09/09/2011

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:00:03. > :00:13.international 8 for flood victims. Those are the latest headlines.

:00:13. > :00:15.

:00:15. > :00:23.Time now for the latest money news. The World Business Report.

:00:23. > :00:26.Welcome to World Business Report. What does Barack Obama's job

:00:26. > :00:34.package mean for ordinary Americans?

:00:34. > :00:39.How to avoid another economic downturn. That is the question of

:00:39. > :00:49.finance ministers from the G7 will discuss when they meet in Marseille.

:00:49. > :00:50.

:00:50. > :00:54.Our inflation fears over in China? -- are a.

:00:54. > :00:58.President Barack Obama took the unusual step of addressing both

:00:58. > :01:04.houses of Congress last night and imploring lawmakers at to pass a

:01:04. > :01:08.new jobs bill. The $450 billion proposal is heavy on tax cuts and

:01:08. > :01:14.includes an extension of an employer benefits for those art of

:01:14. > :01:17.work. He called on Congress to pass the measures immediately, saying

:01:17. > :01:21.were that the question was whether politicians could stop the

:01:21. > :01:26.political circus and do something to help the economy.

:01:26. > :01:31.I am sending Congress a plan you should pass right away. It is

:01:31. > :01:35.called the American jobs that. There should be nothing

:01:35. > :01:38.controversial about this piece of legislation. Everything in here is

:01:39. > :01:44.the kind of proposal that has been supported by Democrats and

:01:44. > :01:52.Republicans, including many that City tonight. Everything in this

:01:52. > :01:59.bill will be paid for, everything. To the analysts agree with that

:01:59. > :02:06.you? This is still the debate. Before and $50 billion he is

:02:06. > :02:13.talking about will mainly be spent on tax cuts for employers and

:02:13. > :02:19.workers and infrastructure projects -- the $450 billion. He says none

:02:19. > :02:23.of that will add to the soaring deficit. But that is dependent on a

:02:23. > :02:27.committee that has been brought together to look at the deficit.

:02:27. > :02:33.That will be rather not known. The White House has steered clear of

:02:33. > :02:37.saying what exactly the results of the spending would be. They got

:02:37. > :02:43.burnt with the last stimulus package. $800 billion at the start

:02:43. > :02:45.of the economic recession. Now all we have is one independent a

:02:45. > :02:51.columnist for saying it will probably add about 2 million jobs

:02:51. > :02:56.and bring down the unemployment rate by about 1%. That is if

:02:56. > :03:02.Congress actually passes all of this plan. The House of

:03:02. > :03:07.Representatives is not dominated by Devin Gales -- Democrat.

:03:07. > :03:13.Republicans control the lower house, Democrats control the Senate and

:03:13. > :03:19.the White House. But there has been an acrimonious battle over the

:03:19. > :03:23.summer over raising the borrowing limit of America. It almost push

:03:23. > :03:28.the United States to the brink of defaulting on its debt. That is

:03:28. > :03:34.really the debt of the division between the two parties. Can they

:03:34. > :03:39.really come together? Barack Obama said again and again - he repeated

:03:39. > :03:47.it at nauseam - that politicians must come together and act now with

:03:47. > :03:51.the situation with jobs -- desperate situation. It needs to be

:03:51. > :03:57.done ahead of the presidential elections 14 months away.

:03:57. > :04:02.measures brought in now would take time to take effect. There is one

:04:02. > :04:08.thing that everyone it appears unified on. The jobless rate is

:04:08. > :04:13.really central to solving the problem. We have 14 million

:04:13. > :04:16.Americans out of work and those are just the ones that are counted.

:04:16. > :04:21.Also the long-term unemployment problem is really coming to the

:04:21. > :04:28.fore. People who have lost their jobs and have been unemployed for

:04:28. > :04:35.months and years. That length of unemployment is incredibly damaging.

:04:35. > :04:44.Ben Bernanke has talked about it. You are seeing Americans out of

:04:44. > :04:49.work for more weeks then -- in a row at then any previous downturn.

:04:49. > :04:55.Find dance ministers from the G7 nations meet for a summit in

:04:55. > :05:00.Marseille -- finance ministers. Over the past month fears of a

:05:00. > :05:06.recession have wiped billions of international markets. What can the

:05:06. > :05:11.G7 nations do can -- to revise their economies?

:05:11. > :05:17.Earlier this week trade unions in Italy held a general strike against

:05:17. > :05:25.austerity measures. At the same time the world financial traders

:05:25. > :05:33.were being more disruptive, wiping billions of dollars of stir up --

:05:33. > :05:37.stock market values. Stock markets had been struck by the same fear.

:05:37. > :05:44.Back government austerity measures are leading economies drive. It is

:05:44. > :05:50.those same of financial traders there been hammering at government

:05:50. > :05:55.bonds. What can the G7 nations due to spur growth without hiking

:05:55. > :06:01.public spending? The USA and Britain, with tarrying deficits and

:06:01. > :06:09.interest rates at rock bottom, have little room to manoeuvre. But what

:06:09. > :06:16.about the G7 economies whose countries -- economies are motoring

:06:16. > :06:26.again? They could try and absorb some of the exports of countries

:06:26. > :06:33.

