Browse content similar to 22/11/2011. Check below for episodes and series from the same categories and more!
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senior surviving leaders. Now it is time for the latest | :00:05. | :00:15. | |
:00:15. | :00:16. | ||
business also -- business. Hello and welcome to World Business | :00:16. | :00:22. | |
Report. The headlines: Fear and frustration returned to the global | :00:22. | :00:26. | |
financial markets as US politicians failed to agree a $1.2 trillion | :00:26. | :00:34. | |
worth of spending cuts. Asian markets gave a muted reaction | :00:34. | :00:39. | |
to the failure of the US debt talks. Spain prepares far higher borrowing | :00:39. | :00:49. | |
:00:49. | :00:56. | ||
costs of. Good to have you with this. Another | :00:56. | :01:01. | |
day, another debt crisis. Attention is focused across the Atlantic. The | :01:01. | :01:05. | |
super committee charged with finding a compromise to deal on how | :01:05. | :01:09. | |
to act $1.2 trillion in US government spending admitted | :01:09. | :01:13. | |
failure late on Monday. But the matter of reducing America's 15 | :01:13. | :01:17. | |
trillion dollars government debt mountain has not gone away. A | :01:17. | :01:27. | |
:01:27. | :01:33. | ||
series of automatic emergency cuts There were last ditch attempts. | :01:33. | :01:38. | |
size of feeling the pain. But in the end the sides could not agree | :01:38. | :01:44. | |
on which social programmes to Co itself. This means automatic cuts | :01:44. | :01:50. | |
of around $1.2 trillion could come into effect in 2013. President | :01:50. | :01:54. | |
Obama says he is determined to implement those cuts. I will veto | :01:54. | :02:02. | |
any effort to get rid of those automatic spending cuts to domestic | :02:02. | :02:08. | |
spending. But the inaction in Washington has already begun to | :02:08. | :02:14. | |
spooked US markets and could push share prices lower. Investors are | :02:14. | :02:20. | |
going to lookout every move and ask themselves how is that company | :02:20. | :02:26. | |
going to be herds if there is a crisis and we have Greek like | :02:26. | :02:31. | |
cutbacks in spending -- to be heard. While the credit rating agencies | :02:31. | :02:37. | |
seems to have reacted calmly, business leaders are concerned | :02:37. | :02:43. | |
about bickering. It is very unfortunate. I still believe US | :02:43. | :02:50. | |
businesses will pose enough pressure on the government, even in | :02:50. | :02:55. | |
an election here. But Europe stands as a frightening example of too | :02:55. | :03:00. | |
much spending and too little political will. It is easy to see | :03:00. | :03:05. | |
how America got into debt, huge spending on defence and the | :03:06. | :03:09. | |
spiralling cost of its social programmes. The politicians are not | :03:09. | :03:18. | |
finding it easy to pick out of bed. A dangerous deadlock for the | :03:18. | :03:25. | |
American government. The news that the Seebohm Committee | :03:25. | :03:31. | |
came at the end of a tricky day for markets -- super committee. In the | :03:31. | :03:41. | |
:03:41. | :03:42. | ||
US that added to a tricky session. The Dow Jones is damp by 2.2%. -- | :03:42. | :03:49. | |
down by. Now let's see what is happening in Asia. | :03:49. | :03:53. | |
Fairly muted reaction here to the failure of the debt talk. We saw | :03:53. | :04:01. | |
markets opening with bigger declines than it now. They have now | :04:01. | :04:11. | |
recouped some of those steeper losses we saw earlier. They have | :04:11. | :04:17. | |
continued worrying. At one stage we saw the Nikkei hitting an eight- | :04:17. | :04:27. | |
month low. We are seeing markets fairly flat. The Nikkei is down | :04:27. | :04:37. | |
:04:37. | :04:37. | ||
ever so slightly, 0.1%. Australia is down 1%. Those worries about the | :04:37. | :04:42. | |
debt problems and inability of policy makers to come to a | :04:42. | :04:52. | |
consensus is worrying a lot of in - - Asian investors. Investors are | :04:52. | :04:58. | |
seeking out safe havens. The US dollar actually maintained its | :04:58. | :05:04. | |
level in Asia. The Indian rupee fell to a record level on fears of | :05:04. | :05:09. | |
US debt concerns and the concerns in the US. Investors are seeking | :05:09. | :05:15. | |
out safe havens. Thank you. The strong US dollar | :05:15. | :05:21. | |
means many exporters as top Asia are having a better session today. | :05:21. | :05:27. | |
