:00:01. > :00:11.Those are the latest headlines from BBC World News.
:00:11. > :00:13.
:00:13. > :00:16.Time for the financial news. Here's Hello, everybody. I'm Aaron
:00:16. > :00:19.Heslehurst. Welcome to the programme. We'll look at all the
:00:19. > :00:24.latest in the world of business and money. Let's look at the headlines.
:00:24. > :00:28.Financial markets await the great speech from Jackson Hold. Will the
:00:28. > :00:36.world's most powerful banker pump more money into the US's flagging
:00:36. > :00:39.economy? Naoto Kahn is stepping down as
:00:39. > :00:43.Japan's Prime Minister. Will his successor do any better on the
:00:43. > :00:48.economy? And rebuilding Libya - the head of
:00:48. > :00:58.Libya's stabilisation team tells the BBC about his plans to get the
:00:58. > :00:59.
:00:59. > :01:03.economy back on track. We'll cross over to Tokyo and talk
:01:03. > :01:07.to Roland shortly. First, let's talk about the central bankers and
:01:07. > :01:12.economists around the world who will meet for three days this week
:01:12. > :01:14.in Jackson Hole, Wyoming. The annual get-together comes at a time
:01:14. > :01:17.when economic growth around the world is slowing. In America, the
:01:17. > :01:27.world's biggest economy, there is particular concern. Despite the
:01:27. > :01:30.size of the problem, bankers only have limited options.
:01:30. > :01:35.As America's central bankers gather in remote Wyoming, they may need
:01:35. > :01:38.some inspiration from this grand landscape. With growth at just 0.8%
:01:38. > :01:42.in the first half of this year, America's economy is faltering.
:01:42. > :01:46.Here on the floor of the New York stock exchange, we've seen huge
:01:46. > :01:50.volatility in the last few weeks in the price of stocks and shares, and
:01:50. > :01:55.big drops in the stock market. That's because people are worried
:01:55. > :01:58.about economic growth in America, about high unemployment and huge
:01:58. > :02:02.government indebtedness. The question is, can the head of
:02:02. > :02:06.America's central bank really do anything about these difficult
:02:06. > :02:11.problems? The central bank has taken some big
:02:11. > :02:16.steps to prop up the US economy, but Aaron Valdez says they are
:02:16. > :02:19.unlike 3 do more now. There's not a big appetite in Washington for $600
:02:19. > :02:23.billion to give a sugar high to traders down here. I don't think
:02:23. > :02:27.we'll actually see it. And that's the problem - I think we're going
:02:27. > :02:32.to see it Friday. Federal Reserve chairman Ben Bernanke plans to keep
:02:32. > :02:38.interest rates near 0% for at least two years. The bank has also spent
:02:38. > :02:41.billions buying bonds to pump money into the economy, despite criticism.
:02:41. > :02:45.But the Fed is facing the heat because the government is more
:02:45. > :02:50.focused on debt than stimulus spending. Economists say there are
:02:50. > :02:54.things that could be done. Access to lower interest rates and
:02:54. > :02:58.some sort of job stimulus paired with medium-term debt relief. It's
:02:58. > :03:02.easy to say on paper, but obviously Washington doesn't make just
:03:02. > :03:07.economic decisions - they make political decisions.
:03:07. > :03:10.President Obama has promised new initiatives aimed at job creation
:03:10. > :03:19.come September - until then, central bankers visiting the big
:03:19. > :03:23.country will be hoping for big Let's get more on this. Bronwyn
:03:23. > :03:27.Curtis, the head of global research as HSBC, joins me. Great to have
:03:27. > :03:29.you with us. Everybody - all eyes and ears - seem to be on Ben
:03:29. > :03:33.Bernanke's keynote speech later this afternoon. Hopes and
:03:33. > :03:36.expectations - they seem so high at the moment - is there a danger that
:03:36. > :03:39.they are so high that, if he doesn't deliver on Monday, the
:03:39. > :03:44.markets will do that? Well, I think that is a big problem,
:03:44. > :03:49.because he's going to talk about growth. And why it might be low for
:03:49. > :03:52.a lot longer, and why they took that very powerful move. So I think
:03:52. > :03:56.the problem is, he's going to tell us something we really don't want
:03:56. > :03:59.to hear, and if that happens, then we might see another fall in the
:03:59. > :04:03.equity markets. Bond markets, of course, will do better.
