Browse content similar to 31/08/2011. Check below for episodes and series from the same categories and more!
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parliament building. Those are the headlines. | :00:01. | :00:11. | |
:00:11. | :00:14. | ||
Now, it is time for World Business Report. | :00:14. | :00:20. | |
The headlines: Stricken car maker Saab's owner posts its latest | :00:20. | :00:27. | |
results. Can they avoid being driven to bankruptcy? Do you -- the | :00:27. | :00:33. | |
eurozone reports its latest inflation figures. | :00:33. | :00:38. | |
Japan's factory output expands less than expected due to the strong | :00:38. | :00:48. | |
:00:48. | :00:48. | ||
currency and slowing overseas demand. | :00:48. | :00:52. | |
It is difficult to make money when your production lines are turned | :00:52. | :01:01. | |
off and gathering cobwebs, in your suppliers halt delivery and you are | :01:01. | :01:07. | |
threatened with bankruptcy. These are the issues that face Saab. | :01:07. | :01:11. | |
Effectively, the carmaker has run out of money, leaving its staff, | :01:12. | :01:16. | |
parts makers and the taxman are all unpaid. Management is set to be | :01:16. | :01:26. | |
optimistic about securing a new money but time is running out. | :01:26. | :01:32. | |
Swedish Automobile cannot make higher earnings while Saab does not | :01:32. | :01:39. | |
make vehicles. The last time this production line was busy was last | :01:39. | :01:43. | |
spring. For the third month running, staff at getting paid late. This is | :01:43. | :01:48. | |
not the future Swedish automobile had in mind when it bought Saab | :01:48. | :01:54. | |
from General Motors one year ago. Saab still employs 3,500 workers in | :01:54. | :01:58. | |
Sweden and 1,100 distributors around the world depends on the | :01:58. | :02:02. | |
company for their business. The situation is now critical. Trade | :02:02. | :02:06. | |
unions say that if Saab does not pay its workers this week, they | :02:06. | :02:11. | |
could go to court to apply to have the company wound up. | :02:11. | :02:16. | |
It does not even own the buildings or the land that it operates from. | :02:16. | :02:21. | |
It has sold off various parts of the company to different investors. | :02:21. | :02:25. | |
If this latest threat goes ahead, they will be running out of things | :02:25. | :02:29. | |
to sell off to make it through this crisis. | :02:29. | :02:34. | |
To restart production at Saab, Swedish Automobile has sold stakes | :02:34. | :02:39. | |
in the company to Chinese manufacturers. In return, those | :02:39. | :02:44. | |
companies can sell and make Saab cars in China. But the deal has not | :02:44. | :02:49. | |
yet been ratified. If they were going to be the white light, it | :02:49. | :02:54. | |
would have happened by now. The Chinese many factories have in the | :02:54. | :02:58. | |
past been very intelligent in getting the best deal, often by | :02:58. | :03:03. | |
drawing the process out. It is possible that they are waiting to | :03:03. | :03:08. | |
pick up Saab at the best price. opinion of the industry is that the | :03:08. | :03:15. | |
Chinese companies will step in to rescue Saab. But in the future, | :03:15. | :03:22. | |
Saab may be a brand made and bought almost exclusively in China. | :03:22. | :03:28. | |
After two interest rate rises, a slowdown in GDP growth and an | :03:28. | :03:33. | |
unemployment right -- rate just under 10%, is the eurozone | :03:33. | :03:37. | |
inflation starting to look less frightening? The latest figures are | :03:37. | :03:41. | |
to be published later this morning. The Consumer Price Index is | :03:41. | :03:47. | |
forecast to remain unchanged. But the chief of the central bank has | :03:48. | :03:53. | |
revealed that the ECB will reassess inflation's risks at a meeting next | :03:53. | :03:57. | |
week, leading to speculation there could be a long pause before the | :03:57. | :04:07. | |
:04:07. | :04:09. | ||
next interest rate rise. Thank you for joining us. | :04:09. | :04:16. | |
Did the ECB get sidetracked in some way by the inflation risk? It was | :04:16. | :04:24. | |
not a core problem of the eurozone but as we know, the ECB has a very | :04:24. | :04:29. | |
large collection with German banks. They had very strong inflation. If | :04:29. | :04:36. | |
