03/12/2012

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:00:02. > :00:05.Twitter and open a personal account. He wants to use Twitter to spread

:00:05. > :00:08.the message of the Roman Catholic Church. But a spokesman said the 85

:00:08. > :00:11.year-old Pontiff is unlikely to actually tweet himself as he

:00:11. > :00:18.prefers writing in long hand. Those are the latest headlines from BBC

:00:18. > :00:22.World News. Now for the latest financial news with Aaron. Welcome

:00:22. > :00:25.to the programme, your chance to catch up with the latest in the

:00:25. > :00:32.world of business and money. Let's take a look at the headlines: Who's

:00:32. > :00:37.next in the bail-out club? It's Cyprus. Eurozone officials gather

:00:37. > :00:47.today to work out the details for the island's $23 billion rescue. In

:00:47. > :00:47.

:00:47. > :00:53.China the PMI survey says there is a recovery. There are some issues

:00:53. > :01:03.if expansion is to be sustained. How Superstorm Sandy has set car

:01:03. > :01:05.

:01:05. > :01:15.sales in the US booming. We will talk about those expected

:01:15. > :01:16.

:01:16. > :01:22.US car sales in a short time. The eurozone finance ministers meet

:01:22. > :01:25.again today. With Greece's problems behind them for now, they're due to

:01:25. > :01:28.turn their attention to the next country in need of a bail-out,

:01:28. > :01:31.Cyprus. Two weeks ago Cyprus said it had asked for a bail-out,

:01:31. > :01:37.possibly as much as 17.5 billion euros, that's $23 billion, more or

:01:37. > :01:39.less equivalent to its GDP. In a nutshell we're talking about a

:01:39. > :01:43.bail-out that's equivalent to everything the island makes,

:01:43. > :01:52.produces and sells in a year. The Euro Group wants to know what the

:01:52. > :01:55.outlook is for debt sustainability. The international investment firm

:01:55. > :01:59.PIMCO is currently carrying out an audit of the Cypriot banking system

:01:59. > :02:02.and any deal will involve a large re-capitalisation of Cypriot banks.

:02:02. > :02:06.The question is, what will the price be that Cypriots have to pay

:02:07. > :02:13.and are their politicians committed to delivering reforms? Joining us

:02:13. > :02:21.through Skype is Fiona Mullen, Director of Sapienta Economics.

:02:21. > :02:31.I want to talk about it priced at a very shot late. Cyprus, white

:02:31. > :02:35.

:02:35. > :02:41.designate a bail-out in the first place? -- price to pay very shortly.

:02:41. > :02:46.Three-quarters of the great government debt was written off. --

:02:46. > :02:51.Greek. That blow a hole in their balance sheets. They did not have

:02:51. > :02:58.the money to fill it up, neither did the government, so they have

:02:58. > :03:02.had to go to the eurozone. There have been murmurings about Cyprus

:03:02. > :03:10.needing a bail-out, but it has taken some time. They have not

:03:10. > :03:16.wanted to go down that path. They have been asking for money from

:03:16. > :03:26.Russia and China, haven't they? indeed. The President has tried

:03:26. > :03:34.

:03:34. > :03:41.everything to not signed this deal. Presidential elections in February.

:03:41. > :03:46.-- sign. It is not going to be good for his party. There is an

:03:46. > :03:53.ideological issue here, he is a communist. He did not want to be

:03:53. > :04:01.seen to be signing a deal with people like the IMF. We know any

:04:01. > :04:08.bail-out comes with tough measures and conditions, what is the price?

:04:08. > :04:14.The public sector will see a range of salary cuts. Depending on how

:04:14. > :04:24.much you earn you will have a bigger cut. We will not have cuts

:04:24. > :04:25.

:04:25. > :04:31.in headcount so far. Not quite as bad as Greece. Tax rises in tobacco,

:04:31. > :04:38.alcohol etc. The main cut will be on public sector workers. They will

:04:38. > :04:48.have to contribute more to their pensions. Great stuff. Thank you.

:04:48. > :04:50.

