Browse content similar to 24/09/2012. Check below for episodes and series from the same categories and more!
Line | From | To | |
---|---|---|---|
Working Chinese factories face a slowdown after a dispute over | :00:05. | :00:15. | |
:00:15. | :00:16. | ||
clerical processes hold Japanese business on the mainland. | :00:16. | :00:24. | |
-- halt. During the weekend, German | :00:24. | :00:26. | |
chancellor Angela Merkel and the French President clashed on the | :00:27. | :00:29. | |
timing of the introduction of oversight of the banking sector in | :00:29. | :00:35. | |
Europe. The leaders were meeting in Germany to celebrate the nation's | :00:35. | :00:40. | |
reconciliation after the Second World War. Francois Hollande called | :00:40. | :00:44. | |
for the banking oversight to be implemented as soon as possible, | :00:44. | :00:51. | |
whereas Angela Merkel says the process needs to be thorough, as | :00:51. | :00:59. | |
she balances Europe, who would like to forge ahead, and Germany, who | :00:59. | :01:07. | |
would like to... The French finance minister on | :01:07. | :01:11. | |
Sunday said he is in favour of giving Greece more time as long as | :01:11. | :01:14. | |
they are sincere on austerity measures. | :01:14. | :01:18. | |
We also have Mario Monte holding a conference on structural reform in | :01:18. | :01:21. | |
Italy. This brings together government ministers, experts and | :01:21. | :01:31. | |
:01:31. | :01:33. | ||
academics to discuss ways to boost competitiveness, growth and jobs. | :01:34. | :01:40. | |
If we start with France and Germany to begin with - the two together | :01:40. | :01:44. | |
for other reasons than the eurozone debt crisis. The media read between | :01:44. | :01:47. | |
the lines and saw more dissension between the two and little | :01:47. | :01:54. | |
agreement. That seems to be the conclusion this morning. There is | :01:54. | :01:59. | |
still a prospect of a compromise. Both countries have an interest in | :01:59. | :02:05. | |
making it possible that banks can receive direct support from the E S | :02:05. | :02:09. | |
M. I think it is just a question of how far that can go. There is a | :02:09. | :02:13. | |
hidden agenda - the German banks have a significant reserve fund | :02:13. | :02:18. | |
already paid in. There is the fear that these reserve funds, which are | :02:18. | :02:22. | |
there to protect German interests, may be used to bailout Spanish | :02:22. | :02:27. | |
banks. I think the fear with the debt crisis is always that the | :02:27. | :02:32. | |
politics gets in the way. It causes unnecessary delays and that causes | :02:32. | :02:37. | |
more pain for Spain and Italy. The interest rate on their debt goes up | :02:37. | :02:42. | |
and up while politicians procrastinate. That's correct, but | :02:42. | :02:46. | |
there are two areas of political endeavour - one is the formation of | :02:46. | :02:51. | |
solidarity mechanisms. The E S M is one of those. On the other hand, | :02:51. | :02:54. | |
the countries themselves which are in trouble have to make efforts | :02:54. | :02:58. | |
themselves as well. There hasn't been that much progress, even | :02:58. | :03:06. | |
though the pain has been felt. This is not necessarily because of | :03:06. | :03:11. | |
austerity, it is more because some areas have imploded. Is it | :03:11. | :03:13. | |
important that the French Prime Minister has said that he feels | :03:13. | :03:16. | |
that Greece should be given more time to implement austerity | :03:16. | :03:22. | |
measures? That puts France against Germany again. Germany has also | :03:22. | :03:25. | |
indicated that it is not totally against more time, but it is | :03:25. | :03:29. | |
against more money. In a way, you can't have one without the other. | :03:29. | :03:34. | |
More time probably means more money. The latest news from the troika, | :03:34. | :03:39. | |
which has been in Athens to investigate the state of progress, | :03:39. | :03:42. | |
they say Greece needs possibly twice as much extra money on top of | :03:42. | :03:47. | |
what it has received, in order to plug the gap. Wartime means more | :03:47. | :03:50. | |
money, but the German government doesn't want to go back to its | :03:50. | :03:55. | |
parliament to get more approval for a third bailout package -- more | :03:55. | :04:01. | |
time. And in Italy today a big conference to try to work out how | :04:01. | :04:09. | |
to afford that expending Italy's debt burden. -- how to move forward | :04:09. | :04:19. | |
:04:19. | :04:20. | ||
without expanding. Mario Monty has left it open - what he wants to | :04:20. | :04:27. | |
pursue. He hasn't had much fun so far. We shouldn't forget that | :04:27. | :04:31. | |
