tv Asia Business Report BBC News October 10, 2018 1:30am-1:46am BST
of his ambassador to the united nations, nikki haley. she resigned from her un post earlier on tuesday, fuelling speculation that she has presidential ambitions. but in her resignation letter to president trump, she said she'd support his re—election bid. residents on the coast of florida have been warned that hurricane michael could bring a storm surge of up to 3.5 metres when it makes landfall on wednesday. thousands have been told to leave what oficials are calling the monster storm. and this video is trending on bbc.com: it's of a baby whale being rescued off the coast of queensland. rescuers spent almost two hours trying to untangle the calf from shark nets, as two adult whales, one believed to be the calf‘s mother, stayed nearby. that is it from me. stay with bbc world news. and the top story in the uk: the brexit secretary, dominic raab, says the government is closing in on workable solutions in the search for an agreement for britain to withdraw from the eu, and a deal could be struck soon. labour says the plans would plunge
the country into chaos. now on bbc news live to singapore for asia business report. a second warning from the international monetary fund in 2a hours, this time of the health of the global financial system. i am karishma vaswani with the latest from the imf and the world bank annual summit here in bali. survivors of the ssulawesi earthquake and tsunami return to work as a way to put the horror of the disaster behind them. hello, and welcome to asia business report. two warnings in 2a hours from the
international monetary fund. this morning the international lender says risk would rise sharply as trade tensions escalate or if pressures in emerging markets was to lessen in this latest report. to break it down, karishma the swanee joins us now. what is the detail of this report? good morning. the report has just been released in the last 30 minutes and as you were saying really highlighting the fact that risks have increased although there has been strong expansion. the imf says there is no reason to be complacent. in fact there is a danger of some countries being too confident and not fixing some issues which they should have when the times were good. joining me to talk about this in greater detail is the bbc‘s economics editor, i met. you have come from the briefing. what was the main priority the imf was trying to raise in this report? --
kamal ahmed. there has been a change in the tectonic plates for the globe. in america, growth is free strong. the federal reserve is raising rates. that means that money is moving towards america as investors look for concerns. that leaves emerging market economies undera lot of leaves emerging market economies under a lot of pressure. if they have big debts in dollars, that puts them under pressure. and there is a worry from the imf that we are getting to a position where the capital getting to a position where the ca pital flows getting to a position where the capital flows start damaging emerging market economies as investors put all their money towards america. emerging market economies have already seen a large amount of money pulled out of their markets. the imf mentioned this. what is your sense, is there a risk of the spillover, the contagion effect? absolutely, the war is there
it are few things you can do to be a fire break on the capital flows. if the federal reserve, the american central bank, raises interest rates, that makes dollar assets more attractive and it means money moves towards them and what can those governments in emerging markets do? the imf says they need to make sure they control their debts, make sure they control their debts, make sure they have good public finances, because they will become exposed as quantitative easing, the money printing used after the financial crisis, is withdrawn. we are in such a different global economic environment now, with rising interest rates in the us and the end of cheap money that has benefited so many economies out of the region, but there was another risk that the imf really pinpointed today, the trade tensions between the us and china, how much of a factor is that in their less optimistic view of the world in the economy? that is a key worry and as you say this is the
second warning from the imf in two days. yesterday they gave a strong warning about the dangers of trade tensions particularly between china and america. and that is certainly pa rt of and america. and that is certainly part of this whole debate about what they call the multilateralism that is breaking down. will there be a global solution? after the financial crisis all of the countries came together to fix the global economy. the worry is, would it happen again? so it is the global financial system safer than it was two years ago?m is, not to be pessimistic, they say global banks are more safe than they we re global banks are more safe than they were and that is a very strong thing, and the notion of contagion between banks is much less obvious. thank you very much, kamal ahmed, bbc economics editor. we will be watching these meetings taking place throughout the week for you on bbc world news, coming live from the imf and the world bank annual summit in bali. thank you for that. in other
news there is increasing expectation that china might have to devalue its currency as its trade war with the us which you heard them talking about drags on. there is a tricky parfor about drags on. there is a tricky par for the central bank officials who have to find a balance between supporting economic growth and not triggering a massive outflow of money if the un depreciates too quickly. china is facing pressure after the central bank reduced the requirement rate, or rrr, for the fourth time this year, which was meant to lower financing costs and spur on growth but the move is expected to inject over $100 billion into the chinese economy, and at a time that there are worries that trade war would cause a slowdown. earlier i spoke with an economist and asked if china would devalue the currency and run the risk of being labelled a currency manipulator by the us. china is having a trade war with the us anyway so as a currency manipulator it doesn't present china with a downside risk. for the policy
option china would choose to have a passive devaluation in the next six to 12 months in order to actually save themselves from a severe slowdown in the next 12 months. right, so you're saying they are trying to prevent the slowdown, so what does the lowering of the reserve ratio for the banks mean, obviously they are trained to spur on the growth, is it acknowledgement that they are losing the trade war? not saying that they are losing the trade forfilm at not saying that they are losing the trade for film at war but they need a response to the offset of the slowdown, this is part of bigger moves to do credit easing, fiscal stimulus, to support domestic demand and make sure that growth is not collapsing. many of us are familiar with tesla, the electric car maker. well, its second—biggest shareholder baillie gifford has taken an interest in neo, a chinese electric vehicle maker which recently listed on the new york stock exchange and
