Browse content similar to 11/04/2012. Check below for episodes and series from the same categories and more!
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Obama in November. They offer the latest financial news. -- now for. | :00:13. | :00:18. | |
Welcome to World Business Report. Balancing the books. France braces | :00:18. | :00:26. | |
itself of spending cuts days before the presidential election. Italy | :00:26. | :00:31. | |
forced it to raise debt just as borrowing costs to return to | :00:31. | :00:37. | |
historic highs. Cameron's | :00:37. | :00:47. | |
:00:47. | :00:52. | ||
Cameron's trip to Asia and his It is a question of credibility. | :00:52. | :00:57. | |
For 30 years, France has spent more than it has raised in taxes. It was | :00:57. | :01:01. | |
punished this year with the loss of its AAA credit rating. Now managing | :01:01. | :01:06. | |
their finances of the eurozone's second biggest economy has become | :01:06. | :01:10. | |
an election issue. The government will reveal tax and spending plans | :01:10. | :01:14. | |
on Wednesday, just before France goes to the polls to elect a new | :01:14. | :01:17. | |
president. France's economic wheels are | :01:17. | :01:24. | |
turning. It is the only European nation to just avoid the negative | :01:24. | :01:27. | |
growth since 2009. It is also nursing some of the largest public | :01:27. | :01:33. | |
debt. President Sarkozy promised changes, such as the end to a 35- | :01:33. | :01:38. | |
hour working week. The markets want a clear many of further working | :01:38. | :01:48. | |
:01:48. | :01:48. | ||
measures. Both main contenders know that the traditional way of life is | :01:48. | :01:54. | |
threatened by a public debt of 65% GDP and rising. Its own plans | :01:54. | :01:58. | |
envisage getting the budget in balance by 2017. The markets know | :01:58. | :02:04. | |
that does depend on growth of 2.5% a year or more and they think that | :02:04. | :02:08. | |
does not achievable. France will watchers say the market will take | :02:08. | :02:12. | |
some convincing that the incumbent ministers can balance the budget a | :02:12. | :02:22. | |
:02:22. | :02:27. | ||
year ahead of the Courage redden their arrivals. -- a year ahead of | :02:27. | :02:33. | |
their arrivals. It is difficult to say whether the plan will be OK. It | :02:33. | :02:40. | |
will not stick to the same measures. So far, plans to reduce the budget | :02:40. | :02:44. | |
deficit just one year later. Market attention has been on France as | :02:44. | :02:49. | |
recently as last year. Government borrowing costs are rising up to | :02:49. | :02:53. | |
four Prasad and that is something the French government will need to | :02:53. | :03:03. | |
avoid happening again. -- 4%. badly needs faster growth. With new | :03:03. | :03:07. | |
registrations of French cars down 1/3 in March, the road to recovery | :03:08. | :03:13. | |
is a slow one. Prudent finances now enshrined in | :03:13. | :03:21. | |
the eurozone's fiscal package. They have given the cost of borrowing | :03:21. | :03:26. | |
back up to historic highs in Italy. Yields on Spanish bonds hit 6% at | :03:26. | :03:32. | |
an auction on Tuesday. Italy faces a yield of five when 7% as it tries | :03:32. | :03:42. | |
:03:42. | :03:43. | ||
to raise 11 billion euros. -- 5.7%. Why are we here? It is from a | :03:43. | :03:47. | |
combination of things. We just revised down our growth forecast | :03:47. | :03:52. | |
for Spain. Revised up Germany a little bit. Those divergences in | :03:52. | :03:55. | |
the European economy are becoming more stark and that is really not | :03:55. | :04:01. | |
what we want. We had payrolls last Friday in the US and employment | :04:01. | :04:06. | |
figures. It was not as good as expected. Yesterday we had trade | :04:06. | :04:12. | |
figures out of China. This fear that growth in the world is perhaps | :04:12. | :04:17. | |
a little soft and these countries need growth. The concentration of | :04:17. | :04:21. | |
the markets have been mostly on Spain. Italy has problems as well. | :04:21. | :04:28. | |
Let us concentrate on Spain. Spain has to go for a bail out. It is | :04:28. | :04:33. | |
going to happen. What do you think will happen to Spain? It is really | :04:33. | :04:40. | |
difficult to tell. They are in an incredibly difficult position. 300 | :04:40. | :04:45. | |
% of GDP is what the private debt is. It is much bigger than the | :04:45. | :04:50. | |
public debt and the public debt is going up. You have got problems | :04:50. | :04:55. | |
there. One light, one little ray of light is they have dumped 45% of | :04:55. | :05:00. | |
their funding for 2012 already. That will help them. Adding | :05:00. | :05:05. | |
