03/08/2012 World Business Report


03/08/2012

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In Japan, shares of Sony are falling after the disappointing

:00:04.:00:14.
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earnings report. After the turmoil on the markets

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stemming from the eurozone yesterday, today's trade could be

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dictated by the US with its latest jobs report. It is thought that

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100,000 new jobs was created in July, leaving the unemployment rate

:00:29.:00:33.

unchanged. Another poor set of numbers could propel the US Federal

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Reserve into action. With employers hiring only

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tentatively, the crowds at America's Jobcentres are nothing in,

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and even those in work are struggling. He works as a bike

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messenger five days a week. He gets a percentage of each drop off, but

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with deliveries down, he has had to take a second job, working in

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retail at the weekends. I did not have health insurance. Paying the

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rent, I have to slim down my costs. I look at things on a week-to-week

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basis. I have a second job. That is where the difference is made.

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among a growing number of unemployed Americans. -- under

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employed. Those who are forced to work at part-time and two would

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like more hours. The presidential candidates are both promising that

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their policies will restore prosperity. More immediate action

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may come from the Federal Reserve. The officials hinted they are

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prepared to do more to stimulate the economy if the US jobs market

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does not improve. We get two more jobs reports between now and the

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next meeting. If those average below 150,000 per month, that would

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probably be unacceptable from the Fed's perspective. Without jobs,

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where will growth come from? Living pay cheque to pay cheque, he has

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got no money for other purchases. see it on the street. I see

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delivery guys, tap drivers, and I feel there is this connection that

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we have. People are just trying to survive.

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Spain's Prime Minister gives a rare government progress report today,

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billed as a chance to take stock of its work since December. He will

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now face more questions about the country's financial future. Its

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ten-year borrowing cost to jumped back above 7%, and the stock market

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slumped 5%. That was a result of market disappointment because --

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due to a lack of immediate action from the ECB.

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Their names are similar, and they night -- they now find themselves

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in a similar boat. But Spain and Italy are paying ever higher rates

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of interest on their debt. Spain's leader said once again that his

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country will not need a full bail out. But across Europe, another

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Italian leader, who runs the eurozone's central bank. Mario

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Draghi did not deliver the measures to help Spain and Italy, that many

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thought that he would. The expectations were so high, because

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Mario Draghi said he would do what ever it takes, and that would be

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enough. Enough was interpreted by many, including the markets, that

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the European central bank was ready to announce that it would buy up

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Spanish or even Italian debt, indirectly, or directly, using the

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eurozone's rescue fund. That has not happened, and the reaction from

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investors has been a big thumbs- down. As a result, Spain's the

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Stock Exchange suffered its second biggest fall in a single day, and

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the borrowing rights -- borrowing rates rose above 7%. The number of

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people who need help to find a job remains a worryingly high. Spain's

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economy clearly needs more help from abroad. But more help may be

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dependent on Spain and carry out even more reforms.

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-- on Spain carrying out. Shares in the Japanese electronics

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retailers are sharp and Joni have boats slumped. -- sharp and Sony.

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What is behind the slump? As for Sharp, it announced yesterday,

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after the market closed, that it is cutting 5,000 jobs. It is the first

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job cuts since the 50s, investors are not liking that news. Shares

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are down 30%, the biggest fall in many decades. Shares of Sony are

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down 8%. That is after it revised down its profit forecast. Investors

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that I have spoken whip say that things are not looking too good for

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a Japanese electronics makers. They had been struggling to compete

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against big rivals such as Apple, Samsung and other Asian rivals, and

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the strong Japanese yen has continued to hurt the performance.

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But good news for Japan's national airline, with news of an imminent

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listing on the Tokyo Stock Exchange. The strong yen, we keep talking

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about it as bad news for Japanese companies, but with Japan Airlines,

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it is really good news, because it gives more spending power to

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Japanese tourists. They had been travelling a lot more. Its profit

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has more than doubled, to more than $300 million in the first quarter.

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It has just got its approval to released its shares on the Tokyo

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Stock Exchange in September. Back in February 2010, they were

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delisted after it filed for one of the biggest bankruptcies in Japan's

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corporate history. But it has been quite an impressive recovery from

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that moment. Even though its biggest rival has been vocally

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criticising it. They say it is unfair that it has got such a huge

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amount of taxpayers' money in order to turn around the business. But

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taxpayers will get their money back now the company is doing much

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better. Another recovery story to watch

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from Japan is Toyota. It is expected to run -- report a return

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to profit when it releases earnings. It is expected to make its biggest

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quarterly operating profit in four years. This time last year, it was

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still suffering from the aftermath of the disastrous earthquake, but a

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successful turnaround in the first six months of the year, and the

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culprit outsold its rival GM. It is on track to regain its top spot as

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the world's best selling car maker. RBS reports interim results this

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morning. It is expected to announce pre-tax losses of more than $2

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billion for the first six months of the deer. The bank is likely to

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take a hit from the collapse in its IT systems as it compensate

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customers affected by the meltdown. The boss of the Australian mining

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giant, BHP, is giving up his bonus. She defective Marius Kloppers will

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forgo the cash after the company was forced to book a loss of $2.8

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billion. -- chief executive Marius Kloppers. It came as a result of

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its sale gas business. -- shale gas. Let's take a look at the markets.

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In Asia, they are down at the moment. That is amid disappointment

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