Browse content similar to 26/06/2012. Check below for episodes and series from the same categories and more!
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motivated. You are or up to date. Now it is | :00:02. | :00:12. | |
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time for the financial news. It is time for World Business Report. | :00:16. | :00:24. | |
The headlines: More pain for Spain. Moody's downgrades 28 banks. | :00:24. | :00:29. | |
To pan's Prime Minister faces a rebellion over his plan to double | :00:29. | :00:39. | |
sales tax. -- of Japan's. The problems continued to pile up | :00:39. | :00:43. | |
for the eurozone. The creditworthiness of 28 Spanish | :00:43. | :00:48. | |
banks was downgraded by Moody's. It says Spanish banks are vulnerable | :00:48. | :00:52. | |
to losses on their property loans and said that the government will | :00:52. | :00:57. | |
struggle to help them out as its finances are in a bad state. | :00:57. | :00:59. | |
Santander was among those downgraded but its rating still | :00:59. | :01:04. | |
remains above the Spanish government's. A fifth European | :01:04. | :01:08. | |
nation has approached Brussels for finding. This time it is Cyprus, | :01:08. | :01:13. | |
which analysts think will need between 5 and 10 billion euros. | :01:13. | :01:16. | |
And Greece is in search for a new finance minister after Vassilis | :01:16. | :01:20. | |
Rapanos resigned due to health reasons. That could hold up | :01:20. | :01:24. | |
negotiations over the terms of the Greek bail-out. Jeremy Stretch is a | :01:24. | :01:31. | |
market strategist at CIBC Markets. Good morning. It is just 24 hours | :01:31. | :01:38. | |
of information there. Let's start with Spain. The downgrading of the | :01:38. | :01:46. | |
banks and the concern by Moody's. What about the bail-out? Spain have | :01:46. | :01:51. | |
only just formally requested the banking bail-out. But we don't know | :01:51. | :01:55. | |
any details as to how that will work. We do not know how much Spain | :01:55. | :02:03. | |
will request. We had those audits of the banking system last week. | :02:03. | :02:08. | |
But as the property loans continued to go bad that number will continue | :02:08. | :02:12. | |
to go up. That is probably one of the reasons Moody's are | :02:12. | :02:17. | |
particularly concerned about the banking sector in Spain. As far as | :02:17. | :02:24. | |
the other news that I mentioned there, in terms of Greece and their | :02:25. | :02:29. | |
situation, it is not looking particularly good, when you have | :02:29. | :02:37. | |
not got the Prime Minister available, or the finance -- or the | :02:37. | :02:42. | |
finance minister. Yes. It would almost be funny and ironic if it | :02:42. | :02:48. | |
was not so serious. Both of them are not able to attend the EU | :02:48. | :02:56. | |
summit this week. The whole process in terms of the bail-out, or | :02:56. | :03:00. | |
renegotiations, are being delayed. One thing the eurozone does not | :03:00. | :03:10. | |
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have a lot of time -- a lot of his time. Angela Merkel was speaking in | :03:12. | :03:19. | |
Berlin yesterday. She has clearly set no to the idea of debt sharing. | :03:19. | :03:23. | |
That is right. On the one side we have a number of nations same, what | :03:23. | :03:29. | |
we require is some kind of debt neutralisation across Europe to | :03:29. | :03:34. | |
share the pain. And on the other side you have Germany, who will be | :03:34. | :03:38. | |
the paymaster for the majority of that. They are saying, as it stands, | :03:38. | :03:43. | |
we're not in a position to do that. Markets are thinking ahead of this | :03:43. | :03:47. | |
EU summit at the end of the week. Very low expectations, I imagine. | :03:47. | :03:56. | |
Indeed. The level of expectation is so low that you can almost step | :03:56. | :04:03. | |
over the bar. That is about as positive as we can get. Thank you. | :04:03. | :04:07. | |
We'll keep you up-to-date. Let's move on to Japan. Lawmakers there | :04:07. | :04:11. | |
are voting on a bill that would double the nation's sales tax to | :04:11. | :04:15. | |
10%. It is a controversial move that dozens of members of the | :04:15. | :04:20. | |
ruling party are likely to vote against. Our correspondent is in | :04:20. | :04:28. | |
Tokyo. Tell us about this boat today. What is the latest? -- vote. | :04:28. | :04:32. | |
They will start voting in about one hour in the lower house of | :04:32. | :04:38. | |
parliament. The bill is expected to pass. The ruling Party of Japan has | :04:38. | :04:44. | |
managed to reach a deal with its two main opposition parties. So it | :04:44. | :04:50. | |
is likely to pass. But as you say, 50-60 possibly lawmakers from the | :04:50. | :04:58. | |
ruling party have already said that they might vote against it. It is | :04:58. | :05:05. | |
