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tv   World Business Report  BBC News  March 6, 2017 5:30am-5:46am GMT

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this is bbc world news. the headlines: north korea's neighbours say pyongyang has fired several ballistic missiles into the sea of japan. the japanese prime minister, shinzo abe, said four missiles had been launched, three of them landing in waters in tokyo's exclusive economic zone. the row between president trump and the american intelligence services has intensified. the director of the fbi has rejected mr trump's claims that president obama ordered a wiretap on his election campaign office. leaders of the french centre—right republican party will meet today to try to resolve the crisis surrounding its presidential candidate, francois fillon. mr fillon says he won't pull out of the race. german politicians have reacted angrily to comments by the turkish president, who accused germany of nazi practices after several towns cancelled political rallies involving turkish ministers. now for the latest financial news, with sally bundock and world business report.
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a european car colossus in the making. france's peugeot citroen is poised to buy general motors‘ european business, including the opel and vauxhall brands. china's premier cuts the economic growth target for this year. we look at the risks to the world's second—largest economy. welcome to world business report, i'm sally bundock. also in the programme: deutsche bank plans to raise billions of euros in a share sale. details in a moment. general motors is set to announce a deal to sell opel and vauxhall to psa group, the french company that owns peugeot and citroen. both companies are hosting a press conference in paris later this morning. buying gm's loss—making european operations will make psa
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the continent's second—biggest car maker, after volkswagen and ahead of french rival renault, and it will be a giant. last year psa and gm europe sold a combined a5 million vehicles, and posted revenues of 71.6 billion euro. but the deal has already raised fears in the uk the jobs of 4,500 workers at vauxhall‘s plants could be under threat. in germany, where two thirds of 0pel‘s 38,000 staff are based, the government has been seeking reassurances the jobs are safe. 0pel had hoped to return to profitability by 2016, but the slide in the value of sterling following the eu referendum last june contributed to its 257 million euro annual loss. with me isjom holder, editorial director of autocar. nice to see you. it is a very
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anticipated press conference. what do you think they will tell us?” think we won't learn a great deal this morning other than that the deal is going through. there is due diligence to go through afterwards and the car industry is slow—moving and making changes. there is no rush to change so they will play their cards close to their chest. and they will probably have to for political reasons. where there will be job losses, in germany, in an election year, in the uk is extremely sensitive with ford's news about bridgend last week emerging. what may happen to the various plants around europe? at around 20 plants potentially affected from the 0pel side, and even more from the psa side. they are in a competitive situation and both companies are underperforming. the factories are not producing enough cars to be profitable on average so the obvious way to start making profits is to start imposing cuts but these
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factories work on seven to ten year cycles so the bosses of psa can sit back and see what assurances they are offered by various government and what incentives they are offered in order to keep various factories open. to what extent does brexit play a part in this story? the fall in the value of sterling has been a problem for european car makers. absolutely, psa blamed it for the reason they fell into loss last year and it is a problem because it brings uncertainty to the uk plants that vauxhall has. it could hinder freedom of movement and ring fluctuations in currency, it could really undermine the certainty psa is looking for when it wants to commit to these factories. on the plus side, from the point of view of psa group and what it is doing, it has seen an incredible turnaround in the last couple of years. absolutely, three years ago it was experiencing multibillion euro losses. it had a new leader who was famed for being able to turn
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companies around and he has done just that with psa. he has made them incredibly profitable, higher profit margins than even vw at the moment. also, gm prevented vauxhall and 0pel from selling in the united states. that could be more in the future. from selling in the united states. that could be more in the futurem could unleash 0pel in a way it has never been unleashed. we have seen that before with great car companies, big groups like ford, when it controlled jaguar, land rover, aston martin, when it let them go, they all thrived. it could be good on a global scale for 0pel. thank you very much for your time. we expect a press release from psa group in about 55 minutes time and the press conference is later. we will keep you up—to—date with the announcements come through. china's national people's congress convened this weekend in beijing's great hall of the people. the 3,000—strong event is staged each year by the party, and is usually a forum to rubber—stamp legislature
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for the year ahead. but china's economy is in trouble, and yesterday premier li keqiang's annual report gave some clues about the state of the economy in the year ahead, and there are a lot of problems ahead. here is what we know. economic growth is expected to be unchanged from last year, at 6.5%. that is one of the slowest growth rates for more than a quarter of a century. this growth rate has complicated chinese government efforts to shift from an economic model based on debt—fuelled investment and exports, towards a consumer—driven one. but it doesn't end there. the government also wants to trim bloated state—owned government industries, while tackling the slumping currency. and at the same time it needs to halt the massive capital flight from chinese enterprises seeking better returns abroad, and also deal with fears about a housing bubble and the bad loan crisis. joining me now from beijing is stephen mcdonell. so the outlook for the economy has
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been cut, but it is not a significant cut any means. 6.5%, give us a sense of what people are saying about that. well, therefore i talk about the figures i suppose i should put a brief caveat on it that some analysts think that you can't trust china's gdp figures at all because in recent times we have seen provinces lying about their gdp figures to either inflate the performance, they are supposedly having, or to attract support from the central government. but for the purposes of this discussion let's just say that the figures are ridgy—didge, as you might say in australia, so 6.5% of gdp is down from 6.7% achieved last year. but the chinese government and premier li keqiang would say this is part of the plan, that we have to wean china of this breakneck growth to achieve more sustainable, better growth into the future. and you mentioned what