:04:03. > :04:08.As they always do. Short and sweet, Bronwyn. Thank you for that. You'll
:04:08. > :04:10.be be back with Martine and I to look at the newspapers from around
:04:10. > :04:14.the world. Let's turn our attention to Japan.
:04:14. > :04:17.The Prime Minister there, Naoto Kan, has just confirmed he will be
:04:17. > :04:21.stepping down as the ruling party leader. It means the task in front
:04:21. > :04:25.of what would be the sixth Prime Minister in five years is enormous,
:04:25. > :04:29.to say the least. Let's go straight over to Roland Burke in Tokyo.
:04:29. > :04:33.Great to have you with us. A strong yen, rebuilding, radiation, massive
:04:33. > :04:38.public debt, and of course social- security costs - just to name a
:04:38. > :04:42.few? These are the challenges that will be facing the next prime
:04:42. > :04:44.minister of Japan. He'll be chosen on Monday. While that next prime
:04:44. > :04:47.minister tries to tackle those challenges, he's going to be
:04:47. > :04:52.hampered by the same problem that Naoto Kan has been facing - that's
:04:52. > :04:56.what they call, here, a twisted diet. The diet, of course, is
:04:56. > :05:00.Japan's parliament. The moment, the upper house is controlled by the
:05:00. > :05:05.Opposition. They can delay, they can block. It means that all those
:05:05. > :05:09.issues that the - the big issues of restoring Japan's fiscal health,
:05:09. > :05:13.reducing the enormous public debt, while maintaining social security
:05:13. > :05:17.in an Asian society - it means that all those issues can't be tackled.
:05:17. > :05:20.They're just kicked down the road. Absolutely. Roland, I keep reading
:05:20. > :05:23.and hearing, especially on the back of this announcement now, that the
:05:23. > :05:26.race is on for the sixth prime minister in five years. It is quite
:05:26. > :05:31.a staggering number when you look at it. But the problem analysts are
:05:31. > :05:37.saying is that there hasn't been an administration in long enough to
:05:37. > :05:40.set in long-term economic policy? That's right. I think when we saw
:05:40. > :05:44.the Moody's downgrade of Japan's sovereign debt earlier this week,
:05:44. > :05:47.that was perhaps a sign from Moody's that they don't think that
:05:47. > :05:51.any of the likely candidates are going to have the will, or perhaps
:05:51. > :05:54.the ability, to push through the measures that some economists say
:05:54. > :05:59.are needed in Japan. Like, for a start, raising the sales tax from
:05:59. > :06:04.5% to 10%. The frontrunner, as far as the public is concerned - public
:06:05. > :06:08.popularity - is Sege Mihar, a former foreign minister. The
:06:08. > :06:13.problem is, the public won't get a vote. It's going to be the members
:06:13. > :06:17.of the ruling party who are in parliament, and they, perhaps, are
:06:17. > :06:20.going to make their decision more based on the factions within that
:06:20. > :06:23.ruling party in parliament than anything else. Really, the race is
:06:23. > :06:29.up in the air. It sure is. OK, Roland. Great stuff,
:06:29. > :06:33.as always. Thanks for joining us. A deal has been reached at the
:06:33. > :06:36.United Nations to release 1.5 billion dollars of Libyan assets
:06:36. > :06:39.from American banks. Libya's National Transitional Council has
:06:39. > :06:43.already been outlining its strategy to stabilise the country. But of
:06:43. > :06:48.course with so many challenges, what comes first? That's the
:06:48. > :06:51.question. Ben Thompson put it to the head of the Libyan
:06:51. > :06:55.stabilisation team at Libya's National Transitional Council.
