Browse content similar to 09/05/2013. Check below for episodes and series from the same categories and more!
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Thursday. Those are the latest headlines from | :00:02. | :00:06. | |
BBC News. Now for the latest financial news, | :00:07. | :00:16. | |
:00:17. | :00:22. | ||
World Business Report. Wall Street marches on to new | :00:22. | :00:25. | |
record highs but are stock markets living on borrowed time? | :00:25. | :00:29. | |
After thousands of job cuts and billions of dollars of losses, Sony | :00:29. | :00:39. | |
:00:39. | :00:43. | ||
is poised to return to profit. Welcome to World Business Report. | :00:43. | :00:46. | |
Also in the programme: South Korea's central bank announces a | :00:46. | :00:51. | |
surprise cut in interest rates. We will have the latest on that. | :00:51. | :00:55. | |
Wall Street's record-breaking run continues but are we heading for a | :00:55. | :01:01. | |
fall? The S&P 500 index closed last night and yet another all-time high | :01:01. | :01:05. | |
for the fifth day in a row. A new record high for the DOW Jones as | :01:05. | :01:12. | |
well. Let's have a look at the closing numbers so you can see | :01:12. | :01:19. | |
where they ended the day. The broader market, the DOW Jones and | :01:19. | :01:27. | |
the S&P 500. The Nikkei in Japan is still hovering around a five-year | :01:27. | :01:34. | |
hire and the DAX is remaining high. Where is the optimism coming from? | :01:34. | :01:37. | |
Not from the stage of the global economy because growth this week to | :01:37. | :01:45. | |
say the least in Japan and the USA and it is virtually non-existent in | :01:45. | :01:50. | |
Europe. In previous slumps, in 1974, | :01:50. | :01:55. | |
economic slowdown prompted investors to sell shares. Prices | :01:55. | :02:03. | |
began to rise as the world economy revived. In 2013 it is not so. The | :02:03. | :02:07. | |
DOW Industrial Average has risen nearly 15% since the start of the | :02:07. | :02:13. | |
year. Japan's Nikkei has risen by around 37% up and the FTSE is up as | :02:13. | :02:23. | |
well. The US economy is estimated to be growing at 2.5% a year. | :02:23. | :02:28. | |
Exuberance could not be the driving factor so what is? If we are | :02:28. | :02:33. | |
entering in a period where we expect to anaemic growth for five- | :02:33. | :02:38. | |
ten years and we expect interest rates to remain low for that period, | :02:38. | :02:43. | |
we expect the bond markets to have healed satire very Laura. The | :02:43. | :02:51. | |
earnings yield on equities becomes more and more attractive. Some | :02:51. | :02:54. | |
stockbrokers think share price indexes in London and New York | :02:54. | :03:04. | |
:03:04. | :03:09. | ||
could rise by a further 20-30% over the next two months. But what are | :03:09. | :03:15. | |
the risks it will collapse again? The biggest risk will be | :03:15. | :03:19. | |
disappointment in US economic recovery more than an expected | :03:19. | :03:25. | |
slowdown in Chinese goas, something going wrong in the eurozone Ward | :03:25. | :03:29. | |
general investor sentiment starting to wonder if we have come too far | :03:29. | :03:35. | |
too fast in the first few months of this year. One thing that could | :03:35. | :03:40. | |
really harm the share prices is if leading economies like America | :03:40. | :03:45. | |
start to motor again. Governments will start to increase interest | :03:45. | :03:48. | |
rates and that would make other investments look much more | :03:48. | :03:55. | |
attractive than shares. That is a story we will be | :03:55. | :04:00. | |
discussing more women look at the papers. The record highs do feature | :04:00. | :04:07. | |
in the newspapers around the world. We have seen a surprise cut in | :04:07. | :04:15. | |
interest rates in South Korea. We joined Rico Hizon. Not many were | :04:15. | :04:18. | |
predicting South Korea would cut rates but they did. | :04:18. | :04:22. | |
That is right. It caught the markets and investors off guard. | :04:22. | :04:32. | |
:04:32. | :04:34. | ||
That is why we are seeing the bond and shock -- stock markets... The | :04:34. | :04:41. | |
first reduction in seven months. The weak industrial growth and the | :04:41. | :04:51. | |
weaker yen include ingredients for this. It will jump-start the | :04:51. | :04:56. | |
economy and ease the pressure on the currency. Economists had | :04:56. | :05:02. | |
different views on the rate cut. One has said the Bank of Korea | :05:02. | :05:08. | |
