17/09/2012

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:00:03. > :00:07.123 days on board the space station. Those are the latest headlines from

:00:08. > :00:17.BBC News. Time for the latest financial news, here is Sally and

:00:18. > :00:22.

:00:22. > :00:30.the World Business Report. Hello, a warm welcome. I am Sally Bundock

:00:30. > :00:40.and here are the headlines for the World Business Report. Talks re sum

:00:40. > :00:49.between Lon bin -- resume between miners. A new report claims EU

:00:49. > :00:56.biofuel subsidies could deprive millions of food, land and water.

:00:56. > :01:03.Good to have you with us. In South Africa talks between Lombin and

:01:03. > :01:13.miners will retomb. They more than doubled its offer, but the pay rise

:01:13. > :01:13.

:01:13. > :01:18.is below the 12,500ran or $1500 demanded by miners. 44 people have

:01:18. > :01:24.died since the dispute began. Companies are losing millions in

:01:24. > :01:34.lost revenues. The Congress of South African unions will call for

:01:34. > :01:36.

:01:36. > :01:44.miners to return to work before the wider economy is damaged. Egged on

:01:44. > :01:54.by activists and the AMCU, thousands are on strike at mines

:01:54. > :01:58.owned my Lombin, Anglo-Saxon and others. These companies have called

:01:58. > :02:08.for stoppages at every mine. The Government warns the dispute is

:02:08. > :02:08.

:02:08. > :02:15.undermight being the economy and confidence of foreign investors.

:02:15. > :02:21.Investors and the strategy will be of detriment. Investors are saying

:02:21. > :02:28."Do we need to be aware of other things, how risky is the operation

:02:28. > :02:34.in South Africa?" George Zimmerman is an ongoing reminder of how --

:02:35. > :02:41.Zimbabwe is a reminder of how things can go wrong. The trade

:02:41. > :02:46.union congress told strikers to return to work. It's affiliated to

:02:46. > :02:50.the African ruling congress and has a long-standing agreement, it

:02:50. > :02:55.guarantees peaceful labour relations in securing moderate pay

:02:55. > :03:00.increases. It's harder to achieve this. It managed to tread the line

:03:00. > :03:05.over the years, and more successfully than anticipated. But

:03:05. > :03:11.now that deal is starting to break down. It hasn't spread the wealth

:03:11. > :03:17.as much as it needed to. Ordinary South Africans are beginning to

:03:17. > :03:21.become exasperated by a lack of delivery. This new mood of

:03:21. > :03:29.militantsy may have unwelcome consequences. The company says many

:03:29. > :03:37.of its mines lose money, and a rise in its wage bills may force them to

:03:37. > :03:42.close down mines. Over in Asia, tensions between China and Japan

:03:42. > :03:49.spilled over to attacks in Japanese firms. We have the details on this.

:03:49. > :03:53.It is getting difficult for some companies operating in China.

:03:53. > :03:59.That's right. Panasonic confirmed with the BBC that it is suspending

:04:00. > :04:05.some of its operations in China until Tuesday, and it reports that

:04:05. > :04:13.canon is holding its production as well as reported damage of

:04:13. > :04:18.dealership of Toyota in China, with the state media warning that Japan

:04:18. > :04:25.can face another loss decade. It's because of the disputed islands in

:04:25. > :04:30.the east China Sea, known as Senkaku, in Japan, and Diaoyu in

:04:30. > :04:35.China. The issue, territorial dispute has been going on for

:04:35. > :04:40.months. The Japanese government agreed to purchase the islands from

:04:40. > :04:46.a private owner, sparking protests over the weekend. The Japanese

:04:46. > :04:51.companies operating in China - it is not an easy time. So as you say,

:04:51. > :04:57.it's not difficult, it's far from resolved. What do you think is

:04:57. > :05:02.likely to happen. We see various statements from Japan and China.

:05:02. > :05:07.That's right. The Prime Minister, Yoshihiko Noda has warned China to

:05:07. > :05:15.make sure that the Japanese citizens are safe. The Chinese and

:05:15. > :05:19.state media is saying that it doesn't seem to be quietening down.

