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tv   Asia Business Report  BBC News  March 5, 2018 1:30am-1:45am GMT

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bbc news. our top story. exit polls in italy suggest that no group of won and a majority in the country ‘s general election. the antiestablishment five star movement is rejected to receive the most votes. if exit polls prove correct it will be in power in the next government. thousands of the —— delegates from all over china are arriving for the congress. they are expected to rubberstamp a proposal allowing president xijinping expected to rubberstamp a proposal allowing president xi jinping to rule for life. and the oscars are trending online. celebrities have been arriving on the red carpet in hollywood which has gotten under way. the shape of water is the leading contender with 13 nominations. our top story here in the uk. the athletics world has been paying tribute to sir roger bannister, the first man to run a
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mile in underfour minutes. now for business news from singapore. china is set to make sweeping changes that will give president xi jinping more power and consolidate control over its regular trip policies. and one indian carmaker makes inroads into the us by building a massive auto assembly pa rt building a massive auto assembly part in america's car capital. good morning and welcome to asia business report live from singapore with me. as we can see, china's national‘s people's congress has kicked off and is well in beijing. leaders began by setting 2018 gdp growth at 6.5% the same as last year and an increase in
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military spending of 8%. they are also expected to rubberstamp several sweeping pieces of legislation including removing term women for the president. lawmakers are also expected to create a powerful anticorruption agency and approve a major overhaul of its banking and insurance sectors, putting them under the supervision of one government bureau. all this while there is a transition in leadership at the central bank and the people's bank of china. these changes are crucial to president xijinping's effo rts crucial to president xijinping's efforts to bring down debt levels in chinese companies while the economy cools down. growth has dropped from 10% in 2010 to just under 7% last year and the international monetary fund says that will slow down to below 6% by 2020 to. earlier i spoke to an equities expert in hong kong
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about what putting an end to presidential term limits will move the chinese economy. over the medium term there is likely to be very little impact. in some ways what it does reduce the uncertainty that we may have otherwise seen. from a market perspective over the short to medium term i don't think there is an issue. there will be those who say if the policies are not the way that one would want over the longer term, this may reduce the ability for that to be changed in the future. if we go back and look at the us, around world war two, we had presidents was over two terms as well. i think it comes down to the policies and the individual involved. another massive issue is that this anticorru ption involved. another massive issue is that this anticorruption agency. how is it different to the fact that the government there has been cracking down on corruption for several yea rs 7 down on corruption for several years? one of the things that we are seeing at the moment is power being
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centralised. if you think about some of the policies we seen in china, be it anti— graft or protecting the environment, simplifying the financial system, what we are seeing is that being brought more and more into more of a beijing focused. historically we have seen that done ata historically we have seen that done at a more provincial level. but is a definite trend we have seen. and is the cooling economy and is a high level of debt, are they a big challenge for the president going forward? every economy as it grows and the chinese economy has become quite large now and as a result of that, growth will slow down. from a market perspective i think beijing is too focused on growth. we have seen a correlation between stock market return and growth, it is non— existent. if you look at the us market and its growth relative to china, it is likely will expand. the key here is what most people are looking for is an improvement in a
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type of growth. notjust aboutjobs for the sake ofjobs, it is about betterjobs, for the sake ofjobs, it is about better jobs, advancing the for the sake ofjobs, it is about betterjobs, advancing the economy, about bringing industry forward. i think that will be a key focus. donald trump has begun a local game of tit—for—tat when he said the us will slap a tariff on imported steel and aluminium. the eu struck back saying they would target products likejeans, bourbon saying they would target products like jeans, bourbon and harley—davidson is. but what could this mean for india? i'm joined now by our correspondent. will this affect indian steel producers? not directly. just 2% of indian steel is exported to the united states. what is causing concern here is the damping of cheap imports from countries that would have sold to the us market, countries like korea, japan and russia. the indian government last year introduced
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anti—dumping charges, increased ta riffs anti—dumping charges, increased tariffs on imports and that helped indian producers of steel. the problem is that those charges have 110w problem is that those charges have now become lower than market rates, because of the price of raw material rising, so indian producers are still concerned that these tariffs could affect them. we heard from the european union, we heard from canada. what does the indian government say about this? india's steel secretary says it is not an immediate cause for concern. however, as i mentioned, the anti—dumping concerns that will affect companies which rely on export and also tata steel which has european operations secretary also mentioned that the article donald trump is using to justify these
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ta riffs trump is using to justify these tariffs is slightly stretched. that is that the us has the right to investigate any import that is a threat to national security. thank you so much for that update. as we wait to see how steel and aluminium ta riffs wait to see how steel and aluminium tariffs will play out over the next few days, michigan in the american midwest has long been the capital of the us auto industry. after the financial crisis, some of the biggest car companies headquartered there filed for the. industry in the area went on a downward spiral and has only just started area went on a downward spiral and has onlyjust started to recover. this revival is being aided by an indian carmaker which has set up a factory there and rolled out its first set of cars last week. the first new car factory to be openedin the first new car factory to be opened in the area in 25 years. billed as the torch bearer of the resurgence of detroit, it belongs to
