Browse content similar to 10/06/2011. Check below for episodes and series from the same categories and more!
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teams objected when the race were scheduled to October. -- Formula | :00:03. | :00:13. | |
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One teams. Welcome to the programme. A look at | :00:17. | :00:21. | |
all the latest in the world of business and money. The Catalans: | :00:21. | :00:26. | |
Food prices set to climb even higher as droughts -- drought in | :00:26. | :00:30. | |
Europe and floods in the US raised the threat of poor harvest. | :00:30. | :00:35. | |
In Asia, tackling inflation. The South Korean central bank surprises | :00:35. | :00:41. | |
the market with a rate hike. Latest evidence that the global economy is | :00:41. | :00:51. | |
:00:51. | :00:52. | ||
losing momentum. For consumers in the developed | :00:52. | :00:57. | |
world, already squeezed between rising living costs and stagnate | :00:57. | :01:01. | |
salaries, higher food prices are the last thing that is needed. For | :01:01. | :01:06. | |
millions in poorer countries, the higher cost of food is much more | :01:06. | :01:09. | |
serious because the picture in developing global agriculture is | :01:09. | :01:14. | |
particularly worrying. Corm prices hit an all-time record in Chicago. | :01:15. | :01:20. | |
That is after a spring's Keady rain forced to the US Department of | :01:20. | :01:24. | |
Agriculture to slash its top forecast. In Europe, it is an | :01:24. | :01:31. | |
opposite problem. It is drought. America has taken a battering in | :01:31. | :01:35. | |
recent weeks, first came the brains and flutter along the Mississippi, | :01:35. | :01:40. | |
and then the tornadoes in the Midwest. That has hit commodity | :01:40. | :01:43. | |
production, corn futures are trading at all-time highs, the | :01:43. | :01:50. | |
price of many other staples are also soaring. On the back of the | :01:50. | :01:54. | |
world recession recovery, it remain tight, and as long as the weather | :01:55. | :01:59. | |
continues to play havoc with America, there will be upward price | :01:59. | :02:03. | |
pressure. Global food prices are rising, caused by higher demand and | :02:04. | :02:09. | |
not enough supply. The World Bank says its food price index is 36% | :02:09. | :02:13. | |
higher than last year. There have been large rises in the price of | :02:13. | :02:17. | |
basics such as maize and wheat. He pushed an extra 44 million people | :02:18. | :02:22. | |
into poverty. The outlook is not promising. Drought in France and | :02:22. | :02:27. | |
elsewhere in Europe mean lower harvests. President Sarkozy has | :02:27. | :02:31. | |
offered a aid package to farmers with hundreds of millions of euros. | :02:31. | :02:35. | |
The only good news comes from Russia. The government is expected | :02:36. | :02:40. | |
to lift its ban on grain exports next month. But in Moscow, they may | :02:40. | :02:46. | |
impose limits to control inflation at home. For food prices, the only | :02:46. | :02:56. | |
:02:56. | :02:57. | ||
way is up. As we saw, this is not a double | :02:57. | :03:04. | |
whammy. This is a lot of whammies, tornadoes, droughts, floods, | :03:04. | :03:10. | |
cyclones. On top of that, we are seeing a surge in demand from China | :03:10. | :03:15. | |
for the foodstuffs that the typically West eat. It is very | :03:15. | :03:19. | |
serious because it is coming on top of two years were basically | :03:19. | :03:23. | |
supplies have not been able to catch up with demand. As a result, | :03:23. | :03:28. | |
stocks as a proportion of global consumption are quite low in a | :03:28. | :03:35. | |
historical context. We be without becoming more extreme, -- with the | :03:35. | :03:40. | |
weather becoming more extreme, it has created habit. You mention the | :03:40. | :03:45. | |
drought in China, the drought in parts of the southern US, in Europe, | :03:45. | :03:50. | |
these are causing major problems. What we are really concerned about | :03:50. | :03:56. | |
his corn and global maze. It is critically tight. Wheat is also | :03:56. | :04:00. | |
looking quite risky. We are worried about some harvests in the European | :04:00. | :04:07. | |
Union and maybe Canada. There is no relief in the mind of consumers | :04:07. | :04:11. | |
that we are going to see a big decline in prices, when you have so | :04:11. | :04:19. | |
much supply-side concerns, it is reflected in prices. There is not a | :04:19. | :04:24. | |
lot of slack in this supply chain. All of this has a knock on effect. | :04:24. | :04:28. | |