:05:19. > :05:25.It's interesting how the Chinese people react to demonstrations

:05:25. > :05:31.which have been violent over the weekend. We have heard from the US

:05:31. > :05:39.Defence Secretary. They are saying that this could escalate. Analysts

:05:39. > :05:45.in Japan say it's unlikely that the US Defence Secretary is warning of

:05:45. > :05:49.a possible military consequence. Now, rising food prices are eating

:05:49. > :05:56.into household incomes around the world, coinciding with a sharp rice

:05:56. > :06:01.in the use of crops such a soy and maze to produce food. They are

:06:01. > :06:05.commonly used in animal feed and meat production. The European

:06:05. > :06:14.Commission proposed limits on crops. And the French President Francois

:06:14. > :06:19.Hollande called for a pause in crop-based fuel production. Oxfam

:06:19. > :06:24.is publishing its report. Thanks for coming in. Why is the

:06:24. > :06:30.production of biofuel for energy use a bad thing. It's a terrible

:06:30. > :06:35.thing. I lived in Africa and worked with the poor families. Imagine a

:06:35. > :06:40.family spending 80% of its income on food. A small increase is a

:06:40. > :06:48.terrible thing. Yet we are burning billons of food every year in our

:06:48. > :06:52.cars as biofuel. Talk us through the link between the two. There's a

:06:52. > :06:55.lot of subsidise of biofuel in England and the states. You are

:06:56. > :07:01.talking about families in Africa struggling to eat. It's the impact

:07:01. > :07:06.on the food price. If we divert more crops, and at the moment 40%.

:07:06. > :07:12.US corn crop is going into petrol for cars, that drives up world

:07:12. > :07:16.prices and the price of food. It's bad for the hungry people of the

:07:16. > :07:23.world. The EU seems to be going for a big U-turn, because a lot of

:07:23. > :07:30.evidence has come up to say the scientific basis for biofuels is

:07:30. > :07:35.not flawed but not 100% correct. Some may think it would be worth

:07:35. > :07:39.the harming of fuel prices, but it's not. Biofuels are harmful to

:07:39. > :07:44.the environments, which is why we are seeing indications of changes

:07:44. > :07:53.in policy. Nothing has been done yet or helping the hungry people

:07:53. > :07:59.that went to bed. What are you hoping for, because the EU and

:07:59. > :08:04.formers in America. It's -- EU and farmers in America. It's a strong

:08:04. > :08:10.lobby. It is. A lot of the companies agree with Oxfam that we

:08:10. > :08:15.need to cut the mandate, of putting food into the cars, and people are

:08:15. > :08:19.going hungry. Thank you. Your report out today on the harm of

:08:19. > :08:23.biFuels. Let's squeeze in the business stories. President Barack

:08:23. > :08:28.Obama launched a trade complaint against China, claiming the country

:08:28. > :08:34.is using illegal subsidies to support vehicle and motor part

:08:34. > :08:38.makers and claims Beijing is abusing world trade laws by

:08:39. > :08:44.imposing fees on US experts. President Barack Obama made the

:08:44. > :08:49.announcement during a tour of Ohio. Relying on the motor industry. It's

:08:49. > :08:56.an important swing state in the upcoming presidential election. The

:08:56. > :09:00.cost of borrowing has been frozen, pushing up inflation to 7.6% in

:09:00. > :09:07.August. The Reserve Bank of India had been under pressure to cut

:09:07. > :09:12.interest rates in a bid to boost economic growth, but cheaper

:09:12. > :09:18.borrowing could stoke inflation further. Markets in Asia, and

:09:18. > :09:23.Japanese markets closed. No access. Fairly flat, if not mixed pictures

:09:23. > :09:28.in Aish yeah, just to mention some markets are doing rather well off

:09:28. > :09:33.the back of all the niece from last week, across many key economies in

:09:33. > :09:38.the world, the US and Europe. Basically because, of course, in

:09:38. > :09:42.Europe and the US the Federal Reserve moved and all the votes in

:09:42. > :09:47.Germany and moves elsewhere in Europe to boost the economies. You

:09:47. > :09:50.can see the currencys there at the moment, how they are faring, and