Browse content similar to 05/11/2012. Check below for episodes and series from the same categories and more!
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family after she looked at a boy. Those are the latest headlines from | :00:02. | :00:12. | |
:00:12. | :00:15. | ||
BBC World news. Now for the latest Hello and a warm welcome. You're | :00:15. | :00:19. | |
with World Business Report. I'm Sally Bundock. The headlines: | :00:19. | :00:22. | |
Making France more competitive. The government gets a high level report | :00:22. | :00:25. | |
today, but it might not like the contents. A key week for Greece, | :00:25. | :00:28. | |
parliament votes on more austerity and reform to the labour market, | :00:28. | :00:37. | |
unions plan massive demonstrations. Japan's Toyota gets set to issue | :00:37. | :00:47. | |
:00:47. | :00:49. | ||
higher forecasts for profits Good to have you with us. France | :00:49. | :00:53. | |
has asked one of its most respected businessmen to find out how to make | :00:53. | :00:56. | |
the country more competitive. Today Louise Gallois, the former head of | :00:56. | :00:59. | |
Airbus owner, EADS, delivers his report to the government. His | :00:59. | :01:01. | |
recommendations are expected to include rethinking the country's | :01:01. | :01:06. | |
controversial 35-hour working week. But it seems the government is | :01:06. | :01:10. | |
already trying to distance itself from his ideas. Maddy Savage | :01:10. | :01:20. | |
:01:20. | :01:22. | ||
For workers here at one of Peugeot's factories the word | :01:22. | :01:26. | |
competition is one they have heard a lot recently. Two weeks ago their | :01:26. | :01:30. | |
bosses accepted the first date bail-out for France's car industry | :01:30. | :01:36. | |
since the start of the financial crisis. -- state bail-out. There | :01:36. | :01:41. | |
has been a meltdown in the steel industry. This plant in eastern | :01:41. | :01:47. | |
France used to be a key supplier for countries across Europe but it | :01:47. | :01:51. | |
has been closed. The demand for steel is down and those buying are | :01:51. | :01:55. | |
going elsewhere. The government has admitted this is part of a national | :01:55. | :02:02. | |
problem with competitiveness. need to sort out the finances and | :02:02. | :02:06. | |
the economy. We want to have a stronger economy that can be more | :02:06. | :02:10. | |
innovative and has stronger exports. It needs to hold its own on the | :02:10. | :02:16. | |
world market and in particular on the European market. Earlier this | :02:16. | :02:20. | |
year businessman Louis de Loire, who used to run the aerospace group | :02:20. | :02:25. | |
A E D S, was asked to brainstorm solutions. His report is expected | :02:25. | :02:30. | |
to suggest lower welfare payments for employers and longer hours for | :02:30. | :02:35. | |
employees. Last week the country's Prime Minister hinted the | :02:35. | :02:38. | |
government would consider extending the working week. But he quickly | :02:38. | :02:44. | |
backtracked during a heated debate in Parliament. TRANSLATION: I'm | :02:44. | :02:48. | |
going to disappoint you. My position is and always has been, | :02:48. | :02:53. | |
and that is why I always oppose your policies, the legal limit | :02:53. | :02:57. | |
should be 35 hours. This won't change as long as the left is in | :02:57. | :03:01. | |
power. When ministers discuss the full report on Tuesday, the speed | :03:01. | :03:07. | |
of any reforms they agree with is likely to be a key issue. Rushing | :03:07. | :03:11. | |
changes to France's main industries is something Francois Hollande says | :03:11. | :03:16. | |
he is keen to avoid. But his critics say the country needs to | :03:16. | :03:23. | |
act quickly to stop further investments being driven abroad. I | :03:23. | :03:31. | |
know I have said this before but It's a crucial week for Greece as | :03:31. | :03:33. | |
the government attempts to drive through budget savings and reforms | :03:33. | :03:36. | |
that will keep its international lenders happy. Today a new | :03:36. | :03:38. | |
austerity package will be presented to parliament. It amounts to $17 | :03:38. | :03:41. | |
billion worth of cost cuts and tax increases. It also includes reforms | :03:41. | :03:46. | |
to the labour market that will make it easier to hire and fire staff. | :03:46. | :03:50. | |
Parliament is expected to vote on Wednesday. Meanwhile Greece's main | :03:50. | :03:53. | |
public and private sector unions are planning a 2-day strike | :03:53. | :03:57. | |
starting on Tuesday to protest against the legislation. Sony | :03:57. | :04:00. | |
Kapoor is the managing director of the think-tank Re-Define. He joins | :04:00. | :04:09. | |
us from Berlin. Nice to see you, Sony. It is not going to go without | :04:09. | :04:13. | |
a fight. But do you think they will manage to get these latest | :04:13. | :04:17. | |
austerity measures through Parliament on Wednesday? Given how | :04:17. | :04:23. | |
desperate things are and how the country is more or less seeing the | :04:23. | :04:28. | |
fact ring of the social and economic fabric, things will pass - | :04:28. | :04:33. | |
- fracturing. But not without a fight, as you said. In terms of how | :04:33. | :04:38. | |
things are, we have got two days of strike action starting tomorrow, | :04:38. | :04:42. | |
and you say the pressure on everyone in Greece is at the utmost | :04:42. | :04:49. | |
now, isn't it? Completely. We are basically stuck in a trap where the | :04:49. | :04:53. | |
creditors and the European partners don't trust the Greek government | :04:53. | :04:58. | |
and the Greek people to deliver on the reforms. And hence they want to | :04:58. | :05:03. | |
continue to push them close to the edge, so things are desperate and | :05:03. | :05:07. | |
