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tv   World Business Report  BBC News  June 1, 2017 5:30am-5:46am BST

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this is bbc world news, the headlines. china and the european union are preparing a joint statement in support of the paris climate change agreement. president trump is set to announce whether america will withdraw from the accord later on thursday. theresa may's political rivals have criticised her for not taking part in a televised, election debate. the event was marked by heated exchanges on, immigration, security, and the future of britain's public services. world leaders have condemned the massive bomb attack in kabul. the afghan president described it as a crime against humanity. at least 90 people, most of them civilians, died in the blast. ten philippine soldiers have been accidentally killed in a government air strike in the south of the country. the army has been battling for more than a week to retake several regions from forces linked to the so—called islamic state group. now it's time for world business report.
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closer ties between the eu and china — that's the aim. the leaders are meeting at at summit in brussels later hoping to counter president trump's stance on trade and climate change. brazil is expected to announce that its economy is growing for the first time since 2014 — but could that be overshadowed by the latest political crisis? we'll look at whether that could threaten the return to growth. welcome to world business report. i'm ben bland. in a minute we'll find out why today is a big day for pakaistan‘s stock market. but first, the eu and china will attempt to deepen ties at a summit later. there is concern among some about the direction taken by us president donald trump
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on trade and climate change. chinese premier li keqiang will meet european council president donald tusk and european commission head jean—claude juncker. they are hoping to come up with an answer to donald trump's "america first" challenge. trade in goods between the eu and china is worth well over 1.5 billion euros a day. the eu is china's biggest trading partner, while china is the eu's second largest trading partner — after the united states. but the eu is worried about industrial overcapacity in china — most notably, in the steel sector. for example, in april this year the european commission increased anti—dumping duties on imports of hot—rolled flat steel products from china by up to 36% — much to beijing's anger. china invested four times as much in
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european businesses as european businesses did in china. with me is dr yujie, head of china foresight, lse ideas. there is likely to be some common ground as far as climate change and state m e nts ground as far as climate change and statements of intent regarding the paris agreement are concerned. but still some areas where there could be some friction? i would say it plenty of friction. that is partially because the chinese take investment more seriously, whereas the eu take rules more seriously. chinese played by the money, there are differences here because of that. regarding the overcapacity issue, this is notjust an issue in terms of foreign investment. it is also an issue for china in terms of domestic politics. we know that this party congresses in pipeline. xi
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jinping is trying to stabilise the economy, and to make sure less people are unemployed. so they don't wa nt to people are unemployed. so they don't want to lay off and steel in china. therefore, i am expecting some tough talks. do you think this talk of getting together and continuing a protectionist stance with donald trump, do you think that has been overblown? partially, yes. xi jinping also wants to look like a very sta ble jinping also wants to look like a very stable leader on the international stage, so by presenting himself into some kind of alliance regarding climate change would not give him a very good image. this is also testing the chinese communist pa rty‘s image. this is also testing the chinese communist party's governing ability, and whether they can address the issues of pollution and
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poorair address the issues of pollution and poor air quality. that is something xijinping is trying to present poor air quality. that is something xi jinping is trying to present to the world as well as the domestic audience. how big of a sticking point do you think this issue of steel tariffs is going to be?m point do you think this issue of steel tariffs is going to be? it is an ongoing issue. it has become particularly pressing, because what is happening in the political arena and what is happening inside china, thatis and what is happening inside china, that is affecting it. i can only see the problem escalating. thank you very much for your analysis. it's a big day for pakistan. today it re—joins the msci emerging markets index — a massive reputational boost for the country, and a sign that things could be turning around for a nation that's been beset with political and terror related problems. the msci emerging markets index is made up of 23 emerging markets
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including india, china and brazil. pakistan used to be a part of the index, but was removed because of the exchange's decision to shut down for four months in late 2008 after prices dropped dramatically. that meant foreign investors couldn't get their money out. we arejoined by we are joined by our asia business correspondence. in practical terms, what difference does this make. correspondence. in practical terms, what difference does this makem makes a big difference. pakistan was once called the basket case of south asia in terms of its economic prospects. now it is being called the new asian tiger. a lot of that is down to the new reputational boost you are talking about. it is now part of the emerging markets index. that includes top—ranked stocks from all over the world. some of the world's biggest businesses
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use this list. just take a look at some of the evidence. pakistani stocks versus the emerging markets index, you can see on your screen how shares have outperformed the emerging markets index, despite all the troubles that have come out of pakistan in recent years. why is this happening? a lot of it is down to good corporate governance, and it is also a domestic consumption story. much like india and china, pakistan is all about spending money and seeing incomes rise. take a look at this chart. gdp growth in pakistan has been pretty solid of late. that is coming after a low period in the mid— 2000. i think it is also important not to disregard the obvious issues with security and