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they are trying to do. it is not to rely so much on exports, in favour of domestic led consumption. do not rely so much on making shoes and things like that, and to get more into hi—tech goods. what they would really like to do is to thrust china into a world along the lines of the way south korea did, or taiwan did in the past, to make this the next generator of... the new computers, the new apps, the new hi—tech goods that the world is going to need. and to do that, big changes are needed here. and is there any other key elements that they have said so far, oi’ elements that they have said so far, or revealed so far, that could affect the chinese economy in the coming year? well, you also mentioned the need to change soes and the role they are playing. it has been a slow change there,
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because people who watch china will know that steel, televisions, all these big industries, they are all still controlled by state owned enterprises and some would say that thatis enterprises and some would say that that is fine. itjust depends what you want to achieve in your economy. but there have been problems with, for example, they are trying to crack down on what is called shadow banking because there is a big problem with debt. now, these soes that i mentioned get preferential treatment in terms of loans from banks so smaller enterprises have found it hard to get a loan so now they are trying to free up some of they are trying to free up some of the money needed for those businesses to get a loan, i guess to ta ke businesses to get a loan, i guess to take that money away from those soes. thank you very much indeed. in other news: deutsche bank will be offering new shares to raise about 8.5 billion. germany's biggest bank plans to float part of its asset management business, but will keep postbank, the retail banking business it had been expected to sell. the shake—up follows huge losses and a $16 billion legal bill imposed
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by financial regulators since 2012. the us is suspending a fast—track service often used by technology companies to recruit foreign skilled workers. the h—1b visa is issued to tens of thousands of highly skilled foreign nationals each year. currently, companies can pay extra to get the visas approved within 15 days, but starting in april, this process will be stopped for six months. looking briefly at markets, let's show you how things are faring in asia. the news coming from north korea did hit sentiment, certainly injapan. we see the yen strengthening in response to north korea's launch of four ballistic missile this morning. 0bviously any sort of geopolitical risk causes people to pull out of anything they feel is of risk so the yen is strengthening as a safe haven and some stocks like financials and
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exporters losing ground in tokyo. that's it for me for the moment, i will see you soon for the news review. britain's most senior anti— terror officer has revealed that 13 terror attacks have been presented to make prevented since june 2013. he is launching a campaign encouraging people report suspicious activity. he was caught because a woman working at a storage warehouse became suspicious and called police, potentially saving hundreds of lives. if you have a concern about something you have seen or heard that could identify terrorist
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threats, report it. a new police campaign focuses on the important contribution the public can make. it could be anything that strikes you as unusual. detectives say the public is still playing an important pa rt public is still playing an important part in one third of their current investigations. senior detectives are warning that supporters of so—called islamic state are not the only threat. al qaeda remains a danger as well, as does far—right terrorism. new officialfigures danger as well, as does far—right terrorism. new official figures show that the number of attacks in britain thought to have been thwarted since june britain thought to have been thwarted sincejune 2013 has risen to 13. one higher than the figure given six months ago. at any one time, the security services are running around 500 investigations. the threat level remains at severe, which means the risk of an attack is assessed as highly likely. coming up at 6:00am on breakfast: charlie and naga will have all the day's news, business and sport. they will also have more on making
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a difference and improving the quality of the air. the team look at how drivers are being encouraged to stop leaving their engines running. the top stories this hour: north korea has fired four missiles into the sea off japan's north—west coast. japan's prime minister said the missile launch was a clear demonstration of the new threat from pyongyang. the row between president trump and the american intelligence services has intensified. the director of the fbi has rejected mr trump's claims that president obama ordered a wiretap on his election campaign office. now it is time for our news review.
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the ft reports on the director of the fbi asking the usjustice department to publicly dismiss president trump's allegations about phone tapping. mr trump has claimed barack obama ordered trump tower in new york to be monitored during the election campaign. china daily has the story of the chinese government setting an economic growth target of around 6.5% for this year. that's down slightly from 2016's target range and the lowest in more than 20 years. premier li keqiang outlined the plan at the annual meeting of china's parliament — the national people's congress. le figaro looks at the upcoming french elections and presidential hopeful francois fillon where many on the right his party want him out of the race. mr fillon has said no—one can force him to withdraw his candidacy for the presidency. he's under investigation over allegations he used public money to pay family members for work they didn't do. the international new york times reports
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on south sudan where war is engulfing new previously peaceful areas of the nation. tens of thousands of civilians have been killed and region is suffering a national food crisis. and finally, in the china daily business pages, they say more chinese than ever are travelling to the united states and other foreign destinations. chinese outbound tourists are expected to reach 150 million by 2020. joining us isjonathan charles who's director of communications at the european bank for reconstruction and development good morning. this story is incredible. white house aides was asked three times when mr trump is going to provide some kind of evidence about


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