14/06/2012 World Business Report


14/06/2012

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France, Ireland and Britain. Time now for the money news. You're

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watching the World Business Report on BBC. A warm welcome to World

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Business Report. The headlines: A test for Italy, the government will

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be selling debt amid growing concern over the European debt

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crisis. As government funds Sakai back, many Greek pharmacies are

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struggling to supply customers with essential drugs. The chairman of

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the clothing retailer Esprit resigns, the second and to step

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down a 24 hours. The company's share price falls following

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takeover talk. We have several developments in the

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European debt crisis to bring you up to date with this morning. Late

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on Wednesday, Moody's had its assessment of Spain's credit

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worthiness. That is despite the 100 billion euros bail-out to Spanish

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banks announced on the weekend. They blame the recession on the

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downgrade. Mario Monti will hold talks with Francois Hollande today.

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Francois Hollande is pushing for a greater role for the ECB in

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stemming the crisis. There will be a test of confidence in Mario

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Monti's policies later when the government sells debt on the money

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market. Italians are uneasy about the economy of the nation and the

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finances. Continuing deep unease on the

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markets, after the Spanish bail-out, Italy now feels the pressure. Its

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interest rate 112 months Bonn has driven up again yesterday. -- on 12

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months bonce. There are conflicting, confusing signals. The crisis is

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worsening, reads one headline. Italy will not need help, says

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another. TRANSLATION: A month ago a

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newspaper headline said, we are not Greece. This morning I sorry now

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that headline saying, we are not Spain. -- I saw another. Everyone

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agrees that Europe needs to do more to help. Mario Monti says it must

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take steps to stimulate growth across the eurozone.

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TRANSLATION: If measures are allowed to allow for growth, the

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finances of Italy will be sustainable. We will pay a lower

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rate of interest, taxes will be la la and businesses will have an

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easier time. -- will be lower. More and more Italians struggled to cope

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with the harsh realities of the President. TRANSLATION: I'm afraid.

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I do not sleep at night because we have a bakery. We have six people

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serving and three in the back, I had to let them go because there is

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not work -- not enough work. TRANSLATION: Is a market like this

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is half-empty, it means that business in general is going to

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pieces. Although the crisis is felt deeply in places like this, what

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really counts now is the mood in markets of a very different kind,

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the money market, the bond markets. Italians can only watch and worry.

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Pharmacies in Greece have warned that many stores will need to close

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if patients are unable to pay the full cost of prescription medicines.

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The pharmacy is used to be paid subsidies, but the farmers have

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huge shortfalls. Imported drugs from pharmaceutical companies to

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treat cancer -- cancer are no longer being shipped.

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It is a 30 in the morning and Greeks are waiting in line to get

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their hands on the prescription medicines they need. It is hard to

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obtain products. One man tells me he is finding it expensive for his

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cancer drug for the 7th your mother. I had to wait for hours -- his 70-

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year-old mother. It is the latest and most alarming development, in a

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hungry and cash-strapped Greece. International suppliers refused to

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ship to graze without cash upfront. Businesses are heavily reliant on

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state funds which subsidise medicines. The pharmacy is saved

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from now want patients will have to pay the full pop -- full cost of

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medicines. Quarters own engines alone -- this medicines must be

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paid for in full. This man heads the pharmacy association.

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TRANSLATION: Those who supplied the drugs from the pharmaceutical

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companies continue to press their cars end not give us a period of

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leniency. -- continued to pressure. The helping to raise funds are now

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all joined together and have stopped paying us and our last

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money from 2011. As pharmacists, we can no longer make up the

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difference. Not everyone thinks those trading medications are

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playing fair. It is clear that public healthcare is inefficient. I

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will blame the public sector as much as I do public companies and

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professionals. They are constantly negotiating about new orders. And

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money owed to them in an inhuman way. Yesterday we told you about

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the slump in the shares of Esprit, which was sparked by the departure

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of the chief executive. The shares are tumbling again today.

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You wonder who is left to run the company, because the chairman has

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also quit. What is going on? As a result of that resignation of

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the chairman, the stock price of Esprit Holdings on the Hong Kong

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stock exchanges down by another 14%, a total of 30% in two trading

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sessions. You have the chairman resigning, three resignations in

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six months. To within 24 hours. The chief executive stepping down and

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the stock price plunging. There is speculation that Esprit could

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become a takeover target. Dallas about Manchester United, the

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football team has decided not to have a public offering in Hong

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Kong? That is correct. It has become so

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fickle. There are reports that instead of Singapore, the plan is

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to move it to the US. Sources say that man you is looking at listing

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in New York with hoping to get a higher valuation. -- Manchester

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United. Manchester United could not be reached for comment. The

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Singapore Stock Exchange declined to comment when contacted by the

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BBC. United received the approval for the Singapore stock changed in

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November. Let squeeze in some more news. The

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fine company BT, has for the first time one a share for the

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broadcasting rights for Premier League football. They will

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broadcast 38 shows per season. They will do this with BSkyB. BT will

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produce a new channel to showcase the Games. Saudi Arabia and oil

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companies had been asking for a rise in production. -- asking for a

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rise in salaries. A French rogue trader with a lead in the Court of

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Appeals that his company passed off huge losses as a crime of his

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former colleague. He told a French newspaper that he saw accounts

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which proved that Soc Gen port's bad debts on to another company's

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fraud. Another day of the declines because of fears of Europe. It will

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