15/03/2012 World Business Report


15/03/2012

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withdrawing their diplomats from Damascus. Time now for the money

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news with Sally and World Business Hello and a very warm welcome.

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These are the headlines. Trade ties with China might be strained but

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the United States relations with neighbouring South Korea have

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The trade ties with China might be strained but the United States'

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relations with neighbouring South Korea have rarely been stronger. A

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free trade agreement comes into force today which could create more

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than 300,000 jobs in South Korea, and boost economic growth over the

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next 10 years. But not everyone is happy with the deal. After six

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years of negotiating, ratifying and protesting, South Korea's free-

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trade agreement with the US has arrived. Starting today American

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products in Seoul should start to look a bit cheaper and in five

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years' time, 95% of trade should be tariff free. For lovers of the

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American Brands here, how will those savings be? While some

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companies were planning on enforcing more American products,

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only a quarter will pass on the full reductions to the customers.

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But for career the real value of the deal lies in access to

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customers in the US. South Korea's share in the US market has fallen,

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something the trade ministers said he hoped the deal would offset.

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Given the eurozone crisis, the timing of this deal today could not

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be any better. I have every confidence that the trade sector

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will pick up and the business community's of both career and the

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US will enjoy the benefits of this win-win agreement -- Almeria.

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not everybody sees things that way. Farmers have staged protests.

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Opposition parties have said they will try to block the deal if they

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win elections here this year. The agreement may be done but there is

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still plenty of negotiating to do at home. Another trade row seems

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close to conclusion. The US says it will lift import duties on some

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orange juice produced in Brazil. The Latin American country is the

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world's biggest producer - accounting for 85% of exports. But

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influential citrus farmers in Florida had claimed Brazil was

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hurting their industry by dumping artificially cheap juice on the

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market. And those of you wanting to challenge Amerca's interest rate

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strategy can so so via twitter. As part of a plan to make itself more

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accessible to the public - the Federal Reserve has joined the

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social network site - using the name @federalreserve. The Central

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Bank says it will use it to post press releases and speeches. A euro

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group of ministers gave their final approval to release hundred and

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EUR30 billion of money to Greece at the same time. The IMF changed its

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lending rules clearing the way for the IMF to approve a $28 billion

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loan to Greece today. They will now be able to pay the money back over

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four years instead of three. Marie Diron is a Senior economic adviser

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to the Ernst & Young Eurozone Forecast. It means Greece can get

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their hands on this much needed cash. Yes, this was the last hurdle

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and now they can go on with the plan agreed. How will it work on a

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practical level? It doesn't have that restructuring deadline hanging

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over it any more, but it does have regular dates where it has to prove

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itself to get the next set of money. The sense of extreme emergency we

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had a few weeks ago has gone. But the deadlines will come fast. Every

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quarter the improvement in the Greek situation will be at reviewed

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by the IMF and euro governments, to decide whether they want to release

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more money or not. In terms of the targets that have been set for it

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to prove its meeting on a three- monthly basis, are a realistic?

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will be difficult. In the best case scenario Greece will have a debt of

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120 % of GDP in ten years' time -- are a realistic. That seems

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ambitious. -- Are there any realistic. Maybe these figures need

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to be adjusted -- are they realistic. Is this firewall not

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very strong? It is possible. The Greek economy still faces deep

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recession. There is a 6% fall in GDP this year anticipated. Thank

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you for joining us. Fitch has become the third ratings agency to

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warn the UK could lose its triple A credit rating. Late yesterday it

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changed its outlook on the UK economy to negative just a week

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before UK finance minister George Osborne announces his annual budget.

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He's under pressure to reverse planned benefit cuts due to rising

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unemployment and shrinking national wealth. The Managing Director of

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Fitch Ratings had warned the UK's triple A rating could come under

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scrutiny just a few months ago. When you look at the Albert for the

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UK, you see the UK will become the most indebted of the current AAA

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rated governments with the sole exception of the United States --

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the outlook. Over time there is a prospect that it could come under

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scrutiny. Lufthansa is expected to announce a 13 million euro lost

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when it releases its final year results in a few hours. They are

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trying to curb their losses by selling off British Midland but the

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sale could take a long time to complete. So what could they do to

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return to profit? British Midland International, the EMI, made losses

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last year of 200 AD EUR5 million -- 2007 compared to a healthy profit

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in 2010 of EUR1.1 billion. BMI's losses have been largely to blame

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but Lufthansa was also hit by slack passenger demand in Europe and

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rising fuel costs. Many analysts say the airline should devote 2012

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to streamlining its rather flabby operations. For example Lufthansa

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uses no fewer than 20 different types of aircraft to fly its

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passengers. It is about having the right planes for the right routes,

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having the turnaround times right, getting the Labour levels and

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Labour terms to match some stage of the art 75 employees roughly to get

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the playing in the air -- date of the art. Lufthansa has agreed to

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sell BMI to the International Air Lines Group for EUR200 million --

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eight of the art. -- state-of-the- art. Virgin is lobbying the

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European Commission to try to block this deal. If this deal doesn't

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proceed it is quite likely Lufthansa will choose to close BMI

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and in circumstances like that competition authorities take a

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pretty lenient view. Lufthansa is ditching BMI as a bad purchase. The

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low-cost carrier it also has can possibly say it. We are seeing a

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fairly mixed picture in Asia today One of the stories that sticks out,

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