14/08/2012 World Business Report


14/08/2012

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headlines from BBC World News. Now for the latest financial news with

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World Business Report. The road to recession - figures out this

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morning are set to show the eurozone economy contracting. And

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shares in the deals website Groupon plunge further in after hour

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trading as earnings disappoint investors Evidence is due out this

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morning of the extent of the damage that the debt crisis is wreaking in

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the eurozone - in the form of the Evidences cure and this morning of

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the extent of the damage the debt crisis is wreaking in the euro-zone.

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GDP figures for the second quarters - many expected the first step

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towards recession. The forecast is for a contraction of 0.2 per cent.

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Germany is expected to have grown by 0.2 per cent but that is still

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down. No action to stimulate the economy is likely before September

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and Spain will decide whether it needs a bail-out and international

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monitors will report back on Greece. Things were starting to look up.

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The euro-zone stabilised in the first quarter but a decline puts us

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firmly back in the course of a recession. What do you think?

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likely we will have recession. And we are pencilling in a contraction

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of 0.2 per cent. There is not a lot policy makers can do. There is a

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lack of confidence with consumers. This is because of the euro crisis

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grinding on for months and months. Growth will be much weaker than

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expected at the beginning of this year and will have an impact on

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what the central bank does in terms of fiscal policy. You mention the

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figure of 0.2 per cent - worse than what many economists were

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predicting. Talking about individual GDP figures, they will

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be released staggered throughout the course of the day. Germany is

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believed to have posted modest growth. Do you agree with that or

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are we in for more shock announcements? Belgium has posted

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his -- it has contracted a? Germany we have a stagnation of GDP.

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That will be one of the best figures will get out of the euro-

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zone. If you compare Germany compared to what it had last

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quarter, it would be a sharp slowdown. That is worrying because

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Germany was the powerhouse of European economic growth and

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Germany will slow down substantially. The most important

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impact will be that the growth outlook of June. When they review

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the figures in September, that might mean they will cut rates by

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25 basis points because figure -- fears are worse than expected.

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possible remedies - what actions can they take come September or is

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this purely about confidence? is purely about confidence. At

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interest rates at 0.75 per cent it might not make a lot of difference

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if you cut them to 0.5 per cent. Corporates have a lot of cash.

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There is no real problem with most consumers it is the lack of

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confidence. It is the crisis which is leading them to postpone all the

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spending. It is only politicians that can come up with credible

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plans and implement them - fiscal unions, banking unions. That takes

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time. That is the bigger drama of the current growth figures. Growth

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is relatively weak. The politicians in the euro-zone have to come up

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with a credible plan and implement it. Many thanks. Shares in anti-

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glassing campaign fell 20 per cent in after our trade. That is despite

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swinging into profit. Second- quarter earnings reported last

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night shows sales growth slowing. The Web site offers customers

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discounts on everything. It listed on the stock market last November

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but shares have already lost some 60 per cent of the initial value.

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In only its second sets of results, Groupon made money. But the stocks

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reached all-time lows. Investors fear the potential they once saw

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may have been misplaced. Customers might be getting sick and tired of

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all those coupons and deals - just at a time when trumpet mack faces

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more competition. -- Groupon. If you compare previous results. Her

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Wall Street was left underwhelmed. The chief executive of chatted

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Standard Chartered has flown to New York in an attempt to come to a

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deal with regulators. The authorities accuse the Bank of

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laundering some $250 billion to Iran. The bank has admitted some

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illegal transactions but said it is just $14 million. The bank has been

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summoned for parliamentary hearings on Wednesday. President Obama has

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announced the US government will buy up to one under $70 million

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worth of meat and fish to help farmers hit by the worst drought in

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50 years. On a three-day election tour in Iowa, estate badly affected

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by the hot weather, the President said the food would be sent to

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assistance programmes such as food bank. Figures are out shortly and

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likely to show prices in India continuing to rise. The central

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bank have said levels are too high. What can you tell us?

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expectation is for prices to remain at high levels. Consensus is for

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all some prices, the benchmark, to edge higher in the month of July at

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from 7.25 per cent. The data would likely reduce expectations for a

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rate cut. The central bank government in India striking a

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atone emphasising his concern inflation remains too high and is

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persuading the government to look at its spending. Demand factors and

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not just supply shocks. There is a current dilemma with economic

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growth slowing. Business and policy makers are calling for rate cuts.

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The rising prices has them on hold. There is a weaker currency and

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monsoon rain could rise to the price of food and that is why they

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should keep rates on hold at their next meeting in September.

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shipping industry has long been seen as the indicator for global

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growth. When the company with the biggest fleet of container ships

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come -- reports is more than just in just about the company. To many,

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container ships on the world's oceans, chasing too little freight

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business to keep them saving properly. For Denmark's company, it

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hopes to beat the competition on service quality. Container shipping

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charges have risen, raising hopes of a turnaround after heavy losses

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in the first three months of the year. The company has said it is

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not exactly where hoped to be a year ago. It is in its 4th year of

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a sharp decline. It is one reason why it has invested heavily in the

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offshore gas and services industry. A City analyst says the company's

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aim is to capitalise so can charge premium price -- capitalise on its

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reputation. Delivering more containers on time. 91 per cent of

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containers are delivered on time of verses the industry average which

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is in the 70 per cent. That might over -- another to charge a premium

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making sure they can earn higher margins. Since last summer, the

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