admits that the economy is as good as they think. The central bank's | :05:08. | :05:13. | |
decision comes after a central banks in Europe and Australia Low | :05:13. | :05:17. | |
Wood rates. This could be the last rate reduction from the Korean | :05:17. | :05:23. | |
central bank until the end of the year. | :05:23. | :05:28. | |
It was once the biggest name in the world of consumer electronics but | :05:28. | :05:35. | |
Sony has recently been elbowed out by the likes of Samsung and Apple. | :05:35. | :05:39. | |
And now the fall in Japanese giant could confirm in a few hours its | :05:39. | :05:47. | |
confirm to profit last year. The good news is it looks like Sony | :05:47. | :05:52. | |
has finally returned to profit. Later today it is expected to | :05:52. | :05:58. | |
report around a 400 million US dollar operating profit for 2012. | :05:58. | :06:04. | |
That contrasts with the operating loss of more than 2.5 billion US | :06:04. | :06:08. | |
dollars in 2011. Since then Sony has gone through a painful | :06:08. | :06:17. | |
restructuring and has lost 10,000 jobs, it has cut TV 10 production | :06:17. | :06:27. | |
:06:27. | :06:28. | ||
in order to get things manageable. But the bad news is it has not | :06:28. | :06:33. | |
worked. The consumer electronics division is not making money and it | :06:33. | :06:42. | |
is now selling its corporate headquarters, life insurance. | :06:42. | :06:46. | |
Without the sale of its US Office it would not be reporting a profit. | :06:46. | :06:51. | |
Sony does have some much better electronic products on the market. | :06:51. | :06:56. | |
It has a tablet and smartphone line that is considered to be better | :06:56. | :07:01. | |
than its predecessors. The PlayStation for is due to come out | :07:01. | :07:10. | |
later this year. But the simple truth is that when it comes to a | :07:10. | :07:13. | |
head-to-head competition with the likes of Apple and Samsung, Sony is | :07:13. | :07:21. | |
still not making much headway. In its home market in Japan last year | :07:21. | :07:24. | |
the iPhone wasn't the single biggest selling smartphone. | :07:24. | :07:29. | |
We will get an update later when they do report their results. We | :07:29. | :07:33. | |
will tell you if the profit came through. | :07:33. | :07:38. | |
In South Africa there are more than 1000 top politicians and business | :07:38. | :07:44. | |
leaders gathered in Cape Town for the World Economic Forum in Africa. | :07:44. | :07:50. | |
One of them is a Nigerian energy entrepreneur who has been telling | :07:50. | :07:54. | |
the BBC about the importance of the private sector in tackling | :07:54. | :08:04. | |
:08:04. | :08:05. | ||
corruption. One of the key to Sieders is privatisation. -- key | :08:05. | :08:13. | |
drivers. The power sector reform is coming in, the government is | :08:13. | :08:23. | |
:08:23. | :08:24. | ||
privatising the power or -- power plants. Moving on to the | :08:25. | :08:29. | |
infrastructure with the deficits of building roads, water systems. The | :08:29. | :08:33. | |
minute this infrastructure is put in place and privatisation takes | :08:33. | :08:37. | |
hold you will see an effective position where the private sector | :08:37. | :08:42. | |
is driving this for profitability, not take charity. That is the | :08:42. | :08:48. | |
differential we are seeing across the Continent. You did not answer | :08:48. | :08:52. | |
the question I asked earlier about corruption and governance impeding | :08:52. | :08:57. | |
investment in Nigeria. What is being done to address this? I do | :08:57. | :09:02. | |
not think corruption will be wiped away overnight but I can assure you | :09:02. | :09:08. | |
that it is getting much better. This generation of Africans, my | :09:08. | :09:12. | |
generation, are doing things differently. We are doing things | :09:12. | :09:18. | |
properly. The more of us that have driving the economies of this | :09:18. | :09:21. | |
continent, the better business environment it will be. | :09:21. | :09:27. | |
We will have more fun that forum as the week progresses. | :09:27. | :09:32. | |
Slovenia's parliament is it due to pass an economic reform programme | :09:32. | :09:39. | |
today, aimed at avoiding a bail out. The plan will be sent to Brussels | :09:39. | :09:44. | |
later. The government is battling to stay solvent and rescue state | :09:44. | :09:53. | |
owned banks that were sinking. The Bank of England wraps up its latest | :09:53. | :09:58. |