a p pa re ntly on the new york stock exchange and apparently he owns 11% in nio, along with his 9% stake in tesla. nio shares closed up 22% on the news. in indonesia the government has called on people who survived the sulawesi earthquake to return to work. more than 2000 deaths have been confirmed on the island and 5000 people are unaccounted for. many parts of the city of palu is still reduced to rubble. more than a week after the disaster there are signs of commerce once again. hywell griffith has more. slowly, the rhythm of life is returning to palu. as its people try to find a way forward. the earthquake and tsunami tour through this city, destroying buildings, indian lives. —— tore. an in its wa ke indian lives. —— tore. an in its wake survivors need to make a living —— ending lives. this man says his
garage has been busy. translation: many mechanics have come back, only two were operating in the city. we decided the only way to move on was to get back to work, and people will feel safe. the first to return or the food vendors, but so many homes destroyed and aid slow to arrive, people need feeding. this woman had to salvage pots and pans from the damaged home before she could cook again. translation: i have kept the prices reasonable so that everyone can prices reasonable so that everyone ca n afford prices reasonable so that everyone can afford to buy. many people say, "thank god that i have been able to open a store because we need food". the food in the camps is mostly insta nt the food in the camps is mostly instant noodles so they say it is great that you sell this, it has pro tea m great that you sell this, it has pro team and vegetables. officers are reopening and so the city's workers
have to prepare —— protien. this barbershop is getting its first customers. government say that offices and schools should start getting back to normal. just like before. so the students and the officials come here to make themselves presentable to get ready to get back to normal. it will take two years to rebuild the city. the economy can't wait for that to happen. so people here in palu are going back to work as a way of surviving. hywell griffith, bbc news, sulawesi. as survivors in palu pick up the pieces the government faces the enormous task of rebuilding the area. all this while also really continuing with the construction in lombok after the earthquake in august damaged the island. construction costs are bound to strain the country's budget, so how will it play out for the indonesian economy? dave chang from jakarta offered this analysis. this disaster
couldn't have happened at a worse time. the currency is fairly weak, so is the economy, butjust like most other emerging economies and also the current government, it is facing an election early next year and the currency, being weak against the us dollar, the cost of reconstruction is expected to be fairly significant and would have quite an impact on the budget. that is the end of this is edition of asia business report. i am sharanjit leyl asia business report. i am sharanjit leyl. thanks for watching. this is bbc news. the top stories this hour: donald trump has accepted the resignation of his ambassador to the united nations, nikki haley. she's dismissed speculation she's planning to run for president in 2020. hurricane michael is bearing down on america's gulf coast, bringing 100 mile an hour winds and life—threatening storm surges.
alabama, florida and georgia have declared states of emergency. after one of the hottest summers on record the mining industry is reaping the rewards of what promises to be the best ever great harvest. there has been a steady increase in wine production in the uk over the past few years. 0ur correspondentjon kay reports from devon. 0n the banks of the river dart, it is a vintage year. today alone they picked six tons of grapes on the sharpham estate. that's four times more than normal. anna's secateurs hardly stop. filling as many boxes as she can in these last few days of the season. between 20 and 28 crates. a day? a day. i'm not a very fast picker, either. some of the other guys, they do 30, a0 crates.
so i've got a long way to go. we're going to be picking these in about a week's time. duncan schwab is the head winemaker on this estate. try one of these. really sweet. you have incredible sweetness in there. incredible punchiness of flavour. he says it's also a record year for red grapes, which they normally struggle to grow here in devon. we've had the perfect year. it's been absolutely fantastic. nice early start. we had some snow, actually, in april. so a lot of bugs and diseases got killed. the vines went very dormant. then a wet spring which got them all growing really well and from then onwards, the sun has been out, it has beenjust absolutely perfect. the grapes picked here today should produce 6000 bottles of wine. and it's a similar story this year at other uk vineyards. even before this summer's crop, britain's wine industry was flourishing. just under six million bottles were produced here in 2017.
sales have increased by more than 30% in the last couple of years. and that is set to continue, with 1.7 million new vines due to be planted this year. but it's notjust about quantity. uk producers will also have to make winds of quality, at a good price, if they are going to compete around the world. cheers! and what if next year's weather isn't quite so perfect? jon kay, bbc news, devon. 0h, let's hope it is perfect. lots more as always on the website. mike is here at 2am with all of the day's news, but now it is time for sport today with tulsen tollett. hello. i'm tulsen tolett. this is sport today, live from the bbc sport centre. coming up on this programme: three—time winner novak djokovic
is into the last 16 of the shanghai masters. australia collapse in the first test against pakistan with a 33—year—old debutant taking six wickets. and another major honour for brooks koepka, who's named the pga tour player of the year. hello there, and welcome to the programme, where we start with tennis news and we saw some of the big guns enter the fray at the shanghai masters on tuesday. the top seeds get byes into the second round, but perhaps dominic thiem and marin cilic needed a bit more time on court because they're out. but no worries for novak djokovic as the world number three is into the last 16 as austin halewood reports. since the middle of 2018, novak djokovic has been a player reborn, with