Browse content similar to 20/11/2013. Check below for episodes and series from the same categories and more!
Line | From | To | |
---|---|---|---|
latest headlines. Now for the latest headlines. | :00:00. | :00:00. | |
`` business News. $13 billion, that is the price JP | :00:00. | :00:22. | |
Morgan will pay the US government for its role in the 2008 financial | :00:23. | :00:27. | |
crisis. And persuading the people, Shinzo Abe defends his plan for a | :00:28. | :00:38. | |
succession of tax hikes. Hello and welcome to World Business | :00:39. | :00:43. | |
Report. Also in the programme, getting reaction from our team in | :00:44. | :00:48. | |
Singapore to the other latest economic News and Japan's numbers. | :00:49. | :00:55. | |
But festival, the 2008 financial crisis to not just to not just do it | :00:56. | :00:58. | |
on this damage to the financial systems, it wrecked people 's lives. | :00:59. | :01:04. | |
There is no wonder that harsh punishments are being handed out to | :01:05. | :01:07. | |
those judged to have been at the centre of the debacle. Today a price | :01:08. | :01:13. | |
was set for the part a Piedmont and, one of the world's biggest | :01:14. | :01:21. | |
banks, it is to pay $30 billion. To settle claims that it ever settled | :01:22. | :01:27. | |
the value of products sold to clients. It is also awaiting the | :01:28. | :01:32. | |
outcome of a criminal probe from New York. | :01:33. | :01:41. | |
It is America's biggest bank. One of the founding financial institutions | :01:42. | :01:44. | |
in this country. It did not need a bailout during the banking crisis. | :01:45. | :01:48. | |
But JP Morgan has just been handed the biggest ever fine by the US | :01:49. | :01:55. | |
government. The settlement is a major step in restoring confidence | :01:56. | :01:59. | |
in our financial markets, no matter how big you are. Like many banks, JP | :02:00. | :02:08. | |
Morgan was bundling home loans into securities and marketing them as | :02:09. | :02:12. | |
investments. As homeowners began defaulting on mortgages, the value | :02:13. | :02:17. | |
of those securities plummeted. Investors lost millions. In | :02:18. | :02:24. | |
accepting the penalty, JP Morgan is admitting the bank did not comply | :02:25. | :02:28. | |
with its own guidelines. Employees knew the loans were bad. But despite | :02:29. | :02:33. | |
the record penalty, though one person has been held responsible. At | :02:34. | :02:39. | |
some point the American people need a symbol of accountability. That has | :02:40. | :02:43. | |
not happened. It is not happening with the settlement, for all the | :02:44. | :02:51. | |
bluster that is being given. As an American, I still feel like we need | :02:52. | :02:56. | |
serious accountability for what happened. JP Morgan is still | :02:57. | :03:01. | |
massively profitable. It made $20 billion in 2012. It is | :03:02. | :03:09. | |
likely to do even better this year. It has been a hit against profits | :03:10. | :03:15. | |
and cash reserves. Especially given the size of the fine. On the other | :03:16. | :03:20. | |
hand, the show price is going up again to a ten year high. While | :03:21. | :03:26. | |
nobody likes a fine, especially of this magnitude, shareholders have | :03:27. | :03:33. | |
responded positively. It is eliminating some uncertainty. With | :03:34. | :03:39. | |
this record settlement, JP Morgan hopes to put the fallout behind | :03:40. | :03:45. | |
them. But it still faces considerable legal jeopardy. | :03:46. | :03:50. | |
Investigations into rate fixing, foreign exchange manipulation and | :03:51. | :03:56. | |
its conduct in China. Plans for a controversial rise in | :03:57. | :04:01. | |
Japan's sales tax will be debated by the country's ruling party today. | :04:02. | :04:06. | |
Shinzo Abe eight's decision to try and doubled the country's sales tax | :04:07. | :04:13. | |
to 10% by 2050 with a lift in April next year is a popular. `` 2015. But | :04:14. | :04:19. | |
the party is hoping a spending boost for the wider economy will ease the | :04:20. | :04:26. | |
impact on consumers. So why does the government is to lift the sales tax? | :04:27. | :04:30. | |
The government says that it is essential if Japan is to achieve a | :04:31. | :04:36. | |
balanced budget 2020. It is hoped that it will raise crucial funds for | :04:37. | :04:43. | |
the welfare bill. 40% of Japan's population is going to be retired by | :04:44. | :04:49. | |
2060. But critics say that it will hurt an economy that has only | :04:50. | :04:51. | |
recently gone on the road to recovery. We will speak to a senior | :04:52. | :04:58. | |
economist at Fujitsu research. Thank you for being on the programme. Tell | :04:59. | :05:05. | |
