07/09/2012 World Business Report


07/09/2012

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BT's. He said a new power be Greg Wood. -- amputees. He set a new

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:00:17.:00:17.

Paralympic record. Time will walk but this report. --

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time for World Business Report. Global investors to the European

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Central Bank's planned to defuse the eurozone crisis, leading US

:00:30.:00:34.

shares to close at their highest in nearly five years.

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A relief rally for Asian markets as stocks are set for their biggest

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daily gain in nearly five weeks. Glencore's mega-merger bit as

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Xtrata shareholders looks set to reject its takeover offer.

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We will catch up through surely. First, markets around the world

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have surged on a new plan by the European Central Bank to ease the

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eurozone crisis. The major stock markets closed at their highest in

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four years in the US. We will check in on how the Asian markets are

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doing any moment. What is all the fuss about? Out right monetary

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transactions. The banquet by an unlimited government bonds from

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many eurozone country wants it asks for help. The ones they have in

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mind a Spain and Italy. It would help drive down the country's

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borrowing costs, but they would be strings attached. Nations would

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have to request help from the nation's bail-out fund first and

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accept the strict conditions that come with that. Optimism on the

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market continues in Asia. I know they are expecting decent

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news out of the US, there is also infrastructure talk and a green

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light from China. They are loving what Mario Draghi had to say.

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Absolutely. A big sigh of relief after such uncertainty over what

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will happen in the eurozone. Regional stocks are set for their

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biggest daily gains in more than a month. A surgeon afternoon training

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-- trading. US economic data is feeding speculation of strong US

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jobs report. The expectation is that employees -- employee has

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created 125,000 jobs in August. China is giving Asian markets and

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added left today. Regulators have approved 30 infrastructure projects,

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which adds to signs that Beijing is speeding up spending to boost

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flagging economic growth. This is helping the Shanghai stock market.

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One analyst said that there is a view among investors that there is

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a genuine resolve are among policy makers to boost their respective

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economies. All green light for now.

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But get more on this. -- let's get more. Many were expecting this to

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happen. How will it work? Markets have been expecting it. I do not

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think they were disappointed. The ECB have said they will buy up the

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government bonds and they have an unlimited power to do that. Before

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this happens, the countries in questions have to request a bail

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out end agree to have the EC be strictly monitoring the steps they

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take to improve the economy. They're the conditions there we

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have seen the likes of Greece and Spain get. It is important to

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remind everybody that this idea was not meant to be the saw the ball at

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fix. It is almost like a bandit for some breathing space. One of the

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main reasons we saw stock markets reacted strongly is because in the

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short-term, we will not have situations like Greece where every

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few months, there is a mass panic. It does not change the bigger

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economic problems are a struggling recovery throughout much of the

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:05:27.:05:27.

southern European countries. We will talk more about that later.

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The global market will also turn their attention to the key US

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employment figures for August. They will loom very large for President

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Barack Obama coming after his speech to the Democratic National

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Convention. Jobs growth is expected to have called in August. Around

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125,000 new jobs will have been created compared with July's

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163,000 jobs. The unemployment rate is seen holding steady at 8.3%.

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That number has not budged since the beginning of the year.

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The adulation of the crowd at the Democratic National Convention it

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may end up cutting for little. Barack Obama's bid for re-election

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is this month's -- if this month's unemployment figures turn out to be

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bad. Job hunters in Hama finding it rough. -- in Harlem. What job a

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year looking for? Superintendent. I have experience. I have applied to

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a lot of places and it is hard to try and find something. Harlem is

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distinctive in many ways. Experience in jobseeker's here may

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be fairly typical of the rest of America. It is tough to find work.

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Presidential elections are often won or lost on the state of the

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jobs market. This one may be no exception. At this point in Barack

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Obama's first move into the White House four years ago, 6.1% of

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Americans were out of work. The latest data issues about 8.3% in

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August. The last incumbent president to win a second term with

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unemployment this I was Franklin D Roosevelt back in 1936. The US

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economy is creating jobs, but not fast enough to really bring down

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unemployment. It is unlikely to get better unless a few of the

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uncertainties are lifted. One of them is the situation in Europe and

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the uncertainty there. It is likely to persist well into 2013. Voters

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already know the jobs market is bad. These latest figures will probably

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only have a decisive impact on the campaign if they come in much worse

:08:09.:08:19.
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than expected. We will know in a few hours whether

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one of the most awaited mergers in the corporate world will go ahead

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or fall apart. Glencore and Xtrata agreed earlier to form a single

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company in a deal worth $70 billion. But Xtrata shareholders may reject

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the deal in a general meeting to be held in Switzerland sure be.

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When Xtrata and Glencore announced their engagement last February, the

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view in mining circles was that it would be a perfect match. Glencore

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owns one-third of Xtrata's shares and made a bid to buy the rest by

:09:05.:09:15.
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swapping them for shares of its own. It gained a 12% stake, making it

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the second-largest shareholder. It demanded that Glencore increase the

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proportion of its shows that it would swap with Xtrata shares to

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complete the merger. Effectively increasing the pay-off to Xtrata

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shareholders by 16%. But Glencore has refused to budge. Xtrata shares

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have been falling on the financial markets, suggesting traders expect

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the merger to fail. Glencore and Xtrata's merger would make the

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world's fourth largest wind up. deal means no synergy. Both

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companies would have benefited from this. There is uncertainty about

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what would happen to the relationship between the two

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companies. It is vote spells the meltdown of the deal, many expect

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