Browse content similar to 09/11/2011. Check below for episodes and series from the same categories and more!
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see widespread antibiotic-resistant bacteria. It is time for World | :00:13. | :00:19. | |
Business Report. This is World Business Report. The headlines: | :00:19. | :00:25. | |
Will Italy avoid a financial bail- out with a promise from Silvio | :00:25. | :00:32. | |
Berlusconi to go? We assess what is at stake. Inflation in China has | :00:32. | :00:42. | |
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eased to a five-month live. Food price rises slowed down. -- five- | :00:45. | :00:51. | |
month low. As you have been hearing, he has promised to go. Silvio | :00:51. | :00:55. | |
Berlusconi is saying only after the Italian parliament has approved | :00:55. | :01:00. | |
plans for economic reform. In the meantime, investors have been | :01:00. | :01:04. | |
punishing the country for its high debt. On Tuesday the cost of | :01:04. | :01:10. | |
borrowing for the Italian government hit a record high. 6.67 | :01:10. | :01:20. | |
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%. It has now fallen back slightly in Asia trade this morning. Thank | :01:20. | :01:25. | |
you for coming in. To a degree, for now, the markets have got what they | :01:25. | :01:35. | |
:01:35. | :01:37. | ||
have -- wanted? It is going to be a very short window of opportunity. | :01:37. | :01:41. | |
We have seen the stock market's rally yesterday and this morning on | :01:41. | :01:47. | |
the back of good news with a new great coalition government in place | :01:47. | :01:51. | |
and now the news that Berlusconi is going to force the Italian | :01:51. | :01:56. | |
parliament to accept austerity. The problem for the euro is a long-term | :01:56. | :02:03. | |
issue. What really changes? We do not even know if Silvio Berlusconi | :02:03. | :02:11. | |
is going. Well he just force another election? -- will he. The | :02:11. | :02:19. | |
reaction of the bond market will be harder than the stock market. | :02:19. | :02:24. | |
have seen the cost of borrowing come down a little bit. One thing | :02:24. | :02:29. | |
I'm hearing over and over again, record highs, if it reaches 7%, | :02:29. | :02:35. | |
that is the point where Ireland and Portugal need a financial bail-out, | :02:35. | :02:40. | |
is that where we are going? That is pretty major because the Italian | :02:40. | :02:45. | |
economy is so large. You are absolutely right. There is nothing | :02:45. | :02:49. | |
written in stone that says when a country gets to a certain level | :02:49. | :02:56. | |
that is the crisis point. I think the market is assuming the worst | :02:56. | :03:01. | |
about Italy and wants to be convinced otherwise. What could | :03:01. | :03:07. | |
convince them that things will get better? What is there to stop Italy | :03:07. | :03:11. | |
it from going to financial meltdown? The main thing is this | :03:11. | :03:17. | |
European bail-out fund. Unfortunately, that is not fully | :03:17. | :03:24. | |
formed yet. It is certainly not large enough. It is a bit like the | :03:24. | :03:32. | |
Titanic, it is sailing into the icebergs with no lifeboats. The | :03:32. | :03:38. | |
markets are saying that is not going to work. If recede the | :03:38. | :03:42. | |
European Central Bank promising unlimited liquidity to the | :03:42. | :03:51. | |
Financial Fund to buy bonds, that may change things around. -- if we | :03:51. | :04:00. | |
see. The key is the financial stability fund having the firepower | :04:00. | :04:04. | |
to see through a meltdown? It is one of the critical aspects. What | :04:04. | :04:10. | |
are the prospects for Italy itself? Italy has had low growth for the | :04:10. | :04:15. | |
last ten years. How do they turn that around? That is a long-term | :04:15. | :04:21. | |
structural change. Thank you for clarifying things. We will see you | :04:21. | :04:31. | |
:04:31. | :04:33. | ||
again and --. Let's take a look at Greece. The make-up of a coalition | :04:33. | :04:38. | |
government will be announced, that will be announced today. No signs | :04:38. | :04:43. | |
of progress yet. Prime Minister George Papandreou has agreed to | :04:43. | :04:53. | |
:04:53. | :04:59. | ||
step down. He will meet the Greek precedent in a few hours' time. -- | :04:59. | :05:05. | |
Greek President. China's inflation has eased to 5.5% in October. That | :05:05. | :05:11. | |
