Browse content similar to 01/08/2014. Check below for episodes and series from the same categories and more!
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and other rare diseases. They are the very latest headlines | :00:00. | :00:00. | |
here on BBC News. Now, though, it's time for all the latest business | :00:00. | :00:07. | |
news with Alastair Baxter and World Business Report. | :00:08. | :00:20. | |
Markets slump as global worries mount. The Dow wipes out all of its | :00:21. | :00:29. | |
gains for this year. And investors now await US employment numbers. | :00:30. | :00:33. | |
Will they stop the slide or spark more selling? A warm welcome to you. | :00:34. | :00:44. | |
In just a moment, the struggles of Europe's airlines, and the latest in | :00:45. | :00:48. | |
our series on 21st`century jobs. First this hour, we start with worry | :00:49. | :00:55. | |
faces on the floor of the New York Stock Exchange on Thursday. Was it a | :00:56. | :00:59. | |
temporary setback or the start of a major correction on the market? | :01:00. | :01:07. | |
That's the question many are asking as global stocks had their worst day | :01:08. | :01:12. | |
in almost six months. A sell`off in Europe's spread to Wall Street, | :01:13. | :01:15. | |
which saw the Dow Jones plunged more than 317 points, at one point 1.9%, | :01:16. | :01:22. | |
to close at this amount. It means it's wiped out all of its gains for | :01:23. | :01:28. | |
the year. The FTSE 500 also fell more than 39%, or 39 points, rather, | :01:29. | :01:41. | |
to end at this amount. Still higher than it was at the beginning of the | :01:42. | :01:46. | |
year. Surged to record highs has led to warnings shares may be overvalued | :01:47. | :01:51. | |
and you are correction, so what's causing this current bout of nerves? | :01:52. | :01:56. | |
The answer, not one single think about a perfect storm of worries | :01:57. | :02:04. | |
from all around the world. Invest in nerves were clearly | :02:05. | :02:08. | |
frazzled on Thursday. Why? There are a host of reasons, starting with the | :02:09. | :02:14. | |
situation in Ukraine. We heard from companies like BP talk about the | :02:15. | :02:17. | |
impact it's starting to have on their business, and of course | :02:18. | :02:20. | |
there's also that default in Argentina. Closer to home, here in | :02:21. | :02:24. | |
the United States on Thursday there was a report on wage inflation. That | :02:25. | :02:29. | |
raised the prospect that perhaps America's Central bank would shift | :02:30. | :02:33. | |
its focus from battling the weak labour market to fighting inflation, | :02:34. | :02:36. | |
and that could mean higher interest rates. Now, as former central banker | :02:37. | :02:43. | |
Alan Greenspan noted, the stock market here has been rising for some | :02:44. | :02:47. | |
time, and perhaps it was due for a significant correction, and | :02:48. | :02:54. | |
investors will be worrying whether that has now begun. | :02:55. | :03:00. | |
Things have calmed a little in Asia. Let's go to Rico Hizon, monitoring | :03:01. | :03:04. | |
the market in our Singapore bureau. What has the reaction been like in | :03:05. | :03:08. | |
Asia? Well, it's been quite positive, | :03:09. | :03:12. | |
despite some of the losses. New data from China has stabilised nervous | :03:13. | :03:20. | |
regional markets. Asian shares with some of the losses as the | :03:21. | :03:23. | |
surprisingly strong pickup in Chinese manufacturing helped take | :03:24. | :03:28. | |
some of the sting out of the slump on Wall Street. The purchasing | :03:29. | :03:33. | |
managers index added to evidence that Beijing's stimulus initiatives | :03:34. | :03:38. | |
were indeed gaining traction. It was at the 27 month high. Let's look at | :03:39. | :03:42. | |
Japan. The new cake is recouping some of its earlier losses to be | :03:43. | :03:47. | |
down about zero point 1%. Hong Kong is down about 0.5%. But the china | :03:48. | :03:52. | |
and changing markets have recovered all the losses as the indices have | :03:53. | :03:58. | |