Italy's deficit is much less than that of other countries, including | :04:31. | :04:38. | |
the UK. In a way, he can at least say that they can move forward. | :04:38. | :04:43. | |
Thank you very much. Let's take a look at Europe's | :04:43. | :04:47. | |
luxury goods sector. It has been on tenterhooks ever since Burberry | :04:47. | :04:51. | |
issued a warning to shareholders earlier this month, saying that | :04:51. | :04:55. | |
sales in China have slumped. It is the new rich of China who has kept | :04:55. | :04:59. | |
the sector a float. The fear is that even they have now started to | :04:59. | :05:04. | |
watch their spending. Today, Prada will release its second quarter | :05:04. | :05:07. | |
earnings and investors will scrutinise the figures to see | :05:07. | :05:11. | |
whether Chinese slowdown has been done. | :05:11. | :05:15. | |
In the past week, the stars of Italy's fashion industry have had a | :05:16. | :05:24. | |
chance to dazzle the world. Trying to get the at -- tempt consumers | :05:24. | :05:31. | |
with thousands of new designs. There is a race for luxury items | :05:31. | :05:35. | |
amongst the new rich of China. Prada has been one of the winners. | :05:35. | :05:41. | |
Last yet it said its sales in China had risen by 40% over the year. But | :05:41. | :05:44. | |
on 10th September, British Red Bairbre warned that its sales in | :05:44. | :05:54. | |
:05:54. | :05:55. | ||
China were stalling. -- of British company Burberry. Other luxury | :05:55. | :05:59. | |
goods also fell by about 5%. That is a sign of investor doubt about | :05:59. | :06:05. | |
the luxury sector as a whole. a big company warns about | :06:05. | :06:08. | |
profitability and sales, the fear is that the whole sector is | :06:08. | :06:11. | |
unravelling. The emerging markets have been been drivers for these | :06:11. | :06:15. | |
businesses over the last couple of years as the new wealthy find these | :06:15. | :06:18. | |
brands very aspirational. There are fears that economic will growth is | :06:18. | :06:22. | |
slowing there, so the growth for these companies will come to a stop | :06:22. | :06:27. | |
as well. Burberry's poor results may not mean bad news for others. | :06:27. | :06:31. | |
Burberry is different to other brands because it has only recently | :06:31. | :06:37. | |
climbed into this category. Before it was seen somewhere at the high | :06:37. | :06:41. | |
end of the popular retail market. It is now no surprise that it is | :06:41. | :06:44. | |
the first to fall out of favour with Chinese luxury buyers. | :06:44. | :06:49. | |
Established luxury brands like Prada will keep their love for | :06:49. | :06:55. | |
longer. You might argue that Prada will stay for longer and that | :06:55. | :07:00. | |
people will increasingly say - if you want through Western luxury | :07:00. | :07:05. | |
there are only a few brands that really matter, and Prada is one of | :07:05. | :07:10. | |
them. Prada has opened no less than 25 stores in China. Whether or not | :07:10. | :07:14. | |
the Chinese economy is slowing, it must continue making big sales | :07:14. | :07:20. | |
there for that investment to pay off. | :07:20. | :07:23. | |
Toyota has resumed operations in China after protests over | :07:23. | :07:27. | |
territorial disputes caused disruption for Japanese businesses | :07:27. | :07:37. | |
:07:37. | :07:40. | ||
in China. Toyota is back on track? | :07:40. | :07:44. | |
Yes, but the president of the car giant has said that Japanese auto | :07:44. | :07:49. | |
sales in China will be damaged next month as a result of these ongoing | :07:49. | :07:54. | |
tensions between the Japanese and the Chinese. Last week car | :07:54. | :08:00. | |
companies from Japan were attacked and some production was stopped. | :08:00. | :08:05. | |
And eastern city in China is where Japan's largest carmakers all | :08:05. | :08:09. | |
reported attacks on dealerships. They suspended production at | :08:09. | :08:15. | |
manufacturing facilities. Honda has resumed production. Other Japanese | :08:15. | :08:21. | |
businesses have started resuming operations as well. This includes | :08:21. | :08:31. | |
:08:31. | :08:33. | ||
Sony.... Chinese sales from last week are expected to be about 20% | :08:33. | :08:40. | |
less for many Japanese retailers. Let's show you the market quickly. | :08:40. | :08:44. | |
We have losses across the board in Asia. That is partly to do with the | :08:44. | :08:49. | |
discord coming out of the meeting between Angela Merkel and Francois | :08:49. | :08:56. | |
Hollande. This has caused the euro to fall a little bit. There is also | :08:56. | :09:00. |