Browse content similar to 07/08/2012. Check below for episodes and series from the same categories and more!
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nation. Those of the headlines. Now it is time for the latest financial | :00:08. | :00:16. | |
news. Hello and welcome to World Business | :00:16. | :00:24. | |
Report. A rogue institution - US regulators accused Standard | :00:24. | :00:28. | |
Chartered of a $250 billion laundering scheme with Iraq. It is | :00:28. | :00:33. | |
the latest scandal to engulf a British bank. I am Rico Hizon. | :00:33. | :00:40. | |
Standard Chartered's shares slumping to a near two year-low. | :00:40. | :00:43. | |
Serious allegations from a US regulator. | :00:43. | :00:51. | |
LA us GDP figures confirm the recession has deepened for Italy, | :00:51. | :01:00. | |
pursuing more pressure on Prime Minister Mario Monti. | :01:00. | :01:05. | |
British banking group Standard Chartered illegally schemed to | :01:05. | :01:13. | |
avoid sanctions with Iran for more than a decade, helping longer $250 | :01:13. | :01:18. | |
billion through the US financial system, the accusation from a US | :01:18. | :01:22. | |
regulator, who are threatening to strip the Bank of its licence in | :01:22. | :01:27. | |
New York. It is the latest scandal to rock the British banking | :01:27. | :01:33. | |
industry. In a sane, Standard Chartered has strongly rejected the | :01:33. | :01:37. | |
facts alleged by the regulator and says it is conducting a review of | :01:37. | :01:47. | |
:01:47. | :01:48. | ||
its US compliance. It also says it sees all of new business with | :01:48. | :01:54. | |
Iranian customers in any currency over five years ago. We will see | :01:54. | :01:58. | |
what this is doing to the share price in Asian trading in a moment | :01:58. | :02:04. | |
but first a report from New York. Standard Chartered does most of its | :02:04. | :02:08. | |
business in the emerging economies of Africa and Asia. Until now it | :02:08. | :02:12. | |
had stayed largely clear of the crisis and scandals that have | :02:12. | :02:19. | |
humbled so many other banks in recent times. Not any longer. US | :02:19. | :02:24. | |
authorities say Standard Chartered has helped Iran before it long- | :02:24. | :02:29. | |
standing American sanctions on a massive scale. In the last few | :02:29. | :02:34. | |
years these sections have been aimed at stopping Iran's suspected | :02:34. | :02:39. | |
nuclear weapons programme. In a statement, the New York banking | :02:39. | :02:46. | |
regulator said that in its evidence it has seen hundreds of millions of | :02:46. | :02:54. | |
dollars of fees and the bank has falsified records. It did this, | :02:54. | :02:57. | |
allegedly, to make so crucial information was omitted from | :02:58. | :03:02. | |
details of individual transactions involving a run. What comes across | :03:02. | :03:12. | |
:03:12. | :03:13. | ||
is the size of these transactions. If it is proven it or so there was | :03:13. | :03:18. | |
an attempt to strip the information that banks often rely on to make | :03:18. | :03:23. | |
sure the transactions are complying with the US law. Regulators alleged | :03:23. | :03:28. | |
that Standard Chartered showed contempt for US banking regulations | :03:28. | :03:34. | |
and sight an internal e-mail sent from the head office in London, | :03:34. | :03:44. | |
:03:44. | :03:45. | ||
In a statement, Standard Chartered strongly rejected the way you as | :03:45. | :03:49. | |
authorities portrayed the facts and said it had ceased all new business | :03:49. | :03:55. | |
with Iranian customers more than five years ago. In the past, | :03:55. | :03:59. | |
American regulators have accused a number of other European banks, | :03:59. | :04:09. | |
:04:09. | :04:10. | ||
including HSBC and Credit-Suisse. Recently, the Dutch bank IMG, | :04:10. | :04:16. | |
agreed to pay a party of more than $600 million. The punishment for | :04:16. | :04:20. | |
Standard Chartered should be allegations be borne out could be | :04:20. | :04:28. | |
very heavy indeed. Let's see what is happening to the | :04:28. | :04:33. | |
shares of Standard Chartered in Asian trade. Rico Hizon is in our | :04:33. | :04:38. | |
Singaporean Office. Unsurprisingly, shares in the bank are sharply down | :04:38. | :04:46. | |
in Hong Kong trading? That is right. Standard Chartered's shares are | :04:47. | :04:51. | |
slumping to a near two-year low on the Stock Exchange and made these | :04:51. | :04:59. | |
allegations. The stock is between 6.5% and 7% at this hour. Analysts | :04:59. | :05:04. | |
have said that despite the statement rejecting allegations by | :05:04. | :05:14. | |
:05:14. | :05:15. | ||
the New York regulator that this was a rogue institution, investors | :05:15. | :05:20. | |
are not buying that story and they are saying many questions are still | :05:20. | :05:25. | |
left unanswered. They said the investigation is just the tip of | :05:25. | :05:31. | |
