tv Asia Business Report BBC News June 18, 2018 1:30am-1:46am BST
our top story: it's been a day of surprises at the world cup in moscow, with two of the biggest teams in world football failing to win their games. title—holders, germany, were defeated 1—0 by mexico. and five—time world champions, brazil, were held to a one—all draw by switzerland. addiction to electronic games has for the first time been officially recognised as a mental health condition by the world health organisation. it has included "gaming disorder" in the latest edition of its international classification of diseases. and this video is trending on bbc.com. america's first lady has called for an end to separating parents and children illegally entering the country from mexico. her spokesperson said melania trump "believes we need to be a country that follows all laws, but also governs with heart. that's all from me for now. stay with bbc news. and the top story here in the uk: the prime minister announced an
extra £20 billion a year in real terms for the nhs, but labour says it is not enough. —— labour. now on bbc news, all the latest business news live from singapore. china hits back against us tariffs as the country's media calls president trump a fool. we will look at the potential fallout in asia. and we need the architect behind some of the most iconic buildings in the world, and take a look at one of his latest creations. —— meet. good morning, asia. hello, world. welcome to another edition of asia business report. it's a monday. a brand—new week. the world is bracing for what is next in the us— china trade spat
after donald trump said he will impose $50 billion worth of tariffs on chinese goods on friday. china responded in kind with tariffs of its own. chinese media has also marked president trump over his trade plan, saying wisemen build bridges, fools, walls. what is driving this? we have been looking into it. stand aside, everyone, a new tariff‘s in town. into it. stand aside, everyone, a new tariff's in town. we are putting ta riffs new tariff's in town. we are putting tariffs on $50 billion worth of technology and other things. trade wa i’s technology and other things. trade wars are never formally announced, but this is as close as it comes. the trade war started many years ago with them, and we lost. close to $800 billion in losses in trade. it will not happen any more. from early next month, the us will begin
collecting 25% on some $30 billion worth of goods from china with the us saying it is prepared to move up to $50 billion in the nearfuture. chinese officials were promising to strike back from even before the official announcement. bring it, said the white house. it warned any retaliation would be met with even more tariffs. the donald trump administration argues these measures are vitalfor administration argues these measures are vital for the administration argues these measures are vitalfor the us administration argues these measures are vital for the us economic future. but as the two largest economies in the world skirmish, others are worried about being caught in the crossfire. manufacturers are at an unfair disadvantage. the way this has gone about is hurting the domestic industry, and will hurt up us businesses and us jobs. a trade dispute between the chinese and
americans has been simmering for months. while most economists on wall street has been economic impact has been minimal so far, people are wondering if they are engaged in a fall on trade war. there was swift retaliation from beijing to those tariffs. we arejoined retaliation from beijing to those tariffs. we are joined for more on the response from china. what was it? as you mentioned earlier, they have a line about fools building walls, interesting because of the great wall of china, the most famous of all. the government has been more circumspect in recent months, saying china will defend its interests. making that clear. today we know what that means. it took them less than 12 hours to respond with their own set of tariffs, a mirror image of what donald trump imposed. 25% on about $34 billion of goods with the possibility of tariffs on another
$16 billion worth of goods. it is a tit—for—tat escalation. to give you a sense of the scale, $50 billion is about 10% of what china exports to the us. in the other direction, $50 billion is a much bigger percentage of us exports to china because they do not export nearly as much to china and that is the whole issue in the first place, as donald trump would tell you. interestingly, also, when donald trump imposes tariffs, i guess you might say he tends to start with quite a splash with the aluminium tariffs. he put them up and rounded them out. we might see them as us companies apply to be exempt from the tariffs, something the us government has announced might actually happen. fascinating. thank you forjoining us. there was a love for the market to digest last week. along with the tariffs we had the donald trump and kimjong—un
tariff, the us raising interest rates, and the central bank declaring an end to easy money. a little more than the cost of borrowing in asia this week. on tuesday, the bank of korea governor will hold a press conference to a nswer calls will hold a press conference to answer calls to delay any further increases in interest rates there. 0n increases in interest rates there. on wednesday, another asian central banks, the bank of thailand, will have its monthly policy meeting. looking to friday, 0pec will have the 174th meeting in vienna, austria. we have the managing director of soho capital. he told us his thoughts on this. we talk about a hike in us interest rates could start to affect asia. investors are finally beginning to price risk correctly. with these systemic changes happening in the system, not the least of which friday, with production, investors will have to
rethink yields and the cost of borrowing, and these assumptions. the cost of borrowing is the focus in asia because you have the koreans, and a massive summit last week had an impact on south korea in the economy going forward. what is happening in thailand? what is unique for equity investors is asian markets are fairly autonomous from the us. in the old days, they were correlated to the us consumer. now you have a growing middle—class in the asian markets and equity markets have improved. it will bring the question whether rising rates will have an impact. japan did not follow suit with europe and the us, holding off. it will be interesting. oil prices tumbled 3% on friday. this was in anticipation of saudi arabian and russian output perhaps increasing. 0pec members have been good at limiting production. will we see a cohesive message on friday?
