Browse content similar to 03/01/2013. Check below for episodes and series from the same categories and more!
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- and the winners Financial News with World Business Report. | :00:16. | :00:20. | |
Hello and welcome to World Business Report. | :00:20. | :00:23. | |
One fiscal cliff avoided - watch out for the next one as Washington | :00:23. | :00:30. | |
prepares to do battle over America's $16 trillion debt. | :00:30. | :00:35. | |
More evidence of a rebound in a china's economy, with the numbers | :00:35. | :00:40. | |
confirming a strong December for the services sector. | :00:40. | :00:45. | |
Do not crispy -- do not repeat our mistakes of the 1930s, a US | :00:45. | :00:48. | |
billionaire tells European leaders white austerity is not the way | :00:48. | :00:58. | |
:00:58. | :01:02. | ||
US stock markets started 2013 with their best day in more than a year, | :01:02. | :01:06. | |
US politicians late on Tuesday. The deal heads off $600 billion worth | :01:06. | :01:09. | |
of tax rises and spending cuts, the so-called fiscal cliff, that | :01:09. | :01:15. | |
economists warned could push the US market euphoria could prove short- | :01:15. | :01:20. | |
lived. The deal, already criticised by the IMF, merely delays $100 | :01:20. | :01:25. | |
billion of government spending cuts until March 1st. And around the | :01:25. | :01:31. | |
same time the US will reach its trillion dollars. The debt ceiling | :01:31. | :01:34. | |
can only be raised after agreement in Congress which means the US | :01:34. | :01:44. | |
:01:44. | :01:45. | ||
could be on the brink of another cliff in a matter of weeks. | :01:45. | :01:48. | |
Here at the New York Stock Exchange, the first day of trading got off to | :01:48. | :01:56. | |
a very cheery start as American here. | :01:57. | :02:01. | |
here. In just eight weeks, American lawmakers must once again attempt | :02:01. | :02:07. | |
to tackle two fiscal related issues. One is the debt ceiling. The other | :02:07. | :02:14. | |
new year dealt with that tax cuts but did not deal with the spending | :02:14. | :02:18. | |
side of things. Lawmakers must face each other around the table again | :02:18. | :02:23. | |
come March. The other issue is the debt ceiling. The US Treasury | :02:23. | :02:30. | |
more money to pay debts. President Obama says he refuses, he does not | :02:30. | :02:35. | |
want the debt ceiling to become a point of negotiation. The | :02:35. | :02:37. | |
Republicans have already indicated that there that there oval | :02:38. | :02:42. | |
for an increase to the debt ceiling if they get more spending cuts and | :02:42. | :02:46. | |
entitlement reform. These all sets the stage for a test of the new | :02:46. | :02:54. | |
Congress and a Test for the new confidence of the financial markets. | :02:54. | :03:02. | |
analyst Louise Cooper. We are relieved that they got a deal in | :03:02. | :03:08. | |
the end but we are looking ahead. That is not that far away? That | :03:08. | :03:13. | |
rally we saw it is a relief rally rather than sustained euphoria. | :03:13. | :03:20. | |
Remember that the stock markets did not really fall on fear of no deal | :03:20. | :03:25. | |
therefore one wonders if they will rally on a mini deal. Sustainably | :03:25. | :03:29. | |
rally. More rally. Morey rally. I wi rally. I wit that that is | :03:29. | :03:34. | |
not the case. Asia is pretty flat. We had not seen a significant fall | :03:34. | :03:39. | |
but it is significantly flat. is interesting that the fear index, | :03:39. | :03:43. | |
the volatility in the American market has fallen quite | :03:43. | :03:47. | |
dramatically over the fast -- past few training sessions. That is | :03:47. | :03:55. | |
significant. I volatility means a investors may be more confident. | :03:55. | :03:59. | |
That is summit watch as we get into the new year and trading volumes | :03:59. | :04:05. | |
increase and people return to their desks. They will have to discuss | :04:05. | :04:11. | |
the debt ceiling, the credit card is max out in the US. They have to | :04:11. | :04:15. | |
come to a political agreement on that. That will mean spending cuts, | :04:15. | :04:23. | |
would it? It seems that the Republicans feel that they had to | :04:23. | :04:27. | |
compromise and they will be looking for paybacks in the next deal. That | :04:27. | :04:35. | |
is the political dimension. It seems that investors, I think, I've | :04:36. | :04:40. | |
starting to get bored with the whole crisis. As with the eurozone | :04:40. | :04:44. | |
crisis, they got bored. They may be getting bored of the fiscal crisis | :04:44. | :04:49. | |
in the US and may be willing to just ignore it. The assumption is | :04:49. | :04:55. | |
that some kind of deal will be down, that the politicians will not | :04:55. | :05:00. | |
commit economic suicide. Because a low interest rates, investors are | :05:00. | :05:05. | |
forced and equities - maybe they were just ignore it. We will speak | :05:05. | :05:09. | |
more about this in about ten minutes. She will return as we look | :05:09. | :05:13. | |
