Browse content similar to 07/08/2013. Check below for episodes and series from the same categories and more!
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at the centre of a health scare this week. | :00:05. | :00:14. | |
:00:15. | :00:27. | ||
All of the signs point to a strengthening UK economy, so is that | :00:27. | :00:33. | |
tide finally turning. We take a look. Wilfully misled, that is what | :00:33. | :00:43. | |
:00:43. | :00:54. | ||
the US government claims that Bank Welcome. We will hear about the | :00:54. | :00:58. | |
latest fraud case that has been launched against the Bank of | :00:58. | :01:03. | |
America. The tide is turning on the British | :01:03. | :01:07. | |
economy, finally the momentum behind a sustained economic recovery is | :01:07. | :01:12. | |
mounting. The latest stream of up the figures paint a very positive | :01:12. | :01:17. | |
picture. Manufacturing output rose 19% month on month, that was double | :01:17. | :01:21. | |
the speed analysts had been expecting. Retail sales enjoyed | :01:21. | :01:26. | |
their fastest low growth in seven years, rising by 2.2 percent as | :01:26. | :01:32. | |
people rush to the shops to why things like barbecues and sunscreen. | :01:32. | :01:39. | |
Car sales also involved -- indicated a bumper after more sales are | :01:39. | :01:47. | |
registered on this time a year ago. The survey of the UK service | :01:47. | :01:52. | |
reported a growth rate of 60.2, the fastest rate of expansion in nearly | :01:52. | :01:57. | |
six years. With all of these positive numbers, how are Britain's | :01:57. | :01:59. | |
policymakers to react? Surprisingly, the expectation is | :01:59. | :02:04. | |
very subdued response. Today's Bank of England inflation news conference | :02:04. | :02:09. | |
is due at 10:30am, sets to give forward guidance and state that | :02:09. | :02:15. | |
interest rates will raid -- remain at record lows will sometime yet. | :02:16. | :02:22. | |
Let us take a look at the Bank of England 's strategy going forward. | :02:22. | :02:29. | |
Joining is the chief economist of Deutsche Bahn. | :02:30. | :02:33. | |
He is probably going to tell us that interest rates are going to stay | :02:33. | :02:37. | |
very low for quite sometime. We're not quite sure how he is going to do | :02:37. | :02:42. | |
this. What he will probably say is to ignore the fact that growth rates | :02:42. | :02:48. | |
are improving and focus on the fact that the level of output in the UK | :02:48. | :02:52. | |
economy is massively below its previous prerecession peak and | :02:52. | :02:56. | |
therefore we need to stimulate the economy and get these growth rates | :02:56. | :03:00. | |
to continue. If the markets start to price in higher interest rates, that | :03:00. | :03:05. | |
could derail the very fragile recovery and that is what is to | :03:05. | :03:11. | |
encourage. His seat is a fragile recovery. We were just giving out | :03:11. | :03:17. | |
some of the positive data we have had recently, but it is important to | :03:17. | :03:20. | |
remember that although it is good news, we are still way below where | :03:20. | :03:25. | |
we were in 2005. The important point is that Mr Carney has come from a | :03:25. | :03:30. | |
country which has had economic output rise substantially from 2007. | :03:30. | :03:38. | |
It has gone up by around 5%. We are operating at about 3% below where we | :03:38. | :03:45. | |
were back in 2007. Things still look fragile because the level of output | :03:45. | :03:50. | |
is so low. This forward guidance. This is a tried and tested formula, | :03:50. | :03:55. | |
isn't it? He did it back in Canada. It is also a policy that has been | :03:55. | :03:59. | |
adopted at the United States. is right. There are two slightly | :03:59. | :04:01. | |
different policies. In Canada they said they would keep interest rates | :04:01. | :04:05. | |
on hold for a year and a half. In the US they are saying they will | :04:05. | :04:10. | |
keep interest rates on hold until unemployment. Down to 6.5%. Slightly | :04:10. | :04:17. | |
different policies, but aiming to do the same thing, which is aiming to | :04:17. | :04:23. | |
do that keep interest rates low. They are trying to tell the markets | :04:23. | :04:26. | |
that they are going to keep their official rates, the rates that they | :04:26. | :04:30. | |
sit on a monthly basis, at very low levels. That should also keep longer | :04:30. | :04:38. | |
term interest rates low as well. Thank you. | :04:38. | :04:41. | |
There are more ramifications now from the US mortgage scandal. The US | :04:41. | :04:46. | |
government has sued bank of America for allegedly lying to investors | :04:46. | :04:48. | |
about the quality of its mortgage-backed securities that it | :04:48. | :04:54. | |
sold back into thousand eight. -- 2008. | :04:54. | :05:00. | |
The US government has described Bank of America as reckless and | :05:00. | :05:04. | |
fraudulent. In its latest effort to halt Wall Street accountable for | :05:04. | :05:09. | |
misconduct that led to the financial crisis, both the Justice Department | :05:09. | :05:14. | |
and financial regulators have filed lawsuits against the bank. They are | :05:14. | :05:18. | |