You mention the wheat and corn prices that have shot up overnight, | :04:28. | :04:35. | |
but it is not only the products, but it goes across the whole chain. | :04:35. | :04:43. | |
There is food for meat and dairy. Absolutely. Crane is one of the | :04:43. | :04:50. | |
biggest concerns for the feed costs for the livestock industry. Food | :04:50. | :05:00. | |
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inflation has been rising. It is a concern in developing countries. | :05:01. | :05:06. | |
But even in Europe, we are also feeding higher food inflation. The | :05:06. | :05:16. | |
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UK is a net importer of foods so we do suffer here. | :05:23. | :05:26. | |
Inflation has prompted a surprise rise in interest rates in South | :05:26. | :05:35. | |
Korea. Yesterday we were talking about higher oil prices, today it | :05:35. | :05:40. | |
is higher food prices, all of which feed into a global picture of high | :05:40. | :05:46. | |
inflation. It has a lot of governments very worried. Inflation | :05:46. | :05:51. | |
is a huge concern in a shout. It is not a South Korea, but all the | :05:51. | :05:55. | |
Asian central banks have been having this dilemma, because | :05:55. | :05:58. | |
inflation has the economies, they want to tackle it by raising | :05:58. | :06:02. | |
interest rates, but he also had slow economic growth in the US and | :06:02. | :06:07. | |
Europe, which as still Asia's main trading partners. China in India | :06:07. | :06:13. | |
are trying to pool their economies because they do not want to -- I | :06:13. | :06:16. | |
tried to cool the economy is because they do not want them to | :06:16. | :06:23. | |
overheat. Analysts were a bit surprised with today's interest | :06:23. | :06:27. | |
rate hike. Last week, we saw the Thailand's central bank raising | :06:27. | :06:33. | |
interest rates. We saw Australia, New Zealand and Indonesian central | :06:33. | :06:36. | |
banks keeping their rates on hold because they are keen to keep are | :06:36. | :06:42. | |
boosting their economy. More evidence in the last hour that | :06:42. | :06:48. | |
the global economy is losing its momentum. China's export growth has | :06:48. | :06:57. | |
slowed in made to an annual rate of 90%, it was almost 30% in April. We | :06:57. | :07:05. | |
are going straight to Beijing. Two parts to these numbers. One is | :07:05. | :07:10. | |
telling us what the global economy is doing, and one is telling us | :07:10. | :07:14. | |
about the domestic economy. These are still numbers that many would | :07:14. | :07:22. | |
give their right arm for, but are they suggesting a global slowdown? | :07:22. | :07:25. | |
We have to be careful reading too much into the monthly figures, | :07:25. | :07:35. | |
because they can be very volatile. China is seeing a slowdown in its | :07:35. | :07:38. | |
exports because demand in Europe and America, absolutely key markets | :07:38. | :07:43. | |
for China, the demand is slowing down, and the main reason for that | :07:43. | :07:47. | |
is there is concern in that part of the world over the health of their | :07:47. | :07:54. | |
economies. Beijing has been working hard over the last few years to | :07:54. | :08:00. | |
rebalance the economy. Less reliant on exports, more of a boost for | :08:00. | :08:06. | |
consumer, domestic consumers. Does it suggest that what Beijing is | :08:06. | :08:11. | |
doing is working? It is difficult to tell on monthly figures, but | :08:11. | :08:15. | |
there are higher import figures which would suggest that China is | :08:15. | :08:19. | |
consuming more. That will be some been welcomed by other countries | :08:19. | :08:26. | |
around the world. They want to see China consume more in order to draw | :08:26. | :08:31. | |
growth from around the world. It is worth pointing out that in terms of | :08:31. | :08:35. | |
exports, the cost of doing business in China is increasing. We have | :08:35. | :08:40. | |
seen inflationary pressures on salaries, deep appreciation of | :08:40. | :08:50. | |
:08:50. | :08:57. | ||
China's currency, and that is making exports more expensive. | :08:57. | :09:02. | |
We are taking a look at the markets in Asia. They are kind of light | :09:02. | :09:08. | |
yesterday, a mixed bag. Facia has climbed, they snapped a six-day | :09:08. | :09:18. | |
:09:18. | :09:24. | ||
Investors were closely awaiting a watching for these Chinese numbers | :09:24. | :09:28. | |
that they have now seen. Not a great reaction. Monthly numbers | :09:28. | :09:33. |