Browse content similar to 21/05/2012. Check below for episodes and series from the same categories and more!
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of the bombing of an airliner over Scotland, has died. | :00:05. | :00:15. | |
Now it is time for the latest financial news. | :00:15. | :00:21. | |
You are with World Business Report. The headlines: a turbulent week | :00:21. | :00:24. | |
ahead on the markets as leaders battle to contain the eurozone | :00:24. | :00:31. | |
crisis. Finally a done deal. Yahoo agrees | :00:31. | :00:36. | |
to sell half of its stake in the Chinese website Ali Baba for more | :00:36. | :00:45. | |
than $7 billion. His Ryanair and the -- is the | :00:45. | :00:51. | |
budget airline model running out of space after another big year for | :00:51. | :00:56. | |
Ryanair? A New Trading Week begins and | :00:56. | :00:59. | |
investors remain on a knife-edge after leaders of the G8 nations | :00:59. | :01:05. | |
came up with no concrete proposals to tackle the eurozone crisis. The | :01:05. | :01:11. | |
German and French finance ministers meet today in Berlin. The | :01:11. | :01:17. | |
unravelling of Greece's financial system is gathering pace. Many | :01:17. | :01:27. | |
:01:27. | :01:30. | ||
Greek people are taking savings out of the banks. | :01:30. | :01:40. | |
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Cash machines are emptying daily, mattresses of -- are bolting. -- | :01:42. | :01:48. | |
bulding. Estimates suggest around 4 billion euros a week is being | :01:48. | :01:55. | |
withdrawn. In the shadow of the famed a couple us, economists say | :01:55. | :01:59. | |
recent Turkish history provides an example of the loss of savings that | :01:59. | :02:09. | |
many Greeks fear. In Turkey we had that 15 years ago. The powers-that- | :02:09. | :02:18. | |
be dealt in French francs and in Deutschemarks and they had a | :02:18. | :02:21. | |
flourishing situation and the rest of the population had low-spending | :02:22. | :02:31. | |
power. In London, this risk specialist says companies are | :02:31. | :02:34. | |
emptying their Greek bank accounts snidely. Some of them are taking | :02:34. | :02:41. | |
cash homes. Some of them are buying German bonds, some are opening bank | :02:41. | :02:46. | |
accounts on the internet but that is getting harder and harder. Some | :02:46. | :02:51. | |
of them are opening bank accounts in Cyprus in the probably mistaken | :02:51. | :02:56. | |
belief that a Greek bank in Cyprus is protecting them more than a | :02:56. | :03:06. | |
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great bank in Athens. -- Greek bank. These people are house-hunting in | :03:10. | :03:16. | |
London. His agent says Greeks are flocking here. They are looking to | :03:16. | :03:21. | |
park their money, looking for things they can rent out. This is | :03:21. | :03:30. | |
removing money from wherever it is and putting it in a safe haven. | :03:30. | :03:38. | |
Most on Mary Greeks are not in a position to do this. -- most | :03:38. | :03:46. | |
ordinary. The more of the money moves outside of the country, the | :03:46. | :03:56. | |
:03:56. | :03:58. | ||
more the country is reliant on the central bank. | :03:58. | :04:05. | |
Obviously a critical week, today the German and French finance | :04:05. | :04:09. | |
ministers talk in Berlin ahead of an EU summit on Wednesday. How will | :04:09. | :04:16. | |
they find middle ground prior to that? It will not be easy. Germany | :04:17. | :04:22. | |
is exposed to using debt to spend the country's way out of a | :04:22. | :04:32. | |
recession. France will press on with an abolition of the strict | :04:32. | :04:37. | |
austerity policies which they think Germany is imposing on Europe. | :04:37. | :04:42. | |
Between demand and supply there is quite a difference. They will have | :04:42. | :04:50. | |
to come up with a compromise. seems to be some room emerging in | :04:50. | :04:54. | |
Germany. The German finance minister speaking on the weekend, | :04:54. | :04:59. | |
saying they are open to look at all sorts of ideas as long as it | :04:59. | :05:04. | |