us more about the impact it will have on the Japanese economy, | :05:06. | :05:12. | |
assuming it comes into being? Japan basically needs two things. One is | :05:13. | :05:17. | |
additional growth to finance the growing number of retiring | :05:18. | :05:21. | |
employees. The other is a balanced budget. Japan's government that is | :05:22. | :05:28. | |
beyond 20%. They need to be balanced. What the government is | :05:29. | :05:32. | |
doing is trying to implement a sales tax hike. There will be an | :05:33. | :05:41. | |
additional supplementary budget. Is it the right tool to achieve those | :05:42. | :05:53. | |
goals that are just mentioned? There is basically no choice. The economy | :05:54. | :05:59. | |
has called over the past three months, but it still a necklace | :06:00. | :06:06. | |
track. It is very successful in lifting sentiment. The government is | :06:07. | :06:14. | |
anxious to keep growth growing. There is some lifting to do. | :06:15. | :06:18. | |
Government spending will carry the economy through next year. After | :06:19. | :06:23. | |
that we need to see some structural reforms. Some improvement, | :06:24. | :06:31. | |
innovation and investment. You say there is no choice. What about the | :06:32. | :06:35. | |
risk that it will hurt domestic demand. No choice is really the | :06:36. | :06:47. | |
situation that describes the situation best in Japan right now. | :06:48. | :06:52. | |
The government needs the economy to keep growing. It needs to balance | :06:53. | :06:57. | |
the tax hikes. The supplementary budget is necessary. The next debate | :06:58. | :07:01. | |
will be about the next tax hike that is supposed to happen in 2015. It | :07:02. | :07:08. | |
also needs to work on tax cuts for corporations. That will lift | :07:09. | :07:15. | |
sentiment in the economy. There will probably debate European policies | :07:16. | :07:18. | |
like having different rates of value added tax. All of this will go into | :07:19. | :07:31. | |
the parliamentary debate. Thank you. Let us preview on some other | :07:32. | :07:34. | |
business stories. Shareholders of the Nokia have agreed to sell their | :07:35. | :07:41. | |
friend Bob `` mobile phone business to Microsoft. It goes ahead despite | :07:42. | :07:47. | |
objections from some investors who oppose the sale of a Finnish asset. | :07:48. | :07:58. | |
Yahoo! Has boosted its share by about $5 billion. It aims to reward | :07:59. | :08:04. | |
investors as the company looks to revive growth. The Internet search | :08:05. | :08:09. | |
engine's plan is focused on acquisitions of smaller technology | :08:10. | :08:16. | |
companies. Of course, Yahoo has been very much in focus ever since the | :08:17. | :08:21. | |
appointment of a new chief executive. Prior to her | :08:22. | :08:25. | |
appointment, it did go through a succession of chief executives in a | :08:26. | :08:31. | |
very short period of time. All eyes to see this latest move by Yahoo! In | :08:32. | :08:41. | |
terms of their management strategy. As well as starting a high`level | :08:42. | :08:46. | |
meeting about sales tax in Japan, data out today is making headlines | :08:47. | :08:51. | |
as well. Country's trade deficit doubled in the past 12 months as the | :08:52. | :08:56. | |
rapidly rising energy bill pushed imports higher. Let us look at the | :08:57. | :09:03. | |
markets. We are now joined from our bureau in Singapore. What is the | :09:04. | :09:12. | |
latest. That is right. Japan is at a record trade deficit for October. It | :09:13. | :09:15. | |
sought just about yen1 trillion. It record trade deficit for October. It | :09:16. | :09:23. | |
so mainly due to expensive fuel | :09:24. | :09:34. | |
purchases. Exports are rising. Departments are closed off and | :09:35. | :09:36. | |
shattered ever since the Fukushima disaster. Exports or the biggest | :09:37. | :09:43. | |
rise in three years. That is leading to hopes of a gradual pickup in | :09:44. | :09:48. | |
global demand. Experts were up 18% in October. They were mainly being | :09:49. | :09:58. | |
helped by the weaker again. The export growth has largely | :09:59. | :10:03. | |
disappointed. You were talking to Mark and shorts. It has been helped | :10:04. | :10:10. | |
by the payment Mr's massive monetary fiscal expansionary policy. And of | :10:11. | :10:17. | |
course, that may continue to help. We continue to watch these trade | :10:18. | :10:21. | |
figures every month. It may provide some relief for the government. That | :10:22. | :10:28. | |
is the World Business Report. See you soon when we talk through the | :10:29. | :10:41. | |
papers. The Church of England's ruling body | :10:42. | :10:48. | |
is expected to take a significant step towards the creation of women | :10:49. | :10:50. |