Browse content similar to 01/12/2011. Check below for episodes and series from the same categories and more!
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multinational business. 6 central banks take action and the market's | :00:03. | :00:13. | |
:00:13. | :00:19. | ||
rally. This is World Business Report. The headlines: President | :00:19. | :00:24. | |
Sarkozy presents his proposals to solve the eurozone crisis including | :00:24. | :00:31. | |
controversial plans to give more power to Brussels. In Asia a global | :00:31. | :00:35. | |
market rally continues after Central Bank intervention and a | :00:35. | :00:42. | |
surprise move by China. Plus, hoping for the best but prepared | :00:42. | :00:48. | |
for the worst. Eight top businessman gives us his art look | :00:48. | :00:58. | |
:00:58. | :00:58. | ||
on the crisis. The markets have been surging around the world after | :00:58. | :01:03. | |
co-ordinated action by central banks led by the US Federal Reserve | :01:03. | :01:09. | |
to East the credit crunch. The Dow had its best day in almost three | :01:10. | :01:13. | |
years on the move to make it easier for European banks to borrow | :01:13. | :01:18. | |
dollars. This may have helped the symptoms of the eurozone crisis but | :01:18. | :01:24. | |
it does not touch the cause. President Sarkozy will outline his | :01:24. | :01:28. | |
proposals for changes to the rules of the EU today, yd expected to | :01:28. | :01:35. | |
give more power to Brussels. More in a moment. First of all, we will | :01:35. | :01:45. | |
:01:45. | :01:47. | ||
look at things in Asia. Strong gains for the share markets. Yes, | :01:47. | :01:55. | |
most Asian forces are more than 2%. The immediate market fears appear | :01:55. | :02:02. | |
to be easing overnight. The Central Bank intervention has eased fears | :02:02. | :02:06. | |
of another credit crunch. There was a surprise move by the central | :02:06. | :02:13. | |
banking China. After more than a year of tightening monetary policy, | :02:13. | :02:19. | |
it looks like it is taking a U-turn in terms of cutting the amount of | :02:19. | :02:24. | |
money it requires commercial lenders to hold. Essentially it is | :02:24. | :02:30. | |
a green light to start lending again. The Hang Seng is the best | :02:30. | :02:40. | |
performer in Asia. Some specific news out today. The Chinese with | :02:40. | :02:47. | |
poor news about manufacturing, but that did not bring down the market. | :02:47. | :02:55. | |
This was the official purchasing managers' index, a snapshot of the | :02:55. | :03:02. | |
manufacturing sector in China. It was a reading of 49, the first | :03:02. | :03:08. | |
shrinkage in three years. It is not good news, but economists say that | :03:08. | :03:13. | |
it shows inflation in the manufacturing centre is easing. | :03:13. | :03:18. | |
They think that means the Central Bank will continue to ease monetary | :03:18. | :03:25. | |
policy further. Thank you Paul Stout the market rally continuing | :03:25. | :03:33. | |
which started in Europe and the US. First of all, your reaction to this | :03:33. | :03:43. | |
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rally on the markets. Obviously a good situation. It is good that the | :03:45. | :03:50. | |
central bankers are acting in a co- ordinated manner. They are working | :03:50. | :03:55. | |
together to alleviate the problems of dollar funding. We know that | :03:55. | :04:00. | |
banks are having problems borrowing dollars, so that is important. | :04:00. | :04:06. | |
Having said that, there is only so much they can do. They announced | :04:06. | :04:11. | |
another move a couple of months ago and that did not have much effect. | :04:11. | :04:17. | |
I will give you one statistic. The European Central Bank publishes | :04:17. | :04:22. | |
daily figures about how much money banks give to the CBI overnight. | :04:22. | :04:29. | |
Normally banks lend to each other, not giving it to the ECB. But there | :04:29. | :04:35. | |
is so much fear out there that banks are not lending to the ECB. | :04:35. | :04:42. | |
Overnight at the European banking system lent 300 billion euros to | :04:42. | :04:46. | |
the European Central Bank because they are so scared to lend it to | :04:46. | :04:51. | |
