02/01/2014 World Business Report


02/01/2014

Similar Content

Browse content similar to 02/01/2014. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

rescue helicopter test the ice close by. Those are the latest headlines.

:00:00.:00:00.

Now for the latest financial news with World Business Report.

:00:00.:00:16.

Show me the money - as entrepreneurs like this restaurant owner turn to

:00:17.:00:20.

the general public via the internet to fund their start-ups, regulators

:00:21.:00:25.

wonder how to police the process. Derelict buildings, deserted,

:00:26.:00:28.

dilapidated shopping malls - no, it's not the setting of a new zombie

:00:29.:00:31.

movie, it's the result of austerity in Portugal. We'll take you on the

:00:32.:00:37.

most unusual sight-seeing tour you'll ever experience.

:00:38.:00:44.

Welcome to World Business Report. Also in the programme: Hyundai warns

:00:45.:00:51.

2014 could be a tough year due to the stronger South Korean won.

:00:52.:00:58.

Was it your New Year's resolution to launch your own company? Do you need

:00:59.:01:04.

some money to do so? In the wake of the financial crisis, entrepreneurs

:01:05.:01:07.

have rushed to tap the general public for cash to get their

:01:08.:01:10.

start-ups going. Using crowd-funding websites like Crowd-cube, Seedrs and

:01:11.:01:13.

Angel-list, aspiring entrepreneurs can hook up with amateur investors

:01:14.:01:23.

and well-wishers across the planet. But if the past year saw crowd

:01:24.:01:26.

funding come of age, 2014 will be the year it has to face up to

:01:27.:01:30.

regulators as they get to grips with this new freewheeling era of

:01:31.:01:34.

internet investing. Caroline Hepker reports.

:01:35.:01:49.

This restaurant in London's edgy district. 50 online investors made

:01:50.:01:55.

this possible with $400,000. They say crowd funding was the right

:01:56.:01:58.

ingredients. Essentially, to get to open a business with 50 champions

:01:59.:02:04.

real business. For us, it is a no-brainer. For this investor, a

:02:05.:02:12.

taste of success, but a gamble. Spreading your money is a good idea.

:02:13.:02:18.

Anyone of them easily fail. Small businesses tend to do that. As long

:02:19.:02:21.

as one of them does well, it is worth it. The UK regulator is

:02:22.:02:29.

bringing in new rules to make the risks clearer, and to limit how much

:02:30.:02:33.

you can invest. What we want to do is come out with something that is

:02:34.:02:37.

proportionate, that provides the appropriate protection but allows

:02:38.:02:41.

firms and consumers access to an important source of funding. That

:02:42.:02:47.

could mean more ideas like this salad dressing making it to our

:02:48.:02:50.

shelves. Europe has been slow to adopt crowd funding, but is

:02:51.:02:55.

consulting on new regulations. The US will make share -based crowd

:02:56.:03:02.

funding possible nationwide in 2014. Crowd funding has been absolutely

:03:03.:03:07.

key. From starting with the fantastic support of a store like

:03:08.:03:10.

this, to being in over 1000 supermarkets in the UK and entering

:03:11.:03:16.

500 supermarkets in North America, it has grown by elites and bounds.

:03:17.:03:20.

So could this new form of investment. Crowd funding has

:03:21.:03:25.

exploded into the post financial crisis entered its powered age. It

:03:26.:03:30.

is making some big promises. Cash reinvented entrepreneurs, big

:03:31.:03:34.

returns investors, and jobs from the rest of the economy. For every

:03:35.:03:39.

success story, they could be plenty of cautionary tales from the

:03:40.:03:42.

Internet. The South Korean car giant Hyundai

:03:43.:03:45.

is warning 2014 will be a tough year with sales hit by the strength of

:03:46.:03:51.

the won. Sharanjit Leyl is in our Asia Business Hub in Singapore.

:03:52.:03:58.

Happy New Year. Tell us more about here and they. It is not set to be a

:03:59.:04:12.

happy day for Hyundai. It is projected to be their weakest annual

:04:13.:04:17.

sales growth in about a decade. Shares of Hyundai and its affiliates

:04:18.:04:23.

have got more than 4%. This came after they issued a growth forecast.

:04:24.:04:27.

Combined sales of respected grow by 4%. That is the slowest for nearly a

:04:28.:04:37.

decade. This is mainly due to the strength of the Korean currency.

:04:38.:04:41.

They are making less money from profits brought home from overseas.

:04:42.:04:46.

Their Japanese counterparts are benefiting greatly from the currency

:04:47.:04:49.

swings. They have reaped the benefits of a weaker yen, which made

:04:50.:04:54.

their products more competitive overseas and that they make more

:04:55.:05:00.

money bring the proper time. The Japanese currency fell nearly 20%

:05:01.:05:04.

against the US dollar in 2013, while the Korean won has risen nearly 10%.

:05:05.:05:12.

After facing a fall in market shares, Hyundai is shaking up its US

:05:13.:05:19.

management. They have been facing increased competition from domestic

:05:20.:05:24.

carmakers, the likes of Ford and General Motors. That means that they

:05:25.:05:29.

growth in the US is starting to slow. Korean buyers are also seduced

:05:30.:05:37.

by Hyundai's German rivals, who are encroaching on their home turf. As

:05:38.:05:42.

if that isn't bad enough, Hyundai has been hit by a series of strikes,

:05:43.:05:49.

which has resulted in fewer vehicles produced at its South Korean

:05:50.:05:53.

factories. Thank you. We will see you soon.