:06:55. > :06:59.One challenge for Libya - what is a Libya without Gaddafi? Most of our
:06:59. > :07:03.population - over 80% - have been born at the time when Gaddafi was
:07:03. > :07:13.in power. Therefore, that's a big challenge in terms of how people
:07:13. > :07:15.are willing to move away from a dictatorial environment and work
:07:15. > :07:19.together. So that is a big challenge for the population that
:07:19. > :07:23.has to be there. Secondly, for the Government that is going to be
:07:23. > :07:26.place, whether it is transitional - it's always going to be a
:07:26. > :07:31.government which is responsible for governing, and not, in a sense,
:07:31. > :07:34.just the placating people. You have to take responsibility. You have to
:07:35. > :07:40.lead. But what for the priorities? How do you get the country and the
:07:40. > :07:46.economy back on track? First, we have to be able to go fast or
:07:46. > :07:51.unfreeze the assets that are Libyan assets abroad. They are substantial.
:07:51. > :07:57.The numbers are over US$100 billion. There will be a government that
:07:57. > :08:02.provides security and justice, a government that will provide a
:08:02. > :08:05.decent, clean, transparent governance. And a government that
:08:05. > :08:09.basically will promote private investment, whether it is foreign
:08:09. > :08:12.or it is national. For more of that interview, and of
:08:12. > :08:19.course all the business issues in the Middle East, you can watch
:08:19. > :08:23.Middle East Business Report on BBC World News on Friday at 1930 GMT,
:08:23. > :08:26.and Saturday at 2230 GMT. Let's take a look at some of the
:08:26. > :08:31.other business stories making headlines today.
:08:31. > :08:34.Japan's core consumer prices unexpectedly rose by 0.1% in July.
:08:34. > :08:38.That's compared to the previous year - despite expectations that
:08:38. > :08:41.the index would fall by the same amount. Higher energy prices were
:08:41. > :08:45.behind the increase. The index includes oil products, but it
:08:45. > :08:52.excludes volatile food prices. Japan's economy has been plagued by
:08:52. > :08:56.years, as we know, of deflation. JP morgue Chase will pay $88
:08:56. > :08:59.million to settle allegations of an apparent violation of rules of
:08:59. > :09:02.transferring assets of countries sanctioned by the US Government.
:09:02. > :09:06.The case involved a loan involving an Iranian shipping company and
:09:06. > :09:10.over 1,000 fund transfers from Cuban nationals which were
:09:10. > :09:12.processed by JP Morgan. The bank says the violations were
:09:12. > :09:16.unintentional. Spain will hold an extraordinary
:09:16. > :09:20.cabinet meeting later on Friday to approve measures to reduce the
:09:20. > :09:24.country's deficit. The meeting is expected to focus on stimulating
:09:24. > :09:28.the labour market. Spain's unemployment rate is 21%, which is
:09:28. > :09:35.more than double the European average. The measures will include
:09:35. > :09:39.changes to work contracts and plans to rechange -- retrain young people.
:09:39. > :09:43.Not change - just retrain them! There are the markets there. All
:09:43. > :09:46.eyes on the US Fed meeting and the keynote speech from Ben Bernanke
:09:46. > :09:49.later on today. Will he or won't he? That's the question. I'll be
:09:49. > :09:59.back with Martine very shortly to take a look at the newspapers from
:09:59. > :10:04.
:10:04. > :10:07.Here in the UK, secret MI5 files just released provide new
:10:07. > :10:14.information about how the writer PG Woodhouse broadcast from Germany
:10:14. > :10:19.during the war. The author of Jeevs and Wooster books was branded a
:10:19. > :10:25.trader after making a series of infamous broadcasts for the Nazis.
