Browse content similar to 08/08/2011. Check below for episodes and series from the same categories and more!
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welcome to. Europe's central bank is ready to spend billions to help | :00:02. | :00:09. | |
drive down borrowing costs for struggling nations. | :00:09. | :00:13. | |
A leading publication in china says the financial problems in the US | :00:13. | :00:23. | |
:00:23. | :00:27. | ||
and Europe are a showcase of their There have been sharp losses for | :00:27. | :00:31. | |
Asia's main stock markets. Investors are getting their first | :00:31. | :00:34. | |
chance to react to the news that the credit worthiness of the US has | :00:34. | :00:39. | |
been cut by the ratings agency, Standard and Poor's. There have | :00:39. | :00:43. | |
also been important developments in Europe's debt crisis over the | :00:43. | :00:46. | |
weekend. The European Central Bank says it is ready to start | :00:46. | :00:51. | |
intervening in the financial markets again. | :00:51. | :00:54. | |
Also, finance chiefs from the G7 group of nations pledged to do | :00:54. | :00:59. | |
whatever is needed to steady the markets. We get more on the Asian | :00:59. | :01:09. | |
:01:09. | :01:19. | ||
Let's talk about the markets in Asia. The Hang Seng index is down | :01:19. | :01:23. | |
significantly. Why is that? Is it because of the US credit | :01:23. | :01:32. | |
downgrading or is it because of the eurozone turmoil? It is basically | :01:32. | :01:37. | |
birds -- both. Investors in Asia are worried e worried ll have a | :01:37. | :01:41. | |
significant impact on the state of the global economy. On one hand, | :01:41. | :01:46. | |
the fee is that the US economy will slow further and enter a double dip | :01:46. | :01:52. | |
recession. Growth prospects are to remain sluggish over the next 2.5 | :01:52. | :01:58. | |
years. This would hurt the region. It relies Undy US to buy billions | :01:58. | :02:03. | |
of dollars of exports every month. One expert I spoke to has said it | :02:03. | :02:08. | |
is still a fact that Asia is very dependent on demand from the US and | :02:08. | :02:13. | |
Europe. A slowdown there will see a slump in consumer demand and it | :02:13. | :02:18. | |
takes away a big support pillar for Asia's economic growth. Economists | :02:18. | :02:23. | |
say that despite the risks, Asia's growth outlook was better than the | :02:23. | :02:27. | |
US and Europe. Investors would have to shift their focus back on to the | :02:27. | :02:37. | |
regional markets. The slowdown would hurt consumer and business | :02:37. | :02:40. | |
sentiment. That is the weight on the shoulders of Asian markets | :02:40. | :02:47. | |
today. We have had comments from China, indicating that they are not | :02:48. | :02:50. | |
happy about the way Western governments are coping with the | :02:50. | :03:00. | |
crisis. What exactly was said? is a big issue. Europe is now the | :03:00. | :03:04. | |
mainland's number one trading partner. The Chinese have become | :03:04. | :03:10. | |
dependent on you by importing technology infrastructure to | :03:10. | :03:13. | |
maintain its breakneck development. It is also a large trading partner | :03:13. | :03:17. | |
with the US. What happens in the US and Europe will have an adverse | :03:17. | :03:23. | |
effect on the Chinese economy. The comments say that they want to make | :03:23. | :03:27. | |
a point. The troubles facing the US and beat the European Union are | :03:27. | :03:31. | |
grown out of political dysfunctions of the Western democracies. For | :03:31. | :03:36. | |
China, this is a challenge. It suggests that the US and European | :03:36. | :03:43. | |
assets are not as safe as they were. The government needs to explain to | :03:43. | :03:52. | |
its people about it. On to some other news. The European | :03:52. | :03:55. | |
Central Bank will flex its muscles in an effort to hold the attack on | :03:55. | :04:01. | |
European debt. On Sunday, it said it would make major purchases of | :04:01. | :04:04. | |
eurozone government bonds. It is hoped that he will help drive down | :04:04. | :04:07. | |
the borrowing costs for countries like Italy an Spain. Both countries | :04:07. | :04:10. | |
are facing dangerously high interest rates. Will that be | :04:10. | :04:16. | |
