Browse content similar to 17/05/2012. Check below for episodes and series from the same categories and more!
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popular support. Those are the latest headlines. Can | :00:05. | :00:13. | |
live for the money news in World Business Report. -- time now for | :00:13. | :00:22. | |
some to thank you for joining us. Investors withdraw hundreds of | :00:22. | :00:26. | |
millions of euros amid fears Greece may pull out of the eurozone. 100 | :00:26. | :00:31. | |
billion of reasons to be cheerful. Facebook sets the price for the | :00:31. | :00:39. | |
largest ever sale Show on the Internet. -- share sale. | :00:39. | :00:44. | |
In times of crisis people like to hold on to large cash an increase | :00:44. | :00:49. | |
speculation Greek money could switch from the euro means an | :00:49. | :00:53. | |
increasing and as people are guarding a euros. Between 700 | :00:54. | :00:56. | |
million and 1.2 billion euros has been withdrawn from Greek banks in | :00:56. | :01:00. | |
the ten days since inconclusive parliamentary elections. That is | :01:00. | :01:06. | |
still less than 1% of the total deposits held by banks in Greece. | :01:06. | :01:10. | |
News that the European Central Bank has stopped lending to some Greek | :01:10. | :01:18. | |
banks has fuelled concerns. We now speak to a chief market analyst. | :01:18. | :01:23. | |
This is not a run on with the banks? Is it just National because | :01:24. | :01:33. | |
:01:34. | :01:44. | ||
of all of the uncertainty surrounding it Greece -- natural -- | :01:44. | :01:51. | |
surrounding Greece. There has been uncertainty over how much money has | :01:51. | :01:55. | |
been withdrawn. Of course there are such large issues there that are | :01:55. | :02:01. | |
not going away. If anything, the largest issue is that they still | :02:01. | :02:06. | |
cannot agree on a coalition. We are now waiting on another election to | :02:06. | :02:11. | |
guess a government in place. This is causing massive uncertainty for | :02:11. | :02:19. | |
everybody. -- to get. Given we are not going to see a government own | :02:19. | :02:25. | |
place until the 19th of Judy you expect the uncertainty to continue? | :02:25. | :02:35. | |
:02:35. | :02:39. | ||
-- in a place -- 19th June -- in place. It is likely we will | :02:39. | :02:43. | |
continue to see stories like this while people wait to see what is | :02:43. | :02:48. | |
going to happen. Even when we get a government in place we still could | :02:48. | :02:54. | |
see Greece coming out of the euro. In the meantime we hear the | :02:54. | :02:57. | |
European Central Bank has decided to withdraw funding from some Greek | :02:57. | :03:04. | |
banks. We do not know the details but essentially it is because the | :03:04. | :03:09. | |
bank has deemed them to be insolvent. That is worrying. When | :03:09. | :03:12. | |
you look at the banks there, whether they are technically | :03:12. | :03:16. | |
insolvent or not, we have been saying that the country is in | :03:16. | :03:24. | |
Salford. If the banks are and softened -- insolvent that is | :03:24. | :03:31. | |
neither here nor there -- insolvent. So there are large issues with this. | :03:31. | :03:35. | |
I think the thing is that we need some resolution, something concrete | :03:35. | :03:39. | |
in place in terms of the government for some sense of normality. Thank | :03:39. | :03:46. | |
you. To the other side of the world, a | :03:46. | :03:52. | |
different story. Japan is growing faster than expected. Wealth grew | :03:52. | :03:56. | |
by 1% in the first three months of the year and much of that was due | :03:56. | :04:00. | |
to investment to rebuild areas in the North East devastated by last | :04:00. | :04:06. | |
year's tsunami. Japanese people are also spending and firms continue to | :04:06. | :04:13. | |
sell their goods overseas. Let's cross live to out reporter in Tokyo. | :04:14. | :04:21. | |
So some good news for Japan today? Yes. These growth figures are | :04:21. | :04:29. | |
better than expected. They had growth of 4.1% and analysts had | :04:29. | :04:34. | |
expected 3.5%. That is the third straight quarter of growth for the | :04:34. | :04:41. | |
