06/11/2013 World Business Report


06/11/2013

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place in Syria later this year. Those are the latest headlines. Now

:00:00.:00:20.

for all of the business news. We will not pay. The French

:00:21.:00:22.

government scrambles to contain anger over in posed environmental

:00:23.:00:30.

taxation. `` imposed. We go to is poised to outsell all other car

:00:31.:00:34.

manufacturers for the second year in a row. `` Toyota. Welcome to the

:00:35.:00:48.

programme. Also, we look at what is behind the increase in business

:00:49.:00:53.

confidence in the UK. First, the European commission has forecast

:00:54.:00:57.

that France will have to pass deeper austerity measures to meet the

:00:58.:01:01.

deficit targets it has been set. The French government has been trying to

:01:02.:01:05.

restore public finances by increasing taxation, which is hugely

:01:06.:01:10.

unpopular. One tax in particular has brought the farmers of Brittany out

:01:11.:01:16.

in force. It is a green tax on heavy vehicles. There were signs yesterday

:01:17.:01:21.

that the demonstrations were spreading to the south`west of the

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country. Tomatoes, red and ripe for picking.

:01:31.:01:40.

They will soon be on a journey. This man farms tomatoes, a family

:01:41.:01:46.

business with seven employees. Jobs depend on cheap transportation. Yet

:01:47.:01:52.

transportation has grown to 10% of his outgoings. This proposed tax, he

:01:53.:01:58.

says, will cost another 10,000 euros per year. For a small business, that

:01:59.:02:08.

is crippling. So angry at the farmers they have joined lawyers,

:02:09.:02:11.

labourers and trade unionists at the barricades. The symbol is the red

:02:12.:02:17.

bonnet worn by their ancestors who resisted the taxes of King Louis

:02:18.:02:28.

XIV. Sensing danger, Francois Hollande announced last week the

:02:29.:02:31.

suspension of the tax, not that it has quelled the protest.

:02:32.:02:38.

TRANSLATION: There is a risk of insurrection. People have had enough

:02:39.:02:43.

of the government ignoring their problems. They have imposed this tax

:02:44.:02:47.

on our economy which may well collapse. Today in the provincial

:02:48.:02:56.

capital, peace may not be in the power of the prefect. The onus lies

:02:57.:03:02.

firmly with the government. In just 18 months, Francois Hollande has

:03:03.:03:06.

become the most unpopular president on record. This is one of the

:03:07.:03:11.

regions that voted for him in the elections. Today, they feel

:03:12.:03:17.

betrayed. Nationwide, 85% of his own socialist supporters say they want

:03:18.:03:23.

him to change his approach. He has to balance the budget with tax rises

:03:24.:03:28.

rather than spending reform. He has been forced into a series of

:03:29.:03:34.

retreat. There is much work to be done to close the distance between

:03:35.:03:39.

Paris and Brittany, but how much longer can the president stick to

:03:40.:03:42.

the same track, ignoring the austerity that much of Europe has

:03:43.:03:51.

been forced to swallow? Toyota is set to report record

:03:52.:03:55.

results today, despite a vehicle recall earlier in the quarter. Net

:03:56.:04:00.

income is thought to have risen to nearly $10 billion. One contributing

:04:01.:04:08.

factor is the Japanese yen, which has declined in value against all

:04:09.:04:14.

major currencies, benefiting the exporter and reviving the Japanese

:04:15.:04:20.

economy. Toyota may not make the most

:04:21.:04:25.

exciting vehicles in the world but it is fantastically good at selling

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them. In the three months from July to September, Toyota outsold every

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other car company in the world including General Motors in America.

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It is not just selling cars, it is the amount of money Toyota make

:04:41.:04:47.

this. In the first nine months of this year, it sold roughly the same

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number of vehicles around the world as General Motors and faults wagon.

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However, if you look at the Prophet Toyota is expected to make, it is

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three times as much as General Motors, and that is because of

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Toyota's legendary efficiency and the value of the Japanese yen, which

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is weaker than it has been for many years. In the US, a court in

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Oklahoma last month decided against Toyota in a case involving alleged

:05:21.:05:26.

uncontrolled acceleration in one of the models. Success in that case on

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the part of the plaintiff means that hundreds of people with similar

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cases are likely to come forward in filing suit against the Japanese

:05:39.:05:45.

company. We are waiting for those numbers to come through very soon.

