:00:06. > :00:16.which appeared to suppress dissent. Those are the headlines. Now it is
:00:16. > :00:19.
:00:19. > :00:24.Hello, everybody. Welcome to the programme. Your chance to catch up
:00:24. > :00:28.on all the latest in the world of business and money. The headlines:
:00:28. > :00:33.Barack Obama and Republican leaders tried to break the deadlock over
:00:33. > :00:40.tax and spending that could spell disaster for the US.
:00:40. > :00:47.In Asia, Japan averts a fiscal cliff as it passes a crucial bill.
:00:47. > :00:57.Plus IT and the Stasi prisons. The Swedish furniture giant addressees
:00:57. > :01:01.
:01:01. > :01:05.claims it used forced labour in Let's talk about the US a first.
:01:06. > :01:11.Barack Obama meets with congressional leaders later for the
:01:11. > :01:16.first time since the election. Topping the agenda, attempts to
:01:16. > :01:21.break the deadlock over the budget. The fear is that without a deal,
:01:21. > :01:27.the US economy will fall of a fiscal cliff. We are talking about
:01:27. > :01:31.tax cuts and government spending. They will expire on 31st December.
:01:31. > :01:38.The billions of dollars will be taking out of the economy if they
:01:38. > :01:44.are not replaced. The US could lose more than 2 million jobs. GDP could
:01:44. > :01:50.be cut by 0.5 %. The country could be pushed into recession. It is
:01:50. > :01:55.taking its toll on businesses. This report from New York.
:01:55. > :02:00.Upstate New York, they are assembling parts for planes here.
:02:00. > :02:05.Both for commercial planes and military, it takes precision
:02:05. > :02:09.unskilled work. Manufacturing has all but disappeared here. This firm
:02:09. > :02:16.has created much-needed jobs. Despite the recession, business is
:02:16. > :02:21.good. Around 90 people work here, from all the local area. It wants
:02:21. > :02:24.to expand more. The firm is worried about the future. It has been
:02:24. > :02:32.putting off big investment decisions over the concern as to
:02:32. > :02:34.what the next few weeks could bring. By this man told me that the
:02:34. > :02:38.uncertainty has taken its toll already.
:02:38. > :02:45.The US Air Force is one of his biggest customers. The package of
:02:45. > :02:54.tax rises and spending cuts include a big reduction in defence spending.
:02:54. > :03:01.That would be hit business here. In terms of buying new equipment, we
:03:01. > :03:05.have had discussions with key staff. Leigh have to wait and see. We must
:03:05. > :03:11.wait until this situation is resolved. Then begin make a
:03:11. > :03:17.decision about how much equipment we buy. -- we can make. Many firms
:03:17. > :03:22.are sitting on cash reserves across America. They're waiting for
:03:22. > :03:29.direction as to when and where to invest it. Will lawmakers reach a
:03:29. > :03:35.deal? Will the economy fall over the edge? We will get a compromise.
:03:35. > :03:40.We will get a temporary solution to the most important items. We will
:03:40. > :03:45.not hit an extreme form of fiscal cliff. That will buy some time to
:03:45. > :03:50.negotiate a more comprehensive agreement. That is little help for
:03:50. > :03:58.this form. It may get past the deadline but it does not do much to
:03:58. > :04:08.inspire confidence. We are at their mercy of Washington. Hopefully they
:04:08. > :04:08.
:04:08. > :04:17.will do the right thing. Those concerns about the fiscal clef have
:04:17. > :04:22.been affecting investors' minds for days now. -- fiscal cliff. The
:04:22. > :04:28.markets are calling this the wall of worry. Is there really a belief
:04:28. > :04:32.that Kong this will not get to an agreement? -- Congress. The
:04:32. > :04:37.expectation is that they will. We have seen many times that when
:04:37. > :04:42.there is a deadline, whether it is extending the debt ceiling or
:04:42. > :04:46.whatever, and they eventually reach an agreement. The market is jittery
:04:46. > :04:51.at the moment. Until the election was out the way, markets when
:04:51. > :04:56.thinking about it. Now that has happened we are focused on it. Is
:04:56. > :05:01.it a valid point that something has to be done? The numbers are
:05:01. > :05:06.staggering. The US deficit has topped one trillion dollars of the
:05:06. > :05:11.year. The US government has been spending one trillion dollars more
:05:11. > :05:18.than what it Aaron's. It is a dinner 16.2 trillion dollars of
:05:18. > :05:26.debt. -- more than it earns. It is sitting and 16.2 trillion dollars.
