Browse content similar to 16/05/2012. Check below for episodes and series from the same categories and more!
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The headlines: The price of democracy with Greek membership of | :00:22. | :00:27. | |
the eurozone hangs in the balance. Widespread reports of the FBI | :00:27. | :00:36. | |
launching an inquiry into $2 billion loss at JP Morgan. Beat | :00:36. | :00:42. | |
India in intervention by the bank in the currency market. The markets | :00:42. | :00:52. | |
:00:52. | :00:54. | ||
get a boost. Another election is on the cards for Greece after nine | :00:54. | :00:58. | |
days of failed Nicosia Asians to form government. The leading | :00:58. | :01:03. | |
parties will now hold talk for a caretaker government before a fresh | :01:03. | :01:08. | |
election. It means further uncertainty for people and | :01:08. | :01:18. | |
:01:18. | :01:19. | ||
investors. It may determine the fate of the eurozone. The election | :01:19. | :01:24. | |
will take place in the middle of June. It's a critical month for the | :01:24. | :01:30. | |
eurozone? And salute the point We see Spanish bonds rising to the | :01:30. | :01:40. | |
:01:40. | :01:41. | ||
critical level of six %. We see stress been peripheral markets. We | :01:41. | :01:46. | |
also see the anti- bail-out party support gathering momentum. That | :01:46. | :01:54. | |
may in effect spell the end of the Greek membership to the eurozone. | :01:54. | :02:00. | |
Can the authorities prevent this contagion? Exposure to Greece is | :02:00. | :02:06. | |
manageable but not easy. The big thing is, can may prevent the | :02:06. | :02:11. | |
stress going throughout the eurozone especially with Spain. | :02:11. | :02:18. | |
the big picture, focusing on Greece, the anti- bail-out parties, some | :02:18. | :02:23. | |
argue they will vote on whether they will stay in the eurozone. | :02:23. | :02:28. | |
Those parties, if they were to get into power, what do they hope to | :02:28. | :02:34. | |
achieve? They do not want to exit the eurozone. They want some middle | :02:34. | :02:40. | |
ground? Are think so. They will bet that the authorities do not want to | :02:40. | :02:46. | |
see Greece exit the eurozone and potential chaos that would him by. | :02:47. | :02:51. | |
They want to remain but see the softening of the bail-out | :02:51. | :02:57. | |
conditions. The Incas hardly dried on the bail-out deal. These | :02:57. | :03:04. | |
tortuous negotiations to lead to the stage mean that they would not | :03:04. | :03:11. | |
ease out easily. They were no sign after the meeting between Angela | :03:11. | :03:16. | |
Merkel and Francois Hollande to even broker us off Dean of these | :03:16. | :03:23. | |
measures. They were both together on this. They are concerned that if | :03:23. | :03:30. | |
they soften stand on Greece, that may throw up a can of worms in | :03:30. | :03:35. | |
terms of a contagion within the eurozone. It may set a bad example. | :03:35. | :03:40. | |
They do not want to do that. They want Greece to take their medicine | :03:40. | :03:45. | |
to remain in the eurozone. Brief fling, what do you think will | :03:45. | :03:51. | |
happen? We will have another election. After that, where will we | :03:51. | :03:57. | |
be? Will they exit the eurozone? Potentially indications are that | :03:57. | :04:01. | |
the anti- bail-out parties may gather Waltzer port. If they do | :04:01. | :04:08. | |
manage to put together a coalition, I think the risk is that we may see | :04:08. | :04:14. | |
authorities cut off the current bail-out and not lend any money to | :04:14. | :04:18. | |
the Greek banks and the banking system would collapse forcing an | :04:18. | :04:24. | |
exit to the eurozone meaning they would need to prevent that | :04:24. | :04:32. | |
contagion from spreading. Needless to say we are on the case here with | :04:32. | :04:36. | |
all of the details. On Tuesday there was widespread reports that | :04:36. | :04:43. | |
the FBI will inquire JP Morgan following revelations they suffered | :04:43. | :04:49. | |
