16/12/2011 World Business Report


16/12/2011

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diplomatic cables. The credit rating agency, fit,

:00:21.:00:27.

downgrades six top global banks in the latest warning to the financial

:00:27.:00:30.

industry. Asian markets shrug off this

:00:30.:00:36.

downgrade as investors that will on improving US data.

:00:36.:00:41.

Zynga is poised for the largest internet flotations is Google,

:00:41.:00:51.
:00:51.:00:53.

valuing the Facebook game publisher at almost $9 billion.

:00:53.:00:58.

Another day and another warning about the potential impact of the

:00:58.:01:02.

eurozone crisis. Late on Thursday, a credit rating agency downgraded

:01:02.:01:09.

six of the world's largest banks. The names involved are a bank of

:01:09.:01:18.

America and Goldman Sachs in the US. Barclay's in the UK, BNP Paribas of

:01:18.:01:24.

France and Germany's Deutsche Bank and Credit-Suisse. The agency says

:01:24.:01:27.

that the complexity of its business models makes it difficult to assess

:01:27.:01:33.

the size of the loss that could rapidly emerge from unexpected

:01:33.:01:43.

events. Markets appeared to be ignoring this.

:01:43.:01:47.

Of course, this is not the first credit rating agency to have done

:01:47.:01:52.

something similar. That is correct. It follows a

:01:52.:01:57.

similar move by Standard and Poor's late last month. One person we

:01:57.:02:01.

spoke to this morning said that investors are increasingly

:02:01.:02:05.

nonreactive to what these rating agencies are doing because there

:02:05.:02:12.

has been a great deal of bad News. Today, Asian markets have been

:02:12.:02:16.

disregarding that. They are also ignoring the Europe's economic

:02:16.:02:21.

problems for once, betting on better-than-expected jobs data from

:02:21.:02:28.

the US. All markets are higher. Not by much but still high and

:02:28.:02:32.

nonetheless. They are ending three days of losses all is a result of

:02:32.:02:38.

the US jobs data, where the unemployment rate hit a 3.5 year

:02:38.:02:47.

role -- low. After 18 years of talks, the World

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Trade Organisation is expected to announce that Russia is finally

:02:50.:02:55.

free to join the club of trading countries. Subsidies, tariffs and

:02:55.:03:00.

quotas will gradually be removed. Experts predict that the Russian

:03:00.:03:06.

economy could grow by an extra 1.5% per year as a result. But that will

:03:06.:03:10.

leave it open to the cold wind of foreign competition.

:03:10.:03:16.

Ten years after China joined the WTO, these Russian consumers are

:03:16.:03:21.

finally about to experience the joy of free trade. That should mean

:03:21.:03:26.

cheaper merchandise in the shops. Subsidies on everything from

:03:26.:03:31.

agriculture to fuel will gradually be reduced. The idea is that

:03:31.:03:35.

everyone will harvest the benefits eventually. This could permanently

:03:35.:03:40.

changed Russia from an excessive dependence on oil and gas to a more

:03:40.:03:43.

diversified economy with a more competitive service and

:03:43.:03:47.

manufacturing sector. This could be huge.

:03:47.:03:52.

For some, it could be a mixed bag. The Russian car industry was one

:03:52.:03:56.

that fought against membership. It feared that efficient foreign car

:03:56.:03:59.

companies could put them out of business.

:03:59.:04:03.

What about those that want to sell to Russia?

:04:03.:04:09.

This is that the in caviar and believe it or not, it is exported

:04:09.:04:19.

to Russia are but only when Brent Tate allows. -- when the red tape

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allows. But the other main concern is the issue of corruption. Ikea

:04:25.:04:29.

was one foreign company forced to pay $5 million to get permission to

:04:29.:04:33.

build a shot in Russia. Except in his to the Guardian Tiare may not

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end such corruption but it could help to change the culture. --

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being except it into the World Trade Organisation might not end

:04:44.:04:48.

such corruption but it could help to change the culture. This will

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hopefully reduce corruption. These are long-term targets and

:04:52.:04:57.

future promises. While the population stands to benefit

:04:57.:05:01.

eventually, inefficient businesses will have to raise their game will

:05:01.:05:08.

suffer widespread pain. It is the largest internet

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flotation since Google in 2004 and the games design over -- designer,

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Zynga, is expected to begin trading on the Nasdaq exchange.

:05:26.:05:29.

What does Alec Baldwin have to do with the latest hi-tech share

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listing? He can tell you how ended de Zynga's games are. He was

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ejected from a playing for playing one of their games. Zynga is hoping

:05:41.:05:46.

to cash in on the popularity of these and its other titles by

:05:46.:05:53.

selling 100 million shares to the public. Social media is difficult

:05:53.:05:57.

and the video game market is difficult to understand. But that

:05:57.:06:05.

said, as much scepticism ASDA is, this company has five of the top

:06:05.:06:11.

six games on the Facebook platform. They have millions and millions of

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users. Unlike many recent technological

:06:15.:06:19.

sensations, Zynga actually makes money.

:06:19.:06:26.

On this, his most popular game, you can harvest of virtual crops, feed

:06:26.:06:29.

animals and visit your neighbours. The games themselves are free but

:06:29.:06:34.

people can poachers make believe items using very real money. It is

:06:34.:06:41.

a model that is inspiring others. Sharing his idea was like minders

:06:41.:06:46.

game developers, this man describes his online game where people can

:06:46.:06:52.

upload their drawings and have them fight the drawings of their friends.

:06:52.:07:00.

Zynga is a huge inspiration for me. They have transformed the entire

:07:00.:07:03.

industry. We want to see their business model in terms of what

:07:03.:07:12.

will work and what will not work. Zynga's success may be crowned in

:07:12.:07:18.

an increasingly crowded market. Indonesia is home to the world's

:07:18.:07:21.

fourth largest population of young people but many of them end up

:07:21.:07:27.

surviving on what jobs to make a living. More than 50% of the

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working employ it is -- of the working population is employed in

:07:34.:07:44.
:07:44.:07:46.

informal work. Airport town bustling with

:07:46.:07:56.
:07:56.:07:57.

fishermen, selling their products at dawn. -- a port. For many young

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people, it is becoming increasingly difficult to find work. This area

:08:02.:08:06.

in Indonesia has a very high school drop out rate. Many young people

:08:06.:08:16.

end up doing odd jobs for going fishing to make ends meet. This is

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one of the main reasons why this country's economy could fail to

:08:20.:08:25.

meet its potential. This 22-year-old woman is one of

:08:25.:08:30.

the lucky people. She is the proud owner of a mobile phone repair shop.

:08:30.:08:35.

She received help. Her training course was paid for by the

:08:35.:08:39.

International Labour Association. But there is no safety net in the

:08:39.:08:44.

informal sector. She wants to turn her business into a legitimate one.

:08:44.:08:49.

TRANSLATION: If I can, I want to register my business so it becomes

:08:49.:08:55.

legal and I can get a back line. But I do not know how to do that.

:08:55.:09:00.

Close Indonesians never have the opportunity to think that be. This

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21-year-old had large dreams like so many of his friends. But he did

:09:07.:09:11.

not have the correct qualifications and could not find work. Now he

:09:11.:09:16.

sells magazines on the street, trying to make ends meet.

:09:16.:09:21.

TRANSLATION: I want to find work that fits my skills. I want to get

:09:21.:09:27.

a real dog but I only have a low level qualifications. -- to get a

:09:27.:09:31.

real job. This is an exceptionally young

:09:31.:09:36.

country but the full potential of Indonesia's youth is not being

:09:36.:09:41.

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