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latest headlines from BBC World News. Now for the latest financial | :00:00. | :00:00. | |
news with Alice Baxter and World Business Report. | :00:00. | :00:25. | |
Poor credit, no problem. Subprime lending is booming again, but are | :00:26. | :00:30. | |
the banks storing up another crisis? Plus, have US employers put the | :00:31. | :00:39. | |
bleak winter behind them? Markets await the latest jobs numbers. | :00:40. | :00:42. | |
Welcome to World Business Report I'm Alice Baxter. Brazil tries to drag | :00:43. | :00:51. | |
its airports into the 21st century, but will they be ready for the World | :00:52. | :00:55. | |
Cup? But first, not so long ago "subprime" was a word to strike fear | :00:56. | :00:58. | |
into the hearts of bankers everywhere. Risky mortgage lending | :00:59. | :01:02. | |
to people with poor credit ratings ` who eventually defaulted on their | :01:03. | :01:05. | |
debt `was the main trigger of the 2008 financial crisis. But are the | :01:06. | :01:09. | |
banks back to their old ways? Subprime lending is booming once | :01:10. | :01:12. | |
again in the US ` not for home loans, but for cars. According to | :01:13. | :01:19. | |
the credit agency Experian, the total amount owed on car finance in | :01:20. | :01:22. | |
the US had risen to $750 billion by late last year An estimated 36% of | :01:23. | :01:26. | |
those loans have been made to subprime borrowers. So are the banks | :01:27. | :01:29. | |
storing up serious trouble for the future ` and maybe even another | :01:30. | :01:36. | |
financial crisis? Michelle Fleury reports from New York. | :01:37. | :01:49. | |
This is the famous baseball stitch. This man owns multiple Karsh | :01:50. | :01:51. | |
dealerships in New Jersey. He has been in the business for nearly four | :01:52. | :01:57. | |
decades. Sales in 2014 are at great pace `` multiple car dealerships. | :01:58. | :02:02. | |
There is the easy availability of finance now, thanks to the return of | :02:03. | :02:07. | |
sub`prime lending. That is loans to people with poor credit. Loans to | :02:08. | :02:13. | |
car buyers with sub`prime credit scores of 650 points or below have | :02:14. | :02:16. | |
been rising significantly since the recession. In 2013, they accounted | :02:17. | :02:21. | |
for more than a quarter of new car financing. Loans to people with | :02:22. | :02:27. | |
credit scores below 450, so`called deep prime, have been on the | :02:28. | :02:31. | |
increase, and Steve, it a mixed blessing. I am quite happy, but | :02:32. | :02:38. | |
long`term, if something is not good, it is not good. We saw that with the | :02:39. | :02:42. | |
housing crisis. Are we at that point yet? We are quite a distance from | :02:43. | :02:47. | |
that point in time where the alarm bells had to go off, but we should | :02:48. | :02:52. | |
be turning up the volume a bit more and listening. It was mortgage | :02:53. | :02:57. | |
lending to people at higher risk of not repaying their debt that nearly | :02:58. | :03:00. | |
dished Drogba financial system in 2007. Why is something considered by | :03:01. | :03:08. | |
some as toxic making a comeback? One factor is low interest rates. | :03:09. | :03:13. | |
Investors need higher returns, one area to find that is lending money, | :03:14. | :03:17. | |
with people with lower credit scores. In this situation, Wall | :03:18. | :03:22. | |
Street packages are sold to investors, who can make more money | :03:23. | :03:27. | |
down the road and are willing to take more of a risk. In many parts | :03:28. | :03:32. | |
of the country, a car is vital to get around. As the economy | :03:33. | :03:36. | |
recovers, auto shows are retracting huge numbers of eager buyers, who in | :03:37. | :03:41. | |
turn, are attracting huge amounts of risky loans. What could possibly go | :03:42. | :03:47. | |
wrong? What indeed? Meanwhile the big | :03:48. | :03:56. | |
question for financial markets this Friday, how strongly is the US | :03:57. | :03:58. | |
economy recovering, after the severe winter weather brought growth to a | :03:59. | :04:02. | |
halt? Optimistic comments from the Federal Reserve pushed US shares to | :04:03. | :04:12. | |
new records earlier this week. So investors will be looking for signs | :04:13. | :04:15. | |
of Spring in the latest monthly employment numbers, known as the | :04:16. | :04:17. | |
non`farm payrolls. Employers are expected to have created 210,000 new | :04:18. | :04:20. | |
jobs in April, according to economists polled by Reuters. That | :04:21. | :04:23. | |
would be the best month since November, and enough to bring down | :04:24. | :04:26. | |
America's jobless rate to 6.6 per cent. Those figures are out at 0830 | :04:27. | :04:36. | |
Eastern Time or 12.30 GMT and we will bring you them as soon as they | :04:37. | :04:46. | |
are published. Well, here copied who? Apple and Samsung could get the | :04:47. | :04:52. | |
verdict on their patent cases as early as this weekend. They have | :04:53. | :04:56. | |
been battling it out in the Californian court over the past | :04:57. | :05:00. | |
month. It is the battle of the titans. Let's get the details from | :05:01. | :05:06. | |
Singapore. Can you remind us of the background to all of this? You would | :05:07. | :05:11. | |
not want to be the judge in this case. For the non` technology | :05:12. | :05:15. | |
expert, it is a classic he says, she says. There are a lot of | :05:16. | :05:20. | |
technological arguments underpinning the claims and counterclaims. Last | :05:21. | :05:24. | |
time these two clashed, the focus was on the look of the iPhone, Apple | :05:25. | :05:29. | |
