0:00:00 > 0:00:01Now it's time for World Business Report.
0:00:15 > 0:00:18An end to stimulus or just a slowdown in bond buying?
0:00:18 > 0:00:21Economists will pour over the European Central Banks statement
0:00:21 > 0:00:22later for clues about the bank's plans.
0:00:23 > 0:00:25And is the little birdie flying high yet?
0:00:25 > 0:00:26Twitter will report its latest results.
0:00:26 > 0:00:30Lots of new features over the last year, but will it be enough
0:00:30 > 0:00:36to ignite user growth.
0:00:43 > 0:00:46Welcome to World Business Report.
0:00:46 > 0:00:50I'm Ben Bland.
0:00:50 > 0:00:53Economists are on tenterhooks, awaiting the European Central Bank's
0:00:53 > 0:00:54policy meeting later.
0:00:54 > 0:00:58No, they are not expecting a rate hike, but hoping for clues as to how
0:00:58 > 0:01:00and when the bank will bring large-scale bond purchases
0:01:00 > 0:01:02to an end.
0:01:02 > 0:01:05That makes it one of the most keenly anticipated meetings since early
0:01:05 > 0:01:092015 when the program was unveiled. Expectations are the bank will cut
0:01:09 > 0:01:11monthly asset purchases from the present 60 billion euros -
0:01:11 > 0:01:14that's $71 billion - and stretch them out for as long
0:01:14 > 0:01:17as capacity allows while it waits for consumer-price growth
0:01:17 > 0:01:19to pick up.
0:01:19 > 0:01:21But are we really at such a turning point?
0:01:21 > 0:01:31Or will it take a long time for markets to "normalise?"
0:01:32 > 0:01:41With me is Vicky Pryce, Chief Economist at CEBR.
0:01:41 > 0:01:46Do you think we are likely to see the ECB take down its bond buying
0:01:46 > 0:01:51programme?Not immediately. It will say that it intends to. The
0:01:51 > 0:01:55expectation is that from maybe January we will see a reduction from
0:01:55 > 0:01:59the 60 billion euros of bond buying per month. This is of course the
0:01:59 > 0:02:02government bond buying in the secondary markets. There is still
0:02:02 > 0:02:05money they are paying buying corporate bonds, of course. We will
0:02:05 > 0:02:10see what happens to that. That will be reduced, the government bond
0:02:10 > 0:02:14buying in secondary markets, to possibly 30 or 40 billion per month
0:02:14 > 0:02:20from, perhaps, January. The intention would be, I think, to wait
0:02:20 > 0:02:24and see what happens to the economy as a whole. In other words, they
0:02:24 > 0:02:28would want to carry on through as long as they possibly could buying
0:02:28 > 0:02:33those bonds over a period of time, maybe an extra year, because of
0:02:33 > 0:02:38course Mario Draghi believes strongly that the only reason, or
0:02:38 > 0:02:42the main reason, that the European economy is doing as well as it is
0:02:42 > 0:02:45now, is because of his unconventional monetary odyssey we
0:02:45 > 0:02:49have seen with quantitative easing, the reduction in rates to negative,
0:02:49 > 0:02:53and of course the changes in the banking system for companies. Until
0:02:53 > 0:02:58he started those measures, in fact, lending was falling and the economy
0:02:58 > 0:03:04of the eurozone was in recession for some time.Is that why, if eurozone
0:03:04 > 0:03:07growth has been better than expected, you might assume the bank
0:03:07 > 0:03:11would the more ready to move? But he attributes that growth to the
0:03:11 > 0:03:15success of the bank's approach, hence carrying on with it for
0:03:15 > 0:03:21longer, albeit perhaps at a slightly less speedy pace?Absolutely. If you
0:03:21 > 0:03:25look at his previous statements, every time he has not actually moved
0:03:25 > 0:03:29rates up, or has continued with the corporate bonds and the government
0:03:29 > 0:03:34bonds that he is buying, remember, he started with 60 billion per
0:03:34 > 0:03:37month, then went up to 80, because things were not responding as fast
0:03:37 > 0:03:42as he would like, then went down to 60. We have seen this change. The
0:03:42 > 0:03:45markets are ready for that. Every conference speech he has given after
0:03:45 > 0:03:50the meeting with the ECB, and every press release he has put out, does
0:03:50 > 0:03:53make that strong point. That actually, just because of his
0:03:53 > 0:03:57actions, he has seen the fiscal side being either negative or neutral.
