population and allowed bail outs of ailing
:08:26. > :08:28.All of this hurt Malaysia in the long run.
:08:29. > :08:31.We did have a head start but the economy was growing much
:08:32. > :08:38.faster than them, so after what happened to Malaysia.
:08:39. > :08:45.A question as relevant today as it was two decades ago.
:08:46. > :08:48.In other news: The biggest US banks have all passed the second,
:08:49. > :08:50.tougher part of an annual stress test.
:08:51. > :08:53.The approval by the Federal Reserve could give momentum to White House
:08:54. > :08:58.The Fed has signed off on the firms' plans to distribute money
:08:59. > :09:00.to shareholders rather than keep it as a buffer
:09:01. > :09:04.Capital One, though, was ordered to resubmit its financial plans
:09:05. > :09:14.India's cabinet has approved plans to privatise Air India.
:09:15. > :09:16.The airline, which has debts of $8 billion,
:09:17. > :09:19.has been struggling amid growing competition from low-cost rivals.
:09:20. > :09:20.Privatisation plans have been abandoned before,
:09:21. > :09:23.however, and unions have threatened wide-ranging protests if ministers
:09:24. > :09:40.A quick look at the markets and see what they have been doing. The big
:09:41. > :09:44.move, really, downward moves on all the European markets yesterday but
:09:45. > :09:48.the big move was in currencies. We saw a weaker dollar but a stronger
:09:49. > :09:53.euro and slightly stronger pound as well is that dollar weakening.
:09:54. > :10:01.Don't forget you can get in touch with me and some
:10:02. > :10:03.We will be seeing you in a short while to look at the