tv Taiwan Outlook PBS October 16, 2013 11:00pm-12:01am PDT
>> it appears the global financial crisis has bee averted. the u.s. senate has voted yes, and we are waiting for the house. they are waiting to vote to raise the debt ceiling. i'm filipina in washington. >> i am michelle makori at the nasdaq. wall street welcomes news of a washington deal with u.s. stock markets rallying across the board.
>> it is 9:00 p.m. in washington, d.c., and we continue with our coverage of what has happened over the last couple of hours, including the global market reaction from the u.s. debt issues. from wall street to hong kong to around the world. we will also look at our special focus on the united nations world food day. we will be looking at global food waste and what countries are doing about it. hearst, the united states will not go into default with just a few hours left before the deadline approaches. the u.s. senate has voted to lift the u.s. debt ceiling until february 7 of next year and reopen the government after 16 days of a partial shutdown. for more on what is happening, we go straight to mason king live for us in the newsroom. >> and looks at the u.s. government will avoid default, specially after that overwhelming vote in the senate. we are now waiting for the u.s house ofeprentatives to vote. even though the republicans got
really nothing that they asked for, their leader john boehner says he willot block it and will pass this vote tonight, we hope, with the help from democrats. what will the vote to? it will raise the u.s. debt ceiling until february 7, 2014 it will also reopen the u.s. government at current funding levels until generate 15th. it will also give back pay to all those hundreds of thousands who were temporarily unemployed by the 60 -- 16-dapartial the relief was probable, but when president barack obama spoke in the past few minutes, he said, this shouldn't happen again. >> one of the things i said throughout this processs we've got to get out of the habit of governg by crisis. my hope and expectation is everybody has learned that there is no reason why we can't work on the issues at hand, why we can't disagree between the parties while still being
agreeable, and make sure that we are notnflicting harm on the american people when we do have hopefully, that is a lesson that will be internalized, not just by me, but also by democratsnd republicans, not only the leaders, but also the rank-and- file. >> nation, both sides have agreed for this agreement that they will discuss and try to negotiate a deal by the middle of december. from the folks you are talking to -- i think i know you're feeling on this -- what is the likelihood there will be an agreement at that point >> the cynical argument is that they kicked the can down the road until january and february of next year. remember, this was a devastating blow to the republican house. they didn't get anything they wanted, and in polls, their opinion polls are around 5%. they are also setting up a budget committee to negotiate a budget between the senate and
the house, he sensually the senate, democrats and republicans, the first time in lots of years. we also have some looming deadlines. remember the sequester in place that cuts around 2% from budgets? there is another round of sequester coming on january 15. that is targeting a lot of military spending, normally something republicans want to spend on. they know this is happening. even though we could see a replay, the lessons learned that we have seen over the last 16 days will make it less likely. but this is washington, after all. divisions are what they are. >> this deal kicks the can down the road. it allows yet more debt, more deficits, more spending, and it does absolutely nothing to provide relief for the millions of amemericans who are hurting because of obamacare. >> that was senator ted cruz who
started this crisis with that 21-hour-long speech on the senate floor, railing against what this all started with, which was trying to defund the u.s. president's key initiative of reforming health care. they didn't get what they wanted. they didn't get anything of what they wanted. they got some publicity, but that hit them at the polls in the end. >> nathan, thank you very much. we will talk much more about how this deal is being received on both sides of the aisle and how the american people are dealing with it, as well. joining us now is a former chief economist for the clinton administration, and bruce mcdonald, with the center of conflict analysis and prevention. also, bruce has been working at the white house. gentlemen, welcome. i don't know where to begin. a lot of people were talking over the last couple of hours -- this isn't new information that the information had been done late last night, the vote just a place in the senate, and we are
waiting for the house -- i guess the question is, does this deal work? does it solve the problem we have been fighting a route -- fighting about for the past few weeks? >> we successfully kicked the can down the road. i think we have also had the pain of this near collision with the debt limit and this extended government shutdown. i would bet that when we get to january and february that we are not going to have the same measure of trouble that we have this time. it's not for sure -- >> i might have to hold you to that. [laughter] >> the folks who lost on this deal probably will not want to go right back to square one and go through the same thing all over again. it would be my bet. >> bruce? >> i largely agree with joe. i think there will probably be a few diehards will try to make a last stand, but i think they have -- those who champion the shutdown and the threat of default have probably learned a very valuable lesson.
