:00:19. > :00:21.A green light not just for Abe but for Abenomics.
:00:22. > :00:23.His election win means that Japanese Prime Minister Shinzo Abe
:00:24. > :00:31.can continue his economic reform programme.
:00:32. > :00:33.Will Londoners be able to breath a little easier?
:00:34. > :00:36.Today sees the introduction of a 10 pound a day -
:00:37. > :00:39.about 13 dollars - charge for the most polluting
:00:40. > :00:52.In a minute we'll find out if electric car maker Tesla
:00:53. > :00:54.will begn to manufacture its cars in China.
:00:55. > :00:58.the outlook for the world's third biggest economy will be shaped
:00:59. > :01:01.That's because Japan's Prime Minister won another term
:01:02. > :01:05.He framed the poll as an attempt to get public backing
:01:06. > :01:08.for his handling of the threats from North Korea but his ambitious
:01:09. > :01:12.and important economic reforms were also on the line.
:01:13. > :01:15.His second stint as Prime Minister began in 2012.
:01:16. > :01:18.And if the main stock index the Nikkei is anything to go by he's
:01:19. > :01:31.been a good influence for the economy.
:01:32. > :01:42.But one of the big problems is that whilst inflation has been going up,
:01:43. > :01:47.To try and boost inflation Mr Abe has overseen
:01:48. > :01:54.the latest part of which - worth almost $18 billion -
:01:55. > :01:58.It will be spent on childcare and boosting productivity.
:01:59. > :02:01.It's being paid for by a 2% increase in sales tax.
:02:02. > :02:05.The plan to make it 10% from October 2019 was a big election issue.
:02:06. > :02:07.Joining us now is Seijiro Takeshita, Professor of Management
:02:08. > :02:17.and Information at University of Shizuoka.
:02:18. > :02:25.The different reforms he has been trying to put into place, different
:02:26. > :02:29.stimulus packages and reform, these are the three arrows he referred to.
:02:30. > :02:38.But the reform one has not really worked yet. No it hasn't. It will
:02:39. > :02:51.take some time. Transitions usually take some time. It needs to be
:02:52. > :02:58.negotiated by social contacts. There should be focus on a particularly
:02:59. > :03:01.after the first to arrows, that should be flowing into increases in
:03:02. > :03:07.wages, which has not happened. And that is some reason that conception
:03:08. > :03:11.has not improved. The ball is definitely on the court of the
:03:12. > :03:20.corporate is, who should be raising wages. But why don't they? Actually,
:03:21. > :03:29.firstly, it is the Conservatives of the company here. Risk avoidance is
:03:30. > :03:33.their keyword. I don't think they are really finding the exact June of
:03:34. > :03:37.the things that they really want to invest in. So from these two
:03:38. > :03:41.reasons, they are still reluctant, especially with the ambiguity of
:03:42. > :03:46.external factors. Corporate is not really jumping to make investments
:03:47. > :03:52.at the moment. And where are the entrepreneurs? A lot of people say
:03:53. > :03:56.the corporate tax rate, at 36%, that is not the kind of place you want to
:03:57. > :04:00.start a new business. That is another reason why the opposition
:04:01. > :04:04.fell. The whole party was saying that they will go to tax more on the
:04:05. > :04:08.cash reserves by the corporate is, which is totally an absurd policy.
:04:09. > :04:13.But what the government needs to do is to induce entrepreneurship. We
:04:14. > :04:19.have a lot of inventions and innovation within companies, but we
:04:20. > :04:24.need to have new entrepreneurs that should be propping up. But
:04:25. > :04:27.unfortunately, the trend is going other ways, even for younger
:04:28. > :04:29.generations, like new colleges. Seijiro Takeshita, Professor of
:04:30. > :04:34.Management and Information at University of Shizuoka, good to talk
:04:35. > :04:35.to you. Thank you for much. -- thank you very much.
:04:36. > :04:38.Electric car maker Tesla reaffirmed on Sunday it is talking
:04:39. > :04:41.with the Shanghai municipal government to set up a factory
:04:42. > :04:45.in the region and expects to agree on a plan by the end of the year,
:04:46. > :04:49.but declined to comment on a report that a deal has been reached.
:04:50. > :04:53.Sharanjit Leyl is in our Asia Business Hub in Singapore.
