13/01/2012 World Business Report


13/01/2012

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She is Europe and's most popular monarch.

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Time for financial news with World Business Report. Welcome to World

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Business Report. Borrowing costs plunge for Spain and Italy ahead of

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-- the head of the ECB says policies are paying off.

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Strone debt is that in market sentiment in a share.

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The first of the US banks after a growing quota.

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The President of the European Central Bank might be forgiven for

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feeling relieved and pleased with himself. Spain was able to sell

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almost 10 billion euros of bonds. Italy sold 12 billion euros of

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short-term debt at an interest rate of 2.7%. That is less than half of

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the six % it had to pay in December. That is part of the ECB's plan to

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pump money into banks. The policy measures are providing a

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substantial contribution to the banks. There by supporting

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financial conditions and confidence. How is it going down in the Asian

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markets? Very closely watched isn't it? Asian markets are reacting

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positively to the news out of Europe. Japan's rows over 1% at

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this at our. It is raised by shares of exporters. Investors are much

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nervous over the debt crisis and potential impact on demand for

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goods made in Asia. EU wrote his steady, holding. $1.28 it is

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stabilising at 98. Four to five. Oil prices are hovering above $99

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and -- a barrel. That has pushed up commodities. Monitoring shares in

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Taiwan ahead of the presidential election which will determine its

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relations with China. Something of a bigger test as Italy sells off

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more than 4 billion euros of long- term bonds. While there is no long-

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term solution to the eurozone crisis. Do you think this is a

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turning point in the eurozone crisis? Can we be confident that

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the markets will be there this? With a change of leadership at the

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ECB we are entering a phase where we will act much closer to what we

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have been doing. If interest rates have come down and the measures

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have been put in place. That will help the market. In terms of

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sentiment, what is also happening is so much bad news into the market.

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I think the market is giving the benefit of the doubt. We should not

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get complacent. We should be careful, there will be volatility.

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We want to make sure we have a well-balanced portfolio. There is

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still a long way to go isn't there? Him refinancing terms, Italy has to

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raise $90 billion by the end of April. It is meaningful, because

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from a sentiment stand. It is a big shift. But financing in 2012 is

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very large. -- we will need close to racially dollars for the will

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put together. In terms of Europe, there is a concentration in the

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first quarter. We have had some good news, but let's be vigilant

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because there is more to come. I am watching how progress is made in

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terms of budgets and developments in order to meet the targets. Also

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understanding of what leaders are thinking of in terms of growth. The

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test levels are still high, debt levels with no growth are a

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difficult to sustain. If we saw in Greece, Italy and Spain, widespread

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market reform, is very potential to unleash strong economic growth?

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Could be end up with a positive story in five or ten years' time?

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In five or ten years' time yes. The key thing is to understand the

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steps. If we have sharp reforms, we have shut unemployment and cost

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adjustments. Adjustments need to happen in Europe because the

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currency by so strong. There is still a lot to do. That would be a

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good step in the right direction. Thank you. It has been a grim

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quarter for Wall Street's financial giants. They said to date we would

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get an idea of how about. The largest bank in the US will report

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a drop in profit of around 17%. Rivals will follow what their

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results next week. Some are predicting the worst figures in a

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decade. Our correspondent has more. JP Morgan Chase is America's

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biggest bank in power. The industry is waiting to see if the money it

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makes from lending to business has gone up in what was otherwise

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considered an ugly environment for banks. What we will be looking for

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it is there that they can produce growth. And also whether they can

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bring expenses down and how well their investor -- investment

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banking and Revenue has weathered the crisis. Another challenge is

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closer to home. New rules have gone into effect that limit the fees on

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debit card transactions. To make up for lost revenue, banks are

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tightening their belts. You can jump a lot about the health of the

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Bank industry, by how well its staff are doing. Spare a thought

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for the staff, since the recession many have lost their jobs. More

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lay-offs are expected this year. This meant was that go into in 2009.

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He has not given up hoping returning to the profession he

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laughs. With the industry shrinking, it is a challenge. Things are

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changing quickly, I have to educate myself as much as possible.

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Resources a very costly. That is a challenge. America's top banks are

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expected to have had a miserable finish to 2011. The European debt

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crisis is to blame for dealing profits. A look at what else is

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happening in the business world. Talks continue in Athens between

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Greece and private creditors. Greece needs to get private lenders

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to agree on a 50 % debt write-off. The finance minister said he was

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confident after meeting on Thursday. It has been warned that key issues

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remain unresolved and that time is running out.

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Nigeria's led the unions will hold more talks with the President

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tomorrow to resolve a dispute over soaring fuel prices. The price of

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petrol has doubled since subsidies were removed. Correct it --

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protests were sparked up and down the country.

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For Apple says it is suspending sales of the iPod fought in Beijing

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and Shanghai to ensure the safety of customers and employees. Violent

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