doesn't increase debt. Do you think eurozone bombs, which many have | :05:04. | :05:14. | |
been pushing, a good way of resolving the situation? For many, | :05:14. | :05:18. | |
the eurozone seems a way out but the bonds basically mean you borrow | :05:18. | :05:28. | |
:05:28. | :05:28. | ||
your neighbour's credit card to find your own spending. -- to fund. | :05:28. | :05:33. | |
They are only make sense if you have a common fiscal policy. Give | :05:33. | :05:39. | |
up your sovereignty, otherwise countries can go on spending as | :05:39. | :05:43. | |
much as they like and make other countries responsible for paying | :05:43. | :05:52. | |
their debt. It is difficult to see the eurobonds working. While all | :05:52. | :05:56. | |
this is it going on we heard that the Greek people are pulling out | :05:56. | :06:01. | |
their money, and it is going on in Spain as well. The prime minister | :06:01. | :06:07. | |
there saying he will enact an audit of the banks to see how stable they | :06:08. | :06:14. | |
are. That is very much welcome. The markets are suspicious that the | :06:14. | :06:20. | |
reported numbers are understating the scale of the problem. It could | :06:20. | :06:27. | |
be a help if a trusted third party could clarify the mess and come up | :06:27. | :06:32. | |
with something for the market to believe. There is a divide between | :06:32. | :06:36. | |
what the market thinks and what the government is telling us is needed. | :06:36. | :06:41. | |
A lot to keep an eye on, thank you for your perspective on what will | :06:41. | :06:47. | |
be another critical week. In a bid to raise cash, Yahoo is | :06:47. | :06:55. | |
near to selling half its stake in Chinese website Alibaba. What these | :06:56. | :07:05. | |
:07:06. | :07:08. | ||
Yahoo up to? -- what is? Alibaba will be buying back half of | :07:08. | :07:13. | |
the Afu's stake for a minimum 7.1 billion US dollars in cash and | :07:13. | :07:18. | |
stock. It brings to an end a long- running and bitter negotiation | :07:18. | :07:25. | |
process between the two science. Yahoo acquired the stake in Ali | :07:25. | :07:31. | |
Baba years ago for 1 billion US dollars, they are making 700 % of | :07:31. | :07:36. | |
their investment. Alibaba is buying back its own stock. There is an | :07:36. | :07:41. | |
agreement for Yahoo to sell its remainder of the stock in stages | :07:41. | :07:50. | |
later on. Another story to keep an eye on. Ryanair. The biggest | :07:50. | :07:56. | |
airline for European routes. It is expected to make almost 500 million | :07:56. | :08:02. | |
euros, around the same as last year but until now it has posted big | :08:02. | :08:09. | |
chums in earnings. How do they grow from here? | :08:09. | :08:14. | |
Ryanair's main markets, Spain, the Italy and the UK face tough | :08:14. | :08:20. | |
economic times. Fuel costs have been soaring but they keep the | :08:20. | :08:29. | |
money coming in by stripping off costs and charging for extras. The | :08:29. | :08:35. | |
chief executive aims to double passenger numbers over the next | :08:35. | :08:42. | |
five years but how can he do that? He does not have many options. He | :08:42. | :08:48. | |
is trying to expand in eastern Europe and there the economies are | :08:48. | :08:54. | |
flat. He has a problem at the moment. A wry N N needs a new fleet | :08:54. | :09:04. | |
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of more fuel-efficient planes. -- IMF -- Ryanair needs. They are | :09:08. | :09:16. | |
looking at developing a new type of debt. They are being offered a | :09:16. | :09:25. | |
bargain price. If they can achieve this they can break into the | :09:25. | :09:30. | |
Airbus-Boeing duopoly. For our their airlines it will be good news | :09:30. | :09:35. | |
because they raise more competition. On the other hand they will find | :09:35. | :09:45. | |
that Ryanair got there first. want to replace their fleet in 2014 | :09:45. | :09:55. | |
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but the new plane might not be in production by then. | :09:56. | :10:06. |