is china's recovery is losing steam? factories in the world's second largest economy slowdown. plus we look into why many of the world's largest companies are failing to deliver on their net zero commitments. hello and welcome to asia business report. we begin with china where factories are slowing down. the official pmi index declined to 49.2 in april, below the 50 points which indicates a contraction

in activity. the world's second—largest economy grew faster than expected in the first quarter thanks to robust consumer spending after lockdowns were lifted. but factory output has lagged due to weak global growth and this latest data raises questions about the sustainability of china's recovery. a market strategist told me these numbers show how uneven china's economic recovery has been. fix, economic recovery has been. pretty dire set of numbers, although still an expansion... it has come below expectations, but of course the bigger shock on the manufacturing side, and to see how uneven the recovery is in china. two things worth noting. first, we are coming from a strong first quarter where we had this initial euphoria after the reopening of the economy, as well as some benefit from the chinese new year period. so of course, manufacturers are a little bit

downbeat after that initial euphoria has come down. secondly, my bigger concern is about geopolitics and the impact making the external demand weakerfor impact making the external demand weaker for the china manufacturing sector. we need to monitor that, because those are potentially the structural changes which will impact china over the longer run. but for now, we could see more stimulus measures, the politburo statement that came out on friday already hinted at that, saying they are noting weaker savings and weaker spending and investment as well. so that does signal the chinese economy will be geared up with some amount of stimulus measures for now. we are seeing reports that a deal to rescue the first republic bank is imminent. us regulators have reportedly asked six banks to bid for the embattled lender. their shares

plunge last week after it admitted that customers had withdrawn $100 billion in deposits in march. at that time its competitor silicon valley bank had collapsed wanting fears of a crisis. that was swiftly followed by the demise of another us lender, signature bank. we werejoined by of another us lender, signature bank. we were joined by thomas but phil hayes for his take on what to expect from a rescue deal. ~ ., ., ., , ., deal. we are going to see what ha--ens deal. we are going to see what happens tonight, _ deal. we are going to see what happens tonight, either - deal. we are going to see what happens tonight, either they i happens tonight, either they get a deal and jp morgan and others were invited to bid. usp and bank of america declined the opportunity. the odds are on a receivership and then a bid for the assets. if they do, it will be at a very small level. they have lost $22 billion of market cap. your earlier point, when you see a bank they are like silicon valley bank, you can say it was management, they didn't hedge their risks, but then you saw

signature bank, till the day capital and now first republic, and it all points to a common denominator. the fed has moved to aggressively and quickly, steepest hiking cycle in 40 years and things are starting to break, so they have to ease off, and this comes at the perfect time considering we have the fed meeting on wednesday.— have the fed meeting on wednesday. have the fed meeting on wednesda . ., .,~ ., wednesday. you make that point of course- _ wednesday. you make that point of course. the _ wednesday. you make that point of course. the fact _ wednesday. you make that point of course. the fact you _ wednesday. you make that point of course. the fact you are - of course. the fact you are seeing this spill—over in the wider banking sector, how concerned are you about the health of other us banks against this backdrop? well, ou have against this backdrop? well, you have 4696 _ against this backdrop? well, you have 4696 of _ against this backdrop? well, you have 4696 of deposits i against this backdrop? well, you have 4696 of deposits in | against this backdrop? well, i you have 4696 of deposits in the you have 46% of deposits in the united states that are still uninsured. the thing that would seal this up right away is if the executive branch, which has the executive branch, which has the ability to do so in times of emergency, would step in and say, we are going to do a temporary backstop on all deposits for the next 24 months until congress can get together and increase the insurance may be from 250,000 to 500,000.

