Browse content similar to 23/11/2011. Check below for episodes and series from the same categories and more!
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one was hurt. Now for the latest business news. Hello and welcome to | :00:12. | :00:22. | |
:00:22. | :00:25. | ||
World Business Report. I'm Sally Bundock. The headlines: the | :00:25. | :00:35. | |
:00:35. | :00:41. | ||
European Commission plan to cut eurozone borrowing costs. One | :00:41. | :00:46. | |
eurobond to roll them all, issued by the European Central Bank and | :00:46. | :00:52. | |
backed by Germany's credit rating. It sounds like a fantastic idea for | :00:52. | :00:58. | |
the 17 countries of the eurozone, especially Greece, Italy and Spain, | :00:58. | :01:04. | |
facing punishing borrowing costs. They could be able to borrow | :01:04. | :01:09. | |
against Germany's credibility at lower rates. There would be even | :01:09. | :01:12. | |
less reason for spendthrift governments to live within their | :01:12. | :01:15. | |
means and Germany would be left to pick up the bill. Our correspondent | :01:15. | :01:25. | |
:01:25. | :01:26. | ||
reports. 17 countries sharing the currency that raising loans through | :01:26. | :01:31. | |
their own central banks. It would spread the credit risk between the | :01:31. | :01:35. | |
financially strong and those countries struggling to stay afloat. | :01:35. | :01:40. | |
Britain may have a large deficit but lenders Truss the Bank of | :01:40. | :01:47. | |
England. It can borrow money for just over 2%. The European Central | :01:47. | :01:57. | |
:01:57. | :02:04. | ||
Bank can also issue bonds. It is clear that any type of eurobonds | :02:04. | :02:14. | |
:02:14. | :02:17. | ||
would have to go in parallel with a substantially reinforced... as an | :02:17. | :02:22. | |
essential counterpart. The whole idea is dead and the water if he | :02:22. | :02:28. | |
cannot persuade the Germans to lest their objections. So far they will | :02:28. | :02:34. | |
not be made liable for the other country's overspending. There has | :02:34. | :02:42. | |
already been acceptance by Angela Merkel that eurobonds could be a | :02:42. | :02:52. | |
:02:52. | :02:59. | ||
solution. She has not rule them out completely. The question is, can | :02:59. | :03:05. | |
the market see them in the medium term of 18 months to two years. | :03:05. | :03:11. | |
That would inspire some confidence. Financial markets would probably by | :03:11. | :03:16. | |
eurobonds, but so far Germany does not buy the idea. The treaty | :03:16. | :03:19. | |
changes that would be needed to introduce them are considerable. | :03:19. | :03:26. | |
BBC News. The year's only hope of escaping is to earn enough money to | :03:26. | :03:33. | |
pay off the international creditors. The region's economy has ground to | :03:33. | :03:36. | |
a halt and many eurozone nations are already on the verge of | :03:36. | :03:42. | |
recession. Later today a gauge of economic health is expected to show | :03:42. | :03:47. | |
that their economic sector is headed for a period of shrinking | :03:47. | :03:53. | |
wealth or recession. Sony Kapoor, Managing Director of Re-Define, | :03:53. | :03:59. | |
joins us from our studio in Brussels. Are you expecting this | :03:59. | :04:03. | |
purchasing managers' index number to show that we are heading for | :04:03. | :04:09. | |
recession in the eurozone? If you look at the numbers from China | :04:09. | :04:14. | |
yesterday. They are also looking down in that the numbers are worse | :04:14. | :04:19. | |
than expected. If China is in that situation the very best we can hope | :04:19. | :04:29. | |
:04:29. | :04:31. | ||
for is a fall which looks me down, rather than completely catastrophic. | :04:31. | :04:35. | |
We are probably not quite in recession, but we are falling into | :04:35. | :04:42. | |
wet. The new chief of the European Central Bank said it was a key bit | :04:42. | :04:48. | |
of data. Do you feel that for him and the ECB this is an assertion | :04:48. | :04:56. | |
that they have to cut rates? problem is that cutting rates will | :04:56. | :05:05. | |
