Browse content similar to 04/10/2012. Check below for episodes and series from the same categories and more!
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Hello and welcome to World Business Report. Jobs, taxes, healthcare and | :00:17. | :00:21. | |
the deficit. The economic battleground is laid out in the | :00:21. | :00:31. | |
:00:31. | :00:35. | ||
battle for the White House. Japan's central bank is under | :00:35. | :00:39. | |
pressure. The waiting game. Will Spain ask | :00:39. | :00:43. | |
for help from the European Central Bank? Mario Draghi and his team | :00:43. | :00:53. | |
:00:53. | :00:59. | ||
The European Central Bank chief is likely to resist calls to cut | :00:59. | :01:04. | |
interest rates today. The bank is holding its monthly meeting in | :01:04. | :01:08. | |
Slavonia, amid signs the economic slump is deepening. But inflation | :01:08. | :01:13. | |
is running well above target. That is limiting the ability to cut | :01:13. | :01:19. | |
borrowing costs from the already record low of 0.75%. Now, he plans | :01:19. | :01:26. | |
to support Spain 2 Unlimited bond buying is also in limbo. -- the | :01:26. | :01:30. | |
plans. They will be plenty of fresh air | :01:30. | :01:35. | |
for the ECB members at this conference centre just outside the | :01:35. | :01:39. | |
Slovenian capital. But fresh moves to Tain borrowing costs for the | :01:39. | :01:43. | |
likes of Spain have look unlikely this month. Unemployment and | :01:43. | :01:47. | |
business prospects are poor in much of the eurozone and there are | :01:47. | :01:51. | |
plenty of arguments for Mario Draghi to bring rates down below | :01:51. | :01:58. | |
the current 0.75%. But most of the markets believe he will hold off | :01:58. | :02:03. | |
moving one of the last policy levers available. With Greece's | :02:03. | :02:08. | |
next bail-out in the balance and Spain's continued reluctance -- | :02:08. | :02:15. | |
reluctance to ask for help, the ECB is also in limbo. Germany's | :02:15. | :02:19. | |
criticism and support for southern Europe has not helped. But it is | :02:19. | :02:24. | |
the issue of European bonds that this adviser it says would be | :02:24. | :02:31. | |
opposed, not BCB support. When the time comes. The German government | :02:31. | :02:37. | |
has strict views on socialising European debt. -- the ECB. They | :02:37. | :02:43. | |
will not prevent European bonds coming up. So Germany would | :02:43. | :02:53. | |
:02:53. | :02:53. | ||
actually help the other countries. It may allow the ECB to be more | :02:53. | :02:58. | |
flexible and engage in some interventions. Meanwhile, the ECB | :02:58. | :03:02. | |
may only repeat that while it is unable to make unlimited bond | :03:02. | :03:08. | |
buyers, countries must ask and then meet the conditions. | :03:08. | :03:13. | |
Once again, financial markets are watching central banks today. In | :03:13. | :03:17. | |
Japan, the pressure is on the central bank to boost the economy | :03:17. | :03:21. | |
with the new finance and economy ministers saying it needs to be | :03:21. | :03:26. | |
more proactive. Let's go to Singapore now and drawing our | :03:26. | :03:34. | |
correspondent. Last month when they met, they announced the move. -- | :03:34. | :03:44. | |
:03:44. | :03:48. | ||
and join. It was a surprise move. The new | :03:48. | :03:53. | |
finance minister and economy Policy Minister have been quite focal. He | :03:53. | :03:58. | |
has been saying the Bank of Japan should do more in trying to tackle | :03:58. | :04:05. | |
the issue of this strong currency as well as the weak economy. He | :04:05. | :04:09. | |
says Japan should start buying foreign bonds in order to weaken | :04:09. | :04:14. | |
the value of the Japanese yen, but as we have been reporting the yen | :04:14. | :04:20. | |
has been hurting. Even though the Bank of Japan has been pouring a | :04:20. | :04:26. | |
lot of money into the economy and has kept interest rates very low, | :04:26. | :04:32. | |
it has not really worked to help the economy. Factory owners all say | :04:32. | :04:35. | |
that cheap loans are great but it does not mean anything if they | :04:35. | :04:39. | |
don't have enough businesses to borrow the money for. The strong | :04:39. | :04:44. | |
yen is definitely the biggest headache that they currently have. | :04:44. | :04:49. | |
Japan's central bank is a supposedly independent from global | :04:49. | :04:53. | |
pressures. We will see what it decides to do later this week. If | :04:53. | :04:58. | |
