Browse content similar to 15/08/2011. Check below for episodes and series from the same categories and more!
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around the island. They are as are the latest | :00:02. | :00:12. | |
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headlines. Now for the latest financial news. | :00:15. | :00:19. | |
Welcome to World Business Report. Here are the headlines: A victim of | :00:19. | :00:27. | |
its own success. Switzerland are battles on the rise of the franc. | :00:27. | :00:31. | |
And Japan's economy are still hit by earthquakes but not as much as | :00:31. | :00:37. | |
many had feared. The president of the World Bank is | :00:37. | :00:47. | |
:00:47. | :00:50. | ||
warning that markets are heading towards a new danger zone. | :00:50. | :00:53. | |
Reports are emerging of a crisis meeting in Switzerland to discuss | :00:54. | :00:59. | |
the relentless rise of the franc. A Swiss newspaper reported that the | :00:59. | :01:08. | |
government and central bank held talks over the weekend. | :01:08. | :01:13. | |
But first we report on the strength of the franc is forcing companies | :01:13. | :01:17. | |
to choose between a making a proper to a losing market share. | :01:17. | :01:23. | |
It may look like business as usual, but the Swiss bank has risen 25% on | :01:23. | :01:28. | |
the row in 18 months. Locals are getting better value elsewhere so | :01:28. | :01:33. | |
local businesses are deserted. Not so long ago companies were actually | :01:33. | :01:37. | |
moving to Switzerland because of the tax advantages of not being in | :01:37. | :01:42. | |
the European Union. But now the height of the franc is causing a | :01:42. | :01:48. | |
problem. Investors are repeatedly having to cut their prices just to | :01:48. | :01:57. | |
keep their customers. This company create designer -- fabrics. The | :01:57. | :02:01. | |
company has already said it has cut prices to the point where it is no | :02:01. | :02:07. | |
longer making a profit. We are looking for new strategies. It is | :02:07. | :02:17. | |
:02:17. | :02:18. | ||
very important that we can survive here in Switzerland. A body | :02:18. | :02:24. | |
representing these was mechanical and engineering industries are | :02:24. | :02:31. | |
saying that one in three companies are now losing money. This goes | :02:31. | :02:37. | |
directly into the margins. We estimate that one third of our | :02:37. | :02:43. | |
members are now on the losses own. It seems that Swiss tourism and | :02:43. | :02:49. | |
exporters are paying the price for their country's safe haven status. | :02:49. | :02:53. | |
Switzerland finds itself in the same boat as a Brazil and Japan. A | :02:53. | :02:59. | |
strong currency it can do little about. | :02:59. | :03:09. | |
:03:09. | :03:09. | ||
For more on the possible solutions to Swiss's franc we are joined from | :03:09. | :03:15. | |
capital markets. Is it likely that Switzerland will try to introduce a | :03:15. | :03:21. | |
limit. This might conform -- compromise its status as a tax | :03:21. | :03:31. | |
:03:31. | :03:32. | ||
haven. The bank has tried to intervene. The problem in doing so | :03:32. | :03:38. | |
is that it would have to give up control over monetary policy. | :03:38. | :03:44. | |
us turn to Italy. There are concerns about Italy's position. It | :03:44. | :03:50. | |
has now passed some sort of measure last Friday. How convincing is it? | :03:50. | :03:57. | |
There is no definitive picture yet until we get all the details. It is | :03:57. | :04:03. | |
a credible measure worth about 45 billion euros. It looks to decrease | :04:03. | :04:12. | |
spending and increased taxes. It is a significant step in the right | :04:12. | :04:18. | |
direction. Given that is what is unsettling the market, could we be | :04:18. | :04:25. | |
in for, a week? The market is exceptionally volatile. We should | :04:25. | :04:35. | |
:04:35. | :04:38. | ||
expect something a little bit. But we are not out of the woods yet. | :04:38. | :04:44. | |
And Nicholas Sarkozy and Chancellor Michel are meeting once again. -- | :04:44. | :04:53. | |
Michel. There are no major announcements to come out of the | :04:53. | :05:03. | |
:05:03. | :05:09. | ||
meeting. I think we and can expect support for the Europe. But I'm not | :05:09. | :05:14. | |
sure we will get any specific measures. -- the road. Let us move | :05:14. | :05:18. | |
on to Japan where the economy is recovering from the devastating | :05:18. | :05:24. | |
earthquake and tsunami earlier this year. The economy contracted by | :05:24. | :05:31. | |
0.3%. That is much less than analysts had been expecting. Let us | :05:31. | :05:36. | |
cross over to Tokyo. The response in Japan is pretty good. The growth | :05:36. | :05:44. | |
in Japan -- the recession in Japan is much less than had initially | :05:44. | :05:54. | |
:05:54. | :05:56. | ||
been up feared. We got a decline of 0.3%. Analysts hero had been | :05:56. | :06:06. | |
:06:06. | :06:06. | ||
expecting a decline of a 2%. Production is picking up. The | :06:06. | :06:10. | |
supply chains that were broken when factories making components were | :06:10. | :06:13. | |
damaged or destroyed are being reconnected more quickly than | :06:13. | :06:19. | |
expected. Japanese consumers seem to be getting over their mover of | :06:19. | :06:28. | |
self- -- mood of self-restraint. What is going on in the rest of the | :06:28. | :06:32. | |
world may still pose problems. you compare it to the eurozone and | :06:32. | :06:36. | |
the United States then the underlying dynamic in Asia is much | :06:36. | :06:42. | |
more positive. That is the case. But the critical thing is the | :06:42. | :06:51. | |
dollar - yen exchange rate. Exporters are being relied on in | :06:51. | :06:56. | |
