Browse content similar to 06/12/2011. Check below for episodes and series from the same categories and more!
Line | From | To | |
---|---|---|---|
more than twice the size of the Earth. Those are the latest | :00:03. | :00:13. | |
:00:13. | :00:15. | ||
headlines. Now we have the latest financial news. This is World | :00:15. | :00:22. | |
Business Report. The headlines: Standard and Poor's warns that all | :00:22. | :00:26. | |
eurozone countries could be downgraded depending on the outcome | :00:26. | :00:32. | |
of this week's EU summit. Timothy Geithner heads to Europe to voice | :00:33. | :00:42. | |
:00:43. | :00:45. | ||
his concern about the debt crisis. Controversial timing, the credit | :00:45. | :00:50. | |
ratings agency Standard & Poor's has warned that Germany, France and | :00:50. | :00:54. | |
13 other eurozone countries could have their debt rating downgraded. | :00:54. | :01:00. | |
That means they have a 50% chance of a downgrade in 90 days. It would | :01:00. | :01:04. | |
make it more expensive for those countries to borrow money. It comes | :01:04. | :01:09. | |
just as markets were getting more optimistic about a resolution. | :01:09. | :01:13. | |
European leaders have procrastinated for months, now they | :01:13. | :01:19. | |
are getting a rap across the knuckles. Standard and Poor's has | :01:19. | :01:26. | |
bought the entire eurozone under credit watch. Within 90 days they | :01:26. | :01:30. | |
will review the finances of all of those countries, there is a 50% | :01:30. | :01:34. | |
chance some could see their credit rating downgraded. A credit | :01:34. | :01:38. | |
downgrade would be a severe blow to countries like Italy and Spain | :01:38. | :01:43. | |
which have seen the cost of borrowing rise severely. Germany, | :01:43. | :01:48. | |
which has been the economic powerhouse, it could set them back | :01:48. | :01:58. | |
:01:58. | :02:00. | ||
severely. They have enjoyed a AAA rating. This warning by Standard & | :02:00. | :02:04. | |
Poor's has put paid to the relief rally that we saw on global stock | :02:04. | :02:08. | |
markets. It has put European leaders under severe pressure to | :02:08. | :02:14. | |
come up with a -- a solution when they meet later this week. It is | :02:14. | :02:19. | |
not that Europe's problems have been unexpected, but this is a | :02:19. | :02:27. | |
warning that Europe needs to solve its problems quickly. It is good to | :02:27. | :02:37. | |
:02:37. | :02:40. | ||
see you. What do you make of this move by Standard & Poor's? Timing | :02:40. | :02:43. | |
is the big thing again. We were starting to see markets with a bit | :02:43. | :02:49. | |
more optimism. We have been waiting for more details to come out. This | :02:49. | :02:54. | |
is not the detail that we wanted to come out, but we have seen movement. | :02:54. | :03:00. | |
Now, all of a sudden, a potential downgrade of 13 eurozone countries. | :03:00. | :03:07. | |
That has struck fear into the market again. It is interesting. | :03:07. | :03:12. | |
The news was out towards the end of Trade, there was not a severe | :03:12. | :03:22. | |
:03:22. | :03:23. | ||
reaction. It has not caused a massive wobble? Because we have a - | :03:23. | :03:32. | |
- had so much bad news from rating agencies, they and are doing | :03:32. | :03:40. | |
anything but stating the obvious. - - they are not doing. It is nothing | :03:40. | :03:50. | |
new. If on 9th December they do not come up with the goods, Europe's | :03:50. | :03:59. | |
leaders yet again, if there was a downgrade, talk us through the | :03:59. | :04:08. | |
implications. The EU is already struggling to raise money. If the | :04:08. | :04:12. | |
downgrade happens for these countries, it is going to drive up | :04:12. | :04:16. | |
borrowing costs. It'll make it harder to borrow at a sustainable | :04:16. | :04:23. | |
