22/01/2013

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:00:04. > :00:14.unveils earnings. And Japan unveils its most

:00:14. > :00:18.

:00:18. > :00:22.determined way to beat use of The Bank of Japan has unveiled its

:00:22. > :00:28.most determined effort yet to beat years of economic stagnation,

:00:28. > :00:32.doubling its inflation target to 2%. That move was widely expected, but

:00:32. > :00:35.markets were a bit surprised by an open ended as it buying programme.

:00:35. > :00:39.The bank also lifted its growth forecast for the country's economy

:00:39. > :00:43.in the fiscal year starting in March. A glimmer of positive news

:00:43. > :00:49.as the country's troubles to cement a recovery. The Bank of Japan said

:00:49. > :00:57.it now expects Japan's gross domestic product to expand by 2.3%

:00:58. > :01:01.in the year ending in 20th March 14. That is enough for -- March, 2014.

:01:01. > :01:06.We are joined by our correspondent in Tokyo. Wodge of -- much of what

:01:06. > :01:09.came out of this meeting was widely expected, apart from this open

:01:09. > :01:16.ended asset purchase programme. What has the reaction it been in

:01:16. > :01:21.Japan? I think the Government will be extremely pleased by what the

:01:21. > :01:31.Bank of Japan has announced because the new Prime Minister has execs

:01:31. > :01:32.

:01:32. > :01:36.chilling -- essentially got and what he wanted. The response from

:01:36. > :01:41.the market has already been quite positive on this. We had seen the

:01:41. > :01:47.Nikkei slowly up the day, up around 0.6%. All readily we have seen a

:01:47. > :01:50.slight weakening of the yen, down to about 89.7 to the US dollar.

:01:50. > :01:55.Some market specialists and market analysts are predicting that the

:01:56. > :02:03.end, on the back of this, will fall to around 95. These are all

:02:03. > :02:10.positive things. Japan's economy will hopefully be helped by this.

:02:10. > :02:14.Exporters being able to export more and more money in the system.

:02:14. > :02:19.talk about exporting, because obviously it is the downturn in

:02:19. > :02:28.exporting that has urged Japan recently. -- her to Japan. Also

:02:28. > :02:32.political problems with China has impacted exports. Also, there is

:02:32. > :02:42.the suggestion that this raising of inflation might be a political tool

:02:42. > :02:43.

:02:43. > :02:47.by way of dumping cheaper goods. That is right. If you print more

:02:47. > :02:51.money and you trumpet into eurozone economy, the result in the end is

:02:51. > :02:57.that you will push your -- you will artificially pushed down the value

:02:57. > :03:04.of your currency. That is exactly what is happening. Exporters were

:03:04. > :03:07.complaining loudly when Jan -- the yen reached 75 to the US dollar.

:03:07. > :03:09.The Japanese exporters were squealing that this was killing

:03:09. > :03:16.their products and making them unable to sell their products

:03:16. > :03:19.around the world. They will be very happy at the weakening of the yen.

:03:19. > :03:23.There are other people who say it is nothing really to do with the

:03:23. > :03:28.value of the yen, it is the fact that the European economies and

:03:28. > :03:38.more recently China have not been buying Japanese products. That is

:03:38. > :03:40.

:03:40. > :03:44.Apologies for the slight technical issues with the audio.

:03:44. > :03:49.For years the world's biggest search engine, Google, increase its

:03:49. > :03:54.revenues by 20% every quarter. Last year, for the first time, it

:03:55. > :04:00.faltered, increasing its takings by a near 19% in the summer of 2012.

:04:00. > :04:05.Today Google announced its results for the final quarter. Can it get

:04:05. > :04:14.back to 20% growth or not? Among the problem it faces is the trend

:04:14. > :04:18.towards mergers on mobile phones and competition from other websites.

:04:18. > :04:22.This is one of the company's latest innovations. It uses its own

:04:22. > :04:25.database of 100 billion searches per month to give users information

:04:25. > :04:30.at the time they needed. The trouble is that more people are

:04:30. > :04:35.using search engines on. This mean users spend less time on Google and

:04:35. > :04:40.there is less space on the screen to advertise. In other words, less

:04:40. > :04:46.chance to make money. If you combine these two factors, anybody

:04:47. > :04:56.who's going to try to monetise advertising on mobile will find

:04:57. > :04:58.

