Apr132017

Interview with James Bennett, ABC AM

Australia
image_pdfimage_print

SABRA LANE: 

The Prime Minister Malcolm Turnbull flies back into Sydney this morning after three days in India. Mr Turnbull had been talking up a joint Prime Ministerial commitment between himself and India’s PM Narendra Modi to revive free trade talks as a key outcome from that visit. But Mr Turnbull now concedes that despite that a deal may never eventuate. The Prime Minister spoke with the ABC’s South Asia correspondent James Bennett who started by asking why negotiations had broken down in the first place.

PRIME MINISTER:

Well look I don’t think there’s any point in getting into a blame game I mean the fact is that there hasn’t been enough progress and so what we’ve agreed to do is to ensure that our negotiators get back to the table, that they identify the respective claims so we can see where they’re close, where they’re far apart or issues that they’re not addressing and they will then report back to both Prime Ministers and that gives a focus on it and it may be that the conclusion will be that the parties are too far apart to enable a deal to be reached at this time.

JAMES BENNETT: 

So that is a realistic prospect? You’re open to the fact that a deal worth doing as you’ve said-

PRIME MINISTER:

Well it has to be a deal worth doing and, so it has got to be a deal worth doing but the important thing, that is that Prime Minister Modi and I have given our prime ministerial direction and leadership and impetus to ensure that the two sides will focus on the nitty-gritty of what the CECA, the free trade agreement would involve and then we can identify where if, where, you know, the parties are apart and see how we can bridge those gaps. 

JAMES BENNETT:

Why then did Tony Abbott in 2014 declare that there was a deal that could be signed by the end of 2015?

PRIME MINISTER:

Well you would have to ask him that. The fact is that the Indian offers have not been adequate to date.

You know, look I don’t want to get into the blame game, there’s no point in that. I know that might be some interest for you perhaps and others.

Mr Modi and I want the matter to be resolved and look we have a great economic relationship and it’s getting stronger all the time and it will grow whether or not there is a free trade agreement but it would obviously be enhanced if there was.

JAMES BENNETT:

Can India really replicate the Chinese economic rise?

PRIME MINISTER:

India is obviously not a country where the government is able to direct investment and production in the way China is. On the other hand, China opened up its market to direct investment, it opened up to trade many years ago. Now India, that is relatively recently but nonetheless from a trade point of view India has had an historically a much more protectionist tradition. Now Mr Modi is changing that but obviously these changes tend to have a period of evolution, they don’t turn on a dime.

[ENDS]

Apr132017

BCC Quarterly Economic Survey: Solid economic growth likely in Q1 but inflation remains a key risk

British Chambers of Commerce
image_pdfimage_print

13th April 2017

The British Chambers of Commerce (BCC) today publishes its Quarterly Economic Survey – the UK’s largest and most authoritative private sector business survey. Based on the responses of over 7,300 businesses in Q1 2017, the results show the manufacturing and services sector are reporting solid growth, with both experiencing increases in domestic and export sales since the previous quarter.

The survey shows the manufacturing sector performing strongly in the first quarter of the year, particularly in the exports market, with the number of firms reporting improved sales and orders higher than in previous quarters. However, the rising cost of overheads and raw materials are presenting as a risk to growth in the medium term.

Although the performance of the services sector has not returned to historic trend levels, it is improving from its decline in the two quarters immediately following the EU referendum.

The results of the survey found that businesses are continuing to feel inflationary pressures. The percentage of manufacturers reporting raw materials as the key driver of increased prices is at the highest since Q4 2011, and in both sectors a significant proportion of firms anticipate having to raise their own prices over the next three months.

The findings indicate that while confidence in turnover and profitability is improving, investment intentions remain low. More businesses have increased their employment expectations, although both sectors are being hampered by recruitment difficulties.

Key findings in the Q1 2017 survey:

  • Overall, the figures for both sectors indicate continued expansion. While the services sector has not yet returned to historic trend levels, it is moving towards it
  • The percentage balance of manufacturing firms expecting the price of their goods to increase over the next three months remains at historic highs, despite falling slightly from last quarter from +52% to +47%. In the services sector, the balance of firms expecting prices to rise increased from +30% to +32%
  • 76% of manufacturers report an increase in the price of raw materials (up from 65%), while this held steady for services at 17%. 38% of manufacturers report an increase in the cost of other overheads (up from 23%), while 28% of services did (up from 24%)
  • In the manufacturing sector, the balance for firms reporting increased domestic sales rose from +15% to +20%, and orders rose from +7% to +16%. The balance of firms reporting improved export sales rose from +16% to +26%, and the balance of export orders also increased from +13% to +22%
  • In the services sector, the balance of firms reporting improved domestic sales rose from +15% to +22%, and orders from +13% to +19%. Exports remained broadly steady, with the balance for sales rising from +8% to +10%, and export orders falling slightly from +6% to +5%
  • The percentage of businesses in both sectors trying to recruit grew in the last quarter, standing at 86% in manufacturing (up from 77% in the last quarter) and 59% in services (up from 53%). However, both sectors continue to experience high levels of recruitment difficulties, with the percentage standing at 74% in manufacturing (previously 76%) and growing to 58% in services (previously 51%)
  • Confidence remained fairly steady among both sectors in Q1. The balance of manufacturers confident that turnover would improve over the next 12 months rose from +43% to +44%, and the balance for services firms rose from +35% to +39%. The balance of manufacturing firms confident that profitability would increase rose from +22% to +32%, and from +21% to +28% in services

Commenting on the results, Dr Adam Marshall, Director General of the British Chambers of Commerce, said:

“In the here and now, many businesses are resilient and experiencing solid growth. Many firms tell us their short-term expectations are strong, but that the medium-term picture is far from clear. 

“The rise in inflation seen since last year’s EU referendum is the biggest immediate pressure facing most firms. While manufacturers have enjoyed a good quarter, they are facing higher costs at the factory gates, which increasingly translates into companies having to raise their own prices. With inflation already above the Bank of England’s target, this squeeze on firms looks set to continue in the medium term.  

“The myriad of upfront costs imposed by government – including business rates, Apprenticeship Levy, National Living Wage and insurance premium tax – are all adding to the overhead costs of firms and the pressure on prices.  

“Businesses also continue to report recruitment difficulties, and while we’d like to see greater investment in training across the board, without access to a sufficient talent pool, companies are restricted in their development ambitions. 

“Our survey, with deep participation all across the UK, demonstrates the fact that there are longstanding structural issues here at home that we need to tackle to sustain success in the future. The competitiveness of firms depends on a bold domestic economic policy – not just a good Brexit deal.”

Suren Thiru, Head of Economics at the BCC, said:

“Our latest survey suggests that the UK economy put in a solid performance in the first quarter of the year, with businesses remaining resilient.

“The services sector continues to rebound from its initial shock in the months immediately after the EU referendum, and while growth has not yet returned to historic levels, it remains a key driver of the UK economy.

“Manufacturers’ export sales are at their highest levels in recent years, with the decline in Sterling and an improving outlook for the global economy helping a number of firms who export. However, if the sector is to sustain this growth in the long-term, there must be action on the difficulties facing it, including chronic underinvestment in the UK’s infrastructure and shortages in the labour market.

“Inflation is a key risk to the UK’s growth prospects, with businesses having to manage rising costs and the pressure to raise their prices. If higher inflation squeezes consumer spending as we expect, the current strength in business activity may not be enough to prevent a period of more muted economic growth.”

Ends

 

Notes to editors:

The BCC Q1 2017 QES is made up of responses from 7,300 businesses across the UK, and is the largest private business survey in the country. Firms were questioned between 20 February and 13 March 2017 on a wide range of business issues, including: domestic sales and orders; export sales and orders; employment prospects; investment prospects; recruitment difficulties; cashflow; confidence; and price pressures.

Spokespeople are available for interview and a full QES is available from the press office.        

How are balances calculated?

QES results are generally presented as balance figures – the percentage of firms that reported an increase minus the percentage that reported a decrease. If the figure is a plus it indicates expansion of activity and if the figure is a minus it indicates contraction of activity.  A figure above 0 indicates growth, while a figure below 0 indicates contraction. 

For example, if 50% of firms told us their sales grew and 18% said they decreased the balance for the quarter is +32% (an expansion).

If 32% told us their sales grew and 33% said they fell the balance is -1% (a contraction).

The British Chambers of Commerce (BCC) sits at the heart of a powerful network of 52 Accredited Chambers of Commerce across the UK, representing thousands of businesses of all sizes and within all sectors. Our Global Business Network connects exporters with nearly 40 markets around the world. For more information, visit: www.britishchambers.org.uk

Media contacts:

Allan Williams – Senior Press Manager

020 7654 5812 / 07920583381

Orla Hennessy – Press and Communications Officer

020 7654 5813 / 07825746812

Apr132017

Contrite Metro diners write apology letter

East Asia
image_pdfimage_print

Photo from Metro police’s Weibo account shows four foreigners who dined on a Metro train yesterday attend an “education” meeting with police and the Metro operator. [Shanghai Daily]

Four foreigners who set up a table and dined on a Metro Line 11 train last Friday in Shanghai wrote an apology letter yesterday.