:06:33. > :06:38.with a problem on the trade balance. None -- like Germany and Japan.

:06:38. > :06:43.Germany is saying there is no way to escape from a slowdown. It is

:06:43. > :06:49.something that needs to be accepted because the alternative is to let

:06:49. > :06:52.public debt grow indefinitely. The markets would love it if the G7

:06:53. > :07:02.invented some way to revive flagging economies while still

:07:03. > :07:08.

:07:08. > :07:16.cutting budget deficits. This will not have that -- happen.

:07:16. > :07:24.The eurozone crisis at and economic slowdown in it the Europe -- Europe

:07:24. > :07:34.and the US has been one concern. Another concerned is the inflation

:07:34. > :07:41.

:07:41. > :07:48.rate in China. Consumer prices. The headline price in August was 6.2%.

:07:48. > :07:55.The prize in of July was 6.5%. That was the highest in years. The most

:07:55. > :08:01.recent figure is a sign that the central bank's policies are

:08:01. > :08:05.starting to take effect. Some are saying that inflation has peaked in

:08:05. > :08:12.China. That may be the case. We will have to see in coming months.

:08:12. > :08:20.We will have to see our prices for things like pork and vegetables

:08:20. > :08:30.fair at in autumn. Beijing says that controlling prices is its top

:08:30. > :08:40.priority. Higher food prices had a large impact on demonstrations in

:08:40. > :08:45.the Arab Spring. We will have to see how successful trying to stop

:08:45. > :08:50.inflation will be. The US Congress has given final

:08:50. > :09:00.approval to an overhaul of the US patent system. The new law it is

:09:00. > :09:01.

:09:01. > :09:11.aimed at bringing US patents more in line with international policies.

:09:11. > :09:17.It will help to clear a huge backlog of patent applications.

:09:17. > :09:23.Legal issues will delay a merger between two car companies. Analysts

:09:23. > :09:30.were not surprise at the decision. Companies say they are

:09:30. > :09:35.investigating other ways of creating an integrated Auto Group.

:09:35. > :09:41.I would just quickly show you what has been happening on the market.

:09:41. > :09:45.The European markets bouncing back a bit there. The hope is that in

:09:45. > :09:48.Marseille the nation's will come up with some coordinated response to

:09:48. > :09:58.this renewed economic slowdown. There are some doubts as to whether

:09:58. > :10:02.

:10:02. > :10:07.they have the firepower to do that. European markets are ahead of that.

:10:07. > :10:12.So more news from around the UK. The leader of the UK Independence

:10:12. > :10:17.Party will attempt to woo Conservative voters in a speech at

:10:17. > :10:22.his party's annual conference today. He is expected to accused the

:10:22. > :10:25.Tories of deceiving voters with unfulfilled promises about the

:10:25. > :10:33.European Union. A proposal for an English

:10:33. > :10:37.parliament. He tried to lift his party and attract new supporters.

:10:37. > :10:42.The air are vast numbers of supporters of the Conservative

:10:42. > :10:52.Party who feel let down by David Cameron. Not as breaking a promise

:10:52. > :10:52.

:10:52. > :10:56.to give a referendum but signing us up to European policy. Today he

:10:56. > :11:06.accused the Conservatives of deceiving voters. But UKIP emerged

:11:06. > :11:06.

:11:06. > :11:10.from the maybe it -- May elections with just a handful of councillors.

:11:10. > :11:16.One leader defected to the Conservatives. Another called on

:11:16. > :11:23.the party leader to resign. They have still not patch up relations

:11:23. > :11:30.with this man -- woman. She was expelled last year. But you keep

:11:30. > :11:38.still has a clutch of MPs -- MEPs and the privileges that can bring,

:11:38. > :11:48.like the space in this office. For a long time they have wondered how

:11:48. > :11:50.

:11:50. > :12:00.they can turn European success into success in English elections.

:12:00. > :12:01.

:12:01. > :12:11.Coming up Colin Breakfast. All that and more with Charlie and Susanna

:12:11. > :12:14.

:12:14. > :12:19.from 6am this morning. These are the top stories.

:12:19. > :12:24.President Barack Obama has announced a jobs creation scheme

:12:24. > :12:31.worth around $450 billion. In a speech to a rare joint system of

:12:31. > :12:36.Congress he said he wanted to jolt the stalled economy of America. He

:12:36. > :12:41.repeatedly urged opponents to pass the Bill straightaway. The Speaker

:12:41. > :12:47.has said the proposals of the President merited some

:12:47. > :12:51.consideration. The mayor of New York said he is

:12:52. > :12:57.aware of specific and credible terrorist attacks on the

:12:57. > :13:06.anniversary of 9/11. He said the threat had to be taken seriously.

:13:06. > :13:11.Police seem to be concerned about a vehicle based bomb. Numberplate

:13:11. > :13:15.recognition scanning technology. The search of lock-up garages

:13:16. > :13:21.across the city. All of that suggest what they are on alert for

:13:22. > :13:28.is some kind of plot involving a vehicle or a track as per the

:13:28. > :13:34.attempted attack in Times Square last year. On his first trip to

:13:34. > :13:44.Tripoli since the civil war a Libyan leader has announced that

:13:44. > :13:46.