cohesive being the operator of word? it will be interesting. saudi arabia and russia are in agreement of making decisions. —— operative. iran and iraq, it will be substantial in orderfor them to boost and iraq, it will be substantial in order for them to boost supplies to be iran is coming off line, is a big part. very quickly, six months into the year. six months more to go. trade tensions already. how are you anticipating market? in the spirit ofa anticipating market? in the spirit of a prediction, anticipating market? in the spirit ofa prediction, i anticipating market? in the spirit of a prediction, i am anticipating market? in the spirit of a prediction, iam not anticipating market? in the spirit of a prediction, i am not terribly concerned about the tariffs. the chinese will come back with 16 billion impact on the voter base of donald trump for the mid—term elections. it will improve towards the end of the year. well, the us is not the only country with strained ties with china at the moment. there have been reports australia wants to block huawei from a major wireless
5g network because of security concerns. a letter was sent to australian mps that it had the excluded from supplying equipment to the project. norman foster, one of the project. norman foster, one of the most famous architects. a new name has been added to that list, only in his 40s, creating some of the world's most famous links to pick we went to meet him at the latest he has designed in singapore. be if the tallest skyscraper in china, to the cctv tower in ageing, he has a reputation for building epic architecture. i met him at his most epic architecture. i met him at his m ost rece nt epic architecture. i met him at his most recent development, the towers in singapore, to find what inspires
his designs. i really believe asia isa his designs. i really believe asia is a context which looks ahead very strongly. in a way what unites these projects is really an attempt to redefine the way that things were done previously, to break with the status quo, and asked the question how could we develop models for the future? his talents do notjust limiting to buildings to be a movie buff, he even designed an open—air cinema. -- buildings. it was in thailand. it was a personal project to bea thailand. it was a personal project to be a creation for a friend of mine that started a film festival in thailand. as we were watching the movies, the ocean was slowly moving the audience. his work is not without controversy. after unveiling the cctv towers, the chinese president, xijinping, the cctv towers, the chinese president, xi jinping, famously called for an end to weed architecture. —— weird.
called for an end to weed architecture. -- weird. it should not be short—lived and it should not be fashionable in that sense. but it should be born out of a question of what to buildings to? not only have a function, what they do for people and how they engage life and orchestrate life in positive ways. his next stop is not far away. it is sure to get attention. it is cold empire city indian arm, it resembles rice terraces in the sky. a quick look at the markets. flat markets. the nikkei injapan falling because of trade tensions. hong kong is shut today. that is it for the programme. bear that in today. that is it for the programme. bearthat in mind. the top stories this hour: a day of surprising result of the world cup. defending champions germany lost 1—0 to mexico. health officials have welcomed theresa may's announcement of increased
funding for the nhs in england. the prime minister has been criticised was saying some of the money will come from savings made after the uk stops contributing to the eu budget. here is health editor hugh pym. it was a winter of severe stress across the nhs. ministers were under pressure to find more money. all of that led to today's announcement. the big question was, how much cash will the service need in future decades with a growing and ageing population? the prime minister has tried to answer with a five—year funding plan. partly paid for, she says, by money saved after brexit. that will be through the brexit dividend, the fact that we're no longer sending vast amounts of money every year to the eu once we leave the eu. and we as a country will be contributing a bit more. and in terms of the improvements we want to see, we want to see improvements in performance issues which matter to people today — a&e, waiting times — but i also want to see improved survival rates from cancer.
the boss of one leading hospital, reflecting the views of most service leaders, welcomed the new funding announcement. people may say well, we need more money, or we are much behind in terms of budget. i think it's a substantial increase in the budget for the nhs and it's certainly going to help us and our patients. as well as the new funding for england, an extra £4 billion a year by 2023 will be provided to scotland, wales and northern ireland. 0verall some analysts believe the new money won't to live for any improvements to services. it isn't enough on its own to either tackle the backlog of waiting lists, improve cancer or mental health. so if we want any improvements in those areas, something else is going to have to give. today's funding allocation is for front line nhs services in england, like hospital care. it doesn't include either public health, with prevention initiatives, or training of nurses and doctors. those budgets won't be announced until later this year. and it doesn't cover social care. the government says we will have to wait for further announcements on that.
the care minister recently told the bbc that more money for the nhs without more money for social care is like running the bath with the plug out. only when all the elements are in place will it be possible to get a clearer picture of the future path for the health service. hugh pym, bbc news. that is it from me. as always, you can get in touch through social media. now it is time for the full update on all of the sports news in sport today. i expect she will be talking about the world cup. is the sport to live to a sport
centre. coming up poland are surprises in russia, but it is mexico who sends shockwaves by beating germany in their world cup opener. and favourites brazilfail to win their opening game of a world cup for the first time in 40 years as they draw with switzerland. and brooks kept defends his us open title, becoming the first back—to—back champion since 1989. hello and welcome to the programme. we begin in russia, where it is a desire to eat you remind ourselves to expect the unexpected at this world cup because of the first argentina and germany all failed to win their opening matches in the same tournament, with mexico's victory over