enough? We were here for the next boat shortly, but first the debt | :04:16. | :04:19. | |
crisis is having serious implication for Europe's banking | :04:19. | :04:24. | |
industry. In southern Europe, banks are struggling to raise finance. | :04:24. | :04:27. | |
Some think the loss of confidence in the baking industry could cause | :04:27. | :04:32. | |
a repeat of the 2007 financial crisis. | :04:32. | :04:36. | |
It is four years ago this week that panic first hit the markets as | :04:36. | :04:39. | |
banks across the world realised that many of the instruments they | :04:39. | :04:44. | |
held wobble Office. A credit crunch followed and in 2008, women | :04:44. | :04:50. | |
brothers as one of several large beggars to collapse. This was | :04:50. | :04:56. | |
followed by the biggest recession in 70 years. This is why talk about | :04:56. | :05:01. | |
banks being unable to raise finance causes so much worry. If banks | :05:01. | :05:07. | |
cannot borrow money, they cannot lend money. That is a dinner last - | :05:07. | :05:13. | |
- disaster for economic growth. Some have warned that banks in | :05:13. | :05:17. | |
Italy and Spain are vulnerable. There is likely to be a drag on | :05:17. | :05:20. | |
their lending and economies. Overall, it is argued that a risk | :05:20. | :05:24. | |
of another credit crunch in southern Europe is growing. Others | :05:24. | :05:28. | |
believe the funding problems could easily spread elsewhere throughout | :05:28. | :05:38. | |
:05:38. | :05:38. | ||
Europe. You'll see banks are less willing to lend to each other. You | :05:38. | :05:42. | |
see the punning at the heart of the system dry out. It has not happened | :05:42. | :05:50. | |
yet, but it could be a risk. To try and avoid such an out, the ECB is | :05:50. | :05:57. | |
extending its program of borrowing government bonds. Solving the | :05:57. | :06:07. | |
sovereign debt crisis remains the key priority. | :06:07. | :06:11. | |
We have had this comment from the ECB that it is ready to start | :06:11. | :06:15. | |
purchasing Italian and Spanish bonds. That is what everybody is | :06:15. | :06:21. | |
reading into it. Is this going to be enough? On Thursday, they said | :06:21. | :06:24. | |
the data by Irish and Portuguese bonds and that the market into a | :06:24. | :06:30. | |
frenzy. The do not know what they're going to do. They had not | :06:30. | :06:34. | |
told us what they will buy and how much. We are reading a lot into | :06:34. | :06:41. | |
this at the Merchant -- moment. The implications are that if they do by | :06:41. | :06:44. | |
the dead, you see a fall on the interest rates on those debt | :06:44. | :06:48. | |
securities over the next two or three weeks. Will there be enough? | :06:48. | :06:55. | |
When he said that, I year thinking that the bond markets were likely | :06:55. | :07:00. | |
to see more action. We have heard from Angela Mark Goult and Nicholas | :07:00. | :07:06. | |
Varcoe as the saying that there is a need for countries to sign that | :07:06. | :07:09. | |
off in the parliament spice of them off. Did the bond markets were to | :07:09. | :07:15. | |
see that fund extended? There will be a pressure on that fund to be | :07:15. | :07:21. | |
extended. That is not the key issue here. What these key figures are | :07:21. | :07:24. | |
trying to achieve is some kind of price facility within the sovereign | :07:24. | :07:30. | |
bond market. The key issue is not the price of the dead, but the | :07:30. | :07:34. | |
quantity of the dead. the dead. in the case of the Greek situation, it | :07:34. | :07:39. | |
started with pressures on yields, but it ended with pressure on Greek | :07:39. | :07:49. | |
:07:49. | :07:50. | ||
debt. The market is pushing the ECB the Portuguese, Irish, Italian and | :07:50. | :07:59. | |
Spanish debts. Let's gs. Let's g go to the American markets. What do | :07:59. | :08:03. | |
you think about the strategy by the US government to try to discredit | :08:03. | :08:09. | |
Standard and Poor's? It is always easy to shoot the messenger. That | :08:09. | :08:13. | |
is what is happening here. All they did, was to do what everybody else | :08:13. | :08:18. | |
had been thinking. What is also important about their statement was | :08:18. | :08:23. | |
the emphasis they put on the political process in their | :08:23. | :08:27. | |