there's an incentive to reform. The problem is this strategy also means | :05:07. | :05:12. | |
there's a large amount of economic uncertainty driving investment away, | :05:12. | :05:17. | |
it stops people spending, and it is sharply reducing any revenue that | :05:18. | :05:21. | |
might arise from privatisation because the economic prospects are | :05:21. | :05:26. | |
looking so gloomy. We are stuck in this trap where the loss of trust | :05:26. | :05:31. | |
has basically pushed us into a policy position which is | :05:31. | :05:36. | |
undermining the Greek economy in a very substantial way, and is eating | :05:36. | :05:41. | |
away at the social and political fabric. As you say, politicians in | :05:41. | :05:45. | |
Greece and lenders to Greece are doing everything they can to stop | :05:45. | :05:53. | |
it from exiting the euro. But is the costs too high now? -- the cost. | :05:53. | :05:58. | |
It depends on for whom. You could possibly imagine a scenario where | :05:58. | :06:03. | |
over a substantial length of time, let's say ten years, if Greece left | :06:03. | :06:09. | |
the euro on terms, which meant that the debt burden was reduced | :06:09. | :06:15. | |
completely 20, it could potentially be good for Greece. But under no | :06:15. | :06:20. | |
scenario is the total cost of an exit less than the total benefits | :06:20. | :06:26. | |
that might arise. No matter what scenario you think of the total | :06:26. | :06:31. | |
cost borne by not just Greece but also the European partners it has | :06:31. | :06:35. | |
will be very substantial. It remains a bad idea for everybody | :06:35. | :06:39. | |
involved. Sony, thank you for joining us. Of course there's a lot | :06:39. | :06:42. | |
more to discuss with Greece and we will keep on the subject through | :06:42. | :06:47. | |
the week. Let's now look at the Japanese car maker, because they | :06:47. | :06:51. | |
are having a rough time at the moment partly due to a political | :06:51. | :06:55. | |
dispute between China and Japan hitting sales of cars in China. | :06:55. | :07:00. | |
Today we get an update from Japan's biggest car maker, Toyota or. We | :07:01. | :07:07. | |
can go now to Singapore. -- Twitter. What is Toyota likely to say? -- | :07:07. | :07:13. | |
Toyota. Good things, Sally. In spite of the problems with China, | :07:13. | :07:18. | |
which have hit sales to the mainland, Toyota has actually said | :07:18. | :07:22. | |
it will issue a higher forecast according to Japanese media reports. | :07:23. | :07:27. | |
It is likely to say that sales were driven up by sales to North America | :07:27. | :07:31. | |
and south-east Asia in particular, which will help to offset the | :07:31. | :07:37. | |
decline in China. Expectations are that Toyota will tweet their profit | :07:37. | :07:42. | |
forecasts higher, possibly tripling their quarterly profit. It will be | :07:42. | :07:46. | |
releasing those profits in about an hour. The shares rose to a one- | :07:46. | :07:50. | |
month high after those media reports, they are still rising as | :07:50. | :07:56. | |
well compared to a slight decline for the broader market. Alice are | :07:56. | :08:00. | |
forecasting calls for Japan's biggest carmaker to have earned | :08:00. | :08:05. | |
profits up to three times higher from a year ago. -- analysts are. | :08:05. | :08:10. | |
That is when it was reeling from the tsunami and the earthquake. | :08:10. | :08:14. | |
Toyota of course proving somewhat more resilient than a lot of their | :08:14. | :08:19. | |
rivals, the likes of Nissan for example, and Honda Motor, which cut | :08:19. | :08:23. | |
its forecast last week. Both of them are more reliant on sales to | :08:23. | :08:29. | |
China than Toyota or is. But having said that China did account for 12 | :08:29. | :08:36. | |
% of total's global sales last year, that is well below Nissan's 27 % | :08:36. | :08:42. | |
and Honda's 20 %. -- Toyota's global. But sales halved after | :08:42. | :08:51. | |
those followed -- those protests in China. The full impact will not be | :08:51. | :08:57. | |
felt in the current quarter, it will only be in the 4th quarter. | :08:57. | :09:02. | |
Toyota has 7% of its market share in China. That of course is the | :09:02. | :09:06. | |
world's biggest car market. Of cost this year it has seen better sales | :09:06. | :09:13. | |
in the US, which is Toyota's biggest market -- of course. As | :09:13. | :09:16. | |
well as south-east Asia. In the first nine months of the year | :09:16. | :09:23. | |
Toyota sold over 7 million vehicles, that is more than any other car | :09:23. | :09:27. | |
maker, and it could regain their top spot in the world when official | :09:27. | :09:32. | |
numbers are out. Thank you for joining us. Some other business | :09:32. | :09:38. | |
stories now. Apple paid tax at a rate less than 2% on its profits | :09:38. | :09:43. | |
made outside the United States. In the end of the year to September it | :09:43. | :09:50. | |
made $37 billion, but paid tax of $713 million. Like other | :09:50. | :09:54. | |
multinationals, Apple uses legal methods to ship its earnings around | :09:54. | :09:58. | |
the world to minimise their tax bill. India's second biggest | :09:58. | :10:06. | |
private airline Jet Airways has recorded a quarterly loss of $80 | :10:06. | :10:12. | |
million. They have been boosted by problems with Kingfisher, which was | :10:12. | :10:17. | |
grounded as their staff refused to work. And the animated movie topped | :10:17. | :10:21. | |
the North American box-office over the weekend, it took $49 million, | :10:21. | :10:30. | |
the biggest opening weekend for a Disney animation. Markets in Asia | :10:30. | :10:35. | |
are relatively nervous today. It will probably remain so for most of | :10:35. | :10:38. |