Browse content similar to 15/05/2012. Check below for episodes and series from the same categories and more!
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April. Those are the latest headlines from BBC World News. Now | :00:07. | :00:14. | |
for the latest money news with World Business Report. Hello and | :00:14. | :00:22. | |
welcome to World Business Report. The headlines: As politicians | :00:22. | :00:24. | |
debate growth versus austerity, today's numbers should confirm the | :00:24. | :00:34. | |
:00:34. | :00:41. | ||
eurozone is back in recession. Asian stock markets are jittery. A | :00:41. | :00:51. | |
slowdown in China's economic growth. Struggling to survive - we look at | :00:51. | :01:01. | |
:01:01. | :01:01. | ||
how one company is weathering the crisis. It's another critical day | :01:01. | :01:04. | |
for eurozone economies as fears mount over the impact of a | :01:04. | :01:08. | |
disorderly Greek exit from the single currency. Today finance | :01:08. | :01:17. | |
ministers from across the European Union meet in Brussels. Also | :01:17. | :01:19. | |
France's new President, Francois Hollande, will have his first | :01:19. | :01:21. | |
meeting in Berlin with his German counterpart Angela Merkel following | :01:21. | :01:25. | |
his inauguration in Paris. As these key players meet to discuss the | :01:25. | :01:27. | |
crisis the political stalemate in Greece remains unresolved. Talks | :01:27. | :01:32. | |
will resume in Athens today. If they fail to come up with a | :01:32. | :01:38. | |
solution before Thursday another election is likely. Also in two | :01:38. | :01:40. | |
hours time the latest growth figures are expected to show the | :01:40. | :01:43. | |
eurozone has slipped back into recession. Economists predicting a | :01:43. | :01:51. | |
contraction of 0.2% in the first quarter of this year. Late | :01:51. | :01:54. | |
yesterday the ratings agency Moody's cut the credit ratings for | :01:54. | :01:56. | |
26 Italian banks citing their vulnerability to more trouble in | :01:56. | :02:02. | |
the eurozone. The banks include some of Italy's biggest lenders, | :02:02. | :02:08. | |
Unicredit and Intesa San Paolo. Needless to say this is causing | :02:08. | :02:11. | |
investors to sell the euro, the interest rate on Spanish and | :02:11. | :02:14. | |
Italian debt has climbed and shares are falling. We'll have the latest | :02:14. | :02:18. | |
on the markets from Rico in a moment. But first in Brussels is | :02:18. | :02:24. | |
Sony Kapoor, managing director at Re-Define. It has been an | :02:24. | :02:27. | |
interesting 48 hours. Tell us what you think it EU finance ministers | :02:27. | :02:35. | |
will be tackling when they meet today in Brussels. They have to be | :02:35. | :02:39. | |
looking at stopping the speculation that has been taking hold and | :02:39. | :02:46. | |
causing market panic. The fact of the matter is, there is no | :02:46. | :02:53. | |
preparation of any substantial kind for a Greek exit. It is not on the | :02:53. | :02:59. | |
cards for the foreseeable future. Nobody in the eurozone wants it to | :02:59. | :03:03. | |
fall out. The second thing they will discuss, how to arrest the | :03:04. | :03:09. | |
downward spiral that the eurozone is in. The Spanish banks, the | :03:09. | :03:15. | |
downgrade of the Italian banks, the might be entering into recession. | :03:15. | :03:25. | |
:03:25. | :03:29. | ||
All of this has got to be tackled through something like a growth | :03:29. | :03:36. | |
pact. Efforts to tackle tax avoidance and tax evasion. So the | :03:36. | :03:42. | |
cuts do not have to be so bad. Very importantly, defining a road map as | :03:42. | :03:48. | |
to where the eurozone is headed. At the moment nobody knows. It is such | :03:48. | :03:57. | |
a big agenda, the market speculation is very important. How | :03:57. | :04:04. | |
do they manage that? In the markets many traders say they are not | :04:04. | :04:11. | |
looking at if it may exit, but when it will exit. How do they stop that | :04:11. | :04:17. | |
speculative action from going on? We have to stop it -- extremely | :04:17. | :04:23. | |
irresponsible game of chicken that is under way between politicians in | :04:23. | :04:28. | |
Greece and European leaders. European leaders want to send a | :04:28. | :04:32. | |
message to the negotiating Greece politicians that negotiating the | :04:32. | :04:38. | |
terms of the bail-out is not an option. If things were to come to | :04:39. | :04:44. | |
that, Greece might as well be pushed out of the eurozone. | :04:44. | :04:49. | |
Everyone else is listening as well. What needs to happen is that this | :04:49. | :04:55. | |
