:00:02. > :00:12.World News. Now for the latest financial news with World Business
:00:12. > :00:17.
:00:17. > :00:21.Hello and welcome to World Business Report. The headlines: In the US
:00:21. > :00:26.the Republicans make the case for less government to cure the economy
:00:26. > :00:30.at their convention in Florida. And, the world's biggest advertising
:00:30. > :00:40.firm WPP tells us the effects of the Olympics and an investor pay
:00:40. > :00:45.
:00:46. > :00:53.revolt. Strength any of relations - Angela Merkel heads to China to
:00:53. > :00:56.talk trade and the eurozone crisis. Mitt Romney's running mate, Paul
:00:56. > :01:00.Ryan, has promised America a turnaround in his speech at the
:01:00. > :01:05.Republican convention in Florida. He's promised not to duck any tough
:01:05. > :01:09.issues on the economy. Mitt Romney himself will take to the speech
:01:09. > :01:12.this evening. It's an opportunity to define himself to voters and to
:01:12. > :01:22.reinforce his message that he's the best person to restore growth and
:01:22. > :01:24.
:01:24. > :01:30.bring down unemployment. So what exactly is his economic plan? As
:01:30. > :01:35.the number of unemployed have grown, so have the lines at career fairs
:01:35. > :01:43.like this one in a New Jersey. For many, the search for employment
:01:43. > :01:47.often ends in disappointment. tough. You get an interview and
:01:47. > :01:53.sometimes you do not hear an interview back. It is hard. You are
:01:53. > :02:01.competing with a lot of people. A lot of times I do not even think
:02:01. > :02:07.they get to you resonate. In Tampa, Florida, the Republican faithful
:02:07. > :02:13.rally around their candidate. Mitt Romney says he can create 4 million
:02:13. > :02:19.jobs in four years. His economic adviser points out jobs will follow
:02:19. > :02:24.growth. One of the key reasons we have had a sluggish job-creation is
:02:24. > :02:33.economic growth has been so anaemic. There is an economic team around
:02:33. > :02:39.Mitt Romney which police we can jump-start the gross and restore
:02:39. > :02:44.part of the Employment race CEO. Those two things taken together
:02:44. > :02:53.will mean more jobs. What will a Romney administration de? It will
:02:53. > :03:02.lower tax rates, reduce the size of government, and roll back two key
:03:02. > :03:11.pieces of Obama administration - healthcare included. I have seen
:03:12. > :03:18.more and more jobs. Optimism that may not help Mitt Romney at the
:03:18. > :03:22.polls. If enough people believe work is on the horizon, then Mr
:03:22. > :03:26.Romney's bold claim to create jobs will not be as much of an appeal
:03:26. > :03:29.come November. More pressure for the British bank Barclays as it
:03:29. > :03:32.confirms a criminal investigation from the serious fraud office. The
:03:32. > :03:36.regulators are investigating payments between the bank and Qatar
:03:36. > :03:39.Holding - part of sovereign wealth fund Qatar Investment Authority. It
:03:39. > :03:46.relates to 2008 when Barclays was raising money from Middle East
:03:46. > :03:49.investors during the banking crisis. Most public sector workers in
:03:49. > :03:52.Brazil, who've been taking part in one of the country's biggest ever
:03:52. > :03:56.industrial disputes, have called off their strike. The government
:03:56. > :03:59.said the majority had accepted its offer of a sixteen percent pay rise
:03:59. > :04:04.over the next three years. Meanwhile the central bank has cut
:04:04. > :04:07.interest rates to a record low of 7.5% to try and revive the economy.
:04:07. > :04:11.The Mexican President Felipe Calderon says the state oil company
:04:11. > :04:14.has made its first big deep water oil discovery. President Calderon
:04:15. > :04:22.said Pemex had found an oil well containing an estimated 250 million
:04:22. > :04:25.to 450 million barrels. The President said that if the estimate
:04:25. > :04:35.were confirmed, it would equal a third of Pemex's annual oil
:04:35. > :04:39.