their $2 billion blunder. They have not said it yet but it's widely | :04:49. | :04:55. | |
reported that the FBI has begun investigating the huge loss at JP | :04:55. | :05:01. | |
Morgan. That is significant because the at the Ida's criminal | :05:01. | :05:07. | |
investigations. The first hint that some rumbling may be involved. It | :05:07. | :05:14. | |
may be just a routine precaution. All this came hours after the boss | :05:14. | :05:24. | |
of the bank faced shareholders. It was not a stormy affair. He | :05:24. | :05:30. | |
apologised profusely and saw off a motion that may have challenged his | :05:30. | :05:36. | |
authority by splitting the role of chairman and chief executive. The | :05:36. | :05:42. | |
biggest container ship group will report a slide in earnings. The | :05:42. | :05:48. | |
profits have halved in the trading year. The downturn means fewer | :05:48. | :05:54. | |
people are buying goods and shipping them around the world. Too | :05:54. | :05:58. | |
many ships means the Giants of the shipping world have taken on a | :05:58. | :06:04. | |
price war between Asia and Europe. Possibly the worst timing as fuel | :06:04. | :06:14. | |
cost is increasing and the global economy is weakening. These ships a | :06:14. | :06:21. | |
slow trying to save fuel. Here at this exchange in London, the index | :06:21. | :06:27. | |
which measures the cost of shipping, coal, iron ore and rain is down to | :06:28. | :06:34. | |
its lowest level in 25 years. With more ships coming, experts say the | :06:34. | :06:39. | |
rates that set to stay low meaning staging a rebound will be difficult | :06:39. | :06:46. | |
for this industry. No matter how many container ships try to | :06:46. | :06:50. | |
diversify and cut costs, almost all of them have awarded more ships to | :06:50. | :06:55. | |
be built before this financial crisis. They are now expanding | :06:55. | :07:02. | |
their fleets but with less cargo. It will be a very long slog. Its | :07:02. | :07:06. | |
overcapacity. It's across the industry. There are many ships | :07:06. | :07:13. | |
coming and that is slowing down. In the next two years it's a big. To | :07:13. | :07:19. | |
see if many will make it or not and many companies are in trouble with | :07:19. | :07:25. | |
bankruptcy is forecast. It's a cyclical industry. This boom and | :07:25. | :07:31. | |
bust has long been a bugbear. It's a question of the right decisions | :07:31. | :07:38. | |
at the right time and how you operate through the bad times. | :07:38. | :07:41. | |
supply of ships in excess it will take a long time for there is sheet | :07:41. | :07:48. | |
in lines to close the line between supply and demand. Many may put | :07:48. | :07:54. | |
their prices up by $100 per container. But it needs to work in | :07:55. | :08:00. | |
the favour of the companies and this will be very difficult. The | :08:00. | :08:03. | |
Indian Central Bank has intervened in the currency to prop up the | :08:03. | :08:12. | |
rupee. Explain what has happened here. Why has the rupee been | :08:12. | :08:21. | |
propped up? According to the dealers, this intervention was | :08:21. | :08:31. | |
:08:31. | :08:32. | ||
conducted by the state run bank to the tune of $500,000. This has | :08:32. | :08:40. | |
pushed the rupee higher. There's no doubt about her Central Bank being | :08:40. | :08:47. | |
able to defend the rupee as the economy is impacted by the were | :08:47. | :08:56. | |
some global environment. Also the widening budget deficit. The bank | :08:56. | :09:02. | |
is wasting resources in putting up -- propping up this currency | :09:02. | :09:08. | |
because it may go to the level of 55 against the US dollar which | :09:08. | :09:18. | |
favours the exporters. Some people say the Reserve Bank as close to | :09:18. | :09:23. | |
$300 billion in reserves. They also use other measures to convert | :09:23. | :09:30. | |
foreign currency to buy bonds to keep the currency from the | :09:30. | :09:40. | |
:09:40. | :09:41. |