:00:05. > :00:15.Malala Yousafzai is going to have a good chance of making a recovery.
:00:15. > :00:16.
:00:16. > :00:22.Now it is time for the latest financial news.
:00:22. > :00:29.This is World Business Report. Here are the headlines: Sacks of cash.
:00:29. > :00:35.Goldman Sachs appears to return to profit.
:00:36. > :00:39.Nat Rothschild resigns from the board at Bumi, the mining board he
:00:40. > :00:49.co-founded two years ago. He and food for thought. We focus
:00:50. > :00:51.
:00:51. > :00:57.on how to feed Asia's growing population at an affordable price.
:00:57. > :01:02.Good to have you with this. What A difference a year can make. Banking
:01:02. > :01:07.giant Goldman Sachs looks to have hefty profits last year. -- this
:01:07. > :01:14.year. Lawsuits have been dropped and settled. Increasingly, things
:01:14. > :01:19.are looking up. So far this burning season has been
:01:19. > :01:24.a good one for a Wall Street banks. JP Morgan and Citigroup have both
:01:24. > :01:30.been reporting strong figures. It is unlikely that Goldman Sachs will
:01:30. > :01:34.disappoint. Revenues have more than doubled to $7.3 billion. That is a
:01:34. > :01:40.sharp turnaround from four consecutive quarters of falling
:01:40. > :01:44.income. What is behind the change? A slow and steady recovery of
:01:44. > :01:48.America's housing market is helping banks put the worst of the crisis
:01:48. > :01:53.behind them. But it is a decision to boost liquidity that is helping
:01:53. > :01:59.put banks back on track. A third round of asset purchases has helped
:01:59. > :02:03.to boost stock markets and raised bond prices. That is particularly
:02:03. > :02:12.important for Goldman Sachs. But nonetheless, it is also having to
:02:12. > :02:15.be much more cautious. The ongoing uncertainty and the ongoing
:02:15. > :02:20.problems in the eurozone debt crisis mean that financial
:02:20. > :02:24.institutions are having to shore up their reserves. It is unlikely that
:02:24. > :02:32.the next set of figures for the next quarter will tell us more
:02:32. > :02:37.about the state of the global economic recovery.
:02:37. > :02:42.We will be updated later when we get that news. Stay with BBC for
:02:42. > :02:49.that. As you have been healing, Portugal's government unveiled one
:02:49. > :02:56.of the toughest budgets in years. It is going to cut more than 4
:02:56. > :03:01.billion euros of spending. There are painful economic reforms in
:03:01. > :03:08.return for bailout money. It is highly controversial. It is no
:03:08. > :03:15.surprise that Spain looks to set to delay any formal bailout request.
:03:15. > :03:22.Many I now asking, are the policies doing one hand and good? -- more
:03:22. > :03:28.time. Many are wondering whether this is the right medicine for
:03:28. > :03:35.these economies. What are your thoughts? It is really causing
:03:35. > :03:42.problems in Europe. What we are measuring all these against his
:03:42. > :03:48.budget deficit as a percentage of GDP. If you shrink the GDP too much,
:03:48. > :03:51.they are chasing their tails. You have got to consider that these
:03:51. > :03:56.countries have been going through austerity for a number of years.
:03:56. > :04:01.People have been suffering for a long time. In Portugal last month
:04:01. > :04:06.there were protests. The protesters got a victory. The budget had to
:04:06. > :04:10.back down on its intention to increase the pay roll tax. The
:04:10. > :04:16.protesters feel they might have more leverage. If they protest the
:04:16. > :04:21.government will back down. Do you think it is too far, too fast?
:04:21. > :04:27.Greece say they want more time. Some have been arguing for some
:04:27. > :04:32.time that when Germany is calling for is quite unrealistic. Portugal
:04:32. > :04:42.and Spain have been given some concessions. Portugal has been
:04:42. > :04:42.