again -- >> what is a lesson? >> the lesson that the kind of scorched-earth tactics not only do not work, but they have serious negative repercussions both politically and at the party level and also for their individual perspectives, as well. >> the polls -- we are talking about the republicans, basically -- the polls show that both the white house saw their approval ratings decline, and also republicans as well. it was just republican saw a sharper decline than the white house. there are no winners here. both are losers. >> i think that is correct. i think the larger losers were those who championed the shutdown. again, as joe said, if we -- we have kicked the can down the road. we have not solved the problem. i'm sure there will be some fireworks down the road a little bit. >> as an economist, you know that the markets, wall street,
main street, the little guy, the big guy, everybody wants stability and certainty. we don't have that right now. when they come to the negotiating table next month into december, what is on the table to be negotiated? >> there's going to be an appropriations level. we had a government shutdown that was not over the amount of appropriations. >> the amount of money the government is going to spend. >> the appropriations bills were a hostage to another discussion. we will probably be talking more directly about the amount of appropriations. congress will discuss the possibility of taking some of the reductions in those appropriated programs, which many people argue were excessive, and replace them with cuts in other parts of the budget, most notably entitlement spending. democrats are going to want a tax increase to help to reduce the spending reductions, so that you can have the same deficit, but more spending. that's going to be a tough road. >> bruce, you have been in this
political business long enough to know why i would be skeptical that there would even be a deal. the two sides hate each other. it's not a couple kitted term. how do you negotiate with somebody you dislike this much? >> i think that there -- there are varying levels of dislike. politically, it is very intense, and in some cases, it does get onto the personal level. ultimately in this imperfect way, these are elected officials. they are trying to represent the views of the people they represent back home. or has been a delicate dance that they have had to go through because they are concerned, on the republican side, if they appear to be too moderate, they could be challenged in a primary by someone a lot more conservative. i think that joe has outlined the issue well. it is a question of how much they're going to be willing to give up in order to get a deal. at the end of the day, democrats are also elected representatives
of their constituents, as well. there's going to be a lot of pressure to come to some kind of a deal and really, in a way, refighting battles that we have been fighting for a while now on taxes and spending. >> when you guys were working with the white house, back then, it was president clinton -- he also had a republican congress at that time as well, and there was a lot of talk of, or we don't like him, and they don't like us, but they managed to work it out. why is it that this president and this congress have so much trouble coming to an agreement? >> this time, given the issue of, do we have obamacare grow and prosper, or do we kill it in the cradle -- >> we are back in two obamacare. >> it is hard to us but the difference on that issue. back in the clinton years, it was over how many years are we going to balance the budget, and whose economic assumptions are we going to use. you could argue that those were
numbers. >> bruce, something positive about this? >> i think that kicking the can down the road and doing something, it gives a chance for hopefully cooler heads to prevail, and i think, in particular, the idea of threatening a default on the debt -- the government shutdown is inconvenient, but the default is a whole other level. i think both sides have learned that is not a good thing. >> i think the technical term for that is it is crazy. [laughter] >thank you very much. great to have you on the show. speaking of the markets being wild, we had a bit of an opposite they. yesterday, the markets -- >> that's absolutely right. u.s. stock markets rallied after senate leaders announced that the long-awaited compromise to raise the debt ceiling will be voted on and that there will also be a deal to end the government shutdown. the dow shot up 1.3%, hosted by
goldman sachs and j.p. morgan. the s&p also gained 1.4%. it is now less than 1% away from its all-time record high reached on september 19. the nasdaq closed up 1.2%. in another sign of easing concerns, the volatility index, which is widely considered the best gauge of fear in the markets, sank 21% today. it is the biggest daily drop since august 2011. will the rally maintain its momentum? we are keeping in mind that this deal is just a short-term fix or a temporary band-aid, if you will, for a gashing wound. william tan joins me now with reaction from wall street greed you spoke to a number of wall street players, traders and analysts. what is the overall reaction to news of this deal? >> a band-aid on a gashing wound , that really is one way to put it, but unfortunately, that is a concern that is being echoed by many people who have been monitoring developments or the
lack thereof. now that the deal is being finalized in washington on making sure america can still pay bills and keep operating, the immediate crisis has been averted, but the reality is that the issue will come up again in a matter of months. that's got some wall street watchers rather vexed. >> i think this is -- defies logic, is beyond stupid that they would create these short- term deadlines. why not resolve this once and for all so we don't have to go through this again? >> u.s. markets shrugged off the concerns by embracing this 11th hour compromise just a day before the country would have spiraled into default. the deal is good news for the u.s. market and indirectly for the u.s. economy, at least in the short term. on wall street, investors rallied with all three major indices, closing up strongly. >> the market is forward-looking in the way that it reacts to things.