This This fiscal This fiscalama is all of | :05:13. | :05:16. | |
the papers, so we will talk more them. | :05:16. | :05:23. | |
more evidence that the economy there is rebounding significantly. | :05:23. | :05:31. | |
Figures confirm a strong month for the service sector. Happy new year | :05:31. | :05:41. | |
:05:41. | :05:42. | ||
Good news for the manufacturing now. It is a picture that is | :05:42. | :05:47. | |
seemingly across the economy. Is that what people are saying? | :05:47. | :05:51. | |
In things like we are seeing an improvement on both sides of the | :05:51. | :05:59. | |
economy. We're seeing the services sector rising to a four- | :05:59. | :06:09. | |
:06:09. | :06:09. | ||
month high. 56.1 % in the month of reading above 50 indicates that | :06:09. | :06:13. | |
growth is accelerating while a number below 50 is an indication of | :06:13. | :06:19. | |
a slowdown. The fastest-growing services industry has so far | :06:19. | :06:23. | |
weathered the global slowdown much better than the factory sector in | :06:23. | :06:29. | |
will be a major stimulus for the mainland's economic stimulus going | :06:29. | :06:33. | |
forward. Th forward. Tht potential will be coming from the services | :06:34. | :06:39. | |
industry. One of the key drivers for this jumper is the construction | :06:39. | :06:43. | |
industry which supports about 40 other industries. The size on | :06:43. | :06:50. | |
strength de strength deernment restrictions... as you say, | :06:50. | :06:54. | |
combined with manufacturing data, the shows and the revival in the | :06:54. | :07:00. | |
world's second largest economy. To Europe now, where the crisis in | :07:00. | :07:03. | |
the Eurozone has been calmed in recent mont recent montks to the | :07:03. | :07:07. | |
European Central Bank pledging to governments. That has bought those | :07:07. | :07:10. | |
governments some time to get on with their reform efforts. But are | :07:10. | :07:13. | |
they going about it the right way? Definitely not, says influential US | :07:13. | :07:16. | |
publisher Steve Forbes. He told the BBC that European politicians are | :07:16. | :07:26. | |
:07:26. | :07:31. | ||
repeating some of the mistakes the US made in the 1930s. European | :07:31. | :07:38. | |
countries they should realise that what they're doing now in these | :07:38. | :07:41. | |
countries is not much in terms of restructuring. They tried it in | :07:41. | :07:45. | |
Italy and did not get very far. The Germans had not put much pressure | :07:45. | :07:51. | |
on it. When talking about structure are you talking about propping up | :07:51. | :07:57. | |
up up a legal business. If you're an | :07:57. | :08:04. | |
outsider in Italy, it is difficult. We have tried it in Italy. War | :08:04. | :08:10. | |
would be easy, in combination with government assets is reducing the | :08:10. | :08:16. | |
tax burden instead of piling up. Spain has raised the top tax rate | :08:16. | :08:22. | |
22%. The It 22%. The Ite raising it as well. Greece is raising everything | :08:22. | :08:26. | |
and collecting nothing as businesses flee to neighbouring | :08:26. | :08:31. | |
Bulgaria. They must realise that this is not the way ago and going | :08:31. | :08:34. | |
the opposite direction. And then those economies will start to | :08:34. | :08:39. | |
revive and that's it anyway bell built to service their debts. | :08:39. | :08:46. | |
implication is that surely even more savage cuts in public spending | :08:46. | :08:51. | |
programmes which are already giving and politic and politicms. The only | :08:51. | :08:57. | |
way to preserve their programmes is of balancing a Budget, what they're | :08:57. | :09:01. | |
trying to do now is the way they tried to balance budgets in the | :09:01. | :09:04. | |
early 1930s which was piling on taxes which meant you had a | :09:04. | :09:08. | |
contracting economy which make your revenues were always disappointing. | :09:08. | :09:13. | |
Greece is perpetually about run out of cash. Spain is not meeting | :09:13. | :09:18. | |
revenue per -- projections. They must learn that this is not working. | :09:18. | :09:23. | |
The only way to do it is to get a grip -- by but economy. Revenues | :09:23. | :09:33. | |
:09:33. | :09:37. | ||
the US still sluggish, is China the saviour? China will do better this | :09:37. | :09:41. | |
being an engine for the global economy, not enough to pull us out | :09:41. | :09:45. | |
of the morass that we're in. We must and internally, not count on | :09:45. | :09:54. | |
others to pull us out?. Al Jazeera says it's buying Current | :09:54. | :09:57. | |
TV, the struggling US cable channel co-founded by Al Gore. The Qatar- | :09:57. | :10:00. | |
based news network says the deal will give it access to more than 40 | :10:00. | :10:03. | |
million American households, compared to less than 5 million at | :10:03. | :10:05. | |
the moment, putting it in closer competition with US news channels | :10:05. | :10:15. | |
:10:15. | :10:17. | ||
like CNN and Fox. Marcus today. China and Japan are | :10:17. | :10:22. |