:04:54. > :05:00.Sharanjit, is this a real story? Is it happening? It is. Tesla
:05:01. > :05:05.essentially confirmed that they wanted to build cars in China, but
:05:06. > :05:08.has declined to comment on a Wall Street Journal report that a deal
:05:09. > :05:12.had been agreed on. For one, there are a number of major hopes that
:05:13. > :05:15.they will have two jump through to make such a deal happen. For
:05:16. > :05:20.instance, China levies a pretty 5% duty on sales of imported vehicles,
:05:21. > :05:30.and it is not allowed foreign automakers to establish wholly owned
:05:31. > :05:33.factories in the country. Tesla also wants to expand its presence in
:05:34. > :05:35.China's growing electric vehicle market, without promoting its
:05:36. > :05:38.intellectual property or independence. There is a real worry
:05:39. > :05:41.that if it links up with local manufacturers, as other foreign
:05:42. > :05:44.firms have done, it will potentially had to share some of its technology
:05:45. > :05:47.around electric vehicles. The Chinese government has considered
:05:48. > :05:50.allowing foreign automakers to set up wholly owned factories in
:05:51. > :05:53.free-trade zones in part to encourage lots more production of
:05:54. > :05:58.electric and hybrid vehicles. They really have all these targets which
:05:59. > :06:03.they want to hit to try and lower emissions. It is incredibly polluted
:06:04. > :06:09.air. The government call these -- calls these new and 80 vehicles, are
:06:10. > :06:15.essentially they want to meet ambitious sales quotas that is. --
:06:16. > :06:21.new energy vehicles. It has said that this could be produced in
:06:22. > :06:31.free-trade areas, which would give the $50 billion electric cart market
:06:32. > :06:34.a big shot against its rivals in the fast-growing area. Thank you very
:06:35. > :06:36.much for that, Sharanjit. Many of the world's big cities
:06:37. > :06:39.suffer from high pollution levels and London is bringing
:06:40. > :06:42.in a new measure to try From today, motorists who drive
:06:43. > :06:45.the highest polluting cars into the centre of London will have
:06:46. > :06:49.to pay an extra daily ?10 emissions surcharge - about 13 dollars -
:06:50. > :06:52.almost doubling the cost of driving With me is Roger Nickells,
:06:53. > :07:05.CEO of BuroHappold Engineering. You advise on their skin, didn't
:07:06. > :07:12.you, and advise other cities on this order policy. Does it actually work?
:07:13. > :07:20.Yes, because it raises consciousness and raises awareness. -- you add
:07:21. > :07:25.bite on this, didn't you? This is great for a city to start taking
:07:26. > :07:31.action. -- advised on this. It is not just a revenue raiser, but about
:07:32. > :07:34.changing behaviour and creeping awareness, and allowing the city to
:07:35. > :07:38.take stronger action is as time moves on. What can we do? Are the
:07:39. > :07:46.stronger actions Bozdag is this just the beginning? At the moment, the
:07:47. > :07:53.mayor is at consultation and tragic rate and emissions zone for London.
:07:54. > :07:56.-- other strong actions? -- is this just the beginning? If you look at
:07:57. > :08:00.cities like Berlin in Copenhagen, they have all taken strong action.
:08:01. > :08:05.They have actually banned the highest pollution vehicles from
:08:06. > :08:07.those city centres. Where does London rank
:08:08. > :08:21.Copenhagen made this decision in 2008 will stop -- where does London
:08:22. > :08:28.rank amongst these cities? The whole kind of philosophy for dealing with
:08:29. > :08:32.this issue in London, I think, is not to make things worse. But that
:08:33. > :08:37.is not strong enough for the challenge we face. Is this a
:08:38. > :08:41.question of actually bringing pollution levels down to a certain
:08:42. > :08:46.level? You know, we can live with a certain level, and it won't make
:08:47. > :08:50.much difference, or you get Beijing levels, where it is really heavy,
:08:51. > :08:54.and it won't come here, but we have lived with this for a while? We
:08:55. > :08:58.would advise every city leader that this is not just a kind of plastic
:08:59. > :09:02.issue. This is something very, very real. 9000 deaths in London
:09:03. > :09:06.associated with pollution in the last year. And for every city to
:09:07. > :09:09.remain economic and competitive, it is to create an environment where
:09:10. > :09:13.people want to live. You have to create a kind of balance between
:09:14. > :09:17.well-being, if you like, and the needs of the city. And people make
:09:18. > :09:21.conscious decisions about where they want to be, and where they want to
:09:22. > :09:28.live. And so city leaders can do all sorts of things to improve their
:09:29. > :09:33.situation. Roger Nickells, thank you very a much indeed for joining us. A
:09:34. > :09:38.quick moment to look at the markets. I did not even get the Nikkei up.
:09:39. > :09:42.But it is up sharply. The other Asian markets are moving up because
:09:43. > :09:47.of Shinzo Abe's victory in the election in Japan. You see the oil
:09:48. > :09:52.price is up there, but just a touch, just half a percent. I'm not sure
:09:53. > :09:58.what the thing at the bottom is. That is puzzling. We'll bring you
:09:59. > :10:02.more information on that strange sign at the bottom of that board.
:10:03. > :10:05.But we will see later.