some people say it projects six months in advance, but clearly, the market in this situation, at least the stock market, is reacting literally on an hour by hour basis. today, it looks like they are going to have a deal. the market is up again big. nearly recovering where it has been three weeks ago before the government shutdown. >> as for global economies that rely on america's fiscal strength, we are hearing somewhat of a sigh of relief with the crisis averted for now. asian markets followed the u.s. rally with the nikkei up more than 1.2%. the hang seng index will open in a few minutes. that is likely to see a rally as well. >> we have been building a reputation for proper fiscal behavior, for our currency at least, for 237 years. united states, we have become the reserve currency of the world in the process, and people all over the world hold our paper. to give up or do anything to
damage this 237- year period of good behavior is idiocy. >> the deal could not have come at a better time as the u.s. economy is fragile economy -- a fragile recovery could has been affected. that would have had a serious and negative trickle-down effect on the rest of the world. >> that's right. everybody is to watching. as we know, yesterday fitch issued a negative watch on the u.s.'s credit rating. a temporary crisis averted at least for now. thank you so much for joining us. for more on the u.s. markets, we are joined by bill screws are low, partner and chief market strategist at bell curve trading. thanks for joining us. all along, wall street seemed relatively confident that an 11th hour agreement would and this -- would end this impasse. the defective kickoff to the
countdown, the october 17 debt ceiling deadline. did wall street get it right, and what does this news mean for wall street going forward now? >> i think the consensus was correct in this case. finally, a deal would be approved. today was a very solid day in the u.s. stock market. the dow jones, up 205 points. the nasdaq up 45 points. the s&p 500, up 23 points. people watching the show should realize that this was really a relief rally, relief that this debt ceiling impasse will be behind us in a couple of hours. for people not familiar with the debt ceiling -- even for people in the markets, it is a relatively new phenomenon. we do not talk about this 3, 4, 5 years ago. it would have been catastrophic to put the u.s. government in a position where it could not fulfill some or all of its financial obligations. we just dodged a major bullet.
>> we only dodged it for now. it is only a very temporary dodged. the deal funds the government until january 15, and it only raises the debt limit until february 7. we've really just kicked the can down the road. shouldn't there still be some market concern over the bigger picture? >> i think there will be when you -- remember, we haven't seen any economic data now for probably about a week or so. i think what you are going to see going forward is that the government shutdown and this whole debate about the debt ceiling is probably going to take as much as 0.5% off fourth- quarter gdp. we've already got an economy that is laboring, that is struggling. the last and we needed -- thing we needed was a contrived crisis that would make the economy even weaker. as we start to see the impact of this, people realize that we are going to be back in the same boat at the beginning of february, then i think this
rally is really going to be short-lived. our feeling is that the upside in the s&p 500 is probably about 1750, 1770, maybe fallen a couple of percent -- following a couple of percent. that is basically what we are telling our clients, we want to reduce our u.s. equity exposure. what you have seen here is going to be short-lived. >> the markets are feeling strongly that in light of this, the fed may be more reluctant to stop tapering down stimulus. >> that's actually the flipside. in addition to the relief about the debt ceiling impasse being behind us, the other thing that has driven the market higher is the fact that tapering is going to be pushed off. i don't think you are going to see the fed reduced the quantitative easing of money printing, certainly not anytime this year, and i think there is a good chance it gets pushed out until the end of the first quarter next year, maybe even
the end of the second quarter. that is one positive for the equity markets. the tapering or the reduction of quantitative easing is going to get pushed out at least one quarter, probably two. >> one of the things that has been lost in the headlines is harbored earnings. we have had a lot of earnings coming out, and they have not been the focus. we have bank of america, with earnings today. it has done well. what is your view on the financial sector? >> i think the financials are going to be fine going forward. i do think when you look at this earnings period, when companies start to talk about their forward guidance, you are going to hear a lot of similar messages in the sense that there is concern about what we just saw take place with the government shutdown, that there is still a large amount of uncertainty because we are going to have to do with thistle problem again at the beginning of february.
