Browse content similar to 09/03/2012. Check below for episodes and series from the same categories and more!
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the city of Homs. -- the UN humanitarian chief. Time for World | :00:10. | :00:19. | |
Business Report. Welcome to the programme. As Greece pores of the | :00:19. | :00:23. | |
biggest sovereign debt will pave the way for a second | :00:23. | :00:31. | |
rescue package. China's inflation rate falls sharply. More evidence | :00:31. | :00:37. | |
of a major slowdown in the economy. Plans for an Asian premier airline | :00:37. | :00:47. | |
:00:47. | :00:49. | ||
collapse for Qantas. Greece is on the verge of clinching | :00:49. | :00:53. | |
a second bail out this Friday after agreeing to the biggest sovereign | :00:53. | :00:58. | |
debt restructuring in history. In 30 minutes, it will be revealed how | :00:58. | :01:03. | |
many of the country's private creditors have agreed to swap their | :01:03. | :01:13. | |
:01:13. | :01:13. | ||
public bonds for new ones are worth 70% less. Reports overnight | :01:13. | :01:18. | |
indicate the deal has been successful, with 95% of debt | :01:18. | :01:27. | |
holders agreeing. Thank you for joining us. | :01:27. | :01:31. | |
It appears that this deal will be going through but not without | :01:31. | :01:38. | |
consequences. It is important to understand that | :01:38. | :01:47. | |
these potential bonds are pricing around 20%. People are expecting | :01:47. | :01:53. | |
that this is a step in the right direction but there will be more to | :01:53. | :02:03. | |
:02:03. | :02:05. | ||
come. The target of 120 % debt-GDP for Greece is for 2020. Are you | :02:05. | :02:12. | |
predicting another bail out? Along the road, it is likely. What is | :02:12. | :02:17. | |
important is to understand exactly how this will be done. What the | :02:17. | :02:24. | |
ratings agencies will say if that is activated and what the impact on | :02:24. | :02:31. | |
the market will be. The market for Greece is quite small but will | :02:31. | :02:36. | |
people stop worrying about Italy and Spain are? This 95% threshold | :02:36. | :02:45. | |
is really important. It was never really all about Greece, was it? It | :02:45. | :02:50. | |
was about ring-fencing the problem so it did not affect Spain, Italy | :02:50. | :02:55. | |
and Portugal. Has that been effective? We are not there yet but | :02:55. | :03:00. | |
we have made a lot of progress, injecting a lot of liquidity in the | :03:00. | :03:04. | |
banking system and alleviating the pressure on those banks. Investor | :03:04. | :03:09. | |
confidence has returned to a large extent. The other thing we are | :03:09. | :03:15. | |
forgetting is that a large part of Europe, like Germany, is doing very | :03:15. | :03:20. | |
well. That will help with European health overall. However, European | :03:20. | :03:25. | |
fragmentation is still apparent. That is, between the south and the | :03:25. | :03:29. | |
north. China has seen a drop in the rate | :03:29. | :03:35. | |
of inflation in February - evidence of a slowdown in the economy. It is | :03:35. | :03:42. | |
lower than what many were expecting. It is the lowest rate of inflation | :03:42. | :03:50. | |
for almost two years. Thank you for joining us. | :03:50. | :03:55. | |
What are we to read into these inflation figures? Is this a signal | :03:55. | :04:01. | |
that the Chinese economy is slowing down? | :04:01. | :04:05. | |
We have got to be careful about the interpretation of Consumer Price | :04:05. | :04:10. | |
Index inflation. In a financially repressed system like that of China, | :04:10. | :04:14. | |
it is fairly standard that rapid monetary growth is associated not | :04:14. | :04:20. | |
so much with Consumer Price Index inflation but asset inflation. To | :04:20. | :04:25. | |
that end, it is good at this inflation has come down. It gives | :04:25. | :04:28. | |
the central bank more room to manoeuvre and we were all expecting | :04:28. | :04:33. | |
it to happen. The distinction between consumer | :04:34. | :04:37. | |
price inflation, what people pay for products in shops, and asset | :04:38. | :04:46. | |
price bubbles. Yes. That is the real concern. | :04:46. | :04:51. | |
Monetary growth has been very rapid, credit growth is slowing but is | :04:51. | :04:55. | |
still quite rapid. We are seeing huge amounts of investment in areas | :04:56. | :05:01. | |
that are probably not economically viable. But with such low interest | :05:01. | :05:07. | |
rates, it is difficult to prevent. What most people seem to be | :05:07. | :05:11. | |
