tv Asia Business Report BBC News September 22, 2017 1:30am-1:46am BST
our top story: us president donald trump has announced new sanctions on north korea 10 days after the un announced its own measures. the us sanctions target foreign companies doing business with pyongyang. president trump has signed an executive order aimed at preventing companies and banks from dealing with pyongyang. emergency workers at a school in mexico city have called off their search for children thought to have been trapped. officials said they're still trying to free one adult. and this video is trending on bbc.com. the world's richest woman has died at the age of 94. liliane bettencourt was the heiress to the l'oreal cosmetics fortune. according to forbes, her total wealth is estimated at $39.5 billion. that's all from me now. stay with bbc world news. and the top story here in the uk: the bbc understands that the prime minister will propose a two—year transitional deal for the uk to try to secure a smooth exit from the european union.
theresa may is expected to make the offer in a speech on brexit in italy. now on bbc news, all the latest business news live from singapore. china's credit rating is downgraded over concerns the growing debt pile isa over concerns the growing debt pile is a major financial risk. over concerns the growing debt pile is a majorfinancial risk. new zealanders go to the polls this weekend, a change in government could alter the business environment. good morning, asia. hello, world. welcome to another edition of asia business report. i'm rico hizon. glad you could join us. it isa rico hizon. glad you could join us. it is a friday. china's credit rating has been downgraded ahead of a major meeting. it went from a+ to
a——, making it the last to be downgraded. the waiting drop in 2015. earlier we got a take on the move. you have to realise that china has zero debt. they have won century bond which trades at 212, extraordinary. in terms of direct sovereign debt issued by china, it is irrelevant. the broader observations from the rationale reflects the level of domestic debt in the economy. to be fair, that is nothing new. the rationale that they have employed is strange. it seems to be timed ahead of the congress in 0ctober rather than any economic factor. you are still quite optimistic about china despite the downgrade by the three major rating
agencies. the last in the snp. when fitch did so they were ahead of the curve. they used analysis which snp is reflecting. the decision by moodies early in the year reflects a bit better. what about, as many investment banks are saying, this debt issue, is it an issue? it is absolutely an issue, but not one credit rating agencies shed any light on. it will be the centre of focus at the congress in october, u nfortu nately. we focus at the congress in october, unfortunately. we will look at it from a market perspective to see, and crucially, this is important, whether the government will start deleveraging the economy into 2018— 2019. will they bring in these
changes by next year? we definitely wa nt to changes by next year? we definitely want to see evidence of reform. we have not seen much so far. there is the view the existing government lacks the political will and ability for a reformist mandate. we feel after the congress that would not be the case. what are your plans for the case. what are your plans for the rest of the year? china has been the rest of the year? china has been the outstanding major equity market in the world to date. the benchmark at overseas has returned 45%. chinese investors are extremely happy. john woods. in other news, us president donald trump has ordered new sanctions against north korea over the nuclear weapons programme in the country. the us treasury can to get banks that do business with the regime. they also said the china centre bank has instructed other mainland banks to stop doing business with pyongyang. —— central bank. president trump is ramping up
sanctions against north korea but the in his words, he says he wants to cut off the sources of revenue that find the efforts of north korea to develop the deadliest weapons known to humankind. so this new executive order allows the us treasury department to really target individuals providing goods, services, or technology to north korea. but with no formal relationship with pyongyang, there is really only so much economic hardship washington can impose. it is why the donald trump administration is lobbying other countries that do do business with north korea to quit. these sanctions are very significant because not only does it allow us to sanction individuals and entities, but it allows us to freeze or block any transactions with any financial is a tution anywhere in the world that facilitates any transactions with the blocked person. now, this
announcement comes just days after donald trump's speech to the un, where he put the north korean regime on notice. the united states has great strength in patients, but if it is forced to defend itself or its allies, we will have no choice but to totally destroyed north korea. —— and patience. rocket man is on a suicide mission for himself and for his regime. the president will also be looking to the un to impose tougher sanctions than the ones put in placejust tougher sanctions than the ones put in place just two weeks ago. the trade dispute threatens the sole industry in the us. some have made a case that a flood of cheap solar from pacers china has hurt the
industry. —— places. from pacers china has hurt the industry. -- places. solar energy is one of the bright spots in the us economy, growing faster than the coal and gas industry, creating opportunities for those who make the panels and those who install them. but a trade dispute is dividing this industry. there is not much left of solar manufacturing in the us. this isa solar manufacturing in the us. this is a lawyer for solar world, solar manufacturing in the us. this is a lawyerfor solar world, one solar manufacturing in the us. this is a lawyer for solar world, one of two solar panel makers, who argue a flood of inexpensive imports from countries like china has hollowed out the solar industry in america, and global tariffs are needed. more than 1000 workers were laid off from their facility than 1000 workers were laid off from theirfacility alone. than 1000 workers were laid off from their facility alone. solar world than 1000 workers were laid off from theirfacility alone. solar world is theirfacility alone. solar world is the largest north american producer of solar cells. in the hole us industry, 30 companies in the last nine years were forced to shut down and declare bankruptcy. —— whole.
