30/08/2012 World Business Report

World News. Now for the latest financial news with World Business

Hello and welcome to World Business Report. The headlines: In the US

the Republicans make the case for less government to cure the economy

at their convention in Florida. And, the world's biggest advertising

firm WPP tells us the effects of the Olympics and an investor pay

revolt. Strength any of relations - Angela Merkel heads to China to

talk trade and the eurozone crisis. Mitt Romney's running mate, Paul

Ryan, has promised America a turnaround in his speech at the

Republican convention in Florida. He's promised not to duck any tough

issues on the economy. Mitt Romney himself will take to the speech

this evening. It's an opportunity to define himself to voters and to

reinforce his message that he's the best person to restore growth and

bring down unemployment. So what exactly is his economic plan? As

the number of unemployed have grown, so have the lines at career fairs

like this one in a New Jersey. For many, the search for employment

often ends in disappointment. tough. You get an interview and

sometimes you do not hear an interview back. It is hard. You are

competing with a lot of people. A lot of times I do not even think

they get to you resonate. In Tampa, Florida, the Republican faithful

rally around their candidate. Mitt Romney says he can create 4 million

jobs in four years. His economic adviser points out jobs will follow

growth. One of the key reasons we have had a sluggish job-creation is

economic growth has been so anaemic. There is an economic team around

Mitt Romney which police we can jump-start the gross and restore

part of the Employment race CEO. Those two things taken together

will mean more jobs. What will a Romney administration de? It will

lower tax rates, reduce the size of government, and roll back two key

pieces of Obama administration - healthcare included. I have seen

more and more jobs. Optimism that may not help Mitt Romney at the

polls. If enough people believe work is on the horizon, then Mr

Romney's bold claim to create jobs will not be as much of an appeal

come November. More pressure for the British bank Barclays as it

confirms a criminal investigation from the serious fraud office. The

regulators are investigating payments between the bank and Qatar

Holding - part of sovereign wealth fund Qatar Investment Authority. It

relates to 2008 when Barclays was raising money from Middle East

investors during the banking crisis. Most public sector workers in

Brazil, who've been taking part in one of the country's biggest ever

industrial disputes, have called off their strike. The government

said the majority had accepted its offer of a sixteen percent pay rise

over the next three years. Meanwhile the central bank has cut

interest rates to a record low of 7.5% to try and revive the economy.

The Mexican President Felipe Calderon says the state oil company

has made its first big deep water oil discovery. President Calderon

said Pemex had found an oil well containing an estimated 250 million

to 450 million barrels. The President said that if the estimate

were confirmed, it would equal a third of Pemex's annual oil

production. Mexico is among the world's top ten producers of oil.

German Chancellor Angela Merkel has just arrived in China accompanied

by seven ministers hoping to increase ties with the world's

second-largest economy. Very important treat for Angela Merkel?

Absolutely. It is her second visit this year to Beijing. Underscoring

Germany's growing dependency on the world's second largest economy as

the eurozone goes through a major financial crisis. The Chancellor

will be accompanied by a delegation which includes top executives from

German companies. While Germany still exports more to the US and

the European Union, the Chinese market has been one of the fastest

sources of growth, helping to offset the weak growth in its

backyard. $180 billion worth of bilateral trade. It nearly doubled

from what it was five years ago. Despite a deepening German Chinese

relationship, German business leaders continued to complain about

unfair advantages to Chinese companies. We will keep an eye on

that's it. WPP Updates the industry with interim results this morning.

Investors are keen to see the effects of the Olympics on its

bottom line. It is its first set of earnings since the biggest pay

revolts at the annual general meeting in Jane - nearly six out of

ten investors voted against the salary of chief executive Sir

Martin Sorrell. Are we expecting bumper results because of all the

events? Absolutely. It is what we call a quadrennial year, every four

years we have the Olympics and the American election and they channel

masses of money into advertising, principally into television.

terms of the WPP and its performance, it was all over the

press, the shareholder revolt and the fact that so Martin Sorrell was

given a big increase in his remuneration. What was your

perspective? So Martin Sorrell is different to your average CEO. He

is anonymous with having built up the company. His statements tended

to move markets. Motoring: It --' economies - he is highly respected.

His pay levels are somewhat out of step with the current mood of

austerity. We will see if that has an effect. It seems unfair to

compare him to your average CEO. But on the other hand, there is

general concern about people being up over pay. It is whether he is

worth what he's paid. In terms of where advertising is going, it is

moving away from television. As time has gone by, has that been the

case? That is interesting. That they have been results looking at

the power of television. Despite all this talk about the power of

digital, there is no doubt digital is taking more than he used to in

terms of advertising Budget, but television is still by far the

highest impact media under any analysis. People still consider

television to have a higher impact. Despite people getting more and

more personal video recorders, the ability to stick at, people are

still watching the same number of lads and watching more television.

The impact of television remains very, very high. It is also one of

the biggest revenue streams for advertising and it is very

important for the industry as a whole. The US election Das that his

and the enormous event in terms of the amount spent? Of no other

country, isn't so much spending. The US is so huge and that is how

you need to reach the mass market. A lot of talk about Obama using

digital in the last election but television remains the most viable.