:04:50. > :04:53.We will talk to you again some time. In the US the devastation wrought

:04:53. > :04:58.by Hurricane Sandy has pushed up demand for new cars as those

:04:58. > :05:00.affected head to showrooms to replace their flooded cars.

:05:00. > :05:03.November's sales figures should reflect this when they come out

:05:03. > :05:10.later this Monday. It's providing a welcome boost to the recovering US

:05:10. > :05:15.car industry. New York's Staten Island, life

:05:15. > :05:25.after Hurricane Sandy is still a work in progress. Cars damaged by

:05:25. > :05:26.

:05:26. > :05:31.salt water, as nature left them. His firm pays cash for flooded cars,

:05:31. > :05:41.giving the owners the value of scrap metal miners vetoing fee.

:05:41. > :05:43.

:05:43. > :05:49.This is a 98. -- minus the towing fee. A lot of people get emotional.

:05:49. > :05:59.It was their prized possession. Sharon's have been swamped, by as

:05:59. > :06:09.replacing cars destroyed by Hurricane Sandy. -- showrooms.

:06:09. > :06:10.

:06:10. > :06:16.have been working non-stop tour of hours -- 12 hours a day. Even in

:06:16. > :06:22.the short period we have been here, a customer has come in looking to

:06:22. > :06:27.replace her car or flooded during Hurricane Sandy. This is helping to

:06:27. > :06:33.boost sales. When you factor in November data, car sales for this

:06:33. > :06:38.year could top 15 million. Hurricane Sandy is going to help

:06:38. > :06:45.drive demand higher than we normally would see. There is just

:06:45. > :06:54.the underlying US recovery. Consumer confidence is improving

:06:54. > :07:04.that is going to push people into vehicles. The extra demand for new

:07:04. > :07:04.

:07:04. > :07:14.vehicles may last into the new year. Let's go to Singapore. Good to see

:07:14. > :07:24.

:07:24. > :07:26.it. -- you. Let's talk Chinese manufacturing. We have PMI numbers,

:07:26. > :07:30.the purchasing managers' index. This is where they survey the

:07:30. > :07:37.managers that sit at the top of the manufacturing chain. They are

:07:37. > :07:47.feeling rather positive? Yes, they are positive. They are churning out

:07:47. > :07:49.

:07:49. > :07:57.more machines. PMI is coming in at 50.6. HSBC's figures showing an

:07:57. > :08:03.expansion. 50.5 in November from 49.5 in October. To give you an

:08:03. > :08:07.explanation, a reading below 50 suggests growth has slowed down. A

:08:07. > :08:13.number above 50 indicates an acceleration. Growth accelerated

:08:13. > :08:22.for larger companies for a third straight month, but medium and

:08:22. > :08:27.small scale company saw a retrenchment. -- companies. You

:08:27. > :08:31.have to look at these numbers with a grain of salt. Improving numbers

:08:31. > :08:41.are because of government investment. Easy credit to

:08:41. > :08:42.

:08:42. > :08:48.infrastructure project. A lack of dynamism in China's economy is

:08:48. > :08:55.impacting the him my number. Overall, the economy has improved

:08:55. > :09:05.in November. -- PMI number. Pro- growth policies are starting to

:09:05. > :09:15.gain traction. We hope this will be sustained

:09:15. > :09:18.

:09:18. > :09:21.going into 2013. Some other stories making headlines: News

:09:21. > :09:23.International chief executive Tom Mockridge will leave his role at

:09:23. > :09:26.the end of December News Corporation has announced. Mr

:09:26. > :09:28.Mockridge, who replaced Rebekah Brooks in July 2011, is stepping

:09:28. > :09:30.down to pursue outside opportunities. Rupert Murdoch,

:09:30. > :09:32.chairman and chief executive of News Corporation, said Mr

:09:32. > :09:36.Mockridge's decision was absolutely and entirely his own. Singapore

:09:36. > :09:39.Airlines said it is in talks to sell its 49% stake in Virgin

:09:39. > :09:41.Atlantic. Several news agencies are reporting that Delta Airlines is

:09:41. > :09:50.the interested party according to unnamed sources. Billionaire

:09:50. > :09:52.Richard Branson holds a controlling 51% of Virgin. A partnership with