:04:42. > :04:48.given an extra year. Spain is asking for extra space. You can't
:04:48. > :04:54.give them too many concessions. But the debate that it GDP shrinks too
:04:54. > :05:01.much it is a pointless exercise. You get to a point where you are
:05:01. > :05:07.damaging the economy. When your currency is fixed to the single
:05:07. > :05:11.currency, what is the alternative? That is the issue. If you want to
:05:11. > :05:19.get to competitiveness, you have to let to exchange rate we can. They
:05:19. > :05:26.cannot do that. The other thing they can do is reduce wages. Wages
:05:26. > :05:30.are coming down. Portugal should run a trade surplus this year.
:05:30. > :05:37.Later we will talk through today's newspapers. That will include
:05:37. > :05:47.Portugal. Now to a shop. The saga at Bumi
:05:47. > :05:50.
:05:50. > :05:56.continues. -- Asia. This is quite a tale. Talk us through the latest.
:05:56. > :06:01.Quite a tale. Quite a saga. The latest twist in pole snapped what
:06:01. > :06:10.child resigning from the board. That is the coal-mining that he
:06:10. > :06:16.founded two years ago. He has quit due to an argument with Indonesia's
:06:16. > :06:23.Bumi family. This is over assets. He offered to buy back the stage
:06:23. > :06:33.from Bumi. But he said that it would be a disgrace to proceed with
:06:33. > :06:34.
:06:34. > :06:44.what he called the proposal. Last year, Mr Rothschild called for a
:06:44. > :06:52.clean-up of the Frome. This was due to alleged irregularities. Bumi
:06:52. > :07:00.were planning to bring it back to square one. They see it was good
:07:00. > :07:08.news for the from's shoulders. Deteriorating relations between the
:07:08. > :07:14.sides is raising fears by investors. It resulted in a sharp fall in the
:07:14. > :07:21.shares. The company's stocks has lost two-thirds of its price.
:07:21. > :07:27.Shares did surge somewhat last week. The family is incredibly
:07:27. > :07:33.influential in Indonesia. A sign of how influential they are, their
:07:33. > :07:38.patriarch is a presidential candidate.
:07:38. > :07:43.Very interesting. We will keep an eye on that.
:07:43. > :07:49.Food. We cannot live without it and we do not like paying too much for
:07:49. > :07:53.it. How to feed a show's population at an affordable price could be one
:07:53. > :07:58.of the issues in the spotlight today for world today. The price of
:07:59. > :08:02.grain and meat has soared in America. Singapore is a densely
:08:02. > :08:06.populated open state and imports most of its food. But some
:08:06. > :08:11.residents are trying to change things.
:08:11. > :08:16.In the middle of the open jungle, this man is growing his own
:08:16. > :08:20.vegetables. On this small pot of land his produce ranges from
:08:20. > :08:28.Chinese spinach to rock melons. It is a key source of ingredients for
:08:29. > :08:35.his family's business. He has been able to save up to 30% in costs.
:08:35. > :08:45.Most of the food is bought from neighbouring countries. What I do
:08:45. > :08:47.
:08:47. > :08:51.is instead of buying all the materials I keep my costs low.
:08:51. > :08:57.Sometimes I produce vegetables that are a quality for the consumer at a
:08:57. > :09:00.low price. A for everyday shopping, this kind of market is where locals
:09:00. > :09:06.come to buy their fruit and vegetables. Products here are much
:09:06. > :09:10.cheaper. But most of the food is imported. Prices fluctuate
:09:10. > :09:14.depending on what is happening elsewhere. That can have a real
:09:14. > :09:18.impact on shoppers here. Especially low income families, who are
:09:18. > :09:23.estimated to spend almost half their monthly income on food.
:09:23. > :09:31.During the last food price crisis in 2008, costs caused riots across
:09:31. > :09:37.the Middle East and northern Africa. Here in Singapore, the cost jumped
:09:38. > :09:45.6.5%. That is compared to 2% in 2007. He similar situation is
:09:45. > :09:52.unfolding now. Wheat prices have risen 25% this year. Dairy prices
:09:53. > :09:58.went up by 7% just last month. At this food centre, he prepares fish
:09:58. > :10:03.soup with his home-grown vegetables. He hopes to start his own fish farm
:10:03. > :10:13.as well. But with limited space in the city, not many can do this. If
:10:13. > :10:18.food prices rise even higher, it will be hard for people to swallow.