:00:03. > :00:07.Business Report. Welcome to World Business Report. More market
:00:07. > :00:14.turmoil in Asia this Thursday as worries over France lead to falls
:00:14. > :00:19.in Europe and the US. Asian markets are also low were
:00:19. > :00:24.reacting to Wall Street's fall. As England recovers from the impact
:00:24. > :00:34.of the riots, we asked how badly tourism has been affected by the
:00:34. > :00:37.
:00:37. > :00:41.events of the past few days. Shares in the US and Europe fell
:00:41. > :00:46.sharply on Wednesday, continuing the turmoil that hit global markets.
:00:46. > :00:51.Let's have a look at the figures. As far as Wall Street is concerned,
:00:51. > :00:55.these are the closing because there. In Europe as well, not much better.
:00:55. > :01:02.The London market closed down. This is what Asian markets are doing.
:01:02. > :01:07.The Nikkei is down 1%. The Hang Seng is also down 1.5%. Shares of
:01:07. > :01:12.course have fallen those in New York and in Europe. The worry
:01:13. > :01:17.mainly is over France and French banks. Rumours are circulating that
:01:17. > :01:22.France could lose its AAA credit rating. Let's talk to our guest
:01:22. > :01:27.from BTC partners. Thank you for joining us. What do you make of
:01:27. > :01:31.this? It is uncertainty. We have said it a million times. We coped
:01:31. > :01:36.well with good news, even better with bad news, what we do not cope
:01:36. > :01:40.with is uncertainty. I do not remember a period when the world
:01:40. > :01:45.lacked political leadership. It is short in the United States. There
:01:45. > :01:51.is no uniform thought process in Europe. Until they get on top of it
:01:51. > :01:56.and implement cuts, have avengers talking about it, this will
:01:56. > :02:01.continue and continue. Somebody has to get a grip of it. It is no use
:02:01. > :02:10.saying that we must fight on. Where is the plan about cutting debt. In
:02:10. > :02:14.my opinion, debt can destroy democracy. The problem are the
:02:14. > :02:19.rumours surrounding Societe Generale. There are rumours
:02:19. > :02:29.surrounding the debt rating. weeks ago we got Societe Generale's
:02:29. > :02:35.results. They had a big exposure to Greece. In the case of BNP, it is
:02:36. > :02:39.one of the more lively investment banks in it Europe. When the bond
:02:39. > :02:47.market comes under pressure, it is not surprising that the focus goes
:02:47. > :02:54.on them. These compounds the problem. The whole banking sector
:02:54. > :02:58.was hit. What next? Where is the leadership? I do not think we can
:02:58. > :03:04.say, where is the bottom? Until somebody gets a grip on the
:03:04. > :03:10.situation, both in the US and Europe, I thought Mervyn King was
:03:10. > :03:14.excellent. He said that we have done all we can. We are very
:03:14. > :03:22.reliant on what is happening from outside forces. That means the US
:03:22. > :03:27.and Europe. We need leadership. there a safe haven then out? To a
:03:27. > :03:31.degree that I do not think US debt is that much of an issue in terms
:03:31. > :03:36.of the most liquid markets of the world. But President Obama must
:03:36. > :03:40.come up with a programme on where he is going to cut his debt. He
:03:40. > :03:46.must do it quickly. There was a committee put together yesterday.
:03:46. > :03:54.Let's hope they act quickly. Until somebody stands up and says, I am
:03:54. > :03:59.in charge, we will carry on with his. Thank you.
:03:59. > :04:07.Barely a I told you about the Asian markets. Let's take a check on
:04:07. > :04:12.those. Our correspondent is in Singapore. What is the latest?