related to mortgage-backed securities worth $850 million. They | :05:18. | :05:22. | |
were created by packaging together groups of residential mortgage | :05:22. | :05:26. | |
loans. Bank of America allegedly knew that more than 40% of the | :05:26. | :05:30. | |
mortgages did not comply with its own standards, and yet sold them to | :05:30. | :05:35. | |
investors anyway. The bank denies the charges, saying that they were | :05:35. | :05:40. | |
sold to sophisticated investors who have sufficient information. In | :05:40. | :05:43. | |
recent years, the Bank of America has been forced to pay billions of | :05:43. | :05:51. | |
dollars in order to settle lawsuits arising from the financial crisis. | :05:51. | :05:55. | |
China has fined six baby formula companies for price-fixing. The | :05:55. | :06:01. | |
mostly foreign companies have been fined a total of $108 million and | :06:01. | :06:04. | |
include New Zealand's giant Fonterra. Which was at the centre of | :06:04. | :06:14. | |
:06:14. | :06:21. | ||
a health scare this we. What is the latest on all this? The six | :06:21. | :06:30. | |
companies include Fonterra. The two US -based companies were hit by | :06:30. | :06:36. | |
particularly large fines. One is going to pay $38 million. The other | :06:37. | :06:46. | |
:06:47. | :06:47. | ||
$26 million. Fonterra will pay $700,000. The move follows | :06:47. | :06:50. | |
anti-trust and anticompetition probes by authorities in China. | :06:50. | :06:54. | |
Consumers in China are willing to pay lots more. And brands, after | :06:54. | :06:59. | |
public trust was hit when six children died from drinking tainted | :06:59. | :07:03. | |
milk into thousand and eight. The fines were announced by China's top | :07:03. | :07:11. | |
economic planner and it coincides with a separate pricing | :07:11. | :07:13. | |
investigation into the pharmaceutical industry as well. | :07:13. | :07:17. | |
None of the companies have given details of the conduct that has | :07:17. | :07:23. | |
caused these fines to be imposed. Fonterra has been facing its own set | :07:23. | :07:26. | |
of problems after it announced a worldwide recall of some of its | :07:26. | :07:32. | |
problems in a health scare last weekend. The overseas manufacturers | :07:32. | :07:36. | |
have set a minimum at which their products could be sold in China. | :07:36. | :07:38. | |
That has been leading to these higher prices, according to the | :07:38. | :07:48. | |
:07:48. | :07:49. | ||
media. Thank you. Let's stay with China, where a | :07:49. | :07:51. | |
record 7 million students graduated from university this year. But for | :07:51. | :07:56. | |
many, their high hopes are being crushed by the country 's economic | :07:56. | :08:00. | |
slowdown. Companies are hiring 15% fewer graduates than they did one | :08:00. | :08:05. | |
year ago. As our correspondent reports, the job hunters never been | :08:05. | :08:11. | |
harder. A temple may not be the obvious | :08:11. | :08:17. | |
place to start a job hunt, but in China, graduates need all the help | :08:17. | :08:20. | |
they can get. Some are hoping for a spot of divine intervention. For | :08:20. | :08:27. | |
this student, graduates and is still three units away -- graduation is | :08:27. | :08:33. | |
still three years or way. But she still worried. The pressure is | :08:33. | :08:38. | |
tougher and tougher. I should improve my study skills and I come | :08:38. | :08:48. | |
:08:48. | :08:48. | ||
here to pray for my job in the future. The prayers of many of the | :08:48. | :08:51. | |
graduates in this job they are going on Ansett. China may be trying to | :08:51. | :08:56. | |
build an educated workforce to rival the west, but for now, most of the | :08:56. | :09:01. | |
jobs here are low skilled and poorly paid. China is now producing three | :09:01. | :09:06. | |
times as many graduates as it did a decade ago. Many hoped that hoping | :09:06. | :09:11. | |
-- many hope that having a career would be a ticket to distract a | :09:11. | :09:17. | |
degree of the ticket to having a better life but now is the toughest | :09:17. | :09:22. | |
I do find a job. This student graduated last month and is applied | :09:22. | :09:26. | |
for more than 100 positions. He hopes to work in finance. | :09:26. | :09:30. | |
TRANSLATION: Finding a job is more difficult than I expected. But I can | :09:30. | :09:35. | |
accept it. My dream is to become a stockbroker. That in the current | :09:35. | :09:41. | |
employment situation, I don't think I will get that position. Business | :09:41. | :09:47. | |
is here say that many graduates are not equipped for the world of work. | :09:47. | :09:51. | |
He got lucky at the fair and is heading off to interview for a sales | :09:51. | :09:55. | |
position. China has created an educated generation, with | :09:55. | :09:59. | |
expectations to match. But the worry for the country 's leaders is that | :09:59. | :10:09. | |
:10:09. | :10:17. | ||
there are not enough decent jobs to Let's have a look to see how markets | :10:17. | :10:26. | |
are getting on in Asia this morning. We are all waiting for that | :10:26. | :10:31. | |
announcement from Mark Carney at 10:30am local time. Asian markets | :10:31. | :10:34. |