concerned about is the prospect of what people are calling a hard | :05:11. | :05:18. | |
landing - a sudden drop of the growth rate. Is that a possibility? | :05:18. | :05:21. | |
It is obviously a possibility depending on what happens in Europe | :05:21. | :05:27. | |
but it is unlikely, I believe. I am more concerned about a long | :05:27. | :05:32. | |
slowdown of growth over many years, which I think is more likely. If | :05:32. | :05:35. | |
you can predict what will happen in Europe, you will have a better idea | :05:35. | :05:41. | |
of how rapidly growth will slow in China this year and the next year. | :05:41. | :05:46. | |
Thank you. Qantas has called off talks with | :05:46. | :05:52. | |
Malaysia Airlines to set up an Asian premier career. | :05:52. | :05:59. | |
What has happened? As he is said, essentially the | :05:59. | :06:06. | |
talks have broken down. It has had a bad impact on Qantas shares today, | :06:06. | :06:11. | |
falling as much as four descent. Qantas says the two could not agree | :06:11. | :06:16. | |
on commercial terms. They had announced plans to start this joint | :06:16. | :06:22. | |
venture airline in Asia last August and this was an attempt to try to | :06:22. | :06:27. | |
turn around its international arm, which is currently making a loss. | :06:27. | :06:32. | |
This was part of the five years strategy to revive international | :06:32. | :06:37. | |
operations. We know that Qantas lost $200 million in the 2011 | :06:37. | :06:43. | |
financial year. The collapse in talks comes just as Malaysia's | :06:43. | :06:48. | |
national carrier announces plans to launch its own premium regional | :06:48. | :06:51. | |
airline in April. That is part of its restructuring plan after | :06:51. | :06:57. | |
suffering its biggest loss in history in 2011. Qantas's chief | :06:57. | :07:00. | |
executive said Qantas would continue to explore opportunities | :07:00. | :07:05. | |
in the region through alliances and joint ventures. The airline's | :07:05. | :07:10. | |
attend to become more profitable by setting up an airline outside | :07:10. | :07:14. | |
Australia had angered a lot of workers, leading to a strike and a | :07:14. | :07:20. | |
grounding of the Qantas fleet. This news is not likely to help Qantas's | :07:20. | :07:26. | |
international operations. America's job market is slowly | :07:26. | :07:30. | |
repairing itself. Companies have added 200,000 workers to pay roles | :07:30. | :07:36. | |
in recent months. The official figures hide millions of workers no | :07:36. | :07:40. | |
longer counted as unemployed and even more who are working less | :07:41. | :07:50. | |
:07:51. | :07:51. | ||
hours than they want. A rich colour suits me best? | :07:51. | :07:59. | |
These sunglasses were created by a couple inspired by the military. | :07:59. | :08:05. | |
The business has taken off and they are adding whole people. | :08:05. | :08:09. | |
We have been expanding nationally. Many people are buying and we need | :08:09. | :08:14. | |
more help with sales. We are bringing on a series of sales | :08:14. | :08:22. | |
representatives to represent us too small boutiques around the country. | :08:23. | :08:27. | |
Small businesses created 50% of all the jobs last month in America. | :08:27. | :08:32. | |
Selling sunglasses to baby might not be an industrial powerhouse of | :08:32. | :08:37. | |
a Business but put together with all the other small companies in | :08:37. | :08:42. | |
America, this will pull the US out of an economic slump. It looks like | :08:42. | :08:45. | |
the unemployment picture is improving. | :08:45. | :08:49. | |
While the headlines look good, or digging deeper and there are | :08:49. | :08:53. | |
millions of Americans who are out of work and no longer officially | :08:53. | :08:58. | |
counted as unemployed. Many remain angry at the job | :08:58. | :09:06. | |
situation like these protesters. Teachers are being fired. We have | :09:06. | :09:11. | |
got to bring money into education, we have got to build a middle class, | :09:11. | :09:17. | |
health companies create jobs. This recruitment expert says there | :09:17. | :09:21. | |
has been a huge change in the labour market. | :09:21. | :09:25. | |
Three it is better than it was but there is still very much a two Tear | :09:25. | :09:29. | |
labour market. People with skills in education and those who do not. | :09:29. | :09:34. | |
Those who do not are being left behind. | :09:34. | :09:39. | |
That is the Disconnect currently in America. The jobs market is | :09:39. | :09:46. | |
improving but millions of Americans remain out of work. | :09:46. | :09:51. |