:04:12. > :04:16.are low. Japan's Nikkei is down about 1%. The Hang Seng is down
:04:16. > :04:21.about 1.5%. Your guest just talked about the state of French banks as
:04:21. > :04:24.well as the state of America's economy. Those issues affect Asian
:04:25. > :04:29.economies and that is why we are continuing to see the volatility in
:04:29. > :04:33.Asia. Your guest said there nobody seems to know where the market is
:04:33. > :04:37.going. Asian investors are saying the same thing. We are likely to
:04:37. > :04:41.see choppy sessions going forward. I want to mention the currency
:04:41. > :04:46.market. The US dollar continues to slide in Asian trade. That means
:04:46. > :04:51.that Asian currencies have been strengthening. Especially the
:04:51. > :04:56.Japanese yen, currently trading at 76.6, that is very close to the
:04:56. > :05:01.record high levels since the end of the Second World War. We are
:05:01. > :05:04.getting to that level. Traders are still aware that Japan's government
:05:04. > :05:09.has repeatedly said that they would monitor the market and would
:05:09. > :05:12.intervene if necessary. But that has not stop the Japanese yen from
:05:12. > :05:20.strengthening. We're also seeing the Australian dollar rising
:05:20. > :05:26.despite a surprise rise in the unemployment rate today. Thank you.
:05:26. > :05:29.Today is the day that Italy's Minister goes to the Rome
:05:29. > :05:33.parliament to changes to say that in future the country will only
:05:33. > :05:40.spend what it can raise. Leaders have acknowledged that Italy will
:05:40. > :05:45.soon be plunged into a full-blown sovereign debt crisis if it fails -
:05:45. > :05:49.- if it fails to balance its budget. This is the man who has to push
:05:49. > :05:56.through far reaching austerity cuts to keep Italy's creditors at bay
:05:56. > :06:01.and the whole country afloat. It will be his toughest task.
:06:01. > :06:06.economy is going at a snail's pace. That will continue over the next
:06:06. > :06:11.few years. Government revenues are likely to rise. They will be relied
:06:11. > :06:16.on having to cut spending to make inroads into the deficit. Italy is
:06:16. > :06:21.bracing itself for a savage cuts of up to 35 billion euros in 2012.
:06:21. > :06:26.These could include putting back the minimum state pension age,
:06:26. > :06:33.attacks on second homes, a one of tax on savings deposits, and
:06:33. > :06:37.symbolic salary cuts for politicians. Reportedly, event Mr
:06:37. > :06:41.Berlusconi is against some of the plans. Italy is ceding its
:06:41. > :06:46.financial decision-making to the ECB in Frankfurt. It has told the
:06:46. > :06:49.Italian Cabinet to nail down plants such as those for privatising state
:06:49. > :06:54.companies and freeing up the economy before taking them to the
:06:54. > :06:59.full parliament. These are Labour and trade reforms which are easier
:06:59. > :07:03.said than done. Markets say that Italy has dodged them for years.
:07:03. > :07:08.Rome knows it is a country under surveillance. It may resent outside
:07:08. > :07:14.interference, but if Mr Tran Monty is not seen to be delivering, the
:07:14. > :07:20.ECB is in a position to put the country into receivership.
:07:20. > :07:26.If you have been watching the English riots, would you be feeling
:07:26. > :07:32.nervous about visiting England? Pictures of high street littered,
:07:32. > :07:37.violent attacks on passers-by have been beamed across the world. It is
:07:37. > :07:40.bad enough for the people living here. But these cities are also
:07:40. > :07:44.destinations for millions of visitors each year from abroad. How
:07:44. > :07:49.many people will be giving Britain a wide berth? And what about the
:07:49. > :07:52.Olympics? I am joined by the head of the 2012 games. Thank you for
:07:52. > :07:58.joining us. How worried are you? This is a PR disaster for the
:07:58. > :08:02.Olympics? Fees and of the best images of Britain that we would
:08:02. > :08:06.like to be showing to the world. -- these are not the best images. But
:08:06. > :08:11.we are confident. We have some great months ahead of us to show
:08:11. > :08:17.the best side of Britain. What do you think the problems are being
:08:17. > :08:22.faced? It is too early to tell exactly what the impact will be
:08:22. > :08:27.both now and in the longer term. The industry is having a very good
:08:28. > :08:31.time at the moment in Britain. We have welcomed an additional 500,000
:08:31. > :08:37.visitors in the last year. We are seeing double-digit growth from the
:08:37. > :08:41.US. Speaking to some businesses in London yesterday, they have had a
:08:41. > :08:45.very strong July. We have great opportunity coming up. We have a
:08:45. > :08:48.fantastic Test match. A lot of viewers in India have been watching
:08:48. > :08:54.that over the last day. That is happening in Birmingham. We have
:08:54. > :09:00.got beach volleyball in London. worry will be on security. Will
:09:01. > :09:06.more money be spent? The organising committee have always stressed that
:09:06. > :09:07.security is high on the agenda. It is one of their priorities. It is
:09:07. > :09:13.something that Britain and London does very well.
