:00:17. > :00:21.Now it is time for World Business Report.
:00:21. > :00:28.Another turbulent week on the markets as investors fear the
:00:28. > :00:31.European crisis could drag down the global economy.
:00:31. > :00:37.Asian stock markets fall as investors remain worried about the
:00:37. > :00:43.eurozone break up. There is a sharp slowdown in China.
:00:43. > :00:53.A criminal or a scapegoat was met Jerome Kerviel is back in court
:00:53. > :01:02.
:01:03. > :01:08.asking the questions back... -- scapegoat?
:01:08. > :01:16.Economic data from China and India is adding to fears of a slowdown.
:01:16. > :01:22.In Europe, a report suggests that Europe is pushing Spain to accept a
:01:22. > :01:26.bail-out to tackle its crisis. Let's check the Asian markets. I
:01:26. > :01:29.will go to the Singapore office. This is the first chance they had,
:01:29. > :01:36.of course, to react to those jobless figures and they don't like
:01:36. > :01:40.it, do they? Absolutely - a big disappointment.
:01:40. > :01:45.69,000 jobs created in the US in the month of May is a very big
:01:45. > :01:50.disappointment. Now it goes to show, according to analysts, that the US
:01:50. > :01:54.economic recovery might be shifting into reverse. There is more
:01:54. > :02:00.evidence that China's economy continues to slow down. There is
:02:00. > :02:10.also a nightmare scenario considering a eurozone break up.
:02:10. > :02:11.
:02:11. > :02:21.Markets of the world are in-cell mode.... Indices are hitting a 28-
:02:21. > :02:21.
:02:21. > :02:24.year low. Hong Kong stocks are retreating back to 2012 lows. No
:02:25. > :02:31.Asian market has been spared from the downturn. One analyst I spoke
:02:31. > :02:34.to said the only way for markets to bounce back it is for the US Fed
:02:34. > :02:40.Reserve to implement another quantitative easing and for China
:02:40. > :02:48.to announce a stimulus package for their economy, which could slow
:02:48. > :02:54.down between 7.5 -8 % this year. Investors are moving to bonds and
:02:54. > :02:59.buying back gold, causing prices to spike 4% up, or $50 per ounce.
:02:59. > :03:09.Talking of those fears, the yen, often perceived as a safe currency
:03:09. > :03:10.
:03:10. > :03:14.is retreating from its highs against the dollar?
:03:14. > :03:21.Yes, we are seeing the euro falling against the dollar and the Japanese
:03:21. > :03:31.yen. You also have the price of oil below $100 per barrel. That is a 16
:03:31. > :03:35.
:03:35. > :03:41.mum for a low. -- 16-month low. Analysts are saying to keep you
:03:41. > :03:44.have money in cash or in your savings account.
:03:45. > :03:49.I'm speaking to an investment manager. Good morning.
:03:49. > :03:59.Let's return to those job figures. They were much worse than expected.
:03:59. > :04:01.
:04:01. > :04:07.Are they really just a confirmation of what markets and investors were
:04:07. > :04:13.fearing? We had a fright when figures for April came out one
:04:13. > :04:21.month ago. Markets got a little carried away with the buoyancy of
:04:21. > :04:26.the US economy in the first quarter. It was receiving some strength on
:04:26. > :04:29.the back of better demand... The markets had been overestimating the
:04:30. > :04:33.strength of the American economy. To some extent we shouldn't be
:04:33. > :04:39.surprised that the second half of this year will be more difficult
:04:39. > :04:43.for the US economy than the first half. The problem is there is a
:04:43. > :04:53.huge monetary and fiscal stimulus already propping up the US economy.
:04:53. > :04:56.It doesn't grow more than 1.1% - how will it grow if, for example,
:04:56. > :05:01.next year government spending in the US will be cut severely because
:05:01. > :05:06.the deficit is too high? President Barack Obama was very keen to point
:05:06. > :05:10.out that these problems were caused by the eurozone. Is that there?
