Browse content similar to 08/12/2011. Check below for episodes and series from the same categories and more!
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power of his office. Now it is time for World Business Report. The | :00:19. | :00:23. | |
headlines: In the eye of the strong. The PCP prepares another cut in | :00:23. | :00:30. | |
interest rates and new measures to ease the funding pressure on banks. | :00:30. | :00:39. | |
-- the ECB. Companies draw up their contingency plans in case of a | :00:39. | :00:49. | |
:00:49. | :00:50. | ||
break-up of the eurozone. Thinking the unthinkable. On as you have | :00:50. | :00:55. | |
been hearing, tonight sees the start of the EU summit where | :00:55. | :00:59. | |
leaders will attempt to put in place a lasting solution to the USO | :00:59. | :01:09. | |
debt crisis. But before the summit, the ECB will be taking centre-stage. | :01:09. | :01:13. | |
They are expected to take action to ease pressures on the banking | :01:13. | :01:22. | |
system. Another cut in interest rates is on the cards, most likely | :01:22. | :01:32. | |
:01:32. | :01:35. | ||
0.25%, taking borrowing costs to a record low of 1%. More details from | :01:35. | :01:43. | |
Brussels. It is very important that the ECB does take steps today ahead | :01:43. | :01:51. | |
of the meeting. Yes. BCP is the only European institution that is | :01:51. | :01:57. | |
able to regain the confidence of financial markets. -- the European | :01:57. | :02:03. | |
Central Bank. To what extent will it help economies like Italy and | :02:03. | :02:09. | |
Spain when their borrowing costs are so why? A cut would clearly | :02:09. | :02:15. | |
help their economies. That is a good thing because that point | :02:15. | :02:20. | |
cushion the recession we are already in. Do think they should do | :02:20. | :02:27. | |
more than a quarter-point cut? they did more they would send a | :02:27. | :02:32. | |
clear signal that they are willing to do quantitative easing, willing | :02:32. | :02:38. | |
to print money. Bake would say that interest rates are so let they have | :02:38. | :02:46. | |
no other option than printing money. What is your view on that? Many | :02:46. | :02:51. | |
have called for the ECB to do that quite some time ago. It is an | :02:51. | :02:58. | |
ongoing debate. The mandate of the ECB calls for price stability. That | :02:58. | :03:03. | |
is their main target. Printing money is for Big Ben by the | :03:03. | :03:09. | |
European treaties Foster we aren't making a crisis situation. -- for | :03:09. | :03:18. | |
bidden by the European treaties. Figures from the ECB yesterday | :03:18. | :03:24. | |
showed that banks are scrambling for a dollar funding at the moment. | :03:24. | :03:32. | |
Will they do something about that as well? They will relax the | :03:32. | :03:40. | |
landing conditions for European banks. They will extend liquidity | :03:40. | :03:45. | |
to be the lender of last resort for the banks. They will not do that | :03:45. | :03:54. | |
for governments. Briefly, after the summit, do you think there will be | :03:54. | :04:01. | |
more news from the ECB on bond buying? Yes. They are waiting for a | :04:01. | :04:10. | |
fiscal compact to be delivered. If they do so, I would not be | :04:10. | :04:12. | |
surprised if ECB announces something on Sunday evening of | :04:12. | :04:22. | |
:04:22. | :04:22. | ||
Monday morning. Thank you. China says it is still confident in the | :04:22. | :04:27. | |
euro, but does this mean their economy is it willing to help the | :04:27. | :04:33. | |
eurozone? We speak to our correspondent in Singapore. This is | :04:33. | :04:37. | |
bringing a burst of confidence te EU leaders. China's timing is | :04:37. | :04:46. | |
everything. You as. Essentially, these were quotes directly from | :04:46. | :04:55. | |
China's Foreign Minister. -- yes. The website at sight seem as saying | :04:55. | :05:02. | |
that China would use a variety of means to help the European Union | :05:02. | :05:09. | |
and its sovereign debt problems. He was telling this to his German | :05:09. | :05:16. | |
counterpart in Berlin this week. He said it would benefit every country | :05:16. | :05:19. | |
in the world for the European economy to maintain stability and | :05:19. | :05:27. | |
continue developing. These comments come just before the EU leader's | :05:27. | :05:32. | |
summoned on proposals for tighter eurozone integration. China is the | :05:32. | :05:37. | |
owner of the world's largest foreign exchange reserves. Its | :05:37. | :05:47. | |
:05:47. | :05:49. | ||
pockets are fairly deep. Europe cannot expect China to use a big | :05:49. | :05:52. | |
portion of its foreign exchange reserves to rescue Europe's | :05:52. | :06:01. | |
indebted nations. Questions also over how helpful China can be | :06:01. | :06:05. | |
because it is estimated that two- thirds of their reserves are locked | :06:05. | :06:13. | |
up in dollar assets and cannot be sold. Thank you for explaining the | :06:13. | :06:21. | |
helping hand that might be coming from China. Financial markets are | :06:22. | :06:27. | |
poised for the possible financial collapse. Businesses are also | :06:27. | :06:35. | |
starting to plan for the worst. Our correspondent reports. Business | :06:35. | :06:40. | |
life will be turned upside down for these small British business if its | :06:40. | :06:47. | |
main suppliers in breeze dropped out all were thrown out of the euro. | :06:47. | :06:54. | |
-- suppliers in Greece. Some organisations have already spent | :06:54. | :07:00. | |
entire weekends doing planning of scenarios, working out what they | :07:00. | :07:09. | |
would do if the worst case happened in various countries. They could | :07:09. | :07:12. | |
face dramatic inflation and devaluation and would find it | :07:12. | :07:17. | |
impossible to honour deals signed in euros. This company has a | :07:17. | :07:24. | |
contingency plan. We would to renegotiate the contracts in | :07:24. | :07:32. | |
drachma. There would be a devaluation and we would hope and | :07:32. | :07:36. | |
to realise a reduction in the prices of our holidays as a result | :07:36. | :07:43. | |
of that. If it did happen that they came out of the euro, it would give | :07:43. | :07:50. | |
them a benefit to tourism. The instability it would cost would | :07:50. | :07:58. | |
still be a problem with consumer confidence. Multinationals like the | :07:59. | :08:03. | |
Diageo drinks giant have been running computer models, trying to | :08:03. | :08:10. | |
second-guess what might happen. Some of their products would be 40% | :08:10. | :08:16. | |
more expensive. The smallest companies, which depend on exports, | :08:16. | :08:22. | |
might be the hardest hit. BBC News. Europe's banking regulator said it | :08:22. | :08:28. | |
will reveal later how much extra capital the banks will need to ride | :08:28. | :08:33. | |
at this crisis. The European banking authority will make its | :08:33. | :08:43. | |
:08:43. | :08:43. | ||
announcement at 700 GMT, just a 70 banks in the region needed to | :08:43. | :08:49. | |
raise a combined $142 billion. That amount is expected to have | :08:49. | :08:55. | |
increased. The Bank of England is expected to leave interest rates on | :08:55. | :09:02. | |
hold at their record low of 0.5%. It is not expected to ramp up | :09:02. | :09:09. | |
stimulus measures. That is despite signs that the UK economy is | :09:09. | :09:15. | |
ticking back into recession. The markets today are fairly negative. | :09:15. | :09:22. | |
In Japan manufacturing orders have dropped. That was unexpected. That | :09:22. | :09:26. | |
gives you a sign that perhaps things are getting tougher for | :09:26. | :09:34. | |
Japanese exporters. Elite next year, 2012, Japan will be hitting a tough | :09:34. | :09:40. |