generally with Spain, it is difficult to see a way out. | :05:05. | :05:10. | |
Austerity is making it worse. If they have to go to the Europeans, | :05:10. | :05:20. | |
the IMF, are they going to get it? Have they got enough money? Long- | :05:20. | :05:25. | |
term funding - would that help? It would probably help a bit. As we | :05:25. | :05:29. | |
see coming it helped for a while but it was temporary. Is there and | :05:29. | :05:36. | |
of money in the bail out fund? Nobody is quite sure. -- enough | :05:36. | :05:40. | |
money. Spain is a big country. There has a lot of this coming up. | :05:40. | :05:45. | |
We have the French election coming up. Another problem. And then in | :05:45. | :05:52. | |
May, and the Irish are going to vote on a fiscal compact. Fear is | :05:52. | :06:02. | |
:06:02. | :06:04. | ||
back in the markets. I will look at her headlines on the newspapers. | :06:04. | :06:09. | |
Holidaymakers face more disruption in Greece. Ferry services will be | :06:09. | :06:13. | |
halted for a second day of strikes. Tourists and passengers have been | :06:13. | :06:18. | |
left stranded in the lead-up to Orthodox Easter. They have not been | :06:18. | :06:23. | |
paid for months. They oppose government cuts to pension and | :06:23. | :06:28. | |
healthcare benefits. Money is not the issue at Apple forced of the | :06:28. | :06:32. | |
electronic giant confirmed its position as the world's richest | :06:32. | :06:39. | |
electronic company on Monday. It outlined plans to spend some of its | :06:39. | :06:43. | |
huge cash pile of two payments to shareholders. The world's biggest | :06:43. | :06:52. | |
stock market is poised to create its own security exchange. Measures | :06:52. | :06:59. | |
to open up the company's economy to foreign investments were discussed | :06:59. | :07:07. | |
meetings earlier this month. They were set up a new exchange. | :07:07. | :07:12. | |
Correction and they will. At the moment, the UK sells most of its | :07:12. | :07:18. | |
good within the European Union. Demand for British products and | :07:18. | :07:21. | |
services is weak. Exports and growth could boost national wealth | :07:21. | :07:28. | |
and generate much-needed jobs. It needs new export markets. David | :07:28. | :07:32. | |
Cameron is going to arrive in Indonesia on talks for trade ties | :07:32. | :07:39. | |
following meetings with Japan earlier this week. What do you | :07:39. | :07:44. | |
think Mr Cameron will get added this? I think primarily, he is | :07:44. | :07:49. | |
looking to come and sell British business to Indonesia. The UK has | :07:49. | :07:52. | |
historically been a big investor in the country but in the last few | :07:52. | :07:55. | |
years, it has struggled to compete with the likes of the United States | :07:55. | :08:00. | |
and China. It is looking to increase its presence back in South | :08:00. | :08:07. | |
East Asia's largest economy. Some members of the delegation include | :08:07. | :08:12. | |
representatives from sectors in the UK like financial-services, energy | :08:12. | :08:17. | |
and construction and retail. He is likely to come and press and | :08:17. | :08:21. | |
certainly have raised the attention of Indonesian businesses to the | :08:21. | :08:25. | |
expertise that the UK can provide. Interestingly, he is also going to | :08:25. | :08:30. | |
be bringing members from the defence sector, the defence | :08:30. | :08:35. | |
industry in the UK and comments coming out from the British Prime | :08:35. | :08:39. | |
Minister in an interview with that the Indonesian newspaper - he was | :08:39. | :08:44. | |
quoted as saying that Britain has a some of the best defence equipment | :08:44. | :08:50. | |
in the world and it is right that countries like Indonesia, | :08:50. | :08:54. | |
responsible democracies like Indonesia, should be able to also | :08:54. | :08:57. | |
avail of these goods. These comments are likely to be seen as | :08:57. | :09:02. | |
quite controversial certainly by human rights groups who allege that | :09:02. | :09:10. | |
the Indonesian military and police forces often still commit human | :09:10. | :09:18. | |
rights violations that go unchecked. It has escaped us much of the | :09:18. | :09:23. | |
problem of the Western economies. I think that is very much down to the | :09:23. | :09:28. | |
fact that growth in this country is largely domestic driven. You have | :09:28. | :09:33. | |
to remember it has a huge population. Some 245 million people | :09:33. | :09:36. | |
and every day, millions more are being added to this country's | :09:36. | :09:41. | |
middle class. There is also a significant portion of the | :09:41. | :09:45. |