13/01/2016 World Business Report


13/01/2016

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with Sally and World Business Report.

:00:00.:00:14.

US regulators reject VW's recall plan.

:00:15.:00:21.

Its new boss is meeting with the Environmental Protection

:00:22.:00:23.

We'll have the latest on the emissions cheating scandal.

:00:24.:00:29.

And what is the state of the worlds biggest economy?

:00:30.:00:32.

And what is the state of the world's biggest economy?

:00:33.:00:34.

President Obama says the US is the strongest and most durable

:00:35.:00:37.

But he calls for changes to reduce the growing income gap.

:00:38.:00:44.

Also in the programme, forget the doomsayers,

:00:45.:00:52.

bounce back in exports and the markets calm.

:00:53.:00:59.

Rico will tell you all you need to know.

:01:00.:01:03.

It's back to first gear for VW as US regulators have rejected it's recall

:01:04.:01:07.

plan for cars impacted by the emissions cheating scandal,

:01:08.:01:09.

saying the company's proposals are not adequate.

:01:10.:01:15.

Later today, the car giant's chief executive,

:01:16.:01:18.

Matthias Muller, will meet with the head

:01:19.:01:19.

of the Environmental Protection Agency.

:01:20.:01:21.

The scandal has severely damaged VW's reputation,

:01:22.:01:24.

and it's now desperately trying to rebuild trust

:01:25.:01:26.

Michelle Fleury reports from the Detroit auto show.

:01:27.:01:37.

While others showed off their wares, VW's new cars took a back seat as

:01:38.:01:44.

executives tried to put the diesel emissions scandal behind them. We

:01:45.:01:49.

want to make this right in the American way. We will continue

:01:50.:01:53.

everything in our power to make it right and to regain your trust,

:01:54.:01:58.

specifically of the American public. A comment from the W's CEO declaring

:01:59.:02:04.

we are not a criminal brand is unlikely to placate US officials who

:02:05.:02:08.

sued them saying they hadn't produced an acceptable way forward.

:02:09.:02:13.

A point the board chairman of the VW brand that test with us in

:02:14.:02:17.

Detroit's. I'm confident over the next couple of weeks we will come to

:02:18.:02:22.

an agreement over what we're going to do for our customers and to also

:02:23.:02:27.

make the cars legally compliant. Will it involved in some cases

:02:28.:02:32.

buying back cars? We will provide technical solutions for all the

:02:33.:02:40.

cars, we are confident we can solve all technical issues. And waiting

:02:41.:02:44.

for a fix. Brian Dickerson was appalled to learn his car was one of

:02:45.:02:49.

several hundred thousand currently on American roads with software

:02:50.:02:52.

installed on its diesel engine that allows it to flout antipollution

:02:53.:02:59.

laws. Anger and embarrassment because I had bragged to a lot of

:03:00.:03:03.

people about what a great car I had bought. Very fuel-efficient. You

:03:04.:03:09.

know, my car gets more miles to the gallon manuals. But also very clean.

:03:10.:03:15.

VW did not scale back its presence here in Detroit as it sought to earn

:03:16.:03:19.

back the trust of American consumers. A bigger hurdle could be

:03:20.:03:24.

making things right in the eyes of US officials, for whom an apology

:03:25.:03:26.

will not be enough. In his final State

:03:27.:03:31.

of the Union Address, President Obama has said that the US

:03:32.:03:33.

is the strongest and most durable But more progress is needed on equal

:03:34.:03:36.

pay, paid leave and We're in the middle of the longest

:03:37.:03:52.

streak of private-sector job creation in history. (APPLAUSE).

:03:53.:04:07.

More than 14 million new jobs, the strongest two years of job growth

:04:08.:04:14.

since the 1990s, an unemployment rate cut in half. Our auto industry

:04:15.:04:18.

just had its best year ever. That's just part of a manufacturing

:04:19.:04:34.

surge that's created 900,000 jobs in the past six years, and we've done

:04:35.:04:38.

all this by cutting our deficits by almost three quarters. You would

:04:39.:04:45.

expect him to present a good report. Obviously he's going to say what a

:04:46.:04:55.

good job he has done in terms of keeping the US economy on track.

:04:56.:04:59.

What are other people saying about his legacy? Yeah. I have to say,

:05:00.:05:05.

Sally, this was a very forceful and impassioned speech. It had a real

:05:06.:05:09.

optimistic tone because he was basically trying to lay out his

:05:10.:05:15.

legacy. As you can imagine, you had Democrats basically siding with the

:05:16.:05:17.

President and lauding this speech and then you had Republicans, who

:05:18.:05:22.

came out with the criticisms on the economy. As I said, he was trying to

:05:23.:05:27.

lay out his legacy, so the economy played a big part in that. He laid

:05:28.:05:32.

out some of the progress we had seen, the US economy getting

:05:33.:05:35.

stronger since he inherited the financial crisis. But he also made

:05:36.:05:40.

some concessions, and that was important. He hit hard on

:05:41.:05:44.

