Browse content similar to 19/04/2012. Check below for episodes and series from the same categories and more!
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in the fight against terrorism. Now it is time for World Business | :00:05. | :00:15. | |
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Report. Hello, and a very warm welcome. The | :00:20. | :00:23. | |
headlines: It market nerves ahead of a ten-year bond auction in Spain, | :00:23. | :00:27. | |
seen as a vital test of investor confidence. | :00:27. | :00:32. | |
And here in Asia, a sharp rebound in Japan's exports, thanks to a | :00:32. | :00:36. | |
surge in car shipments. Plus, the numbers keep getting | :00:36. | :00:40. | |
worse for Nokia, as it is left further behind by the smartphone | :00:40. | :00:50. | |
:00:50. | :00:50. | ||
boom. Good to have the reverse. Will | :00:50. | :00:55. | |
Spain become the next eurozone country to be forced into and the | :00:55. | :00:59. | |
EU-IMF bail out? For some, the question is not if, but when. | :00:59. | :01:03. | |
Increasing market nerves about Spain's ability to control its | :01:03. | :01:06. | |
finances amid a worsening economy pushed the country's ten-year | :01:06. | :01:11. | |
borrowing costs about 6% this week, approaching the levels that forced | :01:11. | :01:17. | |
Portugal, Greece and Ireland to seek aid.... Some of it in ten-year | :01:17. | :01:21. | |
bonds which are seen as a key test of investor confidence. To tell us | :01:21. | :01:28. | |
how this is likely to go, I enjoyed by Bill blame. Today is quite | :01:28. | :01:32. | |
critical, isn't it? In terms of measuring the sentiment about | :01:32. | :01:37. | |
Spain? Today's auction is fairly small for Spain, but I think it | :01:37. | :01:40. | |
will give us a good indication of what is going to happen long time. | :01:40. | :01:45. | |
I am afraid that if this goes on and on and on, the problem for | :01:45. | :01:48. | |
Spain will be the banks. The banks have invested so much in the | :01:48. | :01:53. | |
property bubble, and they need to be recapitalised. For Spain to | :01:53. | :01:57. | |
recapitalis recapitalis need to find more money, which I suspect, | :01:57. | :02:01. | |
long-term, means they go to the drone mac bail out fund for that. | :02:01. | :02:07. | |
But the trigger for that could be knocked down the road. Some are | :02:07. | :02:11. | |
saying that Spain might not necessarily need a bail out in the | :02:11. | :02:14. | |
terms of Greece, Ireland, Portugal in the near future, but they may do | :02:14. | :02:18. | |
something to rescue the Spanish banks? Absolutely, I think that is | :02:18. | :02:23. | |
the most likely thing. If Spain does resort to the bail out fund, | :02:23. | :02:26. | |
it would be something specifically linked to the banks which would | :02:26. | :02:30. | |
give the illusion that there is nothing wrong with Spain itself. | :02:30. | :02:33. | |
terms of the longer term refinancing operation by the | :02:33. | :02:38. | |
European Central Bank, that was be, the second round of that was in | :02:38. | :02:42. | |
February, there was a huge take-up of that. Will that help today at | :02:42. | :02:47. | |
all, or is the impact of VAT fading? No, I'm afraid the literal | :02:47. | :02:53. | |
effect is very much done and dusted. When the first one announced it had | :02:53. | :02:56. | |
an aspect of shock and awe, and that gave the opportunity for | :02:56. | :03:00. | |
investors to look and see, well, bombs were going to rise on the | :03:00. | :03:04. | |
back of that. They all piled into that rally and now it is very much | :03:04. | :03:07. | |
over. I think if they did a third on the effect would be very much | :03:07. | :03:11. | |
less. Also today, France is looking to raise of what on the bond | :03:11. | :03:16. | |
markets. A significant amount, actually. For investors it is not | :03:16. | :03:20. | |
really clear what is a head for France be there? I think the French | :03:20. | :03:23. | |
auction today is probably the more interesting one. On the weekend we | :03:23. | :03:27. | |
have the first round of the French presidential election, and the | :03:27. | :03:30. | |
markets are beginning to get a bit nervous about what a change in the | :03:30. | :03:34. | |
French government is going to mean. I suspect that all those French | :03:34. | :03:38. | |
rates have started to edge up in the last few days, which will | :03:38. | :03:42. | |
probably make today's auction quite attractive, we are likely to see | :03:42. | :03:48. | |
French government bond yields rise in the next couple of weeks. | :03:48. | :03:52. | |
Possibly even around today's auction. As people get more and | :03:52. | :03:55. | |
more concerned about the new French government, and the end of the | :03:55. | :03:59. | |
Sarkozy era, we will see French bond yields rise, and that reflects | :03:59. | :04:03. | |
fear not just about the future of Europe when you do not have such a | :04:03. | :04:06. | |
close link between Germany and France, but also where France is | :04:06. | :04:09. | |
going to go in trying to make the structural adjustments that never | :04:09. | :04:16. | |
happened under Sarkozy. Thank you for your perspective on | :04:16. | :04:20. | |
that. We will talk some more about the French elections as well to | :04:20. | :04:22. | |
date in the newspaper reviews, because it is of course the big | :04:22. | :04:27. | |
story in the French press. March saw the first rise in | :04:27. | :04:34. | |