not be much help. They are already at. 25% and even if you cut them | :05:05. | :05:11. | |
right down to zero it will have very little effect on the economies | :05:11. | :05:16. | |
of the telly and Spain, where it is most needed. Because nobody in | :05:16. | :05:23. | |
Italy and Spain is able to borrow at anywhere near the ECB rate. They | :05:23. | :05:30. | |
can only borrow at 6% of 7%. The mechanism is completely broken and | :05:30. | :05:36. | |
that is why the ECB needs to buy government bonds and support a | :05:36. | :05:44. | |
target for Italy and Spain. Thank you for giving us your take. We | :05:44. | :05:49. | |
will make sure you hear what the numbers are and what they mean for | :05:49. | :05:54. | |
the eurozone economies as soon as we get them. A controversial tax | :05:54. | :06:00. | |
that has helped to oust a prime minister. Australia today passed a | :06:00. | :06:04. | |
levy on the mining industry. The law still needs to be rubber- | :06:04. | :06:09. | |
stamped by the Senate but it is expected to be law next year. Our | :06:09. | :06:13. | |
correspondent reports. This is an unprecedented tax for an | :06:13. | :06:19. | |
unprecedented mining there. 30 companies will have to pay the tax, | :06:19. | :06:25. | |
where their profits exceed $70 million per year. BHP Billiton last | :06:25. | :06:31. | |
year made more than $20 billion in profits. The Labour Government had | :06:31. | :06:36. | |
dug deep that the mining Bonanza had to be shared while Australians. | :06:36. | :06:45. | |
-- had argued that. The lower house passed the bill by only two votes. | :06:45. | :06:52. | |
The money raised, $20 billion by 2015, will help small businesses, | :06:52. | :06:55. | |
increase pensions and pay for infrastructure projects around | :06:55. | :07:00. | |
Australia. The mining company said it would put investment under | :07:00. | :07:06. | |
threat. Companies say that could be diverted to South Africa or South | :07:07. | :07:16. | |
:07:17. | :07:17. | ||
America. When Chinese demand for Australian iron ore is expected the | :07:17. | :07:22. | |
many millions of tons, the government says those warnings are | :07:22. | :07:27. | |
unfounded. From July of next year there will be a mining tax in | :07:27. | :07:33. | |
Australia. One more global affect of the rise of China. BBC News, | :07:33. | :07:41. | |
Sydney. The US truck maker Merck is to pay just under $1 billion to | :07:41. | :07:48. | |
settle laws relating to its arthritis drug Vioxx. It withdrew | :07:48. | :07:53. | |
the trochee amid concerns it could cause heart attacks. Criminal and | :07:53. | :08:00. | |
civil charges followed, claiming Merck had misled the FTA. Korean | :08:00. | :08:05. | |
pop music, nicknamed K-pop, is increasingly popular in Japan and | :08:05. | :08:10. | |
other parts of Asia. Now the industry hopes to make inroads into | :08:10. | :08:19. | |
the lucrative US pop charts. One of the Companies lists on the stock | :08:19. | :08:23. | |
market today as it seeks to raise extra funding for its overseas | :08:23. | :08:33. | |
operations. Our correspondent reports. How much are they worth? A | :08:33. | :08:39. | |
perennial question in Korea, asked in different ways by everyone - | :08:39. | :08:44. | |
consumers, managers and artists. Now it is a question one of the | :08:44. | :08:50. | |
biggest names in K-pop is asking that the stock market. YG | :08:50. | :08:56. | |
Entertainment is the home of many successful Korean grouorean grou | :08:56. | :09:00. | |
brought in 40 million US dollars last year and this week it is | :09:00. | :09:08. | |
offering 5 million shares on Korea's stock market index. Two | :09:08. | :09:13. | |
other giants of the Entertainment are those already listed. A sign of | :09:13. | :09:22. | |
what some say his K-pop's growing international appeal. The managing | :09:22. | :09:28. | |
director wants to spread his company's success overseas. Is the | :09:28. | :09:33. | |
key is cheap in South Korea, particularly when brought online. | :09:33. | :09:39. | |
K-pop is an expensive product. Despite filling stadiums, its stars | :09:39. | :09:45. |