Republicans, saying anyone who claims the economy is in decline is

:05:45.:05:48.

peddling fiction. And he said why Americans are feeling anxious is

:05:49.:05:52.

because the economy has been changing in profound ways and he

:05:53.:05:56.

said those started before the great recession. He tried to strike an

:05:57.:06:02.

optimistic tone, saying the way America was going to come out of

:06:03.:06:05.

this stronger was to embrace change. He did say things needed to be done,

:06:06.:06:10.

like equal pay for equal work, paid leave, raising the minimum wage, and

:06:11.:06:14.

income inequality was still a big issue. One of the more poignant

:06:15.:06:19.

sound bites was when he said food stamp recipients didn't cause the

:06:20.:06:23.

financial crisis, recklessness on Wall Street did. Immigrants aren't

:06:24.:06:27.

the reason... Boardroom decisions make quarterly earnings over

:06:28.:06:32.

long-term returns. We have statements he has made to the

:06:33.:06:40.

public. Thank you so much. A quick response in terms of that speech.

:06:41.:06:47.

More online. Let's go from the world's biggest economy to the

:06:48.:06:48.

world's second-biggest. Chinese exports defied

:06:49.:06:50.

expectations in December, rising 2.3% from a year ago

:06:51.:06:59.

in yuan denominated terms and economists say it is a weaker

:07:00.:07:02.

currency that has helped fuel demand Rico, is this a blip

:07:03.:07:05.

or a sign of things to come? Well, Sally, for now this is a rare

:07:06.:07:24.

bright spot for the economy and it has calmed investors' nerves. As for

:07:25.:07:30.

sustainability, it remains to be seen if this will continue in the

:07:31.:07:34.

month of January and in the first quarter of 2016. China's authorities

:07:35.:07:40.

lowering the value of the currency in recent weeks and months, making

:07:41.:07:45.

exports more competitive on global markets. Analysts say the

:07:46.:07:50.

depreciation of the currency, 5% since August, has helped with

:07:51.:07:55.

exports. Overseas demand also strengthening with increasing new

:07:56.:07:59.

export orders, but it is still uncertain whether the recovery is

:08:00.:08:04.

sustainable. Imports fell 4%, an improvement on the decline in

:08:05.:08:08.

November. The December trade surplus jumping almost 25%. Better than

:08:09.:08:15.

expected numbers calming sceptical investors and stabilising the

:08:16.:08:19.

Shanghai and Shenzhen stock markets this Wednesday. The bigger test is

:08:20.:08:24.

when the fourth-quarter data and annual growth is released next week,

:08:25.:08:28.

and that is when we will find out the kind of growth we are seeing in

:08:29.:08:33.

China in 2015 and whether or not we are seeing its slowest growth in 25

:08:34.:08:39.

years. Sally. We have a week to prepare for that. Thanks for that.

:08:40.:08:46.

Rico, good to see you. Oil is trading just above $34 a barrel at

:08:47.:08:48.

12 year lows. On Tuesday Brent crude

:08:49.:08:51.

fell as low as $30.34, while the US benchmark,

:08:52.:08:53.

West Texas Intermediate briefly fell below $30 a barrel

:08:54.:08:56.

before recovering. Prices have fallen sharply

:08:57.:08:57.

in volatile trading over the past week as oversupply persists

:08:58.:08:59.

amid weak global demand. UK oil firm BP has announced

:09:00.:09:04.

it is cutting 4,000 jobs It comes as profits continue

:09:05.:09:07.

to suffer as a result BP said all the job losses

:09:08.:09:11.

would occur in its oil exploration Meanwhile, Brazil's oil giant,

:09:12.:09:15.

Petrobras, has announced a massive scale back of its investment plans

:09:16.:09:25.

thanks to the lower commodity price. Petrobas will reduce

:09:26.:09:32.

investment by $32 billion, that's 25% over

:09:33.:09:33.

the next four years. That's a very significant sum.

:09:34.:09:47.

Today, oil prices going up. Let's look at the markets in general.

:09:48.:09:54.

Brent crude up just 5.6% -- 0.6%. Japan and Hong Kong trading much

:09:55.:09:58.

higher. The night before was a strong rally on Wall Street as well.

:09:59.:10:02.

Basically markets in Asia are coming off a three-year low off a very

:10:03.:10:07.

torrid start to the year. I'll see you soon.

:10:08.:10:19.

A 24-hour strike by junior doctors in England will end at 8am

:10:20.:10:21.

Despite the cancellation of thousands of operations

:10:22.:10:24.

and appointments, NHS England said hospitals were coping well

:10:25.:10:26.

and patients were not being put at risk.

:10:27.:10:28.

But another stoppage is planned in two weeks' time and attempts

:10:29.:10:31.

are being made to prevent the action.

:10:32.:10:34.

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