Browse content similar to 27/04/2012. Check below for episodes and series from the same categories and more!
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country illegally. They have been ordered to leave. Now it is time | :00:05. | :00:15. | |
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Welcome to World Business Report. More pain for Spain. Standard and | :00:20. | :00:26. | |
Poor's cuts its credit rating by two notches. And Samsung's profits | :00:26. | :00:32. | |
rise over 80 %. It is all down to the sale of smart phones. The | :00:32. | :00:42. | |
:00:42. | :00:45. | ||
central bank in Japan eases Standard and Poor's has lowered | :00:45. | :00:52. | |
Spain's long-term credit rating from AAA to BBB +. They think the | :00:53. | :00:58. | |
economy will shrink by about 1.5 % and that banks will need more | :00:58. | :01:04. | |
capital. What does this mean for Spain? I guess this is a kick in | :01:04. | :01:08. | |
the teeth for the Prime Minister who is working hard to turn things | :01:08. | :01:12. | |
round. He is not finding it easy, is he? | :01:12. | :01:18. | |
That is right. There is a lack of confidence from the markets. | :01:18. | :01:26. | |
Borrowing rates on Spanish dead are creeping up. -- Spanish debt. A lot | :01:26. | :01:35. | |
of bad debt. The bottom fell out of the market in 2000 and it. A lot of | :01:35. | :01:45. | |
:01:45. | :01:46. | ||
banks in Spain were left with bad property assets. -- 2008. And there | :01:46. | :01:52. | |
are reports that next year will see negative growth. It is not a good | :01:52. | :01:55. | |
picture being painted by Standard and Poor's but not a massive | :01:55. | :02:01. | |
surprise. This is what we have seen from the market. How is that | :02:01. | :02:06. | |
manifesting itself in Spain? The messages, when you compare it to | :02:06. | :02:12. | |
Italy, at least there is progress in Italy. For Spain, we are hearing | :02:12. | :02:16. | |
that it will fall further before going back up. What is the | :02:16. | :02:23. | |
perception on the street? The normal people in Spain think | :02:23. | :02:29. | |
things look bad. There is a lot of austerity in the new budget. Huge | :02:29. | :02:34. | |
cuts to health, education, areas of government that will be | :02:34. | :02:40. | |
controversial. Unemployment is a huge problem. It is expected to | :02:40. | :02:46. | |
rise to at least 25 %. It looks very bad for average people. For | :02:46. | :02:51. | |
the Government, they are trying desperately to send out messages of | :02:51. | :02:55. | |
confidence. They have got this new budget. They have got tough | :02:55. | :02:59. | |
austerity in place. They want to hit their targets for this year. | :02:59. | :03:03. | |
Standard and Poor's have backed up the lack of confidence. Negative | :03:03. | :03:08. | |
growth in the economy means you will not hit the targets. They were | :03:08. | :03:11. | |
not at the projections for this year or next year. | :03:11. | :03:17. | |
Thank you. Samsung made $4.5 billion in | :03:17. | :03:21. | |
profits last year. The electronics giant sold about 90 million mobile | :03:21. | :03:30. | |
phones. It beat both Apple and Nokia. We take a look at the | :03:30. | :03:34. | |
changing image of the company. Some things cannot be expressed with a | :03:34. | :03:39. | |
text message. At the headquarters of Samsung in South Korea, there is | :03:39. | :03:45. | |
always room for a bit of tradition, even when you are battling for the | :03:45. | :03:49. | |
future of the global electronics market. Samsung employees are known | :03:49. | :03:53. | |
as dedicated and numerous. The company has known for decades how | :03:53. | :03:58. | |
to attract them, with extensive benefits, and a strict corporate | :03:58. | :04:02. | |
culture. Samsung is used to competing in fast-paced markets. | :04:03. | :04:07. | |
The company built its name in microchips. With a reputation for | :04:07. | :04:11. | |
being more of a fast follower than an original creator of mobile | :04:11. | :04:18. | |
devices, how has Samsung are written to such superpower status? | :04:18. | :04:28. | |
:04:28. | :04:31. | ||
We are not following any more. That is a strange word. All of the good | :04:31. | :04:35. | |
service and content cannot be realised without great hardware. We | :04:35. | :04:40. | |
are very connected. We are bringing new innovation. When I say | :04:40. | :04:46. | |
enervation, not just hardware but total solutions. -- innovation. | :04:46. | :04:55. | |
