Browse content similar to 10/09/2012. Check below for episodes and series from the same categories and more!
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be a step forwards towards democracy. | :00:02. | :00:12. | |
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Now for the latest financial news, here is World Business Report. | :00:15. | :00:22. | |
The headlines: Greece's coalition government fights over vital | :00:22. | :00:26. | |
spending cuts. Francois Hollande promises to turn | :00:26. | :00:36. | |
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around the flagging French economy in just two years. | :00:39. | :00:42. | |
The leaders of the three parties in Greece's coalition government had | :00:42. | :00:49. | |
failed to agree on Sunday's packages of spending cuts worth | :00:49. | :00:54. | |
$14.7 billion. Prime minister Antonis Samaras is calling the cut | :00:54. | :00:59. | |
crucial to sustaining the bailout funding. The Conservative premier | :00:59. | :01:07. | |
and the two other party leaders, the Socialists and the Democrats, | :01:07. | :01:12. | |
disagree on the across the board cuts to pensions and wages. They | :01:12. | :01:15. | |
insist that Greece's international creditors give the country more | :01:15. | :01:18. | |
time to implement the cuts. The three leaders will meet again on | :01:18. | :01:25. | |
will be speaking to representatives from the IMF today, and on Tuesday | :01:25. | :01:35. | |
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with the ECB president. I am joined by head of foreign exchange... We | :01:44. | :01:48. | |
seem to be no closer to Greece hitting targets and getting the | :01:48. | :01:54. | |
extra money they need. That's right. We are back into the diplomacy | :01:54. | :01:56. | |
element where the various politicians are negotiating with | :01:56. | :02:02. | |
each other. The problem is, as time goes on and economies continue to | :02:02. | :02:05. | |
attract, their ability to meet the targets in terms of cuts will | :02:05. | :02:11. | |
continue to diminish. They are hoping to get more time in order to | :02:11. | :02:14. | |
enact some of the cuts, but whether the creditors are prepared to give | :02:14. | :02:21. | |
them that time is still a moot point, that is the problem. What do | :02:21. | :02:26. | |
the creditors want to see in terms of evidence that Greece is | :02:26. | :02:33. | |
deserving of the next tranche of cash? There will be some scrutiny | :02:33. | :02:38. | |
of how aggressive the cuts have been. How they have been | :02:38. | :02:41. | |
implemented. Also the implementation of other measures | :02:41. | :02:45. | |
such as privatisation. It's all very well saying they will sell for | :02:45. | :02:50. | |
the area's industries or sections of assets, without actually moving | :02:51. | :02:55. | |
ahead and doing that the international community will say | :02:55. | :03:01. | |
that it is not really being enacted. We need to see real time cuts. | :03:01. | :03:06. | |
EU think this is a question of these politicians having to bite | :03:06. | :03:16. | |
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the bullet? -- do you think. They need to see the politicians or are | :03:19. | :03:24. | |
in a position of strength. Antonis Samaras cannot deliver unless | :03:24. | :03:31. | |
creditors agree. If you're faced with a painful decision, if you can | :03:31. | :03:34. | |
postpone or delay it you will try to do that. That is what the | :03:34. | :03:43. | |
politicians are attending. That is reliant on the creditors plane ball. | :03:43. | :03:49. | |
-- playing. It is quite rational for them to say "we don't want to | :03:50. | :03:53. | |
give you more time" it will not just be more time, it will be more | :03:53. | :04:02. | |
money. There is this issue of a debate between the parties. It will | :04:02. | :04:06. | |
be a case of them trying to push the envelope to try to get the best | :04:06. | :04:11. | |
terms possible. It is a Game of bluff in poker, with the financial | :04:11. | :04:16. | |
markets being the key element. Briefly, Antonis Samaras will meet | :04:16. | :04:21. | |
with the head of the ECB tomorrow. His announcement last week about | :04:21. | :04:25. | |
buying bonds in the financial markets does not help Greece at all, | :04:25. | :04:30. | |
does it? No, that was about economies which still have access | :04:30. | :04:34. | |
