Browse content similar to 15/06/2011. Check below for episodes and series from the same categories and more!
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change in the Aude -- aid programme between England and India. We now | :00:06. | :00:16. | |
:00:16. | :00:18. | ||
have World Business Report. Welcome to World Business Report. The | :00:18. | :00:23. | |
headlines: A new blueprint for banks, Britain will impose tougher | :00:23. | :00:29. | |
rules to prevent another financial meltdown. Another day of action - | :00:29. | :00:34. | |
strikers hope their voices will be heard as the Greek government | :00:34. | :00:40. | |
debates painful economic cuts. China's president is in Russia | :00:40. | :00:45. | |
hoping to sign a landmark gas agreement. Both sides are at | :00:45. | :00:55. | |
loggerheads over prices. It is the biggest shake-up of a Britain's | :00:55. | :01:01. | |
banks in living memory. The aim to prevent a meltdown in the event of | :01:01. | :01:05. | |
financial crisis and protect high street savers. George Osborne will | :01:05. | :01:11. | |
announce tonight plans for firewalls separating the retail and | :01:11. | :01:18. | |
investment arms at major UK banks. Banks will have decayed higher | :01:18. | :01:27. | |
amounts of money in their vaults. In his annual speech to the bankers | :01:27. | :01:37. | |
:01:37. | :01:39. | ||
Institute of London, George Osborne will pledge to ring-fence banks. | :01:39. | :01:44. | |
This is the central proposal by the independent commission on banking | :01:44. | :01:48. | |
in its April report. The Chancellor will set in train the privatisation | :01:48. | :01:56. | |
of Northern Rock, it was nationalised in early 2080, he will | :01:56. | :02:00. | |
announce that UK banks have to hold more capital for protection against | :02:00. | :02:04. | |
future losses than the new international minimum. By putting | :02:04. | :02:09. | |
retail banking into a separate legal subsidiary, ring-fenced | :02:09. | :02:15. | |
investment banking activities, the giant parts of the banks will be | :02:15. | :02:22. | |
less exposed in a crisis. The idea is that the retail bits of the | :02:22. | :02:26. | |
major banks will have more capital to absorb possible losses and in | :02:26. | :02:30. | |
conditions of extreme danger could be more easily hived off and | :02:30. | :02:38. | |
rescued. We are joined by a banking analyst to make sense of this | :02:38. | :02:46. | |
further. It is not a new idea, we hear a lot more tonight when George | :02:46. | :02:54. | |
Osborne makes his speech. Basically, you have got to get an extra | :02:54. | :02:57. | |
insurance policy for your kitchen even though you have an insurance | :02:57. | :03:04. | |
policy for your house. As consumers, it'll mean slightly higher prices | :03:04. | :03:08. | |
for a retail banking products. It'll be more expensive for the | :03:08. | :03:14. | |
banks to run retail banking than it is now. In your opinion, is this | :03:14. | :03:17. | |
the right way to protect the British banking system from another | :03:18. | :03:23. | |
disaster we have experienced? hate to make this decision. You | :03:23. | :03:31. | |
lose either way. Leaving them alone means we have to rescue them with | :03:31. | :03:36. | |
huge amounts of money. The amount that we need to invest to save or | :03:36. | :03:41. | |
to rescue the banks will now be significantly less. It is a | :03:41. | :03:45. | |
compromise solution. Most of the banks will complain but then | :03:45. | :03:50. | |
accepted. We do not know the detail of this yet. When it comes to the | :03:50. | :03:55. | |
amount that banks have to put aside in case of a financial meltdown, it | :03:55. | :04:00. | |
will be more than the international standard. Bankers say it is too | :04:00. | :04:03. | |
much and it reduces our competitiveness. In retail banking | :04:03. | :04:11. | |
that is not a real issue. Investment banking... Levels for | :04:11. | :04:14. | |
investment banking will be different than four levels of | :04:14. | :04:24. | |
:04:24. | :04:28. | ||
retail banking. Is this a brick wall or is this a teabag? | :04:28. | :04:35. | |
reaction from banks, HSBC is saying we are in favour of this? Lots of | :04:35. | :04:41. | |
the banks are in agreement for retail banking. They have never | :04:41. | :04:46. | |
