Browse content similar to 03/08/2011. Check below for episodes and series from the same categories and more!
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Welcome to World Business Report. Italian bond yields soared to | :00:02. | :00:09. | |
levels not seen since the euro was introduced as the eurozone crisis | :00:09. | :00:13. | |
returned to the plot line. Portugal's Parliament is about to | :00:13. | :00:16. | |
debate amendments to this year's budget as the centre-right | :00:16. | :00:21. | |
government fight to bring the deficit and debt under control. | :00:21. | :00:26. | |
In Asian stock markets, live there for a second trading day as | :00:26. | :00:36. | |
:00:36. | :00:37. | ||
investors worry about the state of the US economy. | :00:37. | :00:42. | |
More and Italy's financial woes in a moment. First, the credit rating | :00:42. | :00:47. | |
agency Moody's has confirmed that the US will keep its triple-A | :00:47. | :00:54. | |
rating and avoid a default on its debt. But it has a negative a book | :00:54. | :00:58. | |
after its rival Fitch ratings that held the US's rating with a similar | :00:58. | :01:04. | |
warning. Standard and Poor's has been tougher than its rivals, | :01:04. | :01:08. | |
threatening to downgrade US ratings by mid-October before makers don't | :01:09. | :01:13. | |
come up with a plan to meaningfully cut the budget deficit. | :01:13. | :01:19. | |
The markets have been a problem that ties by the US drama but the | :01:19. | :01:25. | |
problems in the eurozone continue to escalate. A clear signal is that | :01:25. | :01:32. | |
action needs to be taken. Italian bond yields have reached 6.3%. | :01:32. | :01:39. | |
Th Thcould soon Top Spain's. The country's financial stability | :01:39. | :01:44. | |
Committee held a -- an emergency meeting to discuss the market | :01:44. | :01:48. | |
turmoil that has sent the Italian stock market to a 20 mud load. | :01:48. | :01:53. | |
Later today, Silvio Berlusconi is expected to break days of public | :01:53. | :02:00. | |
silence over the crisis but a special address on the Connor will | :02:00. | :02:04. | |
stop joining us from Rome is the academic director of the European | :02:04. | :02:08. | |
School of Economics. Tee mac for joining us. Or will we see the kind | :02:08. | :02:12. | |
of structural reform from Silvio Berlusconi that markets and | :02:12. | :02:22. | |
:02:22. | :02:25. | ||
investors want to see? Their -- is anticipation regarding the speech | :02:25. | :02:31. | |
of Mr Berlusconi. He is talking about reforms regarding the labour | :02:31. | :02:38. | |
market. In Italy, we already have some reforms regarding the labour | :02:38. | :02:45. | |
market. The investors and international markets are expected | :02:45. | :02:51. | |
-- expected something more regarding the debt and the way we | :02:51. | :02:57. | |
are going to use the public resources to privatise some assets | :02:57. | :03:02. | |
and reduce the cost of the administration and other | :03:02. | :03:07. | |
institutions in Italy in order to give a clear sign that we're going | :03:07. | :03:16. | |
to change the way we are using public resources in Italy. | :03:16. | :03:21. | |
difficult is it at the moment? Italy's public debt is huge. 120 % | :03:21. | :03:30. | |
of GDP. How much room does it have to manoeuvre? In principle, there | :03:30. | :03:36. | |
are some studies that demonstrates that public assets in Italy | :03:36. | :03:45. | |
acquired huge. The value of these public assets can be used to cover | :03:45. | :03:51. | |
the public debt. The problem is that in this year, no government | :03:51. | :03:59. | |
tried to transform these assets in a way to reduce the public debt. | :03:59. | :04:04. | |
This is time to move in this direction. The political interests | :04:04. | :04:12. | |
is huge. Sometimes it is difficult because the public interest tends | :04:12. | :04:20. | |
to stop any reform. Tee mac for joining us. | :04:20. | :04:24. | |
Portugal's Parliament on Wednesday debates and then bent to the budget | :04:24. | :04:28. | |
for the coming year. The centre- right fight to bring the deficit | :04:29. | :04:33. | |
and debt under control. Legislation was drafted by financial officials | :04:33. | :04:37. | |
to allow the state to pumped 4 billion euros into the country's | :04:37. | :04:43. | |
banks which had been shunned by international commercial lenders. A | :04:43. | :04:47. | |