is the third month in a road it has calmed down. That shows a | :05:11. | :05:15. | |
reasonably controlled slow down. It is a long way from the official | :05:16. | :05:20. | |
target of 4% for inflation. Let's speak to our correspondent in | :05:20. | :05:27. | |
Beijing. We are looking at some good news this morning. A relief | :05:27. | :05:34. | |
for the authorities? Exactly. It will be welcomed by the authorities. | :05:34. | :05:40. | |
Inflation is down for the third successive month. It is still above | :05:40. | :05:47. | |
4%, the government's target. Food inflation remains above 10%. That | :05:47. | :05:52. | |
is a politically explosive point. Generally speaking, it is good | :05:52. | :05:57. | |
economic news from China on this front. It will allow the | :05:57. | :06:02. | |
authorities more room for manoeuvre to stimulate more economic growth. | :06:02. | :06:06. | |
If that were to happen, it could be a move that would be welcomed by | :06:06. | :06:13. | |
the West. It is looking to China for global economic growth. It is | :06:13. | :06:19. | |
very important for China to have that movement. The European trading | :06:19. | :06:25. | |
market is looking very weak. That is its largest trading partner. | :06:25. | :06:29. | |
That is right. China is the largest exporter in the world. What happens | :06:29. | :06:34. | |
in Europe affects here. Authorities are concerned about that. They are | :06:34. | :06:39. | |
also concerned about the property market. Property prices have | :06:39. | :06:44. | |
started to dip in the last couple of months. There is concern about | :06:44. | :06:48. | |
the extent of bad loans across the country. They were issued by state | :06:49. | :06:55. | |
banks. You are right in pointing out that the Chinese authorities in | :06:55. | :07:00. | |
the long run want to stimulate the domestic consumption. They want to | :07:00. | :07:05. | |
do that because they are so reliant on exports to the West. That is a | :07:05. | :07:10. | |
process that will take many years. Thank you are very much indeed. | :07:10. | :07:17. | |
That story has boosted the markets in Asia today. Let's move on to the | :07:17. | :07:25. | |
international Energy Agency, says gloomy forecast last month, the | :07:25. | :07:29. | |
debt crisis in the eurozone has barely been out of the headlines. | :07:29. | :07:35. | |
We take a look at how the turmoil in some European countries may hit | :07:35. | :07:40. | |
the global energy market. While economic growth remains fragile, | :07:40. | :07:46. | |
particularly with the eurozone's debt crisis, global oil demand has | :07:46. | :07:51. | |
increased at a slow and steady rate. As austerity measures are imposed | :07:51. | :07:57. | |
across the eurozone, economies are slowing. The demand for energy is | :07:57. | :08:02. | |
falling. The question is, to what extent that will have an effect on | :08:02. | :08:06. | |
energy pricing in the long-term? Some experts say even though demand | :08:06. | :08:11. | |
may slay in the near term, the outlook is still one of rising | :08:11. | :08:17. | |
prices and limited supply. -- make it slow. The outlook will depend | :08:17. | :08:25. | |
what happens in China. If China has a hard landing, that could have a | :08:25. | :08:30. | |
significant impact on prices and the future of oil. Most people are | :08:30. | :08:34. | |
anticipating that China will continue to grow at a strong break | :08:34. | :08:44. | |
:08:44. | :08:45. | ||
and we will see oil demand growth. -- strong rate. Investment in oil | :08:45. | :08:49. | |
has to be supported by higher prices because the sources of oil | :08:49. | :08:57. | |
are becoming more expensive to produce. Oil prices hit a 2011 high | :08:57. | :09:02. | |
in April. As the conflict in Libya shut down supplies. Even though the | :09:02. | :09:08. | |
war in Libya is over, prices are expected to continue rising over | :09:08. | :09:13. | |
the long-term. The risk of unrest remains a concern. Especially if it | :09:13. | :09:19. | |
affects major exporting countries. Any unexpected drop in oil supply | :09:19. | :09:23. | |
could lead to a surge in energy prices. That could tip the global | :09:23. | :09:33. | |
economy back into recession. One company is doing well in Europe | :09:33. | :09:38. | |
despite the financial crisis. This company has seen a 37% jump in | :09:38. | :09:48. | |
:09:48. | :09:51. | ||
recurring and -- earnings. Operations in the region are very | :09:51. | :09:57. |