10/08/2012 World Business Report

economic weakness. And a scandal. Can the interest rate problem be

fixed? We will tackle that later today.

We will catch up with Rico Hizon shortly. Let's talk about the

shares in Manchester United which started trading in New York today.

The UN has raised $200 million by selling a 10% stake. -- the owners.

Masses are united is the richest football club in the world. --

Manchester United. The owners hope by selling off a large stake they

debts. To bring it to the US is certainly a unique choice but it

shows the connection to they -- the brand. The second half of the club

will go back to its own nose. The fans want the money spent on the

players. -- its owners. 50% of the problem is going back to the people

who own it. I think all of it should be used in the club. Some

may look at New York as an unusual choice but one reason for selling

shares in the US is so the family can retain f the club

through their shares which have ten times more voting power than those

available to the public. That would have been possible on the London

Stock Exchange. That is a worry for this investor, already concerned

the shares are too pricey. After selling 10% of the shares they will

still have 99% of the voting power, issues.

issues. Manchester United is a byword for success in the sporting

world. The US financial markets are another game altogether.

Let's head to Asia. Further evidence of the slowing Chinese

economy with export figures weaker than expected. Great to see you and

I mention the word weaker than expected but who are we kidding? We

are talking about a plunge in the trade growth? Absolutely. That is

why it is moving markets. It was a huge disappointing, these July

trading numbers. Exports have risen just 1% from last year, and the

weakest rise since January. There was a forecast for a 6% rise. This

was the weakest pace of export twice in the past year. We were

hoping for a 7.2% increase. The wide margin as to a bad set of

monthly reports which came out from producer prices. Faltering demand

from the two largest customers of China, the US and Europe, is the

major culprit. The Commerce Minister of China says it will be a

major challenge for the mainland to meet its growth target of 10%.

Thank you. Given we had disappointing numbers from China

yesterday, all eyes will certainly be on what Beijing will do. We will

talk to you saying. Let's touch on some of the other stories. They

could be a switch in strategy at Yahoo!. The new chief executive may

revise their plans to pay shareholders millions of dollars

from the sale of a stake in another company. The previous management

had promised to reward shareholders but that I may not go ahead.

Gordon price has hit a record. The price of corn hit a record of $8

for every bushel. That has already added to a rise in June. There is

concern the food crisis of 2008 could be repeated.

Japan's sales tax is set to double. Parliament will vote this Friday.

The plan is to raise the tax from 5% to 10% by 2015. The Prime

Minister says the tax rise is essential to reduce the debt burden.

Let's move on and talk about the interest rate scandal because it is

certainly causing a lot of damage to the banking industry. Let's

cross to the top executives of Barclays. Investigations are on

going to see if other banks will also be setting the interest rate.

This is a benchmark for trillions of dollars of loans and other

products. It is said by the banks themselves to submit rates at which

they would learn to themselves. The banking industry cannot abandon

this interest rate. I an ice-pick into the chief executive of a

company and he will present his initial thoughts on this scandal.

Interesting stuff. Douglas Keay was a trader at Morgan Stanley in the

early 1990s and chance up. We talk about this scandal at the moment --

and joins us. Until 2008, you wear it in the industry in the early 90s

and have written that back then the interest rate did not appear to be

what they should have been. started trading 1991 and

regulations, when I first came across them, I was shocked. I talk

to my colleagues and they thought it was humorous but I was so naive

to think the rate was actually accurate. Explain how they

manipulated these figures? Under the trading scheme I could see all

of the office. I could see where light for was says selling each day,

the official rate. It was different from the actual rate being traded

in the market. What is interesting is that we talk about the London

rate, but if this has been going on for a couple of decades, surely

there must be others? Do you think there are others around the world

who were in on this? I cannot say but what I can say is that inner

London, for example, the Bank of England is clearly involved -- in

London. The highest authorities? Yes. Correct. I know you do not

want to speculates about these initial thoughts on the report

because that comes out later today. But how do you fix the problem?

They are talking about having the rate based on monthly rates which

is a huge step in the right direction. That is what it should

be in the first place. Yes. appreciate your time. Thank you.

We should also just note that Barclays has named David Walker as

its new chairman. He was formerly an official at the Bank of England

and the Treasury. His first task will be to find the new chief

executive following the resignation of Bob Diamond. Now a look at the

markets. Rico Hizon said that the Chinese numbers are in dismal

territory with poor export growth. The growth number came in just 1%