tv World Business Report BBC News August 14, 2017 5:30am-5:46am BST
this is bbc world news. the headlines: the authorities in burkina faso say at least 17 people have been killed in a terrorist attack on a restaurant in the capital, ouagadougou. three jihadists have also reportedly died, although more people are believed to be trapped in the building. a vigil has been held in virginia fought the antiracist protester who was killed at the white supremacist rally on saturday. it was said to be the biggest gathering of white nationalist groups in america for decades. as the head of the us military prepares for talks on north korea's nuclear and missile threats in south korea, pyongyang says it has the right to have nuclear weapons for what it calls legitimate self—defence. pakistan is celebrating the 70th anniversary of its creation as a sovereign state. there were fireworks at midnight to mark the moment of partition from india at the end of british colonial rule in 1947. now it is time for world business
report with ben bland. confounding the critics: japan beats expectations as it records its fastest rate of growth in more than two years. 70 years of partition: we take a look at how the economies of india and pakistan have diverged since the end of british rule. hello and a very warm welcome to bbc news of world business report. i am ben bland. japan has just released its latest set of growth figures, and there's been some good news for the world's third largest economy. japan has exceeded all expectations by recording growth of 1% between april and june. the numbers are an encouraging development for the government but don't solve the country's
ongoing financial headaches. japan's productivity per person per hour stands at $23.45 that leaves it in 18th place in the world, well behind the us, on $33.41, and a host of others including canada, the uk and france. the country's debt has also ballooned in recent years. at more than 250% of gdp it has the largest debt to output ratio in the world — by quite a comfortable margin. long term the country also faces what's been described as a "demographic time bomb". if trends persist then in less than 50 years almost 40% of the population could be aged 65 or older. hiroshi ugai is the chief economist atjp morgan. he joins us from tokyo.
good to see you. ijust wonder whether, with all this positive news coming out ofjapan, if it is enough to deal with some of the long—term problems, or is itjust a short—term thing? this was very strong, but should continue for longer. it is higher than our expectations, and higher than our expectations, and high since the first quarter of 2015. this growth is above the expected growth rate, suggesting that growth is expanding. however, we think that is too strong for, you know, relative to our strengths, the underlying strength of the economy. do we take this to mean, then, that
shinzo abe's reforms, the policy of monetary easing, abenomics, as it is called, is that working? yes. this time, the gdp's search related to public works spending, reflecting the economic stimulus package enacted last year. and also stimulus related to the monetary easing environment. the consequences of this is considered us. for the time being, the economic growth will, you know, expand, but probably in the second half of this year, this second half of this year, this second quarter, this will soften a
little bit. we expect this to slow toi.5%, little bit. we expect this to slow to1.5%, but little bit. we expect this to slow to 1.5%, but still far above the growth rate. so it works. of course, this is good news, this growth, which is exceeded expectations. however, ijust wonder if which is exceeded expectations. however, i just wonder if you feel enough is being done to tackle the longer term problems that i was talking about. that demographic time bomb that i was talk about, with the ageing population. is it enough to tackle that? no. the current situation is good, but during this period, we have two, japan has two tackle the structural issues to raise productivity growth injapan. 0therwise, our underlying growth rate is 0.7%, we guess. we need to raise this more with structural reform to raise productivity, and also to try to raise outcomes in a
long—term perspective. 0therwise also to try to raise outcomes in a long—term perspective. otherwise it is limited forjapan to expand. thank you forjoining us hiroshi ugai from tokyo. 70 years ago, britain ended its rule over india and the country was divided into two separate states. partition brought about the largest mass movement of people in history, but what has become of the economies of pakistan and india? the bbc‘s sameer hashmi has more. since partition, india and pakistan have charted different economic parts. india's economy was bigger right from the start, because of the size of its population and the fact that it inherited financial and government institutions. today, india's economy is almost eight times bigger than its neighbour's. what is interesting is that in the first 50 years, both nations or
similar economic growth. in fact, the average income per person in pakistan was hired in india during this period. but since the start of the 21st century, india's economy started to grow faster, widening the 93p- started to grow faster, widening the gap. this is largely down to economic reforms in india in the 19905, economic reforms in india in the 1990s, when it opened up its markets forforeign 1990s, when it opened up its markets for foreign and private 1990s, when it opened up its markets forforeign and private investments. today, india and pakistan are the largest economies in south asia. they still don't create very much. bilaterals trade stood atjust $2.2 billion last year. this is less than what india creates with smaller neighbours like sri lanka, bangladesh, and nepal. this is largely due to the negative list, banning goods from india. this ranges from toothbrushes and diapers to ca rs ranges from toothbrushes and diapers to cars and cricket bats. india levies taxes on goods from pakistan.
