04/09/2014 World Business Report

outbreak. Those are the latest headlines from BBC World News. Now

for the latest financial news with World Business Report.

America's fast food fight heats up as restaurants brace for more

protests over pay. Under pressure to act ` will the

European Central Bank start printing money to kick start the region's

stagnant economy? Welcome to World Business Report. In

just a moment, the Bank of Japan has also been meeting and we will have

the latest details for you. But the latest details for you. But

first... More disruption on the menu for fast

food chains across this Thursday as workers step up

their demands for better pay. The likes of McDonalds, Wendys and

Burger King are expected to face protests in around 150 US cities.

The row is becoming highly politicised, as the Democrats

for an increase in the federal minimum wage

for an increase in the federal congressional elections.

Meanwhile, business owners warn that higher wages will mean fewer jobs.

The Fast Food Forward movement is demanding a minimum of $15 an hour.

They also want workers to be able to join a union without retaliation.

Many fast food workers earn more than the federal minimum wage,

which is currently just $7.25 per hour. That equates to just over

$15,000 a although many don't know how many

hours they'll be given from week to week.

is $15,730. Samira Hussain reports from New

York. For months, protests have been raging across the country. Low`wage

workers are demanding higher pay. And to be able to form a union.

While those goals are lofty, their voices are being heard. The last

year has been a phenomenal success for the low`wage workers movement.

The conversation has been elevated at the state and invisible level, ``

local council level, increasing wages across 13 states. It has been

five years since the last increase to the national minimum wage

this administration wants that to change. In America, no one who works

full`time should ever have to raise a family in poverty. A hard day's

work deserves a fair day's K and raising the minimum wage would give

a fair boost to hard`working families. But the minimum wage is

wrapped in politics. In this divided Congress, passing any new

legislation is increasingly difficult. Despite the lack of

political will at the federal level, workers at places like these will

continue their push for better wages.

We are also keeping a close eye on the European Central Bank this

Thursday. It's facing intense pressure from financial markets to

take action today to boost Europe's stagnant economy. It has already

slashed interest rates to record lows and announced a plan to provide

more lending to banks. The big question is whether it will follow

the US Federal Reserve and Bank of England and begin printing money to

pump into the financial system, which is called quantitative easing

or QE. Thank you for joining us. Good to see you. Several speeches

from Mario Draghi over the last couple of months implied that he

does want a weaker euro and he does standby to make any aggressive

policy measures that are necessary. That being said, the markets might

be pricing in quantitative easing already. I don't think it will

happen today. He cut interest rates in June and he will more than likely

want to see the effect take hold. There is also the possibility of

providing low`cost loans to banks in order to fuel the credit system and

promote growth in that way. Quantitative easing is a last resort

and it might not happen today, despite market participants already

working for it. Inflation is one of the main concerns that Mario Draghi

has spoken about in the run`up to this decision. It is still far below

the eurozone's targets. It is less than one fifth of the target. And

the eurozone recovery seems to have ground to a halt as well. There are

fears that this will prevent people from spending. And it does not help

to cut some of the massive debt holdings of some eurozone nations.

It is important inflation makes a return so that the eurozone can get

back onto an even keen and start to look for growth and employment as a

result. Your opinion seems to correlate with wider thinking on the

issue that quantitative easing is the path he will choose but we will

not see it necessarily on Thursday. However, there are objectors, not

least in Germany. Germany will certainly be a barrier and Mario

Draghi will need to have Angela Merkel on side if he does want to

embark on such an aggressive tactics. France and Italy have been

looking for more monetary stimulus, especially France, but their

credibility is low as they keep missing their budget deficits in the

case of France and Italy, which is in its third recession in five

years. They are looking for a low euro in order to increase growth.

Getting Germany on side is one thing, but you will have to see

fiscal and structural reforms in these countries if unstated easing

is to work and is to have a sustainable effect. The other

options on the table... We have heard talk of the need for

structural reforms. What does that mean? Certainly, there is a general

feeling out there that there is an issue in monetary transmission. And

with the way that works, it does not matter how much credit goes in, it

does not necessarily filter its way down to the correct areas. When it

comes to asset`backed securities, there is a possibility that Mario

Draghi could suggest packaging up a lot of bank debt and monetising it.

This is something that has been mentioned in the past but it does

seem to have been kicked into the long grass for the time being. There

is a feeling that perhaps this particular area is not large enough

to save the eurozone from its self. Structural reforms are certainly

required across the eurozone and we do need to have fiscal policy

measures in place if the monetary policy is to work correctly. Thank

you. Let's stick with our seam of central bank because the Bank of

Japan also has its monthly meeting today. `` our seam of `` our theme

of central banks. The bank of Japan has kept monetary policy on hold.

They are under pressure, as you have mentioned, but they believe the

recent downturn is just a blip and are optimistic that the economy is

in recovery. The retraction in this quarter is due to a recent sales tax

rise and that could make the inflation target of 2% harder to

achieve. They have flagged housing supply as a weak spot. The Japanese

economy shrank in the April to June period. Animals expect a 3.8% bounce

back in this ongoing quarter. `` analyst expect. Behind that is

stability in the labour market and income conditions. It has offered

hopes that the Cabinet reshuffle options or are they will give fresh

momentum to his growth oriented policies. Thank you.

In other news, Samsung has stepped up its battle with arch`rival Apple,

unveiling new versions of its Galaxy Note phablet ` which is half phone,

half tablet ` at the IFA technology show in Berlin. It also showcased a

virtual reality headset to use with the devices. Apple is widely

expected to launch a new generation iPhone and smartwatch at an event

next week. US health giant Johnson and Johnson

says it is fast tracking clinical tests for a vaccine for the Ebola

virus. There are plans to test one vaccine developed by Canadian

scientists, which has been licensed to a genetics company in the autumn.

Thank you for watching. I will be back in a moment for a look through

the morning's newspapers. Don't go away.

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