:00:04. > :00:13.economic weakness. And a scandal. Can the interest rate problem be
:00:13. > :00:18.fixed? We will tackle that later today.
:00:18. > :00:24.We will catch up with Rico Hizon shortly. Let's talk about the
:00:24. > :00:34.shares in Manchester United which started trading in New York today.
:00:34. > :00:37.
:00:37. > :00:45.The UN has raised $200 million by selling a 10% stake. -- the owners.
:00:45. > :00:52.Masses are united is the richest football club in the world. --
:00:52. > :01:02.Manchester United. The owners hope by selling off a large stake they
:01:02. > :01:13.
:01:13. > :01:23.debts. To bring it to the US is certainly a unique choice but it
:01:23. > :01:32.
:01:32. > :01:37.shows the connection to they -- the brand. The second half of the club
:01:37. > :01:45.will go back to its own nose. The fans want the money spent on the
:01:45. > :01:55.players. -- its owners. 50% of the problem is going back to the people
:01:55. > :01:57.
:01:57. > :02:02.who own it. I think all of it should be used in the club. Some
:02:02. > :02:06.may look at New York as an unusual choice but one reason for selling
:02:06. > :02:12.shares in the US is so the family can retain f the club
:02:12. > :02:16.through their shares which have ten times more voting power than those
:02:16. > :02:20.available to the public. That would have been possible on the London
:02:20. > :02:25.Stock Exchange. That is a worry for this investor, already concerned
:02:25. > :02:32.the shares are too pricey. After selling 10% of the shares they will
:02:32. > :02:36.still have 99% of the voting power, issues.
:02:36. > :02:43.issues. Manchester United is a byword for success in the sporting
:02:43. > :02:47.world. The US financial markets are another game altogether.
:02:47. > :02:56.Let's head to Asia. Further evidence of the slowing Chinese
:02:56. > :03:02.economy with export figures weaker than expected. Great to see you and
:03:03. > :03:07.I mention the word weaker than expected but who are we kidding? We
:03:07. > :03:12.are talking about a plunge in the trade growth? Absolutely. That is
:03:12. > :03:19.why it is moving markets. It was a huge disappointing, these July
:03:19. > :03:26.trading numbers. Exports have risen just 1% from last year, and the
:03:26. > :03:33.weakest rise since January. There was a forecast for a 6% rise. This
:03:33. > :03:39.was the weakest pace of export twice in the past year. We were
:03:39. > :03:44.hoping for a 7.2% increase. The wide margin as to a bad set of
:03:44. > :03:50.monthly reports which came out from producer prices. Faltering demand
:03:50. > :03:58.from the two largest customers of China, the US and Europe, is the
:03:58. > :04:06.major culprit. The Commerce Minister of China says it will be a
:04:06. > :04:10.major challenge for the mainland to meet its growth target of 10%.
:04:10. > :04:15.Thank you. Given we had disappointing numbers from China
:04:15. > :04:20.yesterday, all eyes will certainly be on what Beijing will do. We will
:04:20. > :04:25.talk to you saying. Let's touch on some of the other stories. They
:04:25. > :04:29.could be a switch in strategy at Yahoo!. The new chief executive may
:04:29. > :04:34.revise their plans to pay shareholders millions of dollars
:04:34. > :04:40.from the sale of a stake in another company. The previous management
:04:40. > :04:48.had promised to reward shareholders but that I may not go ahead.
:04:48. > :04:54.Gordon price has hit a record. The price of corn hit a record of $8
:04:54. > :05:00.for every bushel. That has already added to a rise in June. There is
:05:00. > :05:04.concern the food crisis of 2008 could be repeated.
:05:05. > :05:13.Japan's sales tax is set to double. Parliament will vote this Friday.
:05:13. > :05:20.The plan is to raise the tax from 5% to 10% by 2015. The Prime
:05:20. > :05:24.Minister says the tax rise is essential to reduce the debt burden.
:05:24. > :05:29.Let's move on and talk about the interest rate scandal because it is
:05:29. > :05:35.certainly causing a lot of damage to the banking industry. Let's
:05:35. > :05:42.cross to the top executives of Barclays. Investigations are on
:05:42. > :05:45.going to see if other banks will also be setting the interest rate.
:05:45. > :05:50.This is a benchmark for trillions of dollars of loans and other
:05:50. > :05:56.products. It is said by the banks themselves to submit rates at which
:05:56. > :06:01.they would learn to themselves. The banking industry cannot abandon
:06:02. > :06:07.this interest rate. I an ice-pick into the chief executive of a
:06:07. > :06:13.company and he will present his initial thoughts on this scandal.
:06:13. > :06:19.Interesting stuff. Douglas Keay was a trader at Morgan Stanley in the
:06:19. > :06:26.early 1990s and chance up. We talk about this scandal at the moment --
:06:26. > :06:32.and joins us. Until 2008, you wear it in the industry in the early 90s
:06:32. > :06:39.and have written that back then the interest rate did not appear to be
:06:39. > :06:44.what they should have been. started trading 1991 and
:06:44. > :06:47.regulations, when I first came across them, I was shocked. I talk
:06:47. > :06:54.to my colleagues and they thought it was humorous but I was so naive
:06:54. > :07:03.to think the rate was actually accurate. Explain how they
:07:03. > :07:08.manipulated these figures? Under the trading scheme I could see all
:07:08. > :07:13.of the office. I could see where light for was says selling each day,
:07:13. > :07:21.the official rate. It was different from the actual rate being traded
:07:21. > :07:26.in the market. What is interesting is that we talk about the London
:07:26. > :07:31.rate, but if this has been going on for a couple of decades, surely
:07:31. > :07:37.there must be others? Do you think there are others around the world
:07:37. > :07:44.who were in on this? I cannot say but what I can say is that inner
:07:44. > :07:50.London, for example, the Bank of England is clearly involved -- in
:07:50. > :07:53.London. The highest authorities? Yes. Correct. I know you do not
:07:53. > :08:02.want to speculates about these initial thoughts on the report
:08:02. > :08:06.because that comes out later today. But how do you fix the problem?
:08:06. > :08:10.They are talking about having the rate based on monthly rates which
:08:10. > :08:17.is a huge step in the right direction. That is what it should
:08:17. > :08:21.be in the first place. Yes. appreciate your time. Thank you.
:08:21. > :08:26.We should also just note that Barclays has named David Walker as
:08:26. > :08:32.its new chairman. He was formerly an official at the Bank of England
:08:32. > :08:35.and the Treasury. His first task will be to find the new chief
:08:36. > :08:43.executive following the resignation of Bob Diamond. Now a look at the
:08:44. > :08:51.markets. Rico Hizon said that the Chinese numbers are in dismal
:08:51. > :08:56.territory with poor export growth. The growth number came in just 1%