It's mobile devices have become ever more aspirational. This is a | :04:56. | :05:02. | |
cross between a phone and the Tablet. As the matter will -- the | :05:02. | :05:07. | |
battle increases, the focus is on launching and guarding the next new | :05:07. | :05:15. | |
weapon. Security is very tight. There is an electronic ID system. | :05:15. | :05:20. | |
There are security gates and every building. Few things are more | :05:20. | :05:25. | |
protected than this. This is the new smart phone. It will come out | :05:25. | :05:31. | |
in less than one week. It is so well protected, it is being | :05:31. | :05:34. | |
accompanied by 10 security guards on its way to the launch in London. | :05:34. | :05:39. | |
For those curious about the future, the answer could lie inside the | :05:39. | :05:46. | |
sport. I am not allowed to look inside. | :05:46. | :05:52. | |
In another attempt to boost the economy, the bank in Japan has said | :05:52. | :06:01. | |
it will increase its asset purchase program. Let's get more analysis. | :06:01. | :06:06. | |
What is the bank up to? They are taking steps to ease monetary | :06:06. | :06:10. | |
policy. They are easing the purchase of government bonds by | :06:10. | :06:16. | |
about 10 trillion Yen, that is around $124 billion. The central | :06:16. | :06:21. | |
bank has reduced by five trillion Yen a pool of funds it has been set | :06:21. | :06:25. | |
aside for fixed-rate market manoeuvres. This shows how | :06:25. | :06:33. | |
determined the central bank is to try and hit its 1% inflation target. | :06:33. | :06:39. | |
This is why the bank maintained its key policy rate at a range of 0.2 %. | :06:39. | :06:43. | |
That was by a unanimous vote. There was other data that showed the | :06:43. | :06:47. | |
economy was stalling to some extent today. Industrial production rose | :06:47. | :06:53. | |
by about 1% in March. That is the biggest rise in about three months. | :06:53. | :06:58. | |
It is lower than expected. The rise was fuelled by a reconstruction of | :06:59. | :07:06. | |
the country's tsunami-hit areas. The growth over the next few months | :07:06. | :07:16. | |
:07:16. | :07:16. | ||
looks fairly grim. Manufacturers' - - manufacturers expect growth to | :07:16. | :07:22. | |
fall in May. That is as the benefits of the reconstruction wear | :07:22. | :07:29. | |
off. Barclays Bank is facing a serious shareholder vote at its | :07:29. | :07:34. | |
annual meeting today. It is thought that nearly 33 % of investors will | :07:34. | :07:39. | |
vote against the executive pay plan. Barclays Bank have been under fire | :07:39. | :07:44. | |
by shareholders. They gave details of the pay that top executives were | :07:44. | :07:50. | |
receiving. Barclays is a major global player. It's pay for the top | :07:50. | :07:57. | |
bosses has proved highly controversial among the British | :07:57. | :08:07. | |
:08:07. | :08:11. | ||
Because a bank contains mainly financial assets, it is very easy | :08:11. | :08:18. | |
to see what the financial performances. -- performance is. It | :08:18. | :08:23. | |
cannot be much clearer than in the case of a bank like this that | :08:23. | :08:28. | |
senior management are taking large bonuses without a performance. | :08:28. | :08:33. | |
Diamond has admitted that returns to investors were unacceptable. He | :08:33. | :08:38. | |
has tried to take the sting out of this rebellion by agreeing to | :08:38. | :08:43. | |
tougher conditions on his �4 million bonus. Barclays have said | :08:43. | :08:49. | |
that they recognise the power of opinion. Investors in the US have | :08:49. | :08:53. | |
rejected the multi-million pound pay award for another boss. Large | :08:53. | :09:00. | |
shareholders are starting to flex their muscles. Barclays posted | :09:00. | :09:03. | |
better-than-expected first-quarter results yesterday. It is hoping the | :09:03. | :09:11. | |
figures will help to quell the opposition. Its earnings from its | :09:11. | :09:20. | |
equities business argued in the first quarter. Because of the | :09:20. | :09:26. | |
Environment -- are good. Because of the Environment, it is difficult. | :09:26. | :09:30. | |
It will continue to trade at a discount. That discount should | :09:30. | :09:37. | |
narrow. There is no danger that the pay plan will be dejected today. | :09:37. | :09:41. | |
Maybe in the teeth of some significant opposition. A warning | :09:41. | :09:48. | |
shot, perhaps, for other big banks. Let's take a look at the markets. | :09:48. | :09:54. |