04/07/2012 World Business Report


04/07/2012

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Those are the latest headlines. Now it is time for World Business

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Here are the headlines: It the city of London braces itself as

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speculation grows that Bob Diamond were named chain officials who knew

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about the scandal. More bad press for the banks as the

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US electricity regulator investigates JP Morgan for

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potentially manipulating the energy Sparks are set to fly as former

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chief executive of Barclays is grilled by UK Members of Parliament

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is afternoon. Speculation is growing that Bob Diamond will name

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and shame officials who knew about the rate fixing scandal, including

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the Bank of England's deputy governor. Apart from producing

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verbal fireworks, what good is it meant to do?

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In a fractured session before a parliamentary committee last year,

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Bob Diamond told MPs the period for remorse and apology for banks is

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is summoning him back again. They will want to know how tradies could

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get away with it for over two years. He will hold up a mirror to the UK

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regulators and the politicians who presided over this mess. All this

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promises to be very entertaining viewing for people here in the city

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of London. What else is the inquiry meant to achieve? It plays into the

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hands of some people that think that all financial markets are a

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conspiracy. That is clearly not the case. We have enormous stock

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markets here in London. It is a very transparent financial market.

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If there is a way that this interest rate setting can be made

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much more transparent, that they be a good thing coming out of the

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scandal. The inquiry will also be keen to hear that the deputy

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governor of the Bank of England secretly advised the rate fixing.

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It may shift the focus of Parliament's inquiry onto the role

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of the central bag. As was highlighted at the end of

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that report, Barclays up the MTA leader be yesterday by publishing

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these documents saying the Bank of England deputy governor may have

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known about what was going on. How do you think that will be played at

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this inquiry? I don't know it. It may be that he is on the attack. It

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would be very foolish to do so. The whole thing sounds like dealing

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with small children. First of all they say they do not know anything

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about it, then they blame someone else, but then you end up saying

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that teacher told them it was OK. What you say is kind of hell it is.

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At the end of the day what they did is wrong. It had to pay huge fines.

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It is the blame game. Bobble the implication speed for the

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regulators and those whom they have they no that it? -- of what will

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the implication be. The first the need to do well to be changing the

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behaviour at Barclays. That is the key thing. A better and different

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regulation can help with that. we get to the bottom of this and we

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don't necessarily know we will do you think we will actually see

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these individuals prosecuted or given some sort of slap on the

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rest? I hope that some individuals will be prosecuted in the end. The

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real problem is not who knew what and when be, the real problem is

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the culture of organisations in which this kind of behaviour goes

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on. What we need to do is start addressing that culture. In terms

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of addressing it, do you think we will see serious changes in the

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organisation's? I think that is where we should be going. There are

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two reasons for doing that. One is that you need to stop government

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guaranteeing speculative trading activity. The other is the trading

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of cultures and painting do not mix. It -- banking.

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We will be across the events today on the BBC. Let's look at another

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bank in the US. More pressure is on the giant, JP Morgan. It is under

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investigation by Americas Electricity Regulation for possible

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manipulation of the energy market in California and the Midwest

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region. The commission is saying the bait's bidding practices made

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inflated electricity prices go further up.

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JP Morgan is out of the news. This time it is being investigated for

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its role in the power markets of California and the Midwest. The

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Federal Energy regulatory Commission is looking at whether it

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manipulated markets to the tune of $73 million. Since the energy

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crisis in California back in 2000- 2001, regulators had been paying a

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lot more attention to the wholesale electricity market. That was when

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traders big supplies and caused blackouts. In a statement in

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response to this probe, JP Morgan said, we believe we have complied

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with all respects with the law. This comes at a very busy time for

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JP Morgan, which is under scrutiny by authorities because of its

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admission it had lost $2 billion on bad trade.

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The head of the IMF has said she is not in the mood to renegotiate the

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terms of the Greek bale-out. Her remarks come as a vicious visit

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Greece to assess the country's financial progress. The Prime

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Minister came to power after pledging to renegotiate parts of

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the rescue package. To she has been fined $87 million

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for conspiring to fix prices of LCD panels in the United States. --

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Toshiba. They had denied the charges and will make the necessary

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legal action to overturn the verdict.

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Manchester United has announced plans to bestow on the New York

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Stock Exchange. It hopes to generate $100 million in an attempt

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The French Prime Minister has called on people to rally behind

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the Government to tackle a crushing debt crisis as a revised budget

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goes to cabinet today. France is defined 43 billion euros this year

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and next year according to the National Audit Office. The super

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rich are being targeted, with those earning more than one million euros

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being taxed 75%. People on lower incomes will be spared the brunt of

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budget cuts. Can France make it is that up? -- en France make its

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numbers add up? This sounds like a familiar tale. Any government with

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a nasty situation to figure out. Many are questioning their France

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is going with their plans to reduce the budget deficit. So far, so

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clear. The Government is not doing anything different from what it

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announced it would do. The French President had already announced

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that he would increase taxes for the wealthy and that he would cut

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the number of civil servants. That he has not changed. What you are

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seeing today and what you saw yesterday was precisely that.

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problem is by increasing the tax on the super rich, the black hole is

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40 billion euros and above. He has to be reduced significantly. How

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will they do that? It will be very difficult. I think that they were

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not fully achieve it. What they can do is, during the implementation,

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they would do something similar to what the Tory government would do.

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The government will give the biggest of the ministry's and tell

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them what to cut. In the process of implementing, there may be many

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ways of actually reducing or watering down the government's

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claims and blaming it on the implementation. The government can

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say they tried to make it happen, but the problem was not on their

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