tv World Business Report BBC News May 31, 2017 5:30am-5:46am BST
hello. you are watching bbc news. the headlines: there's been a large explosion in the afghan capital, kabul. witnesses say homes have had their windows shattered and doors blown off their hinges. it has just been reported that it was a car bomb in a city that is home to several foreign embassies. there is no immediate word on casualties. the united states has completed its first successful test of a system to shoot down intercontinental missiles. earlier this week, north korea carried out its ninth ballistic missile test this year. the man accused of murdering two men on a train in the us state of oregon last week has appeared in court shouting "death to the enemies of america". the victims were reportedly trying to protect two young women from anti—muslim abuse. nasa has announced an historic mission to fly directly into the sun's atmosphere. the space agency wants to send a probe towards the star to learn more about the particles, and solar winds emitted into space. those are the main story so far. now
it is time to catch up with all the business news in world business report. —— stories. how does a country survive without big banknotes? we'll find out when the indian government releases economic growth figures later today. and it's almost like a game of hide and seek. passengers involved in the disruptions of ba flights over the weekend desperately seeking their luggage, —— luggage. hello and welcome to world business report. i'm susannah streeter. in a minute we'll take a snapshot of the chinese economy, but first,
in a few hours time, the latest official statistics are expected to show that india has retained its crown as the fastest growing major economy in the world. economists are predicting that india expanded at an annual rate of 7.1% in the first three months of the year. now, this compares with growth of 6.9% for china. the resilience of the indian economy will come as welcome news to prime minister narendra modi, following the country's landmark demonetisation programme. towards the end of last year, the government removed some 86% of banknotes from circulation, in a bid to crackdown on corruption. this led to widespread disruption and queues outside banks and cashpoints, but the shock announcement seems to have had limited impact on growth. and there could be yet more good news for the indian economy — in a months time, consumers are set to benefit from a major tax reform. from july i, all purchases will fall under a single goods and services tax. this will lower the average tax rate compared to the existing system. it is difficult for us to adhere to
the 7% growth rate in the country. there has been a partial breakdown of the rural economy. incomes have not risen. people are holding back on any nondiscretionary expense, which is bad for business in general. the last few years and especially the last few months have been very bad for the real estate development market. the market has been under
pressure, and adding fuel to the fire has been the monetisation. —— demonetisation. the water industry which we have been working in since 1958 is going well. there are ups and down. there was a setback due to demonetisation, but the inherent structure of the industry is robust. the indian economy will be at 7— 8%. we will reach that. british airways says it is "working round the clock" to reunite passengers with their bags but it will take some days to clear the backlog. many people have contacted ba on social media to complain
they still do not have their luggage back. the airline is now operating a full flight schedule and its it systems are up and running after the systems failure over the weekend. thousands of flights were cancelled with 75,000 people affected. so, what kind of damage will this do to ba? with me isjohn strickland, aviation and airlines expert from jls consulting. sojohn, still so john, still thousands sojohn, still thousands of so john, still thousands of angry customers. what long—term damage could there be to ba, do you think? the airline will have two work to get the flying programme back into normality, as they are doing right 110w. normality, as they are doing right now. the baggage problem will be sold as you describe. but they are premium airline. they rely on premium airline. they rely on premium customers. these are the ones who play the most, but also they are feeling a lot of their economy seats. —— pay. they need to restore the trust in a competitive
market. market competition means they have people like ryanair, snapping at their heels with cost effective fights, and premium airlines like emirates. the cost cutting me to be down slightly. they need to deliver reliability and integrity, which they want to suggest they offer. now manager wa nts to suggest they offer. now manager wants to show that they are doing a wash up of the rubble and communicate transparently. what they have found was the problem and how will they will avoid it in the future. what impact do you think this will have on heathrow as an international hub? a few years ago, when british airways moved into terminal 5, which is the epicentre of this challenge of the last weekend, terminal 5 itself went into meltdown on its first day of operation. that was not good for ba or heathrow. but they recovered from that. in that sense, there is hope.