:04:39. > :04:44.production. Mexico is among the world's top ten producers of oil.
:04:44. > :04:48.German Chancellor Angela Merkel has just arrived in China accompanied
:04:48. > :04:57.by seven ministers hoping to increase ties with the world's
:04:57. > :05:05.second-largest economy. Very important treat for Angela Merkel?
:05:05. > :05:09.Absolutely. It is her second visit this year to Beijing. Underscoring
:05:09. > :05:14.Germany's growing dependency on the world's second largest economy as
:05:14. > :05:22.the eurozone goes through a major financial crisis. The Chancellor
:05:22. > :05:31.will be accompanied by a delegation which includes top executives from
:05:31. > :05:36.German companies. While Germany still exports more to the US and
:05:36. > :05:41.the European Union, the Chinese market has been one of the fastest
:05:42. > :05:49.sources of growth, helping to offset the weak growth in its
:05:49. > :05:55.backyard. $180 billion worth of bilateral trade. It nearly doubled
:05:55. > :06:00.from what it was five years ago. Despite a deepening German Chinese
:06:00. > :06:07.relationship, German business leaders continued to complain about
:06:07. > :06:16.unfair advantages to Chinese companies. We will keep an eye on
:06:16. > :06:19.that's it. WPP Updates the industry with interim results this morning.
:06:19. > :06:26.Investors are keen to see the effects of the Olympics on its
:06:26. > :06:29.bottom line. It is its first set of earnings since the biggest pay
:06:29. > :06:34.revolts at the annual general meeting in Jane - nearly six out of
:06:34. > :06:44.ten investors voted against the salary of chief executive Sir
:06:44. > :06:47.
:06:47. > :06:53.Martin Sorrell. Are we expecting bumper results because of all the
:06:53. > :06:58.events? Absolutely. It is what we call a quadrennial year, every four
:06:58. > :07:04.years we have the Olympics and the American election and they channel
:07:04. > :07:08.masses of money into advertising, principally into television.
:07:08. > :07:13.terms of the WPP and its performance, it was all over the
:07:13. > :07:17.press, the shareholder revolt and the fact that so Martin Sorrell was
:07:17. > :07:22.given a big increase in his remuneration. What was your
:07:23. > :07:29.perspective? So Martin Sorrell is different to your average CEO. He
:07:29. > :07:37.is anonymous with having built up the company. His statements tended
:07:37. > :07:42.to move markets. Motoring: It --' economies - he is highly respected.
:07:42. > :07:48.His pay levels are somewhat out of step with the current mood of
:07:48. > :07:53.austerity. We will see if that has an effect. It seems unfair to
:07:53. > :07:59.compare him to your average CEO. But on the other hand, there is
:08:00. > :08:05.general concern about people being up over pay. It is whether he is
:08:05. > :08:11.worth what he's paid. In terms of where advertising is going, it is
:08:11. > :08:19.moving away from television. As time has gone by, has that been the
:08:19. > :08:25.case? That is interesting. That they have been results looking at
:08:25. > :08:29.the power of television. Despite all this talk about the power of
:08:29. > :08:33.digital, there is no doubt digital is taking more than he used to in
:08:33. > :08:39.terms of advertising Budget, but television is still by far the
:08:39. > :08:43.highest impact media under any analysis. People still consider
:08:43. > :08:48.television to have a higher impact. Despite people getting more and
:08:48. > :08:53.more personal video recorders, the ability to stick at, people are
:08:53. > :08:59.still watching the same number of lads and watching more television.
:08:59. > :09:03.The impact of television remains very, very high. It is also one of
:09:03. > :09:09.the biggest revenue streams for advertising and it is very
:09:09. > :09:16.important for the industry as a whole. The US election Das that his
:09:16. > :09:21.and the enormous event in terms of the amount spent? Of no other
:09:21. > :09:27.country, isn't so much spending. The US is so huge and that is how
:09:27. > :09:37.you need to reach the mass market. A lot of talk about Obama using
:09:37. > :09:38.
:09:38. > :09:44.digital in the last election but television remains the most viable.