much larger bear that is already agreed with the European Union and | :04:47. | :04:53. | |
IMF. This week has seen another blow for | :04:53. | :04:56. | |
the long suffering Portuguese with public transport prices going up by | :04:56. | :05:04. | |
an average of 15%. If we spend here, we have to make | :05:04. | :05:07. | |
cuts elsewhere. It is the same old story about the need to tighten our | :05:07. | :05:12. | |
belts. We have tightened them so much it is getting increasingly | :05:12. | :05:17. | |
difficult to cope. The right-of- centre coalition has blamed its | :05:17. | :05:22. | |
predecessor for the extra spending cuts it says I needed. But the | :05:22. | :05:26. | |
Finance Minister is submitting a corrective budget to allow for a | :05:26. | :05:31. | |
massive recapitalisation of Portugal's banks as part of the | :05:31. | :05:35. | |
country's 78 billion euros bail-out. The bench will that shutting out | :05:35. | :05:37. | |
other international markets. A businesses say the reluctance to | :05:38. | :05:42. | |
lend his deepening the recession. Economists agree Portugal's | :05:42. | :05:47. | |
underlying problem has long been its chronically weak growth. In an | :05:47. | :05:51. | |
interview with state television, the economy minister criticised | :05:51. | :05:54. | |
public row of -- past reliance on public works projects. He committed | :05:54. | :05:57. | |
the government to rolling back the patient's age that traditionally | :05:57. | :06:01. | |
pads the state payroll and cutting spending even faster than | :06:01. | :06:07. | |
international lenders demand. TRANSLATION: The accord calls for | :06:07. | :06:12. | |
15% cuts in expenditure. We will try to be more ambitious and make | :06:12. | :06:19. | |
it a target of 30%. Portugal has pledged to cut its public sector | :06:19. | :06:23. | |
deficit from more than 9% last year. The opposition Socialist Party is | :06:23. | :06:27. | |
committed to implementing the bail- out negotiated by its own leaders | :06:27. | :06:32. | |
months ago. Unions are opposed to plans to loosen job protection. | :06:32. | :06:37. | |
Protests are expected to multiply as the cuts bite. All of this at a | :06:37. | :06:40. | |
time when officials from the UN di mare for in-town to assess progress | :06:40. | :06:50. | |
:06:50. | :06:53. | ||
and to decide whether to release the next ones. -- of funds. | :06:53. | :06:57. | |
We have been talking about credit agencies and a few of the US. There | :06:57. | :07:01. | |
is one agency that cut its downgrade. | :07:01. | :07:07. | |
That right. It is the China's leading credit agency. They | :07:07. | :07:10. | |
undertook a major move which none of the other global ratings | :07:10. | :07:18. | |
agencies have done and that is downgrading US sovereign debt. They | :07:18. | :07:23. | |
-- they lowered the rating to a single a with a negative outlook | :07:23. | :07:33. | |
:07:33. | :07:37. | ||
from a pass. -- A-plus. The gloomy assessment was inevitable. It will | :07:37. | :07:44. | |
eventually lead to a further decline in its debt payment ability. | :07:44. | :07:48. | |
This move could not just at the US but also China, the largest foreign | :07:48. | :07:53. | |
owner of US debt with holdings worth almost 1.2 trillion US | :07:53. | :07:59. | |
dollars. The privately held firm which was founded in 1994 to | :07:59. | :08:02. | |
Greater Chinese companies attracted worldwide attention last July when | :08:02. | :08:07. | |
it published its first seven credit ratings and cited growing deficits | :08:07. | :08:14. | |
in the developed world Bank of China higher than the US and Japan. | :08:14. | :08:18. | |
-- ranked China higher. What is going on in the Asian markets this | :08:18. | :08:22. | |
morning? All in negative territory because of the slowdown of the US | :08:22. | :08:28. | |
economy. Japan, South Korea, Hong Kong, Australia, all in negative | :08:28. | :08:34. | |
territory for a second day. Wall Street shares have plunged, retail | :08:34. | :08:42. | |
sales are falling. Thank you. Some of the Other | :08:42. | :08:47. | |
business news: Dougal's new social their workers attracted 25 million | :08:47. | :08:53. | |
users making it the fastest website to reach that audience size. In | :08:53. | :08:57. | |
contrast, it took Facebook around three years to attract 25 million | :08:57. | :09:01. | |
visitors while Twitter took over 30 months. | :09:01. | :09:06. | |
A shake-up of UK copyright law is expected today. At the moment, it | :09:06. | :09:10. | |
