Browse content similar to 16/08/2011. Check below for episodes and series from the same categories and more!
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Now for the latest financial news, with Tania Beckett, and World | :00:03. | :00:13. | |
Business Report. Hello, welcome to World Business | :00:13. | :00:16. | |
Report. Hear are the headlines - fears that | :00:17. | :00:24. | |
the engine of Europe's growth is slowing. German GDP numbers are | :00:24. | :00:26. | |
dropping. Making the eurozone work. France | :00:26. | :00:31. | |
and Germany need to look at the solutions to the region's debt | :00:31. | :00:36. | |
crisis. Rico Hizon in Australia. Qantas is set to overhaul its | :00:36. | :00:46. | |
:00:46. | :00:46. | ||
international operations, with 1,000 jobs at risk. | :00:46. | :00:51. | |
Hello, there. More evidence will emerge today about the scale of the | :00:51. | :00:54. | |
economic slowdown in Europe. Germany and Spain are both expected | :00:55. | :00:58. | |
to announce that growth during the second quarter was down on the | :00:58. | :01:02. | |
previous three months. Analysts will be particularly | :01:02. | :01:05. | |
worried about Germany's performance, as much as Europe has been relying | :01:05. | :01:09. | |
on the strength of its economy. They are predicting German growth | :01:09. | :01:14. | |
will be down from 1.5% to just half a percent. Healthy German exports | :01:14. | :01:18. | |
have not only been driving its own economy but powering what little | :01:18. | :01:21. | |
growth there has been throughout the rest of Europe too. But | :01:21. | :01:26. | |
worldwide demand is not what it was, so the German growth story may be | :01:26. | :01:31. | |
changing direction and losing If we have a firm strong euro as | :01:31. | :01:37. | |
well, which is not helping matters at all. When demand slows and the | :01:37. | :01:41. | |
exchange rate remains fairly uncompetitive, that is also going | :01:41. | :01:45. | |
to take the edge off industrial sector demand. | :01:45. | :01:49. | |
Even before today, the Spanish economy was already weak, with | :01:49. | :01:52. | |
little sign that the country's massive unemployment problem is | :01:52. | :01:56. | |
going to improve. The start of the year, many Spaniards kept spending | :01:56. | :02:00. | |
but that can't continue. Many analysts fear the weakness of | :02:00. | :02:04. | |
Spain's export industries could lead it into a second recession, | :02:04. | :02:09. | |
which will make it harder to reduce its debt. Even if it doesn't fall | :02:09. | :02:13. | |
back into recession, it will not see the strong growth that the | :02:13. | :02:16. | |
Government is banking on, which means it will struggle to bring its | :02:16. | :02:22. | |
budget deficit down and calm the market fears. Last week, France, | :02:22. | :02:26. | |
the eurozone's second largest economy, announce growth for the | :02:26. | :02:28. | |
second quarter. But the real shadow hanging over Europe is a | :02:28. | :02:31. | |
possibility of another recession in the United States in which case | :02:31. | :02:39. | |
today's figures have plenty of scope to get worse. | :02:39. | :02:43. | |
German Government is posing a big increase in the centralisation of | :02:43. | :02:50. | |
economic policy across the eurozone. The countrys Finance Minister and | :02:50. | :02:54. | |
vice Chancellor told the BBC there should be a central authority to | :02:54. | :02:58. | |
oversee the economies of member countries. | :02:58. | :03:06. | |
If one member state failed these tests we need to - we need a maybe | :03:06. | :03:10. | |
special institution which has the possibility to make some kind of | :03:10. | :03:14. | |
assumptions to the member states. You are talking about a central | :03:14. | :03:21. | |
government, really, so what kind of powers would it have? My idea of a | :03:21. | :03:29. | |
stability council is not to have a permanent government on economic | :03:29. | :03:33. | |
issues. I think it is only in the situation of a crisis, if a member | :03:33. | :03:40. | |
state is in difficulties because of failing these tests for | :03:40. | :03:48. | |
competitiveness. So - but you are right, you need some instruments to | :03:48. | :03:53. | |
help the member states in difficulties. Maybe you can help to | :03:53. | :03:58. | |
set special rules for the economy or the labour market or so on. | :03:58. | :04:02. | |
German taxpayers have accepted bailout 1, bailout 2. Will they | :04:02. | :04:08. | |
accept bailout 3, 4, 5 - who knows how many? I think the people were | :04:08. | :04:16. | |
asked what do you do in the long term? Will you have a security | :04:16. | :04:24. | |
package, 3, 4, 5, 6 or 7, or will you change the structures in the | :04:24. | :04:27. | |
eurozone in the direction to more stability? I think if they see that | :04:27. | :04:35. | |
we will go to more stability in the eurozone, they will accept our | :04:35. | :04:38. | |
