22/01/2013 World Business Report

unveils earnings. And Japan unveils its most

determined way to beat use of The Bank of Japan has unveiled its

most determined effort yet to beat years of economic stagnation,

doubling its inflation target to 2%. That move was widely expected, but

markets were a bit surprised by an open ended as it buying programme.

The bank also lifted its growth forecast for the country's economy

in the fiscal year starting in March. A glimmer of positive news

as the country's troubles to cement a recovery. The Bank of Japan said

it now expects Japan's gross domestic product to expand by 2.3%

in the year ending in 20th March 14. That is enough for -- March, 2014.

We are joined by our correspondent in Tokyo. Wodge of -- much of what

came out of this meeting was widely expected, apart from this open

ended asset purchase programme. What has the reaction it been in

Japan? I think the Government will be extremely pleased by what the

Bank of Japan has announced because the new Prime Minister has execs

chilling -- essentially got and what he wanted. The response from

the market has already been quite positive on this. We had seen the

Nikkei slowly up the day, up around 0.6%. All readily we have seen a

slight weakening of the yen, down to about 89.7 to the US dollar.

Some market specialists and market analysts are predicting that the

end, on the back of this, will fall to around 95. These are all

positive things. Japan's economy will hopefully be helped by this.

Exporters being able to export more and more money in the system.

talk about exporting, because obviously it is the downturn in

exporting that has urged Japan recently. -- her to Japan. Also

political problems with China has impacted exports. Also, there is

the suggestion that this raising of inflation might be a political tool

by way of dumping cheaper goods. That is right. If you print more

money and you trumpet into eurozone economy, the result in the end is

that you will push your -- you will artificially pushed down the value

of your currency. That is exactly what is happening. Exporters were

complaining loudly when Jan -- the yen reached 75 to the US dollar.

The Japanese exporters were squealing that this was killing

their products and making them unable to sell their products

around the world. They will be very happy at the weakening of the yen.

There are other people who say it is nothing really to do with the

value of the yen, it is the fact that the European economies and

more recently China have not been buying Japanese products. That is

Apologies for the slight technical issues with the audio.

For years the world's biggest search engine, Google, increase its

revenues by 20% every quarter. Last year, for the first time, it

faltered, increasing its takings by a near 19% in the summer of 2012.

Today Google announced its results for the final quarter. Can it get

back to 20% growth or not? Among the problem it faces is the trend

towards mergers on mobile phones and competition from other websites.

This is one of the company's latest innovations. It uses its own

database of 100 billion searches per month to give users information

at the time they needed. The trouble is that more people are

using search engines on. This mean users spend less time on Google and

there is less space on the screen to advertise. In other words, less

chance to make money. If you combine these two factors, anybody

who's going to try to monetise advertising on mobile will find

that they are going to be able to Google also faces competition from

people using favourite websites that to do the searching for them.

For example, Facebook last week launched its new search engine

called Graph Search. For example, it asks for people who like cycling

and you can search the database. Could Google start to lose market

share two sides like Facebook? Facebook is right at the beginning

of this journey. Facebook is going to face a long uphill struggle to

take this Sirte product to market by for consumers and advertisers.

Successful Facebook is a long way off. It in the meantime Google has

found an important new surge at -- source of income. Product searches

where retailers played -- paid Google if the search results in a

sale. On top of that, Google has around a 97% share in the world

market of searches. As yet it has no real competition.

Now, the International Labour Organisation has released its

global employment trends report for 2013. It makes for grim reading.

Since the global financial crisis, global growth as decelerated and

unemployment has started to increase again. And in Kew there is

an -- there is an accumulated total of 197 million people without a job

in 2012. The unemployment rate is set to increase in 2013. The number

of unemployed worldwide is projected to rise by 5.1 million in

2013. Then, by a further 3 million in 2014 to a shocking total of 205

million. We are joined by the director of

economics and a liver analyst at the International Labour

Organisation. He joins me live now. This does make for rather grim

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

start the morning, but as you said the numbers are very disturbing.

This year alone, in 2012, they will have been an increase of 4.2

million jobs lost. A large part of that, 25%, is in the advanced

economies. There is a massive spill over to the developing economies.

They will have been in increasing - - and increase of one million each

in the poorer market. Certainly the engines of growth are not moving

the labour market in the right direction at all. So, what is your

solution, if you like? You say that things are set to not really get

much better at all in 2013? problem is that at the moment the

global economy - there are a number of negative feedback loops shooting

into the labour market. Consumers are not spending, so households are

not spending, firms are not investing sufficiently, banks are

not lending sufficiently and therefore there is a weakness of

aggregate demand. Then on top of the lack of aggro than it -- lack

of aggregate demand and weakening markets, we have a series of

austerity programmes which are not helping growth of output and

employment at all. And, what we would like to do is see if they can

be some short-term stimulus, because at the moment all the

austerity programmes are hitting employment with wage and employment

cuts. Therefore, we need to break this negative feedback loop and get

back to some short-term stimulus and come back to balancing in the

Let's have a quick look at how markets are doing this morning. In

Asia we can see that off the back of that today Bank of Japan meeting