tv Asia Business Report BBC News September 13, 2018 1:30am-1:46am BST
bbc news. our top story: nearly two million people have been ordered to leave their homes as hurricane florence nears the us. it's forecast to hit north and south carolina in around 2a to 36 hours, bringing with it hurricane—force winds and torrential rains. vladimir putin says two men accused by britain of attempting to murder former spy sergei skripal and his daughter yulia are not criminals. the russian president says the men are civilians and has encouraged them to give their version of events. and this story is popular on bbc.com: a nine—year—old schoolgirl has sparked intense debate in australia after refusing to stand for the national anthem in protest at alleged institutional racism. student harper nielsen claimed the song ignored the nation's indigenous people. that's all. stay with bbc world news. and the top story in the uk: pro—brexit conservatives say they've found a way of dealing with the irish border after britain leaves the eu, but their proposals challenge
the prime minister's official plan. now on bbc news live to singapore for asia business report. apple says its new line of products are bigger and better, but will they help the tech giant beat its competition? the class of 2008 had a tough time finding work during the globalfinancial tough time finding work during the global financial crisis. tough time finding work during the globalfinancial crisis. find tough time finding work during the global financial crisis. find out where they are today. good morning, and welcome to asia business report, live from singapore, with me, mariko oi. it is arguably what apple fans have been waiting for, the firm just released shiny new products
including the latest versions of iphone and an updated watch model. it has been an eventful year for the tech giant which became the world's first ever publicly traded company to reach the $1 trillion mark, but it also recently found itself under president trump's crosshairs when he suggested apple should manufacture iphones in the us. let's show you what apple an ounce to overnight in roughly 90 seconds. —— announced overnight in roughly 90 seconds. well, investors didn't seem too impressed, though, with shares in apple down 1% and meanwhile on wall street company known as china's tesla entered twists and turns on the first day of trading. it seems chinese electric cars have arrived in the us, well, at least they made their debut on the new york stock exchange. so, why is it listing in america? it wants to raise money. 0n
the first day of trading, shares fell more than 4% after it opened, but eventually it was able to claw back, ending today 6% higher, not bad on day one. n10 hopes to eventually bring the electric cars to the us in 2020, but right now the story is in china, where n10 is trying to take on another electric car maker tesla. so far they have had some success. in four years the start—up has sped into production. nio's electric cars cost half as much as tesla's model x and according to the ceo they are better cars. nio's entrance to the financial market comes at a difficult time for tesla when this week two tesla execs and announced they were leaving. elon musk was found on a podcast smoking marijuana and drinking whiskey. all this week
we have been marking the ten year anniversary of the collapse of lehman brothers and since the global financial crisis, china has been attempting to transform the country's economy, by moving away from the reliance on exports to one where growth is driven by domestic demand. as a result, though, the economy is sitting on top of a huge pile of debt, and until recently that was probably the biggest threat to china's economic growth. then came the trade war with the us. well, joining us now from shanghai is our correspondent robin brant — it is good to see you this morning. with the threat of a trade war, the issue of this huge debt, has that gone away? no, it hasn't. it is still a real concern, in particular, for central bankers beyond the states, beyond asia, we heard from mark carney, governor of the bank of england, yesterday referring to china being top of the list in terms of international financial risk. we
have seen moves to deal with the problem in china by the authorities, moves to deleverage, focus on debt and equity swaps, and structural change dominated by state—owned entities, steel and coal, and if you're not convinced, in terms of the threat of contagion, go back to 1997, china accounted for 3% of global gdp, now it accounts for 15% of global gdp. so we've seen efforts to loosen in terms of credit and money within the financial system here, changes to bank reserve requirements just last month as well. credit growth is slowing. it continues to grow. so let's have a look at the debt level. according to the imf, by 2020, get in china as a percentage of gdp could be up at 300%, and the bulk of that is municipal debt, state—owned entities and many believed that level is
simply unsustainable. and i guess the strength of the economy has allowed china to weather the financial crisis a decade ago quite ok? financial crisis a decade ago quite 0k? yes, i mean, china did well, there was no recession mainly thanks toa there was no recession mainly thanks to a massive financial stimulus. it spent some $600 billion focused very much on notjust getting credit money into the economy but massive infrastructure spend. it came at the right time. china was trying to shift away from the export led economy to one that was focused on domestic consumption. and the political model helps. when you have authoritarian leadership that can control the levers of the economy china was able to do that. so let's look at one last figure on gdp in china. if we look at chinese gdp, double—digit growth ten years ago still standing at 6.7%, for many western economies that is hugely, hugely impressive. and so does it
