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tv   Asia Business Report  BBC News  February 5, 2019 1:30am-1:46am GMT

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and canada has urged the venezuelan military to support the opposition leaderjuan guaido as interim president. the ill—nation lima group called for a change of government without the use of force, and the immediate delivery of humanitarian aid. german chancellor angela merkel has been meeting the japanese leader shinzo abe injapan to talk about trade as global economic tensions rise. among the topics are the us—china trade war and brexit. and this story is popular on bbc.com: the american hip—hop rapper 21 savage has been arrested by us immigration officials. they say he's from the uk and overstayed a visa when he came to america at the age of 12. you're up to date. stay with us. and the top story in the uk: nissan will have to reapply for millions of pounds in government funding, after scrapping plans to build a new model in the uk. now on bbc news, live to singapore
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for asia business report. happy lunar new year. we look at what the year of the pig holds for the chinese economy and who will benefit. google down. the search giant's parent leaves wall street forecast, but its shares fall in after—hours trade. good morning, asia. hello, world. welcome to this tuesday edition of asia business report. i'm rico hizon. with china celebrating this festive season from today, the world's second—biggest economy has virtually ground to a halt as hundreds of millions of
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people travel home for the holidays. this is of course a temporary blip, but the country is dealing with sluggish growth rate not seen in almost three decades. beijing unveiled the year to prevent deeper slowdown, there are doubts about how effective stimulus will be at who will benefit most from it. robin brant reports from shanghai. this is where china's leaders think the answer to a slowing economy lies. perched by the river that bisects shanghai, the banks. they are the key to what the government hopes can be a soft landing. president xijinping has hopes can be a soft landing. president xi jinping has described china's slowdown as a struggle. so to strive for victory there are a slew of new measures. a series of tax cuts to put more money in pockets. a splurge of infrastructure spending, more than $300 billion this year. and cut to bank reserves. they don't have to keep as much in the safe so they will loan more for spending. but there are limits. when
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it comes to stimulating the economy the government always goes to infrastructure investment. infrastructure is 20% of gdp. $200 trillion a year. it is not easy to move the needle when the base is so large. infrastructure spending, new ra i lwa ys large. infrastructure spending, new railways and bridges, isn't what this man is hoping for. but the banks won't be much help either. because even in a stimulus, it isn't private firms, tech start—ups like his, that china's government aims to stimulate. it wasn't government money that got this company going and there won't be any government money if things get tough in the year ahead. what this company needs to survive and
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maybe thrive is more consumers, more shoppers, and that's where the tax cut comes in. china has long relied on massive schemes like this to boost its economy, but now its leaders think that consumers, not just bridge builders, are the secret to success. the question is, can a stimulus reach both? shares in google's parent company have fallen in after—hours trading despite alphabet posting fourth—quarter numbers that beat wall street expectations. 0ur business correspondent michelle fleu ry business correspondent michelle fleury explained why the share prices down. you have to look at the story. a bet, parent company, it reported soaring sales, better than expected, just days after its rival facebook reported record earnings, but here is the thing. what you are seeing is concerns about how much the company is having to spend to fuel this growth. much of the growth
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came from online advertising business when it comes to google, the internet search engine. but it is having to spend more to try and get companies to advertise with it. that is what spooked investors and thatis that is what spooked investors and that is why you are seeing the sell—off. in other technology news, slack technologies is officially gearing up technologies is officially gearing upfora technologies is officially gearing up for a public stock listing. the firm said it had filed a confidential notice in one of the yea r‘s confidential notice in one of the year's biggest notifications, it could be seeking a $10 billion valuation. the uk home secretary has approved extradition of the indian business tycoon vijay malia, who once owned kingfisher beer, defaulted on debts of more than $1 billion. —— vijay mallya. let's ci’oss billion. —— vijay mallya. let's cross over billion. —— vijay mallya. let's cross over to billion. —— vijay mallya. let's cross over to samira
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billion. —— vijay mallya. let's cross over to samira ashmi. —— samira hashmi. vijay mallya will $0011 samira hashmi. vijay mallya will soon face the music in the indian courts. well, rico, he is one step closer to being extradited. this is a significant step in that sense. the home secretary has signed off that he can be extradited to the uk, but now mr mallya has 1a days to file for appeal in the london high court. and after that it could take two or three months for that appeal to be reviewed. the lawyer, mr mallya's lawyers, or have a chance to argue their case again. and then if the court decides to extradite him, then mr mallya could very well be extradited. this whole process could take two or three months. from india's point of view it is very significant. the uk home secretary has signed this. the uk has a record when it comes to extraditing people. it has a very low record in terms of the number of people who have been
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extradited. for india remember this is significant for two reasons. number one, mr mallya owes indian banks over $1 billion, at which he default it. second, he is also seen as the face of the non—performing assets in india. india has been struggling, grappling with high amount of non—performing assets. in fa ct amount of non—performing assets. in fact it is almost $140 billion right now, the number of non—performing assets, that has put a lot of pressure on indian banks and in turn is putting pressure on the economy. now, with the elections just two months away from prime minister narendra modi, if he manages to get mr mallya into india, it will also bea mr mallya into india, it will also be a big political bliss. so in that sense this is very significant in india. indeed, thank you so much for that update on mr mallya being extradited back to india, the bbc india business report samira hashmi joining us from the bureau in india. angela merkel