it decides to buy foreign bonds, the danger is that other central | :04:58. | :05:01. | |
banks could do the same and it could become a battle between | :05:01. | :05:05. | |
different central banks, on how to weaken their own economies. | :05:05. | :05:13. | |
Thank you. That gives you a sense as to the central bank action today, | :05:13. | :05:18. | |
which is very much the focus of financial markets. But let's not | :05:18. | :05:23. | |
ignore the big debate that took place overnight. It was the first | :05:23. | :05:27. | |
face to face debate of the US presidential battle. The territory | :05:27. | :05:32. | |
up for grabs, domestic policy. There was no bigger domestic issue | :05:32. | :05:38. | |
than the state of the economy. The conundrum, however, to restore | :05:38. | :05:41. | |
growth and tackle stubborn unemployment and bring the deficit | :05:41. | :05:46. | |
under control. President Obama became -- came under heavy attack | :05:46. | :05:51. | |
over his economic record. We go to New York and join our correspondent. | :05:51. | :05:57. | |
There was a lot of back and forth and a lot of time dedicated to | :05:57. | :06:03. | |
taxes? Yes. Not the sexiest of subjects but a lot of time was | :06:03. | :06:08. | |
spent going back and forth on this very issue. President Obama has | :06:08. | :06:13. | |
been trying in this campaign, and this evening, to betraying it from | :06:13. | :06:19. | |
me as somebody who would give tax cuts to the wealthy and put them up | :06:19. | :06:23. | |
for the middle class. These are claims Mitt Romney strongly denied. | :06:23. | :06:28. | |
The two got into a back and forth over this topic. Who mac for 18 | :06:28. | :06:36. | |
months, he has been running on this. -- for 18 months. Now, he says his | :06:36. | :06:44. | |
idea is, never mind. The fact is, if you are lowering the rates the | :06:44. | :06:49. | |
way you describe, it is not possible to come up with enough | :06:49. | :06:52. | |
deductions that the only effect high-income individuals to avoid | :06:52. | :06:59. | |
either raising the deficit or burden in the middle class. It is | :06:59. | :07:09. | |
:07:09. | :07:11. | ||
enough. It is arithmetic. -- burdening. It will be interesting | :07:11. | :07:16. | |
to see what the American public take from that. Listening to him, | :07:16. | :07:21. | |
it was interesting because from their answers, you could hear the | :07:21. | :07:30. | |
clear differences in their ideology. Yes. It has been something that | :07:30. | :07:36. | |
they have hinted at in the past, this choice, as President Obama | :07:36. | :07:41. | |
characterised it, between Mitt Romney advocating a top-down | :07:41. | :07:48. | |
economy, where the wealthiest in society are helped. But Mitt Romney | :07:48. | :07:54. | |
has a different view. The path we have been on has been unsuccessful. | :07:54. | :07:58. | |
The President's view is similar to that which we hit -- that which he | :07:58. | :08:03. | |
had four is a good. The bigger government, taxing more, they are | :08:03. | :08:10. | |
regulating all. That is not the right answer. We need to restore | :08:10. | :08:17. | |
vitality. The choice for voters is between a government that allocates | :08:17. | :08:23. | |
all of the assets or whether you think it should be the role of the | :08:23. | :08:28. | |
free market. Thank you. We will discuss this even more when we look | :08:28. | :08:33. | |
at the newspapers. Of course the debate is not in the papers but we | :08:33. | :08:38. | |
will look at some of the reaction elsewhere. Shares at Hewlett- | :08:38. | :08:44. | |
Packard have fallen to their lowest in a decade. Forecasts were lower- | :08:44. | :08:49. | |
than-expected for next year. The D Day boss has warned investors it | :08:50. | :08:56. | |
will take longer to write this ship than any of us would have liked. -- | :08:56. | :09:06. | |
:09:06. | :09:07. | ||
eBay. India's Aviation regulator will submit a report about | :09:07. | :09:15. | |
Kingfisher Airlines. They called it a complete paralysis of operations. | :09:15. | :09:23. | |
India's number two airline one year ago has huge depth and has not paid | :09:23. | :09:33. | |
:09:33. | :09:39. | ||
staff for some two months. -- debts. In the market, central banks -- the | :09:39. | :09:44. | |
story is about what central banks will or will not do. Currencies are | :09:44. | :09:50. | |
very much on the move. The yen is week ahead of the two a meeting. | :09:50. | :09:55. |