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tv   Asia Business Report  BBC News  July 9, 2018 1:30am-1:45am BST

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story, thai divers preserve them are prepared to resume a challenging rescue operation from a flooded cave in the north of the country. for boys from a youth football tea m country. for boys from a youth football team have already been retrieved on the cape. another nine people are still inside. —— retrieved from the caves. here in the uk — the ministerfor exiting the european union — david davis — and his number two steve baker have resigned. it comes only a few days after the government agreed a position on future relations between britain and the eu. and a woman in britain who was poisoned by the nerve agent novichok has died. dawn sturgess and her partner, charlie rowley, handled an item contaminated with the same substance used to poison a former russian spy and his daughter in salisbury, in march. and a story making headlines here in the uk. prince louis is being christened today. we will have more of that to come.
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firstly, asian business report. investors are gearing up for a volatile week ahead now that the us and china have officially kicked off and china have officially kicked off a trade war. and world cup fandom is not limited to leisure time. we will see spills over to the workplace as well. hello and welcome to asia business report. after a or the sound and fury of the us finally implementing trade tariffs on imports from china on friday, we are now faced with the reality of an actual rate war. much of it may
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still be rhetoric and fiery bluster but there is also a valuable threat to the global economy and that, our next guest says, it hurt investor confidence. he says that on the trade front he expects more tariffs are to come. i think the second tranche of the $16 billion worth of chinese exports to be slapped with another 45% of tariffs, i think that is likely given the fact we have already started the process and china has retaliated. on that note, the market seems reasonably calm because we have been anticipating this for some time. the real question is what will happen next beyond this $50 billion worth of trade war between china and the us. will there be another 200 7 trade war between china and the us. will there be another 2007 president trump warned it could be $400 billion. i think that is where the market is still uncertain. we are hearing more businesses on both side of the ocean struggled to express themselves i will more what could be themselves i will more what could be the impact on their business and
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also on their investment plans and on the consumers. i appreciate that business is starting to count the cost of all of this however this appears to be some sort of negotiation tactic on either side. the figures arejust negotiation tactic on either side. the figures are just getting bigger all the time, like you said, how successful is this, if it is indeed a negotiation tactic? we need to go back to what the us and the chinese want, particularly the us, they want to reduce trade deficit but that is an economic situation of us consumer spending too much and not saving enough. at the same time, if they wa nt to enough. at the same time, if they want to slow down the chinese progress on made in china 2025, that isa progress on made in china 2025, that is a huge part of dina's industrial policy which they are unlikely to back down on. if you return to the starting point of what the us is trying to achieve, i think the chinese will find it very difficult to conceive in this point. what does all of this uncertainty do for
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business and investor confidence? couple of things. with high tariffs it implies that potentially for businesses that profit margin could be eroded and they will have to pay for some of those tariffs and pass some of the cost on to us consumers who are starting to see the very first round impact on us consumers and chinese consumers of some of these tariffs. the good news is that these tariffs. the good news is that the world economy is in pretty good shape so it can take some of this heat. but if the trade war is prolonged, this is where you need to start to rethink investment strategy, the production location, that could be used to a global economy. and in other business news, news coming in in the last hour or so, the government minister responsible for negotiating written‘s withdraw from the european union, david davis, has resigned. the news comes two days after the uk prime minister theresa may outlined her new proposalfor a prime minister theresa may outlined her new proposal for a soft brexit that would keep britain in a free trade zone with the eu. stephen
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baker quit shortly after mr davies as mrs may prepares to face mps and peers. borisjohnson as mrs may prepares to face mps and peers. boris johnson has as mrs may prepares to face mps and peers. borisjohnson has given his backing to the prime minister to using crude language to criticise the proposal. as you can see here and there has been a reaction to that news in early trade. the uk sterling has slipped against the us dollar following news of the resignations which has also put the future of the uk prime minister, theresa may, in doubt and we will follow that story for you on bbc news all day. chinese internet giant 10 cents has submitted a proposal to list its online music entertainment business separately on an american stock exchange. they confirmed the proposed spin—off in a statement that did not reveal the size of the offering zero which market in the us they intend to register with. on to what you can expect this week in terms of economic events on the calendar. it kicks off with an
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initial public offering today. xiaomi will begin trading and the share value is $54 million, drastically lower than they had hoped for. on wednesday, china appears before the world trade organization in geneva as part of a regular review of member countries in the trade grouping. the chinese government has said it remains fully committed to opening up its economy under wto rules. also on wednesday, the malaysians central bank meets and on thursday it is south korea's central bank's turn. will they raise rates to keep pace with the us? and on thursday as well, donald trump is expected to arrive in the uk. to get a sense of what all this means about the economic calendar ahead, investment adviser brock silber says he is being cautious about xiaomi because he feels it is riddled with red flags. it strikes me as a very expensive way to get involved with a
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company with very modest profit and perhaps misaligned interests between management and shareholders as well as, i think, a confused model. and looking forward to the later part of the week we have china at the wto. all of this being framed against that backdrop of beijing and washington fighting it out over trade. what do you think the conversation at the wto will be about and how successful will china be in its attempts to tell the wto that it be in its attempts to tell the wto thatitis be in its attempts to tell the wto that it is doing its best to open up its economy and markets to the world ? its economy and markets to the world? again, i am not optimistic for a couple of basic reasons. i think that the wto does periodic country reviews and it may be time to review china, it may be a good—faith attempt by the wto to intercede and forestall worsening trade relations. at this point i just think the us has already