i think the earnings themselves will be ok, but i think what is going to be of concern is when companies start to give you their forward guidance. i think you are going to hear a lot of similar messages in terms of the uncertainty in washington being a problem for large corporations going forward. >> uncertainty, the key word of the day. the keyword going forward. we will have to leave it there. thank you so much. we are taking a quick break. when we come back, we focus on latin america, particularly brazil's toymakers and how the upcoming holiday season could prove to be a real money spinner. plus -- >> the mexican president's plan to raise taxes on soft drinks is facing stiff opposition. i have a report coming up from mexico city.
there is one tax hike that is aimed at fighting obesity that stands out from all the rest. frank contrary says more from mexico city. >> plans to allow forward investors to share profits with mexico's state-run oil company likely mean less income for the mexican government. to finance next year's budget, president enrique peña nieto is seeking to raise taxes. the president's plan would include a new tax of about eight cents per liter on sugar sweetened beverages. that is about half of what public health advocates would like. mexicans consume more sugary soft drinks and then any other nation in the world except united states. the mexican government said its tax proposal is aimed at an industry often associated with an increasing number of diabetes and obesity cases. many mexican consumers here in the capital aren't buying that argument. >> the soft drink tax is
supposed to help lower obesity, but it won't work because it is part of our culture to drink it. we mexicans consume lots of it. >> the president's plan to raise taxes on sodas has enough support to pass the lower house of congress. most of it comes from his own party and from a few leftist lawmakers. >> we want to help the health care system by giving it more elements and better public policies. >> meantime, major bottling and multinational soft drink companies, including coca-cola, are lobbying mexico's congress, asking it to place a direct tax on sugar and not on their products. in this soft drink-guzzling nation, there is a sense that a tax increase won't likely decrease the appetite for these beverages. they are often more easily available then drinking water. frank contrary us, cctv, mexico city. >> the holidays are just a few weeks away.
it is a very important time for the world's biggest toymakers. given the economic uncertainty around the world, toy sales could take a hit, but could brazil's toy industry benefit and gain market share? >> brazil's toy industry has entered its busiest period, christmas coming up the end of next quarter. there is also brazil's children stay on october 12. despite this jump in seasonal demand, brazil's toy manufacturers have to work hard to be foreign competition. about half the toys sold in brazil are imported. >> in brazil, i would say that mainly the imports of toys are coming from china. we forecast that more than 90% are coming from china. through importers that mainly import products produced by chinese companies, or international companies that import their own and produce in
china, but they sell their own brands. we have much work a petition in the market nowadays. >> china is the largest manufacturer of toys sold in brazil, imported under foreign brands such as mattel, the world's largest toy company based in california. the latest research available shows, in 2012, mattel dominated the market for more expensive toys. mattel boasted a 30% lead over its next competitor, another u.s. manufacturer hasbro, followed by local toy manufacturers. the recent evaluation of the brazilian currency created good prospects for the local toy industry because it made imported poducts more expensive. hopes are that the positive effects of this will last until at least the end of next her and will help national companies to regain more ground in this very
competitive market. >> if the u.s. dollar remains appreciated next year, big importers from brazil won't go to the international toy fair in munich or in nuremberg with as much money and willingness to spend as they were in the recent past. in 2014, i think imports are likely to drop at least 10%. >> when brazil opened up to imports in the mid-1990s, it nearly crushed the domestic toy industry. over the last few decades, brazilian toymakers have managed to make an impressive comeback, but analysts say they still need increased productivity and reduced costs if they are to regain their old dominance. cctv, são paulo. >> stay right there. don't go away. coming up next, we will speak with the ceo of imax theaters and how china's big love for the big screen will continue. 's, growing doubts -- plus,
growing doubts about the u.s. china fears it may have impacts on the relations. a special report is next. >> a look at the news headlines. after 16 days of deadlock in the united states government, an agreement has been reached to end the partial shutdown and avoid a default on the u.s. debt. the senate approved the deal just over an hour ago. the legislation will now go to the house of representatives for a vote. once approved by the house, it will go to president barack obama to be signed into law. >> once this agreement arrives on my desk, i will sign it immediately. we will begin reopening our government immediately. we can begin to lift this cloud of uncertainty and unease from our businesses and from the american people. >> two days of nuclear talks between iran and the five
permanent members of the united nations security council, plus germany, have ended in geneva. a joint statement said both sides had promising discussions. iran may allow unannounced visits to its nuclear sites and indicated a readiness to scale back on uranium enrichment levels. it hopes such a move will and economic sections over its disputed nuclear program. no final details have been reached yet, but another round of talks will be held in early november. 49 people were killed when the plane crashed into a river in laos. all 44 passengers on board died immediately. authorities said the plane ran into extreme weather conditions while preparing to rent -- to land. the plane belonged to the state run airlines. those are the top stories. "biz asia america" continues right now. >> welcome back to "biz asia america." i am michelle makori the nasdaq
market site in times square, new york. >> and washington, d.c., i am philip -- phillip yin. in canada, canada and the eu are near a few -- a free-trade deal. prime minister stephen harper says the accord will help diversify canada's trade. jpmorgan trace -- jpmorgan chase has been fined today. bank of america's third-quarter profits surged on investment and interest charges on loans and earned $2.5 billion. that is a $340 million bump from a year ago. those are the headlines for now. i will send it to new york with michelle. >> thank you. while the u.s. may have avoided a financial meltdown for now, the political infighting has china worried. china is one of the largest foreign holders of u.s. debt, but the government may have to rethink that position.