that said, informaltrade levies taxes on goods from pakistan. that said, informal trade between the two countries is thriving, and is estimated to be close to $5 billion. that involves shipping goods through a third country. traders both in india and pakistan news dubai to get goods to each other. experts say that if history was formalised, then the total bilateral trade between the two countries could touch $10 billion every year. the new york times is reporting that facebook has discreetly launched a photo—sharing app for chinese users. the social media platform is banned in mainland china, but facebook has made clear its intentions to crack the tightly controlled market. let's cross over to our asia business hub where we can speak to mariko 0i. what more do we know about this latest move by facebook? it is fascinating. it is called colorful balloons, and the company's brand is
not attached to it, the brand facebook. new york times reported this, and facebook has now confirmed this, and facebook has now confirmed this to several media outlets. it says that its focus is to help chinese businesses expand outside china, using their platform. but as you mention, facebook has been very keen to enter the mainland market since it was blocked in 2009. its founder and chief executive mark zuckerberg made a high profile visit with leaders, learning mandarin and making keynote speeches that, as well. facebook is not alone in train to work around china's very tightly controlled internet. google, youtube, instagram, a lot of silicon valley companies which have previously banned have been trained to work around that. it seems like facebook might have found a way. thank you forjoining us, marie curie. —— mariko 0i.
in other news, the chief executive of commonwealth bank of australia says he will retire following a scandal relating to allegations of money laundering. ian narev has been head of australia's largest bank since 2011. but recently, it's been embroiled in civil charges stemming from alleged breaches of financing rules that wiped out billions of dollars from its market value. narev is expected to step down in june 2018. after weeks of public disagreement, the uk's finance minister, phillip hammond, and the country's trade secretary, liam fox, wrote a joint article for the sunday telegraph, stating that britain will need a transition deal when it leaves the european union. the pair say that any deal would be "time—limited" and should not be viewed as a "back door" to staying in the eu. to forget you can reach me on twitter. i am @benbland. you're watching bbc news.
up to 140,000 vulnerable children did not receive the help they needed last year because their situation was not judged to be serious enough, according a leading children's charity. the government says planned reforms will improve the situation. marc ashdown reports. debbie has been working in children's services for 16 years, and helps families with anything from behavioural problems to domestic and substance abuse. but she says it has become harder to provide the support they need. she says it has become harder to provide the support they needlj have provide the support they need.” have got, across the sites are run, just under 2500 under fives, have got, across the sites are run, just under 2500 underfives, and three members of staff. so there is a lot that we can't possibly do, because we can't be everywhere at once. we are already aware of families we are not picking up in the same way, and it will only get worse, from that. a freedom of information request to local
authorities found that last year 184,000, 184,500 children's authorities found that last year 184,000,184,500 children's in request for help were close. 0nly around one in fourfamilies received services. we know from too many cases that if we are not able to help children early, but there are strong likelihood is that things will get worse for them, for example, in serious case reviews, 70% of the time, we know that there we re 70% of the time, we know that there were early warning signs of the outcomes. we also know that if we give families the tools earlier, they are much less likely to need help later on in any case. government cuts have been blamed for squeezing services. the department for education says is taking action to support vulnerable children by reforming social care services and better protecting victims of domestic violence and abuse. it says council spent almost £8 billion last year on children's social care, but
it wants to help them do more. welcome. you are watching bbc news. 0ur welcome. you are watching bbc news. our main had the this morning: the authorities in burkina faso say at least 17 people have been killed in a terrorist attack on a restaurant in the capital, 0uagadougou. three jihadists have also reportedly died, although more people are believed to be trapped in the building. a vigil has been held in the us state of virginia for the anti—racist protestor killed during a white supremacist rally on saturday. it was said to be the biggest gathering of white nationalist groups in america for decades. as the head of the us military prepares for talks on north korea's nuclear and missile threats in south korea. pyongyang says it has the right to have nuclear weapons for what it calls legitimate self defence. pakistan is celebrating the 70th anniversary of its creation as a sovereign state. the celebrities
included a ceremonial changing of the guard is at the
mausoleum in karachi for the country's founding father, mohamed jinnah. now it's time for our newspaper review. what's making headlines around the world ? the story continuing to dominate the papers and online is the fallout from charlottesville. the guardian bears the headline: the article says the president fails to blame white supremacists. 0n the front of the financial times: the article claims there are calls for rigorous screening of foreign takeovers of european companies amid concerns at the surge of chinese investment into high—tech manufacturing, energy and infrastructure sectors. the times highlights
a 50% rise in arrests of drunken airline passengers. an investigation also
found cabin crew described being groped, abused and physically assaulted by inebriated passengers. chile's energy transformation is the headline for the international edition of the new york times, with a look at south america's first geothermal energy plant. according to the article, chilean officials believe they're on track to rely on clean sources for 90% of the country's electricity by 2050. 0n the front of the straits times: the 30—year—old jamaican tumbling after pulling a hamstring in his final race. the paper claims some sprinters blame event organisers at the world championships in london after athletes were forced to wait in a cold, air—conditioned room for nearly 40 minutes before