29/07/2016 World Business Report


29/07/2016

Similar Content

Browse content similar to 29/07/2016. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

Those are the latest headlines from BBC News.

:00:00.:00:00.

Now for the latest financial news with Aaron Heslehurst

:00:00.:00:00.

The French agree to build Britain's first new new-clear power

:00:00.:00:25.

But now the Brits want more time to think.

:00:26.:00:29.

Plus - five centuries in business but now banking on a rescue.

:00:30.:00:32.

The perilous state of the world's oldest financial institution.

:00:33.:00:41.

This is just a bite-size snapshot of all the latest in the world of

:00:42.:00:56.

business and money. Also coming up: Will the Bank

:00:57.:01:00.

of Japan turn on the money It could end up as one of the most

:01:01.:01:03.

expensive structures ever built. It would certainly be a massive,

:01:04.:01:12.

multi-billion dollar gamble for the companies and

:01:13.:01:14.

governments involved, We are talking about Britain's first

:01:15.:01:16.

nuclear power station in a generation, the

:01:17.:01:27.

proposed Hinkley C plant Late on Thursday the board of French

:01:28.:01:29.

energy giant EDF narrowly approved the $24 billion project,

:01:30.:01:34.

despite fears it could In fact, two senior executives have

:01:35.:01:36.

quit over all of this. Now, the UK Government says

:01:37.:01:49.

it won't make a final Because of the vast cost,

:01:50.:01:52.

a third of the investment The state CGN group will put

:01:53.:02:00.

in almost $8 billion, that's The Chinese hope it will give them

:02:01.:02:07.

an in with the UK government Hinkley C would provide

:02:08.:02:15.

3,200 megawatts of power. That would supply 7% of the UK's

:02:16.:02:24.

total electricity requirement. It's enough to make 85.3 million

:02:25.:02:29.

cups of tea at once. Or to keep the lights on in 48.5

:02:30.:02:43.

million homes around the UK. to charge 640 million iPhones

:02:44.:02:46.

all at the same time. In return for their

:02:47.:02:58.

massive investment, the French and Chinese

:02:59.:02:59.

would get a guaranteed price for the electricity

:03:00.:03:01.

the plant produces. That price is this -

:03:02.:03:04.

about ?92.50, or $121.68, per megawatt hour of electricity

:03:05.:03:08.

for a period of 35 years. this is more than twice

:03:09.:03:17.

the current market rate, another one of the reasons

:03:18.:03:24.

it is so controversial. Dr Paul Dorfman is from

:03:25.:03:26.

the Energy Institute The delay from the British side, is

:03:27.:03:41.

this a Brexit issue or a new government going, we just need a bit

:03:42.:03:45.

more time to think about this? Yes, it's good news. The deal, as you

:03:46.:03:53.

say, is deeply problematic and it looks like our government is

:03:54.:03:56.

thinking again. There are lots of reasons for this. The reactor that

:03:57.:04:04.

his bill is the same brand of reactor that has failed in

:04:05.:04:08.

construction terms, both in Finland and France, where it is about three

:04:09.:04:13.

times over time and cost. That will be a problem in itself, right? This

:04:14.:04:21.

is a plant that has failed? It is certainly a failed reactor. The

:04:22.:04:26.

failure of the construction of this reactor has essentially bankrupted

:04:27.:04:31.

EDF's construction arm, which will have to be bailed out by the French

:04:32.:04:37.

government. Can I just ask you this. Time is short. Some will say this is

:04:38.:04:43.

a 20th-century solution to a 21st-century problem and locking in

:04:44.:04:48.

at prices for the UK government, to pay the French and Chinese, locking

:04:49.:04:53.

in a rate that is more than twice the market rate today for 35 years,

:04:54.:04:59.

that is absurd, isn't it? It does seem to be absurd and there are

:05:00.:05:08.

problems with it. For example, this is all the UK government has to find

:05:09.:05:12.

low carbon energy. Fortunately, nuclear by about 2020 will eat all

:05:13.:05:19.

of the framework. So if you are wondering why we have seen the

:05:20.:05:23.

decimation of nuclear solar, wind, UK gridlock grid, that's why. If you

:05:24.:05:28.

are talking about energy in the round, a recent report has said that

:05:29.:05:33.

renewables account for all of the increasing global power generation

:05:34.:05:37.

in 2050, so that's a 70% in wind and about 32% in solar, with China

:05:38.:05:42.

leading the way. Thank you very much. Short and sweet, but we

:05:43.:05:46.

appreciate your time. In Italy, there are growing fears

:05:47.:05:48.