Japanese economy. That is a very different story from Europe. Public | :04:41. | :04:48. | |
investment rose by 5.4%. Exports were also up by 2.4%. Consumer | :04:48. | :04:58. | |
:04:58. | :04:58. | ||
spending was also up. It is the rebuilding in the north-east of the | :04:58. | :05:05. | |
country in the area affected by the tsunami last year. The outlook for | :05:05. | :05:11. | |
the exports is pretty grim. Because of the turmoil in Europe, that is. | :05:11. | :05:16. | |
Are we so getting a sense that companies are being very cautious | :05:16. | :05:24. | |
about capital investment? Certainly companies are being cautious | :05:24. | :05:28. | |
because they are so affected. The large exporters and companies are | :05:28. | :05:32. | |
affected by their export markets. They are also affected by the | :05:32. | :05:36. | |
strength of the Japanese yen, which is still strong although it has | :05:36. | :05:46. | |
come offer of record highs. With forecasts of energy shortages in | :05:46. | :05:51. | |
the summer and price rises on electricity already being felt by | :05:51. | :05:55. | |
corporate customers, soon to be felt probably by domestic consumers | :05:55. | :06:01. | |
as well, that could all be a factor that could mean this road we have | :06:01. | :06:06. | |
seen in this quarter may not last. I was just going to ask some of the | :06:06. | :06:13. | |
analyst I have been talking too, some of them are more optimistic. | :06:13. | :06:19. | |
Are you getting it is a mixed feeling? It is very much a mixed | :06:19. | :06:23. | |
feeling first of the effects of the rebuilding after the tsunami is | :06:23. | :06:27. | |
going to be felt in Japan for a long summer. A large area was badly | :06:27. | :06:33. | |
damaged and it will take a long time to rebuild -- a long time. | :06:34. | :06:42. | |
When you talk to analysts they say Japan is not yet feeling the | :06:42. | :06:50. | |
effects of nuclear reactors being off-line. So far we have not seen | :06:50. | :06:54. | |
much manufacturing leaving the country and job losses because of | :06:54. | :06:58. | |
that and domestic electricity consumers have not felt the pain of | :06:58. | :07:05. | |
price rises. That's all still to come and it will come down the line | :07:05. | :07:12. | |
for some thank you. Facebook is set to announce the | :07:12. | :07:19. | |
price of its share sale later. Admittedly it was forecast to reach | :07:19. | :07:22. | |
up to $11 billion but a large amount of private shareholders had | :07:22. | :07:27. | |
decided to raise the amount of stock by one quarter. Shares are | :07:27. | :07:32. | |
due to start trading on Friday. It could price the company at more | :07:32. | :07:39. | |
than $100 billion. Let's cross live to out reporter in Tokyo. To she | :07:39. | :07:45. | |
joins us now from San Francisco. Hello to you. Is it possible that | :07:45. | :07:55. | |
:07:55. | :07:57. | ||
Facebook could live up to all of this hype? I do not know whether | :07:57. | :08:04. | |
they can build a business with this huge overvaluation. -- valuation. | :08:04. | :08:10. | |
The question so many people seem to be asking is where is the revenue | :08:10. | :08:17. | |
going to come from? We saw GM only earlier this week withdrawing its | :08:17. | :08:25. | |
advertising from Facebook. It did not do very much at the sizing, | :08:25. | :08:31. | |
only $10 million. Some people say it did not do it very well -- | :08:31. | :08:41. | |
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advertising for is. Facebook needs to have the Google moment. They | :08:45. | :08:49. | |
have to create a business that is highly sustainable and lucrative. | :08:49. | :08:54. | |
They still have yet to do that. It is still a simple advertising | :08:54. | :09:01. | |
business. It has 900 million users but only makes a few million | :09:01. | :09:06. | |
dollars a year through advertising? Yes. Many of the advertising | :09:06. | :09:10. | |
dollars have not moved over to the internet and Facebook in particular | :09:11. | :09:18. | |
for some many people think that Facebook is interesting. They still | :09:18. | :09:25. | |
do not have that golden advertising price. Some people have done well | :09:25. | :09:35. |