The incident sparked an online uproar, with the foreigners accused of displaying bad manners.

The Metro operator and police officers have summoned and talked to the foreigners, whose nationalities and names were not released, about their behavior and they apologized in the office of Shanghai Shentong Metro Group.

Metro police said a total of six foreigners were involved, all of them working for the same company. As two of them were on a business trip, the remaining four attended the meeting, which was held yesterday.

Eating and drinking on the Metro is not illegal but is discouraged in Shanghai. However, setting up a table in the middle of a train carriage could be dangerous as it might block movement of commuters or injure others, which could mean a 50 yuan (US$7.25) fine, according to the Metro operator.

Police said they did not punish the foreigners because after checking surveillance footage, “the table was small, not as big as it looked in the photo (initially published on the Internet), and there were not many people in the carriage.”

Whether to ban eating or drinking on the Metro has long been a controversial subject in many Chinese cities, including Shanghai and Beijing.

In Hong Kong, it is illegal. People there can be fined HK$2,000 (US$257) if found eating or drinking on Metro trains or platforms.

Eating and drinking are also banned on Singapore’s subway. But there is no such rule in New York.

Apr132017

Guidelines to help fix national healthcare

East Asia
image_pdfimage_print

China will press to strengthen medical partnerships and arrange closer ties between top-tier hospitals and grassroots medical services to provide better health management and care for urban and rural residents.

A set of measures was approved during the State Council’s executive meeting on Wednesday, presided over by Premier Li Keqiang.

“The goal for the medical partnerships is to make quality medical care more accessible to the wider public, especially in less-developed areas,” Li said. “We’ve managed to set up nationwide medical insurance coverage and increased medical competence in grassroots medical institutions. The coverage is among the highest in the world. What we mostly need now are medical professionals.”

People are demanding more and better healthcare, and the allocation of medical resources is a tough balancing act.

The idea of building partnerships across medical institutions providing different levels of care would help bridge the gap of resources. According to the National Health and Family Planning Commission, by 2016 medical partnerships had been set up in 205 cities across China.

“Currently, high quality medical resources are mostly in big cities. These should further trickle down to lower tiers so that wider demand will be met,” Li said. “We must encourage joint partnerships of city level hospitals and grassroots institutions, while imposing expense reimbursements.”

Wednesday’s meeting yielded new measures.

Administrative fragmentation between regions, fiscal expenses, insurance payouts and human resources will be resolved. More diversified forms of medical partnerships will be encouraged, with top-tier hospitals taking on leading roles. The guidelines encourage an internet-based medical information platform to help better diagnose and prescribe treatments for rural patients.

More will be done to allocate high quality medical resources to wider regions. To do this, teams of medical professionals will be sent to less developed areas with enhanced sharing of health and medical services.

China will accelerate building a cascaded medical system and will introduce demand-oriented and contract-based family doctors. The government plans to cover all impoverished regions with such services this year while inviting private healthcare institutions to participate.

The guidelines stress better coordination systems and policies in new medical partnerships, allowing a more balanced allocation of resources across different levels of medical centers. The government will encourage diverse forms of payments and performance at grassroots levels will be included in evaluations of medical practitioners, who often can work at any organization within the partnership.

“The government needs to have well-designed, concrete guidelines to build medical consortia, taking local conditions in different regions into consideration,” Li stressed. “Local governments are encouraged to have their own ideas in exploring systematic innovation.”

Wang Chen, president of the China-Japan Friendship Hospital, said strengthening medical partnerships is the best approach available to improve the nation’s health system.

He said medical resources remain limited, fragmented and unevenly distributed. Also medical doctors’ abilities vary.

“As it’s hard and time-consuming to train quality physicians, medical partnerships is the most feasible way to systemize and optimize resources available now,” he said.

Apr132017

Statement by Federica Mogherini and Johannes Hahn on the latest developments in Albania

EU
image_pdfimage_print

We regret the parliamentary boycott in Albania and that the opposition has not yet registered to participate in the elections. The political debate should not take place outside, but inside the parliament according to democratic practise. Citizens deserve responsible leadership.

We once again urge all political leaders to act responsibly, with respect for institutions, and pave the way for democratic elections, in line with international standards.

More specifically, the much needed justice reform in Albania has once again come under attack. We call on all parties to complete the formation of the vetting institutions. Attacking the judicial reform rather than ensuring implementation of vetting, with close monitoring of the International Monitoring Operation, harms Albania’s present and future.

We expect that Members of the Parliament will show responsibility, capacity to act within the democratic legitimate institutional framework, and that they stand by the people of Albania, who continue to demand that the vetting is launched and the judiciary eventually reformed, also as a crucial step for the country to join the European Union.