Browse content similar to 13/09/2011. Check below for episodes and series from the same categories and more!
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says he is ready to support Egypt's transition to democracy. | :00:03. | :00:13. | |
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Those are the latest headlines. Now for the latest financial news. | :00:17. | :00:22. | |
Hello and welcome to World Business Report. These are the headlines: | :00:22. | :00:26. | |
Looking east for help. Italy turns to China, as the eurozone debt | :00:26. | :00:29. | |
crisis put French banks under pressure. | :00:29. | :00:34. | |
Cutting 1.2 trillion dollars from the US debt, the first item on the | :00:34. | :00:43. | |
agenda for America's super committee. | :00:43. | :00:48. | |
Hello. Italy is turning to China's largest sovereign wealth fund. | :00:48. | :00:51. | |
Meetings have taken place between the China Investment Corporation | :00:51. | :00:55. | |
and Italian officials, according to the Financial Times. As well as | :00:55. | :01:02. | |
buying bonds, they have also covered talks on strategic | :01:02. | :01:06. | |
investments in Italian companies. There are fears that the eurozone | :01:06. | :01:14. | |
crisis is spreading to Italy. Michael, China is reported to be in | :01:14. | :01:19. | |
discussions with Italy, but because it also purchasing Spanish and | :01:19. | :01:23. | |
European assets. Why is it doing that? | :01:23. | :01:26. | |
Are the first thing to mention his there has been no confirmation from | :01:26. | :01:31. | |
China yet about those reports in newspapers about Italy approaching | :01:31. | :01:37. | |
China perhaps to buy Italian bonds. Why would it do this? Quite simply, | :01:37. | :01:41. | |
China has a lot of money, more than three trillion dollars worth of | :01:41. | :01:45. | |
foreign reserves, which it has built up over the last few years | :01:45. | :01:49. | |
because of its trade surpluses. It has money to spend, and it is | :01:49. | :01:54. | |
looking to invest it. Most of that money is invested in the US | :01:54. | :01:58. | |
denominated vehicles, like US Treasury bonds. But it does have | :01:58. | :02:03. | |
money invested in Europe, in Europe bombs. Of course, Italy, which | :02:03. | :02:06. | |
needs to raise money would perhaps go to China, which has money to | :02:07. | :02:13. | |
spend, and suggest they spend money in Italy. This news is not perhaps | :02:13. | :02:21. | |
altogether surprising. China has bought assets in Greece, | :02:21. | :02:25. | |
it is reportedly looking to buy more assets in Italy. Is the | :02:26. | :02:28. | |
Italian government right to be worried about the colonisation of | :02:28. | :02:34. | |
Europe by China? I think it is perhaps a more | :02:34. | :02:38. | |
immediate worry, the need to raise money. In the past, this issue has | :02:38. | :02:42. | |
been raised, particularly in America, because so much of China's | :02:42. | :02:46. | |
foreign reserves have been invested in America. People there have | :02:46. | :02:51. | |
raised the idea that China is essentially America's banker, and | :02:51. | :02:56. | |
what does that mean for negotiating trade deals? It could affect their | :02:56. | :03:01. | |
relationship in all kinds of ways. That could also happen in this | :03:01. | :03:05. | |
particular instance, but at the moment, Italy seems to be in need | :03:05. | :03:09. | |
and China has money. You also have to remember that it is perhaps in | :03:09. | :03:13. | |
China's interests to keep the eurozone stable. China does | :03:13. | :03:16. | |
hundreds of billions of dollars worth of trade with Europe every | :03:16. | :03:22. | |
year. If there is a crisis in the eurozone, a fall down in demand in | :03:22. | :03:26. | |
the economy, then people would buy as many Chinese goods and that will | :03:26. | :03:30. | |
affect the Chinese economy. So it is not simply a truism on the part | :03:30. | :03:35. | |
of the Chinese government if this news turns out to be true. | :03:35. | :03:39. | |
Thank you. Those reports about it of returning | :03:39. | :03:44. | |
to China helped supermarkets on Monday after dramatic falls in | :03:44. | :03:49. | |
Europe after France's three biggest banks bore the brunt of the latest | :03:49. | :03:56. | |
debt crisis sell-off. There are reports all three may suffer a | :03:56. | :04:00. | |
credit score at downgrade by Moody's later this week. Analysts | :04:00. | :04:04. | |
say the real cause of default is speculation that Germany may decide | :04:04. | :04:08. | |
it is better to let Greece default rather than attempt a second bail | :04:08. | :04:13. | |
out. The German economics minister spooked the markets earlier this | :04:13. | :04:17. | |
week by talking about an orderly bankruptcy of Greece. That is | :04:17. | :04:23. | |
