Browse content similar to 01/03/2013. Check below for episodes and series from the same categories and more!
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of prayer. Those of the letters headlines. Time now for the money | :00:10. | :00:19. | |
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Accidental austerity as US lawmakers are paralysed | :00:24. | :00:33. | |
bipartisanship. A $5 billion is cut from the government's pocket. | :00:33. | :00:41. | |
A refuge for the wealthy no more as Switzerland is to rein in a fat cat | :00:41. | :00:47. | |
pay in a vote this weekend. Good morning. Welcome to World | :00:47. | :00:51. | |
Business Report. In just a moment, will have more on the Swiss Eddie | :00:51. | :00:58. | |
fat cat movement. First, there is sweeping austerity cuts in the US. | :00:59. | :01:06. | |
$85 billion worth of cars are said to go into effect today. As the | :01:06. | :01:10. | |
partners and ship paralyses Washington, the sequester will cut | :01:10. | :01:14. | |
deeply into defence spending. In a town in Virginia, almost half of | :01:14. | :01:18. | |
the local economy is dependent on federal funds which are now at risk. | :01:18. | :01:22. | |
We report on how government wrangling is hurting this small | :01:22. | :01:25. | |
town. America's politicians are not | :01:25. | :01:29. | |
popular among the lunchtime crowd here in the junior. Washington may | :01:29. | :01:33. | |
only be a three-hour drive away but they do not think much here of how | :01:33. | :01:40. | |
the nation's capital is handling the latest Budget showdown. How can | :01:40. | :01:44. | |
Congress let that happen? You cannot let all of these people get | :01:44. | :01:50. | |
laid off. The economy is recovering. Other countries are looking to last | :01:50. | :01:55. | |
to see what we do. They are making judgements about how we have a | :01:55. | :01:59. | |
allowed our failures. As home to the main shipyard for the US Navy | :01:59. | :02:03. | |
and the East Coast fleet, the region is exposed to Budget cuts | :02:03. | :02:09. | |
that could shave 0.5% of American growth. Behind me is a retired | :02:09. | :02:13. | |
battleship. It is another kind of the forced retirement that is | :02:13. | :02:17. | |
worrying people in the region. Unless a deal is done to avoid | :02:17. | :02:22. | |
these Budget cuts, then defence workers are forced to take unpaid | :02:22. | :02:27. | |
leave. As many as 90,000 people could be affected in Virginia alone. | :02:27. | :02:31. | |
Private shipbuilders in this region would also be forced to lay off | :02:31. | :02:35. | |
workers. It is not just the military that is worried about | :02:35. | :02:39. | |
these cuts. School life were all for be affected. Fewer teachers | :02:39. | :02:43. | |
will mean a larger class sizes and programmes designed to help the | :02:43. | :02:47. | |
neediest children will also be hit. That means a tough decisions ahead | :02:47. | :02:52. | |
for those on the local school board. It could have impacts across the | :02:52. | :02:57. | |
board. We will have to determine how we are going to provide the | :02:57. | :03:01. | |
same level and quality of support and education structure for those | :03:01. | :03:09. | |
children, given that another $3 million are lost. Even the mayor | :03:09. | :03:14. | |
cannot see any light at the end of the tunnel. I'm already getting | :03:14. | :03:23. | |
letters from defence contractors. I have won the received yesterday. | :03:23. | :03:26. | |
The leader of General Dynamics may lie off hundreds of workers. | :03:26. | :03:32. | |
Another has sent me a letter talk about 1,600 job reductions. They | :03:32. | :03:38. | |
are getting these daily. This will be felt immediately. Back at the | :03:38. | :03:42. | |
diner, they know that this is the beginning of America's politicians | :03:42. | :03:52. | |
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continue to get to grips with their Budget battles. | :03:55. | :03:59. | |
I am now joined by a senior market analysis. How one markets reacting | :03:59. | :04:04. | |
to this? The markets are quite sanguine about it and have been for | :04:04. | :04:10. | |
some time. The Dow was at a five- year high. I think that they are | :04:10. | :04:13. | |
sanguine are simply because the Fed is pumping a $5 billion per month | :04:13. | :04:20. | |
into the US economy. The effective ad $5 billion of sequester cuts for | :04:20. | :04:26. | |
the year it is probably a pinprick. This is political risk. This is | :04:26. | :04:36. | |
:04:36. | :04:38. | ||
part as a chip at the very most basic level. -- partisanship. As | :04:38. | :04:42. | |
much goes on, the pressure will increase was some sort of | :04:42. | :04:47. | |
resolution. We have seen the effect from the fiscal cliff. There will | :04:47. | :04:54. | |
be an effect. It will impact US growth. | :04:54. | :04:58. | |
Swiss voters are going to the polls this weekend to decide on measures | :04:58. | :05:03. | |
which would strictly limit the salaries for top managers and ban | :05:03. | :05:06. | |
and golden handshakes. The proposals known as the Fat Cat | :05:06. | :05:10. | |
