Browse content similar to 28/10/2011. Check below for episodes and series from the same categories and more!
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daughter to sit on the throne ahead of younger brothers. Time for World | :00:07. | :00:17. | |
:00:17. | :00:20. | ||
Welcome. Ahead of the eurozone bail-out fund holds talks in | :00:20. | :00:28. | |
Beijing. Europe eyes China's cash pile. | :00:28. | :00:35. | |
The rescue deal it is set for the best deal in two years were stopped | :00:35. | :00:41. | |
Qantas says industrial action has costed more than $70 million as it | :00:41. | :00:51. | |
:00:51. | :00:53. | ||
faces a shareholder meeting. The head of the bail-out fund is in | :00:53. | :00:58. | |
Beijing, trying to persuade the Chinese government to help beat it | :00:58. | :01:02. | |
-- he's the eurozone debt crisis. They were to expand the fund to 1 | :01:03. | :01:08. | |
trillion. This will continue to support indebted governments. They | :01:08. | :01:13. | |
are looking to raise much of the cash from emerging economies like | :01:13. | :01:19. | |
China. China's past decade of industrial | :01:19. | :01:24. | |
growth has earned at 3.2 trillion dollars in foreign reserves. That | :01:24. | :01:30. | |
makes it a prime target for the EU which needs extra cash to boost the | :01:30. | :01:39. | |
firepower of their bail-out fund. Where else can you turn to? US is | :01:39. | :01:43. | |
all -- is already struggling with their own crisis. They have a | :01:43. | :01:50. | |
higher unemployment rate. In Asia you have China and India. He had a | :01:50. | :01:54. | |
large pool of financial resources to be used for the benefit of | :01:54. | :02:04. | |
:02:04. | :02:05. | ||
Europe. Since the start of this year, China has been buying modest | :02:05. | :02:10. | |
amounts of eurobond. But the head of the stability fund is in Beijing | :02:10. | :02:15. | |
to sell a much grander bail-out scheme. The plan is to set up a | :02:15. | :02:18. | |
special investment vehicle which will raise money from China and | :02:18. | :02:22. | |
other cash-rich States by selling them Bonn's. The cash raised will | :02:22. | :02:26. | |
act as a back-up to the money currently held by the stability | :02:26. | :02:36. | |
:02:36. | :02:37. | ||
fund. This will enable that -- of the fund to help other countries. | :02:37. | :02:42. | |
Brazil and India have recently said they are not prepared to take part | :02:42. | :02:48. | |
in a big European bail-out. They do not feel they have the skills or | :02:48. | :02:55. | |
the resources to help develop economies. From their perspective, | :02:55. | :02:58. | |
the developed economies can do more to sort themselves out rather than | :02:58. | :03:04. | |
turning to others. EU leaders in the scheme will be more credible if | :03:04. | :03:14. | |
:03:14. | :03:18. | ||
it were administered by the IMF. The Asian markets have been | :03:18. | :03:21. | |
watching very closely. They have been rallying strongly since the | :03:21. | :03:31. | |
:03:31. | :03:34. | ||
deal. No small amount of relief. A great deal of relief. Stocks have | :03:34. | :03:38. | |
climbed this Friday. Are they have extended their gains from yesterday | :03:39. | :03:46. | |
after news of the bail-out fund first broke. Relief over the course | :03:46. | :03:54. | |
of the last day. They are set for the best weekly rally since 2009. | :03:54. | :03:58. | |
This is due to the European agreement -- European agreement to | :03:58. | :04:06. | |
stem the debt crisis. It has renewed confidence in the European | :04:06. | :04:11. | |
economy. There were fears that the debt crisis may hurt growth in | :04:11. | :04:15. | |
Europe and turned Christ -- demand for Asian exports. We heard Sarkozy | :04:16. | :04:22. | |
said China will co-operate closely to help contribute. He has had a | :04:22. | :04:27. | |
phone conversation with his counterpart. The head of the | :04:27. | :04:31. | |
European stability fund is in Beijing. There were also other | :04:32. | :04:37. | |
factors at work. It was not just about Europe. In Japan, their days | :04:37. | :04:42. | |
for Sony which rose because it split from its mobile phone | :04:42. | :04:48. | |
partnership with Ericsson. Sony had agreed to by Erickson's 50% stake | :04:48. | :04:56. | |
in the mobile phone venture to integrate its smart phone business. | :04:56. | :05:04. | |
Gains for Sony up about 2%. Chinese bank share is also rising, | :05:04. | :05:07. | |
especially those of Industrial and Commercial Bank of China. It is the | :05:07. | :05:15. | |
world's largest lender in market belly. Its profits climbed 28%. The | :05:15. | :05:25. | |
:05:25. | :05:34. | ||
Bank of communication was gaining. It rose over 30%. | :05:34. | :05:40. | |
Thank you. Qantas Airways says ongoing labour unrest has cost it | :05:40. | :05:43. | |
more than $70 million. It has seen a dive in bookings ahead of the | :05:43. | :05:47. | |
Christmas period. Australia's national carrier has been hit by | :05:47. | :05:55. | |
another strike is Friday. -- this Friday. | :05:55. | :06:00. | |
The meeting could be called the annual grumble meeting. The planes | :06:00. | :06:07. | |
are flying but they are facing many complaints. Air is a sense of the | :06:07. | :06:11. | |
companies under siege. Shareholders have gone two years without a | :06:11. | :06:16. | |
dividend. The share price has dropped 40% this year. Unions are | :06:16. | :06:20. | |
taking industrial action over pay and conditions and plans to | :06:20. | :06:27. | |
outsource jobs in Asia. The pay package of Alan joys is also under | :06:27. | :06:37. | |
:06:37. | :06:38. | ||
scrutiny. His salary has jumped from three to $5 million. Qantas is | :06:38. | :06:42. | |
hoping the expansion plan is to Asia will find enough support to | :06:42. | :06:46. | |
keep the beget shareholders satisfied. They want to lodge a | :06:46. | :06:50. | |
premium airline in Singapore or Malaysia and expand its Jetstar | :06:50. | :06:56. | |
operation in Japan and elsewhere. The current round of strike action | :06:56. | :07:06. | |
:07:06. | :07:12. | ||
may have cost the company up to $20 million. | :07:12. | :07:16. | |
Let us turn our thoughts to the market reaction. It has been | :07:16. | :07:26. | |
:07:26. | :07:26. | ||
Apology for the loss of subtitles for 45 seconds | :07:26. | :08:12. | |
How long the think is a market reaction will be sustained, what | :08:12. | :08:19. | |
could see it ebbed away? It is not too different from what we have had | :08:19. | :08:27. | |
before. The scepticism has been there before. We are not really far | :08:27. | :08:34. | |
along from that. We do not know where this money will come from. It | :08:34. | :08:39. | |
is a short-term thing. We had good earnings yesterday. There was the | :08:39. | :08:44. | |
feeling that things were looking brighter. But we will be in the | :08:44. | :08:48. | |
same situation. We need more details to be able to continue this | :08:48. | :08:54. | |
could trend. Where is the money coming from? Let us look at the | :08:54. | :08:58. | |
backs. The idea is they raised an excess of 100 billion euros in | :08:58. | :09:03. | |
capital. The markets may not be receptive to the banks in trying to | :09:03. | :09:10. | |
issue more shares. Would you agree? Yes. This is the issue to start off | :09:10. | :09:15. | |
with. A lot of bad a say they can go out alone. No-one necessarily | :09:15. | :09:23. | |
believes his. -- banks. It seemed doomed to fail to start off with | :09:24. | :09:33. | |
:09:34. | :09:38. |