:05:26. > :05:32.The markets will think that they have to get a grip on this. The US
:05:32. > :05:40.is not as bad as Europe. The economy is still struggling. The
:05:40. > :05:47.problem is being pushed down the road. We are taking the old tin can.
:05:47. > :05:54.Thank you. We will talk to you later of when we look at the
:05:54. > :05:58.International newspapers. Japan has dealt with its own budget crisis.
:05:58. > :06:04.There was a huge bond issue to help pay for government spending next
:06:04. > :06:12.year. The opposition were demanding early elections as a condition of
:06:12. > :06:17.their support. Great to see you. Just in the nick of time, right?
:06:17. > :06:22.That is right. As with most political things, the lawmakers
:06:22. > :06:26.here have approved the crucial build. That ensures the Government
:06:26. > :06:30.does not run out of money at the end of this month. This Bill will
:06:30. > :06:35.allow the Government to borrow additional money by selling bonds
:06:35. > :06:42.to pay for a large chunk of its expenses. The approval is helping
:06:42. > :06:48.to lift markets. The only one in the region making gains. The
:06:48. > :06:52.opposition had previously stalled the bill, demanding elections first.
:06:52. > :06:56.The Prime Minister has already done that. He indicated on Wednesday
:06:56. > :07:01.that he was ready to dissolve parliament and hold snap elections.
:07:01. > :07:07.He is expected to make a formal announcement any time soon,
:07:07. > :07:14.possibly later today. This comes as fears mount that the economy may be
:07:14. > :07:19.heading towards recession. There is a warning that the economy is
:07:19. > :07:23.showing signs of weakness. There are concerns about the health of
:07:23. > :07:31.the third largest economy in the world. Production has fallen.
:07:31. > :07:35.Exports remain weak. This is due to slowing global demand.
:07:35. > :07:39.One fiscal Cliff a verdict, all eyes on the US.
:07:39. > :07:44.That you for joining us from Singapore.
:07:44. > :07:50.Moving on, Swedish furniture chain IKEA will publish a report later
:07:50. > :07:54.today into allegations that it used forced labour by East German
:07:54. > :08:02.political prisoners due in the 1970s and 1980s. Members of the
:08:02. > :08:11.Stasi police say they were made to force people to walk on furniture.
:08:11. > :08:16.-- work. Let get more. This is a Stasi political prisoner. There are
:08:16. > :08:21.102 cells here. Some of them had more than one occupant. They were
:08:21. > :08:27.political prisoners. It is a pretty bleak place. In the floor below, an
:08:27. > :08:33.isolation cell where light is kept out and sound is kept out. Complete
:08:33. > :08:38.silence and darkness to break people's minds. The allegation is
:08:38. > :08:42.that IKEA, by giving contracts to make furniture to the East German
:08:42. > :08:47.government, benefited from the labour of these people. These
:08:47. > :08:54.political prisoners would work in prison workshops. That work then
:08:54. > :09:01.benefited IKEA. So runs the allegation. Act here had contacts
:09:01. > :09:05.to produce the forager here. -- IKEA. They did not ask he was
:09:06. > :09:09.producing the furniture. They did not ask about the conditions. That
:09:09. > :09:13.means you are responsible for who you are dealing with. If you are
:09:13. > :09:17.dealing with the dictatorship and you do not have a look at the
:09:18. > :09:23.conditions that your furniture, for example, is produced in, you are
:09:23. > :09:27.responsible. It must be said that IKEA a denies the allegation.
:09:27. > :09:32.They'd take it so seriously that they have got an outside firm of
:09:32. > :09:37.accountants to investigate the matter. If those outsiders say that
:09:37. > :09:42.I t a had nothing to do with what the prisoners dead and no knowledge
:09:42. > :09:47.of who was fulfilling the contracts, but maybe the end of the matter. --
:09:47. > :09:50.IKEA had nothing to do with what the prisoners did. If they say that
:09:50. > :09:54.IKEA should have known the conditions of the workers
:09:54. > :09:58.fulfilling a contract, the people in these cells may get their
:09:58. > :10:04.lawyers into action. They will expect compensation.
:10:04. > :10:11.We will keep a cross that story. The Nikkei is up to present. They