03/02/2012 World Business Report


03/02/2012

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from the sea. -- 240 people. Now it is time for World Business Report.

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Work in progress - the chief hails a modest recovery. Just how well

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Spain's banks come up with the extra billions? Japanese corporate

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profits get heat. Panasonic results. American manufacturing sector has

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been contributing to the improving picture in the world's largest

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economy. How much of a difference will it make to the unemployment

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rate which is at 8.5%. We went to visit and manufacturing training

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centre in New Jersey. The controls are all manual but you will find

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equipment that looks so different these days because most of them are

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a computer controlled. What used to take an hour can now be done with

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this in a fraction of the time. But it means learning a new set of

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skills. The manufacturing programme at this college aims to fill that

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skill gap and with factories hiring, they cannot turn out workers fast

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enough. The local companies we are affiliated with are almost begging

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us to get the young high-school students recruited into our

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programme. The programme was developed with help from several

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leading local manufacturers. At a time when more than 13 million

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Americans are unemployment, the project leader says the jobs are

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there for those with the right training. One of the big problems

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we have as manufacturers is there is not enough unskilled talent to

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run these machines are effectively. In that state of the Union, I laid

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out my blueprint. President Obama has been trumpeting the revival in

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manufacturing, hoping it would helping keep his job after the

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election. Since the recession ended, more than 300,000 jobs have been

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added by manufacturing. It will not be the key driver in the US. The

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service sector has been bigger. That will be determining whether a

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job growth is weak or strong. But the manufacturing sector is making

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a healthy contribution. For many Americans still looking for work,

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the job climate is not improving fast enough.

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The Spanish Prime Minister is set to approve plans to overhaul

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Spanish banks. 15 billion euros in capital need to be raised. Half the

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home loans could turn bad, it is predicted as unemployment rises and

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house prices fall. Mergers may be needed. Oh a professor of economics

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joins us. Why are those Spanish banks in so much trouble? And this

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is the follow-up from out construction model. There were lots

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of loans made and many have turned bad. The assets that are in the

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bank balance sheet have not been priced to market and the government

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is an forcing some sizable mark downs. Many property markets within

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Europe also suffered, why is Spain such a difficult case? There are

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too many reasons. One is the peculiarity of the Spanish banking

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system. They are unlike anywhere else. They work into real estate,

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there is no international base, they lent heavily to both

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developers and home owners. The second thing, we have a delayed...

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They struggled with the real estate. The Prime Minister has a job to do

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and he is introducing sweeping reforms? With such a weak economy,

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our latest GDP growth numbers were coming in at -1.2 %. Our

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unemployment number is a ready over 5.2 5 million. It paints a grim

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picture that requires radical reform it seems that the prime

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minister is ready to undertake them. But the banks receptive to the

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ideas and new capital requirements? The banks would rather not do what

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but they have no other choice. The credit needs to flow in Spain

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especially to small to medium-sized firms. And we are not seeing this

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happening. They're trying to clean the balance sheets in the hope that

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it will be restored. In Asia, Panasonic and looks set to

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round off at a dismal report for Japanese exporters. It comes at a

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time when the US dollar is reaching a record low against the Japanese

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currency? A lot of yen headaches for these

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companies. Sony took a hit from the yen. Panasonic is due to report its

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report after the Japanese markets closed in about one hour. He could

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report a staggering loss of more than $9 billion. There are a number

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of factors as to why it has done so badly. One of which is the strength

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of the yen. Profits we appreciated from overseas -- proffers were

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repatriated. There are other issues as well. It acquired Sanyo Electric

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so and there were losses they, it restructured its television

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division. There was also up production disruption. Investor

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Service downgraded the deck rating up Panasonic alongside Sony and

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kept them in a negative outlook for both companies. Mainly due from the

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fact they are suffering losses in their television division.

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Panasonic produces different products and it says it will cut

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17,000 jobs by March of this year. It brought Sanyo Electric last year

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which is known for its environment related businesses as well.

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Ironically, and despite all these problems, Panasonic shares are up

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today. How extraordinary!

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The world's biggest truck maker is expected to report a rise in

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Fanning. -- a rise in an innings. - - and earning.

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A modest rise in Russia for 2011. The group has benefited from higher

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The US central bank having declared interest rates will stay low for a

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considerable period, it hasn't done nothing to support the dollar - yen

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