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an indian company that has its eyes set on the us market. an indian company that has its eyes set on the us marketlj an indian company that has its eyes set on the us market. i want to be pa rt set on the us market. i want to be part of the next generation of auto development. the industry is about to be rocked. the american boss tells me why the area was an obvious choice for them. if you put a centre outside of your home country, the best place is probably destroyed. —— detroit. the epa is here, there are test la bs detroit. the epa is here, there are test labs and wind tunnels... it is one stock shop to locate and engineering centre in this area. lawmakers and politicians attended the launch and were all keen to show that this droid's worst is legged—— the launch and were all keen to show that this droid's worslaj be car—— of auto
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when if . 2—1: ”is--- j, , ,,. when if of . 9: ”it" i” m when if of those 9: ”it" i— — m when if of those companies ——— i— — m area. when some of those companies purely bankrupt after the financial crisis, this factory almost did not make it. i can very clearly recall discussions back in 2007, 2008 about whether we would be able to keep this facility open, whether and not have sufficient business would not have sufficient business volume to keep the operation in this location. competition is stiff from other parts of the us. however nowhere is the success of the auto industry more important than in this town. were almost everyone has a personal connection to it. in other business news, the federal
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police of india have made four more arrests involving the state ranking central bureau of investigations since the fraud came to light in january. a quick look at the week ahead. on tuesday we will see of austria's central bank keeps its neutral is dance and holds interest rates at a historic low of 1.5%. one day later we will have an update on the health of australia's economy when it releases its latest growth figures. and japan's central bank will also hold its monetary policy meeting at the end of the week. and investors will be looking for signs of inflation when the us reports its latest payroll numbers. having a look at the markets before we go. all asian markets are lower.
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investors are still concerned about the potential trade war. on friday we saw a sharp fall in asian markets although wall street did recover somewhat on friday. we will continue to monitor that and in currencies we re to monitor that and in currencies were watching the dollar and also the bureau after result of exit polls for italy's elections. that is it for this edition of asia business report. thank you for watching. this is bbc world news. the irish foreign minister has suggested that britain's proposals for the irish border after brexit may be rejected by the eu because it will need to protect how the single market works. simon coveney said there was little new detail on how to avoid a hard border in the prime minister's speech on friday. theresa may has said all parties are committed to avoiding one. eleanor garnier reports. it is more than 300 miles long. tens of thousands of
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people cross it everyday. and more than £1 billion is done in trade between northern ireland and the republic every week. but after brexit, these roads will be the new frontier between the uk and eu. the challenge, how to keep this border invisible, when britain is outside the single market and the customs union. we are committed, the irish government is committed, all the parties in northern ireland, to making sure there is no hard border. the prime minister's plans would mean 80% of companies would face no new customs checks and with new technology, she believes a hard border can be avoided. but the irish government has its doubts. i am not sure that the european union will be able to support a situation whereby 80% of companies that trade north and south and south north will actually protect the integrity of the eu single market. to sort out this most trickiest of brexit conundrums, multiple sides need to be won over and the prime minister has already made clear,
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she will not accept the fallback position in brussels. one that would see northern ireland stick to the rules and regulations of the eu. mrs may believes her latest thinking is a step forward. it sets out some ways, particularly on the issue of customs across—the—board, in which we can resolve that and i am pleased to say that the taoiseach, when i met him recently, has agreed that the uk and irish governments and the commission can sit down and look in more detail at the proposals that we have put forward. but others elsewhere in the uk have their doubts. i think one of the most shameful features of the whole brexit process has been the way, the negligent way in which the interests of ireland have just been cast aside. so, when i hear her talk about technological solutions, i guess there is nobody who would disagree with the objectives she is setting, but she is talking at the moment about technological solutions that perhaps do not even exist. the irish border is a key sticking point in the talks,
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but other problems need solving, too. there has been progress, but the brexit negotiations still have a long way to go. just to remind you, the oscars are under way and the first award already, sam rockwell winning best supporting actor. now it is time for all sports news. hello, i'm told some tolerate and this is sport today, live from the bbc sport centre —— tulsen tollett. coming up: are arsene ‘s days numbers, they slipped further back in the hunt for a champions league place next season. france hold world champions usa to a 1—1 draw at the
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shebelieves cup. phil mickelson beats justin thomas shebelieves cup. phil mickelson beatsjustin thomas in a play—off to win the wgc mexico championship, his first victory since 2013. hello and welcome to the programme, where we start with football news and the pressure has been turned up even more on arsene wenger after arsenal lost for the fourth time in a row for the first time since 2002. brighton and hove albion were 2—1winners over the gunners with lewis dunk and glenn murray scoring for the hosts while record signing pierre emerick aubameyang scored for arsenal. arsene wenger‘s side are 13 points behind tottenham in fourth place and the frenchman concedes that the race for a top four spot is over. it took us a while to get
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