23/12/2011 World Business Report


23/12/2011

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are the latest headlines from BBC News. We now have the latest

:00:05.:00:14.

financial news with World Business Report. This is World Business

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Report. Republicans in the US Congress reverse course, agreeing

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to a short-term deal to extend the payroll tax break for 160 million

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Americans. What is in store for the market as we come to the end of the

:00:32.:00:42.
:00:42.:00:48.

year? Republicans in Congress have finally agreed to pass a bill to

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extend a tax break for working Americans. The deal will extend

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payroll tax cuts for another two months. There was intense pressure

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from Democrats and within the republican Party to do the deal and

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prevent taxes going up for millions of employees. It went down to the

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wire, but the prospect of raising taxes on 160 million Americans was

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just too much. Republicans in Congress finally agreed to a deal,

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already approved by the Senate to approve a tax break for another two

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months. John Boehner explained the change of heart. Sometimes it is

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difficult to do the right thing. Sometimes it is politically

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difficult to do the right thing. John Boehner says that if the

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Republicans agree to the deal there will not be the need for a vote. In

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exchange for these short-term deal, Republicans will get the chance to

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negotiate on a longer one year extension and perhaps include some

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of their own demands. Barack Obama welcomed the agreement, saying it

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was the right thing to do. The saga showed the crippling conflict

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between the two political sides in America, even when it comes to

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something with big economic consequences. 2011 has been a wild

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ride for the markets. Many have yet to recover. Europe's problems have

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dragged down the Asia market. Let's look at the prospect for next year.

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America may end up leading the recovery. It has been an

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interesting year? It has. People will be glad to see the back of it.

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:03:08.:03:12.

We have seen enormous false -- falls. One thing that has defined a

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2011 is volatility. Is that something we will have to get used

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to? The race is for the next three -6 months, we should brace

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:03:34.:03:36.

ourselves for a volatile day or couple of weeks. -- risk. Many

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people have money invested in the market, they have their pensions

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tied to the market, what will 2012 hold in terms of those investments?

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The riskiest, because of the European debt crisis, no growth is

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expected, at US growth has been revised downwards. The best we can

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hope for is for markets marking time until the European crisis gets

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put behind us. 2011 has been the year of the credit rating agency.

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Their impact has been so severe on the way that people see sovereign

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debt, the way people see companies. What impact will they have next

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year? They have lost some credibility. They were a little bit

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behind calling the sub Prime crisis and the banking crisis. They do

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have an impact. They are seen as an independent view of financial

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stability of certain countries, but they do not have the same strength

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as a couple of years ago. Let's take a look at what is happening in

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Asia. What is this I hear about Yahoo's Asian operations? We saw

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Yahoo share is rising earlier this week on reports that it planned to

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unload most of its Asia assets in a deal which sources were valuing at

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$17 billion. This transaction was meant to happen on Thursday in the

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US. So far, nothing has been disclosed. Plenty of speculation

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that it was offloading 40% of its stake in Ali Baba. This was a

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:05:53.:06:09.

fairly complicated deal. Yahoo is planning to trade in Japan. Ali

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Baba founder has been trying to buy-back the company's Stakes from

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Yahoo for some time. This deal will please shareholders. They have been

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upset with the share performance over the years. Yahoo are competing

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with Google and Facebook, that has forced it to try and change its

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business. Despite his languishing performance, it does still have a

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market share of $18.5 billion. other stories making headlines, the

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Italian Senate has voted in favour of the austerity programme. Mario

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Monti said the approval of the package would restore market

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confidence in the country and allow Italy to hold its head high. The UK

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government has said it is going to ban said charges by credit cards if

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the charges are more than the cost of payment. Consumer groups had

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been complaining that airlines, booking agencies and chances were

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imposing excessive charges for using eight credit card. --

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councils. Traditional stores study online sales to decide which store

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to -- Tories to stop. -- goods to stock. We have got children telling

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us what they want through these online website. It is moving faster.

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Eight-year-olds change their mind overnight as to what they want.

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There are advantages, but with it comes risk. What happens online

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happens at speed. It was on the verge of going broke when this

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internet firm created this website, an interactive game that is fast

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becoming the must-have toy of the year. It now receives a new

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subscription every second. After the phenomenal success of the

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online world, it has pursued aggressive licensing deals to

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launch real-world francs. -- pre- - - products. Licensing has become a

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secondary revenue model. There is no upfront cost. We receive royalty

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cheques, when you expand that across the world, it does become

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quite a significant business. may look like child's play, but

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