rate. No-one is going to want to lend to these countries after | :04:23. | :04:31. | |
having a downgrade. Thank you. We will see you later for a look at | :04:31. | :04:35. | |
the newspapers. Underlining the seriousness with which America is | :04:35. | :04:40. | |
watching this crisis, US Treasury Secretary Timothy Geithner is in | :04:40. | :04:48. | |
Europe for crisis talks. He is worried about Europe's financial up | :04:49. | :04:58. | |
:04:59. | :05:11. | ||
Havel's and the impact on America. -- upheaval. There are so many | :05:11. | :05:19. | |
famous shops along this stretch. The financial crisis could be the | :05:19. | :05:22. | |
creature that stock Christmas. These women are in their own | :05:22. | :05:32. | |
:05:32. | :05:37. | ||
cosmetic companies. She is worried. Most of the people I sell to our | :05:37. | :05:46. | |
small businesses. It will be shattering. Sales to Japan dried up | :05:46. | :05:54. | |
after the recent earthquake, she's counting her in this -- inventory | :05:54. | :06:03. | |
just in case. I am not going to stock up too much just in case. The | :06:03. | :06:08. | |
shelf life is about two years. I do not want to be sitting on it too | :06:08. | :06:14. | |
long. General Motors is counting the cost. Profits for the third | :06:14. | :06:22. | |
quarter fell 15%. This Economist warns that if the crisis widens, it | :06:22. | :06:32. | |
:06:32. | :06:33. | ||
will hurt the US economy. It could cut GDP growth by 0.5% depending on | :06:33. | :06:38. | |
how serious the European downturn is. What is important at the | :06:38. | :06:44. | |
financial linkages that could hurt the economy. President Obama's | :06:44. | :06:49. | |
Treasury Secretary is in Europe again to one leaders to act quickly | :06:49. | :06:59. | |
:06:59. | :07:02. | ||
and decisively to solve this crisis. -- warn. The Irish government will | :07:02. | :07:09. | |
unveil the second part of its budget today. It will include | :07:09. | :07:13. | |
measures to raise taxes. The Irish government is sticking with | :07:13. | :07:23. | |
austerity. Ireland is halfway through its second bail-out budget. | :07:23. | :07:28. | |
The Irish finance minister will unveil tax rises, totalling 1.6 | :07:28. | :07:33. | |
billion euros. Yesterday, his coalition colleague announced | :07:33. | :07:40. | |
spending cuts totalling 2.2 billion euros. No government, whatever its | :07:40. | :07:45. | |
numbers, wants to be the bearer of bad news. Our options are extremely | :07:45. | :07:54. | |
limited. The public knows that. tough measures are winning praise | :07:54. | :07:59. | |
from the international community. The austerity prescription seems to | :07:59. | :08:05. | |
be working. For the first time since 2007 Ireland is going to show | :08:05. | :08:11. | |
growth this year. We have very strong export performance. We are | :08:11. | :08:16. | |
running a two speed economy. Exporters are performing very well. | :08:16. | :08:19. | |
International credibility does not do much to assuage domestic | :08:19. | :08:29. | |
:08:29. | :08:33. | ||
concerns. Ireland is into its fourth year of austerity measures. | :08:33. | :08:39. | |
However, we find that today's budget is more bitter medicine. | :08:39. | :08:44. | |
let it go over your head. You know what is coming. You have to get on | :08:44. | :08:54. | |
:08:54. | :08:55. | ||
with it. It is just the way society is divided up. There are those at | :08:55. | :09:00. | |
the top of the tree and those at the bottom of the tree. We need to | :09:00. | :09:07. | |
cut back. Accepting your lot might be a Greek concept, but the Irish | :09:07. | :09:17. | |
:09:17. | :09:17. | ||
have taken it to heart. Let's have a look at the markets in Asia. They | :09:17. | :09:26. | |
are reacting to the Standard & Poor's potential downgrade News. | :09:26. | :09:35. |