tv World Business Report BBC News April 17, 2017 5:30am-5:46am BST
this is bbc news. the headlines: the turkish president has narrowly won a referendum he called on his plans to substantially increase the powers of the presidency. unofficial figures gave recep tayyip erdogan just over 51% of the votes. america's vice president, mike pence, has visited the demilitarised zone in south korea, just as tensions remain high following north korea's decision to test—fire what is believed to be a medium—range missile this weekend. police in the us state of ohio are hunting a man they say committed a murder live on social media. officers in cleveland said steve stephens broadcast the shooting of an elderly man on the video streaming service facebook live. prince harry has revealed he went for counselling, after spending nearly 20 years trying to not think about the death of his mother. he was only 12 when diana, princess of wales was killed in a car crash in paris.
what hard landing? china reveals its economy is growing nicely, so were we worried about nothing? we tell you what the experts are saying now about the world's second—biggest economy. chocolate wars. cadbury grapples with a nationwide backlash in new zealand, as it prepares to move its factory there to australia. welcome to world business report, i'm sally bundock. also in the programme: lloyds is poised to set up a european base in germany. details in a moment. but first: so what has all the fuss been about?
the latest numbers from china show its economy has grown by 6.9% in the first three months of this year. that is better than most were predicting, and slightly ahead of the government's own target of.5% growth. so do we need to be concerned anymore about the state of the world's second—biggest economy? well, if we take a look at last year, it grew by 6.7%. that was its slowest pace in 26 years. and last month, premier li keqiang said the government was cutting its economic growth target for this year to 6.5%, this as the government tries to get china used to what they call the new normal, ie china growing at a slower pace, and moving to an economy fuelled more by domestic demand and less by exports to the rest of the world. but the organisation for economic co—operation and development says china's private and public debt could be a big problem in the future, as it has now exceeded 250% of gdp, and could lead to a destabilising economic crash.
and, despite increased lending restrictions, people are still borrowing to invest in the red—hot property market. for example, february's figures show prices for new homes rising byjust over 24% a year in beijing. our asia business corresponden karishma vaswani joins us from singapore. nice to see you. give us your take on how how healthy things. analysts have been speaking to say it has come above what many people expected at it is really important to point out that while we should always remain sceptical about these official figures from beijing, remain sceptical about these officialfigures from beijing, it is important to look at the number on the whole as a sign, it seems, as china's growth rate stabilising. the trajectory seems to be stabilising. as you said earlier in your introduction, growth rate last year coming in at the lowest rate in 26
yea rs. coming in at the lowest rate in 26 years. but it looks like, if you look closer at the data points which have helped china's economy to grow this time around, it is the same object. it is state investment, it is the property market. so where is that transition that beijing has continuously talked about over the few years, moving from the old tricks, the old parts of the economy, into a new modern economy? we are not seeing that is the main drivers of growth just yet. but having said that, these kind of shifts do take time, don't they? they are not something that can come into place quickly and many have been really warning about china heading for a hard landing. very difficult times ahead. is that still the concern in the background?” think the bigger concern isjust how sustainable this growth rate is. now, if you look at the typical first—quarter figures, now, if you look at the typical first—quarterfigures, they now, if you look at the typical first—quarter figures, they do tend to give you a sense of what is going to give you a sense of what is going to have over the next 12 months. but
i think, especially according to many of the analysts i have been speaking to, we won't be seeing a 6.9% figure in the quarters ahead. it may come down a bit. poverty will not continue to grow as much. because remember, the government is very concerned about how that is an overheating sector —— property will not continue to grow as much. they have put in some measures which will show up in the later part of the year. in terms of the 6.9% figure, we are unlikely to see that in the quarters ahead. what we will see as china's growth rate coming in at around a figure that authorities in beijing have been broadcasting, and that will continue with the narrative of slowing, gradually slowing chinese economy. for now, thank you much indeed. there is plenty more analysis of china's growth figures available online. just head to our website, or download the bbc news app. here, you will find both text and video coverage of all of the stories covered on business throughout the day. in other news: lloyds banking group has decided to set up a base
in germany after the uk leaves the european union, according to bbc sources. several british financial institutions are putting plans in place to protect their eu operations after brexit. lloyds is the only major british lender that does not currently have a subsidiary in another european union country. the bank is believed to have considered both frankfurt and amsterdam for its european base, before finally opting for berlin. united airlines is changing its policy on giving staff last—minute seats on full flights, after a man was dragged screaming from an overbooked plane. the airline said that, in the future, crew members would be allocated seats at least an hour before departure. it comes after a passenger lost two front teeth and suffered a broken nose when he was forcibly removed from a flight last sunday. the us commerce secretary, wilbur ross, has dismissed warnings over protectionism made
by the international monetary fund. in an interview with the financial times, mr ross said that the trump administration is far more liberal in its stance towards trade compared with europe, china and japan. the comments come ahead of the imf‘s meeting in washington later this month. the passing of lent normally signals a time of celebration for the world's chocolate makers, but there has been a nationwide backlash in new zealand against the decision by chocolate giant cadbury to move its operations to australia next year. the company's american owner says it is not profitable enough to keep the factory in the south—east of new zealand, and hundreds ofjobs could be lost. mauricio olmedo—perez reports from auckland. the world—famousjaffa race brings
out the cheering crowds in their thousands, as cadbury chocolate balls made just down the road roll down the world's steepest street. but now crowds are protesting against cadbury, which has made chocolate here since 1930, and become a part of the community's identity. i think it's disgusting, because we're making a profit here. i mean, it's not like we're not. the workers work hard. despite turning a profit, the company that owns cadbury says the factory isn't sustainable, and more than 360 workers will lose jobs, a major blow for a provincial centre. it's about time our multinationals begin looking after people who have been looking after them for the last 100 years. contractors, tourism.