crossed over into positive territory. Despite issues outside of | :03:59. | :04:02. | |
the region, China's economy, read gaining momentum after targeting | :04:03. | :04:06. | |
government stimulus initiatives is indeed good news for the regional | :04:07. | :04:09. | |
economies. For now, many thanks. Rico Hizon in | :04:10. | :04:16. | |
Singapore. What happens next on the markets could well be determined by | :04:17. | :04:19. | |
the latest employment figures from the US. A strong showing could | :04:20. | :04:24. | |
convince investors that the Federal reserve will raise interest rates | :04:25. | :04:29. | |
sooner and more aggressively. Let's look at what we are expecting. US | :04:30. | :04:34. | |
employers are expected to have created some 233,000 jobs in July, | :04:35. | :04:40. | |
according to a Reuters survey. That would leave the jobless rate at a | :04:41. | :04:46. | |
six`year low of 6.1%. It would also mean six months in a row of job | :04:47. | :04:52. | |
creation above 200,000 ` that's the best run we've seen since 1997. | :04:53. | :04:57. | |
Staying with the world of employment now, because all of this week we've | :04:58. | :05:03. | |
been looking at the so`called millennials, young people born since | :05:04. | :05:07. | |
1980 taking an innovative approach to finding work. We have been | :05:08. | :05:12. | |
meeting some of New York's 21st`century Artisans. | :05:13. | :05:18. | |
So, this is the kitchen, the main centre of operations for a little | :05:19. | :05:22. | |
bit. Before even walking into this sweet shop's kitchen, the exquisite | :05:23. | :05:29. | |
smell of chocolate and Karen L just overwhelms the senses. Molasses and | :05:30. | :05:36. | |
barter. Chocolate dipped Karen Elson are hardly new. The difference is, | :05:37. | :05:39. | |
all these delectable delights are made by hand. I think the movement | :05:40. | :05:44. | |
towards handmade versus factory made has a lot to do with people | :05:45. | :05:47. | |
recognising the difference between something that's been touched I | :05:48. | :05:50. | |
human hands and something that's spent its whole life going through | :05:51. | :05:57. | |
stainless steel conveyor belts. They make their suites in one of the | :05:58. | :06:01. | |
buildings just behind me. This area is wall`to`wall warehouses. Many of | :06:02. | :06:08. | |
the spaces are being occupied by millennials ` that is, young people | :06:09. | :06:11. | |
that are building businesses based on selling something that's | :06:12. | :06:18. | |
handmade. And its reimagining the face of manufacturing in New York. | :06:19. | :06:23. | |
We thought manufacturing went away, the jobs left New York City and | :06:24. | :06:27. | |
either went overseas or relocated to more suburban areas, but in reality | :06:28. | :06:30. | |
manufacturing has simply changed, and what you see behind closed doors | :06:31. | :06:34. | |
in factory buildings like the one behind us now is dozens, scores, | :06:35. | :06:40. | |
hundreds of new manufacturing businesses. But before these new | :06:41. | :06:48. | |
businesses set up in industrial spaces, many of them start out like | :06:49. | :06:55. | |
Domine, who makes soap out of her Queens apartment. There is high in | :06:56. | :06:58. | |
employment and businesses are always being moved abroad, so, if you are | :06:59. | :07:02. | |
buying things that are made sustainably, eco` consciously, and | :07:03. | :07:06. | |
made by a small business that operates in the US, you feel like | :07:07. | :07:12. | |
you are helping, maybe not solve the problem is, but making little | :07:13. | :07:16. | |
decisions that are making steps in the right direction. Dominique's | :07:17. | :07:21. | |
business was born from a desire to find skincare products suited to | :07:22. | :07:25. | |
have sensitive skin. It's now turned into a fresh start in manufacturing. | :07:26. | :07:33. | |
Let's head to the aviation world now, because international airlines | :07:34. | :07:38. | |
