:00:03. > :00:13.Those are the latest headlines. Now it is time for World Business
:00:13. > :00:19.
:00:19. > :00:23.Report. The headlines: The Olympic legacy,
:00:23. > :00:33.we've had the medal count, now London begins the cost accounting.
:00:33. > :00:38.
:00:38. > :00:48.The eurozone debt crisis hits Japan, causing growth to slow sharply.
:00:48. > :00:51.
:00:51. > :00:54.It's back to reality for most London people. Heathrow has
:00:54. > :01:01.developed a special Games at Terminal to deal with the thousands
:01:01. > :01:07.of people returning home. The cost is likely to exceed $17 billion. We
:01:07. > :01:12.look at the legacy for London 2012. It was a once in a Generation
:01:12. > :01:17.showcase for the UK with three- quarters of taxpayers'' cash spent
:01:17. > :01:21.on infrastructure, the legacy for a once contaminated corner of east
:01:21. > :01:31.London is a transport system, Bearpark, and 11,000 proposed new
:01:31. > :01:38.
:01:38. > :01:42.homes with health and educational facilities -- a park. In Athens,
:01:42. > :01:47.rusting stadium show how the Olympic spirit of 2004 was lost
:01:47. > :01:57.after the economy went from bad to worse.
:01:57. > :02:00.The hope is that the 2012 effect will generate about �13.5 billion,
:02:00. > :02:05.$20 billion worth of new business. Investors overseas will be reminded
:02:05. > :02:09.of Britain's innovation and creativity. Certainly, the chief of
:02:09. > :02:15.BP, told an Olympic Investment conference that he thinks Britain
:02:15. > :02:20.can do it. As a business we have had many, many meetings. They might
:02:20. > :02:30.not have otherwise been player. Chance happenings, discussions,
:02:30. > :02:35.
:02:35. > :02:39.business ideas have been progressed. -- planned. Andrew Hammond says
:02:39. > :02:42.Britain needs a long-term plan. you might have some short-term
:02:42. > :02:49.growth before the Olympics and some short-term growth after, you really
:02:49. > :02:53.have to come together, public, private and all stakeholders, so
:02:53. > :02:58.you can mobilise and create, in this case, and economic Team GB
:02:58. > :03:02.that will mirror the success of the athletes on the Olympic Park.
:03:02. > :03:08.next few months might show if Britain can ride the crest of its
:03:09. > :03:13.Olympic wave when its economy is still in a double-dip recession.
:03:13. > :03:17.The effect of the eurozone debt crisis are rippling across the
:03:17. > :03:23.globe. Japan is the latest economy to see its exports slowed sharply
:03:23. > :03:28.as a result. Between April and June the Japanese economy expanded just
:03:28. > :03:31.0.3%. That is much less than analysts expected. The country's
:03:31. > :03:38.exporters were also hit by the strength of the yen, which makes
:03:38. > :03:45.goods more expensive overseas. I enjoyed live now from Tokyo. What
:03:45. > :03:51.is behind these figures? -- I am joined.
:03:51. > :04:00.Sorry, I was having difficulties he ring you. As you said, it was a
:04:01. > :04:04.slowdown. -- hearing. It was inevitable that growth would
:04:04. > :04:10.slow down, but I think the most worrying sign is a slowdown in
:04:10. > :04:14.exports. It is down from 3.4% all the way down to 1.2% in this
:04:14. > :04:18.quarter. I guess you can blame Europe's debt crisis and the
:04:18. > :04:22.slowdown in the Chinese economy for this. Of course there is the strong
:04:22. > :04:25.Japanese yen we keep reporting, which makes Japanese products more
:04:25. > :04:28.expensive overseas. Another worrying sign is that in the
:04:28. > :04:32.private consumption sector, the Bank of Japan met last weekend it
:04:32. > :04:36.held off from offering extra support because it said that the
:04:36. > :04:41.domestic economy remains relatively strong. Today's figures have shown
:04:41. > :04:48.that it might not be holding up as well as they had hoped. Of course,
:04:48. > :04:54.last Friday, the government pushed through the sales tax from 5% -8 %
:04:54. > :04:57.by 2014 and 10% in 2015. The immediate reaction from shoppers on
:04:57. > :05:01.the street was that they will stop shopping. That will be the concern
:05:01. > :05:06.that critics of this bill have. External forces are to blame.