that would probably quell some of the problems. banks in general, certainly the larger banks, are very well capitalised. it's nothing like 2008. however, there has been... inaudible. the problem, if you look at the history of what paul volcker did, he stopped hiking rates and even started cutting rates in 1982, while inflation was still above 6%. why did he do that with inflation still so high? it's because he understood the lagged effect of an aggressive tightening policy that he did in previous months. powell really needs to come to that conclusion even though inflation hasn't met his targets, that he can pause, assess the data over the next few months, if he needs to go back to hiking, he can do so. but when you start to see things to break, it's time to pause. if he did, he would say a big settling in the banking

system. a big settling in the banking s stem. ., . �* , a big settling in the banking s stem. ., ., �* , ., system. not that i'm trying to de-end system. not that i'm trying to depend chair _ system. not that i'm trying to depend chair power, - system. not that i'm trying to depend chair power, but - system. not that i'm trying to depend chair power, but can i system. not that i'm trying to l depend chair power, but can we blame _ depend chair power, but can we blame all— depend chair power, but can we blame all of this on higher interest_ blame all of this on higher interest rates, thomas? isn't it also— interest rates, thomas? isn't it also down to the fact that regulation isn't as tight as it could — regulation isn't as tight as it could be _ regulation isn't as tight as it could be in the united states, and that— could be in the united states, and that has been an issue for the banking sector as well? | the banking sector as well? certainly the banking sector as well? i certainly wouldn't blame it on the loosening of policy that you saw in recent years. that was not impactful as it relates to these four. was the supervision a bit lax in san francisco? yes. in signature bank? yes. but there were warning signs. this is a symptom of the steepest hiking cycle in the last 40 years, and you just can't knock problem, you just can't knock problem, you have all these deposits from all the stimulus during the pandemic, you got them all at once, at the exact worst time to reinvest, when rates were effectively zero. and these banks did not do any cowboy type of investment. they

weren't reaching for crazy things. if you look at silicon valley bank, it had 5.7 years duration in us treasuries. they forced these deposits from the stimulus checks into the banks, which had to invest them. maybe they could have been slightly lower duration but they have to make some income. it the unintended consequence of the plan obviously to get a hold of inflation, but inflation has been coming down since last july and it's time to let it work through the system. thomas hayes. 0n sustainability, more than a third of the world's largest companies have made a commitment to net zero. a recent report says nearly all of them will fail if they don't pick up the pace by 2030. in big businesses, we have learned that impacts on the supply chain account for more than 80% of greenhouse gas emissions. so how can firms decarbonise

effectively, especially those with extensive supply chain networks? the chief executive of a consultancy that helps businesses calculate their carbon footprint and find ways to reduce them told me earlier that supply chains are at the centre of corporate carbon emissions. centre of corporate carbon emissions-_ centre of corporate carbon emissions. just eight supply chains globally _ emissions. just eight supply chains globally account - emissions. just eight supply chains globally account for. chains globally account for more than 50% of the world greenhouse gas emissions. what you start to see in large enterprises, the minute there is a supply chain involved, the indirect emissions coming from the supply chain are nearly 85, sometimes 90% of the total emissions. what this means for corporates, there's almost no escaping putting a really tight lens on how to decarbonise the supply chain. gone are the days that you could say, i worry about the operations and i take accountability for my operations. what the supply chain does, i can't really control. so this is why we see

companies go down two journeys, really. thejourney companies go down two journeys, really. the journey of data and being able to get better connected, better visibility into their supply chain. but at the same time, also thinking about specific decarbonisation approaches. whether it is responsible procurement, thinking about renewable energy or many others.— or many others. which industries _ or many others. which industries are - or many others. which industries are you - or many others. which i industries are you seeing or many others. which - industries are you seeing these trends in, any particular industry that supply you, for instance?— industry that supply you, for instance? , , , instance? the big industries, everything — instance? the big industries, everything on _ instance? the big industries, everything on food _ instance? the big industries, everything on food to - instance? the big industries, i everything on food to consumer products to agriculture, construction etc. the top eight supply chains that we think the world should be hyperfocused on decarbonisation. some of the surprises often come from thinking about the fact that companies actually today have all the technologies they need to be able to decarbonise and get to at least their 2030 goals. and yet you say inertia

in getting started down that process. this is why we think applying a technology approach to this challenge is very helpful to get to those net zero plans. helpful to get to those net zero plane— helpful to get to those net zero lans. ., ., zero plans. that conversation about sustainability - zero plans. that conversation about sustainability and - zero plans. that conversation about sustainability and the l about sustainability and the goals for companies trying to hit net zero targets. before we 90, hit net zero targets. before we go, let me tell you how adidas is being sued by investors who claim that the firm knew about kanye west's problematic behaviour years before it ended their partnership. investors allege that adidas failed to limit financial losses and take precautionary measures to minimize their exposure. in response, adidas said, we outright reject these unfounded claims, but added they would take all necessary measures to vigorously defend itself. the sportswear giant ended its collaboration with the designer and rapper last year following his anti—semitic comments. for now, that it from asia business