accused Samsung of copying the look. It is not the outside of the phone | :05:30. | :05:33. | |
but inside the phone this time. Apple claims that Samsung made | :05:34. | :05:36. | |
themselves a top player in smart phones by copying feature of the | :05:37. | :05:42. | |
feature of the iPhone. It says ten Samsung devices in French of its | :05:43. | :05:51. | |
patents last `` in French ten of its patents. That is worth $2 billion. | :05:52. | :05:56. | |
Samsung says that you cannot copy something that is not there. `` | :05:57. | :06:07. | |
infringed. Samsung also say that for Apple devices, including the iPhone | :06:08. | :06:14. | |
five, in fumes to have its patents. `` in French. One thing that we can | :06:15. | :06:19. | |
save sure is that whatever happens in this case, they will probably | :06:20. | :06:22. | |
take their case to another court in another country and it will not | :06:23. | :06:31. | |
over. ``infringe. I think it will not be over for some time! Thank | :06:32. | :06:37. | |
you. All this week we've been looking at the challenges facing | :06:38. | :06:39. | |
Brazil's economy as it prepares to host the World Cup. With more than | :06:40. | :06:44. | |
600,000 fans expected to head to the tournament in just over a month's | :06:45. | :06:46. | |
time, it'll be Brazil's airports that will give visitors their first | :06:47. | :06:50. | |
taste of the country ` for good or bad. There has been major investment | :06:51. | :06:54. | |
` but has it all been left too late? Katy Watson reports in the last of | :06:55. | :07:00. | |
her series. The corporate video proudly shows | :07:01. | :07:04. | |
off what the new international passenger terminal will look like at | :07:05. | :07:09. | |
Brazil's busiest airport. This is the reality just a couple of weeks | :07:10. | :07:13. | |
ago. People working around the clock to finish the terminal by the middle | :07:14. | :07:18. | |
of May. The airport is adamant it will be ready but the capacity will | :07:19. | :07:21. | |
be a fraction of the 12 million people it promises in the end. Just | :07:22. | :07:26. | |
a few airlines will be using this during the World Cup. Delays like | :07:27. | :07:31. | |
this are not uncommon. Some airports have announced they will be using | :07:32. | :07:34. | |
temporary facilities during the tournament. Long before Brazil was | :07:35. | :07:38. | |
awarded the World Cup, outdated airports in this country were a huge | :07:39. | :07:41. | |
problem. Passenger growth has soared in the past few years. In 2007, when | :07:42. | :07:47. | |
Brazil made the winning bid, big promises were made to upgrade | :07:48. | :07:50. | |
airports around the country, but that was seven years ago, and people | :07:51. | :07:55. | |
asking why, the last minute, so much work has to be done? This man this | :07:56. | :08:06. | |
airport was one of the first to be handed over to a private company. | :08:07. | :08:11. | |
The problem has been that the recent government has seen Private | :08:12. | :08:19. | |
investment in infrastructure as a necessary evil. Therefore, | :08:20. | :08:23. | |
concessions have been granted, very slowly. Much slower than they should | :08:24. | :08:27. | |
have been. That has an impact on people travelling through airports | :08:28. | :08:32. | |
already at full capacity. Some are a bit fed up. TRANSLATION: The apples | :08:33. | :08:39. | |
and Brazil are rubbish. `` airports in Brazil. They are chaotic, we are | :08:40. | :08:44. | |
approaching the World Cup, the Apple II Brio is like one in a small town. | :08:45. | :08:47. | |
They have been building for some time and nothing works. `` the | :08:48. | :08:57. | |
airport in Rio. But it is believed there can be one glimmer of hope for | :08:58. | :09:03. | |
passengers. There will be less people flying at that time. Why? 70% | :09:04. | :09:10. | |
of the traffic in the Brazilian industry is related to business. | :09:11. | :09:18. | |
People fly because the business and events, meetings, and so on. This | :09:19. | :09:23. | |
activity is going to vanished in the games. If that happens, it will be a | :09:24. | :09:29. | |
welcome relief, and then, once the fans leave the airport, they will | :09:30. | :09:33. | |
have to battle with the roads to the stadiums, in some places, they also | :09:34. | :09:37. | |
work in progress. Katie Watson, BBC News. In other news, Pfizer is | :09:38. | :09:54. | |
preparing to raise its takeover bid for UK rival AstraZeneca to more | :09:55. | :09:57. | |
than 63 billion pounds, or $106 billion, according to a report by | :09:58. | :10:00. | |
Bloomberg. A deal would be the biggest ever in the drugs industry ` | :10:01. | :10:04. | |
and the biggest foreign takeover of a UK firm. Royal Bank of Scotland is | :10:05. | :10:07. | |
expected to report a quarterly profit later this morning. RBS is 81 | :10:08. | :10:10. | |
per cent owned by the UK taxpayer after a massive bailout during the | :10:11. | :10:14. | |
2008 crisis. It has racked up some 46 billion pounds in losses since | :10:15. | :10:15. | |
then. Let's have a look at the markets | :10:16. | :10:19. | |
around the world, open today after being shot for Labour day yesterday. | :10:20. | :10:29. | |
From me and the team, goodbye for now. | :10:30. | :10:41. | |
School children have been asked to cook a meal that's out of this world | :10:42. | :10:47. | |
for British astronaut Tim Peake. The UK Space Agency is looking for | :10:48. | :10:50. | |
pupils to come up with the best British dish for his mission to the | :10:51. | :10:53. | |
International Space Station next year. Celebrity chef Heston | :10:54. | :10:56. | |
Blumenthal will help turn the winning ideas | :10:57. | :10:57. |