11/08/2011 World Business Report


11/08/2011

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Business Report. Welcome to World Business Report. More market

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turmoil in Asia this Thursday as worries over France lead to falls

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in Europe and the US. Asian markets are also low were

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reacting to Wall Street's fall. As England recovers from the impact

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of the riots, we asked how badly tourism has been affected by the

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events of the past few days. Shares in the US and Europe fell

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sharply on Wednesday, continuing the turmoil that hit global markets.

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Let's have a look at the figures. As far as Wall Street is concerned,

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these are the closing because there. In Europe as well, not much better.

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The London market closed down. This is what Asian markets are doing.

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The Nikkei is down 1%. The Hang Seng is also down 1.5%. Shares of

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course have fallen those in New York and in Europe. The worry

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mainly is over France and French banks. Rumours are circulating that

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France could lose its AAA credit rating. Let's talk to our guest

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from BTC partners. Thank you for joining us. What do you make of

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this? It is uncertainty. We have said it a million times. We coped

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well with good news, even better with bad news, what we do not cope

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with is uncertainty. I do not remember a period when the world

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lacked political leadership. It is short in the United States. There

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is no uniform thought process in Europe. Until they get on top of it

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and implement cuts, have avengers talking about it, this will

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continue and continue. Somebody has to get a grip of it. It is no use

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saying that we must fight on. Where is the plan about cutting debt. In

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my opinion, debt can destroy democracy. The problem are the

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rumours surrounding Societe Generale. There are rumours

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surrounding the debt rating. weeks ago we got Societe Generale's

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results. They had a big exposure to Greece. In the case of BNP, it is

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one of the more lively investment banks in it Europe. When the bond

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market comes under pressure, it is not surprising that the focus goes

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on them. These compounds the problem. The whole banking sector

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was hit. What next? Where is the leadership? I do not think we can

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say, where is the bottom? Until somebody gets a grip on the

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situation, both in the US and Europe, I thought Mervyn King was

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excellent. He said that we have done all we can. We are very

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reliant on what is happening from outside forces. That means the US

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and Europe. We need leadership. there a safe haven then out? To a

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degree that I do not think US debt is that much of an issue in terms

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of the most liquid markets of the world. But President Obama must

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come up with a programme on where he is going to cut his debt. He

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must do it quickly. There was a committee put together yesterday.

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Let's hope they act quickly. Until somebody stands up and says, I am

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in charge, we will carry on with his. Thank you.

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Barely a I told you about the Asian markets. Let's take a check on

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those. Our correspondent is in Singapore. What is the latest?

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are low. Japan's Nikkei is down about 1%. The Hang Seng is down

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about 1.5%. Your guest just talked about the state of French banks as

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well as the state of America's economy. Those issues affect Asian

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economies and that is why we are continuing to see the volatility in

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Asia. Your guest said there nobody seems to know where the market is

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going. Asian investors are saying the same thing. We are likely to

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see choppy sessions going forward. I want to mention the currency

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market. The US dollar continues to slide in Asian trade. That means

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that Asian currencies have been strengthening. Especially the

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Japanese yen, currently trading at 76.6, that is very close to the

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record high levels since the end of the Second World War. We are

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getting to that level. Traders are still aware that Japan's government

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has repeatedly said that they would monitor the market and would

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intervene if necessary. But that has not stop the Japanese yen from

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strengthening. We're also seeing the Australian dollar rising

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despite a surprise rise in the unemployment rate today. Thank you.

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Today is the day that Italy's Minister goes to the Rome

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parliament to changes to say that in future the country will only

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spend what it can raise. Leaders have acknowledged that Italy will

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soon be plunged into a full-blown sovereign debt crisis if it fails -

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- if it fails to balance its budget. This is the man who has to push

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through far reaching austerity cuts to keep Italy's creditors at bay

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and the whole country afloat. It will be his toughest task.

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economy is going at a snail's pace. That will continue over the next

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few years. Government revenues are likely to rise. They will be relied

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on having to cut spending to make inroads into the deficit. Italy is

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bracing itself for a savage cuts of up to 35 billion euros in 2012.

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These could include putting back the minimum state pension age,

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attacks on second homes, a one of tax on savings deposits, and

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symbolic salary cuts for politicians. Reportedly, event Mr

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Berlusconi is against some of the plans. Italy is ceding its

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financial decision-making to the ECB in Frankfurt. It has told the

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Italian Cabinet to nail down plants such as those for privatising state

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companies and freeing up the economy before taking them to the

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full parliament. These are Labour and trade reforms which are easier

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said than done. Markets say that Italy has dodged them for years.

