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with World Business Report. Welcome. These are the day's top | :00:10. | :00:14. | |
stories. Already unpopular. The French president is adopting | :00:15. | :00:23. | |
austerity measures just six months before an election. | :00:23. | :00:26. | |
Japan launches fresh measures to drive down the strong yen after a | :00:26. | :00:31. | |
ratings downgrade. What can the advertising business | :00:31. | :00:41. | |
:00:41. | :00:45. | ||
tell us about the global economy? We will hear from an industry giant. | :00:45. | :00:48. | |
Nicolas Sarkozy will meet with ministers today to finalise plans | :00:48. | :00:53. | |
to cut the nation's deficit. The Government wants to save billions | :00:53. | :00:57. | |
of euros over the next two years. It was spurred into action earlier | :00:57. | :01:00. | |
this month when traders started betting that France might lose its | :01:00. | :01:09. | |
top credit rating. France is home to some of Europe's | :01:09. | :01:13. | |
industrial Titans. They drive the economy. But this month's figures | :01:13. | :01:16. | |
show activity in the French manufacturing sector has contracted | :01:16. | :01:20. | |
for the first time in more than two years. On the back of growth | :01:20. | :01:24. | |
figures that flat line for the second quarter, it is more evidence | :01:24. | :01:29. | |
that the eurozone's second largest economy is grinding to a halt. If | :01:29. | :01:35. | |
revenues are falling, government -- governments must make savings. | :01:35. | :01:37. | |
Today, President Sarkozy is announcing some of the sharpest | :01:37. | :01:42. | |
reductions in public spending as in many years. His Cabinet will spell | :01:42. | :01:49. | |
out additional budget savings for 2011, 10 billion euros for 2012 in | :01:49. | :01:52. | |
order to stick to the government's deficit targets. It will mean | :01:52. | :01:57. | |
pruning certain tax exemptions, possibly even a new taxes for the | :01:57. | :02:02. | |
super-rich. This week, the players were given an unlikely boost from | :02:02. | :02:07. | |
some of France's wealthiest people, including the Laura Beale areas. In | :02:07. | :02:12. | |
a petition published in a weekly magazine, 16 company executives | :02:12. | :02:15. | |
call for the creation of a special contribution, a tax that would | :02:15. | :02:19. | |
target world without forcing million us to leave for overseas | :02:19. | :02:24. | |
tax havens. No French government has announced a budget since the | :02:24. | :02:28. | |
early 1970s. President Sarkozy is backing a constitutional change | :02:28. | :02:33. | |
that would require future French governments to balance their | :02:33. | :02:40. | |
budgets by law. They say this is a publicity stunt. It is never easy | :02:40. | :02:45. | |
making cuts six months before an election. The voters don't tend to | :02:45. | :02:51. | |
like it. But Sarkozy have an agenda. He will tell the people that the | :02:51. | :02:55. | |
opposition are a responsible and spendthrift, hoping to show them he | :02:55. | :03:01. | |
can make the tough decisions even in a period of that growth. -- flat | :03:01. | :03:05. | |
growth. The Far East now. The dramatic move | :03:05. | :03:10. | |
from Japan to relieve the pressure on its economy. Japan's big | :03:10. | :03:13. | |
exporting companies have been suffering from the yen hitting new | :03:13. | :03:18. | |
records. The Government has come up with a big spending plan to help | :03:18. | :03:28. | |
:03:28. | :03:31. | ||
out. Japan wants to drive down the yen? This sounds interesting. | :03:31. | :03:33. | |
apart from basically intervening in the markets they are also trying | :03:33. | :03:37. | |
their best to implement other measures to drive down the very | :03:37. | :03:43. | |
strong yen, now trading between 76 and 77 the end to the dollar. | :03:43. | :03:48. | |
Implementing this massive emergency credit facility to help local | :03:48. | :03:55. | |
company's credit -- cope with the end of's recent game. The hope is | :03:55. | :04:01. | |
that this money will make it easier for Japanese companies to buy | :04:01. | :04:04. | |
foreign companies. The Government will be asking major financial | :04:04. | :04:09. | |
firms to report on their dealers positions until the end of | :04:09. | :04:13. | |
September in an attempt to curb speculation in the currency markets. | :04:13. | :04:18. | |
These measures are being put in place after Moody's downgraded the | :04:18. | :04:23. | |
