Browse content similar to 12/01/2012. Check below for episodes and series from the same categories and more!
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sale of debt in Italy and Spain and job losses, now time for the latest | :00:03. | :00:13. | |
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financial news with world business Hello, a warm welcome. The | :00:18. | :00:22. | |
headlines - Spain prepares to auction 5 billion euros of bonds in | :00:22. | :00:28. | |
a major Tess of the investors risk appetite, Itpetite, Itelling debt. | :00:28. | :00:33. | |
Singapore, China's inflation rate down to a 15-month low which leaves | :00:33. | :00:40. | |
the Government more room the slowdown impact exports. Royal Bank | :00:40. | :00:46. | |
today as it moves away if investment bvestment ber pressure | :00:46. | :00:56. | |
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from its main shareholder the UK bond auction for 2012 for Italy and | :01:03. | :01:06. | |
Spain the two eurozone economies causing most concern. Between them | :01:06. | :01:11. | |
they hope to sell as much as 17 billion euros worth of debt in a | :01:11. | :01:18. | |
few hours Tim and the Italian new Prime Minister urges investors to | :01:18. | :01:22. | |
reward Italy for its austerity efforts but needing to pay more | :01:22. | :01:27. | |
than 15 billion in bonds by the end of March will borrowinl borrowin | :01:27. | :01:33. | |
continue to surge if the new government? This is a rare view of | :01:33. | :01:37. | |
the anonymous-looking trading room | :01:37. | :01:42. | |
bonds. Centres like it across Europe work over time. It all kicks | :01:42. | :01:46. | |
off today and tomorrow when Spain and Italy try to borrow billions in | :01:46. | :01:49. | |
the next of some 60 sovereign auctions but wary markets will be | :01:49. | :01:55. | |
watching over the effect few weeks. The stay liquid and solvent whole | :01:55. | :01:59. | |
countries have no alternative but to keep rolling over their bonds at | :01:59. | :02:05. | |
auction and if they can not afford do that their only at sieve toys | :02:05. | :02:09. | |
seek a bailout and probably default as well. European bond prices and | :02:09. | :02:13. | |
the cost of borrowing, the yield, become a very public measure of a | :02:13. | :02:18. | |
country's ability to keep serviceing its debts without going | :02:18. | :02:23. | |
bust.. The one the market focuss on are the Italian an Spanish bond | :02:23. | :02:26. | |
Australia's because the borrowing costs have been riding aggressively | :02:26. | :02:32. | |
over the last few months. The Italian borrowing cost is reaching | :02:32. | :02:35. | |
a troubling level where it is possible it could be unsustainable | :02:35. | :02:40. | |
if they continue to borrow for these rates. But people are looking | :02:40. | :02:44. | |
at the French and German auction t reason they look at the French | :02:44. | :02:48. | |
auction is because the crisis appears to be spreading from the | :02:48. | :02:51. | |
privy countries to the core countries. That is a worry because | :02:51. | :02:56. | |
the Celine Dion survival in its present form depends on successful | :02:56. | :03:00. | |
auctions where commercial lenders are prepared to fund countries at | :03:00. | :03:08. | |
prices their treasuries can afford to repay. Key to success of the | :03:08. | :03:12. | |
debt auctions of course is the role of the European Central Bank which | :03:12. | :03:16. | |
has given the region's financial sector ultra-cheap loans in the | :03:16. | :03:20. | |
hope it will put the money back into the bond markets. We will hear | :03:20. | :03:23. | |
if the ECB today they hold their first meeting to decide on interest | :03:23. | :03:27. | |
rates this year. Most market watchers expect it to hold interest | :03:27. | :03:31. | |
rates at their record low of a per cent but what else might we hear | :03:32. | :03:41. | |
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from them? Let's talk about the ECB meeting. I assume rates will remain | :03:44. | :03:47. | |
on hold, they will take it as a breather to see what is going on? | :03:47. | :03:53. | |
Is that the idea? That is it. We have had two exciting meetings in | :03:53. | :03:57. | |
November and December. Marrow entering office with two rate cuts | :03:57. | :04:03. | |
and now it is time for breather to see how the economy evolves and how | :04:03. | :04:06. | |
the financial sector evolves and what the Celine Dion crisis is | :04:06. | :04:10. | |
doing. In the next two months we should see another rate cut. | :04:10. | :04:16. | |
terms of what they are watching, on December 21 they gave banks in | :04:16. | :04:19. | |
Europe access to very, very cheap loans. There was a big uptake of | :04:19. | :04:26. | |
that. What has been going on with that money since then? It is hard | :04:26. | :04:32. | |
to say. We will see the inter--pang market, the market where -- inter- | :04:32. | :04:36. | |
bank market where they lend each other money is stuck. We have the | :04:36. | :04:40. | |
