25/04/2013 World Business Report


25/04/2013

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to be deployed from July. -- it calls for. Those are the latest

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headlines. Now for the latest financial news.

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Can Britain a boy day triple dip? Figures out soon could show the UK

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back into recession. -- avoided. France's growing unemployment

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crisis. The jobless rate keeps climbing and the President's

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approval rating continues to sink. You are with World Business Report.

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Also in the programme: The South Korean economy grows at its fastest

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pace for two years. We find out why. But first, Britain could be about

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to make economic history Di Resta the wrong reasons. Official figures

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may show the economy slipped back into recession for the third --

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third time, a so called triple-dip recession. It is unprecedented in

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living memory. Most people predict that the UK may record a tiny

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amount of growth, which would spare the Government the disastrous

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headlines. The Chancellor will still be accused of not playing the

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right tools to foster economic growth.

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Once busy workplaces, and the officers like this are now

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monuments to activity that used to drive UK group. Firms have been

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forced to shut up shop after five long years of trying to repair

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financial balance sheets and sell to cash-strapped consumers. Beyond

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the abandoned factories and bad banks, there is a better Britain

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trying to rise above it all. can come in and pick the way you

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want to work. They have tailored their business model, offering

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tenants flexibility in its 14 Business -- buildings, free from

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long leases. Even entrepreneurs are not likely to borrow for the long-

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term. The majority of new businesses that are coming in, that

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are in the technology sector, that are servicing the technology sector,

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this is new media, online, websites, recruitment, we are seeing a lot

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more recruitment businesses. The numbers that we are seeing, the

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recovery is very much in London more so than it is in the regions.

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With more than half of Britain's exports going to the EU, it is no

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surprising that it is being held back by a lack of orders. While it

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is doing better than the eurozone, it is stuck in the middle compared

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to the US. They are not issuing public sector austerity measures as

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aggressively. Large companies could boost UK growth by making quick

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decisions and paying invoices more quickly. If the banks are not

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lending as much as people like, the mac companies could... they are

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sitting on piles of cash. Why not feed it back into the economy and

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that would make a world of difference? The London Olympics

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gave Britain a temporary economic boost, now it is have to work

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harder to bring it back. As soon as we get those GDP numbers

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about the UK economy, we will make sure that we updated. -- update in

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you. The latest figures on unemployment in France are also due

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in a few hours, and if they are as bad as feared, they could be a real

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headache for the President. It surged to a 13-year high at the end

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of last year and it is predicted to go up further, despite election

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pledges to protect jobs and a recent promise to get unemployment

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falling by the end of this year, by reforming the labour market, which

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is seen as the most restrictive in Europe. All of this has been taking

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its toll on his approval rating, just 25%, a record low in modern

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France. Put it in perspective. We have just talked about the UK and

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we will also be talking about Spain. How bad is it in France?

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unemployment has been rising for the last 24 months. It is the

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highest it has been in 14 years. Youth unemployment, below the age

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of 25, is running at about 26%, which is extraordinary. It is

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already a record high and is more than double the overall number up.

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With the economy not showing any growth for last year, with business

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sentiment deteriorating, according to the latest surveys, and with

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companies reporting a 12% drop in sales, it is clear that we have not

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seen the worst. What has Francois Hollande's government got up its

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sleeve to try to tackle this? It is a very common problem. It is indeed.

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The prescription for the eurozone through this crisis is to increase

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its competitiveness. It cannot become more competitive until the

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labour market becomes more flexible. In the short-term, more flexibility

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will mean higher unemployment because they art able to hire and

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fire. But it will also introduce some flexibility into wage setting,

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and that would help to boost full- time employment. Do you think the

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economic reforms will help, and to what degree? They will help in the

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long-term but it is the short-term that the consumers are worried

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about. France is heading into a recession. It has not grown much at

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all for the last several quarters. With another drop in the Jeatt --

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GDP expected, the Social back bash against reform will grow. -- social

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backlash. The longer they wait, the harder it will be to reform the

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economy. It is a very busy day for economics.

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We have had the news from South Korea, to say that it has grown at

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his fastest pace for two years, despite increased tensions and

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hotter competition from the likes of Japan, because the yen has

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weekend and Japanese goods are perhaps a bit cheaper.

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Good to get a bit of good news in the programme. That is right,

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better than expected. The economy is being boosted by a rebound in

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construction, investment, and exports. Exports, which is the

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backbone of the South Korean economy, showed a 3.2% quarter

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expansion, compared to the 1.2% dip in the previous quarter. For now

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the data is likely to downplay the fears over the health of the

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economy, but if you speak with some analysts, they remain quite

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cautious. They say that exports will continue to be fragile.

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Conditions in the eurozone and the US have not improved substantially.

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There have also been fears over the impact of currency fluctuations.

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The currency has risen. It has made the exports more expensive. The yen

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has sharply declined, by almost 20% against the US dollar. With both

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countries competing in similar markets, Korean goods may lose out

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and in turn had the country's overall growth going forward. As a

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result, policy makers had been taking measures to boost domestic

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consumption in an attempt to offset the decline in foreign sales. They

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have unveiled a $15 billion stimulus plan. We will find out if

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it will have an impact on the economy in the future.

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Let's get in some other stories. The bosses of Barclays are holding

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their first annual meeting following last summer's LIBOR at

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scandal which forced out the senior management. It would not be an her

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-- easy ride. One shareholder group says it is opposing the salaries.

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A big day on Wall Street with quarter results from Exxon Mobile

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later. It is the world's largest Lee publicly traded oil company. --

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