not clear what they will do, whether they will be even show up, | :05:05. | :05:12. | |
or whether they will vote against it. But the leader has indicated he | :05:12. | :05:16. | |
might form a new party. If that happens it will be a huge blow. | :05:16. | :05:22. | |
This is critical. If this vote goes against the government, what will | :05:22. | :05:30. | |
it mean for the Prime Minister? would mean that the ruling party | :05:30. | :05:36. | |
will have significantly less power. But the Prime Minister seems very | :05:36. | :05:46. | |
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committed to make this bill passed after the lower house -- past. He | :05:47. | :05:57. | |
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keeps saying it is needed to tackle the huge debt. Thank you very much.. | :05:59. | :06:03. | |
News Corp is considering splitting into two companies according to the | :06:03. | :06:07. | |
Wall Street Journal, which is one of News Corp's newspapers. One | :06:07. | :06:10. | |
company would control the movie studios and television channels and | :06:10. | :06:14. | |
the other would look after newspapers, book publishing and the | :06:14. | :06:19. | |
education business. According to this report News Corp chairman | :06:19. | :06:21. | |
Rupert Murdoch has recently come around to the idea after initially | :06:22. | :06:26. | |
opposing it. of Nissan, was paid almost 1 | :06:26. | :06:29. | |
billion yen, nearly $13 million, for his work over the past | :06:29. | :06:32. | |
financial year. He disclosed his pay at the company's annual general | :06:32. | :06:37. | |
meeting. That makes him Japan's best-paid executive. | :06:37. | :06:41. | |
Microsoft is buying Yammer for $1.2 billion. Yammer provides private | :06:41. | :06:48. | |
social networks for companies. Microsoft says that it wants Yammer | :06:48. | :06:51. | |
to be seen as part of its Office business software. Yammer will | :06:51. | :06:55. | |
continue to be run from its headquarters in San Francisco. | :06:55. | :06:58. | |
tumbled tumbled almost 8% on Monday to hit | :06:58. | :07:03. | |
a 9-year low. It follows a negative report from Morgan Stanley. It said | :07:03. | :07:05. | |
that the BlackBerry phones are ageing and that the new BlackBerry | :07:05. | :07:13. | |
10 software is unlikely to be a hit. It is becoming a race against time | :07:13. | :07:18. | |
for Italy's third-largest bank, Monte dei Paschi di Siena. Today, a | :07:18. | :07:22. | |
delayed meeting of the bank's board is due to approve a new business | :07:22. | :07:28. | |
plan. MPS, as it's known in Italy, urgently needs to find a billion | :07:28. | :07:38. | |
:07:38. | :07:42. | ||
euros to fill a capital shortfall. world's oldest bank. But to ensure | :07:42. | :07:48. | |
it stays around it needs more than a new management plan. Supreme | :07:48. | :07:52. | |
efforts have climbed two-thirds of a 3 billion euros black hole | :07:52. | :07:58. | |
identified it -- identified by help.tside | :07:58. | :08:04. | |
help. -- have failed. Wended markets can probably not help | :08:04. | :08:08. | |
because they are up to expensive. This could become the first Italian | :08:08. | :08:15. | |
bank to resort to some form of The markets here reckon the Bank | :08:15. | :08:19. | |
and other Italian banks are far less exposed to those of Spain | :08:19. | :08:24. | |
which have beak investments in the commercial property market. But M | :08:24. | :08:30. | |
Italian government bernment b say the Italian state being asked | :08:30. | :08:34. | |
to support a bank it already relies on itself. But investors in a | :08:34. | :08:39. | |
solution will be found. I think that they will keep going. They are | :08:39. | :08:44. | |
the third largest bank in Italy. They will undoubtedly sell assets. | :08:44. | :08:48. | |
They will go to the government who will then buy a get off them | :08:48. | :08:51. | |
through a secondary agency which means that they can continue but | :08:51. | :08:56. | |
they will have to pay a high coupon for that. I also think they will be | :08:56. | :08:59. | |
bailed out was certain degree by the fact they have Italian | :08:59. | :09:02. | |
government bonds to be redeemed in the next couple of years, which | :09:02. | :09:05. | |
will give them some respite from the pressure they are under current | :09:05. | :09:10. | |
be. The hope is that talks with the Treasury and the Bank of Italy will | :09:10. | :09:17. | |
bear fruit. But the state will want to minimise any addition to its | :09:17. | :09:25. | |
already public debt. We're seeing losses across the | :09:25. | :09:30. | |
board on markets, not significant, but falls across the board. HSBC | :09:30. | :09:35. | |
finally came out with its lower growth forecast for China, to 8.4% | :09:35. | :09:39. | |
this year. The Bank of Korea's sentiment index has that to a | :09:39. | :09:43. |