0ther and declare bankruptcy. —— whole. other players in the industry say that any price hike would in fact kill, not create, jobs in the sole industry. the solar industry is booming. —— solar. the relief they are requesting will slow down the industry by more than 60%. any effort to increase the price of the product, which is what tariffs would do, will causejob loss, not gain. look at the trade deals, they are the worst ever! the america first president. donald trump will have the final say on what penalties should be imposed. if regulators find american solar panel makers do need protection, that is. if they are found to have been harmed, that could leave donald trump in a tough spot. will he stick to his pro— tariff anti— china position, or will
he softened his stance to help other us solar workers? ultimately, american and foreign manufacturers will be following this closely to see what kind of cloud hangs over their industry. michelle fleury, bbc news, new york. is ill and holds a general election on friday and it will be tight. 0n general election on friday and it will be tight. on one hand you have bill english of the ruling national party in powerfor nine bill english of the ruling national party in power for nine years, achieving a budget surplus for two yea rs achieving a budget surplus for two years ina achieving a budget surplus for two years in a row. 0n the other side, labour, jacinda arden, who joined the opposition when she was just 17. she was elected to parliament in 2008 and has made strong gains in upcoming polls. earlier, we asked which party was more market friendly. it has to be the nationals. they represent consistency and have a very strong track record in promoting growth and has a budget surplus. however, under the resurgent labour, they want to
ta ke the resurgent labour, they want to take the country in a different direction in terms of values. they have a lot of money to support growth, but they want better emphasis on health and education, for example. and perhaps a slightly different view on immigration. but labour and the potential kingmaker of the new zealand first party want foreign investment. it is clear where for business emphasis will be representing stability. what about the labour party? what do they bring to the table to boost the economy? they will invest a lot more in terms of social infrastructure in new zealand. they are also proposing a change to the reserve bank in new zealand act, to have an initial target of keeping full employment. that means the rbmz will be less likely to raise interest rates so they can boost growth overall. —— rbnz. they will support the amount
of investment going on in the social pa rt of investment going on in the social part of the economy. that was tony joining us earlierfrom sydney. the markets. the dow jones joining us earlierfrom sydney. the markets. the dowjones industrial average street of seven straight records ended overnight, falling by 52 point. —— streak. the nasdaq also losing ground. analysts cite the us central bank tightening monetary policy for that. i am rico hizon. sport today is coming up next. the top stories this hour: president trump steps up the pressure on north korea, with more sanctions against companies who trade with pyongyang. emergency workers at a primary school in mexico city have called off their search for children thought to have been trapped. officials said they were still trying to free one adult
from the rubble. the boss of ryanair, michael 0'leary, has admitted that a "significant management failure" has caused the cancellation of 2000 flights in september and october. he told the airline's annual general meeting that pilots were now being told to postpone a week of their holiday untiljanuary. pay rises are also being offered in areas where there are recruitment problems. here's our transport correspondent, richard westcott. under fire for cancelling thousand of flights, michael 0'leary, ryanair‘s boss, was not in the most patient mood today. is he feeling the heat? no, we're having a very good year. he is making pilots delay some leave to avoid cutting yet more flights. there is extra money in it for them, there is also evidence some may turn it down. the company admits it messed up
holiday rotors. it has offered bonuses of £2000 for pilots if they work extra days. some will have to reschedule some leave. but i have seen a reschedule some leave. but i have seen a letter supported by many ryanair pilots saying they want to reject this extra money and want new contract instead. they complain about working extremely long hours, being called in the last minute on days off. they see this as a golden opportunity to improve conditions at work. they are under a lot of pressure. they have their schedules changed a lot and are overworked. 0ne changed a lot and are overworked. one person today has 45 hours and 15 minutes of flying in one week. pilots are in high demand right now.
rivals like norwegian have been poaching staff. we have 500,000 pilots today and we need another 500,000 in the next 20 years. that isa 500,000 in the next 20 years. that is a global crisis. everywhere, pilots are needed. a low—cost carrier that is traditionally low—cost means low salaries, that means they are losing pilots. angry pilots keep telling me that this is their big chance to get more secure contracts. but michael 0'leary is not the type to back down. if these crews do pull together and take action, it could mean more cancelled flights for passengers. lots more as always on the website. if you want to get in touch with me and the team on social media, you can do so. time now for all the sports news in sport today. hello, this is sport today, live from the bbc sport centre.
coming up on this programme: diego costa is heading back to atletico madrid as chelsea agree a deal to sell their striker to his former club. jordan spieth is three shots off the lead at the season ending tour championship in atlanta as he looks to claim the fed ex cup and the $10 million prize valentino rossi, just three weeks after breaking his leg, is hopeful of a motogp comeback this weekend. hello and welcome to the programme, where we start with the football news that chelsea have relented and allowed diego costa to return to atletico madrid. the striker helped the blues win the premier league title last season but manager antonio conte said he was free to leave the club. chelsea are understood to have agreed a deal thought to be worth around $70 million subject to personal terms and a medical.