the iceberg and the risk in the US unit may be stripped of its licence, | :05:31. | :05:41. | |
which could lead to a greater sell- off in the bank. Two birds of its | :05:41. | :05:49. | |
profits come from a show. HSBC is trading higher -- from Asia. As you | :05:49. | :05:55. | |
said, many questions are still unanswered. Thank you. | :05:55. | :06:01. | |
Moving on to other news. Italy is publishing preliminary GDP figures | :06:01. | :06:04. | |
later and they are expecting to show the country is moving further | :06:04. | :06:10. | |
into recession. Predictions are for the economy to have contracted more | :06:10. | :06:18. | |
than 0.5% on the previous quarter and 2.3% on the year. This puts | :06:18. | :06:22. | |
further pressure on Mario Monti who is trying to get the country's | :06:22. | :06:28. | |
finances under control. He believes the country can continue to finance | :06:28. | :06:33. | |
its three trillion dollar debt without an external bailout. We | :06:33. | :06:38. | |
spoke to an economics adviser. He joins me through Skype. Thank you | :06:38. | :06:44. | |
for being with us. Well Italy have to go for a full bailout. We heard | :06:44. | :06:50. | |
that Spain is considering it. As Italy moved its position as all? | :06:50. | :06:55. | |
Italy is now looking at the Spanish situation. The Government will | :06:55. | :07:05. | |
:07:05. | :07:06. | ||
probably wait until September to see if Spain presses ahead with the | :07:06. | :07:13. | |
bailout. Italy wants to afford that route, as a matter of pride. -- to | :07:13. | :07:22. | |
avoid. So we will see what happens. We will probably have the answer in | :07:22. | :07:28. | |
September. It is indicated that Italy will try not to follow that | :07:28. | :07:33. | |
route. Many people of his they are wondering will Mario Monti be there | :07:33. | :07:43. | |
this time next year? For sure there are some doubts, especially now, | :07:43. | :07:50. | |
and there is a lot of discussion about the new laws but full of life | :07:50. | :08:00. | |
:08:00. | :08:00. | ||
from the next elections next year. -- that will apply. There are many | :08:00. | :08:06. | |
questions as to whether they will apply once Mario Monti is out of | :08:06. | :08:11. | |
office. He is trying to bring financial stability and a balanced | :08:11. | :08:18. | |
budget next year. I think it will month | :08:18. | :08:24. | |
month to month. This year will be a year of stability but next year | :08:24. | :08:34. | |
:08:34. | :08:35. | ||
hopefully will be a year of growth. Thank you. | :08:35. | :08:40. | |
While Europeans fret about economic slowdown, the largest hotel company | :08:40. | :08:46. | |
in the world has no such worries. Intercontinental is expected to | :08:46. | :08:52. | |
report underlying profits are up by 15% today. The company is the best | :08:52. | :09:00. | |
performing share on the FTSE 100 and it appears to have a good way | :09:00. | :09:05. | |
of making money. This is a view to die for, looking | :09:05. | :09:10. | |
straight out on the Olympic Park. The financial performance of the | :09:10. | :09:13. | |
company looks equally impressive, not just because of a record demand | :09:13. | :09:18. | |
for hotel rooms but because of its textbook approach to business. How | :09:18. | :09:24. | |
much money did it costs the company to open this has? Precisely nothing. | :09:24. | :09:29. | |
Because, like Coca-Cola and McDonald's, this is a franchise | :09:29. | :09:35. | |
operation. They put no money in and take no risk, simply charging a | :09:35. | :09:40. | |
percentage of the hotel's income. That model enables them to expand | :09:40. | :09:45. | |
quickly in countries where people are travelling more. Airlines are | :09:45. | :09:48. | |
forecasting growth and when you look at the bid the economies of | :09:48. | :09:55. | |
Brazil, Russia, India and China and China is very important to | :09:55. | :10:00. | |
intercontinental, there are many markets for them to move into. | :10:00. | :10:09. | |
hotel chain began 60 years ago this became car owners they wanted | :10:09. | :10:16. | |
something more modern to stay in than roadside hotels. It has made | :10:16. | :10:22. | |
innovation in hotel industry. It was the first to introduce | :10:22. | :10:27. | |
telephones and televisions in rooms and the first to allow children to | :10:27. | :10:34. | |
stay free. All of these innovations responded to a simple idea of | :10:34. | :10:39. | |
providing family focused hotel expenses. And they are promising to | :10:39. | :10:44. | |
serve up much more of the same in the years to come. Apparently it | :10:44. | :10:48. | |
has more than 1,000 hotels in the pipeline and that is likely to | :10:48. | :10:54. | |
leave it the best performing hotel chain in the world. | :10:54. | :11:01. | |
Now a quick flash of the markets. In Asia, Japanese stocks gained | :11:01. | :11:10. | |
from the second day. There is optimism Germany will support the | :11:10. | :11:14. |