21/09/2012 World Business Report


21/09/2012

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Now for the latest financial news Hello and welcome to World Business

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Report. Greece, Spain, now Portugal again. Crisis talks in Lisbon as

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support for austerity crumbles - a new headache for leaders battling

:00:22.:00:32.
:00:32.:00:35.

to save the Euro. China's largest foreign investment gets the Green

:00:35.:00:40.

light. But there is rising opposition to the deal in Canada.

:00:40.:00:43.

Brussels may give Universal the green light to take over EMI but

:00:43.:00:53.
:00:53.:00:54.

only if it sells off some of its most treasured assets. As pressure

:00:54.:00:57.

mounts on Spain to request an economic rescue, a new front could

:00:57.:01:02.

be opening or re-opening, in the battle to save the euro. Portugal's

:01:02.:01:05.

government is under growing pressure to back down on its latest

:01:05.:01:08.

austerity plans, after some of the largest protests ever seen in the

:01:09.:01:13.

country. With even members of the two governing parties publicly

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opposing the plans, and the coalition apparently in disarray,

:01:16.:01:19.

Portugal's president has called a meeting of the Council of State for

:01:19.:01:29.
:01:29.:01:35.

Friday afternoon and summoned the finance minister to attend. Last

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weekend, tens of thousands demonstrated around Portugal in the

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biggest protests since the general election last year. Social security

:01:46.:01:56.
:01:56.:01:56.

in traditions are to rise to 18% of salaries. -- security contributions.

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The government says it will boost job creations but the changes are

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seen as unfair. TRANSLATION: I am revolted. That is why I have come

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here to fight as my parents did - for freedom. We have to show

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opposition. They are increasing everything and now, we're going to

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show them hour anger. The protests have been followed by strikes and

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state-controlled oil and gas companies and at ports. And these

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are central to the government policies. TRANSLATION: We are on

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strike because of the lack of dialogue from the government and

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its intention to apply new legislation where they intend to

:02:45.:02:55.
:02:55.:02:57.

get rid of 50% of Port workers and replace them with unskilled workers.

:02:57.:03:00.

The Finance Minister hopes Portugal can make a gradual return to the

:03:00.:03:10.
:03:10.:03:12.

debt markets. On Thursday, the government auctioned $2 billion of

:03:12.:03:20.

euro debts. It must be ready to stand on its own feet from next

:03:20.:03:26.

September but many doubt that is possible. I think the good results

:03:26.:03:35.

in the short-term, of the auction, art a positive sign but I did not

:03:35.:03:42.

guarantee a long-term return to the markets. It is an open issue.

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protests have added to the impression that support is

:03:45.:03:50.

dwindling even within the government. His senior advisers

:03:50.:03:56.

were called to a meeting on Friday. The finance minister was asked to

:03:56.:04:01.

attend. Adding to pressure, the protesters will say they will hold

:04:01.:04:06.

a vigil outside the presidential palace. A row is brewing over what

:04:06.:04:10.

would be China's biggest foreign takeover. Shareholders of Canadian

:04:10.:04:13.

oil and gas producer Nexen have approved a takeover by China

:04:13.:04:23.
:04:23.:04:26.

National Offshore Oil Company, or C-NOOC. Not everybody is wild about

:04:26.:04:34.

the idea? Absolutely. The leader of Canada's opposition party has

:04:34.:04:39.

voiced concern about his potential deal, questioning how it would be

:04:39.:04:44.

in the country's interest to sell strategic assets to a foreign state

:04:44.:04:50.

company. But the owners do not agree with the politicians. They

:04:50.:05:00.
:05:00.:05:03.

have voted in favour of the takeover. It is a 61% premium. Its

:05:03.:05:07.

stock, however, has weakened as public opposition appears to be

:05:07.:05:14.

growing. A survey revealing the his opposition to the deal. It could

:05:14.:05:24.
:05:24.:05:29.

lead the government to turn it down. You have the Prime Minister of the

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country are reporting that Chinese investments are also losing support.

:05:36.:05:45.
:05:46.:05:46.

The his discomfort with China making such a major investment. But

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some are promising the deal is attracted to Canada. Listing it

:05:52.:05:59.

share on the Toronto Stock Exchange. Mixed reactions. Today could be a

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big one for the global music industry. According to several

:06:02.:06:04.

reports, EU competition regulators will give the go-ahead for

:06:04.:06:09.

Universal's near $2 billion dollar takeover of rival EMI. But they are

:06:09.:06:11.

expected to demand heavy concessions to stop Universal -

:06:11.:06:15.

already number one in Europe- having too much power over the

:06:15.:06:19.

music business. According to the Wall Street Journal, Brussels will

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require Universal to sell off many of EMI's most treasured record

:06:22.:06:31.

labels and the accompanying global rights. That could see them walk

:06:31.:06:35.

away from the deal. Chris Cooke is Business Editor for CMU, which is a

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UK-based music business news service. We are expecting a major

:06:45.:06:49.

concessions given that universal starting point will be no

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concessions required - which was probably bluff. It could be up to

:06:57.:07:03.

60% of the assets within the European Union which would be a

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quarter or a third of EMI in its entirety. Is it worth their while?

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It is a debate. There was a little bit of a bluff from EMI saying they

:07:18.:07:23.

could walk away. That has seemed incredibly unlikely. Universal has

:07:23.:07:33.

worked and it would be embarrassing, with the apparent company going

:07:33.:07:38.

through some changes, will they make a loss? It seems to be enough

:07:38.:07:42.

interest to buying these bits of EMI that they probably will make

:07:42.:07:48.

back the money they have paid Citigroup to buy EMI in the first

:07:48.:07:58.
:07:58.:08:00.

prize. Will it make universal too powerful? One of their main

:08:00.:08:05.

competitors, Warner Music an Independent record-company us,

:08:05.:08:10.

thinking in the digital space, if I have about a 30% market share, if

:08:10.:08:15.

they bought EMI in its entirety, that would have a 40% market share.

:08:15.:08:20.

What it means is that if you want to launch a digital service, you

:08:20.:08:25.

could almost not launch without its catalogue which gives them an

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incredibly strong hand at the negotiation table. They're already

:08:30.:08:37.

have a strong hand whether it would be stronger is debatable. A mega

:08:37.:08:40.

merger between commodities trading giant Glencore and miner Xstrata

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could be announced as early as today. According to press reports,

:08:43.:08:46.

the boards of both companies held last-minute meetings on Thursday to

:08:46.:08:50.

agree the terms of the $80 billion deal ahead of a deadline set by UK

:08:50.:08:55.

regulators of 7:00am London time on Monday. A Taiwanese firm has been

:08:55.:08:59.

fined half a billion dollars by a US judge for fixing the the price

:08:59.:09:02.

of liquid crystal screens. Two executives at AU Optronics were

:09:02.:09:06.

also given three year prison sentences. AU, which says it will

:09:06.:09:10.

appeal, was charged as part of a wider investigation into an alleged

:09:10.:09:16.

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