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begins her second day injapan today. during a joint press conference on monday prime minister shinzo abe said he had told angela merkel that he hopes the uk and eu could avoid an no—deal brexit. translation: in order to minimise the negative impact onjapanese companies in the global economy i expect the brexit process to be carried in predictability and legal stability. one economist or gus earlierfrom stability. one economist or gus earlier from tokyo and explained how japan and germany are strengthening their trading relationship —— who we spoke earlier. this is about reassuring businesses, reassuring countries that what they can do when these superpowers are clashing, when these superpowers are clashing, when the economy is slowing down around the economy is slowing down around the world, building new alliances, new ties among the middle powers as a basis for future new ties among the middle powers as a basis forfuture business, this is their message. indeed, and both countries, though, are watching very closely the february 17 deadline,
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the us is expected to publish a report on the national security implications of auto imports that could justify tariffs on foreign ca rs. could justify tariffs on foreign cars. yes, so far what both countries have to deal with is the situation in the us, how to deal with the threat of higher tariffs in the us and at the same time being able to continue discussions and productive discussions with china. this plays out at the wto, it plays out in many meetings. it will be an important topic at the g20 meeting injune. it is the rebalancing in both directions and keeping their economies going. specifically, though, you have the likes of nissan motors saying it would not build one of its suvs in the uk and the reason, martin, was partly due to brexit. how could this impact germany and the eu going forward? brexit. how could this impact germany and the eu going forward7m has a big impact onjapan and germany, of course, germany in the middle of europe, trying to keep the
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market together as much as possible, they try to be as much forthcoming as possible, but they also need to protect their business ties in both directions. japan is very much concerned because the centre of many of the business ties of japanese companies are in the uk. they are hoping that they can stay there. but the european market is not so important forjapan that they are looking in all directions. and germany is the most important part of for them. staying with the nissan angle the japanese carmaker will be forced to reapply for nearly $80 million of support after backtracking on a promise to build its xtrail sport utility vehicle in the uk. a letterfrom its xtrail sport utility vehicle in the uk. a letter from the its xtrail sport utility vehicle in the uk. a letterfrom the british government to nissan written in 2016 revealed it would only get the money if it made the car in the uk. nissan has received just 3.4 million dollars in funding and will have to reapply for the rest. thousands of passengers have been stranded after air regulators rounded up turkmenistan airline for
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safety reasons. flights from birmingham and london's heathrow have been suspended. cadbury has lost ground in the battle to protect the purple it uses to wrap up the chocolate. lawyers have said the company decided the trademark application is not enforceable after application is not enforceable after a court ruled it was too wide ranging. and with that we end this edition of asia business report. hgppy edition of asia business report. happy lunar new year to all of you. goodbye. this is bbc news. the top stories this hour: a group of latin american countries and canada have called for a change of government in venezuela without force and have urged the army to end its backing for president maduro. and search teams confirm they've sighted a body, in the wreckage of the plane carrying the missing footballer, emiliano sala, and his pilot.
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bin collectors in birmingham who took part in a three—month strike in 2017 are to stage new walkouts in a row over pay. bob hockenhull? reports. with the prospect of two days of strike action every week, birmingham is facing a return to the bad old days of 2017, when uncollected rubbish piled high on the streets. the escalation was announced after a meeting between union reps this morning. i regret that this action is needed, my members have taken it as a matter of last resort and have given the council every opportunity to settle this dispute. i would say to the people of birmingham, firstly, i'm sorry that my members have had to take this action. please put yourself in the shoes of my members, and understand why they have taken this action, and please blame the council. a work—to—rule started on december 29th by unite members is already
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costing the council up to £350,000 each week as it buys in contract staff to help complete collections. when action is stepped up on february 19th, that bill is likely to become considerably higher. i'm bitterly disappointed, i want to have good trade union relations for this city council. we don't want to be in dispute with the trade unions, i want to bring this dispute to an end. when i became the leader of the council, there was a bins dispute on back then in 2017, and here we are back at square one. i want this resolved as quickly as possible. this latest dispute is over extra payments made to gmb union members. unite wants the same payments. the council has said it had no choice. acas ruled the money had to be paid for a failure to consult gmb members over restructuring plans. as the wrangling goes on, residents in moseley reacted angrily to news of the two—day—a—week strikes. i think, you know, as a householder, you just want them to sort it out, just sit down and stop arguing and sort it out.
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i think we need to think very, very carefully about also how we present ourselves as an international city, the second city in the country. i do not believe london would have these issues. they need to get together. i'm very dubious about what the council has been doing. the strikes remain two weeks away, the dispute could get resolved before. but at the moment, neither side shows any sign of backing down. you can get in touch with me. i would love to hear from you. i am you can get in touch with me. i would love to hearfrom you. i am on twitter. mike embley is he in 15 minutes' time with the rest of the day's news and of course the headlines. now it is time to catch up headlines. now it is time to catch up with all of the sport news in sport today and i will see you the same time tomorrow. take care. hello.
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sport today, live from the bbc sport centre. coming up... another game, another draw for liverpool, who miss the chance to go five points clear at the top of the english premier league after a 1—1 draw at west ham. touchdown for the super bowl champions. the new england patriots arrive home in boston and now turn their attention to tuesday's victory parade. and the world of ski—jumping mourns, as four—time olympic gold medallist matti nykanan dies at the age of 55. welcome to the programme. thank you forjoining us. we start in the english premier league, where the leaders liverpool have been held to a 1—1 draw at west ham, which now leaves the door open for manchester city to go top of the table when they play later in the week. jurgen klopp was disappointed at the end,

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