:05:06. > :05:13.Sluggish growth, the debt crisis, etc. What our policy makers inside
:05:13. > :05:21.Japan planning to do? The Bank of Japan so far has refrained from
:05:21. > :05:23.loosening monetary policy. You think we will begin to see more
:05:23. > :05:27.stimulus? There's not much that the Central
:05:27. > :05:32.Bank can do at this stage. Its interest rate has been near-zero
:05:32. > :05:36.for a very long time. It has been pumping in a lot of money to the
:05:36. > :05:40.market after the earthquake and tsunami last year. I guess part of
:05:40. > :05:44.the reason that the growth was very strong in the first quarter it is
:05:44. > :05:48.because of the government spending on the reconstruction from the
:05:48. > :05:54.earthquake and tsunami. We are starting to see that warranting
:05:54. > :06:01.down. There are some concerns that growth will be slowing down --
:06:01. > :06:04.winding. Hundreds of passengers have been
:06:04. > :06:08.stranded in Rome following the collapse of an Italian budget
:06:08. > :06:13.airline. Wind Jet suspended all flights over the weekend after the
:06:13. > :06:16.breakdown of takeover talks with another major airline. The
:06:16. > :06:19.country's Aviation Authority has set up a crisis centre to help
:06:19. > :06:23.stranded passengers at the beginning of the busiest holiday
:06:23. > :06:27.week of the year. The new chairman of Barclays has
:06:27. > :06:31.pledged to change the pay culture at the troubled bank. Sir David
:06:31. > :06:34.Walker told the Sunday Telegraph he would review the entire business
:06:34. > :06:42.and that he will begin his search for a new chief executive within
:06:42. > :06:45.days. The former CEO, Bob Diamond resigned in the wake of the rate
:06:45. > :06:49.rigging scandal. The world's richest countries are
:06:49. > :06:52.planning an emergency meeting to discuss rising food prices. The
:06:52. > :06:57.Financial Times says that senior G20 and UN officials are
:06:57. > :07:07.considering their response after the worst you s drought in 50 years
:07:07. > :07:17.
:07:17. > :07:23.has ruined crops and sent prices to record levels -- US.
:07:23. > :07:30.Groupon Reports its burnings later. It is still trying to live up to
:07:30. > :07:34.the height -- at the earnings. The great expectations that once
:07:34. > :07:39.surrounded the wave of new technological listings has faded.
:07:39. > :07:49.Are we expecting a take a bus to 2.0?
:07:49. > :07:50.
:07:50. > :07:57.-- technological bust 2.0? Facebook's stock is down 42% since
:07:57. > :08:03.going public in May. Pandora's shares are down 36%.
:08:03. > :08:06.Asocial gaming firm's stock has slumped 17%.
:08:06. > :08:11.There was so much excitement and potential around these stocks last
:08:11. > :08:16.year. Now there seems to be more scepticism overall. Investors are
:08:16. > :08:19.looking at these companies and thinking - OK, even though they
:08:19. > :08:23.showed some initial growth, that trajectory will not continue.
:08:23. > :08:32.The current drop in technology shares has brought back painful
:08:32. > :08:41.memories of the infamous .com bubble of the late 1990s investors
:08:41. > :08:44.through huge sums of money at untested start-ups. It might be
:08:44. > :08:50.some consolation to hear that today's internet bust is unlikely
:08:50. > :08:54.to be as serious as last time. I think you call the social media
:08:54. > :09:01.situation at a bubble is almost an insult to a real bubble. You look
:09:01. > :09:06.at the number of companies that went out in 1995 - thousands of
:09:06. > :09:13.companies. So many of them were broken down to the point that where
:09:13. > :09:20.they went out of business. Their stocks went down to 1% or 2% of
:09:20. > :09:23.their previous highs. We are not seeing that here. Companies are
:09:23. > :09:28.having to learn some expensive lessons. The internet provides new
:09:28. > :09:35.firms the chance to grow and prosper remarkably fast. The