Browse content similar to 14/06/2011. Check below for episodes and series from the same categories and more!
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Those are the latest headlines. Now for the latest financial news, the | :00:06. | :00:16. | |
:00:16. | :00:17. | ||
World Business Report is next. You are with World Business Report. | :00:17. | :00:23. | |
Our headlines: Rising prices as Britain's does -- Britain discovers | :00:23. | :00:31. | |
a weak economic growth. China's inflation dilemma as Consumer Price | :00:31. | :00:36. | |
Index reaches its highest level in three years. Is it time for the | :00:36. | :00:42. | |
central bank to act? And in Japan, the price of Tokyo Electric Power | :00:42. | :00:48. | |
stores after the government approves the compensation of people | :00:48. | :00:58. | |
:00:58. | :00:58. | ||
affected by the nuclear crisis. When to act on inflation? That is | :00:58. | :01:01. | |
the problem facing the world central banks who have to control | :01:01. | :01:06. | |
price rises without taking the wind out of their fragile economic | :01:06. | :01:10. | |
recovery. The dilemma is back in focus this week with several major | :01:10. | :01:17. | |
inflation data. The UK is expected to confirm its Consumer Price Index | :01:17. | :01:24. | |
blue above the target for the 18th straight month in May. | :01:24. | :01:28. | |
Britain's cost of living is going up. It is rising faster than in | :01:28. | :01:34. | |
most other developed economies. The main measure of inflation, the | :01:34. | :01:40. | |
Consumer Price Index, stood at 4.5% in April, its highest in two-and-a- | :01:40. | :01:45. | |
half years. Compare that to the neighbouring eurozone, where CPI it | :01:45. | :01:51. | |
was significantly lower at 2.8%. And in the US, prices are also | :01:51. | :01:59. | |
rising slowly. The same a month's figure was 3.2%. Even allowing for | :01:59. | :02:04. | |
slight differences in the way CPI is calculated, inflation is clearly | :02:04. | :02:11. | |
higher in the UK. But why? The Bank of England Express has three key | :02:11. | :02:14. | |
factors that have been driving inflation. One is commodity price | :02:14. | :02:20. | |
rises which all countries have been faced with. The UK has also been | :02:20. | :02:27. | |
specifically problems by the rise in VAT. And also the weakness of | :02:27. | :02:31. | |
the British pound which has fallen by almost 30% against many | :02:31. | :02:35. | |
currencies. That means the price of imported goods and services has | :02:35. | :02:41. | |
gone up by almost 30%. So tax hikes and a weak currency are driving up | :02:41. | :02:46. | |
inflation in Britain, on top of the food and oil price increases faced | :02:46. | :02:56. | |
:02:56. | :02:57. | ||
by the whole world. That has been felt in people's pockets. It is | :02:57. | :03:03. | |
enormous. I have noticed the cost of petrol and gas and electric rise | :03:03. | :03:07. | |
cutely. The Bank of England does care about rising prices, that is | :03:07. | :03:11. | |
its job. But it is more concerned about the fragile economic growth. | :03:11. | :03:16. | |
So interest rates are likely to stay low. For now, at least, until | :03:16. | :03:22. | |
there is an indication the economy isn't a sounder footing. | :03:22. | :03:26. | |
The UK is not alone. China has had its inflation data out and we will | :03:26. | :03:32. | |
look at that later. First, shares in Japan's energy company Tepco | :03:32. | :03:36. | |
have been soaring today following a torrid few months for the operator | :03:36. | :03:40. | |
of the tsunami hit Fukushima plant. It follows news that Japanese | :03:41. | :03:44. | |
government has approved a law to help Tepco compensate victims of | :03:44. | :03:54. | |
:03:54. | :03:56. | ||
the disaster. Lovely to see you. What is going on? Welcome back. | :03:56. | :04:04. | |
Thank you. What is going on? Some good news. Finally, Tepco has its | :04:04. | :04:11. | |
currency each soaring -- currency soaring, it jumped as much as 18% | :04:11. | :04:15. | |
after the government approved a scheme to help compensate people | :04:15. | :04:18. | |
affected by the nuclear crisis. The governed initiative calls for this | :04:18. | :04:24. | |
new body to be set up to help the compensation to residents who were | :04:24. | :04:29. | |