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decided that the wto is not going to be an effective forum for resolving its trade issues with china. so they have elected to go to, sort of, an ex— wto methodology for resolving theseissues ex— wto methodology for resolving these issues and i think, no matter what happens at the wto, itjust will not be determinative in resolving the burgeoning us chinese trade conflict. over the weekend football fa ns trade conflict. over the weekend football fans in england and croatia flooded the streets as the two sides progressed to the semifinals. the tournament has now been running for three weeks with many games, scheduled during working hours. tom davies has been finding out how employers have tried to accommodate all this football. from the pubs of paris... . concourses of columbia. the ecstasy. and the agony. were you are, it has
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been hard to avoid the world cup and with so much going on in russia, perhaps it cannot be blamed for getting... i think that means england are through. but some businesses, like the print and design company have been trying to combine work and play by setting up dedicated viewing areas. we have football on the rooftop terrace here and in the offices downstairs. giving people freedom and choice to spend time how they want to be with themselves or with a colleague to watch the match. we trust them, we rip assume position. they have the right to treat their day as they want. they have a job to do at the end of it and we believe they will do that. so while some officers have been able to make the most of the football not every workplace has been able to tackle the problem head on. researchers found that financial
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traders become distracted by the world cup. at the 2010 tournament, pleaded a similar zone to russia, the communist —— economists found that the number of trades at a stock exchange fell by an average of 55% when the home nation was playing. because we have detailed data we we re because we have detailed data we were able to make a link between what happened on the football pitch ona minute what happened on the football pitch on a minute by minute basis and we we re on a minute by minute basis and we were able to link this to what happened on stock exchanges as elimination became increasingly likely for france and italy in this case, there were negative reactions on the stock exchange. in those countries. so as we reach the latter stages of the world cup, for employees in many —— employers in many countries claim meetings are taking the place of published. the 14th left in the tournament, they are hoping they can leave it another week before it is business as usual. —— for the teams left in the tournament. france will play against belgium and
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croatia will face england in the semifinals. that kicks off on sunday and you can find out more on the latest world cup updates from our sports colleagues coming up right after the asia business report. before we go, here is a quick report —— look at how markets have been faring. the japanese market is up slightly given that in the us we saw sharesjump up slightly given that in the us we saw shares jump up despite worries about trade wars. in australia they are slightly higher as well. a reminder of the headlines this our. divers in thailand prepared to continually challenging cave rescue after an overnight break. four boys are out, nine more people are still stuck inside. the british minister
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for exiting the eu, david davis, has quit hisjob only for exiting the eu, david davis, has quit his job only a few days after the government agreed their policy on brexit. more on that to come. first in other news... nearly twenty million viewers watched england's world cup quarter—final victory over sweden yesterday. nearly 4 million also live streamed the match from airports, on planes and even at weddings on their mobile phones. well the england team are now in recovery mode ahead of wednesday's semi—final with croatia. dan roan reports from russia how to celebrate pulling off one of the biggest wins in your country's history? for england this morning, first a gentle yoga session back at their training base, followed by a spot of light shopping in the local village, the players happy to have extended their stay here, after yesterday's success in samara. england's 2—0 win over sweden, their first world cup quarterfinal victory in 28 years, was their most impressive to date here in russia. yet again, they proved a threat from set pieces, while goalkeeperjordan pickford's
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man—of—the—match performance ensured a first clean sheet of the campaign. you get better, and you get a feeling for the tournament, and you look at the squad, and i think that's exactly what is happening. for them to put in their best performance in the quarterfinal speaks volumes about the confidence and the belief that that squad has, and that will, hopefully, carry us forward again into the final. but first, england must get past croatia. they needed a second successive penalty shoot out to reach the last four, this time against hosts, russia, on a night of tension in sochl in real madrid midfielder luka modric, they have one of the best players in the tournament. tonight, croatia's manager said his team should not be underestimated. translation: as much as we respect england, we also respect ourselves. we believe in our strengths, so we don't fear england or anybody else. having exceeded expectations, meanwhile, russia's players today received a rapturous reception in moscow,
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where the hosts thanked thousands of fans for their support. england's last attempt to reach football's ultimate stage was the semifinal in turin in 1990. it ended in tears, and defeat to west germany. now they have the chance to go one better, and reach a first final in more than half a century. wednesday evening in moscow will be one of the biggest occasions in england footballing history, but there's a growing sense that, whatever happens now, these young players can be a force to be reckoned with for years to come. dan roan, bbc news, repino. more coming up on david davis's resignation in 15 minutes time. you are live at the bbc sports centre. coming up on sport today: in
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a spin. hamilton crashes and sebastian vettel takes the flag at the british grand prix. sagan is wearing the yellow jersey after the second stage of the tour de france. and the irish open. —— open. he was hoping for a record sixth title at silverstone, but instead lewis hamilton had to make do with second place at the british grand prix. after starting on pole, the current world champion was soon battling from the back. it was sebastian vettel who won, taking his fourth race win of the season, to pull further ahead in the drivers' championship. andy swiss was watching. at a sweltering silverstone, lewis hamilton and 140,000 fans hoping for history.


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