:05:10. > :05:20.That is not fair. It is unlikely that you s employers were scaling
:05:20. > :05:20.
:05:20. > :05:24.back on recruitment divisions -- US employers were scaling back on
:05:24. > :05:29.recruitment decisions because they were reading about the eurozone in
:05:29. > :05:32.the papers. We have the European Central Bank and the Bank of
:05:32. > :05:36.England - it seems they are running out of ideas. There is very little
:05:36. > :05:39.they can do. You talk about quantity of easing, we have had two
:05:39. > :05:44.rounds of that and it seems not to have worked to the extent they had
:05:44. > :05:54.hoped. Is there anything they can still do? Yes, the effectiveness of
:05:54. > :05:58.
:05:58. > :06:01.quantity of easing is wearing out visibly.... In Europe, the Spanish
:06:01. > :06:06.government would very much prefer direct aid being provided from the
:06:06. > :06:10.rescue funds to its banks without the country itself having to
:06:10. > :06:15.undergo the humiliation, if you want, of an austerity package
:06:15. > :06:25.imposed by the troika. They also want the ECB to purchase government
:06:25. > :06:40.
:06:40. > :06:46.bonds, that is quantity of easing. -- quantity of -- quantative easing.
:06:46. > :06:53.Up Jerome Kerviel is appealing against his sentence today.
:06:53. > :06:56.He claims he was made a scapegoat. Jerome Kerviel was found guilty in
:06:56. > :07:02.October 2010 of single-handedly mastermind in one of the biggest
:07:02. > :07:06.rogue trading scandals in the history of banking. --
:07:06. > :07:11.masterminding. He says he doesn't know why this case was brought
:07:11. > :07:15.against him and not Societe Generale as a whole. He repeated
:07:15. > :07:20.his claim that his superiors knew what he was doing and the bank also
:07:20. > :07:23.knew what he was up to. The court heard that as a trader he was
:07:23. > :07:29.supposed to hedge any big deals with an almost equivalent bet on
:07:29. > :07:35.the opposite outcome. It emerged that he did not make those covering
:07:35. > :07:40.Betts's and by 2008 he had staked nearly 50 billion euros of Societe
:07:40. > :07:43.Generale's money without its knowledge. Whatever the outcome,
:07:43. > :07:48.many banking analysts say the case has been a wake-up call for the
:07:48. > :07:52.sector. There have been rogue traders in the past, there will be
:07:52. > :07:58.rogue traders in the future. Risk controlling needs to be tightened
:07:58. > :08:01.up, particularly in the areas that Jerome Kerviel was working in.
:08:01. > :08:05.There have been lessons about separating the back office from the
:08:05. > :08:09.front office and making sure the people who check and approve the
:08:09. > :08:13.Trades are not under the control of the people who are doing the trades.
:08:13. > :08:15.How has the Bank cope with this huge loss? On the day it was
:08:15. > :08:22.announced they raised a lot of money from their shareholders to
:08:22. > :08:27.plug the hole. That actually put them in reasonably good shape for
:08:27. > :08:33.the crisis that came later. What happened later in 2008 across the
:08:33. > :08:38.banking sector was much worse than the rogue trading at Jerome Kerviel
:08:38. > :08:44.left behind. Societe Generale has said that it has learnt lessons and
:08:44. > :08:51.reinforced its control systems. His appeal hearing is expected to last
:08:51. > :08:57.until the 28th of June. In Spain, employment figures are
:08:57. > :09:03.revealed. At close to 25%, it has the highest jobless rate in the
:09:03. > :09:08.eurozone. On Friday, official figures confirmed that unemployment
:09:08. > :09:12.across the nation's using the euro hit 17%. The figure has heightened
:09:12. > :09:22.the policy split in Europe, with Germany pushing for a continued
:09:22. > :09:24.
:09:24. > :09:30.austerity and France demanding Japanese market. Sony has been hit
:09:30. > :09:33.by concerns that it has failed to react convincingly to products by a
:09:33. > :09:41.Apple and said son, despite releasing its own tablet computer