Browse content similar to 19/06/2013. Check below for episodes and series from the same categories and more!
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from the US. Those are the latest headlines. | :00:02. | :00:12. | |
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Time now for the money News In British bankers could be sent to | :00:23. | :00:26. | |
jail for misconduct, so says a long-awaited report commissioned by | :00:26. | :00:31. | |
the Government. Markets on the edge as the US | :00:31. | :00:35. | |
central bank meets. When will it start to pull back on its multi- | :00:35. | :00:45. | |
:00:45. | :00:53. | ||
Also in the programme: The first in our new series on the new middle | :00:53. | :00:58. | |
classes. Today we focus on China. First of all, a long-awaited report | :00:58. | :01:02. | |
on the failings of Britain's banks has been published by the | :01:02. | :01:06. | |
parliamentary commission on banking standards. It was set up by the | :01:06. | :01:09. | |
British Chancellor last year after the scandal over attempts to rig | :01:09. | :01:14. | |
the interbank lending rate. Among the recommendations is a call for | :01:14. | :01:18. | |
senior banking figures to be sent to jail if they are found guilty of | :01:18. | :01:23. | |
recklessness conduct. Our Personal Finance Correspondent has been | :01:23. | :01:28. | |
reading the report. The attempted reading of the key | :01:28. | :01:33. | |
market interest rates at Barclays and other banks caused outrage last | :01:33. | :01:37. | |
summer. The UK goth Exeter-based special commission to investigate | :01:37. | :01:44. | |
how the culture and standards could lead to such an issue. The report | :01:44. | :01:48. | |
so as to deter a senior bankers from doing anything wrong, the | :01:48. | :01:52. | |
bonuses should be deferred for up to ten years, bonuses should be | :01:52. | :01:55. | |
capped that could be cancelled if a bank needed to be rescued in a | :01:55. | :02:00. | |
bail-out by the state, and there should be an offence of reckless | :02:00. | :02:04. | |
misconduct by senior bankers punishable with a prison sentence. | :02:04. | :02:08. | |
I expect it is a power that would really be used. It is a nuclear | :02:08. | :02:15. | |
deterrent, but it is there. It is a tool that could be used and which | :02:15. | :02:19. | |
we intend should alter behaviour will prior to getting to that point. | :02:19. | :02:25. | |
The report seeks to keep top bankers under control by putting | :02:25. | :02:28. | |
their bonuses out of reach for years and by threatening them with | :02:28. | :02:33. | |
more painful sanctions if they behave badly. It is not just the | :02:33. | :02:37. | |
bank is to get a going-over. More stringent regulation is called for | :02:37. | :02:44. | |
and more surgery on the banking industry. In particular, RBS. Is | :02:44. | :02:47. | |
more than 80% owned by the British taxpayer after it had to be bailed | :02:47. | :02:53. | |
out. It is to be split into a bad bank which holds of the problem | :02:53. | :02:56. | |
debts and a good bank which could lend freely and could be worth more | :02:56. | :02:59. | |
when it is sold off to the public sector. The commission is calling | :02:59. | :03:05. | |
for a Government report on them dishes and -- decision by September. | :03:05. | :03:08. | |
The American economy is showing signs that things are getting | :03:08. | :03:13. | |
better. Housing is rebounding and the job market is getting stronger. | :03:13. | :03:16. | |
Given the improvements, investors want to know when the US Federal | :03:16. | :03:23. | |
Reserve, led by Ben Ben a key, will begin to scale back its efforts to | :03:23. | :03:33. | |
:03:33. | :03:35. | ||
This is new territory for the Federal Reserve, buying assets and | :03:35. | :03:41. | |
supporting the US economy. Until unemployment hits the sweet 6.5%, | :03:41. | :03:45. | |
the Federal Reserve has said it will not and it's easy money | :03:45. | :03:51. | |
policies. Just a few weeks ago, the chairman said this. If we see | :03:51. | :03:57. | |
continued improvement and we have confirmed that it that is going to | :03:57. | :04:04. | |
be sustained, then we could take a step down in our pace of purchases. | :04:04. | :04:09. | |
Again, if we do that, it would not mean that we are automatically | :04:09. | :04:13. | |
aiming towards a complete wind down. We would be looking beyond that to | :04:13. | :04:17. | |
see how the economy of wolves and we could either raise or lower | :04:17. | :04:23. | |
carapace of purchases. The mere suggestion it made by Les bons said | :04:23. | :04:33. | |
:04:33. | :04:33. | ||
markets into a frenzy. -- it may buy less bonds. We have had some | :04:33. | :04:37. | |
violent reactions in the market over the past couple of weeks. | :04:37. | :04:41. | |
Triple digit swings have been commonplace in the last two weeks. | :04:41. | :04:45. | |
What we are looking for is some sort of stability to come after | :04:45. | :04:51. | |
this announcement is made. The hope is that clarity will, at the end of | :04:51. | :04:55. | |
the two-day meeting. Everyone will be listening for clues to when and | :04:55. | :05:01. | |
how it will ease its way out of the stimulus. It has been unsuccessful | :05:01. | :05:06. | |
late Lee getting its message across. The Federal Reserve wants to | :05:06. | :05:12. | |