tracy tandon reports. >> members of u.s. and chinese business communities have gathered in new york to talk about the evolving dynamics of the two economic superpowers. as the biggest foreign holder of american debt, china has more than a passing interest in the possible u.s. default, and while many experts are optimistic the u.s. will repay its debt, they are wary that the political infighting in washington will upset u.s.-china relations. >> i don't think we will default. even if we don't, the impact will be very considerable. nobody likes to be subjected to blackmail. russian roulette. in this case, republican roulette, i guess. it's just, i think, going to ensure that china and other countries do their best to keep their distance from us, rather than to put all of their eggs in this basket. >> a recent op-ed by china's state run news agency calls on countries to rely less on the u.s. and create a "de-americaniz
ed" world. it also calls for a new international reserve currency so the international community can stay away from the spillover of intensifying domestic turmoil in the united states. for all the talk of de- americanization, many in this room tonight acknowledged the reality -- that is that the united states and china are exceptionally intertwined. >> when you look at the 21st century, it is the relationship. two great countries, both growing, one growing exponentially, the other continuing to grow. to real global powers. i think it is not just in the interest of the united states and china for the u.s. and china to move forward together and to work together, but it is really in the interest of the world. >> it is the single most important bilateral relationship in the world. a healthy relationship is absolutely critical for the world peace and economic
development. >> many chinese and u.s. business leaders are optimistic the u.s. will honor its financial obligations. while the political stalemate may have momentarily strained bilateral relations, experts say the deep ties between the two superpowers will likely endure. tracy tandon, cctv, new york. >> imax is trying to maximize its presence in china. the canadian company opened its first big screen movie theater in shanghai in 2001 and is now planning to open 450 theaters across the country over the next five years. i spoke with the ceo and asked him about imax's push into china. >> the size of our business in china is now about 100 screens versus about 400 north america. in the next five years, the size of chinese market -- the chinese market should be about equivalent to the u.s. market. in china, we are doing roughly
10%-20% of the box office. >> you recently signed a law -- a deal with asia's largest theater operator. what is the nature and the details of that deal? >> wanda is our largest partner in china, and in fact, in the world right now. this deal provides for another up to 220 theaters that we will be rolling out over the next five years. wanda is the largest real estate developer in china. they created this large entertainment shopping concept. imax theaters will be in most of these one the malls going forward. >> how much of your revenue is coming from china at the moment? >> at the moment, it is not that large, but if you look at the build out over time when these 350-400 theaters opened, it will probably be about 30%. >> are you concerned about the slowdown in the growth rate in china? is that an issue for imax, or is the fact that it is shifting towards a consumer-driven
economy more of a boon to your business? >> we are doing very well in china. i think it is largely because of what you mentioned. the focus of the government and the focus of business on a consumer-driven economy. as the demographic increases, as the standard of living increases, and as china turns more inward, we seem to be doing very well. given the rate of our expansion, i'm not really concerned about it. i think we are in a good space. >> you mentioned to me that the imax brand is actually stronger in china than in most other places. what do you attribute that to? >> the fact that in other places, like united states, for example, there was an established infrastructure in cinema. we had to convince people to change the regular habits and go to an imax theater. in china, we grew up with cinema. when we started, there were only 2000 screens in china. now there are roughly 16,000 screens in china. i think the consumer sort of
said, do i see it at a regular theater, or do i see it in nymex? -- in imax? as you know, consumer brands are very important in china. i think there is a certain amount of prestige and getting a superior experience. the chinese like being associated with the brand. >> what is the difference between an eye next ticket and regular ticket -- an imax ticket and a regular ticket>? >> typically it is 30% more for an imax tickets. >> you've recently built theaters with nearly all of china's top cinema operators, but now you are shifting your revenue model from charging upfront fees for opening these feeders to getting a percentage cut of the box office. why this shift? >> typically, when we go into a new country, we really need to know it before we are comfortable risking our capital.
