Browse content similar to 05/06/2013. Check below for episodes and series from the same categories and more!
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Those are the latest headlines from BBC World News. Now for the latest | :00:03. | :00:13. | |
:00:13. | :00:19. | ||
financial news with Sally and World Chrysler defies the US government | :00:19. | :00:29. | |
:00:29. | :00:31. | ||
and refuses to recall older Jeep Japan's prime minister called to | :00:31. | :00:34. | |
the third Garrow. Four on his latest attempt to revive the | :00:34. | :00:44. | |
Japanese economy. -- calls it the third arrow. | :00:44. | :00:48. | |
Welcome. Also, art China and the EU on the brink of a trade war over | :00:48. | :00:53. | |
solar panels? We will have the latest. First, Chrysler is defying | :00:53. | :00:57. | |
the US government and refusing to put in place a recall, requested by | :00:57. | :01:01. | |
US road safety authorities. The US National Highway Safety | :01:01. | :01:04. | |
Administration is asking Chrysler to recall older models of its Jeep | :01:04. | :01:06. | |
brand, specifically the Grand Cherokee from 1993-2004 and the | :01:06. | :01:15. | |
Jeep Liberty from 2002-2007. It says the fuel tanks are not | :01:15. | :01:18. | |
sufficiently protected because they are behind the rear axle. Chrysler | :01:18. | :01:24. | |
insists they are safe. Industry analyst Michelle Krebs gave us her | :01:24. | :01:33. | |
reaction to Chrysler's defiant stand. It was shocking because ever | :01:33. | :01:43. | |
:01:43. | :01:45. | ||
since the Toyota recall a few years ago, they have been very quick to | :01:45. | :01:52. | |
do recalls at the slightest moment. To have Chrysler say they are not | :01:52. | :01:59. | |
doing it is highly unusual. Chrysler is convinced they are | :01:59. | :02:04. | |
right and that the Government is wrong. We will see how that plays | :02:04. | :02:12. | |
out. I think they are taking a riskier because, even though they | :02:12. | :02:17. | |
may ultimately win this, there could be some public relations | :02:17. | :02:25. | |
damage as a result. An opinion there on their reaction to that | :02:25. | :02:28. | |
news by Chrysler. US authorities could force Chrysler | :02:28. | :02:32. | |
to recall the cars, by taking the company to court. But if lawyers | :02:32. | :02:36. | |
get involved the battle could drag The Japanese Prime Minister calls | :02:36. | :02:39. | |
it his third arrow. Shinzo Abe is announcing the third phase today of | :02:39. | :02:42. | |
efforts to revive the Japanese economy from decades of feeble | :02:42. | :02:49. | |
growth. The first two arose involved a massive increase in | :02:49. | :02:54. | |
government spending and pushing the central bank to boost the supply of | :02:54. | :03:02. | |
money. -- arrows. Rupert Wingfield Hayes is our Tokyo Correspondent. | :03:02. | :03:08. | |
Tell us more about what he has been saying. It looks like what we have | :03:08. | :03:12. | |
got today is not the whole third arrow but just a little bit. We | :03:12. | :03:16. | |
will have to wait until next week to see the whole thing. But what we | :03:16. | :03:22. | |
have heard from Shinzo Abe today is a very public commitment to | :03:22. | :03:26. | |
significantly increase in growth in the Japanese economy. He says his | :03:26. | :03:30. | |
government will create 3% economic growth in the Japanese economy for | :03:30. | :03:35. | |
the next ten years. That would be a 30% increase in income is over the | :03:35. | :03:40. | |
next ten years. How exactly he will achieve that, that remains to be | :03:40. | :03:44. | |
seen. The details are not really there yet. One of the things he did | :03:44. | :03:49. | |
talk about today, interesting and has called people's attention, is | :03:49. | :03:53. | |
the creation of new special economic zones, particularly in | :03:53. | :03:58. | |
Tokyo. Essentially, turning Tokyo into a special economic zone that | :03:58. | :04:03. | |
can compete with looser regulation, lower taxes, compete with places | :04:03. | :04:08. | |
like London, Hong Kong and Singapore. How convinced our | :04:08. | :04:11. | |
business leaders and economists about this in Japan? Because there | :04:11. | :04:18. | |
is a fierce debate ongoing about the effectiveness of so-called | :04:18. | :04:25. | |
"Abenomics". There is a lot of scepticism in Japan that his | :04:25. | :04:29. | |
policies will work and that he is really committed to this. We have | :04:29. | :04:34. | |
seen the first two. A big increase in public spending, a big increase | :04:34. | :04:38. | |
in the printing of money by the Bank of Japan. That will double the | :04:38. | :04:46. | |
money's -- money supply. The third is considered difficult but the | :04:46. | :04:49. | |
most important. Japan needs to open up its domestic economy to greater | :04:49. | :04:55. | |
competition, to reform regulation and lower taxes if the economic | :04:55. | :04:58. | |
recovery is to be sustainable over the long-term. There is a great | :04:58. | :05:03. | |
deal of scepticism that Shinzo Abe, who represents the Liberal | :05:03. | :05:07. | |
Democratic Party, the old ruling party, close to business interests, | :05:07. | :05:11. | |
that he will really pushed through with these very difficult, | :05:11. | :05:15. | |
challenging and unpopular reforms that are needed here. Perhaps he is | :05:15. | :05:20. | |
more interested in tinkering round the edges. What we have seen today, | :05:20. | :05:29. | |