to the financial markets, which Spain still does. For those such as | :04:34. | :04:38. | |
Greece which is reliant on funding - they are a separate account. We | :04:38. | :04:43. | |
are talking about two separate strands which overlap, because they | :04:43. | :04:51. | |
are in the eurozone, but we are talking about the head of the ECB | :04:51. | :04:56. | |
having a process that could be helpful to Spain, Ireland and | :04:56. | :05:01. | |
Portugal at this point. French President Francois Hollande | :05:01. | :05:06. | |
has promised to turn the country's stagnant economy around by 2014. He | :05:06. | :05:09. | |
made the announcement in a prime- time television interview on Sunday, | :05:09. | :05:14. | |
it comes four months into his presidency. Critics have accused | :05:14. | :05:17. | |
him of procrastination. He outlined a series of measures including | :05:17. | :05:26. | |
spending cuts, and he said the government would lower its growth | :05:26. | :05:36. | |
:05:36. | :05:41. | ||
forecast for next year to just 0.8%, down from 1.2%. There will be a... | :05:41. | :05:46. | |
We have more on Francois Hollande's controversial tax plans. The | :05:46. | :05:51. | |
wealthy in France promised to raise income tax on the wealthy up to 75%. | :05:51. | :05:54. | |
That was one of his more popular pledges, which helped him win the | :05:54. | :05:59. | |
election. Not everyone thinks the plan is feasible. The problem with | :05:59. | :06:05. | |
this absurd pledge, the 75% tax rate, once you are in power, you | :06:05. | :06:10. | |
more or less have to go by it and abide by it. Now we see the | :06:10. | :06:18. | |
Government considering that it was obviously out rages and done by | :06:18. | :06:21. | |
Francois Hollande to react to some piece of news during the elections. | :06:21. | :06:26. | |
They are trying to water the proposal down now. Of course, they | :06:26. | :06:33. | |
will get the worst of both worlds, because their supporters will say | :06:33. | :06:39. | |
they are betraying them.... Attempts to water down the | :06:39. | :06:46. | |
proposals in Parliament have met with difficulties. France's | :06:46. | :06:50. | |
government needs to raise more tax or cut spending. The new President | :06:50. | :06:55. | |
has made a commitment to balance the budget within five years. He | :06:55. | :06:58. | |
has damaged his credibility on being able to do that on public | :06:58. | :07:06. | |
finances. That acts as a restraint on the government's ability to | :07:06. | :07:15. | |
refloat the economy. There is a limit to how far the government can | :07:15. | :07:22. | |
go. This means Francois Hollande faces a tough act of balancing on a | :07:22. | :07:27. | |
tightrope. He will be watched with intense scrutiny in the lead-up to | :07:28. | :07:35. | |
the Budget. We had had a lot of economic news | :07:35. | :07:41. | |
out of China. The trade surplus has widened to $27.6 billion as exports | :07:41. | :07:51. | |
rose and imports went down. What picture is this painting about | :07:51. | :07:56. | |
China? It's still showing that things are slowing down. | :07:56. | :08:02. | |
Absolutely. The export numbers grew at a slower pace than forecast in | :08:02. | :08:06. | |
the month of August, while imports fell as well, surprisingly. The | :08:06. | :08:14. | |
latest numbers revealed that there is a mounting challenge that | :08:14. | :08:20. | |
Shanghai's policymakers face. The data confirms President Hu Jintao's | :08:20. | :08:23. | |
warning over the weekend of the great challenges posted by the | :08:23. | :08:31. | |
world economy. They could be further stimulus and monetary | :08:31. | :08:35. | |
easing to support the expansion of the economy. We have seen off the | :08:35. | :08:39. | |
August data now from the Trade report, Investment and retail sales, | :08:39. | :08:42. | |
it has become clear that the slowdown is growing and that the | :08:42. | :08:47. | |
government is feeling the need to act. One economist I spoke to is | :08:47. | :08:50. | |
worried on how this might affect the rest of Asia. The region had | :08:50. | :08:58. | |
been hoping China would come up with some sort of stimulus and | :08:58. | :09:03. | |
packages in terms of consumption, but this is not happening. | :09:03. | :09:09. | |
A couple of other business stories: The chief executive of extra Otter | :09:09. | :09:19. | |
:09:19. | :09:28. | ||
is ready to step down after a $36 billion takeover. -- XStrata. | :09:28. | :09:38. |