when we first got into china, we didn't know if the box office would be transparent. we didn't know the extent of the partners and how good they were. as we've gotten more and more comfortable doing business in china, we've become more comfortable with taking risks. we've put our own capital in, and we share the upside if it is really good. that is great for us and our partner. if it doesn't work out as well, we are both in the same position. >> you say that you've gotten comfortable with the chinese market, and in fact, imax has had a really strong relationship with the chinese movie industry. the same cannot really be said for other hollywood studios that have had more contentious relations, more of a string situation. what do you attribute that to? >> i think part of it is history. we started going to china about 15 years ago, before it was as obvious what the market was going to evolve to. we build relationships and friendships over a long period of time. the second thing is also philosophy. we have over 65 employees in
china. we see ourselves as part of the fabric of china. that is very much our philosophy that has evolved. i think hollywood studios are starting to build the infrastructure, but until recently, i think they have seen it as an export market, like they see many other markets in the world. given the size of the chinese market and how important it is going to be, i think it will pass the u.s. and box office by 2018. i think hollywood will evolve to that model. we just got there sooner. >> imax's ceo is being honored tonight for his company's long- term investments and commitments to constructive relationships in china. at the national committee on u.s. china relations here in new york. we are going to take a quick break. when we come back, we will take a look at the growing global problem of food waste. some countries are weighted down by overwhelming obesity rates. some are struggling to feed
>> welcome back. october 16 marks united nations world food day. this was started by the un's food and never cultural organization in 1979. it aims to bring attention to the global food issues, such as hunger, malnutrition, food safety, and others related to food. the theme this year, sustainable food systems forsooth -- or food security and nutrition. 2 billion people in the world lack of vitamins essential for
good health. 1.4 billion people are overweight. the sad part is is one third of the food produced globally actually goes to waste. that comes out to be about 1.3 billion tons every single year. in the united states, an estimated 50 million people go hungry every day. meanwhile, 40% of that food goes to waste. in los angeles, our correspondent found a group of people living off of that waste. >> imagine walking out of the grocery store with three bags of groceries, dropping one and leaving it behind. that is essentially what we are doing with our food system. as a country, we are throwing away every other food stuff that crosses our path in america. >> u.s. agriculture yields an abundance of food annually, and americans waste an astronomical amount of it, some 40% of the country's food supply or 33 million metric tons, according to the u.s.-based natural resources defense council. >> food waste is the largest,
single largest solid waste product in our landfills today. it is contributing to 23% of total global methane emissions grade 1a5% of all the fresh water consumed in the u.s., including 4% of oil, is used to grow food that never gets eaten. >> hunger relief experts say it is reckless waste against the backdrop of rampant poverty. an estimated 50 million americans don't have access to enough food. >> in the united states, even our trash cans have a food. >> it is part of the inspiration behind the so-called freegan movement. they believe in a lifestyle and philosophy of salvaging what others waste, as documented by this film maker in his movie. >> all of these perfectly good eggs because one is cracked. >> they have an anti-consumer ideology, which includes practicing principles like reclaiming waste, sometimes by
food foraging, or dumpster diving. >> freegans are trying to find a better alternative to the current system we are living in. >> there is a lot of perfectly edible food that gets taken from the farm. when it doesn't look a certain way. >> farmers, merchants, and even nine out of 10 americans are prematurely tossing food. that's because they are misinterpreting food labels. consumers erroneously think these labels are an indication of food safety as opposed to peak quality. experts remind us all to educate yourself on how to decipher whether food is truly expired. cctv, los angeles. >> all of us are guilty of a little bit of that. china is also struggling to cut down on food waste. the government there is adopting tougher measures to avoid throwing tons of food away. >> as quality of life improves for millions of people in china,
eating is becoming a bigger part of the national economy. in the latest survey of chinese consumers, the global consorting firm mckinsey found a quarter of the chinese who responded spent more on prepared food, cooked and packaged by manufacturers, in 2012 than they did in 2011, while one third said they spent more on dining out. but they are also wasting more, according to one of china's top agriculture officials. an estimated 200 billion yuan, or $32 billion worth of food, is wasted in china every year. that is enough to feed an estimated 200 million people for a year. china's new leadership has said consumption will pay a key part of the country's growth over the next decade, but mounting food waste is undermining china's efforts to balance economic restructuring with sustainable
developments. if forecasted by the organization for economic cooperation and development are correct, china will overtake the u.s. as the world's largest economy as early as 2016. this is compelling china to adopt new measures to cope with literal mountains of wasted food. in august, the southern -- a southern city issued a new regulation that can penalize a restaurant up to 10,000 yuan, or about $1600 in fines, if left -- if leftovers are found in tables. in beijing, penalties are even tougher. in one district, restaurants license can be suspended and the restaurant blacklisted if inspectors find a serious waste. experts say frugality may be hindered by china's culture of being generous hosts. >> there are several reasons why chinese people waste food.