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Mitsubishi's shares are also rising on reports it is looking to make a

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deal with other carmakers. Car many factories are very much in focus

:06:01.:06:08.

this week. `` carmakers are very much in focus this week. Mitsubishi

:06:09.:06:11.

is considering connecting with Peugeot. Other companies have failed

:06:12.:06:24.

in recent decades, leading to this potential alliance with the French

:06:25.:06:29.

carmaker. Mitsubishi currently shares a Russian facility with

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Peugeot, supplying them with versions of its sport utility

:06:36.:06:40.

vehicles and let the cars. Mitsubishi has failed twice in the

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past at forming partnerships with foreign carmakers. It pulled out of

:06:46.:06:52.

talks with Chrysler in the past. Analysts say this might be the right

:06:53.:06:59.

time. It will be difficult for Mitsubishi to stay independent for

:07:00.:07:05.

much longer if it wants to compete with companies like Toyota.

:07:06.:07:11.

Recently, all eyes have been on the East and the so`called emerging

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markets for exciting business opportunities and growth.

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One new report says this is about to change. One report says that the US

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and UK will be driving growth, going forward, with the UK in particular

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seeing a large increase in business confidence. Focusing on the UK to

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begin with, your conclusions are quite strong about business

:07:42.:07:46.

confidence. You say it is the highest you have seen since you have

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been recording it. Why is that? We have seen business confidence more

:07:54.:07:57.

than double and we believe that it is because of a broad`based sense of

:07:58.:08:03.

confidence. The confidence in profitability is spread across all

:08:04.:08:07.

industries, across services, construction and even

:08:08.:08:12.

manufacturing. Business leaders are more confidence. Many businesses

:08:13.:08:19.

have been sitting on cash and waiting for signs to invest, to

:08:20.:08:23.

expand. Will this lead to the expansion we hope for and perhaps

:08:24.:08:29.

new jobs being created? I hope so. What we are being told is that

:08:30.:08:38.

people are beginning to increase hiring in the UK and the US. One

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thing that you mentioned in your report is that even though we are

:08:45.:08:50.

seeing business confidence increasing and businesses expanding,

:08:51.:08:54.

households will still feel things very tough because salaries are not

:08:55.:09:04.

in line with inflation. There is still sensing being conservative, so

:09:05.:09:07.

we will not be a huge increase in salaries, but we have seen

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indications that business leaders will increase them somewhat. You say

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that the US has also seen an increase in business confidence. Not

:09:19.:09:23.

so long ago, there was political paralysis and a partial government

:09:24.:09:27.

shut down and have real worries about what impact that might have.

:09:28.:09:31.

Will we be seeing this happen all over again? Is not the US economy,

:09:32.:09:38.

although not held hostage, still affected by that? I afraid those

:09:39.:09:45.

times are not behind us. There are still long`term concerns. However,

:09:46.:09:51.

the recovery is strong. We have had a decent six months of solid

:09:52.:09:57.

recovery. Things are much better than what they were one year ago.

:09:58.:10:02.

When we talk about emerging economies not doing so well, what

:10:03.:10:08.

does that mean? Confidence in the Chinese economy is still strong and

:10:09.:10:13.

there have been good results. Brazil and Latin America in general have

:10:14.:10:17.

been weaker. Russia is down and so is India. Thank you. Interesting to

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see where those confidence levels are. And how are the markets going

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at the moment? These are the figures from Asia. In Japan, it is the

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carmakers that are pushing the markets in both directions. Toyota,

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Mitsubishi, Nissan. That is a brief update on the markets.

:10:52.:11:13.

Just before we get looking at the newspapers, we can focus on a story

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in the UK, where a Conservative MP has referred himself to the

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Parliamentary standards Commissioner after the Daily Telegraph accused

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him of offering to set up this must heals worth hundreds of thousands of

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pounds. This is Mark Pritchard `` offering to set up business deals

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worth hundreds hundreds of thousands of pounds. The Daily Telegraph says

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Mark Pritchard offered to broker investments overseas. He was

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secretly recorded by an undercover reporter working

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