short-term activities, because they see the long-term activities are | :04:38. | :04:42. | |
very good, very good for the eurozone, for Europe and the people | :04:42. | :04:48. | |
in Germany as well. Sus well. Very sure. Will the euro exist in | :04:48. | :04:54. | |
five years' time? Its present form? We will have the euro, stay with | :04:54. | :05:01. | |
the euro, yes and we have to implement the special rules so that | :05:01. | :05:10. | |
we can be sure that we have the union. | :05:10. | :05:16. | |
Well, the French President Nicolas Sarkozy and the German Chancellor | :05:16. | :05:19. | |
Angela Merkel meet in Paris later today to disday to diso make the | :05:19. | :05:25. | |
eurozone work more effectively. Germany's crossed speculation that | :05:25. | :05:29. | |
they will be joining the debts of the 17 eurozone members. The idea | :05:29. | :05:35. | |
is gaining ground, unlikely to go away. It has the support from Italy, | :05:35. | :05:41. | |
Greece, Belgium and Luxembourg. This deepeniis deepenie crisis | :05:41. | :05:45. | |
started off with smaller smaller economies but it got bigger and | :05:45. | :05:48. | |
threatening to involve the second largest country in the eurozone, | :05:48. | :05:52. | |
France. That is why President Sarkozy is keen to end the | :05:52. | :05:55. | |
speculation surrounding his banks and country when he meets Angela | :05:55. | :06:01. | |
Merkel on Tuesday in Paris. Apart from temporary measures such as a | :06:01. | :06:06. | |
ban on short-selling, many people believe the only long-term solution | :06:06. | :06:15. | |
is the creation of euro bonds. IOU - you give me money, I will | :06:15. | :06:20. | |
repay you by at a certain date and rate of interest. | :06:20. | :06:23. | |
Each individual country is responsible for their own bonds in | :06:23. | :06:27. | |
the eurozone, if there was a euro bond, then the 17 countries using | :06:27. | :06:30. | |
the euro would be collectively guaranteeing each of those bonds. | :06:30. | :06:35. | |
It is good for bankrupt Greece, but not so good for prudent and | :06:35. | :06:39. | |
economically sound Germany. Think of it in terms of of a marriage. | :06:39. | :06:48. | |
German has to have asurity not only for its's own debts but partner | :06:48. | :06:53. | |
debts. It didn't sign up to that but now it is finding out about the | :06:53. | :06:59. | |
debts it didn't know about. Euro bonds might only be the start. Many, | :06:59. | :07:03. | |
including Britain's Finance Minister, George Osbourne, fear the | :07:03. | :07:08. | |
eurozone ultimately needs full fiscal union, where even tax rates | :07:08. | :07:12. | |
are decided centrally instead of by individual countries. | :07:12. | :07:19. | |
But the euro bond cannot happen without Germany, whose Finance | :07:19. | :07:22. | |
Minister ruled out until either eurozone countries gave up control | :07:22. | :07:28. | |
of their own taxation and spending powers. It would be a political hot | :07:28. | :07:33. | |
potato, a dilemma ruffling featers around the continent. | :07:33. | :07:37. | |
If a messy break-up of the euro is the alternative, who knows what | :07:37. | :07:40. | |
monumental decisions will be taken and soon. | :07:40. | :07:43. | |
Major job losses have been announced at the Australian airline | :07:43. | :07:50. | |
Qantas. For the details, rick co is in the BBC's office, Singapore. | :07:50. | :07:54. | |
This is a move to the East? Yes, that is right, right here in the | :07:54. | :07:58. | |
backyard. The carrier plans to undertake a | :07:58. | :08:02. | |
wide-ranging shake-up of its international business operation | :08:02. | :08:08. | |
and to change its Qantas - it could put up to 1,000 jobs at risk, which | :08:08. | :08:13. | |
will basic involve the retirement of older planes, major changes to | :08:13. | :08:18. | |
the international networks and acquisition of jets. The airline | :08:18. | :08:21. | |
faces a possible escalation of industrial action over this plan, | :08:21. | :08:26. | |
with trade unions opposed to any move by Qantas to relocate its | :08:26. | :08:30. | |
international operations off-shore. To keep the international | :08:30. | :08:35. | |
operations viable, Qantas plans to set up basically two new Asia- | :08:35. | :08:41. | |
folked airlines, one is a premium Asian carrier, based either here in | :08:41. | :08:45. | |
Singapore, Kuala Lumpur or in China. The other is the creation of a | :08:45. | :08:50. | |
Japanese low-cost carrier. Well, Australia's aircraft engineers | :08:50. | :08:56. | |
union reacted swiftly at this news. Threatening industrial action | :08:56. | :08:59. | |
within two weeks and considering a court challenge on grounds that | :08:59. | :09:06. | |
Qantas's plan is in breach of terms of its privatisation plans in the | :09:06. | :09:11. | |
early 1990s. You have the markets cheering this news of Qantas | :09:11. | :09:17. | |
