Browse content similar to 15/11/2012. Check below for episodes and series from the same categories and more!
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electricity. It is now time for the latest | :00:03. | :00:13. | |
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financial news with World Business Here are the headlines: As the | :00:20. | :00:24. | |
challenge his mount for China's new leaders, we ask what the changeover | :00:24. | :00:28. | |
will mean for the world's number two economy. | :00:28. | :00:33. | |
Bad loans are on the rise at China's banks. The worst run of | :00:33. | :00:41. | |
figures since records began. And the eurozone's economic slump | :00:41. | :00:45. | |
continues. Growth numbers may confirm fears it is even fizzling | :00:45. | :00:55. | |
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Good to have you do this. China's new Premier has been addressing the | :01:04. | :01:08. | |
Chinese people following the announcement of the new leadership | :01:08. | :01:12. | |
in the world's second-largest economy. He said they face serious | :01:12. | :01:16. | |
challengers and strengthening the economy is top priority. New | :01:16. | :01:21. | |
Saturday from China's banks indicates feeling grew that it may | :01:21. | :01:31. | |
be hard. -- fuelling growth. It has been a momentous day for China. | :01:31. | :01:36. | |
This news coming out about loans is not good at all, is it? | :01:36. | :01:40. | |
Absolutely. It is signalling trouble to come for the country's | :01:40. | :01:45. | |
new leadership. These delinquent loans increased for a fourth | :01:45. | :01:48. | |
straight quarter. The longest streak of deterioration since the | :01:48. | :01:54. | |
data became available eight years ago. It highlights growing | :01:54. | :01:59. | |
pressures on profitability as the economy continues to weaken. Non- | :02:00. | :02:07. | |
performing loans rose by a whopping $3.6 billion in the three months to | :02:07. | :02:17. | |
:02:17. | :02:19. | ||
September to about 480,000,000,001. It comes from all financial | :02:19. | :02:26. | |
institutions. Chinese lenders are grappling with rising defaults and | :02:26. | :02:31. | |
we can loan demand after economic growth slowed for a seventh quarter. | :02:31. | :02:36. | |
Combine that income from all these banks -- combined income from all | :02:36. | :02:46. | |
these banks slumped down from 23%. We are seeing a growing downturn in | :02:46. | :02:52. | |
the profitability of the banks. Let's have further analysis now on | :02:52. | :03:00. | |
what the challengers are for the leadership in China. We go live to | :03:00. | :03:10. | |
:03:10. | :03:10. | ||
a bureau in Beijing. We just heard that this rise in bad loans at | :03:10. | :03:17. | |
China's banks is not a good sign. That is certainly not very good | :03:17. | :03:21. | |
news. If we step a little bit back, today is a very exciting moment | :03:21. | :03:26. | |
because we just learned who the captain and the captain's bilby for | :03:26. | :03:32. | |
China's next 10 years. The government will be faced with a | :03:32. | :03:36. | |
whole series of economic and political challenges. Financial | :03:36. | :03:40. | |
reforms is one of the things they will have to target. Apart from | :03:40. | :03:45. | |
that there will be other things they need to look at, which | :03:45. | :03:49. | |
includes more liberation on immigration system. Social welfare | :03:49. | :03:54. | |
is important as well. It is important to remember that the new | :03:54. | :03:56. | |
government will be the one that is sitting on the seat making all | :03:56. | :04:01. | |
these changes. The background is really that China is now the second | :04:01. | :04:07. | |
largest economy in the world and it is going to be an economy that will | :04:07. | :04:10. | |
probably have its lowest economic growth since the night -- late | :04:10. | :04:15. | |
1990s. It is an exciting moment and we have just seen who is in charge, | :04:15. | :04:23. | |
but we knew he would get the top job. But what about the team as a | :04:23. | :04:29. | |
whole? That was shrouded in secrecy. Given that announcement, what can | :04:29. | :04:36. | |
you make of their plans for the economy? Justin Howe were ago we | :04:36. | :04:42. | |
saw through the final seven men are who are making into the important | :04:42. | :04:50. | |
panel. We see that this is a panel that is a mixture of those who | :04:50. | :04:54. | |
embrace the conservative approaches and those who would embrace the | :04:55. | :05:00. | |
liberal ones. If anything, the leader is still the important one. | :05:00. | :05:04. | |
We have not heard a formal work agenda from him yet, but judging | :05:04. | :05:09. | |
from past experience, it is important to know that his work in | :05:09. | :05:14. | |
the coastal provinces tell us that he is someone who is sympathetic to | :05:14. | :05:19. | |
those who advocate for more fresh and open market reforms. That is | :05:19. | :05:23. | |
always a pleasing sign. I'm glad to see you worry and read today. Will | :05:23. | :05:31. | |
we will leave it there. Thank you for your time. | :05:31. | :05:35. | |
As you have been hearing on Wednesday we saw a wave of petty | :05:35. | :05:43. | |
austerity protests and strikes across Europe. -- NT austerity. | :05:43. | :05:48. | |