bank frost the peripheral countries that need money at the ECB and we | :04:40. | :04:47. | |
have called bank the core Celine Dion companies which have the like | :04:47. | :04:57. | |
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This be German money market papers. Earlier this week we had an auction | :04:58. | :05:03. | |
of a six-month paper from Germany with a negative interest rate. | :05:03. | :05:08. | |
Obviously the ECB would want that money to be used to help today's | :05:08. | :05:12. | |
bond sale in Spain, Italy selling bills and bonds tomorrow. That is | :05:12. | :05:16. | |
not happening then? Is that what you are saying? Obviously the bank | :05:16. | :05:22. | |
rgs go for the fear factor keeping it in a says flavour ever place for | :05:22. | :05:27. | |
the ECB? We did see in 2008 and 2009 that it happened but this time | :05:27. | :05:35. | |
around it is different. Many banks need to improve their Capitol - | :05:35. | :05:40. | |
capital positions. Eurozone bonds are not risk-free which means banks | :05:40. | :05:45. | |
will be hesitant the invest in the assets they do not consider as | :05:45. | :05:52. | |
what is happening at the moment. When we hear if the European | :05:52. | :05:55. | |
Central Bank in terms of their rate decision and what else they have to | :05:56. | :06:00. | |
say we make sure you know. Let's talk about Royal Bank of Scotland | :06:00. | :06:04. | |
because today it is expected to announce major job cuts of between | :06:04. | :06:07. | |
3,000 and 4,000 investment chip banking positions which could be | :06:07. | :06:14. | |
going. RBS is 83% owned by the UK government after it pumped in some | :06:14. | :06:18. | |
$70 billion to keep the group afloat during the financial crisis. | :06:18. | :06:22. | |
It is now under pressure the focus more on domestic and business | :06:22. | :06:28. | |
banking and move away from more risky operations. Here is the BBC's | :06:28. | :06:32. | |
business editor on what today's restructure is likely to involve. | :06:32. | :06:38. | |
What it is eliminating is its business in share trading, advising | :06:38. | :06:41. | |
companies on takeovers. What is traditionally known as equities | :06:42. | :06:45. | |
business used to be done stock brokers and traditional merchant | :06:45. | :06:50. | |
banks. The reason it is getting out of that business is because it is | :06:50. | :06:54. | |
not really Division One player and it is not making any money there. | :06:54. | :06:59. | |
This is a bank that needs to become more profitable because it is under | :06:59. | :07:04. | |
a fair amount of pressure to get its profits and share price up so | :07:04. | :07:12. | |
we as taxpayers can get our money back. Our business editor. Has | :07:12. | :07:17. | |
China tamed inflation? They have their latest inflation numbers out | :07:17. | :07:23. | |
and it looks encouraging, doesn't it? Very encouraging and they have | :07:23. | :07:27. | |
basically painted to a certain extent, an inflation level this the | :07:27. | :07:32. | |
mainland has not seen in more than year. The consumer price index | :07:32. | :07:38. | |
easing to a 4.1% in the month of December after peaking at the high | :07:38. | :07:46. | |
of 6.5% last July. For all of 2011 though prices rose 5.4% which is | :07:46. | :07:52. | |
still higher than Beijing's target level of 4%. When you talk to the | :07:52. | :07:55. | |
economists they say prices may ease further in the first quarter of | :07:55. | :08:00. | |
this year and with inflation slipping, monetary policy makers | :08:00. | :08:04. | |
are now prioritising the economic showdown which could force them | :08:04. | :08:12. | |
basically did make more cuts in 2012. The reduction could be 2% | :08:12. | :08:16. | |
through the course of this year and many expect at least a half a per | :08:16. | :08:20. | |
cent interest rate reduction from the Central Bank before the lunar | :08:20. | :08:26. | |
new year holidays next week. Basically, possible say makers want | :08:26. | :08:29. | |
to fine-tune policy to be sufficient to keep the economy on | :08:29. | :08:33. | |
stable expansion path. After the inflation index has been released | :08:33. | :08:40. | |
markets will now focus on that key GDP data which will be unveiled in | :08:40. | :08:48. | |
less an week's time. China goat in the fourth quarter may have slowed | :08:48. | :08:53. | |
from 9.1% the previous quarter. will keep an eye on this as well. | :08:53. | :08:58. | |
Let's squeeze in some more stories. The biggest shake-up in in her net | :08:58. | :09:02. | |
addresss in more than two decades gets under way later. From today it | :09:02. | :09:08. | |
will being possible to enter any word as a top-level domain name. | :09:08. | :09:17. | |
Familiar endings could be joined by the likes of dot Pepsi and dot Nike. | :09:17. | :09:22. | |
The web regulator believes it has steered its 185,000 per application | :09:22. | :09:27. | |
will help discourage cyber squatters and opportunists. The | :09:27. | :09:31. |