reorganisation, which has shares up more than 4% in Sydney trading. | :09:17. | :09:21. | |
Let's take a look at the markets. Certainly, now, the Wall Street has | :09:21. | :09:25. | |
had three days of gains. Some of that volatility appears to be | :09:25. | :09:29. | |
coming out of the markets at the moment. This is what is happening | :09:29. | :09:32. | |
at Asia. The German growth figures - lack | :09:32. | :09:36. | |
thereof, really, half a percent - are going to influence the markets. | :09:36. | :09:38. | |
Everybody at the moment is looking for further evidence that there | :09:38. | :09:42. | |
will be a slowdown later in the year. That is the big concern. That | :09:42. | :09:52. | |
:09:52. | :09:59. | ||
is what is happening. Now for a look at some more news | :09:59. | :10:02. | |
from across the UK. Following the riots across England, Prime | :10:02. | :10:05. | |
Minister, David Cameron, has declared war on gangs and says | :10:05. | :10:08. | |
stamping them out should be a national priority. | :10:08. | :10:11. | |
As Jenny Hill reports, many groups have been working with young people | :10:11. | :10:16. | |
for years to try to steer them away from violence. | :10:16. | :10:20. | |
Violence on the streets of West Yorkshire. These pictures were | :10:20. | :10:25. | |
taken last week as rye tkwrooting and looting continued in London, | :10:25. | :10:29. | |
Birmingham and Manchester. 30 people were arrested in Manchester | :10:29. | :10:32. | |
and Huddersfield. The part played by young people in | :10:32. | :10:36. | |
last week's riots is the focus of intense debate. Why were they | :10:36. | :10:42. | |
there? How can they be stopped from doing it again? | :10:42. | :10:44. | |
At this conservation centre in Leeds, they think they have at | :10:44. | :10:50. | |
least some of the answers. We met Danny here, cleaning the pond he | :10:50. | :10:53. | |
helps to build. His antisocial and criminal behaviour meant he was | :10:53. | :10:58. | |
repeatedly excluded from school. Several years on, he is unemployed | :10:58. | :11:02. | |
but he is gaining skills, confidence and inspiration. | :11:02. | :11:09. | |
It gives you something to do to. Do it inspires people as well. | :11:09. | :11:13. | |
Not far away, they will tell you that sport can make the difference. | :11:13. | :11:16. | |
We joined a training session for these youngsters - it is about | :11:16. | :11:19. | |
football, but also about keeping them off the streets and away from | :11:19. | :11:24. | |
gang culture. And if the Government has its way, | :11:24. | :11:31. | |
you are likely to see more of this. Project Matrix in Manchester was | :11:31. | :11:35. | |
set up to tackle criminal gangs. It has had success and secured major | :11:35. | :11:39. | |
convictions. But it is only likely to form part of policy to deal with | :11:39. | :11:42. | |
street crime. It is more than a week since the first riots broke | :11:42. | :11:46. | |
out. Communities have cleared up, offenders are being punished. But | :11:46. | :11:56. | |
:11:56. | :12:05. | ||
the task of tackle the root causes You are watching BBC World News. | :12:05. | :12:11. | |
The headlines - the French President, Nicolas Sarkozy, and | :12:11. | :12:14. | |
Angela Merkel, are preparing for a crucial meeting to discuss the | :12:14. | :12:20. | |
ongoing eurozone debt crisis. The difficulties in the | :12:20. | :12:24. | |
communicating the agreement to the markets and for the citizens. I | :12:24. | :12:29. | |
think experience has really shown that we need to stand ready to | :12:29. | :12:35. | |
adapt our crisis management tools to preferably ahead and to be | :12:35. | :12:38. | |
credible and effective. A man has been arrested in the United States | :12:38. | :12:41. | |
in connection with an incident in the Australian city of Sydney | :12:41. | :12:46. | |
earlier this month, when a fake bomb was fastened around the neck | :12:46. | :12:51. | |
of an 18-year-old girl. The victim, Madeline Pulver, had to wait ten | :12:51. | :12:54. | |
hours before the experts removed the device. Thousands of angry | :12:55. | :12:58. | |
protesters have gathered in Canberra to demonstrate against | :12:58. | :13:05. | |
Government proposals for a carbon tax to kerb Grecian emissions. The | :13:05. | :13:10. | |
plans would - kerb greenhouse gases emissions. | :13:10. | :13:15. | |
Indian police have detained a man to stop him starving to death. | :13:15. | :13:18. | |
The Prime Minister promised to crack down on corruption, which has | :13:18. | :13:24. | |
become a major issue in the country. It is time for our newspaper review. | :13:24. | :13:28. | |
We look at the stories making headlines around the world. Le | :13:28. | :13:34. | |
Figaro, and the upcoming eurozone crisis summit in Paris. The two | :13:34. | :13:38. | |
leaders are meeting to try to safeguard the euro. Both say they | :13:38. | :13:41. |