Transcripts For BBCNEWS World Business Report 20170412

South africas battered economy tries to recover from a double downgrade, but it wont be easy especially trying to borrow money from its internationalfriends. And all on board. Yep, how a group of enterprising berliners, fed up with paying ever more for their daily Train Tickets clubbed together to crowd fund their own train line. Were going to take a ride with them. Welcome to World Business report. Im aaron heslehurst. Welcome to the programme. If you give me your eight minutes, i will give me your eight minutes, i will give you an exciting snapshot of the world of business and money. We will start south, south africa in that. As South Africas president jacob zuma celebrates his 75th birthday, festivities may be rather more low key than usual. In less than a week, the countrys members of parliament are scheduled to hold a vote of no confidence against the president. Why . Well it comes after he ousted some of his key political opponents in a recent cabinet reshuffle. Today, members of the public are expected to take to the streets in protest of the move, but mr zumas decision also has implications for the economy. South africa has been downgraded to junk status by two of the leading debt ratings agencies fitch and s p. They argue that the reshuffle will hamper the countrys efforts to manage its finances. The governments debt pile continues to grow and the loss of its Investment Grade status could have a Significant Impact on South Africas ability to borrow money on international markets. It means that major institutions such as Pension Funds and hedge funds may be prevented from buying the countrys debt. On South Africas ability to borrow money on international markets. It means that major institutions such as Pension Funds and hedge funds may be prevented from buying the countrys debt. Lesiba mothata, Chief Economist at investment solutions, south africa, who joins me from johannesburg. Great have you on the programme. Briefly, for people Around The World watching us who dont normally follow this sort of money news, camera just highlight how important it is about this junk status. This makes it incredibly difficult and very expensive for your country, south africa, to service its economy, basically, right . In need, because when you get downgraded to junk in this way, what it normally ensues is higher interest on debt and actually, we begin to even see a wea ker and actually, we begin to even see a weaker economic outcome in the environment in south africa where we have found that private businesses have found that private businesses have not been invested back into the economy. In fact, a deep recession, in terms of private investments and all of these things are going to negatively impact of this confidence, negatively impact Consumer Confidence and the country, we we re Consumer Confidence and the country, we were expecting about 1. 3 growth, it is looking a bit more dire than what we would have seen before what has ensued in the political realm. Talking of the political realm, what is president jacob talking of the political realm, what is president jacob zuma talking of the political realm, what is president jacob zuma doing . What is president jacob zuma doing . What is behind the reshuffle and is he to blame . You know, a permitted leak on for the whole recall of the Finance Minister from for the whole recall of the Finance Ministerfrom the for the whole recall of the Finance Minister from the international roadshow admittedly. We saw this before, south africa was on an negatively watched. They were looking at other offenders including wea k growth looking at other offenders including weak growth as part of the reason of those downgrades but that this is actually created a situation where they pulled the rug under the feet of south africa in terms of ratings asa of south africa in terms of ratings as a result of these heightened political risks. You will meet the new Finance Minister later on today. What are you hoping . Basically, the question is, and you are a cheap economist so you would know, how you turn that africa around . South africa. Well, its a tough environment and it requires what happened in 1998 west south korea made a declaration that there would be no bailout and they created a situation that guarantees that State Enterprises were reduced and they made it clear that the Growth Economy would open up top foreign investments. These are the things that are required. Admittedly, the ideological is similar to what we would see out of south korea. Good luck with the meeting at later on today. Hey, some good news for all those Chinese Companies that make stuff theres a lot of them. For the first time in 7mths the price they pay for the Raw Materials they need to make all that stuff has come down. Sharanjit leyl is in our Asia Business hub in singapore. Is it good news for the consumer, does it mean . Yes and no, arryn. What you talk of if the Producer Price index and as you say, calling for the first time for seven months in march. It action the rose that month from the year earlier but its still incredibly the easing of the previous month will be sorry gain of 7. 