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terror related concerns. at least for today, a sign that this country could be facing a turnaround. thank you very much. brazil may be about to announce the end of the country's worst recession in history. it is expected to report that its economy grew for the first three months of the year — it'll be the first quarter of growth since the end of 2014. but just as the country seems to be turning a corner, another political crisis has kicked off that could halt the recovery in its tracks. daniel gallas reports from the capital, brasilia. violence flared outside brazil's national congress as protesters made it clear they were not happy with how the country is being ruled. inside the building, politicians we re inside the building, politicians were debating radical reforms to the economy, including making brazilians work longer and retire later. we are tired of being a country with a president accused of corruption. we
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wa nt president accused of corruption. we want a new president and we want to know are by tree labour reforms. these people do not want reforms, they say it will hurt pensions. despite the political crisis engulfing brazil, they know that sooner or engulfing brazil, they know that sooner or later, congress is likely to vote on the reports, some say thatis to vote on the reports, some say that is crucial for the brazilian economy. the brazilian population is ageing. it presents a serious challenge, the cost of caring for the elderly is rising sharply in the government does not have the money to pay for it. the country spends around 11% of its gdp on pensions, thatis around 11% of its gdp on pensions, that is twice as high as in more developed economies and it is set to double in the next a0 years. brazil's debt is also growing, doubling in the past three years. without reforms, the imf says that debt could balloon to 90% in five yea rs. debt could balloon to 90% in five years. president michel temer has
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been pushing reforms to get the economy back on track, but he is now embroiled in a corruption scandal which could see him forced out of office. the question is, if he goes, will his reforms survive? is -- if the current president has to step down, iam the current president has to step down, i am certain that politicians would find a new president who is committed to these reforms. changes needed, but the proposals are unpopular. —— change is. there is little appetite for more pain, but without more reforms, the recovery could prove short lived, bringing the prospect of yet more unrest. a quick look at the markets now. this is how the asian markets
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finished. we are out of time, i'll see you soon. finished. we are out of time, i'll see you soon. goodbye. then we'll be back shortly to go through the papers with us. —— ben. 0nly around a third of teenage boys say they enjoy reading. that's one of the findings this morning from the national literacy survey of more than a0,000 children across britain. tom burridge reports. it's storytime in liverpool. this charity, called the reader, encourages children to get their hands on books. getting younger children like sebastian to read some of our favourite stories is not the difficult part. a savvy suggests the real challenge is keeping boys reading as they get older —— survey. it just gets reading as they get older —— survey. itjust gets more difficult to keep
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them interested in reading. we have always read to them, i think it is about giving them things to read that they find exciting. the national literacy survey asked more than a0,000 children across britain how much they liked reading. 8— ii —year—olds were largely enthusiastic. more than seven out of ten said they liked reading very much all quite a lot. 0nly ten said they liked reading very much all quite a lot. only a third of older boys gave the same response. the challenge is building up response. the challenge is building up that pattern early, thinking of that particularly during the teenage yea rs, that particularly during the teenage years, how we can promote reading. making sure they find books about things they are interested in, whether it's football, dragons, sharks. overall, girls like reading more than boys. the positives from the survey are that the number of girls and boys of all ages who are keen on books is going up, not down
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—— sharks. coming up at 6am on breakfast, charlie stayt and naga munchetty will have all the day's news, business and sport. make sure you join them for that. this is bbc news. the latest headlines: china and the european union are preparing a joint statement in support of the paris climate change agreement. president trump is set to announce whether america will withdraw from the accord on thursday. theresa may's political rivals have criticised her for not taking part in a televised, election debate. the event was marked by heated exchanges on, immigration, security, and the future of britain's public services. world leaders have condemned the massive bomb attack in kabul. the afghan president described it as a crime against humanity. at least 90 people, most of them civilians,
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died in the blast. 0ver a00 others were injured. time now for our newspaper review where we take a look at what's making headlines around the world. we are going start with the gulf news which leads on wednesday's massive bomb blast in kabul, which killed 90 people and left hundreds injured. no group has so far claimed to have carried out the attack. the ft reports that china and the european union are preparing a joint statement in support of the paris climate change agreement. president trump is due to announce later whether the united states will withdraw from the agreement. the independent front page is dedicated to the latest uk election debate. the paper says there were fractious exchanges between the seven party representatives on immigration and
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security, but the prime minister, theresa may was most noticeable by her absence. the daily telegraph reports that the number of migrants crossing the mediterranean from morocco to spain has more than tripled this year, according to the united nations, making it the fastest growing sea route into europe. the sydney morning herald focuses on the incident at melbourne airport in which a passenger tried to storm the cockpit of a malaysia airlines flight to kuala lumpur, threatening to blow up the plane. and finally the business section of the daily telegraph reports that the technology firm deliveroo is offering its riders the option to be paid per delivery, rather than per hour, in an effort to reinforce their status as self—employed contractors instead of employees.

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