13/03/2012 World Business Report


13/03/2012

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They suspect has been taken into custody.

:00:03.:00:13.
:00:13.:00:23.

This is bold business report. Get a grip and a deficit column Spain's

:00:23.:00:31.

finance minister gets a friendly warning from Brussels.

:00:31.:00:37.

The United States is set to file a complaint against China and the

:00:37.:00:40.

more trench -- World Trade Organisation changing restrictions

:00:40.:00:45.

on exports. Battle lines from over a

:00:45.:00:55.
:00:55.:00:56.

transaction tax. The Casey's is as an attack on the City of London.

:00:56.:01:01.

Eurozone finance ministers meeting in Brussels have signed off a

:01:01.:01:06.

second bailout Bassett -- package. It enables the first payment of 130

:01:06.:01:10.

billion euros to be made this month. Many fear it will not be the last

:01:10.:01:16.

bail-out Greece needs. For now the country's is off the critical list.

:01:16.:01:25.

The concern has switched to Spain. Spain's budget deficit in 2011 was

:01:25.:01:34.

8.5 % of its GDP. That is of the 6% target. It is 19 billion euros in

:01:34.:01:41.

the red. Equivalent to the entire bailout given to Portugal. Spain's

:01:41.:01:44.

Finance Minister may have been strangled by a chief finance

:01:44.:01:49.

minister in a friendly way but he agreed on Lissa targets for

:01:49.:01:54.

overspending this year. That has triggered alarm bells for some over

:01:54.:02:03.

commitment for tackling the debt crisis. It was nice to see any

:02:03.:02:06.

little bit of you may guess -- yesterday. If you talk us through

:02:06.:02:11.

the timeline now that Greece is looking like it may get its money.

:02:11.:02:16.

What will happen next? It looks like we have some closure and a

:02:16.:02:21.

solution on Greece for the meantime. It is only for the meantime. They

:02:21.:02:30.

may have a whole series of new speed bumps coming up from Europe.

:02:30.:02:39.

The Spain story comes slightly down. Spain is a crisis that is going to

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happen at some point simply because Spain's economy will not be able to

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boost growth. It will not be able to continue austerity and cut down

:02:50.:02:54.

budget deficits unless something else changes. The immediate hurdles

:02:54.:03:00.

for the Europe will be Portugal. The market has seen yields in

:03:00.:03:05.

Portuguese debt widen dramatically. We think that Portugal is heading

:03:05.:03:11.

towards some kind of restructuring like Greece has just done. Then we

:03:11.:03:15.

had the French elections coming up. The French elections are very

:03:15.:03:23.

significant. If Sarkozy loses the election and we have deep new

:03:23.:03:27.

French President threatening to renegotiate the fiscal stability

:03:27.:03:32.

pacts it could cause problems for Angela Merkel. She has been using

:03:32.:03:37.

it to persuade German voters to support what she has been doing in

:03:37.:03:47.
:03:47.:03:47.

keeping the River Wey. After that we worry more about Spain and Italy.

:03:47.:03:50.

They have both benefited dramatically from the government

:03:50.:03:57.

given from the ECB. During this meeting as well they have been

:03:57.:04:02.

rubber-stamping the bail-out for Greece. The battery Affairs

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Commission has said they hope they will reach an agreement on

:04:05.:04:10.

increasing the size of the bail-out fund this month. That is the keep.

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If you say it all those elements arrowhead, Portugal, uncertainty

:04:15.:04:20.

about France, Spain, Italy, the bailout needs to be bigger.

:04:20.:04:24.

Everyone says it does need to be bigger. For Germany to agree and

:04:24.:04:28.

had more money to the bail-out fund requires all these other things to

:04:28.:04:35.

happen. Everybody needs to stick to a tight budget agreements. The fact

:04:35.:04:39.

that Spain is able to get a compromise yesterday and the

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compromise they got was the EU asked them to come in with a 4%

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target. They said we can make 5.8%. Based at the difference. It is a

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complete fudge. That is the way the euro works. It will make it more

:04:57.:05:07.
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difficult for Angela Merkel to get the approval. We will talk to you

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in ten minutes for a look at today's newspaper stories. Let's

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have a look at the other element on the agenda that could cause a

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problem. The proposed financial transaction tax. The UK has made

:05:24.:05:30.

its position clear. It is expected to stress strong opposition today.

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He argues that it attacks a vital point of interest in the City of

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London. The financial sector bears some of the blame for new reports

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back economic downturn. So we should pay more. That is the

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argument behind this tax. Britain has been determined to block it.

:05:56.:06:01.

The City of London is the largest financial centre in Europe. In a

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recent Impact Assessment the European Commission argued that

:06:08.:06:14.

companies are here would pay 71% of all the revenue raised. That

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compares to 16% from Germany and 17% from France. No wonder the

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government is opposed to that. They fear that financial institutions

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would desert London for other continents. They may head to Asia

:06:30.:06:36.

or North America. Financial institutions will be able to bring

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their prices down to match that. The EU financial institutions will

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look for other places to do their business. At the meeting on Tuesday

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it is expected that George Osborne will try and have the tax pushed

:06:52.:06:58.

off EU's agenda. He will argue it has no right to impose fiscal

:06:58.:07:03.

policy on member states. He will say that we do not want this

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introduced. It could be Ireland, Luxembourg, maybe even some of the

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others that pulsate it is not a good idea. It introduces a European

:07:17.:07:24.

dictatorship. Member states on the hall a very opposed to that. It is

:07:24.:07:29.

estimated that the tax could raise 57 billion euros a year. That makes

:07:29.:07:35.

it hard for many politicians to get rid of the idea. President Sarkozy

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has made it a pledge to introduce one for France. In Germany the

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opposition parties at telling at Angela Merkel to push through the

:07:45.:07:55.
:07:55.:07:56.

plant. -- plan. A fight over red earth exports has

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stepped up a gear. China is on a collision course with America,

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Japan and the youth. The Bramham also used in all kinds of products.

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Tell us more about this latest in the long saga? It is the latest.

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Another trade battle between the United States and China. Americans

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will filed the complaint later today with the world trading body

:08:29.:08:33.

challenging the mainland's restrictions on rare earth exports.

:08:33.:08:41.

The European Union and Japan will pack up United States on this case.

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Many of these are critical for the manufacturing of hi-tech products.

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The US his argument that by limiting exports China which

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produces more than 95% of the red earth metals and the world is

:08:54.:08:58.

driving up prices and giving Chinese companies an unfair

:08:58.:09:03.

advantage by increasing production costs for American companies. There

:09:03.:09:09.

are also concerned that Beijing has implemented these codes to ensure

:09:09.:09:15.

that these elements remain low within China. China says that it is

:09:15.:09:19.

to ensure that There is no environmental damage caused. Thank

:09:19.:09:27.

you. A look at the markets quickly. A slight gain for Japan and

:09:27.:09:33.

elsewhere. Gains across the board. US retail sales figures out today.

:09:33.:09:38.

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