0:03:57 > 0:04:03While that happens, the ECB is really the only game in town. And he
0:04:03 > 0:04:09knows that. And so he will be wary about changing that stance very
0:04:09 > 0:04:14radically, because we still have problems in a number of countries.
0:04:14 > 0:04:17Unemployment is still high in places like Spain and Greece. There are
0:04:17 > 0:04:20problems with what is going on in Catalonia. So there are concerns
0:04:20 > 0:04:25about growth for the future. There are still huge debt problems in a
0:04:25 > 0:04:28number of countries, where the debt overhang is enormous and must be
0:04:28 > 0:04:32dealt with, not just increase also Italy and Spain. And of course we
0:04:32 > 0:04:36still have problems with Ireland and Portugal. That is still there. In
0:04:36 > 0:04:40addition, we have a banking sector which is in some ways still in
0:04:40 > 0:04:44crisis. They have very large non- performing the -- non-performing
0:04:44 > 0:04:48loans in a number of countries which they need to deal with. All that
0:04:48 > 0:04:52suggests to me that he will be cautious in terms of starting to
0:04:52 > 0:04:54tighten up.Vicky Pryce, thank you.
0:04:54 > 0:04:56Any wannabe hobbits out there, beware.
0:04:56 > 0:04:59If you have a dream of settling in Middle Earth, or New Zealand
0:04:59 > 0:05:03as it's known to you and me, there's just been a snag.
0:05:03 > 0:05:05Rico Hizon is in our Asia Business Hub in Singapore.
0:05:05 > 0:05:14So Rico, what's going on?
0:05:14 > 0:05:18You are very own Gandalf, Rico. A guide, a counsellor, with a
0:05:18 > 0:05:25mischievous sense of humour.Do I look old like Gandalf?It was the
0:05:25 > 0:05:29mischievous sense of humour I was thinking of.I am sorry that your
0:05:29 > 0:05:32plans will have to change, but newly elected Prime Minister Jacinto
0:05:32 > 0:05:36Dearne wants to clamp down on foreign property ownership, which
0:05:36 > 0:05:43has led to soaring property prices and a housing crisis. -- Jacinda
0:05:43 > 0:05:48Adern. It only applies to nonresidents. So it you are thinking
0:05:48 > 0:05:51of buying one you have to kiss the dream goodbye. Chinese investors
0:05:51 > 0:05:56have been among the biggest offshore buyers, and reports say that hedge
0:05:56 > 0:06:02fund managers are buying farms and rural properties, anything they can
0:06:02 > 0:06:07get a hold of, and this is also due to the surge in the New Zealand
0:06:07 > 0:06:09immigration website from Americans logging on after Donald Trump won
0:06:09 > 0:06:13the presidency last year. Apparently the number of Americans who applied
0:06:13 > 0:06:19programmes of citizenship has risen by 70%. Well, Ben, the ban follows
0:06:19 > 0:06:22fears that overseas buyers are putting too much pressure on prices.
0:06:22 > 0:06:27There is also low interest rates, limited housing stock, and
0:06:27 > 0:06:33immigration driving up prices in recent years. Here is another
0:06:33 > 0:06:37important fact for New Zealanders. Only one quarter of adults own their
0:06:37 > 0:06:43own property now, compare to 50% in 1991. Soaring prices have put home
0:06:43 > 0:06:47ownership out of reach for many residents.Rico, many thanks. We
0:06:47 > 0:06:49will see you later.
0:06:49 > 0:06:51Is Twitter facing a crisis of confidence?
0:06:51 > 0:06:53The micro-blogging site is releasing corporate results later,
0:06:53 > 0:06:56and many will be looking to see if its popularity is waning.
0:06:56 > 0:06:59This is the number they need to beat: 328 million
0:06:59 > 0:07:00monthly active users.