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Rome knows it is a country under surveillance. It may resent outside

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interference, but if Mr Tran Monty is not seen to be delivering, the

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ECB is in a position to put the country into receivership.

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If you have been watching the English riots, would you be feeling

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nervous about visiting England? Pictures of high street littered,

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violent attacks on passers-by have been beamed across the world. It is

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bad enough for the people living here. But these cities are also

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destinations for millions of visitors each year from abroad. How

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many people will be giving Britain a wide berth? And what about the

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Olympics? I am joined by the head of the 2012 games. Thank you for

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joining us. How worried are you? This is a PR disaster for the

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Olympics? Fees and of the best images of Britain that we would

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like to be showing to the world. -- these are not the best images. But

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we are confident. We have some great months ahead of us to show

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the best side of Britain. What do you think the problems are being

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faced? It is too early to tell exactly what the impact will be

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both now and in the longer term. The industry is having a very good

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time at the moment in Britain. We have welcomed an additional 500,000

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visitors in the last year. We are seeing double-digit growth from the

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US. Speaking to some businesses in London yesterday, they have had a

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very strong July. We have great opportunity coming up. We have a

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fantastic Test match. A lot of viewers in India have been watching

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that over the last day. That is happening in Birmingham. We have

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got beach volleyball in London. worry will be on security. Will

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more money be spent? The organising committee have always stressed that

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security is high on the agenda. It is one of their priorities. It is

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something that Britain and London does very well.

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Thank you. That is a round-up of the latest business. The top

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headline is the Asian markets and how they have fallen after falls in

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the US and Europe. In a moment will have the newspaper review. Do stay

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with us. With five. -- goodbye. More news from the UK. The latest

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batch of the UFO files released by the National Archives show the

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Ministry of Defence had neither the resources or will to study the

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reporting -- the thousands of reported sightings.

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It might have been... Since the Second World War there have been

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thousands of sightings of UFO, this in 1967, which turned out to be a

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classic coats. But not all are so easily explained. In 2000 and for a

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photographer took a night time shot of his local town hall. When he

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developed it, he saw a flying saucer. Experts could not explain

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it. He sent it to the Government. They passed it to a senior image

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analyst. They declared there was insufficient information. That is

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probably a kind way of getting out of it. They did not say that it was

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a flying saucer. They cannot do that. Over the last three years,

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scores of formerly secret documents on UFO sightings have been released

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at the National Archives. Is that shows how officials within the

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ministry responded. One of the a Telecom's officers said that they

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receive thousands of reports since the Second World War. --

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intelligence officers. Despite all of these reports, they have never

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had the staff or resources to investigate them properly. There

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are still sightings of UFO is. The MoD has closed the UFO desk.

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Officially it does not investigate them any more.

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Coming up at 6am, Bill and Louise will be here with breakfast. As

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well as all of the day's news, business and sport, they will look

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at the effect of cuts on rural bus services. The transport committee

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is claimed that the elderly and those with disabilities are being

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hard hit. -- is claiming that. You're watching BBC World News. The

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headlines: The huge security operation involving thousands of

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extra police combined with heavy rain in some areas appears to have

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prevented a fifth night of rioting in cities across England.

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The first people to be found guilty of taking part in disturbances have

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been jailed. The British Prime Minister David Cameron is expected

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to make a statement later today on how to restore law and order.

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Shares have fallen on stock markets across Asia following losses in the

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US and Europe following concerns that France may lose its top credit

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rating. Hong Kong's Hang Seng index fell by more than 2.5%.

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A man suspected of masterminding the 2002 Bali bombings has arrived

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in Indonesia after being extradited from Pakistan. The authorities say

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he was the field commander who co- ordinated the attacks in Bali in

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which more than 200 people died. Now it is time for the newspaper

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review. We look at the stories making headlines around the world.

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Let's begin with the coverage of the riots which have blighted

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several English cities. The Guardian looks at the increasing

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pressure on the Prime Minister David Cameron to abandon his pledge

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to introduce cuts to the police in the midst of the violence.

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The Independent examines how vigilante groups took to the

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streets to confront troublemakers in the absence of the police.

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The Times examines another turbulent day which saw markets

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plummet due to rumours that France may see its credit rating

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