Browse content similar to 23/08/2012. Check below for episodes and series from the same categories and more!
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BBC World News. Now for the latest financial news in World Business | :00:02. | :00:12. | |
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Report. Hello and welcome to World Business Report. Europe's | :00:18. | :00:20. | |
manufacturing sector is expected to contract further as Greece | :00:20. | :00:25. | |
continues its appeal for more breathing space. The world's | :00:25. | :00:28. | |
biggest drinks maker, Diageo, will reveal how much money its made in | :00:28. | :00:38. | |
:00:38. | :00:42. | ||
the last 12 months in a few hours. Qantas records its first annual | :00:42. | :00:45. | |
loss in a 17 years and due to higher fuel costs to and labour | :00:45. | :00:55. | |
:00:55. | :00:56. | ||
problems. We'll have a better idea of how far and how fast the | :00:57. | :00:59. | |
eurozone economy is sinking when the latest purchasing managers | :00:59. | :01:03. | |
index numbers are released in a few hours time. Economists predict | :01:03. | :01:05. | |
further contraction in the manufacturing sector following | :01:05. | :01:10. | |
signs that even Germany is stalling. That will provide a bit of context | :01:10. | :01:13. | |
for Angela Merkel and Francois Hollande, who are meeting this | :01:13. | :01:16. | |
evening ahead of their respective meetings with Greek Prime Minister | :01:16. | :01:21. | |
Antonis Samaras. At key talks with Jean Claude Juncker on Wednesday Mr | :01:21. | :01:24. | |
Samaras appealed for more time to implement tough austerity measures | :01:24. | :01:29. | |
and warned of deeper spending cuts ahead. Mr Juncker, who is head of | :01:29. | :01:32. | |
the Eurogroup, said he's totally opposed to Greece leaving the | :01:32. | :01:38. | |
single currency and that Greece is achieving greater stability. I'm | :01:38. | :01:48. | |
:01:48. | :01:48. | ||
joined by Christian Schulz, Senior Economist at Berenberg Bank. For | :01:48. | :01:53. | |
the manufacturing data due out today, what are you expecting? | :01:53. | :01:59. | |
are expecting values below is the 50 mark which separates expansion | :01:59. | :02:04. | |
from contraction. It will be in the range for 45 for manufacturing, may | :02:04. | :02:10. | |
be lower than that. Which means significant contraction. It is a | :02:10. | :02:15. | |
slight stabilisation. Recession is not accelerating. It is staying at | :02:15. | :02:21. | |
these levels. How worrying is the situation in terms of the economic | :02:21. | :02:26. | |
news we are getting about the eurozone? It is a worrying. Jobs | :02:27. | :02:32. | |
are lost and competitiveness may be lost in some company and that is | :02:32. | :02:37. | |
not good for the long-term, especially in companies which from | :02:37. | :02:42. | |
a fundamental point of view should not have a recession - like Germany | :02:42. | :02:47. | |
or France. Manufacturing is the most globally integrated and are | :02:47. | :02:53. | |
therefore dependent on the export sector. The services sector is | :02:53. | :02:59. | |
looking significantly is better. Manufacturing is clearly hit. Every | :02:59. | :03:03. | |
time the crisis hits home in Germany, every time there is a | :03:03. | :03:07. | |
threat of recession, the German government seems more active in | :03:07. | :03:12. | |
stopping the euro crisis from spreading. It motivates them to do | :03:12. | :03:19. | |
more. Prime Minister Antonis Samaris is on a real offensive in | :03:19. | :03:24. | |
terms of trying to get what he needs all what he believes is right | :03:24. | :03:31. | |
for the Greek economy. Do you think he will be successful? There seems | :03:31. | :03:35. | |
to be some flexibility on the German side. We have seen several | :03:35. | :03:39. | |
senior lawmakers in Germany that within the amber light there is | :03:39. | :03:44. | |
some flexibility. That also means there is not going to be any extra | :03:44. | :03:51. | |
money. Angela Merkel will not spend any political capital off trying to | :03:51. | :03:55. | |
convince the parliament to put up more money for Greece. She has | :03:55. | :04:01. | |
elections next year. There is going to be a bit of a reality check for | :04:01. | :04:05. | |
Prime Minister Antonis Samaris. It does not seem like they want to put | :04:05. | :04:11. | |
Greece out of Europe. Nobody wants to take that the seizure. There is | :04:11. | :04:14. | |
some flexibility. Prime Minister Antonis Samaris needs to convince | :04:14. | :04:21. | |
the Germans he can use some extra time. Not just the Germans but | :04:21. | :04:28. | |
other Europeans and the IMF which means the Americans. This is | :04:28. | :04:35. | |
proving a very important week for the eurozone and the Greek economy. | :04:35. | :04:38. | |
The world's biggest drinks maker, Diageo, will reveal how much money | :04:38. | :04:42. | |
its made in the last 12 months in a few hours. Its also expected to | :04:43. | :04:46. | |
tell its shareholders a lot more detail on its expansion plans. | :04:46. | :04:48. | |