initiative come in the wake of catastrophic losses for big Swiss | :05:10. | :05:14. | |
businesses such as UBS. Continued with continued high salaries and | :05:14. | :05:21. | |
bonuses. Once a byword for reliability and | :05:21. | :05:25. | |
caution, some of Switzerland's top companies have had a bumpy ride in | :05:25. | :05:30. | |
recent years. Multi-billion-dollar losses, especially at the banking | :05:30. | :05:35. | |
giant UBS, had gone hand-in-hand with multi-million-dollar salaries | :05:35. | :05:40. | |
for top managers. Now voters will decide on proposals to limit pay | :05:40. | :05:45. | |
for those that the Swiss had begun to call fat cats. TRANSLATION: It | :05:45. | :05:50. | |
is a rip-off and it is damaging splits economy. It is not about | :05:50. | :05:53. | |
high salaries in general but excessive compensation -- the Swiss | :05:53. | :05:59. | |
economy. Especially for banks that I mismanaged. The fat-cat proposals | :06:00. | :06:05. | |
would give shareholders a veto over manager salaries and ban golden | :06:05. | :06:08. | |
handshakes all together. The Swiss government is uncomfortable with | :06:08. | :06:17. | |
the idea. They -- so our business leaders who has spent $800 million | :06:17. | :06:22. | |
on the ad campaign fought know. would be a bad signal for | :06:22. | :06:28. | |
Switzerland as a business location and we are concerned about that | :06:28. | :06:36. | |
because it is an international issue. We think that it will be | :06:36. | :06:41. | |
very strict. Opinion polls show that almost 66% of voters will say | :06:41. | :06:47. | |
yes to reining in the fat cats. The recent proposed pay-off of seven $8 | :06:47. | :06:53. | |
million for outgoing chief -- for an outgoing chief has an did many | :06:53. | :06:59. | |
even though he finally agreed not to take the money. The Swiss are | :06:59. | :07:02. | |
traditionally very protective of their businesses and banks but it | :07:02. | :07:07. | |
seems as though many voters I do want more control over the salaries | :07:07. | :07:11. | |
of the bosses. If the opinion polls are correct, those fat cats could | :07:11. | :07:21. | |
:07:21. | :07:26. | ||
be facing a diet. Some are then used: -- Some other | :07:26. | :07:29. | |
news: Once the darling of the start-up world, Groupon founder | :07:29. | :07:32. | |
Andrew Mason was fired today after yet another round of disappointing | :07:32. | :07:35. | |
earnings this week. Groupon has lost 75% of its value since its | :07:35. | :07:38. | |
public debut just over a year ago. In a letter to employees, Mason | :07:38. | :07:41. | |
said the change would give the company room to break bad habits. | :07:41. | :07:44. | |
Japan's unemployment rate edged down to 4.2% in January while the | :07:44. | :07:46. | |
struggling economy remained mired in deflation. The jobless rate | :07:46. | :07:52. | |
slipped to 4.2% from a revised 4.3% in December. The figure was in line | :07:52. | :08:02. | |
:08:02. | :08:03. | ||
with economists' expectations. For the third straight month, | :08:03. | :08:06. | |
prices in Japan have declined, a worrying sign for the country's new | :08:06. | :08:16. | |
:08:16. | :08:17. | ||
government. Deflation is a problem for Japan? | :08:17. | :08:21. | |
It is a problem that Japan knows very well. It has been caught in | :08:21. | :08:25. | |
the spiral for the best part of a decade. The numbers today really | :08:25. | :08:30. | |
highlight the problem facing Japan's Prime Minister and the new | :08:30. | :08:32. | |
governor of the central bank his appointment was announced just | :08:32. | :08:37. | |
yesterday. Consumer prices including food -- excluding food | :08:37. | :08:42. | |
fell 0.2% in January. The third straight month of decline. Those | :08:43. | :08:47. | |
falling prices have been a big hurdle to Japan's bid to boost | :08:47. | :08:50. | |
domestic consumption. It is difficult to get people to buy | :08:50. | :08:53. | |
things when prices are falling because they believe that if they | :08:53. | :08:58. | |
put it off, then they can get a better deal chip -- later on. If | :08:58. | :09:02. | |
prices rise, buyers are not inclined to delay a purchase. That | :09:02. | :09:06. | |
is why Japan's new government has said that creating inflation is key | :09:06. | :09:12. | |
to reviving the sluggish economy. Especially with exports being one | :09:12. | :09:15. | |
of the biggest growth drivers and they are much slower because they | :09:15. | :09:19. | |
have been hit by the global slowdown in demand. The question is | :09:19. | :09:24. | |
on how you drive that domestic consumption. The news on these | :09:24. | :09:27. | |
falling prices is just how big a challenge it will be to find the | :09:27. | :09:33. | |
answer. That is the key question. Many | :09:33. | :09:39. | |
thanks. Let us look at how markets are | :09:39. | :09:43. | |
doing at this time of day. In Europe, that is how they finished | :09:43. | :09:50. | |
the session on Thursday. Across the board. Let us look at how they did | :09:50. | :09:55. | |
in the US. A different picture. I cannot bring the stocks in Asia but | :09:55. | :10:00. | |
I can tell you that there were currently mixed. Confused numbers | :10:00. | :10:03. |