officials under 10 businessmen. according to data, 80% of china's food waste is through government or business banquets. the other 20% is waste from other people and is due to the need to save face. this year, from around january 20, president xi jinping ordered all communist party members to avoid extravagance and waste. i think this had much more impact than our appeals has done in the past. >> boosting consumption while simultaneously curbing waste could prove tricky balancing act, but as chinese landfills grow higher, many analysts say the cost of inaction will grow along with them. grace brown, cctv, beijing. >> there are also more people going hungry in the u.k. the number of people relying on food banks has tripled over the past year. trust says one third of those
recipients are children, and another one third needed food following a delay payments of benefits. joining me for more on world food day is the spokesperson for the united nations world food program. welcome to the show. let me thank you for the good work that you and the u.n. are doing on this. you're certainly driving a lot of awareness. it is great to have you on the show. let me start with this -- a lot of people don't understand, first of all, why food has to cost how much it costs. we had this great debate in the newsroom earlier when we were trying to analyze how much things are marked up in terms of food. i thought the price of food actually came down when you strip out distribution, but i was being argued with. they say the cost of food has gone up significantly, which i think is true as well. walk us through what is happening with the cost of food. >> thank you so much for having me on this program. i work for the world food program. we are the largest humanitarian organization in the world taking
care of really the neediest in the world. those are the people that live on less than two dollars a day. there, you can see the big divide. when you and i go shopping for food, i live in new york now, most of the cost for food goes into production, distribution, packaging, marketing. if you, on the other hand, live somewhere in uganda or sub- saharan africa, the food that you buy will mainly be, for example, a k a flower or something -- a kilo of flour or something. the difference is so important, how you and i are affected by food prices, compared to somebody who spends most of their income on food. you and i might spend 14%, 13% of our income on food. if you live on less than two dollars a day, most of your income will be spent on food. it is going to be the more stable foods, not the package,
produced, heavily-marketed food that you and i might be eating. >> a very simple question -- this is not a new issue, obviously. we have been talking about helping not just the poor but also the hungry around the world. the united states and other major countries distribute a lot of food. why isn't this food getting to those who need it the most? >> it is getting to the people who need it most. the interesting thing is this -- enough food is being produced around the world to really feed everybody. but people in various parts of the world, especially in sub- saharan africa, are not able to access it. they do not know where their next meal is coming from. they might be hit by droughts. they might be hit by floods. they might be hit by wars. or they are simply living in cities and towns where food is too expensive for them, where they cannot afford the food that is on the shelves. the food assistance going to the
world food program, it is reaching the people, but we are trying to work on this so we empower the poorest of the poor so that one day they will be able to help themselves. we are really changing how we are doing our business as a humanitarian organization. >> i want to ask -- for our international audience that is watching, some of them perhaps may want to help as well -- when people say, i want to help, what you tell them? >> i tell them it is totally simple to help. but me give you one number. it costs $.25 or 20 -- 20 euros sense to feed a kid and give them education. you can make a small donation of five dollars. you feed a kid in africa for a month in school. good, nutritious food and an education is a way to breaking the cycle of hunger and poverty. this is a problem we can solve.