judgement and not just the debt dynamics. What do you think is the | :08:27. | :08:37. | |
:08:37. | :08:38. | ||
way forward for the US? I think we will not see very much. One of the | :08:38. | :08:42. | |
objectives of the debt ceiling was to defer the question until after | :08:43. | :08:47. | |
the presidential elections. What Standard and Poor's did over the | :08:47. | :08:51. | |
weekend was insurer that the objective has failed. We are going | :08:51. | :08:57. | |
to have two pine -- president of candidates under intense scrutiny. | :08:57. | :09:02. | |
The debt crisis is a fast-moving story. If you want to keep up, go | :09:02. | :09:12. | |
:09:12. | :09:17. | ||
That's all the business news For Today. No, there is more coming | :09:17. | :09:22. | |
through. The US Treasury Secretary has confirmed that he will remain | :09:22. | :09:25. | |
in his post. There was speculation that he was planning to leave after | :09:25. | :09:30. | |
the conclusion of negotiations over the debt ceiling. That does round a | :09:30. | :09:40. | |
:09:40. | :09:52. | ||
More news from the UK now. Deaths from farms and other agricultural | :09:52. | :09:57. | |
businesses have risen it over the past two years. In the past, power | :09:57. | :10:02. | |
tools and tractors, even farm animals have been stolen. | :10:02. | :10:08. | |
This family has farmed in the cosmos for 60 years. Before, we | :10:08. | :10:14. | |
have to be the Keehan. He has had two tractors stolen. Only recently, | :10:14. | :10:20. | |
this immobiliser stop to this vehicle from being stolen as well. | :10:20. | :10:24. | |
Most of detractors have a generic K that fits all of them. This is | :10:24. | :10:29. | |
where his tractors were stolen from. �70,000 worth. Is this the you have | :10:29. | :10:39. | |
to worry about? Yes. It is constant. The latest figures show 17% rise in | :10:39. | :10:43. | |
Baroque Rome over the last two years. In 2010, it cost UK | :10:43. | :10:51. | |
agriculture nearly �50 million. figures were a big shock. The major | :10:51. | :10:54. | |
impact is tractors that are being stolen and in -- exported across | :10:54. | :11:00. | |
the globe. There is also a big rise in might stop theft. Life is harder | :11:00. | :11:06. | |
for a criminal here in an urban error -- career. There are people | :11:06. | :11:09. | |
around NAD CCTV is. In the countryside, it is harder to keep | :11:09. | :11:14. | |
track of what they are doing. areas that we cover are so much | :11:14. | :11:18. | |
greater. Response time is longer because of the fact that it is | :11:18. | :11:22. | |
further away. The important part is that we work with the community to | :11:22. | :11:25. | |
make sure we are using the resources effectively. Future | :11:26. | :11:28. | |
budget cuts mean those resources will have to be stretched even | :11:28. | :11:38. | |
:11:38. | :11:54. | ||
Here are the latest headlines: Stock markets across Asia have | :11:54. | :12:01. | |
fallen because of nervousness about government debt. | :12:01. | :12:06. | |
It is clear that they will buy Italian bonds and Spanish bonds if | :12:06. | :12:14. | |
needed. Actively implement is the phrase they used for bond buying. | :12:14. | :12:19. | |
The markets will take that as them buying the bonds if they have to to | :12:19. | :12:26. | |
reassure the markets. There had been for that looting and | :12:26. | :12:29. | |
vandalism across parts of London for the second successive night. | :12:29. | :12:33. | |
Police blamed it on copycat criminal activity. The violence | :12:33. | :12:36. | |
original started after a peaceful protest over over a fatal shooting | :12:36. | :12:41. | |
by a man by police. Saudi Arabia's King says the | :12:41. | :12:45. | |
violence by these -- searing government is unacceptable. In what | :12:45. | :12:50. | |
appears to be a co-ordinated move, the Arab government has released | :12:50. | :12:54. | |
its first statement over the actions. Turkey's Prime Minister | :12:54. | :12:59. | |
says his country is running out of patience with Damascus. | :12:59. | :13:03. | |
The typhoon in China has been downgraded to a tropical storm. It | :13:03. | :13:13. | |
:13:13. | :13:21. | ||
is expected to make landfall within Time for our newspaper review now. | :13:21. | :13:25. |