something that Germany's finance minister said he could not rule out. | :04:23. | :04:27. | |
TRANSLATION: I think, basically, you cannot exclude anything. I have | :04:27. | :04:30. | |
already said this would be a bad government if it did not prepare | :04:30. | :04:34. | |
for things which you can't imagine. The financial markets are showing | :04:34. | :04:38. | |
an exaggerated nervous reaction. The real economic situation is not | :04:38. | :04:46. | |
as bad. I am joined now by the editor of | :04:46. | :04:50. | |
Investment weekly. Let's talk about those French banks. The investors | :04:50. | :04:54. | |
seem to have lost confidence because of their exposure to debt. | :04:54. | :04:59. | |
Are we likely to see one of them go bust? I suspect we probably will. | :04:59. | :05:01. | |
They have been rumours all through the summer that the three main | :05:01. | :05:11. | |
banks have talked about struggling a considerably. We are coming up to | :05:11. | :05:13. | |
the third anniversary of the collapse of Lehman Brothers, and | :05:13. | :05:17. | |
people are saying that we should let other big institutions fail, | :05:17. | :05:21. | |
too. So I would not be surprised if one of the French banks does go. It | :05:21. | :05:30. | |
will be very painful if it does. It might be taken over by one of the | :05:30. | :05:34. | |
bigger banks. We could talk about a lot more. We will talk to lay debt | :05:35. | :05:37. | |
in the newspaper review. Thank you. | :05:37. | :05:41. | |
The clock is ticking for a new group of lawmakers in Washington, | :05:41. | :05:48. | |
DC who have a tough task. A committee has been created made up | :05:48. | :05:52. | |
of Republicans and Democrats, who will meet this Tuesday, to try to | :05:52. | :05:56. | |
have read a deal that will cut the federal deficit. They have just ten | :05:56. | :06:00. | |
weeks to do it. It is called the Super committee, | :06:00. | :06:06. | |
and its 12 members face a daunting task - they need to cut the US | :06:06. | :06:09. | |
deficit by more than one trillion dollars over the next ten years. | :06:09. | :06:14. | |
With the jobless rate stuck above 9%, Americans are impatient. They | :06:14. | :06:18. | |
want to make sure that budget cuts don't get in the way of job | :06:18. | :06:23. | |
creation. The 12 members of the so- called super committee, six | :06:24. | :06:27. | |
Democrats and six Republicans, are charged with making sweeping cuts | :06:27. | :06:32. | |
to the US federal budget by late November. That is a tall order. | :06:32. | :06:36. | |
Many are worried that these cuts will imperil the already fragile US | :06:36. | :06:39. | |
economic recovery. Others say that the proposed cuts will not be | :06:39. | :06:48. | |
enough to get the economy back on track. This man is one of the most | :06:48. | :06:51. | |
high-profile economic advisers in the US. He is sceptical about US | :06:51. | :06:57. | |
efforts to resolve its debt crisis. A right way to create jobs and rain | :06:57. | :07:04. | |
in the deficit would be higher taxation, especially on companies | :07:04. | :07:11. | |
who are walking away tax-free through international tax agents, | :07:11. | :07:15. | |
as well as higher taxation on the rich. It would give revenues to the | :07:15. | :07:18. | |
government so it could invest in crucial areas. Some experts believe | :07:19. | :07:22. | |
the committee members will succeed because their mandate is within | :07:22. | :07:29. | |
their reach. Are they? The lawmakers should be doing more. | :07:29. | :07:34. | |
trillion dollars is a lot of money. But over ten years, it does not | :07:34. | :07:39. | |
come close to solving our fiscal problem, or two to -- stabilising | :07:39. | :07:47. | |
our debt. Trying to cut the deficit while creating jobs is proving to | :07:47. | :07:57. | |
be one of President Obama's biggest challenges. | :07:57. | :08:00. | |
World leading carmakers will show off their latest models at the | :08:00. | :08:04. | |
Frankfurt Motor Show this week. It comes after a year of strong car | :08:04. | :08:11. | |
sales would have helped revive the motor industry. But the growth of | :08:11. | :08:15. | |
car sales in China seems to be slowing. Economic weakness and | :08:15. | :08:20. | |
record debt levels in Europe and the US are also causing concerns. | :08:20. | :08:26. | |
The chief executive of forward Europe joins us now. Your company | :08:26. | :08:29. | |
did get through the crisis without going bankrupt, and you are now | :08:29. | :08:33. | |
looking to China and Russia, particularly a joint venture in | :08:33. | :08:42. | |
Russia. How difficult is it to work with the Russians? We have signed | :08:43. | :08:46. | |
the manner Matt -- memorandum of understanding with the largest car | :08:46. | :08:48. | |
