30/01/2012 World Business Report


30/01/2012

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five lorries were involved in the pile-up, which left another 18

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people injured. Now it is time for World Business

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Report. The headlines: France's financial

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sector will be hit by a trading tacks in August if President

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Sarkozy can rush his plans through Parliament.

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you are's biggest electronics firm struggles with the downturn. --

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Europe's. He may only have two weeks left in

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power, but Nicolas Sarkozy went on the offensive on Sunday night. The

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French President announced a collection of measures that he

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hopes will boost the economy and boost his re- election chances if,

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as expected, he returns. Among the measures announced last night he

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confirmed plans to go through with a financial transaction tax. It

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would be set at a rate of 0.1%. There is not much detail, but it is

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thought it would be applied to share trading only and not bonds.

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He said that the nation's sales tax would rise to a little over 21%.

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Companies with more than 250 staff will have to take on interns up to

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5% of their workforce. TRANSLATION: We hope that it will raise 1

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billion euros per year for the government budget. It is obvious

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that as soon as Europe adopt such a tax we will join that group. What

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we want is to provoke growth and set an example. Good morning. If

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this works and not, he has to rush it through Parliament -- works out.

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If it went ahead, tell us about how this would work? Is its similar to

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stamp duty in the UK? Yes, we already have 0.5% stamp tax duty on

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share purchases. He is talking about creating a shock throughout

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Europe.... It is quite a limited tax, purely on share trading. A

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cross in London we do far greater volumes of share trading than Paris

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does. Talking about it in terms of income, it seems strange, because

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there is not that volume there, unless you broaden it to other

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areas. Presumably from his point of view he is thinking he will win

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over some voters in France who are quite angry about what is happening

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in the financial sector and the implications on the economy?

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have already heard Angela Merkel talking about this. It would have a

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mild impact overall. The battle really is whether you would really

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like to reform all tax levies... That would cover everything from

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foreign exchange through to all forms of transactions and have a

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tax on those things. That was the tax that David Cameron was against,

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wasn't he? And other EU summit today, the first of the year. Your

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expectations? So we are going through it again. Will they reach

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an agreement? We know how the euro has to run, and so do the

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politicians. But in the words of a famous politician - we know what to

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do, we just don't know how to get re-elected afterwards. It is

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actually about making sure you have harmonising tax systems. That is

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very difficult - look at the issues in Greece at the moment.

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Looking at today's papers. That news from the Royal Bank of

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Scotland's boss is prominent. The markets have reopened in China

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following a week long break to celebrate the Year Of the Dragon.

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It is trading again. What are the expectations?

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The expectation is that there is still a lot of uncertainty in the

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Asian stock market as they start their full week of trading after

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the Chinese New Year. It was slower than expected. Slow growth in the

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United States. Uncertainty about their ability to resolve Greece's

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debt crisis, that is weighing on investor sentiment across the

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region. You mentioned China - its markets are currently mixed after

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being closed for a full week. Japan, Korea, Hong Kong, Singapore and

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Australia are all in negative territory. Taiwan and New Zealand

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are showing some resilience this Monday. Traders say growth in Asia

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will continue in 2012 amid strong domestic consumption. There are

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moves from many central banks to cut interest rates with prices

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easing. There are plans to stimulate respective economies. The

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big question is - by how much will be economies expand? Economists say

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it is very difficult to make a forecast until there is a clear

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sign that Europe's debt turmoil is heading to a resolution.

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Briefly tell us about Mitsubishi Electric's shares, they were very

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high today? Yes. The government of Japan has

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banned one of the country's biggest companies from competitive bidding.

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They say Mitsubishi over charges for some defence and aerospace

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contracts. Mitsubishi Electric, whose businesses include factories

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in Britain, electronics and satellite, charge as much as 50%

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over and above... The government has prevented Mitsubishi Motors

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from doing this and will take preventative measures.

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You are's biggest electronics manufacturer, Phillips, is about to

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announce its results for 2011 -- Europe's the managing director has

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said that the crisis has hit sales hard.

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Philips of Holland is one of Europe's leading electronics giant.

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Europe's debt crisis has made them nervous. Phillips is cutting 4,500

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jobs. Its television division has lost so much money it is in the

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middle of being bought by a company in Hong Kong. Phillips is in the

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process of changing the focus of its business, concentrating less on

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consumer items and more on things like this are a scanner, another

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complex but important item of hospital equipment -- eyeball.

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Sales of his advanced technology is going well in Asia and the United

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States. It is a different story in Europe. The debt crisis means that

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budgets in public health systems are under pressure. Hospitals are

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delaying spending if they have pressure on budgets. We are seeing

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pressure because a lot of these budgets are funded by government.

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We will see delays in new equipment being installed. Philips products

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have changed a lot since it was set up a hundred and 20 years ago. It

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then made light bulbs and is now the world's biggest manufacturer of

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them. It is always installing its L e d bulbs in public spaces,

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including here, outside Buckingham Palace. A light may be bright, but

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the prospects for Europe's manufacturers are not. Siemens

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warned that 2012 would be a hard year. Companies are likely to

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remain under pressure for as long as the continent's consumers and

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government are unable or unwilling to spend money.

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The chief executive of the Royal Bank of Scotland will not take a

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bonus worth almost a million pounds. RBS is largely owned by the

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taxpayer, and the bonus caused huge political controversy. We will be

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talking about that in about five minutes.

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Ryanair reports its latest quarterly results this morning.

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Earlier this month it announced it will create more than 1,000 jobs

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