China Plays Catch Up; Asia Eyes US Jobs Data

This is a transcript of top stories presented by China's CCTV Business Channel as produced by CNBC Asia Pacific.

Hello to all our viewers across China.

I'm Saijal Patel from CNBC and you're watching Asia Market Daily.

It was a mixed day across Asia, as investors held back ahead of the release of U.S. jobs numbers.

The KOSPI finished off two-tenths of a percent, the Nikkei lost one percent while the Taiex slipped half a percent.

The Hong Kong and Shanghai markets though were stronger in late trade.

Shares in Chinese wind turbine maker Xinjiang Goldwind surged as much as 11 percent on its debut in Hong Kong.

Investors are hoping China's efforts to increase green energy usage will boost the company's earnings.

Over in Japan, the government is giving a boost to the economy, announcing a $61.3 billion stimulus package - which it's hoping will add 0.6 percentage points to GDP.

The extra budget is expected to create up to 500,000 new jobs.

The news came as Finance Minister Yoshihiko Noda reiterated Japan's position to take firm measures to stop the yen's ascent.

And the currency clashes we've been hearing so much about will no doubt dominate the agenda, at the IMF World bank meetings in Washington this weekend.

Speaking overnight, the head of the World Bank said forcing China to revalue the yuan won't solve the global imbalances.

(SOT) Robert Zoellick, World Bank President

"In the case of China, while I believe the currency should appreciate, that's not a silver bullet and this will have to go to some of the issues switching the savings consumption balance."

And Zoellick also warned the recent currency tensions could lead to trouble, if not properly managed.

Still on the yuan, and moves to internationalize the currency continues.

The Wall Street Journal reports ICAP and Thomson Reuters are talking to banks in the U.S. and Europe about trading the Chinese currency on electronic platforms.

Electronic trading of the yuan already happens in Hong Kong.

Analysts say a full global rollout of yuan trading would significantly alter global currency trading.

On to a topic China will be paying very close attention to.

BHP has responded to a Conference Board of Canada report, on its planned deal to buy Potash, saying it expects to pay C$90 billion in taxes over the life of its Jansen mine.

The project is being developed in the Saskatchewan province.

BHP's comments follow concerns raised in the report, that the province would lose more than C$2 billion in tax revenue over 10 years, if the takeover succeeds.

BHP also said the Jansen project would create nearly 3,000 full time jobs.

And it's on the right track -- Mike Harrowell of BBY says "BHP now has to win a battle of hearts and minds", as Potash continues to buy time.

(SOT) Mike Harrowell, Senior Resource Analyst, BBY

"Normally in the process in these takeovers is to try and buy as much time as you can and of course the court action is an excellent tactic to do that. In addition, if they're successful in what they're trying to do they'd actually shut down the bid completely which would also buy them time and allow the Potash market to recover."

Across to London, and Nomura has finished its big move back to the City.

CNBC's Maithreyi Seetharaman takes a look at its new European headquarters and finds out what this means for the city's commercial property market.


The towers at Canary Wharf house some of banking's big names... HSBC... Barclays.. but Nomura, no longer.

The Japanese investment bank has moved its British home, back to where it started in 1986 in the City of London. The return is the final part in the process of integrating its staff with the Lehman's business it bought in 2008. Nomura promised to keep the 2,500 employees of Lehman's European investment banking and equities arm in London. And now they have a shiny new home.

(SOT) Paul Spanswick, Chief Administrative Officer EMEA, Nomura

"By moving into a new building we had a complete technology refresh. The building also has very high green credentials. Thirdly, by designing the building for our own needs we are confident we can improve the working environment for our staff. Lastly, we will be closer to our clients."

They will also be closer to the "old" home of the banking business in London. The Square Mile, as its known, lost its luster in the 80's as Canary Wharf began to shine. So is Nomura's move and the recent decision by UBS to stay in the City a signal of a lasting resurgence?

(SOT) Sabina Kalyan, European Head of Research, CBRE Investors

"With financial services firms when they find space relatively cheap they do prefer to be in the city. the facilities are much better more central so you see the repeatedly at the bottom of a cycle people start looking back to the city from canary wharf ."

For Nomura, nine months of planning, packing and resettling for its 4,500 staff may have been well worth while, but what does it actually say about the wider outlook for UK commercial property?

(SOT) Sabina Kalyan, European Head of Research, CBRE Investors

"We see a real split market because there has been very little development due to the credit crunch. if you want to have shiny new space, there is very little around. Top rents have come back very strongly indeed. But due to the very anemic pace of the economic recovery actually if you are trying to lease out the poorer quality space that could remain tough into 2013."

In 2013, Nomura will still be enjoying a rent free space.. it has reportedly secured six free years on its 20 year lease. But will the City of London still be a pre-eminent financial center? Nomura's answer, in black and white, is yes.


Well it's that time of the week again when we check in with our correspondent from India, about what investors should be looking out for.

CNBC's Reema Tendulkar joins me now, with the key economic data coming out.


Thanks for that. In terms of the economic data India is watching out first, let's start off with on the 12th of October, that's Tuesday, we're expecting the industrial production data, that's the IIP data, this will be for the month of August.

On 14th of October, we're expecting the inflation numbers, this will be the monthly inflation numbers, which will be outlined, and will be for the month of September.

But more importantly, earnings season is kicking off next week. And the big boy from the IT space, Infosys, will be declaring its numbers for the quarter ending September. That's Q2 will be outlined by Infosys on the 15th. So that generally is the behemoth which sets the tone for the entire season.

So those are the three important data points that India are watching out for. With that, here's wishing all our viewers a very happy Friday.


Reema Tendulkar there from Mumbai.

And that wraps up the top business news across Asia.

I'm Saijal Patel from CNBC, have a great weekend.

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