8 and that was a nine year high. That is due to the massive rally we have seen in chinas commodity markets. There are measures to cool the countrys overheated Housing Market and that will slow a lot of demand for steel and the Building Materials that you need to build big skyscrapers so, talking about the Consumer Price inflation earlier, as isaid, Consumer Price inflation earlier, as i said, that was only up a little and well within the banks comfort zone. We have seen and well within the banks comfort zone. We have seen a and well within the banks comfort zone. We have seen a lot of Policy Makers continue to try to push the pace of money policy tightening. Sharanjit leyl, pace of money policy tightening. Shara njit leyl, great pace of money policy tightening. Sharanjit leyl, great to talk to you. For decades, Deutsche Bahn has dominated germanys expansive railway network. But one plucky berlin start up is taking on the Corporate Giant with a single rival trainline, that runs once a day to stuttgart launched via a crowd Funding Campaign. Could others now follow suit joe miller reports. Afamiliar a familiar Sight Afamiliarsight in a familiar sight in every german city. One of the largers rail operators, Deutsche Bahn, enjoys a near monopoly. That is being challenged by the arrival of some enterprising berliners. Youre started in december and until now, 70,000 customers havejoined us on board. Whistles financing over a crowd Funding Campaign where we collect nearly 1 million crowd Funding Campaign where we collect nearly1 million euros. If you are looking to get from a to bas if you are looking to get from a to b as quickly as possible, this is not the journey for you. It takes more than six hours to get from berlin to stuttgart. But this is its 21st ce Ntu Ry Berlin to stuttgart. But this is its 21st century equivalent to the Railway Journey complete with 21st century equivalent to the railwayjourney complete with a beacon and organic bar. Not everyone is on board for the experience alone. I played 22 euros to get here. It is a good price, i think. The difference between the state railway and this one is to around 15 minutes and not more. We want to run more than one chain. We are now starting to prepare for a second train and a second line but i dont know if they will be more competitors because it took a lot of time to prepare everything. Train. We will see. It may not be full stea m train. We will see. It may not be full steam ahead just yet but if this start up can keep a heavy pace, others may follow in its tracks. Follow me on twitter. I will be back with james to take a look at some of the papers from Around The World. More than 50,000 disabled people have had specially adapted vehicles taken away after the introduction of a new disability benefit. Campaigners are demanding changes to the programme so claimants will have a chance to appeal before their vehicles are removed. Ministers say there are more people on the scheme now than in 2010. Nikki fox reports. Since the introduction back in 2013, thats all payments have been controversial. They replaced at Disability Living Allowance and were designed to reduce growing welfare budget. The benefit helps cover the extra costs of having a disability, driving a car is one of them. The changes to the way people are assessed have meant many have lost their specially adapted cars. According to the charity that runs the scheme, 51,000 people have been told they are no longer eligible for a vehicle. That is nearly half of those who have been reassessed. Latest figures also showed that nearly two thirds of appeals are found in the claimant s favour. It has led mps and charities to call for changes. When people lose their specially adapted vehicle, this can have negative impact on the quality of and independence. We want to make sure that they change their policy in this area. We dont think vehicles should be taken away from people until they have had a chance to appeal against a particular decision. The Department For Work And Pensions says there are 70,000 more people on the Motor Ability Scheme than they were in 2010. Those who lose their cars are eligible for £2000 worth of support. Coming up at six oclock on brea kfast, coming up at six oclock on breakfast, dan walker and Louise Minchin will have all the news, business and sport and more on the Baby Business and sport and more on the ba by Story Business And Sport and more on the baby story of baby charlie guard after a High Court Ruling allowed doctors to withdraw life support for the infant against his parents wishes. That is coming up in 17 minutes time. This is bbc news. The top stories this hour. German police say a bus carrying the Football Team Borussia Dortmund to a Champions League game was deliberately targeted. It was hit by three explosions. Officials say a letter was found near the scene. The White House Press secretary, sam spicer has apologised for comments suggesting adolf hitler didnt use chemical weapons. Sean spicer. Mr spicer made the remarks during a Press Briefing about the recent Sarin Gas Attack in idlib. Russia is hardening its support for the assad regime, even with the us Secretary Of State in moscow for crisis talks. President putin has accused Syrian Rebels of setting up fake attacks to justify more american missile strikes. Now it is time for our newspaper review, and we start with the financial times, which puts the spotlight on Us Russia Relations over syria and the suspected chemical weapons attack. Vladimir putin now claims america is being tricked into attacks against the syrian regime. It comes as us Secretary Of State Rex Tillerson is in moscow, and g7 ministers reject new sanctions against russia. In addressing chemical weapons use, White House Press Secretary Sean Spicer has apologised after incorrectly stating hitler did not use chemical weapons during world war ii. Thats on the washington posts website. To the china daily, and theres been a fuller apology from the head of united airlines, after the forced removal of a passengerfrom one of its planes. The incident has seen the parent companys Trading Share Price drop. A Start Up Firm has raised tens of millions of dollars, and is hoping to offer hackers for hire. Synack says other companies will be able to rent out expert security researchers, who then hack into networks to highlight cyber vulnerabilities. Thats also in the ft. Catching enough zs at night, or severely sleep deprived . The New York Times looks at the study of sleep, and how academics are developing tools to help us rest better. They include weighted blankets and a headband that uses sound waves to induce sleep