you look at the previous rate hikes from the ECB, such as in 2008, that | :04:36. | :04:40. | |
was because of inflation. Meanwhile, the Federal Reserve and the Bank of | :04:40. | :04:44. | |
England were cut in interest rates. It was only later that be ECB | :04:44. | :04:52. | |
decided to join in. High inflation and a heady prices have led to them | :04:52. | :05:00. | |
hiking rates. The inflation rate is still above | :05:00. | :05:06. | |
target. There could possibly be another interest rate rise, then? | :05:06. | :05:13. | |
Potentially, but in the meantime, ECB does not actually look at the | :05:13. | :05:17. | |
inflation rate. They look forward as well to see what inflation might | :05:17. | :05:23. | |
do over the next few months and quarters. If it turns out that | :05:23. | :05:29. | |
growth has got cooler over the last few months, the ECB might decide | :05:29. | :05:35. | |
that it would be more intelligent to hold off on interest rate rises. | :05:35. | :05:41. | |
The rate is 1.5%. He's that good news throughout the US and? | :05:41. | :05:48. | |
would be. The ECB will stay on hold for an extended period of time. I | :05:48. | :05:53. | |
do not think it is the cost of credit that is the problem for the | :05:53. | :06:00. | |
economy at the moment. Instead, it is a loss of confidence in the | :06:00. | :06:07. | |
ability of policy makers to deal with the eurozone crisis. The ECB | :06:07. | :06:17. | |
:06:17. | :06:22. | ||
is staying on hold and is trying to shore up confidence. Thank you. | :06:22. | :06:25. | |
Japan's recovery from the earthquake and tsunami could be | :06:25. | :06:31. | |
running out of steam. Industrial production data from July showed a | :06:31. | :06:36. | |
month-on-month gain of just 0.6%. That is less than half of what | :06:36. | :06:41. | |
economists were forecasting and well below the 3.8% gain in June. | :06:41. | :06:46. | |
It also follows we go than-expected retail and unemployment numbers | :06:46. | :06:52. | |
earlier this week. -- weaker than expected. How much of this is a | :06:52. | :06:59. | |
result of the strong currency? is indeed one of the main reasons. | :06:59. | :07:04. | |
The other factor is a slowdown of overseas demand from Europe and the | :07:04. | :07:09. | |
US, both impacted from economic uncertainties. The Japanese yen has | :07:10. | :07:14. | |
been very strong this year, appreciating more than 6% against | :07:14. | :07:18. | |
the US dollar and that adds to the urgency of the new Prime Minister | :07:18. | :07:26. | |
to put in measures to reverse the appreciation process. Recent moves | :07:26. | :07:33. | |
from currency intervention to aid exporters and transparency measures | :07:34. | :07:40. | |
have only had a very short-term impact on the yen. It has advanced | :07:40. | :07:44. | |
to a post-war high against the greenback and has threatened the | :07:44. | :07:49. | |
livelihoods of exporters. They are now revising their earnings numbers. | :07:50. | :07:55. | |
Production was still positive, however. That includes the likes of | :07:55. | :08:04. | |
transportation equipment and general machinery. | :08:04. | :08:09. | |
A judge in New York has overruled objections to a bankruptcy plan, | :08:10. | :08:17. | |
paving the way for the bank's creditors to receive compensation. | :08:17. | :08:24. | |
They will be awarded 20 on average for every dollar they say they are | :08:25. | :08:28. | |
owed. Leman Brothers collapse just under three years ago after making | :08:28. | :08:33. | |
bad bets in the sub Prime mortgage markets. Brazil's central bank is | :08:33. | :08:37. | |
set to leave the cost of borrowing on hold after five consecutive | :08:37. | :08:42. | |
interest rate rises. It comes one day after a run of bad news. The | :08:42. | :08:49. | |
country's biggest airline scaled back its plans. And the steelmaking | :08:49. | :08:56. | |
industry has put its forecasts up by 8%. | :08:56. | :09:02. | |
Land Rover has relief to -- released the first images of its | :09:02. | :09:10. | |
flagship model. Production of the new vehicle is scheduled for 2015. | :09:10. | :09:14. | |
Eight redesign is necessary because the current model will reach the | :09:14. | :09:22. | |