report. thank you so much for watching, stay with bbc news. i'll see you with more business news in the next hour. a project began to bring the moth back. now volunteers are helping conservationists monitor progress. it is thought to be the only footage ever recorded of a black rained moth caterpillar. 50 recorded of a black rained moth caterpillar-— caterpillar. so you found it? yes, this — caterpillar. so you found it? yes. this is _ caterpillar. so you found it? yes, this is a _ caterpillar. so you found it? yes, this is a caterpillar - caterpillar. so you found it? yes, this is a caterpillar of l caterpillar. so you found it? j yes, this is a caterpillar of a black— yes, this is a caterpillar of a black rained moth. in a

nationai— black rained moth. in a national nature reserve, this is the — national nature reserve, this is the epicentre of their population in the uk. all of the individuals that have been spreading out across this area came — spreading out across this area came from here, this is a new field _ came from here, this is a new field we — came from here, this is a new field we didn't have confirmation they were reading here _ confirmation they were reading here and — confirmation they were reading here and finding a caterpillar is through for us. it�*s here and finding a caterpillar is through for us.— here and finding a caterpillar is through for us. it's taken a uuarter is through for us. it's taken a quarter of— is through for us. it's taken a quarter of a _ is through for us. it's taken a quarter of a century - is through for us. it's taken a quarter of a century of- is through for us. it's taken a | quarter of a century of habitat work to expand the mock�*s habitat from two to 24 fields. farmers have worked with conservationists to convert unproductive fields back to grassland, with wildflowers caterpillars the field on, and long grass where they hide from predators.

spike the king penguin is now king of the world, voted most popular penguin in an international online voting competition. and that's despite his past misdemeanours. he

cooed on _ his past misdemeanours. he: cooed on said david attenborough nearly ten years ago. he is a local celebrity definitely. 32 ago. he is a local celebrity definitely-— definitely. 32 penguins competed _ definitely. 32 penguins competed for - definitely. 32 penguins competed for the - definitely. 32 penguinsj competed for the title, definitely. 32 penguins- competed for the title, the contest was organised by penguin international, a lobby group aiming to raise awareness of the birds' plight. you group aiming to raise awareness of the birds' plight.— of the birds' plight. you are auoin of the birds' plight. you are going to — of the birds' plight. you are going to be _ of the birds' plight. you are going to be sent _ of the birds' plight. you are going to be sent a - of the birds' plight. you are going to be sent a paper i of the birds' plight. you are i going to be sent a paper crown as a prize, will you be putting it on spike?— it on spike? no, he wouldn't tolerate it — it on spike? no, he wouldn't tolerate it at _ it on spike? no, he wouldn't tolerate it at all. _ it on spike? no, he wouldn't tolerate it at all. i _ it on spike? no, he wouldn't tolerate it at all. i only - tolerate it at all. i only handle _ tolerate it at all. i only handle him for vet checks a couple _ handle him for vet checks a couple of _ handle him for vet checks a couple of times a year. putting on wing — couple of times a year. putting on wing tags. otherwise you try to grab— on wing tags. otherwise you try to grab them, they will give you a — to grab them, they will give you a good old flat with their wing — you a good old flat with their win. �* , ., wing. but there will be a secial wing. but there will be a special ceremony - wing. but there will be a special ceremony to - wing. but there will be a i special ceremony to honour spike, its plans for may sixth, the same day as the coronation.

hello. i am in the bbc sport centre. coming up on the programme. manchester city return to the top of the premier league with a vital win against fulham. liverpool throw away a three goal lead against tottenham only to score a last minute winner in an action packed day at anfield. and the first ever 147 in a world championship final. it's been a slow burner between brecel and selby in sheffield. hello and thanks forjoining us. here's your latest sports news. we're starting with football and it was a record breaking day for erling haaland as manchester city went back on top of the premier league. they beat fulham 2—1. haaland scoring his 50th goal of the season in all competitions — a stunning achievement and a record that has stood for over 90 years. he also equalled the record for goals in a premier league season with 34. it's the first time city have topped the table

since february.