:09:13. > :09:17.Thank you. That is a round-up of the latest business. The top
:09:17. > :09:24.headline is the Asian markets and how they have fallen after falls in
:09:24. > :09:34.the US and Europe. In a moment will have the newspaper review. Do stay
:09:34. > :09:40.
:09:40. > :09:44.with us. With five. -- goodbye. More news from the UK. The latest
:09:44. > :09:49.batch of the UFO files released by the National Archives show the
:09:49. > :09:56.Ministry of Defence had neither the resources or will to study the
:09:56. > :10:00.reporting -- the thousands of reported sightings.
:10:00. > :10:06.It might have been... Since the Second World War there have been
:10:06. > :10:13.thousands of sightings of UFO, this in 1967, which turned out to be a
:10:13. > :10:17.classic coats. But not all are so easily explained. In 2000 and for a
:10:17. > :10:21.photographer took a night time shot of his local town hall. When he
:10:21. > :10:26.developed it, he saw a flying saucer. Experts could not explain
:10:26. > :10:32.it. He sent it to the Government. They passed it to a senior image
:10:32. > :10:36.analyst. They declared there was insufficient information. That is
:10:37. > :10:44.probably a kind way of getting out of it. They did not say that it was
:10:44. > :10:48.a flying saucer. They cannot do that. Over the last three years,
:10:48. > :10:52.scores of formerly secret documents on UFO sightings have been released
:10:52. > :10:59.at the National Archives. Is that shows how officials within the
:10:59. > :11:03.ministry responded. One of the a Telecom's officers said that they
:11:03. > :11:07.receive thousands of reports since the Second World War. --
:11:07. > :11:10.intelligence officers. Despite all of these reports, they have never
:11:11. > :11:16.had the staff or resources to investigate them properly. There
:11:16. > :11:21.are still sightings of UFO is. The MoD has closed the UFO desk.
:11:21. > :11:25.Officially it does not investigate them any more.
:11:25. > :11:29.Coming up at 6am, Bill and Louise will be here with breakfast. As
:11:30. > :11:34.well as all of the day's news, business and sport, they will look
:11:34. > :11:36.at the effect of cuts on rural bus services. The transport committee
:11:36. > :11:46.is claimed that the elderly and those with disabilities are being
:11:46. > :11:51.hard hit. -- is claiming that. You're watching BBC World News. The
:11:51. > :11:55.headlines: The huge security operation involving thousands of
:11:55. > :12:00.extra police combined with heavy rain in some areas appears to have
:12:00. > :12:03.prevented a fifth night of rioting in cities across England.
:12:03. > :12:07.The first people to be found guilty of taking part in disturbances have
:12:07. > :12:13.been jailed. The British Prime Minister David Cameron is expected
:12:13. > :12:17.to make a statement later today on how to restore law and order.
:12:17. > :12:21.Shares have fallen on stock markets across Asia following losses in the
:12:21. > :12:28.US and Europe following concerns that France may lose its top credit
:12:28. > :12:33.rating. Hong Kong's Hang Seng index fell by more than 2.5%.
:12:33. > :12:37.A man suspected of masterminding the 2002 Bali bombings has arrived
:12:37. > :12:40.in Indonesia after being extradited from Pakistan. The authorities say
:12:40. > :12:47.he was the field commander who co- ordinated the attacks in Bali in
:12:47. > :12:51.which more than 200 people died. Now it is time for the newspaper
:12:51. > :12:54.review. We look at the stories making headlines around the world.
:12:54. > :12:58.Let's begin with the coverage of the riots which have blighted
:12:58. > :13:00.several English cities. The Guardian looks at the increasing
:13:00. > :13:06.pressure on the Prime Minister David Cameron to abandon his pledge
:13:06. > :13:10.to introduce cuts to the police in the midst of the violence.
:13:10. > :13:15.The Independent examines how vigilante groups took to the
:13:15. > :13:18.streets to confront troublemakers in the absence of the police.
:13:18. > :13:22.The Times examines another turbulent day which saw markets
:13:22. > :13:25.plummet due to rumours that France may see its credit rating