tv World Business Report BBC News October 26, 2017 5:30am-5:46am BST
hello, and welcome to bbc news. i'm tom donkin. these are our top stories. a vast funeral procession is making its way through the thai capital, bangkok, as part of a hugely elaborate ceremony for the late king. hundreds of thousands of mourners dressed in black have turned out for his cremation. the leader of catalonia is expected to reveal whether he'll declare independence from spain or call for early elections. in madrid, the senate is making final preparations for a vote to begin unravelling the region's autonomy. voting is getting under way in kenya's controversial re—run of the presidential election, despite a boycott by the main opposition. tens of thousands of security personnel have been deployed to protect voters and polling stations. a court in turkey's ordered the release on bail of eleven human rights activists accused of aiding terrorist groups. they include the local director of amnesty international — all deny the charges. the next hearing is in november. now it's time for world business report.
an end to stimulus orjust a slowdown in bond buying? economists will pour over the european central banks statement later for clues about the bank's plans. and is the little birdie flying high yet? twitter will report its latest results. lots of new features over the last year, but will it be enough to ignite user growth. welcome to world business report. i'm ben bland. economists are on tenterhooks, awaiting the european central bank's policy meeting later. no, they are not expecting a rate hike, but hoping for clues as to how and when the bank will bring large—scale bond purchases
to an end. that makes it one of the most keenly anticipated meetings since early 2015 when the program was unveiled. expectations are the bank will cut monthly asset purchases from the present 60 billion euros — that's $71 billion — and stretch them out for as long as capacity allows while it waits for consumer—price growth to pick up. but are we really at such a turning point? or will it take a long time for markets to "normalise?" with me is vicky pryce, chief economist at cebr. do you think we are likely to see the ecb take down its bond buying programme? not immediately. it will say that it intends to. the expectation is that from maybe january we will see a reduction from the 60 billion euros of bond buying per month. this is of course the
government bond buying in the secondary markets. there is still money they are paying buying corporate bonds, of course. we will see what happens to that. that will be reduced, the government bond buying in secondary markets, to possibly 30 or a0 billion per month from, perhaps, january. the intention would be, i think, from, perhaps, january. the intention would be, ithink, to from, perhaps, january. the intention would be, i think, to wait and see what happens to the economy asa and see what happens to the economy as a whole. in other words, they would want to carry on through as long as they possibly could buying those bonds over a period of time, maybe an extra year, because of course mario draghi believes strongly that the only reason, or the main reason, that the european economy is doing as well as it is now, is because of his unconventional monetary odyssey we have seen with quantitative easing, the reduction in rates to negative, and of course the changes in the banking system for companies. until he started those measures, in fact, lending was falling and the economy
of the eurozone was in recession for some time. is that why, if eurozone growth has been better than expected, you might assume the bank would the more ready to move? but he attributes that growth to the success attributes that growth to the success of the bank's approach, hence carrying on with it for longer, albeit perhaps at a slightly less speedy pace? absolutely. if you look at his previous statements, every time he has not actually moved rates up, or has continued with the corporate bonds and the government bonds that he is buying, remember, he started with 60 billion per month, then went up to 80, because things were not responding as fast as he would like, then went down to 60. we have seen this change. the markets are ready for that. every conference speech he has given after the meeting with the ecb, and every press release he has put out, does make that strong point. that actually, just because of his actions, he has seen the fiscal side being either negative or neutral.
while that happens, the ecb is really the only game in town. and he knows that. and so he will be wary about changing that stance very radically, because we still have problems in a number of countries. unemployment is still high in places like spain and greece. there are problems with what is going on in catalonia. so there are concerns about growth for the future. there are still huge debt problems in a number of countries, where the debt overhang is enormous and must be dealt with, not just overhang is enormous and must be dealt with, notjust increase also italy and spain. and of course we still have problems with ireland and portugal. that is still there. in addition, we have a banking sector which is in some ways still in crisis. they have very large non— performing the —— non—performing loa ns performing the —— non—performing loans ina performing the —— non—performing loans in a number of countries which they need to deal with. all that suggests to me that he will be cautious in terms of starting to tighten up. vicky pryce, thank you. any wannabe hobbits out there, beware. if you have a dream of settling in middle earth, or new zealand as it's known to you and me,
there's just been a snag. rico hizon is in our asia business hub in singapore. so rico, what's going on? you are very own gandalf, rico. a guide, a counsellor, with a mischievous sense of humour. do i look old like gandalf? it was the mischievous sense of humour i was thinking of. i am sorry that your plans will have to change, but newly elected prime ministerjacinto dearne wants to clamp down on foreign property ownership, which has led to soaring property prices and a housing crisis. ——jacinda adern. it only applies to nonresidents. so it you are thinking of buying one you have to kiss the dream goodbye. chinese investors have been among the biggest offshore buyers, and reports say that hedge fund managers are buying farms and
rural properties, anything they can get a hold of, and this is also due to the surge in the new zealand immigration website from americans logging on after donald trump won the presidency last year. apparently the presidency last year. apparently the number of americans who applied programmes of citizenship has risen by 70%. well, ben, the ban follows fears that overseas buyers are putting too much pressure on prices. there is also low interest rates, limited housing stock, and immigration driving up prices in recent yea rs. immigration driving up prices in recent years. here is another important fact for new zealanders. 0nly important fact for new zealanders. only one quarter of adults own their own property now, compare to 50% in 1991. soaring prices have put home ownership out of reach for many residents. rico, many thanks. we will see you later. is twitter facing a crisis of confidence? the micro—blogging site is releasing corporate results later, and many will be looking to see if its popularity is waning. this is the number they need to beat: 328 million monthly active users.
