20/06/2012 World Business Report


20/06/2012

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tackling its debt crisis. Those are the latest headlines. -- priest.

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Time for more financial news in Hello and a warm welcome. The

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headlines: At the G20 meeting in Mexico, European leaders tried to

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reassure the rest of the world they can fix the debt crisis. We will

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find out today at the US Federal Reserve is planning another boost

:00:34.:00:40.

for the World's largest economy. I am Rico Hizon in Singapore. A major

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media deal is happening in this really good. News Limited makes a 2

:00:46.:00:56.
:00:56.:01:00.

billion dollar takeover bid for Good to have you with us. At the

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G20 meeting in Mexico, Euros will leaders did their best to ensure

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other countries that they were coping that the crisis. -- eurozone.

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Francois Hollande also said the bidders would discuss using the

:01:20.:01:26.

bail-out fund to buy up debt from struggling nations. -- leaders. Our

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correspondent has more. What those attending the summit, the risks

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were clear. Failure to deal with the debt crisis could push the

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global economy back into recession. It would be the second in four

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years. It would add to the pressure on European leaders. Spain is

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finding it increasingly difficult to persuade investors to back its

:01:49.:01:58.

debt. By Tuesday, it had to raise for the money. Given how high the

:01:58.:02:05.

stakes are, what was achieved? -- For the Money. Are we any closer to

:02:05.:02:13.

moving towards integration of the banking system? After the summit,

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Barack Obama said that the single currency union was one that had

:02:17.:02:21.

been set up without the necessary bells and whistles but this problem

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was being addressed. European leaders are also apparently

:02:26.:02:30.

considering buying up the debt of other distressed European countries.

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If true, this would be a change in position for Germany. Apparently

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Italy suggested the use of the rescue fund and France's Francois

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Hollande said that this was an idea worth exploring. No doubt we will

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hear more about this later. There has been growing optimism on the

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financial markets that the US Federal Reserve might take action

:03:00.:03:05.

to boost the EU economy. We will find out if that optimism is

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justified later today. There is certainly concern in the United

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States about flagging growth and high unemployment levels. Our

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correspondent reports from Washington. The Bank of the central

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bank does not look like a knight in shining armour. Many in the markets

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are counting on him to write to the rescue of the struggling economy.

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That's right. The US jobs market is weak. Industrial production is down.

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The debt crisis is casting a long shadow. Experts remain divided on

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whether the situation has got a bad enough to close the central bank to

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intervene with new stimulus measures. Some believe that policy

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makers are boarded enough to act now. I think they can sense anxiety.

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I think they know that the economy has been weaker than what they

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forecast three years in a row. That is unprecedented. I think they are

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wondering what else they can do. Can they do it? What are the

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politics? The most likely option is extending the current programme. It

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is intended to lower long-term interest rates. A decision about

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what action to take will be known at the end of the meeting with the

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policy makers. All eyes are on the Federal Reserve, the central bank.

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Republicans in Congress sate it has already done too much. Markets are

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seeing it has not done enough. Amid all these competing pressures, the

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Federal Reserve will have to decide which way it jumps later today.

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Rupert Murdoch's plan to expand News Corp in the UK has been

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frustrated by the phone tapping scandal. He is expected to expand

:05:28.:05:34.

elsewhere. There is a deal underway in Australia. Rico Hizon has more

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details. What is he up to? He wants to expand his media footprint in

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Australia. The Australian arm of News Corp has made a 2 billion

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dollar offer for a full takeover of Has alluded Nadir Holdings which is

:05:54.:06:04.
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owned by James Packard. -- Consolidated Media Holdings. This

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would give them a large amount of control over paid television. James

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Packard has said he will support the move. Breaking a den, --

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50 % stake in Fox boards. News Corp holds a share. Fox Sports is a 50-

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50 partnership. According to analysts, the move to unload the

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media business means that James Packard and refocus his resources

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in casinos. He is a billionaire. He has stakes in casinos in London and

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Las Vegas are amongst other places. The News Corp board must approve

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this. This would be a major deal for them. We will keep an eye on

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that story. You would think that the debt crisis would put anyone

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off investing in the eurozone. Investment from overseas into the

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region last year, according to Ernst and Young, went up. The

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results of their story showed 4,000 projects were funded by overseas

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funds in 2011. That is an increase of two percent on the year before.

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The US is the biggest investor, with more than 1,000 schemes. We

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can speak to the head of Ernst and Young's advisory service now. He

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wrote this support for us. Thank you for being in the programme. --

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on the programme. Investment is on the rise, why? Despite the doom and

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gloom and a crisis, there is a confidence in you that's ability in

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the long term to sustain growth and largest economy in the world. The

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:08:19.:08:26.

two percent of the wealth is there. Investors like that. They do not

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ignore the crisis. And these are individuals, organisations who are

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investing for a long period of time. The US is a big investor. Where

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else is investment coming from? Emerging markets are not only

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critical as markets. They are the source of many other factors.

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Investment projects have been increased by 22 % by the Chinese.

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They are investing in large numbers in the UK, Germany, France and

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southern Europe. They want to establish a long-term presence,

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acquired brands, acquire technology. They want to boost their domestic

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brand. brand. That is encouraging to here.

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Thank you. That is encouraging, isn't it? Let's look at the markets.

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Behind me, you can see gains across the board. A lot of this is in

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anticipation that the Federal Reserve may take further action to

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