investors will be looking at the financial performance. looking back to that as an example, ba did recover. they worked hard to do it, but they did it in a faraway and restored faith and went on to bigger and better things but in terms of customers and profitability. delta, who has a hub in atlanta, they had a major it outage in atlanta last year. this will require a complete management focus. this will need focus on processes and customers as well a star. that is how they have to do it because it is the only way to do it because it is the only way to protect their business position. john strickland, to give forjoining us. some reassuring news from china now. growth in its manufacturing sector in may kept pace with the previous month. the closely watched official purchasing managers' index stood at 51.2 — beating expectations. lets go to sharanjit leyl in our singapore bureeau. sharanjit, you have been talking to a well known investor into china. how confident was he
about the robustness of the chinese economy? he is very confident indeed. i will show you what he had to say in just a little bit. but interesting that you mentioned those purchasing managers index. it separates growth from contraction. beijing has been cracking down on financial risk and there has been a mixed picture. 0ther there has been a mixed picture. other recent dated showed that profits slowed to its weakest point infour profits slowed to its weakest point in four months. —— data. this came after moodys downgraded their credit rating for the first time since 1989. but i can go into that —— but ican go 1989. but i can go into that —— but i can go onto that investor. he still believes in his investments there. china is a planned economy. what the government plans is what happens. because the government
controls the major banks, controls the major features of the economy, the major features of the economy, the biggest companies, so if they wa nt the biggest companies, so if they want 6% growth, they will get it. they are not fixing the numbers. they are not fixing the numbers. they do is poor more money on. however, there is a problem in the private sector. many of these companies have borrowed too much and we re companies have borrowed too much and were dealt a payback. —— pour. and there will be in trouble. and to govern it is well aware of the dangers, which is why it they will need to tighten up. sharon —— sharanjit leyl, thank you very much. in other news, shares in online retail giant amazon have risen above the $1,000 mark for the first time. it originally listed its shares in may 1997 forjust $18 each. amazon now has a market capitalisation of about $478 billion, which is more than twice that of wal—mart. amazon is now the fourth—largest us company by market capitalisation, behind apple, google owner alphabet, and microsoft.
sterling dropped more than half a percent against the dollar late tuesday after a new poll found that british prime minister theresa may's conservative party risks falling short of an overall majority in next month's national election. previous opinion polls suggested the conservative party would increase their majority, which is currently 17 seats. let's check in with the financial markets now. despite those robust manufacturing figures from china it's been a bit of a lacklustre trading session for many indices in assia. that is all of the business news for now. much more to come. it's just eight days until british voters get to cast their ballots in the general election.
as part of our election 2017 coverage we have been across the uk looking at the issues that matter. chris buckler has been in northern ireland. you will find dramatic beauty. all along the north coast of northern ireland. it is scenery that makes a fantastic setting. the series game of thrones uses this area as a filming location. some see in its stories of skimming division and conflict more than a few similarities with politics in northern ireland. here, many vote in what are sometimes called troubled loa ns. what are sometimes called troubled loans. -- lines. we are republican family. it is an old battle. down through the ages. only fought in modern times. for politics to work
here, people need to share power, as opposed to grabbing it. but the parties are deeply divided. it is why there is currently no government in northern ireland, and why this election is proving to be a bitter fight between unionists and nationalists. political deadlock is nothing new on this part of this island. but it is frustrating for those who want to shoe off what northern ireland has to offer. —— show off. get years of political progress can be seen with every busload of tourists that arise here. some feel the fighting between the politicians can be foreshadowed to be because it is good for votes. —— for show. it makes election time particularly divisive. you are watching bbc news. and coming up at 6am on breakfast, dan walker and louise minchin will have all the day's news, business and sport.
they'll also have more on the warning that the possible return of thousands of expat pensioners to the uk to use the nhs after brexit could cost millions. this is bbc news. the latest headlines. there has been a huge explosion kabul. winners have been shattered and doors were off their hinges. the latest report is that there was a car bomb in the city that is home to many foreign embassies. no immediate word on casualties. the united states has completed its first excess will test ofa completed its first excess will test of a system to shoot down intercontinental missiles. earlier this week, north korea carried out its ninth ballistic missile test this year. the man accused of murdering two men on a train in the us state of oregon last week, has appeared in court shouting "death to the enemies of america". the victims were reportedly trying to protect two young women from anti—muslim abuse. you're watching bbc news. let's have
a look at the international and national press. the times leads with a shock poll prediction ahead of next week's uk general election from one of the country's leading pollsters. the constituency—by—constituency estimate for the times by yougov indicates the conservative party could lose 20 seats and labour gain 28 seats, which would mean no party would win an overall majority. city am looks at the war of words between us president donald trump and german chancellor angela merkel. mr trump slammed germany saying the country's economic relationship was bad for the us while, mrs merkel hit back, restating her view that
europe must look out for itself and can no longer rely on america. the gulf news says global stocks are feeling the pressure as antagonism grows between the us and the european union. markets have been driven lower over concerns over politics on both sides of the atlantic. the ft reports that internet giant amazon has joined an elite group of us companies with shares worth more than $1000 dollars. back in 1997 when the company first listed itself, one share was worth just $1.50. 0n the front of the telegraph, there's a picture of ariana grande. the us singer announced she'll return to manchester to hold a benefit concert for the victims of last week's bombing. she'll be joined by other pop acts such as coldplay,