people will be encouraged but they will want to see more. thank you. | :05:29. | :05:37. | |
That story that is having the invocations in Japan. -- beat | :05:37. | :05:41. | |
implications. In other news, US authorities have banned the import | :05:41. | :05:44. | |
of older models of Apple's iPhone. It's the result of a patent dispute | :05:44. | :05:48. | |
with Samsung. A US trade body ruled that Apple had infringed a patent | :05:48. | :05:52. | |
owned by the Korean company. The ban can be overturned by the White | :05:52. | :05:54. | |
House. It was a slow start to the year for | :05:54. | :05:58. | |
the Australian economy. It grew 0.6% in the first three months of | :05:58. | :06:00. | |
2013, which was less than economists were expecting. The | :06:01. | :06:05. | |
strong Australian dollar has been hurting the nation's manufacturing | :06:05. | :06:09. | |
sector. The central bank there has slashed interest rates over the | :06:09. | :06:16. | |
past year. Economists think they could be more on the way. | :06:16. | :06:23. | |
Venezuela's government is introducing rationing in the | :06:23. | :06:31. | |
nation's most populous state, Zulia. From next week there will be | :06:31. | :06:34. | |
restrictions on the sale of 20 basic items, including rice, flour | :06:34. | :06:37. | |
and sugar. The government says the limits have been introduced to | :06:37. | :06:40. | |
tackle smuggling, but critics say the food supply has been disrupted | :06:40. | :06:43. | |
by government policy. Could Europe and China be heading | :06:43. | :06:46. | |
into a trade war over solar panels? On Tuesday, European Union | :06:46. | :06:49. | |
competition authorities slapped levies on Chinese solar panels. | :06:49. | :06:54. | |
From this week there will be a tariff of just under 12%. That will | :06:55. | :06:59. | |
increase to 47% in August and -- unless the two Max Sykes can reach | :06:59. | :07:04. | |
an agreement. The EU says the Chinese firms are selling solar | :07:04. | :07:12. | |
panels at less than they cost to reduce. And in response, China has | :07:12. | :07:17. | |
launched an investigation into European wine. Ray Noble is from | :07:17. | :07:20. | |
the Solar Trade Association which represents the solar industry here | :07:20. | :07:23. | |
in the UK. Do you believe these tariffs are necessary? Definitely | :07:23. | :07:31. | |
not. Why?Basically, all that has happened is that Chinese industry | :07:31. | :07:37. | |
has started manufacturing in a bigger scale. Huge volumes. In | :07:37. | :07:42. | |
doing so, they have driven down the cost. The European industry is | :07:42. | :07:46. | |
still in megawatts scale, significantly smaller, and their | :07:46. | :07:51. | |
cost base is higher. What do you think would have been the answer? | :07:51. | :07:55. | |
Why are tariffs helping European companies? The European companies | :07:56. | :08:02. | |
do not exist any more. They had lots of subsidies over the past 20 | :08:02. | :08:06. | |
years to build businesses. But they took the profit rather than | :08:06. | :08:11. | |
invested into the industry. What the Chinese have done is they have | :08:11. | :08:14. | |
had subsidies from Chinese government or whatever but they | :08:14. | :08:19. | |
have invested in large scale and this was always the holy grail of | :08:19. | :08:24. | |
solar panels. You believe the European solar companies just got | :08:24. | :08:27. | |
their strategy wrong and therefore they failed because of their own | :08:27. | :08:34. | |
poor decision-making? Exactly. I was in BP solar industry and we | :08:34. | :08:37. | |
were number one in the world. We knew what it would take to move it | :08:37. | :08:42. | |
into the future. It was huge investment and it decided it was | :08:42. | :08:46. | |
not interested. Other companies have done the same. The Chinese | :08:46. | :08:52. | |
have not. As a sole trader industry body trying to help the UK | :08:53. | :09:00. | |
suppliers, what do you say? -- Solar. 80% of the products | :09:00. | :09:03. | |
installed in the UK comes from China. Without it, the industry | :09:03. | :09:08. | |
virtually dies in the UK. In terms of the future for European | :09:08. | :09:12. | |
companies, what do they need? Do they need to enlarge their business | :09:12. | :09:16. | |
on a much bigger scale to compete effectively with the Chinese? | :09:16. | :09:21. | |
is correct. Unfortunately, they have missed the boat. They have had | :09:21. | :09:26. | |
enough opportunities over the past 15-20 years and have not done it. | :09:26. | :09:31. | |
They sold the equipment to Chinese companies, who set up five years | :09:31. | :09:36. | |
ago, and they knew the Chinese were buying huge volumes of equipment to | :09:36. | :09:43. | |
make solar panels. And so this was inevitable. Very interesting. Thank | :09:43. | :09:46. | |
you. That is also in today's papers. We | :09:46. | :09:51. | |
will discuss that in a moment. Looking at the markets, an | :09:51. | :09:55. | |
interesting day. They are ebbing and flowing at the moment, | :09:55. | :10:00. | |
depending on the outlook for the economies. On Friday, we are going | :10:00. | :10:07. | |
to be getting a significant record about the jobs market in the US. | :10:07. | :10:10. | |
After that, there will be speculation as to what the central | :10:10. | :10:16. | |
bank in the US will do in response. The markets in Asia to a degree are | :10:16. | :10:20. | |
focused on what central banks are doing to stimulate their economies. | :10:20. | :10:24. |