is technically illegal to transfer content from CDs and DVDs on to a | :09:10. | :09:15. | |
different format such as an MP3 file on a computer. The government | :09:15. | :09:19. | |
will today scrap these restrictions and make it legal for individuals | :09:19. | :09:23. | |
to burn copies have purchased content for other family members to | :09:23. | :09:29. | |
use. A look at the market. Not much | :09:29. | :09:39. | |
:09:39. | :09:41. | ||
change from yesterday. Goodbye. News from around the UK: the | :09:41. | :09:45. | |
Department of Health has been told to urgently reconsider spending | :09:45. | :09:49. | |
billions of pounds it set aside for a national computer system for the | :09:49. | :09:54. | |
NHS in England. The Public Accounts Committee says the system is | :09:54. | :09:59. | |
unworkable and many are now coming up at their own systems which may | :09:59. | :10:03. | |
not be compatible. It was supposed to be a revolution | :10:03. | :10:07. | |
in the bay the NHS uses technology. The results of scans and other | :10:07. | :10:11. | |
detail patient records going on to a universal computer system which | :10:11. | :10:16. | |
doctors and nurses across England could save. Today's report says | :10:16. | :10:20. | |
that will never happen and millions of pounds may have been wasted. It | :10:20. | :10:23. | |
says trying to create a system of one size fits all has proved | :10:23. | :10:28. | |
unworkable. The remaining �4.3 billion of the budget may be better | :10:28. | :10:32. | |
used on other systems that do work. The Department of Health was | :10:32. | :10:37. | |
clearly overpaying for computers, including spending �9 million for | :10:37. | :10:42. | |
systems that have cost other parts of the NHS less than �2 million. | :10:42. | :10:46. | |
Even the money that has produced something you can touch and feel | :10:46. | :10:54. | |
has been spun -- spent much less efficiently there could have been. | :10:54. | :10:58. | |
The most important thing, the detail of care record, the central | :10:58. | :11:02. | |
purpose of this entire programme, will not now be achieved. Many | :11:02. | :11:05. | |
hospital trusts have gone their own way with other computer systems. | :11:05. | :11:14. | |
The government says it is already working to cut spending on NHS. | :11:14. | :11:24. | |
:11:24. | :11:24. | ||
Coming up, IBreakfast. All the papers mac news, business and sport | :11:24. | :11:29. | |
and a discussion of the Trade Not many of us are willing to give up. | :11:29. | :11:32. | |
Shows on the stage a more successful than ever. 14 million of | :11:32. | :11:41. | |
us have attended them. All of that and a ball from 6pm this mac 6am. - | :11:41. | :11:51. | |
:11:51. | :11:52. | ||
You are watching BBC World news. The headlines: Egypt's former | :11:52. | :11:56. | |
president is due to go on trial later today. He is accused of | :11:56. | :11:59. | |
corruption and ordering the killing of hundreds of demonstrators who | :11:59. | :12:03. | |
took to the streets to demand his removal. | :12:03. | :12:08. | |
The UN says that Syria's president has lost all sense of humanity | :12:08. | :12:10. | |
after a brutal crackdown by government forces claimed dozens of | :12:10. | :12:14. | |
lives. The US has held on to its triple A | :12:14. | :12:18. | |
rating after an agreement was reached to raise the debt ceiling | :12:18. | :12:23. | |
and slash spending. A Washington correspondent says there is still | :12:23. | :12:28. | |
plenty of cause for concern. Within hours of President Obama | :12:28. | :12:31. | |
signing the Bill to raise the debt ceiling, the stock market plummeted. | :12:31. | :12:35. | |
The figures show that consumer spending, the powerhouse behind | :12:35. | :12:40. | |
America's economy also fell for the first time in two years. The | :12:40. | :12:44. | |
country's sterling credit rating could still be downgraded in the | :12:44. | :12:49. | |
months to come. Italy's PM is to address parliament | :12:50. | :12:58. | |
in Rome amid growing fears for the It's that time where we look | :12:58. | :13:01. | |
through all of the newspapers and stories making headlines around the | :13:01. | :13:05. | |
world. Let's start with an image in the International Her apld Tribune. | :13:05. | :13:11. | |
It's of a -- Herald. It's of a vandalised picture of Egyptians | :13:12. | :13:16. | |
with Hosni Mubarak's image splattered with paint. The deposed | :13:16. | :13:19. |