-- out. Spain is to hold its first auction of government debts since | :05:27. | :05:33. | |
the conservative Popular Party came into power. There are expected to | :05:33. | :05:36. | |
be tough austerity measures introduced to bring down the | :05:37. | :05:40. | |
national debt but there has not reduced the interest rates on | :05:40. | :05:44. | |
National government bonds. The party one of the biggest | :05:44. | :05:48. | |
election victory for 30 years but there has been no feel-good factor | :05:48. | :05:52. | |
on the markets. Government bond yields have continued to rise. On | :05:52. | :05:58. | |
Tuesday, the government will go to markers to auction between 2-3 | :05:58. | :06:02. | |
billion it euros worth of Treasury bills. The yields have been rising | :06:03. | :06:07. | |
on this short-term debt. They will get sufficient demand for these | :06:07. | :06:13. | |
issues. But with elevated yields, which will leave a large question | :06:13. | :06:19. | |
mark over how long Spain will be able to finance itself. Last year, | :06:19. | :06:24. | |
the government debts stood at over 9% of national income. The Prime | :06:24. | :06:29. | |
Minister has vowed to bring it down to 4.4% by the end of next year. | :06:29. | :06:37. | |
With his -- discontent five, he will not be in a hurry to start the | :06:37. | :06:41. | |
cuts. TRANSLATION: The government has a large majority but there is a | :06:41. | :06:45. | |
lot to do. I doubt the Government will want to create negative | :06:45. | :06:49. | |
sentiments straight away. Spaniards are hoping the European Central | :06:49. | :06:55. | |
Bank will step in and buy their bonds. Without greater intervention | :06:55. | :06:59. | |
from the ECB it is hard to see what Spain's governments can do on its | :06:59. | :07:04. | |
own to solve its debt crisis. The unemployment based is over 20% and | :07:04. | :07:09. | |
the economy is on the verge of recession. Spending cuts my | :07:09. | :07:14. | |
pleasure over the brink. That may make Spain's debts even harder to | :07:14. | :07:18. | |
pay off. The world's biggest computer maker | :07:18. | :07:28. | |
:07:28. | :07:29. | ||
has reported a 91% fall in profits. That is Hewlett Packard, 209 who | :07:29. | :07:39. | |
:07:39. | :07:43. | ||
made $239 million. Its new devices racked up huge charges. The former | :07:43. | :07:48. | |
boss of the insurance giants i Ng is suing a government for $29 | :07:48. | :07:53. | |
million. He claims the state's takeover in the group was | :07:53. | :07:59. | |
unconstitutional and done without shareholder approval. The | :07:59. | :08:08. | |
government had an 80% stake in the company. | :08:08. | :08:13. | |
In the UK, the rich are getting richer and that is the finding of a | :08:13. | :08:19. | |
year-long inquiry. The reports suggest executive pay has soared in | :08:19. | :08:23. | |
the last 30 years, undermining productivity and damaging trust in | :08:23. | :08:29. | |
British business. Many workers are facing a squeeze | :08:29. | :08:34. | |
with cuts in wages. According to the high paid commission, when it | :08:34. | :08:38. | |
comes to pay there is a growing division between those at the top | :08:38. | :08:45. | |
and everyone else. Last year, the average salary was just under | :08:45. | :08:53. | |
�26,000 while the average total earnings of the 3,100 chief | :08:53. | :09:03. | |
:09:03. | :09:05. | ||
executive was �3.74 million. -- 3,100. The Commission says this pay | :09:05. | :09:10. | |
gap is no longer acceptable. Within five years we will be back at | :09:10. | :09:15. | |
Victorian levels of inequality. If that is what we want as a society | :09:15. | :09:19. | |
then fair enough. I suggest that most people do not want to end up | :09:19. | :09:25. | |
there. At the CBI's annual conference they had an explanation | :09:25. | :09:29. | |
as to why pay packets need to be generous. You have to be | :09:29. | :09:34. | |
competitive with the best of the world. While we are constraining | :09:34. | :09:38. | |
pay in some areas if you want people to come to work in the UK | :09:38. | :09:42. | |
you have to be prepared to pay the amount of money those executors can | :09:42. | :09:48. | |
get elsewhere in the world. report says radical reform in | :09:48. | :09:52. | |
Britain's top boardrooms is needed, including simplifying how executors | :09:52. | :09:58. | |
are paid and making the process more transparent as well as putting | :09:58. | :10:02. | |
employees on a remuneration committees. The business secretary | :10:02. | :10:05. |