Japan for growth. The issue is how high the end is. It is approaching | :06:56. | :07:03. | |
-- yen. It is approaching its highest levels since the Second | :07:03. | :07:13. | |
World War. Those high rates are really what could harm Japan's | :07:13. | :07:18. | |
progression in the months ahead. A warning from the World Bank | :07:18. | :07:25. | |
president about the state of the market. What did the President have | :07:25. | :07:30. | |
to say? He is concerned about developments | :07:30. | :07:34. | |
that are on going in the global economy. He says that recent events | :07:34. | :07:40. | |
have led a many investors to lose confidence in Europe and the United | :07:40. | :07:45. | |
States. He stressed that policy makers have taken too long to deal | :07:45. | :07:51. | |
with debt issues. Economic recovery is now under threat from a new and | :07:51. | :08:01. | |
:08:01. | :08:03. | ||
different storm. He is referring to the slump in investor confidence. | :08:03. | :08:10. | |
There is concern that Europe's debt crisis may spread. This has | :08:10. | :08:14. | |
basically contributed to double- digit declines in Asian stock | :08:14. | :08:19. | |
markets over the past three weeks. He also talk about China's | :08:19. | :08:25. | |
inflation rate. He said that the appreciation of the currency would | :08:25. | :08:34. | |
reduce pressure. But if the numbers rise to about eight - 10% this | :08:34. | :08:40. | |
would be seen as a very serious problem. It has the potential to | :08:40. | :08:43. | |
disrupt the leadership transition and the growth of the Chinese | :08:43. | :08:50. | |
economy. Thank you. One last a story. | :08:50. | :08:53. | |
Authorities in China closed a chemical plant after thousands of | :08:53. | :08:59. | |
protesters took to the street over pollution fears. 10,000 residents | :08:59. | :09:03. | |
confronted riot police outside local government officers. They | :09:03. | :09:07. | |
have refused to accept insurances that there was no leak at the | :09:08. | :09:17. | |
:09:18. | :09:21. | ||
factory. Looking at the market we have really wild swings. | :09:21. | :09:23. | |
have really wild swings. We saw some dramatic losses for the | :09:23. | :09:27. | |
We saw some dramatic losses for the Dow. Market were able to recoup | :09:27. | :09:37. | |
:09:37. | :09:59. | ||
Dow. Market were able to recoup those losses. That's it from me. | :09:59. | :10:03. | |
Here in the UK, the Prime Minister is to announce a review of every | :10:03. | :10:08. | |
aspect of the government's policy in response to the right across the | :10:08. | :10:18. | |
:10:18. | :10:18. | ||
UK. Mr Cameron spoke of the need for a social fight back. | :10:18. | :10:22. | |
A week after England was engulfed by some of the worst rioting in | :10:22. | :10:28. | |
many decades, David Cameron and L - - Ed Miliband went head-to-head on | :10:28. | :10:34. | |
how to stop the violence happening again. This was Mr Cameron in | :10:34. | :10:38. | |
Croydon last week. In a speech later this morning he talked about | :10:38. | :10:42. | |
the slow motion moral collapse in parts of the country. He said this | :10:42. | :10:50. | |
has been a wake-up call for the country. He promises to meant what | :10:50. | :10:57. | |
he calls a broken society. He adds, I will not be found wanting. Ed | :10:57. | :11:01. | |
Miliband are said to the people he met after the riots want a real | :11:01. | :11:07. | |
change. He said that policies needed to be thought through | :11:07. | :11:12. | |
otherwise they would not solve the problem. He renewed calls for a | :11:12. | :11:16. | |
public inquiry. He also said there has been too much prime -- finger- | :11:16. | :11:21. | |
pointing at the police. Theresa May has been accused of criticising the | :11:21. | :11:25. | |
police and interfering too much in their work. She says that she has a | :11:25. | :11:29. | |
duty to set a framework. We need to ensure that the police have the | :11:29. | :11:33. | |
backing for what they are doing and that we make sure they know what | :11:33. | :11:39. | |
the public expect of them. senior police officers and | :11:39. | :11:42. | |
politicians will need to set their differences aside as they sit down | :11:42. | :11:48. | |
face to face for another emergency committee meeting. | :11:48. | :11:55. | |
Coming up at six o'clock: We will be here with breakfast. They will | :11:55. | :12:05. | |
:12:05. | :12:05. | ||
have all the day's business, news and sport. | :12:05. | :12:09. | |
You are watching BBC World News. Here are the headlines: Syrian | :12:09. | :12:14. | |
government forces have attacked democracy activists. A resident of | :12:14. | :12:19. | |
the town it told us about the army is stormed to residential | :12:19. | :12:29. | |
:12:29. | :12:36. | ||
neighbourhoods. At least 28 people were killed. | :12:36. | :12:43. | |
This has come just after a crackdown that went on in another | :12:43. | :12:47. | |
city the Syrian government is bombarding city and the City again. | :12:47. | :12:53. | |
They are shooting anything that moves. The situation is really | :12:53. | :12:58. | |
critical. We do not have a full information about what is going on. | :12:58. | :13:03. | |
Hosni Mubarak is expected back in a Cairo court shortly. He is accused | :13:03. | :13:07. | |
of corruption and killing hundreds of protesters in the uprising | :13:08. | :13:13. | |
earlier this year. Human Rights Watch has accused Somalia's warring | :13:13. | :13:18. | |
parties of contributing up to the humanitarian catastrophe that is | :13:18. | :13:22. | |
ravaging the country. It is calling for all sides to end abuses against | :13:22. | :13:28. | |
civilians and injuring access to aid. | :13:28. | :13:33. | |
The Norwegian gunman who shot 68 people has been brought back to the | :13:33. | :13:36. |