08/05/2013 World Business Report


08/05/2013

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headlines from BBC World News. Now for the latest financial news and

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World Business Report. The great solar panel squeeze - the European

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Union gets ready to slap import duties on solar panels made in

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China. But is it too little too late to save European manufacturers.

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And Toyota's poised to announce its profits have quadrupled thanks to

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strong sales in the US and a weak Japanese yen. Welcome to World

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Business Report. Also in the program the luxury electric car

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that can match the speed of a Ferrari but at a fraction of the

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cost to run. We'll take a test drive. The EU is poised to slap

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heavy import duties on solar panel equipment made in China. This could

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turn into one of the biggest trade rows of recent years. Trade

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Commissioner Karel De Gucht will tell his fellow EU commissioners

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that Brussels should levy the tariffs to guard against Chinese

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production that quadrupled between 2009 and 2011 - it's now greater

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than the entire global demand. Chinese companies have captured

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more than 80% of the European market forcing dozens of European

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firms to close down as a result. With me now is Kash Burchett,

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Europe analyst at IHS Energy. With talk about these move by

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commissioners in Brussels to protect the European manufacturers,

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is it too late? It is for some of these firms which have been forced

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into insolvency. The nature of the industry, there is a feast and

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famine cycle tour. When governments announced they were going to

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subsidise a Solar industry, there was a growth and then only months.

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The Germans were struggling against the Chinese competition. Many of

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the Chinese firms, according to Washington and Brussels, have been

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able to sustain their coffers because of the easy loans. But can

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we keep the company is going forever? The horse has bolted

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already. The Chinese government are saying that there will be

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consolidation not because of any action by the EU for the WTO, but

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it is unsustainable to keep cropping up these firms on a life-

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support. From the point of view of the EU, if they agreed to slap

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tariffs on the Chinese, what impact is that going to have? It is good

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news for the manufacturers of solar panels in Germany. Less for the

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installers because they will be paying higher prices. Looking to

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the future, it is difficult to see how the Chinese will react. The

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Green lobby in Germany, now that Angela Merkel is willing to drive

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these policy fruit - China is an important trading partner but they

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are willing to antagonise them because of the power of the Green

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lobby due to the elections in September. China needs Europe as

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much as Europe needs China. With the European economy in a difficult

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position, many are looking to China? That is for large produce. A

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lot of European governments are looking for the Green collar said.

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Finding an engine for growth and jobs. They have different

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challenges and balances. Thank you for your time. We will keep an eye

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on the story as it develops today. It is a hot topic for discussion in

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Brussels. It's a tough road for makers of electric cars in the US.

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Just this week, an American manufacturer filed for bankruptcy

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and analysts say others are on the brink. Consumers are interested but

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not quite willing to give up the ease of cars that run on gasoline.

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But one company stands out - Tesla is a maker of sporty battery

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operated vehicles and is racing past its competitors. Company

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shares are up 50% hitting a record high this week and when it reports

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it's earnings today Tesla is expected to make its first profit.

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-- its. Samira Hussain hit the road to find out the secret of its

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success. I'm about to step into a car that is unlike most others on

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the road. You do not hear anything when I start it. It is that silence

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that makes that Chi Uni. And 80,000 dollar Electric on a Mobile. --

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that makes this can't unique. nice to drive. You're not

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compromising on that, you have a safe and could come but at the same

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time the EU are doing your part in saving the earth. -- you are doing

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your part. 4750 models have been sold, exceeding their forecasts for

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the quarter. By selling more of these cars, Tesla has been able to

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pull ahead of other electric car manufacturers. While Tesla may be

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able to turn a profit, the road ahead is still bumpy for electric

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car manufacturers. They are interested but they're not willing

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to make the purchase quite yet until the technology proves itself

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as being able to charge quickly and go further. Right now, gasoline is

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so easy. Here, you need to stop for an hour or an hour-and-a-half. Once

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that comes down there will be more viable. For buyers, hybrids - cars

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there is both gasoline and electricity - are often a better

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and more practical option. In the US, one million hybrid vehicles

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have been sold. Less than 100,000 pure electric. That is a huge

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difference. By when unearth regulations are implemented, it

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will grow. But the bigger opportunity is the hybrid vehicle.

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Hybrids may be a happy medium but not for all. This guy is just

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beautiful -- this car is just beautiful. They are hoping more

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people will think so also. Tell us what you think. Later today the

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world's best-selling carmaker, Toyota, is expected to post

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operating profits nearly four times as high as last year. Among Japan's

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big 3 automakers - Toyota, Nissan and Honda - analysts see Toyota as

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the most likely to benefit from a weakening yen because it has the

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highest ratio of production in Japan, more than half of which is

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exported. At last some good news for Toyota. Lately it has been a

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flurry of difficult headlines for them. They have had several years

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of difficult headlines, starting in 2008 when they had record profits

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for so many years then there was a collapse in profits. Then they had

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a scandal or a real problem with technical faults in the US and a

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massive recall. They have now come back from that quite strongly. We

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are expecting to see these figures of between $13 billion in operating

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profits for 2000 and well which is double what people were expecting.

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A really strong performance -- 2012. There is up on the back of two

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things - the weakening of the yen which has increased their profit

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comeback of the US market an leap in the Toyota sales - up 27% last

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year. It is important in seeing that comeback in the US, the timing

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of it, considering it has had at half time in China another import

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market? It has had a very tough time in China particularly at the

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end of last year when there was a lot of Japanese violence in China

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over eight territorial and political dispute which had at

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knock-on effect on Japanese Prime us. Toyota or fell dramatically in

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the last quarter of last year. Those have started to come back but

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slowly. If you look at the last two months, much sales in China and

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down 11%, April sales up 6%. We are seeing it slowly, slowly coming

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back. Japanese manufacturers like Toyota are still suffering badly in

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the Chinese market. We was big you again when we get the results. We

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are seeing lots of record levels hit on significant areas. For

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example, Japan is well above. The yen is a little bit stronger

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compared to this time yesterday it. The Dow closed about 15,000

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yesterday. You can see the market's continuing to rally. A story

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boosting things is that China exports rose much more than

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