forced to evacuate their homes around the facility. Under the plan, | :04:29. | :04:34. | |
Tepco will have to pay back all funds it receives from the | :04:34. | :04:38. | |
organisation out of future profits and will sell assets and implement | :04:38. | :04:43. | |
tough cost-cutting measures. Analysts say this of will result in | :04:43. | :04:50. | |
higher power rates. Tepco and other companies are likely to bump up | :04:50. | :04:56. | |
costs being -- charges. They are expected to reach several trillion | :04:56. | :05:05. | |
yen. Despite all of this enthusiasm, the trade minister says this has | :05:05. | :05:10. | |
not been sealed and delivered. The bill still needs to be passed by | :05:10. | :05:14. | |
Parliament. The current parliamentary session is scheduled | :05:15. | :05:18. | |
end on 22nd June but is expected to be extended to discuss a | :05:18. | :05:23. | |
supplementary budget programme. They are hoping this Bill will be | :05:23. | :05:31. | |
passed and signed by the end of the June - up by the end of June. | :05:32. | :05:33. | |
you. The International Monetary Fund has | :05:33. | :05:40. | |
announced its official shortlist of two candidates to take over. First | :05:40. | :05:44. | |
is Christine Lagarde. Her rival is the head of Mexico's central bank, | :05:44. | :05:50. | |
or Agustin Carstens. The surprise applicant, Stanley Fisher, will not | :05:50. | :06:00. | |
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be considered. He is 67 and they rule a -- he used not suitable. | :06:13. | :06:17. | |
Sales have gained consoles and the video games are fell last month to | :06:17. | :06:21. | |
their lowest level in nearly five years. The data was compiled by a | :06:21. | :06:24. | |
group who say this is partly because fewer games were released | :06:24. | :06:34. | |
:06:34. | :06:34. | ||
and gamers could be diverting their cash to more online contact. | :06:34. | :06:40. | |
Fiat has taken a stake in Chrysler to more than 50%. Will it buy up | :06:40. | :06:45. | |
the rest? Can have the company swallow a rival? It makes as many | :06:45. | :06:49. | |
cars in America as it does in the rest of the world. We have this | :06:49. | :06:56. | |
report from Rome. The chief executive of the company gave a | :06:56. | :07:01. | |
rare interview about his intentions for Chrysler. That is an open issue. | :07:01. | :07:11. | |
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The only objective is to find the requirements of fear at first. All | :07:22. | :07:25. | |
options are on the table. But the ad will still be controlled from | :07:25. | :07:35. | |
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Italy? -- Fiat. Three I have no intentions of moving the | :07:37. | :07:47. | |
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headquarters. We need to find a solution to corporate governance. | :07:48. | :07:57. | |
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It is a larger car maker. They make many more cars than us. It is an | :08:11. | :08:15. | |
interesting dilemma. We will know how to deal with it in the right | :08:15. | :08:20. | |
time. The important thing to focus on is making money. Do you think | :08:20. | :08:24. | |
Americans want to buy a small cars? Americans want to buy fuel | :08:24. | :08:34. | |
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efficient cars. If you spend enough time understanding the work we've | :08:37. | :08:43. | |
done and other competitors as well in improving efficiency. | :08:43. | :08:48. | |
That was the head of Fiat. As promised, more on Chinese inflation. | :08:48. | :08:54. | |
It has picked up pace. It is the world's second largest economy and | :08:54. | :08:58. | |
may need to raise interest rates again to further slowdown this | :08:58. | :09:04. | |
trend. New figures from the CBI say inflation figures rose by 5.5%. | :09:04. | :09:08. | |
When taking a look at a look at ned in the factories, today's | :09:08. | :09:15. | |
industrial output figures show growth at 13.3 %. It has now slowed | :09:15. | :09:20. | |
for three months in a row. Let's quickly flagged up the other | :09:20. | :09:26. | |
inflation data. India have's headline rate continues to soar. | :09:26. | :09:30. | |
Economists forecast a small rise today so keep an eye on India. On | :09:30. | :09:36. |