manufacturer in brush it with a view to completing that and | :08:48. | :08:53. | |
starting the joint venture in the next few weeks. We found the | :08:53. | :08:57. | |
discussions both with the Russian government and with the company to | :08:57. | :09:01. | |
be very fruitful, and joint ventures always have some issues to | :09:01. | :09:05. | |
resolve, but I think it was very professionally approached and I am | :09:05. | :09:10. | |
very comfortable with the Russian company. Let's briefly look at the | :09:10. | :09:16. | |
new car that is coming out. Apparently it will act as your | :09:16. | :09:19. | |
personal assistant as well as driving you anywhere where you want | :09:19. | :09:24. | |
to go? It is not a car that we will launch. We have been quite precise | :09:24. | :09:30. | |
on that. But a number of key design features will be used in the future. | :09:30. | :09:35. | |
There is a lot of technology in the car, some of it to the report in | :09:35. | :09:38. | |
the near term, some of that deliver ball in the longer term. It engages | :09:38. | :09:43. | |
and interacts with the driver. look forward to tested it. Thank | :09:43. | :09:53. | |
:09:53. | :10:06. | ||
you. The now for some it more news from | :10:06. | :10:12. | |
the UK: David Walliams has raised nearly �1.2 billion for Sport | :10:12. | :10:16. | |
Relief after completing his 140 mile swim along the River Thames. | :10:16. | :10:20. | |
He battled a stomach upset, rescued a dog, and avoided being attacked | :10:21. | :10:25. | |
by Swans. Thousands turned out to cheer him on for the final stretch, | :10:25. | :10:31. | |
which he said was one of the most gruelling. | :10:31. | :10:34. | |
He is famous as a comedian and accomplished actor, charity | :10:34. | :10:40. | |
fundraiser, and something of a socialite. But David Walliams's 140 | :10:40. | :10:44. | |
mile, eight days from along the Thames, has propelled him into the | :10:44. | :10:50. | |
world of the superhero. The extraordinary feat started here the | :10:50. | :10:54. | |
river's source and ended in Westminster. Along the way, | :10:54. | :10:59. | |
cheering crowds helped him as he battled freezing, muddy workers, | :10:59. | :11:05. | |
strong tides and dangerous undercurrents. He even rescued a | :11:05. | :11:09. | |
drowning dog along the way. It is very hard to move your body through | :11:09. | :11:16. | |
the water when you feel like you are going to throw up. He has | :11:16. | :11:20. | |
previously swum the Channel and the Straits of Gibraltar for charity. | :11:20. | :11:25. | |
For this challenge, he also had to battle all of the sewage that was | :11:25. | :11:31. | |
washed into the Thames after the weekend's heavy rains. I don't know | :11:31. | :11:35. | |
if I will get into the water again. The bathers the only water I want | :11:35. | :11:39. | |
to see for quite a while! The money raised will kick-start the 2012 | :11:39. | :11:42. | |
Sport Relief campaign, and also undoubtedly raise its profile, as | :11:42. | :11:48. | |
it continues its tradition of raising millions to help improve | :11:48. | :11:53. | |
people's lives in the UK and the most deprived parts of the world. | :11:53. | :11:59. | |
Well done David Walliams. Coming up at 6am, Breakfast. The | :11:59. | :12:02. | |
team will be at the opening of the biggest urban shopping mall | :12:02. | :12:12. | |
anywhere in Europe, as West Field Stratford City opens for business. | :12:12. | :12:17. | |
You are watching BBC World News. The headlines: The head of Libya's | :12:17. | :12:19. | |
transitional government has told thousands of supporters that the | :12:20. | :12:25. | |
country will avoid extremist ideology and promote moderate Islam. | :12:25. | :12:31. | |
He was delivering his first public speech since arriving in Tripoli. | :12:31. | :12:34. | |
Chris's power workers' union says it will sabotage government plans | :12:34. | :12:38. | |
to impose a new emergency property tax designed to save the country | :12:38. | :12:43. | |
from bankruptcy. Kenya's Prime Minister has appealed | :12:43. | :12:48. | |
for calm after a fuel pipeline exploded, killing at least 120 | :12:48. | :12:52. | |
people. The Turkish Prime Minister says he | :12:52. | :12:56. | |
is ready to support Egypt's transition to democracy. He is in | :12:56. | :13:04. | |
Cairo, on the first stock of his tour of North Africa. He has said | :13:04. | :13:07. | |
he wants to place himself as a man who can help reshape the Middle | :13:07. | :13:12. | |
East, and this is very new. In the past, Turkey and Egypt were not | :13:13. | :13:16. | |
particularly close, and in the recent past, Turkey had no | :13:16. | :13:20. | |
influence at all in the Middle East. But the welcome the Turkish Prime | :13:20. | :13:25. | |
Minister got yesterday tells you how much his profile has risen. | :13:25. | :13:35. | |
:13:35. | :13:40. |