28/12/2012 World Business Report

Hello and welcome to World Business Report. I'm Alice Baxter. The

headlines: headlines: ut of time to avoid a budget crisis. American

politicians politicians to reach a deal on the country's spending

After 20 years at the top, Ratan Tata, head of India's biggest

company, st company, st We look at his legacy. The owner of the Fukushima

nuclear power plant is sued over radiation exposure.

but death and taxes. In America, you might also add political stand

as liff, as it has become known, is about

Democrats and Republicans reaching a deal on tax hikes and spending

cuts that will automatically kick in on 1st January. They have known

about it for years but the talks are going down to the wire.

President Obama will meet some of the key congressional figures today.

The leader of the Democratic Party majority in the United States

Senate, Harry Reid, says politicians are running out of time

to avoid a budget crisis. It is the countdown to midnight. The start of

a new year. But this year, the American people are waiting for the

be a good -- ball to drop but it Next year, Americans will have less

then this year. We are coming up against a hard deadline. This is a

conversation we should have had months ago. Republicans are not

about to write a blank cheque for anything Senate Democrats put

forward, just before -- because we fiscalthe

fairt be fair to the American people. That,

having been said, we will see what the President has to propose

Fulstow and then we will decide how to best proceed.

Ben Thompson looks at the options from the floor of the New York

Stock Exchange. On Thursday, the early optimism on the market gave

way to concern that a deal would not be reached and America's

economy will after all tip-off the sides are blaming each other for

failing to agree a deal and the battle lines are drawn between the

Republicans and the Democrats. So, what actually happens if lawmakers

failed to come to the table? The deadline means automatic spending

cuts and tax rises will come into force and that could cost the

average American 3.5 -- family about $3,500, which could plunge

the economy back into recession. But that is the worst case scenario.

The markets expect a deal to be done in the early part of next year.

In the short-term, that could limit economic damage, meaning firms

would continue to invest and hire new staff and consumers would still

be up their spending. But critics say this is now more about politics

than it is about what is best for America's economy. Both sides are

trying to gain political points from this whole debate. Reaching a

necessary for political sacrifice Ratan Tata is one of India's most

internationally recognised business leaders. Today he is stepping down

as the chairman of Tata after more than two de than two deroup.

It is the largest business in the country, with a history that spans

more than a century. Taking over from him is the relatively unknown

Cyrus Mistry. We have been finding out what Ratan Tata's legacy will

He has been in the driver's seat for more than two decades. Rutten

carter - the head of India's biggest business house. -- return

Tata. It 14 global recognition. Established 144 years ago, the

company was steered by one of India's most respected business

tycoons. It is now India's largest conglomerate, with over 100

companies, ranging from steel to cars, Telecoms, retail and even tea.

economy economy was liberalised, giving him

an opportunity to expand abroad. went all over the world. He set up

camp was in China, canvases in the US, he poured cement companies in

Singapore, and he set up in Europe. acquired a UK company and it was

the biggest acquisition by a UK -- and Indian firm. It became a bigger

national issue than we ever felt it would be. Deep down in my heart, I

felt that if we lost, it would not just the ass that would be sad. sad.

There would be great disappointment in India. -- just us. I had a big

responsibility to my country. This It se.

It has not been financial success only. The company has been credited

with turning around one luxury car maker, which it took over in 2008.

There is a general respect for the brand in India. And his -- he has

upheld its legacy. He has often shied away from the media but he

said to love driving cars in his spare time, which he plans to

pursue in retirement. His successor is the lesser known Cyrus Mistry

and he would be put to test almost immediately, taking over when both

the Indian and global economies are Reports that US sailors are suing

Japan's Tokyo Electric Power Company are emerging. They claim

the company did not tell them the true extent of the radiation

exposure. Mariko Oi has been following the story.

What do you have on this? As you say, As you say, case

at the US federal court in San Diego. The date was 21st December.

We are just starting to see the reports. They were involved in

relief operations after the last year. But they say Tepco, the

owner of the nuclear power plant, lied about the dangers level of

radiation and as a result they were exposed. There are no details about

how much they were exposed to but they are all seeking $10 million

each for damages and they what the company to set up a $100 million

fund for their mediceir medic call Tepco for their comment. The

company says it acknowledges the lawsuit but they have not received

the written the written comment yet.

And Tepco shares have been doing well. Tell us why.

Despite all of this -- these compensation claims, the shares

have been doing well because investors that the new government

under Shinzo Abe will allow the company to company to ome of its

nuclear reactors. Tepco has repeatedly said it needs to restart

some of its reactors in order to start making money. But of course

only two out of 15 are in operation. They are not operated by Tepco. The

government has been quite vague on what they will do about nuclear.

One minister said having zero nuclear energy was impossible,

while others say they will spend three years to decide how to phase

out of nuclear. But if you look at how investors are reacting, they

are betting the new government will The software company HP says that

American authorities are now investigating its purchase of

Britain's Autonomy. HP bought the British firm back in 2011 and a

couple of months ago accused the company of inflating its books.

Autonomy has firmly denied this. The UK's Serious Fraud Office is

already investigating the deal. Hopes have dimmed that 350,000

Spanish retail investors will get their money back from the failed

bank Bankia. A government report said the lender had a negative

value because of huge losses on bad loans. It is valued at -$5.6

billion. The bailed out bank only started trading last year and the

shares were bought largely by ordinary Sp ordinary Sp big

investment funds. The boss of Apple, Tim Cook, will

take home just 1% of what he earned last year. In a regulatory filing,

the company behind the iPhone and iPad said he would get a salary of

million. The previous year, he earned $378 million, mostly from