there are reports of keeping cadbury world open, but it's a bit silly having it open without the cadbury behind it. it has over 100,000 visitors per year. it wants to redevelop the tourist attraction. for many, it isn't enough. a national campaign has been started to boycott cadbury products. while one company claims it is not profitable fruit to produce chocolate in new zealand, just north of wellington, whitakers is proving otherwise. it has been making chocolate for more than 120 years, and has become one of the country's success stories. we have shown that we are growing. big multinationals often have strategic views in certain areas, and i think we are just solely focused on quality of product. the family—run business has been growing, using innovative flavours and slick marketing. now, it is taking a careful approach into the middle east, canada and asia. we don't try to spread ourselves too thinly. we just need to focus on particular areas.
when you look at china, in particular, the change in demographic is the biggest opportunity on our horizon. and, with its main competitor's production now leaving new zealand, the prospects for the southern chocolatier are mouthwatering. let's look at market is really quickly. an unusual day to day, a bank holiday in many countries around the world because of the easter long weekend. japan is open and trading, down 0.5% khazova very strong yen against the dollar. that figure at the bottom is not correct, so figure at the bottom is not correct, so ignore that for now. in many cases, markets are closed. hong kong is closed, shanghai is open and down slightly, despite those growth figures out that we discussed earlier in the programme. stay with us. earlier in the programme. stay with us. we will look at some of the main stories in the news and what the newspapers are saying about turkey. a specialist squad of police
and prison service staff has been formed to tackle the use of drones to smuggle contraband, like drugs and phones, into prisons. the officers in england and wales will study how to catch those operating the drones to deliver contra band direct to prisoners' cells. daniel sandford reports. wandsworth prison last year, and delivery direct to a cell window of a package containing and mobile phones. the parcel was being carried via cheap quad copter drone. the invention of these easy to fly remote control aircraft has caused a huge security headache. suddenly prison walls are not much of a barrierfor prison walls are not much of a barrier for those wanting to smuggle contraband barrier for those wanting to smuggle contra band into jails. barrier for those wanting to smuggle contraband into jails. the prison
service's response has been to set up service's response has been to set upa service's response has been to set up a national squad of police and prison officers across england and wales, who will now pull intelligence. they will forensically examined captured drones, like this found near pentonville, to find out who was flying them and share information about the types of quad co pter information about the types of quad copter ‘s and methods used, in an attempt to curb the problem. though the prison service could give few details about how many officers would be involved in the drone squad, or how big budget was. even before the squad was set up, there we re before the squad was set up, there were some recent successes, with three men receiving jail sentences of over four years for their roles in flying drugs and phones over prison walls. coming up at 6:00am, on breakfast: sian lloyd and rogerjohnson will have all the day's news, business and sport. they will also have more on flying cars. a dutch start—up is claiming to have made them a reality.
powered by a propeller and a 100 horsepower engine, the car's lift comes from a rotor blade on top. it can travel at speeds of 110 mph in the air, and 100 mph on the road. the top stories this hour: the turkish president has narrowly won a referendum he called on his plans to substantially increase the powers of the presidency. unofficial figures gave recep tayyip erdogan just over 51% of the votes. america's vice president, mike pence, has visited the demilitarised zone in south korea, just as tensions remain high following north korea's decision to test—fire what is believed to be a medium—range missile this weekend. police in the us state of ohio are hunting a man they say committed a murder live on social media. officers in cleveland said steve stephens broadcast the shooting of an elderly man on the video—streaming service facebook live. prince harry has revealed he went
for counselling after spending nearly 20 years trying to not think about the death of his mother. he was only 12 when diana, princess of wales was killed in a car crash in paris. now it is time for our news review. as you would expect they are all over social media and the press on with a look at some of the newspaper headlines. the front of the irish times carries a picture of turkish president recep tayyip erdogan, who has vowed to press ahead with the constitutional changes approved in a referendum. election officials say he took 51.5% of the vote. the japan times leads with north korea and america who says it's working on a "range of options" with china,