Today GDP data it will be announced. In a few hours we will start to get | :05:48. | :05:53. | |
a sense of the depth of the slump in the eurozone as a whole. The | :05:54. | :05:58. | |
region's economy is predicted to contract again down 2.2 % when | :05:58. | :06:03. | |
compared to the second quarter. When you look at it conveyed to a | :06:03. | :06:10. | |
year ago, we are seeing a contraction of 0.7%. Some experts | :06:10. | :06:14. | |
are warning that these predictions are wildly optimistic, given the | :06:14. | :06:19. | |
factory surveys for September which prevent --. The bigger slump in | :06:19. | :06:22. | |
almost three years. The big worry is that the stronger parts of | :06:22. | :06:27. | |
Europe no longer hold up against the broader economic crisis. The | :06:28. | :06:31. | |
figures for France come out in an hour. They are expected to show | :06:31. | :06:36. | |
absolutely no growth at all in the third quarter. If we look at | :06:36. | :06:41. | |
Germany, this is even more worrying, they will reveal growth slowing to | :06:41. | :06:47. | |
just 0.2%. Not surprisingly the data is expected to confirm further | :06:47. | :06:54. | |
contentions for the economies of Italy and Spain. We go to a senior | :06:54. | :07:02. | |
economist from Brussels. Are you are in agreement with those | :07:02. | :07:06. | |
figures? Some economists believe the figures will be a lot worse in | :07:06. | :07:12. | |
the third quarter than what I have just spelled out. I more or less | :07:12. | :07:16. | |
agree with the figures. The risk is there that they could get worse. | :07:16. | :07:20. | |
The hall fear is the German economy remains rather stable and issued | :07:20. | :07:24. | |
help the eurozone as a whole to mask the enormous slump in the | :07:24. | :07:31. | |
southern countries. Your outlook, because this week we were focused | :07:31. | :07:34. | |
on Greece with their budgets creeping through the night before | :07:34. | :07:38. | |
in the Parliament. The year ahead for the eurozone will be very | :07:38. | :07:48. | |
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difficult, won't it? Obviously the year ahead will be a tough one. In | :07:48. | :07:50. | |
the know at near-term it will probably get worse before it gets | :07:50. | :07:58. | |
better. The German economy could enter a period of contraction | :07:58. | :08:01. | |
towards the end of the year. This means that the eurozone economy | :08:01. | :08:04. | |
will probably and the rebound in the first half of next year at the | :08:04. | :08:09. | |
earliest. This puts enormous pressure on the reform agenda and | :08:09. | :08:14. | |
also on the elections. A are you optimistic or you pessimistic about | :08:14. | :08:20. | |
the outlook? Clearly we have the difficult year ahead and also, with | :08:20. | :08:23. | |
Greece, they have more time and therefore there is a whole | :08:23. | :08:32. | |
discussion going on about debt restructuring for Greece. I think | :08:32. | :08:36. | |
I'm moderately pessimistic. The worst-case scenario, Greece leaving | :08:36. | :08:40. | |
the eurozone or even a break-up of the eurozone, this has been | :08:40. | :08:44. | |
abolished. It means the eurozone will stick together, but at the | :08:44. | :08:49. | |
same time, the reforms that are undertaken in all countries, the | :08:49. | :08:53. | |
slowdown of the global economy, means that the will remain in a | :08:53. | :08:58. | |
very difficult economic environment, therefore growth will not return | :08:58. | :09:02. | |
any time soon, but the worst case is the break-up and that will not | :09:02. | :09:07. | |
happen. Most people would agree with you. When do you think we | :09:07. | :09:12. | |
might see some sort of turning point when it comes to the | :09:12. | :09:22. | |
following eurozone data as a region? And 2013. All we will still | :09:22. | :09:25. | |
need some time to see the structural reforms. Any country | :09:25. | :09:30. | |
like Spain will show some positive signs. At the same time, if the US | :09:30. | :09:34. | |
and Chinese economies would be able to pick up again in the first half | :09:34. | :09:39. | |
of the year, then Germany could benefit and there should also help | :09:39. | :09:43. | |
stabilise the eurozone economy. There is some hope, but in terms of | :09:43. | :09:52. | |
domestic developments, it is hard to see the eurozone countries | :09:52. | :09:57. | |
growing again any time soon. We have third-quarter earnings | :09:57. | :10:03. | |
results coming through, continuing in the US. We will hear from Wal- | :10:03. | :10:10. | |
Mart today. Wall Street is expecting better profits because of | :10:10. | :10:16. | |
a rush of sales on the east coast. It may also give an update on the | :10:16. | :10:26. | |
:10:26. | :10:26. | ||
plus the -- cost of its ongoing investigation into foreign bribery. | :10:26. | :10:30. | |
Results from Dell. The once dominant PC maker is focusing on | :10:30. | :10:34. | |
large corporate customers. The enterprise market. Wall Street will | :10:34. | :10:39. | |
be looking at how hard the PC industry is being hit by the rise | :10:39. | :10:43. | |
of tabloid computers. The markets are quite mixed, as you | :10:43. | :10:47. | |
can see. Japan bucking the trend. Elsewhere we are seeing a bit of a | :10:47. | :10:54. | |
mixed picture emerging. If we take a look at the currencies quickly. | :10:54. | :11:02. |