we can do this. the world knows how to do this. we just need the political will. >> the spokesperson for the united nations world food program, i want to thank you for your time. please keep up the good work. we wish you well in making this as successful as possible. the next few minutes, we will have more on the u.s. government standoff and the vote on both sides to end the shutdown and raise the debt ceiling. plus, a baby formula scare in china seems to ripple through some of the world's biggest food co., it's. -- biggest food conglomerates. we will tell you who and why next on "biz asia america."
covering. the u.s. federal reserve says economic growth continued at a modest two moderate pace between september and october. eight of the fed's bank districts reported early in september. that is good news. growth slowed in philadelphia, richmond, chicago, and kansas city. general motors will choose between natural gas and gasoline versions as early as next summer. gm says the polity the only factory produced a full-sized car that runs on both types of fuel. apple is planning to build a new campus in silicon valley. reports say that the cupertino city council approved the billion-dollar plan. it calls for $3.5 million -- 3.5 million square feet of office space and 1000 seat auditorium. that project is expected to be completed in 2016. we are going to continue on watching what the markets are doing in reaction to what the dow did today, which jumped more
than 1%. u.s. senate leaders reached a deal to reopen the government and avert a default on the debt. the markets are opening. tara joseph is in hong kong with market reaction to the deal. >> yes, it has come down to the wire, as both the u.s. senate and house vote on a bipartisan deal to reopen the government and avoid a debt default in washington. markets are cheering here in asia on that news. the nikkei is up over 1%. it is on its longest winning streak in over seven months. korean shares are up about 0.5%. here in hong kong, stocks are up about 0.5% as well. the dollar has tested three-week highs versus the yen. the dollar, tapping a one-month high on relief over a u.s. debt deal. turning to corporate news, french gary firm danone has cut its sales and profit goals after
an asian recall of infant formula had a worse than expected impact on its baby food division. china is an important market for danone. the company, however, has faced a variety of problems in china this year, including a price- fixing scandal and an infant formula recall. equity capital markets here in asia-pacific expecting a busy day uncertainty on thursday with three ipos worth about $1.7 billion, pricing in this -- in the philippines and malaysia. the largest of the deals will come from malaysia where umw oil and gas will go public. another $580 million deal in south korea. traveler international's ipo could fetch up to $430 million in the philippines. the ipos are all expected to price well at the top of their pricing range. investors here are waiting back
into emerging markets shares. that is the latest from hong kong. back to you. >> thank you, tara. back to our top story. the senate has passed a last- minute bill that keeps the country from basically defaulting. the measure will reopen the government. nathan king user to walk us through it. we are going to pictures of what is happening on capitol hill very shortly. the senate has voted yes. the president has spoken. it sounds like the deal is a done deal. the house just needs to vote. it is a formality, right? >> it's not over until the fat lady sings. the house has had a reputation in the past of not passing it. >> somehow, i knew you were going to throw a monkey wrench into it. >> john boehner has basically said this is going to be an open vote. had it been an open vote 16 days ago, it would have passed anyway. the big question, i think, is how many republicans vote for it. they had a closed-door meeting with the republican conference, and they said, how many of you are going to vote for it? please vote for it.
it will show we are not splintered party. what if that happens or not, we will have to wait and see. the 30-50 republican lawmakers, the tea party conference, will probably vote against it. >> hold that thought for one second. for our viewers watching around the world, you are watching live pictures now from capitol hill. this is in the house of representatives on the other side of congress where they are having a discussion and preparing to vote on the senate bill that has been passed just a little more than an hour ago. as we watch these congressional people debate, i joked about it -- it feels a lot longer than two weeks. s&p came out and said, the damage has been done economically. $25 billion have been wasted in time or resources just because of the shutdown. do you think we can overcome this malaise and how we feel about the government, as so many americans feel just disgusted with what is happening? >> the $24 billion that standard & poor's quoted is about half the difference that democrats
and republicans had on the 2014 budget. >> can the u.s. regain interpretation as something that stands for good? >> i think that is the take away from this week. this may have felt like a domestic problem for everyone in the house of representatives and everyone in america. we saw china's comments about de-americanizing the american economy -- the global economy. we sought from the europeans, as well. suddenly, the world is refocused on the fact that the american dollar -- >> it's like watching your parents fight. nathan king, thank you very much good everybody watching, thank you. we will monitor the situation. for michelle and myself in washington, d.c., cctv news is coming up next. we will see you tomorrow. captioned by the national captioning institute --www.ncicap.org--