There's growing speculation the maker of Johnnie Walker Whisky and | :04:48. | :04:51. | |
Guinness beer will add a Mexican tequila producer to its portfolio. | :04:52. | :05:01. | |
:05:02. | :05:03. | ||
Russell Padmore reports. The Diageo struggles with the impact of the | :05:03. | :05:08. | |
region's debt crisis. That has not deterred the company from investing | :05:08. | :05:13. | |
in its Scotch whisky business. In June, it revealed plans to spend | :05:14. | :05:18. | |
$1.6 billion to expand production of a whisky. It takes a long time | :05:18. | :05:23. | |
to distil whisky, but the product will be aimed at American drinkers. | :05:23. | :05:27. | |
The world's biggest market for spirits. While North America and | :05:27. | :05:30. | |
Europe accounts for two-thirds of its profits, the company is | :05:30. | :05:36. | |
determined to concentrate more on emerging markets. China, for | :05:36. | :05:40. | |
example, where foreign wristy -- whisky brands are barely 1% of | :05:40. | :05:46. | |
consumption. Demand for spirits in Africa and Asia will continue to | :05:46. | :05:53. | |
increase according to some. Scotch whisky does have at cachet in | :05:53. | :05:57. | |
emerging markets. With current prosperity in these markets, there | :05:57. | :06:00. | |
will be an increasing amount of people will be able to afford to | :06:00. | :06:07. | |
drink these products. Beer brands produced by its rivals are a strong | :06:08. | :06:14. | |
competition in Africa for Diageo. Brewers in Ethiopia and Tanzania | :06:15. | :06:20. | |
are enhancing its profits. It is also selling Guinness in a Nigeria. | :06:21. | :06:26. | |
Shareholders will be watching for the possible takeover of a Mexican | :06:26. | :06:33. | |
tequila producer. This dark Irish BA is one of the stables. It relies | :06:33. | :06:38. | |
however more on spirit sales. It is two-thirds of the business. Other | :06:38. | :06:44. | |
predictions is that emerging markets will see a golden age of | :06:44. | :06:48. | |
demand as young aspiring businessmen will get a taste for it. | :06:48. | :06:56. | |
No wonder, Diageo is targeting half of its sale to come from emerging | :06:56. | :07:01. | |
markets by 2015. Australian airline Qantas has posted its first annual | :07:01. | :07:04. | |
loss since it was privatised in 1995, amid high fuels costs and | :07:04. | :07:14. | |
:07:14. | :07:15. | ||
growing losses at its international operations. And we know Qantas has | :07:15. | :07:25. | |
had a tough time with labour dispute and all sorts. A reversal | :07:25. | :07:32. | |
of fortune. What a year makes for the nation's flag-carrier. It | :07:32. | :07:37. | |
announced $256 million net loss and that is at a higher for billion- | :07:37. | :07:44. | |
dollar turn around from a net profit at in the previous month. | :07:44. | :07:50. | |
Then driven by the European economic crisis and higher fuel | :07:50. | :07:55. | |
prices, there was also the soaring Australian dollar, the bitter | :07:55. | :08:01. | |
battle with unions about salaries which saw Alan Joyce grounding the | :08:01. | :08:07. | |
entire fleet for 48 hours in October. Despite these crippling | :08:07. | :08:14. | |
factors, its share prices is up. By about 4% up in Sydney trading. | :08:14. | :08:21. | |
Investors, quite pleased and happy with the decision to cancel a major | :08:21. | :08:27. | |
order of 35 Boeing 787 Dreamliner aircraft worth about 9 billion US | :08:27. | :08:31. | |
dollars. At this point, the airline did not offer any forward looking | :08:31. | :08:35. | |
proper guidance but it said that the operating environment and | :08:35. | :08:38. | |
economic outlook remains challenging, volatile and dependent | :08:38. | :08:44. | |
on a number of uncontrollable external factors. We will see how | :08:44. | :08:52. | |
it fears in the next year. -- fares. Uncontrollable external factors - | :08:52. | :08:55. | |
you never like to hear that phrase. Computing giant Hewlett-Packard has | :08:55. | :08:58. | |
announced a monumental quarterly loss of $8.9 billion as it was | :08:58. | :09:02. | |
forced to write down the value of some assets and take hefty re- | :09:02. | :09:05. | |
organisational charges. Still, the world's largest technology company | :09:05. | :09:09. | |
by sales did attempt to reassure investors and said they are "making | :09:09. | :09:14. | |
decent progress despite the headwinds. Egypt has requested a | :09:14. | :09:16. | |
$4.8 billion loan from the International Monetary Fund to help | :09:16. | :09:20. | |
stabilise and revive its ailing economy. The formal request was | :09:20. | :09:23. | |
made during talks in Cairo between President Mohammed Mursi and IMF | :09:23. | :09:30. | |
chief Christine Lagarde. The IMF's technical team will visit Egypt | :09:30. | :09:32. | |
next month to study the Egyptian government's economic programme and | :09:32. | :09:42. | |
:09:42. | :09:45. | ||
discuss possible forms of financial support from the IMF. Markets are | :09:45. | :09:51. | |
up slightly in Asia. Some bad news out of China about its | :09:51. | :09:57. | |
manufacturing factor. A first flash look at numbers - manufacturing has | :09:57. | :10:03. |