:10:25. > :10:30.Wartime France - the Nazis occupying Paris. MI5 files recount
:10:30. > :10:34.the story of one teenage girl caught up. Antonia Hunt helped the
:10:34. > :10:37.French Resistance, but became close to an officer of the Gestapo and
:10:37. > :10:41.working in their Paris office. After the war, the Gestapo officer
:10:41. > :10:47.sought her out, saying she promised to marry him. Her father, a well-
:10:47. > :10:50.known brigadier, asked MI5 to investigate - discreetly. It's very,
:10:50. > :10:53.very clear to the interrogator, who's obviously quite seasoned in
:10:53. > :10:57.this, that she's holding things back. They don't press. I think
:10:57. > :11:02.partly because the retired brigder had asked for her not to be exposed
:11:02. > :11:07.unnecessarily. Also revealed - new details on PG Woodhouse and his
:11:07. > :11:13.broadcasts for the Nazis. This previously secret MI5 file released
:11:13. > :11:16.today focuses on Worker Plaque, at German who'd worked in Hollywood in
:11:16. > :11:20.the '20s and '30s before being based in Paris during the Second
:11:20. > :11:23.World War. There, he was a close contact of PG Woodhouse.
:11:23. > :11:27.Plaque's file reveals Woodhouse tried to downplay their
:11:27. > :11:31.relationship. He worried how much he be paid. He also tried to claim
:11:31. > :11:36.his broadcasts, directed at America, weren't so bad because America was
:11:36. > :11:40.not yet in the war. Years later when he was knighted,
:11:40. > :11:43.Woodhouse hoped that this was a sign the past had been forgotten.
:11:43. > :11:53.The release of these files shows that the secrets of the past do not
:11:53. > :11:57.The RAF says its Red aner andoes display team will fly in an eight-
:11:57. > :12:03.aircraft formation instead of nine, after losing a plane in a fatal
:12:03. > :12:09.crash last Saturday. The whole Hawk T1 fleet had been grounded since
:12:10. > :12:13.Flight Lieutenant Jon Egging died in Bournemouth.
:12:13. > :12:18.These are our headlines here at BBC World News.
:12:18. > :12:21.Libyan rebels have tightened their grip on Tripoli. Fierce fighting
:12:21. > :12:25.has centred on Colonel Gaddafi's compound in the heart of the
:12:25. > :12:29.capital. A deal has been struck at the UN to
:12:29. > :12:33.release $1.5 billion of Libyan assets to meet urgent humanitarian
:12:33. > :12:37.needs. Japan's Prime Minister, Naoto Kan,
:12:37. > :12:43.has resigned. He's been widely criticised for his response to the
:12:43. > :12:46.tsunami in March, and the nuclear meltdown at Fukushima that followed.
:12:46. > :12:50.People living on America's east coast are preparing for Hurricane
:12:50. > :12:53.Irene, the storm that's already inflicted damage on the Bahamas.
:12:53. > :12:57.It's expected to hit New York and Boston over the weekend.
:12:57. > :13:01.Time for us to have a look at the stories that are making head around
:13:01. > :13:08.the world this morning. We start with the Gulf News, which has got
:13:08. > :13:11.this rather fetching picture of Colonel Gaddafi - captioned
:13:11. > :13:15."Wanted." It says in there somewhere, "Dead or alive." You can
:13:15. > :13:19.see the bounty on his head. The papers are also reporting of wild
:13:19. > :13:22.rumours that are flying around Tripoli about the dictator's
:13:22. > :13:27.whereabouts. There's even one suggesting that he's hiding among
:13:27. > :13:33.the animals at the city's zoo. No animal impersonations, please.
:13:33. > :13:37.won't do anything! Follow the money, so the saying goes. Libya's rebels
:13:37. > :13:40.are investigating allegations of possible corruption of the
:13:40. > :13:43.country's $65 billion skov rn wealth fund. The Wall Street