that was the figure for both the first and second quarters this year. in may, the chinese micro—blogging site weibo overtook twitter in active users, 3a0 million, up 30% from 2016. the once champion of free speech, twitter announced earlier in the month that it will implement new rules to make the platform free from hate and abuse, targeting unwanted sexual advances, hate symbols and tweets glorifying violence. and of course twitter, like other social media, has pledged to be more transparent about advertising: who is paying, and to what end. but is that all enough to restore trust in twitter? it will be an early morning for twitter, unlike other tech titans, twitter, unlike other tech titans, twitter reports their earnings before markets open on thursday.
that means jack dorsey and his collea g u es that means jack dorsey and his colleagues will be up well before their 5am call with investors. hopefully they will have some good news, but that may not be the case. some of the same problems continue to plague twitter. their user growth. at the beginning of the year they added 9 million new users. in the following quarter that dropped to1 million. the following quarter that dropped to 1 million. many the following quarter that dropped to1 million. many analysts the following quarter that dropped to 1 million. many analysts are expecting the same for this quarter. it isn't just how expecting the same for this quarter. it isn'tjust how many people have joined the platform. the question is, how active are they on the site? working in twitter‘s favour is that they are trying new things. they are experimenting with lengthening tweets from 1a0 characters to 280, and they have added a new feature called happening now, which lets users see events happening nearby. finally, there is the issue of how twitter handles the various accounts. it will be a precursor to twitter‘s appearance before lawmakers in washington next week, where they will likely face a
grilling. deutsche bank has agreed to pay $220m to resolve a us investigation into its manipulation of interest rates. it is the latest settlement stemming from banks' involvement in the rigging of the benchmark libor rate. the sum is more than twice the $100m british bank barclays agreed to pay last year to end a similar probe. and drinks giant coca cola is the latest to beat market expectations. it reported earnings of 50 cents a share in the third quarter, while operating revenue came in atjust over $9 billion. coca—cola's results were helped by the recent relaunch of coke zero in the us, as it looks to offer healthier, lower—calorie drinks. let's ta ke let's take a quick look at the markets before we go. asian markets were largely muted thursday, tracking a retreat on wall street as fears over the progress of us president donald trump's tax cut plans dampened investor sentiment. but tokyo edged up slightly, bolstered by positive corporate earnings and a weak yen that boosts japanese exporters' bottomline.
us stocks closed lower after hitting several records in the last month, with disappointing reports from companies including at&t and boeing prompting a sell—off across the market. that is it for this edition of world business report. see you shortly. youth workers have been told they should consider monitoring the social media used by young people who are at risk of being involved in crime. the recommendation‘s been made by her majesty's inspectorate of probation, which has warned that a quarter of the crimes it studied were directly linked to social media. here's our home affairs correspondent, tom symonds. violent crime is increasing after yea rs of violent crime is increasing after years of decline. this report reveals that increasingly, the way young people communicate is making the problem worse. aggressive m essa 9 es the problem worse. aggressive messages online have resulted in physical assaults on the streets. gangs make videos which can raise tensions with their rivals. social
media is used to blackmail and intimidate, especially sexually. 0ut of more than 100 cases studied by the inspectors, one in four were directly linked to something put on social media. the report concludes: but the internet is not the only trigger. three out of four involved in youth crime had suffered some sort of previous emotional trauma, making it more likely they would offend. youth offending teams struggle to keep up with the jargon used online. as one youth worker put it, they used to hang around on street corners, now they get into arguments or planned offensives on the internet. the six—week waiting time for universal credit should be cut according to the work and pensions select committee. mps say the current wait is leaving people facing acute financial difficulties. they want it reduced to a month. a government spokesman said the new system had been improved to make advance payments available
to those facing hardship. coming up at 6:00 on breakfast, charlie stayt and naga munchetty will have all the day's news, business and sport. they'll also have more on the 300,000 or so people who are leaving the workforce every year because of insufficient support for mental health problems. the report, commissioned by the government, says the human cost of this is huge. that's breakfast, at 6:00. this is bbc news. the latest headlines: a vast funeral procession is making its way through the thai capital, bangkok, as part of a hugely elaborate ceremony for the late king. hundreds of thousands of mourners dressed in black have turned out for his cremation. the leader of catalonia is expected to reveal whether he will declare independence from spain or call for early elections. in madrid, the senate is making final preparations for a vote to begin unravelling the region's autonomy. voting is getting under way in kenya's controversial rerun of the presidential election, despite a boycott by the main opposition. tens of thousands of security
personnel have been deployed to protect voters and polling stations. a court in turkey has ordered the release on bail of 11 human rights activists accused of aiding terrorist groups. they include the local director of amnesty international. all deny the charges. the next hearing is in november. now it is time for our newspaper review. what is making headlines around the world ? let's start with the new york times, which looks at xi jinping's increased dominance in china, and what that means for private business. at the 19th communist party congress, the president outlined a populist vision for increased prosperity, but the newspaper says china's relationship with entrepreneurs is becoming increasingly strained. the guardian reports on technology giant apple's decision to hire jay hunt, who has held top roles at channel a,
the bbc, and whose credits include british hits such as sherlock, luther, humans, and gogglebox. it says her appointment signals apple's serious tv and film intentions, in a bid to keep pace with other major silicon valley firms. also in the guardian: patients recovering from surgery in the uk could be discharged from hospital to recuperate in private houses nearby, as part of a controversial nhs trial that could earn those renting out the rooms up to £1,000 a month. the scheme, which has been likened to airbnb, has been criticised by medical professionals and social workers, who warn it could lead to abuse and poor care. the daily telegraph business section looks at accelerating gdp growth in the uk, sparking hopes of a rate rise, which would be the first sincejuly 2007.