each other. That indicates some of the problems in the credit market. | :04:52. | :05:00. | |
Yes, it is good, but it is not easing the crunching credit markets. | :05:00. | :05:07. | |
We are looking forward to December 9th, the next EU summit. I know we | :05:07. | :05:15. | |
have said many times that this or that is really the crunch point. | :05:15. | :05:18. | |
But, Nicolas Sarkozy today was laying the foundations in terms of | :05:18. | :05:25. | |
addressing the French people and starting to put out the idea of | :05:25. | :05:30. | |
Brussels having more control. France has a AAA credit rating at | :05:30. | :05:35. | |
the moment. France and Germany are the two countries with the AAA | :05:35. | :05:41. | |
rating. That is regarded as under threat. He has elections next here | :05:41. | :05:47. | |
and his economy is slowing down. He is in a difficult position. The | :05:47. | :05:50. | |
French probably understand their needs to be greater fiscal and | :05:50. | :05:57. | |
political union. But they do not think it needs to apply to them. | :05:57. | :06:02. | |
Ali the irresponsible, smaller countries need to give up their | :06:02. | :06:09. | |
control to Brussels. I think that will be a difficult sale. When we | :06:09. | :06:15. | |
talk about treaty change, it will take years. This giving up of | :06:15. | :06:21. | |
sovereignty is happening already. We got some documentation about the | :06:21. | :06:26. | |
bail out front early this week. That showed clearly that if you | :06:27. | :06:31. | |
want the European authorities to help you will be giving up | :06:31. | :06:36. | |
sovereignty. It was there in black- and-white. You will be told what to | :06:36. | :06:41. | |
do with taxation and spending by Brussels, and if you do not make | :06:41. | :06:46. | |
good on your promises the help from the bail-out fund will stop. | :06:46. | :06:49. | |
National sovereignty is a already being given up by European | :06:49. | :06:57. | |
countries were stuck thank you for coming in. We will watch the speech | :06:57. | :07:02. | |
from President Sarkozy very closely later today. If we look at the | :07:02. | :07:12. | |
:07:12. | :07:12. | ||
fall-out from Europe's crisis, Benetton says it is hoping to | :07:12. | :07:22. | |
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expand it into markets like Russia. I think we are very worried about | :07:23. | :07:31. | |
that. Very worried as the Italians, but we should also be as Europeans. | :07:31. | :07:36. | |
The global world is going in a direction where if you do not have | :07:36. | :07:46. | |
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a critical mass. And as an Italian I am part of a larger group. 90% is | :07:46. | :07:52. | |
made of larger firms. If we do not find a way of making critical mass | :07:52. | :07:58. | |
in Italy and in Europe I think we are in trouble. You have had a | :07:58. | :08:03. | |
change of leadership in Italy recently: Mario Monti, the | :08:03. | :08:13. | |
technocratic leader. In his early there is a bad habit of confusing | :08:13. | :08:23. | |
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roles. -- in Italy. An entrepreneur needs to be an entrepreneur. What | :08:25. | :08:31. | |
has happened is that we have been living about our and ability from a | :08:31. | :08:35. | |
financial point of view for too long. Now the financial markets are | :08:35. | :08:41. | |
asking us to pay the price for that. Mario Monti is a good choice, in | :08:41. | :08:46. | |
the right direction. Hopefully he will take us to the stage of | :08:46. | :08:55. | |
getting out of trouble. In reality, Italy needs a European project. So | :08:55. | :09:01. | |
does Germany. What will put the eurozone debt crisis right? We do | :09:01. | :09:10. | |
not know that. There is a big question mark. That worries me a | :09:10. | :09:15. | |
lot. I do not think any single state can make it by itself. | :09:16. | :09:24. | |
Meanwhile, as an entrepreneur Anita BeOS do you I needed to be | :09:24. | :09:29. | |
optimistic, so I am looking for different markets. What about the | :09:29. | :09:39. | |
eurozone breaking up? Like any other major company, we have a | :09:39. | :09:45. |