EU's rules on engine emissions. Elsewhere, two of France's biggest | :09:22. | :09:30. | |
names report their first half earnings. Onrnings. Ona tricky | :09:30. | :09:36. | |
period and is expected to be down 30% at just $82 million. The | :09:36. | :09:42. | |
vending is having an easier time at its earnings have almost doubled. | :09:42. | :09:46. | |
The Italian government begins its auction of its 4th generation | :09:46. | :09:56. | |
:09:56. | :10:08. | ||
mobile frequencies. At least three Format out of five disabled people | :10:08. | :10:11. | |
in the UK are worried that reductions in their benefits could | :10:11. | :10:15. | |
force them to cut back on essentials like food and transport. | :10:15. | :10:19. | |
A charity questioned more than 2,000 people about government plans | :10:19. | :10:23. | |
to replace Disability living Allowance with a new benefit from | :10:23. | :10:28. | |
2013. From tending the garden to holding | :10:28. | :10:34. | |
down a job, this man is proof that using a wheelchair does not stop | :10:34. | :10:38. | |
you from being independent. Some of that is down to willpower but his | :10:38. | :10:42. | |
living allowance is also important. It pays for carers and a specially | :10:42. | :10:46. | |
adapted vehicle. The government's plans to overhaul the benefit has | :10:46. | :10:53. | |
left him worried. I would possibly lose my mobility vehicle and my job. | :10:53. | :10:59. | |
That is not what the government wants to do, the government wants | :10:59. | :11:02. | |
as many people as possible in employment. A recent demonstrations | :11:02. | :11:06. | |
like this one shows that others are just as concerned. The government | :11:06. | :11:11. | |
wants to replace the allowance with a new benefit, the personal | :11:11. | :11:15. | |
independence payment, saving �2 billion per year in the process. | :11:15. | :11:20. | |
Ministers say the new system will be rigorous but there, with more | :11:20. | :11:23. | |
assessments of recipients insuring that help goes to where it is | :11:23. | :11:28. | |
needed. A survey out today says that does not reassure some | :11:28. | :11:31. | |
disabled people. More than three- quarters of those questioned | :11:31. | :11:34. | |
thought they were being treated unfairly and the majority feared | :11:34. | :11:39. | |
that benefit cuts would reduce their independence, or making food, | :11:39. | :11:45. | |
bills and transport unaffordable. The switch to personal payments | :11:45. | :11:48. | |
will not happen for two years and the Department for Work and | :11:48. | :11:52. | |
Pensions says it is too soon to judge who will be affected. But for | :11:52. | :11:57. | |
some people, that means continued uncertainty. The reform touch is | :11:57. | :12:07. | |
:12:07. | :12:18. | ||
not just on their finances but also Coming up: Breakfast with all the | :12:18. | :12:23. | |
day's news, business and sport. The headlines: More details have | :12:23. | :12:28. | |
emerged of future UN involvement in Libya. It looks like the UN will | :12:28. | :12:31. | |
help in setting up a police force in the country and they also | :12:31. | :12:35. | |
provide assistance in organise the elections. Ban Ki-Moon wants the UN | :12:36. | :12:41. | |
to respond as quickly as possible to any such requests. | :12:41. | :12:47. | |
I cannot overstate the urgency of this moment. Time is of the essence. | :12:47. | :12:51. | |
The people of Libya are looking to the international community for | :12:51. | :12:55. | |
help. The transitional government will be outlining specific requests | :12:55. | :13:01. | |
in the coming days. Amnesty International says that | :13:01. | :13:06. | |
nearly 90 people - ten of them children - have died in detention | :13:06. | :13:10. | |
in Syria over the last five months following anti-government protests | :13:10. | :13:17. | |
against President al-Assad. The remnants of Tropical Storm | :13:17. | :13:21. | |
Irene are still causing havoc in the north-east of the United States. | :13:21. | :13:25. | |
It is the smaller communities being hit the hardest. Torrential rain | :13:25. | :13:30. | |
has caused severe flooding in several states. | :13:30. | :13:34. | |
Police in Chechnya say at least seven people have been killed in a | :13:34. | :13:39. |