0:07:00 > 0:07:03That was the figure for both the first and second
0:07:03 > 0:07:05quarters this year.
0:07:06 > 0:07:09In May, the Chinese micro-blogging site Weibo overtook Twitter
0:07:09 > 0:07:12in active users, 340 million, up 30% from 2016.
0:07:12 > 0:07:14The once champion of free speech, Twitter announced earlier
0:07:14 > 0:07:18in the month that it will implement new rules to make the platform free
0:07:18 > 0:07:20from hate and abuse, targeting unwanted sexual advances,
0:07:20 > 0:07:22hate symbols and tweets glorifying violence.
0:07:22 > 0:07:24And of course Twitter, like other social media,
0:07:24 > 0:07:27has pledged to be more transparent about advertising: who is paying,
0:07:27 > 0:07:28and to what end.
0:07:28 > 0:07:48But is that all enough to restore trust in Twitter?
0:07:48 > 0:07:55It will be an early morning for Twitter, unlike other tech titans,
0:07:55 > 0:07:57Twitter reports their earnings before markets open on Thursday.
0:07:57 > 0:08:02That means Jack Dorsey and his colleagues will be up well before
0:08:02 > 0:08:07their 5am call with investors. Hopefully they will have some good
0:08:07 > 0:08:12news, but that may not be the case. Some of the same problems continue
0:08:12 > 0:08:16to plague Twitter. Their user growth. At the beginning of the year
0:08:16 > 0:08:19they added 9 million new users. In the following quarter that dropped
0:08:19 > 0:08:24to 1 million. Many analysts are expecting the same for this quarter.
0:08:24 > 0:08:31It isn't just how many people have joined the platform. The question
0:08:31 > 0:08:35is, how active are they on the site? Working in Twitter's favour is that
0:08:35 > 0:08:39they are trying new things. They are experimenting with lengthening
0:08:39 > 0:08:44tweets from 140 characters to 280, and they have added a new feature
0:08:44 > 0:08:48called Happening Now, which lets users see events happening nearby.
0:08:48 > 0:08:51Finally, there is the issue of how Twitter handles the various
0:08:51 > 0:08:55accounts. It will be a precursor to Twitter's appearance before
0:08:55 > 0:08:58lawmakers in Washington next week, where they will likely face a
0:08:58 > 0:09:00grilling.
0:09:00 > 0:09:03Deutsche Bank has agreed to pay $220m to resolve a US investigation
0:09:03 > 0:09:04into its manipulation of interest rates.
0:09:04 > 0:09:07It is the latest settlement stemming from banks' involvement
0:09:07 > 0:09:09in the rigging of the benchmark Libor rate.
0:09:09 > 0:09:13The sum is more than twice the $100m British bank Barclays agreed to pay
0:09:13 > 0:09:17last year to end a similar probe.
0:09:18 > 0:09:21And drinks giant Coca Cola is the latest to beat market
0:09:21 > 0:09:25expectations.
0:09:25 > 0:09:28It reported earnings of 50 cents a share in the third quarter,
0:09:28 > 0:09:31while operating revenue came in at just over $9 billion.
0:09:31 > 0:09:34Coca-Cola's results were helped by the recent relaunch of Coke Zero
0:09:34 > 0:09:41in the US, as it looks to offer healthier, lower-calorie drinks.
0:09:41 > 0:09:45Let's take a quick look at the markets before we go.
0:09:45 > 0:09:48Asian markets were largely muted Thursday, tracking a retreat
0:09:48 > 0:09:50on Wall Street as fears over the progress of US
0:09:51 > 0:09:53President Donald Trump's tax cut plans dampened investor sentiment.
0:09:53 > 0:09:57But Tokyo edged up slightly, bolstered by positive corporate
0:09:57 > 0:10:00earnings and a weak yen that boosts Japanese exporters' bottomline.
0:10:00 > 0:10:03US stocks closed lower after hitting several records in the last month,
0:10:03 > 0:10:05with disappointing reports from companies including AT&T
0:10:05 > 0:10:07and Boeing prompting a sell-off across the market.
0:10:07 > 0:10:08That is it