group, the parent company of British Airways and Iberia, reports results | :07:39. | :07:43. | |
in just over an hour's time. Archrivals lives fans are and Air | :07:44. | :07:47. | |
France have warned on profits because of the weak state of the | :07:48. | :07:52. | |
European economy. Let's talk to Douglas McNeill, an investment | :07:53. | :07:59. | |
director at stockbrokers. Thanks for coming in to talk to us. What sort | :08:00. | :08:04. | |
of results are we expecting out of this? Not great. Last year the | :08:05. | :08:12. | |
company made a profit of just over half 1 billion euros. They are on | :08:13. | :08:16. | |
course to exceed that this year, and in particular to return Iberia to | :08:17. | :08:19. | |
profitability, or at least break even, since it merged with British | :08:20. | :08:25. | |
Airways back in 2011. It has lost nearly 1 billion euros in total so | :08:26. | :08:29. | |
if they could restore that the black that would be a significant | :08:30. | :08:32. | |
achievement, but some results from other airlines haven't been great. | :08:33. | :08:37. | |
Let's talk about them, and also look at British airlines, another airline | :08:38. | :08:42. | |
owned by IAG. How has that fair? It seems to be doing pretty well as far | :08:43. | :08:46. | |
as we can tell. It hasn't said anything to the country despite | :08:47. | :08:50. | |
warnings by air France and Lufthansa. Its great strength is its | :08:51. | :08:54. | |
transatlantic franchise, which is a big market for their enemies to | :08:55. | :09:02. | |
attack. The others are far more exposed to Asia than British | :09:03. | :09:06. | |
airways, and those markets for which the Gulf carriers are pretty | :09:07. | :09:12. | |
competitive. As I intimated, with what is happening with Russia and | :09:13. | :09:17. | |
Ukraine, it's looking a bit neuter the moment. Interestingly, I've just | :09:18. | :09:22. | |
seen that air France and Lufthansa, looking to introduce some sort of | :09:23. | :09:26. | |
budget airline to compete with the likes of easyJet. They both have | :09:27. | :09:31. | |
budget units, looking to bowl close up to move more into that business. | :09:32. | :09:36. | |
But it's a difficult thing to do. It's one thing to set up a budget | :09:37. | :09:41. | |
airline from scratch without entrenched working practices, union | :09:42. | :09:45. | |
restrictions, and with very new planes. That's a crucial part of the | :09:46. | :09:48. | |
formula. If you are trying to play catch up, much more difficult. | :09:49. | :09:52. | |
Challenging times ahead. Thanks for coming in to talk to us. Let's move | :09:53. | :09:58. | |
onto some other news now because the World Trade Organisation has failed | :09:59. | :10:03. | |
to reach a deal to standardise customs rules which supporters claim | :10:04. | :10:07. | |
could add $1 trillion and 21 million jobs to the world economy. It would | :10:08. | :10:12. | |
have been the first global trade reform in two decades but was | :10:13. | :10:17. | |
blocked by India 's demands for concessions on agricultural | :10:18. | :10:20. | |
subsidies and stockpiling. Argentina's main stop market slumped | :10:21. | :10:24. | |
8.4% on news the country has been pushed into second default in 13 | :10:25. | :10:29. | |
years. The peso fell sharply against the US dollar. Argentina failed to | :10:30. | :10:33. | |
strike a deal with a group of creditors ahead of the midnight | :10:34. | :10:37. | |
deadline on Wednesday. The investors are pursuing payments in full the | :10:38. | :10:41. | |
$1.3 billion of debt they bought at a steep discount. From all of us | :10:42. | :10:47. | |
here on World Business Report, that's it for now. Stay with us. | :10:48. | :10:57. | |
England's coastline has been battered all this year with flooding | :10:58. | :11:04. | |
that's being causing millions of pounds worth of damage. Ten coastal | :11:05. | :11:10. | |
towns will receive new funding to create nearly 1400 jobs and | :11:11. | :11:11. |