:00:17. > :00:26.from the sea. -- 240 people. Now it is time for World Business Report.
:00:26. > :00:36.Work in progress - the chief hails a modest recovery. Just how well
:00:36. > :00:37.
:00:37. > :00:47.Spain's banks come up with the extra billions? Japanese corporate
:00:47. > :00:50.
:00:50. > :00:56.profits get heat. Panasonic results. American manufacturing sector has
:00:56. > :01:01.been contributing to the improving picture in the world's largest
:01:01. > :01:10.economy. How much of a difference will it make to the unemployment
:01:10. > :01:18.rate which is at 8.5%. We went to visit and manufacturing training
:01:18. > :01:23.centre in New Jersey. The controls are all manual but you will find
:01:23. > :01:30.equipment that looks so different these days because most of them are
:01:30. > :01:35.a computer controlled. What used to take an hour can now be done with
:01:35. > :01:41.this in a fraction of the time. But it means learning a new set of
:01:41. > :01:46.skills. The manufacturing programme at this college aims to fill that
:01:46. > :01:52.skill gap and with factories hiring, they cannot turn out workers fast
:01:52. > :01:56.enough. The local companies we are affiliated with are almost begging
:01:57. > :02:03.us to get the young high-school students recruited into our
:02:03. > :02:11.programme. The programme was developed with help from several
:02:11. > :02:15.leading local manufacturers. At a time when more than 13 million
:02:15. > :02:20.Americans are unemployment, the project leader says the jobs are
:02:20. > :02:25.there for those with the right training. One of the big problems
:02:25. > :02:32.we have as manufacturers is there is not enough unskilled talent to
:02:32. > :02:40.run these machines are effectively. In that state of the Union, I laid
:02:40. > :02:44.out my blueprint. President Obama has been trumpeting the revival in
:02:44. > :02:49.manufacturing, hoping it would helping keep his job after the
:02:49. > :02:56.election. Since the recession ended, more than 300,000 jobs have been
:02:56. > :03:00.added by manufacturing. It will not be the key driver in the US. The
:03:00. > :03:07.service sector has been bigger. That will be determining whether a
:03:07. > :03:12.job growth is weak or strong. But the manufacturing sector is making
:03:12. > :03:19.a healthy contribution. For many Americans still looking for work,
:03:19. > :03:27.the job climate is not improving fast enough.
:03:27. > :03:34.The Spanish Prime Minister is set to approve plans to overhaul
:03:34. > :03:39.Spanish banks. 15 billion euros in capital need to be raised. Half the
:03:39. > :03:49.home loans could turn bad, it is predicted as unemployment rises and
:03:49. > :03:50.
:03:51. > :04:00.house prices fall. Mergers may be needed. Oh a professor of economics
:04:01. > :04:04.
:04:04. > :04:09.joins us. Why are those Spanish banks in so much trouble? And this
:04:10. > :04:17.is the follow-up from out construction model. There were lots
:04:17. > :04:22.of loans made and many have turned bad. The assets that are in the
:04:22. > :04:27.bank balance sheet have not been priced to market and the government
:04:27. > :04:34.is an forcing some sizable mark downs. Many property markets within
:04:34. > :04:39.Europe also suffered, why is Spain such a difficult case? There are
:04:39. > :04:49.too many reasons. One is the peculiarity of the Spanish banking
:04:49. > :04:51.
:04:51. > :04:56.system. They are unlike anywhere else. They work into real estate,
:04:56. > :05:04.there is no international base, they lent heavily to both
:05:04. > :05:14.developers and home owners. The second thing, we have a delayed...
:05:14. > :05:14.
:05:14. > :05:21.They struggled with the real estate. The Prime Minister has a job to do
:05:21. > :05:30.and he is introducing sweeping reforms? With such a weak economy,
:05:30. > :05:35.our latest GDP growth numbers were coming in at -1.2 %. Our
:05:35. > :05:42.unemployment number is a ready over 5.2 5 million. It paints a grim
:05:42. > :05:49.picture that requires radical reform it seems that the prime
:05:49. > :05:53.minister is ready to undertake them. But the banks receptive to the
:05:53. > :06:00.ideas and new capital requirements? The banks would rather not do what
:06:00. > :06:05.but they have no other choice. The credit needs to flow in Spain
:06:05. > :06:09.especially to small to medium-sized firms. And we are not seeing this
:06:09. > :06:18.happening. They're trying to clean the balance sheets in the hope that
:06:18. > :06:26.it will be restored. In Asia, Panasonic and looks set to
:06:26. > :06:31.round off at a dismal report for Japanese exporters. It comes at a
:06:31. > :06:38.time when the US dollar is reaching a record low against the Japanese
:06:38. > :06:48.currency? A lot of yen headaches for these
:06:48. > :06:48.
:06:48. > :06:54.companies. Sony took a hit from the yen. Panasonic is due to report its
:06:54. > :06:59.report after the Japanese markets closed in about one hour. He could
:06:59. > :07:05.report a staggering loss of more than $9 billion. There are a number
:07:05. > :07:13.of factors as to why it has done so badly. One of which is the strength
:07:13. > :07:20.of the yen. Profits we appreciated from overseas -- proffers were
:07:20. > :07:24.repatriated. There are other issues as well. It acquired Sanyo Electric
:07:24. > :07:34.so and there were losses they, it restructured its television
:07:34. > :07:35.
:07:35. > :07:41.division. There was also up production disruption. Investor
:07:41. > :07:46.Service downgraded the deck rating up Panasonic alongside Sony and
:07:46. > :07:51.kept them in a negative outlook for both companies. Mainly due from the
:07:51. > :07:59.fact they are suffering losses in their television division.
:07:59. > :08:04.Panasonic produces different products and it says it will cut
:08:05. > :08:12.17,000 jobs by March of this year. It brought Sanyo Electric last year
:08:12. > :08:16.which is known for its environment related businesses as well.
:08:16. > :08:22.Ironically, and despite all these problems, Panasonic shares are up
:08:22. > :08:28.today. How extraordinary!
:08:28. > :08:38.The world's biggest truck maker is expected to report a rise in
:08:38. > :08:43.
:08:43. > :08:49.Fanning. -- a rise in an innings. - - and earning.
:08:49. > :08:59.A modest rise in Russia for 2011. The group has benefited from higher
:08:59. > :09:10.
:09:10. > :09:18.The US central bank having declared interest rates will stay low for a
:09:18. > :09:27.considerable period, it hasn't done nothing to support the dollar - yen