communicate that it will continue to run very accommodative, | :05:12. | :05:15. | |
supported monetary policy and that it will be very cautious and | :05:15. | :05:18. | |
withdrawing that easy policy because of the fragility of the | :05:18. | :05:25. | |
recovery. Another question needing clarity, is the German leaving when | :05:25. | :05:29. | |
his term ends in January? -- chairman. Recently President Obama | :05:29. | :05:33. | |
gave us a clue, saying he is has already stayed longer than he | :05:33. | :05:37. | |
wanted to. It seems the man who orchestrated the stimulus will not | :05:37. | :05:43. | |
be the one to get the American economy off of it. | :05:43. | :05:49. | |
Japan's exports to the US and China soared in the month of May. That is | :05:49. | :05:53. | |
thanks to the weaker yen. Because the unions are weak, import costs | :05:53. | :06:03. | |
:06:03. | :06:05. | ||
Put this in perspective for us. guess we are starting to see the | :06:05. | :06:10. | |
impact of what is known as a economics, the economic policies of | :06:10. | :06:15. | |
the Prime Minister, which helped weaken the Japanese currency. It | :06:15. | :06:18. | |
has strengthened somewhat in the last few weeks, but it is still | :06:18. | :06:23. | |
much weaker compared to -- and head to six months ago. That helps to | :06:24. | :06:27. | |
boost exports because it makes Japanese products cheaper overseas | :06:27. | :06:31. | |
and it also boosts their overseas revenues when they are converted | :06:31. | :06:37. | |
back into the Japanese currency. As a result, export rising more than | :06:37. | :06:40. | |
10% in the world of May from last year, which is the biggest rise | :06:41. | :06:45. | |
since the 2010. Import costs are also rising and Japan Kwok another | :06:46. | :06:55. | |
:06:56. | :06:56. | ||
larger trade deficit. -- clocked. If looking around the troubled | :06:56. | :06:59. | |
global economy today it is hard to see many bright spots from which a | :06:59. | :07:03. | |
future of recovery might be based, except perhaps one. | :07:03. | :07:06. | |
Some economic analysts have been championing the arrival of a knight | :07:06. | :07:11. | |
in shining armour, or at least comfortable shoes, a bit of | :07:11. | :07:14. | |
knitwear perhaps. We are talking about the Chinese middle class and | :07:14. | :07:18. | |
to kick off assets and looking at the emerging middle class around | :07:18. | :07:22. | |
the world, our correspondent in China went in search of the new | :07:22. | :07:29. | |
consumers in the new cities there. That the Chinese masses are | :07:29. | :07:33. | |
deserting the countryside in search of work and a better life is an old | :07:33. | :07:38. | |
story. But now there is a new chapter. The farmers leaving these | :07:38. | :07:43. | |
fields for cities like this one are becoming not just workers, but | :07:43. | :07:48. | |
consumers as well. In short, they are off to join the middle class. | :07:48. | :07:53. | |
This woman earns a little more than $12,000 at every year and she | :07:53. | :08:01. | |
spends every last bit of it, often with the help of her credit card. | :08:01. | :08:07. | |
TRANSLATION: My parents would never spend money. Attitudes are changing | :08:07. | :08:14. | |
fast. China needs this to happen so that its new cities can become the | :08:14. | :08:24. | |
:08:24. | :08:28. | ||
building blocks of economic growth. His family live on $40,000 a year. | :08:28. | :08:35. | |
There is the child, the mother and the father. They live in a nice | :08:35. | :08:45. | |
apartment now a typical of millions of Chinese families. TRANSLATION: | :08:45. | :08:51. | |
Yes, I do feel middle class. It is right that the week get left behind | :08:51. | :08:58. | |
and the stronger survive. China's expanding middle class means big | :08:58. | :09:01. | |
opportunities for the global economy as well. In the past few | :09:02. | :09:07. | |
years more than a dozen wine bars have sprung up across the city. | :09:07. | :09:11. | |
Foreign carmakers are cashing in. Jessica and her husband currently | :09:11. | :09:21. | |
:09:21. | :09:21. | ||
spend half of their monthly income on repayments for this. This new | :09:21. | :09:26. | |
amusement park is a sign of the booming leisure industry. And in a | :09:26. | :09:31. | |
little more than $30 per ticket it is a decidedly middle class | :09:31. | :09:41. | |
:09:41. | :09:41. | ||
experience. There are fears that this economy could falter before | :09:41. | :09:45. | |
the fledgling consumer society really takes off, but if the music | :09:45. | :09:49. | |
doesn't stop, China's middle class just might keep on spending | :09:49. | :09:59. | |
:09:59. | :10:04. | ||
And you can find out more on our series online. See how to show us | :10:04. | :10:11. | |
what being middle class means to you when you are. Get in touch. | :10:11. | :10:15. | |
Let's show you how the markets are Let's show you how the markets are | :10:15. | :10:17. | |
trading ahead of the closure of that today meeting of the US | :10:17. | :10:23. | |
Federal Reserve. As you can see, we have a very mixed picture, with | :10:23. | :10:27. | |
Japan higher. The Japanese yen is trading much weaker today against | :10:27. | :10:32. | |
the dollar and many other currencies around the world as well. | :10:32. | :10:42. | |
:10:42. | :10:42. |