made a lot of money in this sector. They are not that keen on making | :04:46. | :04:52. | |
changes, no-one is, but they will accept it. Will it cost them a lot | :04:52. | :04:57. | |
to retracted? Absolutely. It has never been done before. It will | :04:57. | :05:03. | |
cost money but the banks have plenty of that. Thank you. We will | :05:03. | :05:07. | |
make sure you are up to date on what George Osborne says later | :05:07. | :05:17. | |
:05:17. | :05:18. | ||
today. You can find out a lot more online as well. Robert Peston's | :05:18. | :05:25. | |
blog is right there. You can get his full analysis. That will be | :05:25. | :05:32. | |
updated later on. China's president is visiting Russia today - energy | :05:32. | :05:39. | |
is at the top of the agenda. As you said in your headline, a bit of | :05:39. | :05:49. | |
this agreement going on? Absolutely. Hu Jintao hopes a landmark gas deal | :05:49. | :05:52. | |
will be signed. The two nations are in a deadlock, struggling to reach | :05:52. | :06:01. | |
an agreement on prices. If an 11 power deal is signed, this will | :06:01. | :06:07. | |
pave the way for a 70 billion cubic metres of Russian gas to China over | :06:07. | :06:17. | |
:06:17. | :06:28. | ||
the next 30 years. Up gas -- Gazprom ape says profits should be | :06:28. | :06:37. | |
the same as they receive in Europe. China is holding a hard bargain. | :06:37. | :06:42. | |
There are complications over the routing of two pipelines. Russia | :06:42. | :06:50. | |
wants to build from Siberia to China. A deal will eventually be | :06:50. | :06:56. | |
signed however. Thank you. America's credit worthiness is at | :06:56. | :07:00. | |
risk if the borrowing limit is not raised, that is the assessment of | :07:01. | :07:04. | |
Ben Bernanke. He wants republican members of Congress to vote in | :07:04. | :07:11. | |
favour of lifting the current level above its current limits to 14.3 | :07:11. | :07:14. | |
trillion dollars. The US could start defaulting on its obligations | :07:14. | :07:21. | |
if it is not reached. Flights in Perth are being cancelled because | :07:21. | :07:31. | |
:07:31. | :07:36. | ||
of a volcano as flat in Chile. -- ash cloud. As you have been hearing, | :07:36. | :07:40. | |
tens of thousands of angry protesters and a nationwide strike | :07:40. | :07:44. | |
will form the backdrop as Greece's ruling party debates its austerity | :07:44. | :07:50. | |
measures today. It is a far cry from the national consensus that | :07:50. | :07:54. | |
the government wants. If it cannot pass a law it will not get billions | :07:54. | :08:00. | |
of dollars in aid from the EU and IMF. We are joined by a professor | :08:00. | :08:07. | |
of finance at London School of Economics. What are they debating | :08:07. | :08:17. | |
in Parliament today? There are a whole package of measures - one of | :08:17. | :08:22. | |
them includes a tax rise. It is a programme to take place over the | :08:22. | :08:32. | |
next four years or so. Public utilities, such as electricity, | :08:32. | :08:39. | |
water... Will be privatised. These protesters, there are many of them, | :08:39. | :08:45. | |
what do they want to achieve today? A number of them are employees in | :08:45. | :08:50. | |
the public sectors which are to be privatised. They will lose their | :08:50. | :08:56. | |
privileges, high salaries and pensions. People are protesting | :08:56. | :09:00. | |
because they are upset with the way the politicians have mismanaged the | :09:00. | :09:08. | |
economy over the past decade. difficulty is, if massive change is | :09:08. | :09:16. | |
not put in place in Greece is will default on its debt. For these | :09:16. | :09:22. | |
protesters it is a no-win situation? Absolutely. Some will be | :09:22. | :09:30. | |
losing by these changes. Some of it is general anger. It is not | :09:30. | :09:37. | |
rational. The second bail-out is being discussed by EU leaders, they | :09:37. | :09:43. | |
cannot agree on how to put them into place. Absolutely. How much | :09:43. | :09:48. | |
should it be borne by the private sector and how much should be borne | :09:48. | :09:55. | |
by the public sector? It has been quite costly so far. Thank you. | :09:55. | :10:01. | |
This is a story we will keep you up-to-date on. The euro is under | :10:01. | :10:04. |