about the health of Tonight, after the US markets close,

:05:49.:05:50.

the EU will publish results of the latest so-called

:05:51.:05:57.

bank stress tests. Those are basically to test if banks

:05:58.:06:04.

can withstand the financial crisis. are expected to be the major source

:06:05.:06:08.

of concern, as Theo Leggett reports This is the world's oldest bank,

:06:09.:06:22.

founded in 1472 it originally provided small loans to Tuscan

:06:23.:06:27.

farmers. Now it is Italy's third-largest bank and is in

:06:28.:06:32.

trouble, weighed down by a huge fort stomach portfolio of loans that may

:06:33.:06:37.

never be repaid. -- huge portfolio. There are about 600 banks across the

:06:38.:06:41.

country and more local branches than pizza restaurants. Many of them are

:06:42.:06:45.

struggling because customers can't repay their debts. Across the

:06:46.:06:51.

sector, depending on which metrics you look at, there are 360 billion

:06:52.:06:57.

euros, which makes up about one fifth of the country's GDP and about

:06:58.:07:04.

20% of all loans in the country. Here in this northern Italian town

:07:05.:07:07.

they know exactly what can happen when a bank gets into financial

:07:08.:07:12.

trouble. Last deal on local bank was one of four which had to be bailed

:07:13.:07:15.

out by the Italian government. But the price of that they allowed under

:07:16.:07:20.

EU law was that investors had to lose money and in Italy bank

:07:21.:07:26.

investors are often ordinary savers. One of them is Roberto. He and his

:07:27.:07:33.

wife lost 24,000 euros they had invested in the bank. Now he's

:07:34.:07:37.

fighting for compensation. TRANSLATION: It doesn't matter what

:07:38.:07:45.

had -- whether it is 100 or 1000 euros. We are talking about our

:07:46.:07:50.

money, money that we made from hard work and sweat. It is my money and

:07:51.:07:53.

the Italian government has stolen it from me. This is a relatively small

:07:54.:08:00.

bank. ??Monte dei Paschi is a lot to go. If a solution to its problems

:08:01.:08:05.

can't be found in the private sector the government may have to step in

:08:06.:08:08.

and many more ordinary people could lose their money. Experts fear that

:08:09.:08:12.

could cause political up rural, possibly threatening the government

:08:13.:08:21.

and the Prime Minister and sending shockwaves through the entire EU.

:08:22.:08:25.

To Asia now, where all eyes are on Tokyo,

:08:26.:08:28.

specifically the Bank of Japan which has just wound

:08:29.:08:30.

Karishma Vaswani is our Asia business correspondent.

:08:31.:08:39.

All of these huge expectations on the bank of Japan and they came out

:08:40.:08:45.

and said, we will do something, we will continue pumping money into the

:08:46.:08:49.

markets. That's about it, and nobody likes that at the moment. You are

:08:50.:08:53.

absolutely right. I think this is being read as a major

:08:54.:08:56.

disappointment. Investors were looking for some sort of major

:08:57.:08:59.

effort by the bank of Japan and the central bank of an to show that he

:09:00.:09:05.

was trying to support the Japanese economy. -- bank governor. Japan has

:09:06.:09:15.

been in a two decade-long slump. Prices are low, wages are low and

:09:16.:09:19.

the problem is that no matter what the central bank and the government

:09:20.:09:23.

has thrown at this problem, massive, billions of dollars worth of cash

:09:24.:09:26.

and money and stimulus, even pushing interest rates further below zero,

:09:27.:09:31.

nothing appears to be working. Earlier in the week we saw a move by

:09:32.:09:36.

the Japanese Prime Minister Shinzo Abe, who announced plans for a $265

:09:37.:09:42.

billion stimulus package. He says details of that will be released

:09:43.:09:46.

next week. And it looked at the time like he was saying to his friend at

:09:47.:09:50.

the central bank, now show your cards. Well, it hasn't impressed

:09:51.:09:57.

investors at all. Nothing has worked in the past and nothing will work in

:09:58.:10:01.

the future, until economic structural reforms! Economic

:10:02.:10:07.

structural reforms. The Nikkei is down just over 1% and the Japanese

:10:08.:10:10.

yen has gone back up again. That continues to hurt the Japanese

:10:11.:10:12.

economy. Don't forget you can get in touch

:10:13.:10:12.

with me and some of the team I will be back to look at some of

:10:13.:10:16.

the papers from around the world. The UK's first maternity service

:10:17.:10:25.

for victims of rape and sexual

:10:26.:10:29.

Download Subtitles

SRT

ASS