country's credit rating for the first time since 2002. Moody's is | :04:23. | :04:29. | |
blaming to ban -- Japan for a revolving door leadership that has | :04:29. | :04:39. | |
:04:39. | :04:40. | ||
slowed down the country's fiscal initiatives. The downgrade brings | :04:40. | :04:47. | |
Moody's ratings for Japan in line with Stan -- standard and Poor's. | :04:47. | :04:57. | |
:04:57. | :04:58. | ||
It cut Japan's writing to a double a minus. What has put the focus on | :04:58. | :05:02. | |
Qantas, his results have come through. What are they like? They | :05:02. | :05:06. | |
are reporting a full-year profit that more than doubled but it was | :05:06. | :05:12. | |
below market expectations. To improve profitability, you have the | :05:12. | :05:19. | |
Australian carrier announcing it was making some major restructuring | :05:19. | :05:22. | |
efforts, wanting to make new Asian airlines. One is based potentially | :05:22. | :05:28. | |
in Japan. The other is either in Kuala Lumpur, Singapore or in China | :05:28. | :05:34. | |
and there are major plans to cut jobs. As for rumours of a takeover, | :05:34. | :05:39. | |
the chief executive said he had not received any takeover offers but | :05:39. | :05:41. | |
admitted there was speculation it could be a target for private | :05:41. | :05:47. | |
equity firms. This takeover speculation was revealed by a | :05:47. | :05:51. | |
newspaper report after Qantas shares road -- hit near record lows | :05:51. | :05:56. | |
this week. Thank you. The advertising agency group WPP | :05:56. | :06:03. | |
will update the market on its half- year results. At its first quarter | :06:03. | :06:09. | |
of date, it said revenues had risen by 7%. It also saw a strong | :06:09. | :06:13. | |
performance in at some of its more sure markets well faster-growing | :06:13. | :06:21. | |
areas had picked up. This is one particular execution. | :06:21. | :06:24. | |
Whether you are selling mouthwash, bathrooms or cars, you have to | :06:24. | :06:29. | |
think not only about the images you use all were the EU -- but about | :06:29. | :06:33. | |
whether you are using the right channels to get your customers. | :06:33. | :06:38. | |
There is concern that a slowdown in the US and UK would mean companies | :06:38. | :06:43. | |
like WPP are looking elsewhere to expand their businesses. More | :06:43. | :06:46. | |
multinationals are placing investment in the internet and the | :06:46. | :06:50. | |
emerging markets of Brazil, Russia, India and China to combat the | :06:50. | :06:57. | |
downturn. The DPP's strategy once the market | :06:57. | :07:04. | |
to be the engine of growth. Agencies are also well placed to do | :07:04. | :07:08. | |
some of the custom insights and market analytics and Digital | :07:09. | :07:14. | |
Analysis. They had an awful lot of data that they can analyse and a | :07:14. | :07:19. | |
useful for their clients. WPP has been profitable every year for the | :07:19. | :07:25. | |
past five. Of the 16 billion dollar business, only around the % of that | :07:25. | :07:30. | |
revenue comes from traditional forms of advertising. During the | :07:30. | :07:35. | |
economic slowdown, the advertising industry declined. Agencies like | :07:35. | :07:38. | |
this one found its clients developing building and investing | :07:38. | :07:42. | |
in its online presence. Said that it could cash in on the rise of | :07:42. | :07:49. | |
social media. Advertising spending on social media sites has grown by | :07:49. | :07:56. | |
148 % over the last three years. For firms like WPP, capitalising on | :07:56. | :07:59. | |
that growth and the potential expansion in Asia will provide a | :07:59. | :08:05. | |
more rosy future of a UK and US market -- while the UK and US tread | :08:05. | :08:11. | |
water. Shares in Bank of America were | :08:11. | :08:15. | |
pummelled again during the Tuesday trading session. The bank's Chief | :08:15. | :08:18. | |
Executive defended his company against claims it would have to | :08:18. | :08:22. | |
write off tens of billions of dollars worth of bad debt. The bank | :08:22. | :08:28. | |
has plenty of cash on its balance sheet. The shares have more than | :08:28. | :08:31. | |
halved in their value. After six days of games, gold | :08:31. | :08:38. | |
prices fell back on Tuesday. The price fell by more than $30, | :08:38. | :08:46. | |
closing at $860. It is a temporary setback. | :08:47. | :08:56. | |
:08:57. | :08:58. | ||