:04:58. > :05:02.that they are going to be able to Google also faces competition from

:05:02. > :05:08.people using favourite websites that to do the searching for them.

:05:08. > :05:13.For example, Facebook last week launched its new search engine

:05:13. > :05:21.called Graph Search. For example, it asks for people who like cycling

:05:21. > :05:28.and you can search the database. Could Google start to lose market

:05:28. > :05:32.share two sides like Facebook? Facebook is right at the beginning

:05:32. > :05:38.of this journey. Facebook is going to face a long uphill struggle to

:05:38. > :05:41.take this Sirte product to market by for consumers and advertisers.

:05:41. > :05:46.Successful Facebook is a long way off. It in the meantime Google has

:05:46. > :05:51.found an important new surge at -- source of income. Product searches

:05:51. > :05:56.where retailers played -- paid Google if the search results in a

:05:56. > :06:03.sale. On top of that, Google has around a 97% share in the world

:06:03. > :06:06.market of searches. As yet it has no real competition.

:06:06. > :06:11.Now, the International Labour Organisation has released its

:06:11. > :06:15.global employment trends report for 2013. It makes for grim reading.

:06:15. > :06:21.Since the global financial crisis, global growth as decelerated and

:06:21. > :06:25.unemployment has started to increase again. And in Kew there is

:06:25. > :06:31.an -- there is an accumulated total of 197 million people without a job

:06:31. > :06:36.in 2012. The unemployment rate is set to increase in 2013. The number

:06:36. > :06:45.of unemployed worldwide is projected to rise by 5.1 million in

:06:46. > :06:52.2013. Then, by a further 3 million in 2014 to a shocking total of 205

:06:52. > :06:55.million. We are joined by the director of

:06:55. > :07:00.economics and a liver analyst at the International Labour

:07:00. > :07:07.Organisation. He joins me live now. This does make for rather grim

:07:07. > :07:11.reading, doesn't it? Yes, it certainly does. Not the best way to

:07:11. > :07:17.start the morning, but as you said the numbers are very disturbing.

:07:17. > :07:24.This year alone, in 2012, they will have been an increase of 4.2

:07:24. > :07:28.million jobs lost. A large part of that, 25%, is in the advanced

:07:28. > :07:35.economies. There is a massive spill over to the developing economies.

:07:35. > :07:38.They will have been in increasing - - and increase of one million each

:07:38. > :07:45.in the poorer market. Certainly the engines of growth are not moving

:07:45. > :07:50.the labour market in the right direction at all. So, what is your

:07:50. > :07:55.solution, if you like? You say that things are set to not really get

:07:55. > :08:02.much better at all in 2013? problem is that at the moment the

:08:02. > :08:06.global economy - there are a number of negative feedback loops shooting

:08:06. > :08:11.into the labour market. Consumers are not spending, so households are

:08:11. > :08:15.not spending, firms are not investing sufficiently, banks are

:08:15. > :08:20.not lending sufficiently and therefore there is a weakness of

:08:20. > :08:23.aggregate demand. Then on top of the lack of aggro than it -- lack

:08:23. > :08:30.of aggregate demand and weakening markets, we have a series of

:08:30. > :08:35.austerity programmes which are not helping growth of output and

:08:35. > :08:40.employment at all. And, what we would like to do is see if they can

:08:40. > :08:44.be some short-term stimulus, because at the moment all the

:08:44. > :08:50.austerity programmes are hitting employment with wage and employment

:08:50. > :08:56.cuts. Therefore, we need to break this negative feedback loop and get

:08:56. > :09:06.back to some short-term stimulus and come back to balancing in the

:09:06. > :09:07.

:09:08. > :09:12.Let's have a quick look at how markets are doing this morning. In

:09:12. > :09:19.Asia we can see that off the back of that today Bank of Japan meeting