needs to happen behind closed doors. There needs to be some loosening of | :04:55. | :05:00. | |
the Greek bail-out. There needs to be a recognition in Greece that its | :05:00. | :05:08. | |
future, at least for the disabled few years lies in the eurozone. Any | :05:08. | :05:13. | |
exit would cause human damage to Greece and the rest of the eurozone. | :05:13. | :05:23. | |
:05:23. | :05:27. | ||
It is political, social, economic, the costs are big. Thank you. Let's | :05:28. | :05:36. | |
take you to the Asian markets. Another very tricky day, not least | :05:36. | :05:39. | |
because of the news about the eurozone, but also worries about | :05:39. | :05:47. | |
China? Absolutely. The issue of Greece potentially leaving the is | :05:47. | :05:53. | |
in the minds of many investors. A slowdown in China's economic growth | :05:53. | :05:57. | |
is worrying them a lot. Both factors impacting Asian at | :05:57. | :06:07. | |
:06:07. | :06:13. | ||
Shearer's. -- Asian shares. Regional borrowers are very | :06:13. | :06:23. | |
:06:23. | :06:24. | ||
concerned. Europe is Asia's second largest exporting partner. Much of | :06:24. | :06:30. | |
Asia's trade is financed by Europe's banks. They want to | :06:30. | :06:39. | |
concentrate efforts at which could mean investments in two Asian | :06:39. | :06:47. | |
equities. Worries about China's economy growing slower than | :06:47. | :06:55. | |
previously thought, but when you speak with analysts they say there | :06:55. | :07:02. | |
is nothing to worry about. They say over time it will prove favourable. | :07:02. | :07:12. | |
:07:12. | :07:22. | ||
At the moment it is China and the having an -- the eurozone having an | :07:22. | :07:28. | |
impact on the markets. JP Morgan Chase has confirmed its chief | :07:28. | :07:31. | |
investment officer who presided over a $2 billion trading loss will | :07:31. | :07:34. | |
leave the company. Ina Drew, one of the highest-ranking women on Wall | :07:34. | :07:37. | |
Street, is retiring after more than 30 years with the company. US | :07:37. | :07:39. | |
President Barack Obama says the fact that JPMorgan Chase, one of | :07:39. | :07:42. | |
the country's best managed banks, could lose so much money in | :07:42. | :07:48. | |
derivatives trades, underlines the need for tighter banking regulation. | :07:48. | :07:50. | |
US fragrance firm Coty is withdrawing its $10.7 billion | :07:50. | :07:52. | |
takeover bid for Avon Products, saying the world's largest | :07:52. | :07:56. | |
cosmetics direct seller had missed its deadline to start talks. Coty | :07:56. | :08:00. | |
had first made a public offer for Avon in April, but later told that | :08:00. | :08:03. | |
company's board that it had until the close of business on Monday to | :08:03. | :08:13. | |
:08:13. | :08:17. | ||
start talks. Back to our top story. Growth figures for the eurozone are | :08:17. | :08:20. | |
expected to show the single currency area is actually going | :08:20. | :08:23. | |
into reverse. Our Europe business correspondent went to visit one | :08:23. | :08:33. | |
:08:33. | :08:40. | ||
company trying to survive. These are gifts designed in west London, | :08:40. | :08:44. | |
one third of these products are sold on to wholesale partners in | :08:44. | :08:49. | |
continental Europe. They say Brussels is right to say that | :08:49. | :08:56. | |
economic conditions are not consistently bad but all around | :08:56. | :09:06. | |
:09:06. | :09:07. | ||
they are worsening. This company seems to have succeeded rather than | :09:07. | :09:12. | |
failed in continental Europe because of its concentration on | :09:12. | :09:17. | |
custom design of low-cost items. It has still got plenty of customers | :09:17. | :09:23. | |
in Greece, Spain and Italy. If there is a concern, it is about the | :09:23. | :09:27. | |
availability of credit in those countries. Just as customers select | :09:27. | :09:33. | |
what they buy carefully, suppliers have to be increasingly vigilant to | :09:33. | :09:43. | |
:09:43. | :09:43. | ||
ensure the credit is still good when they get paid. There may be | :09:43. | :09:49. | |
factors beyond their control. We have to be firm but fair with them. | :09:49. | :09:56. | |
Keep the credit under control. We need to do internal risk management. | :09:56. | :10:05. | |
The most successful areas are in the Scandinavian countries. Having | :10:05. | :10:11. | |
said that, we do well in Spain, Italy and to a lesser extent, | :10:11. | :10:18. | |
Greece. The whole of Europe is a market for us. There is strength in | :10:18. | :10:21. | |
the northern area at the moment. Businesses cannot wait for a | :10:22. | :10:27. |