Phones are bidding to -- for a US video servers. It is worth up to | :08:58. | :09:05. | |
$80 billion. Google and Amazon could be interested in the business. | :09:05. | :09:09. | |
It's take a look at the financial markets. The picture in the Far | :09:09. | :09:14. | |
East. We saw some gains during the trading session. It appeared as if | :09:14. | :09:17. | |
the Nikkei has shrugged off that downgrade coming through from | :09:17. | :09:25. | |
Moody's. It is beginning to bite. Moody's also downgraded a number of | :09:25. | :09:35. | |
:09:35. | :09:37. | ||
Japanese banks. There is pressure coming through from the US because | :09:37. | :09:45. | |
on Friday, we are looking ahead to what is happening in Wyoming with a | :09:45. | :09:49. | |
gathering of the Ben Bernanke and many others. An indication of the | :09:49. | :09:59. | |
:09:59. | :10:02. | ||
US economy. The newspaper review is coming up. | :10:02. | :10:06. | |
Before we look at the newspapers, for the last month or so, we have | :10:06. | :10:10. | |
been trying to put together a map which shows wait to get a 3D signal | :10:10. | :10:14. | |
to make a smartphone work properly. Our technology Correspondent | :10:15. | :10:18. | |
reports. You don't tend to get a signal just | :10:18. | :10:27. | |
yet. How is a -- your mobile signal? In a park, we are finding | :10:27. | :10:32. | |
it a struggle to get 3D. According to away results, that is not | :10:32. | :10:37. | |
uncommon. I caught a train to London to look for more evidence. A | :10:38. | :10:41. | |
one-man shows that people are getting the signal must have the | :10:41. | :10:46. | |
time but there are gaps in coverage in towns as well as the country. | :10:46. | :10:50. | |
Many people expect they will be able to get online with their | :10:50. | :10:54. | |
phones even on a moving train. Our map appears to show that on a large | :10:54. | :11:02. | |
sections of this journey, that could be pretty tricky. I'd about | :11:02. | :11:08. | |
to meet someone who had taken part in the survey. What kind of signal | :11:08. | :11:15. | |
are you getting? Two bars. A trainee vicar has found that his | :11:15. | :11:20. | |
smartphone is not much use without 3D. People want to be able to | :11:21. | :11:26. | |
consume media and things like that on their mobiles. Just as much as | :11:26. | :11:31. | |
people in cities. To cut them off from services and not provide those | :11:31. | :11:35. | |
services seemed to perpetuate that disadvantage. The next stage in | :11:35. | :11:41. | |
away mobile journey will see has moved to 40 networks. Will that | :11:41. | :11:48. | |
sort out the problems faced by people living in this area? Those | :11:48. | :11:52. | |
areas which have got reasonable coverage at the present times will | :11:52. | :11:56. | |
get better. You'll still find a rhythm -- relatively good coverage | :11:56. | :12:00. | |
in areas where it is limited at the present time. The hope is that our | :12:01. | :12:04. | |
map will give the mobile networks more information on who needs a | :12:04. | :12:14. | |
:12:14. | :12:15. | ||
better signal. This is BBC World news. Rapturous celebrations in the | :12:15. | :12:20. | |
central square of Tripoli. Rebels took control of Colonel Gaddafi's | :12:20. | :12:27. | |
compound. There were similar scenes in Benghazi. Reports of sporadic | :12:27. | :12:31. | |
fighting in Tripoli. A pro Gaddafi TV channel says he | :12:31. | :12:37. | |
has given a defiant speech broadcast on a local radio station. | :12:37. | :12:41. | |
He is credited as saying he withdrew from his barracks for | :12:41. | :12:46. | |
tactical reasons. His spokesman took to the airwaves also with a | :12:46. | :12:51. | |
stark warning for the Rebels. TRANSLATION: If the Apache strikes | :12:51. | :12:56. | |
continue and the bombardment by the military continues, we will spread | :12:56. | :13:05. | |
all over the streets of Tripoli and transform it into a death trap. | :13:05. | :13:10. | |
EU countries supported by the US say they have prepared a draft | :13:10. | :13:13. | |
resolution at the UN calling for international sanctions against the | :13:13. | :13:19. | |
Syrian government. French diplomats said the draft has been accepted by | :13:19. | :13:23. | |
memory -- members of these security council. | :13:23. | :13:26. | |
A court in New York has dismissed sexual assault charges against | :13:27. | :13:31. | |
Dominique Strauss-Kahn. Prosecutors said they could not disprove his | :13:31. | :13:41. | |
:13:41. | :13:42. |