:05:54.:05:55.

If official sightseeing tours of big cities leave you cold, then Porto,

:05:56.:05:58.

the regional capital of Northern Portugal could have just the thing

:05:59.:06:02.

for you. Three out-of-work architects upset at the impact of

:06:03.:06:05.

austerity on their historic home city have set up an unusual walking

:06:06.:06:12.

tours agency. They call it The Worst Tours. Instead of taking visitors to

:06:13.:06:17.

the famous wine lodges and historic tourist sites, they'll take you to

:06:18.:06:23.

all the worst places in town. No less than 70,000 buildings are now

:06:24.:06:25.

derelict in Porto, and entire shopping centres have had to close.

:06:26.:06:28.

Our Europe business correspondent Nigel Cassidy has been on one of the

:06:29.:06:41.

tours and sent this report. Medieval and rock, a World Heritage

:06:42.:06:45.

site on a river near the ocean. Portugal's second city is a

:06:46.:06:49.

photogenic jewel in the city's crown. Visitors flocked there by the

:06:50.:06:55.

tram load to taste the wine. Walk just a few steps down the main

:06:56.:06:59.

shopping street, and the rest to many abandoned neocolonial

:07:00.:07:02.

buildings. It is almost as if you have stumbled into a mini Nirvana. I

:07:03.:07:07.

would like to take a at this building. Meet the worst to guides.

:07:08.:07:12.

Theirs is the opposite of your normal tourist tour. Jobless

:07:13.:07:17.

architects take you down dark alleys and through Main Street, to see how

:07:18.:07:21.

hard economic times hurt the city they love. The organisers say

:07:22.:07:26.

bailout measures make Portugal more competitive, but have badly damaged

:07:27.:07:32.

the city. They say wages and spending power has fallen so much

:07:33.:07:35.

that hundreds of businesses have been forced to close. They say

:07:36.:07:40.

austerity is an abstract concept, it is something you can touch, see and

:07:41.:07:47.

feel. 2000 firms have ceased trading in the past two years alone. Some

:07:48.:07:51.

see this as inevitable economic change. Tour guides say it is

:07:52.:07:55.

because local spending power has been destroyed. People have less

:07:56.:08:01.

money. They cannot maintain the internal market. The cuts are making

:08:02.:08:13.

a downward spiral in society. Here is another stop on the tour. This

:08:14.:08:17.

ancient public washing place, high above a river, is now more heavily

:08:18.:08:22.

used by families who cannot afford washing machines. Of all the places

:08:23.:08:28.

we have seen here, this is the most extraordinary. The 1980s style

:08:29.:08:34.

shopping centre, all of them are empty. But something is going on. It

:08:35.:08:39.

is not anti any more. A lot of bands and musicians started using up the

:08:40.:08:47.

clothing shops for rehearsals. Sometimes we have several bands

:08:48.:08:52.

using up the space. The city still has plenty to charm visitors. This

:08:53.:08:56.

to just hopes that by highlighting the worst part, they can show where

:08:57.:09:01.

investment is badly needed. In other news: Italian carmaker Fiat

:09:02.:09:04.

is taking over the rest of Chrysler for about $3.7 billion dollars. Fiat

:09:05.:09:09.

already owns most of the US automaker, and is buying the

:09:10.:09:11.

remaining 41.5% from a healthcare union. The deal will allow Fiat to

:09:12.:09:15.

reduce its reliance on the struggling European car market and

:09:16.:09:18.

focus on growing its US car sales. Chrysler is America's third-biggest

:09:19.:09:21.

carmaker and emerged from a government-managed bankruptcy in

:09:22.:09:26.

2009. China plans to loan Pakistan $6.5

:09:27.:09:29.

billion for the construction of two nuclear power stations in Karachi,

:09:30.:09:31.

marking the biggest-ever Chinese financing deal for a single project

:09:32.:09:37.

in the country. The new facilities will increase Pakistan's electricity

:09:38.:09:40.

supply by about 15% and signifies deepening ties between the two Asian

:09:41.:09:53.

nations. Financial markets today, not all are

:09:54.:09:56.

open to trade. Japan is close to a public were there. Hong Kong is

:09:57.:10:02.

open, as are the Chinese market. The big loser in South Korea is

:10:03.:10:08.

Hyundai. One of the story is talking the market today is China's

:10:09.:10:12.

manufacturing numbers, which were disappointed.

:10:13.:10:24.

Thank you. Families are being urged to swap fatty foods out of their

:10:25.:10:29.

diets in a new campaign by Public Health England. The organisation,

:10:30.:10:32.

which is part of the Department of Health, says making simple switches

:10:33.:10:35.

in what we eat and drink could make a difference. But its use of money

:10:36.:10:39.

off vouchers as part of the idea has been criticised as a quick fix that

:10:40.:10:44.

doesn't offer families the best deal. Here's our

:10:45.:10:45.

Download Subtitles

SRT

ASS