08/08/2017 World Business Report


08/08/2017

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overthrew the government three years ago.

:00:00.3:59:59

Now it's time for World Business Report.

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Could a vote by secret ballot oust South Africa's president,

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We talk you through what's at stake.

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Plus formula milk is big business in Hong Kong.

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We assess the obstacles there to breast-feeding.

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China's appetite for stout beer is soaring.

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faces another vote of no confidence in parliament.

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This time it will be a secret ballot.

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Mr Zuma has been under constant pressure over everything

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from corruption allegations to a controversial cabinet reshuffle

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that saw his widely respected finance minister, Pravin Gordhan,

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That prompted two credit rating agencies, Standard Poor's

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and Fitch, to downgrade South Africa's credit worthiness

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to junk, hugely increasing borrowing costs.

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And in June, the economy, once the continent's largest,

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fell into a second recession in a decade.

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Figures out yesterday show the country's unemployment rate

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remained unchanged at close to 28% in the second quarter.

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That's about five million more than in 2009.

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With me is William Attwell, senior analyst, Sub-Saharan Africa

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Nice to see you again, William. Thanks for having me on. What do you

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think will be the outcome of this boat? He is known as the great

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survivor. Will he survive again? Yes, so essentially Jacob Zuma is

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fairly safe actually. He has had nine votes of no confidence before

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and survived all of them. This is of course different with the secret

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ballot, which the opposition says would protect those ANC MPs who

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might vote against him. Certainly there are several MPs who've come

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out very publicly, saying they would vote with the opposition, but

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ultimately, within the party, the majority of the MPs, the opposition

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would need 50 to vote with them, but they are not going to get those

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numbers, simply because of those MPs fearing a backlash through some sort

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of internal investigation later. So what will finally toppled Jacob Zuma

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then? I know he is stepping down as head of the ANC in September this

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year, but he remains president in theory since 2019. I suppose Zexit,

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as you could call it, will happen. It's a matter of when rather than

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if. Till 2019, he will hope to stay in power by having his former wife

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the head of the party, which he hopes will protect him, perhaps

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allow him to stay on Npower little longer, and hopefully avoid

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prosecution in his eyes. In the meantime, what will happen to the

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South African economy? It's taken quite a heavy hit. We mentioned the

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event, Pravid Gordan being shuffled out of his position. You mentioned

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the rand, just after the secret ballot was announced, it increased

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2% against the dollar. Essentially any meaningful reforms that can

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improve the economic situation, we are forecasting considerably less

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than 1% growth this year. Basically all reforms that would help redress

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the situation are off the table. Internal politicking will dominate

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the headlines for the next five months. Thank you very much. Of

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course we will give you the outcome of that secret ballot as an when it

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happens in South Africa. Apparently it is now eclipsing

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the American market. Rico Hizon is in our

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Asia Business Hub in Singapore. So nice to have you back.

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You've been missed. Great to be back! It's a lovefest here...

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Goodness me. Chinese drinkers will consume more than 216 million litres

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of stout beer this year, and that number will surpass the United

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States as the top market for this dark brew worldwide, and this is

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according to the latest report from Euromonitor International. For our

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viewers who don't know what stout beer is, it's a dark beer using

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roasted malts, barley, hops, water and yeast, so American drinkers had

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previously taken the crown from the British in 2013, but now both

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markets are just growing at a fraction of the pace in China, where

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brewers such as Diageo and Guinness have benefited from growth of more

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than tenfold over the last four years, so they are projecting

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Chinese demand will more than double to around 660 million litres by

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2021. I'm not a beer drinker, Sally, so for all stout beer drinkers,

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well, this is good news. That's a heck of a lot of beer, I

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have to say! It's good for the manufacturers...

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Thank you. And now it's time for the next

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instalment Today we focus on the great debate

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about breast-feeding In Hong Kong formula is proving

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to be a lucrative business and breast-feeding rates are among

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the lowest in the world. Juliana Liu has been

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finding out why. Sometimes, professional assistance

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is needed to help a new man achieve that perfect latch. Yes. Lactation

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consultant Christine Lam has been teaching breast-feeding for 20

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years. It's still an uphill battle. Quite a lot of mothers in hospital.

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The breast-feeding rate on discharge is very high that when they go home

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it will drop. Nearly all mothers are breast-feeding on discharge from

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hospital in Hong Kong but that rate falls to a third when their babies

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are four months old, one of the lowest rates in the world. Locally,

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this is the average for babies under six months old. One of the reasons

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for the low rates in Hong Kong is the ubiquitous advertising

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artificial baby milk. Two years ago, formula makers spent $370 million on

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advertising, nearly as much as the Health Department spent on disease

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prevention for all ages, according to a group funded by UNICEF. That

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amount is set to fall after the official launch this summer on a

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voluntary code that restrict the marketing of infant formula. The

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city's top health official says the goal is to protect breast-feeding.

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And, if there are problems in running this code, using this

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voluntary nature, then obviously we would consider whether or not that

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legislation should be in place. New man Sheena Shen uses the guidelines.

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She is breast-feeding her one-month-old baby but admits

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continuing will be a challenge. It's difficult to breastfeed as a mother

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because of short maternity leave. It's just ten weeks and I had to

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work six weeks after birth. At a pro breast-feeding event, mothers here

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agree that short maternity leave a long working hours and a lack of

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sleep are all obstacles. They say the government guidelines will help

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but, on their own, they are far from enough.

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Do you think it is fair that formula milk brands

:08:18.:08:21.

The Google employee who wrote a memo critical of the firm's diversity

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initiatives has been fired from the company.

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A male software engineer argued the lack of women in top tech jobs

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was due to biological differences between men and women.

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Google's chief executive responded by saying the contents of the memo

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However, portions of the memo crossed the line.

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The world's biggest hotel chain will partner with Alibaba to tap

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into the growing number of Chinese tourists.

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Marriott International says the joint venture will allow Chinese

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travellers to book rooms using Alibaba's travel website.

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They'll also be able to pay for their hotel bookings

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Chinese travellers are expected to take roughly 700 million trips

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Tesla plans to raise $1.5 billion to pay for production

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By the sounds of it, many will be drinking stout beer on their

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holidays as well! Let's look at the markets:

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Basically, these markets have been going up, up and up, so no

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surprises, a slight fall in Asia today, but look at the Dow, going

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higher and higher again. I'll see you again very soon.

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