mean that they are in a better position to deal with the debt problem? look, we've seen a crackdown on some areas of debt, in particular shadow banking, now, this is an industry, sector that has seen huge growth in china, used by companies to raise money for global expansion, used by municipal governments to help their infrastructure spend, but there are echoes very much of some of the products we are seeing sold, and lack of regulation we have seen sold that was in the us economy previous two 2007. let's just look at one figure, wealth management products, high yield, but high risk products sold by financial institutions, that is now a $4 trillion business, 80% of china's gdp, the government hugely worried about that, so we've seen a hugely worried about that, so we've seen a crackdown, we seen an increase in regulation in that sector, but there are still big concerns in particular about shadow banking and the role it plays in
china's economy. and i guess a lot of asian countries and economies have been relying more on china since the global financial crisis as a result? yes, they have, and like i said, look to the gdp figure, ten yea rs said, look to the gdp figure, ten years ago china accounted for 3% of global gdp, now it stands at some 1596, global gdp, now it stands at some 15%, so if you are not persuaded about the threat of contagion, you know, not just in about the threat of contagion, you know, notjust in asia, but beyond, just remember growth in china and how significant it now is in terms of global economic growth. robin brant, in shanghai, thank you so much for your insight. in other business newsmaking headlines this morning, the indian tycoon vijay mahlia will wait until december to see if he will be extradited from the uk to india to face fraud charges. dehli wants to extradite the 62—year—old businessman to face charges relating to loans worth roughly 1.4 billion dollars taken
out by his defunct kingfisher airlines. his lawyer says the indian government has not provided any substantial evidence to justify their claims. and, before we go, oil has risen above $80 a barrel to its highest level this year, after larger than expected drops in us crude inventory is an us sanctions on iran adding to concerns over the global oil supply. the trump administration is ready to impose sanctions on oil export and worries about hurricane florence about to hit the us is coast shortly. and here is a look at how markets are faring in the us. we saw the nasdaq falling. the snp and the dow higher after a report that washington might be able to begin bilateral negotiations. the nikkei has opened higher. that's it for this edition
of asia business report. thanks for joining us. you're watching bbc news. i'm rico hizon. the government has put forward its vision of how farming in england will work after brexit. a key part of it is how the current european subsidies to farmers will be replaced. at the moment, uk farmers receive £3.1 billion from brussels every year. in england, those payments make up 61% of farming income. the new system would see automatic payments phased out and farmers receiving cash for performing duties that benefit the environment. 0ur rural affairs correspondent claire marshall reports from dorset. welcome to a very modern farm, where glamping and animals exist in harmony. guests are happy to pay for this view over the cheddar gorge. but this is the core of james small‘s business. he farms livestock. currently, 40% of his income comes from eu subsidies. today's agriculture bill means this will go.
for any business to start losing 40% of its income is a huge hit. we need to ensure that as individual businesses we are doing everything we can to make sure that our businesses remain viable and vibrant into the future. i'm just really keen that it should be based around food production. the new environmental and land management system will reward those who provide the greatest environmental benefit. now it's notjust about how much land you own. i think this approach is absolutely right for all farmers. and we acknowledge that some of the wealthiest farmers with the biggest estates will lose a little bit of money at the edges. but as a result of that we will be able to invest notjust in the environment, but in technology and productivity for all farmers. but, say farmers, what about food production? the most recent data shows the uk only produces 60% of its own food. the nfu has warned the country would run out of food in a year if no deal is reached. this may be the vision
for a green brexit, but the report today has highlighted some real concerns, including mainly the lack of vets and what this could mean for food exports and the health of animals here. this is a routine health and fertility check, a staple in the working life of a vet. but according to the national audit office, if there is no deal then vets will be bogged down in the new paperwork requirements. an emergency recruitment campaign will have to start in october. if we haven't got sufficient veterinary surgeons to carry out that kind of normal daily herd health type of work, then obviously it won't happen or it will be happening less frequently, or it wouldn't be happening to the kind of standards that we would want it to happen. so, as the brexit negotiations grind on, those in the countryside wait to be given a clear direction. claire marshall, bbc news, near dorchester. and we will have a full bulletin at
2am with lebo diseko, now on bbc news, sport today. i'm rico hizon. hello, this is sport today, live from the bbc sport centre. coming up on this programme: calling it the biggest fight of his career, gennady golovkin readies himself for his rematch with canelo alvarez in las vegas. coming to terms with a life—changing crash, double 0lympic champion krystina vogel speaks about the accident that's left her paralysed. and he's the fastest man on earth, now usain bolt shows he's pretty quick when there's zero gravity too. welcome to the programme.
mexico's canelo alvarez and kazakhstan's gennady golovkin have been facing the cameras for their final press conference ahead of saturday's fight. it's a rematch of last year where the pair fought a controversial draw and it's without doubt the biggest boxing bout of the year. 0ur reporter ade adedoyin is in las vegas.