Japanese exports in six months. Tell us more about Japan? This is | :04:34. | :04:39. | |
good news, isn't it? Indeed, and it is in fact the | :04:39. | :04:44. | |
strongest growth in over a year. Exports rose nearly 6% in the month | :04:44. | :04:48. | |
of March from that Lovell's one year ago, which is much stronger | :04:48. | :04:53. | |
than what economists were expecting. -- that levels. It is largely due | :04:53. | :04:59. | |
to a surge in car shipments, which rose 1/3 in March. Exporters also | :04:59. | :05:02. | |
benefited from the Japanese yen, which has been weakening quite | :05:02. | :05:06. | |
significantly in recent months. The Japanese yen actually jumped soon | :05:06. | :05:10. | |
after the trade data came out, but it is still trading at 81 against | :05:10. | :05:16. | |
the US dollar, which is much weaker compared to the 77 or 78 which we | :05:16. | :05:20. | |
saw for nearly a year after the earthquake. I should also mention | :05:20. | :05:24. | |
imports, which rose nearly 10% in the Mont of March. That is because | :05:25. | :05:29. | |
Japan is now having to import a lot more liquified natural gas and | :05:29. | :05:33. | |
other fuels in order to supply electricity. Of course, almost all | :05:34. | :05:37. | |
of its nuclear power plants have been shut in the wake of Fukushima. | :05:38. | :05:44. | |
The government has been negotiating with local bomb-makers, as well as | :05:44. | :05:52. | |
the government, to restart nuclear power plants. -- local lawmakers. | :05:52. | :05:57. | |
Nokia, for years the world's leader in mobile phone handsets, brings | :05:57. | :05:59. | |
out its first quarter results for 2012 later. They are expected to | :05:59. | :06:04. | |
bring more bad news. The company issued a profits fall last week and | :06:04. | :06:08. | |
just a few days ago had its credit rating cut to just a notch above | :06:08. | :06:12. | |
junk status. It's not phones had been selling poorly compared to the | :06:12. | :06:16. | |
iPhone and Android, and it is starting to lose the market share | :06:16. | :06:24. | |
I am so excited and proud. So set Nokia's boss as it launched its | :06:24. | :06:29. | |
latest smartphone. But Nokia sold only 2 million smartphone handsets | :06:29. | :06:33. | |
over the past six months, much lower than the forecast 3 million. | :06:33. | :06:39. | |
In the West, Nokia has a market share of any 1%. The crucial | :06:39. | :06:43. | |
customers for not yet to win over other mobile operators. In Europe | :06:43. | :06:47. | |
and America, they sold two-thirds of all the handsets produced, in | :06:47. | :06:51. | |
their shops - along with contracts. The operators had been looking | :06:51. | :06:54. | |
forward to Nokia bringing out its new smartphone, because they | :06:54. | :06:57. | |
thought that it would reduce the dominance in the market of the key | :06:57. | :07:04. | |
players. That is appalled's iPhone, and Samsung's Android. | :07:04. | :07:07. | |
Unfortunately, too few people are walking into the shops and asking | :07:07. | :07:15. | |
to look at a Nokia smartphone. nutshell, they are too expensive. | :07:15. | :07:20. | |
It is just too rich for the competitive pricing market, | :07:20. | :07:25. | |
especially in the US. Unless your brand happens to be apple mac. | :07:25. | :07:28. | |
some years, Nokia has dominated the low end of the market, selling | :07:28. | :07:34. | |
simple phones. But cheaper handsets, especially Chinese ones, hitting | :07:34. | :07:40. | |
its sales. So Nokia is looking to develop a middle ground. They are | :07:40. | :07:46. | |
pushing their own operating system. A range of devices that are not as | :07:46. | :07:50. | |
expensive as the low-cost smartphones, even Android have not | :07:50. | :07:57. | |
got an down to this price. Yet, but they offer an element of smarts. | :07:57. | :08:01. | |
But Nokia's handset sales have fallen 30% in the last year. They | :08:01. | :08:06. | |
are hoping the slim segment of the market will make good on that loss. | :08:06. | :08:12. | |
It was awesome! Nokia executives are desperate that this year, high- | :08:12. | :08:15. | |
margin smartphones grab the attention of the all-important | :08:15. | :08:21. | |
American market. Did you hear what he had to say | :08:21. | :08:25. | |
they? It was quite loud. Let's take a look at some other business | :08:25. | :08:29. | |
headlines today. Shares in Eade Bay jumped more than 8% in after-hours | :08:29. | :08:32. | |
trading after better-than-expected first-quarter results from the | :08:32. | :08:42. | |
:08:42. | :08:56. | ||
online auction giant. -- the day. - - eBay. And... Yum Brands is | :08:56. | :09:02. | |
continuing to cash in on a growing middle class in China and India. It | :09:02. | :09:07. | |
has helped shares jumped 45% in the last year. And Germany's top | :09:07. | :09:10. | |
economic think tanks give their growth forecasts later. They are | :09:10. | :09:13. | |
likely to underline the growing gulf between struggling southern | :09:13. | :09:18. | |
Europe and the region's biggest economy. According to Dow-Jones, | :09:18. | :09:21. | |
they will upgrade their estimates for Germany 2.9 % growth for this | :09:21. | :09:28. | |
year, and then 2% next year. Markets today, treading water in | :09:28. | :09:33. | |
Asia ahead of that auction of bonds in Spain and France. You can see | :09:33. | :09:40. | |
the currencies as well. The yen, as mentioned earlier, has been gaining | :09:40. | :09:44. |