Browse content similar to 05/02/2013. Check below for episodes and series from the same categories and more!
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Those are the latest headlines. It is now time for the latest | :00:03. | :00:13. | |
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financial news with the World The US government says it will soon | :00:22. | :00:25. | |
credit rating agency Standard and Poor's for its part in the global | :00:25. | :00:31. | |
financial crisis. Two years on from the Gulf of Mexico will spell, B P | :00:31. | :00:35. | |
shows that it is still paying the price for the disaster. It is | :00:35. | :00:45. | |
:00:45. | :00:46. | ||
expected to announce a slump in profits. Hello and welcome, this is | :00:46. | :00:51. | |
World Business Report. We are also taking a look at Toyota's latest | :00:51. | :00:55. | |
profits news as it reclaimed the title of world's biggest seller of | :00:55. | :01:00. | |
cars. Five years on from the financial | :01:00. | :01:04. | |
crash that triggered a global recession, credit ratings agencies | :01:04. | :01:07. | |
may face a legal fall-out. Late last night the US government | :01:07. | :01:11. | |
announced it plans to file a lawsuit against Standard and Poor's. | :01:11. | :01:17. | |
It is accusing them of giving top recommendations to certain mortgage | :01:17. | :01:21. | |
products when they knew that they were not a safe investment. It is | :01:21. | :01:25. | |
argued that the ratings encourage financial institutions around the | :01:25. | :01:33. | |
world to buy and sell what proved to be toxic financial products. | :01:33. | :01:38. | |
Since 2007, many questions have been asked about the role of the | :01:38. | :01:42. | |
crowded regions agencies, particularly what they played in | :01:42. | :01:47. | |
creating the housing bubble. These agencies have a key function in the | :01:47. | :01:53. | |
financial industry. Their job is essentially to assess the | :01:53. | :01:57. | |
creditworthiness of bonds for companies and even governments. As | :01:57. | :02:06. | |
we now know, in many cases they are potentially responsible for | :02:07. | :02:11. | |
fuelling the financial crisis. The US government is expected to file a | :02:11. | :02:15. | |
civil lawsuit against Standard and Poor's and the model it used to | :02:15. | :02:19. | |
calculate its ratings for mortgage bonds. Standard and Poor's says | :02:19. | :02:23. | |
that it denies any wrongdoing and that any lawsuit would be without | :02:23. | :02:28. | |
factual or legal merit. But of course, many will be watching this | :02:28. | :02:32. | |
closely as if the government's first action against a ratings | :02:33. | :02:38. | |
agency rated to his behaviour during the financial crisis. | :02:38. | :02:45. | |
More analysis from market strategist at canter index. Five | :02:45. | :02:51. | |
years on, a lawsuit happening. Your take on these events? A hardly | :02:51. | :02:56. | |
surprising. When you cast your mind back five years ago, the crisis and | :02:56. | :03:05. | |
recession really came from the analysis of mortgages. Traders and | :03:05. | :03:08. | |
banks and credit ratings managers within the banks are very reliant | :03:08. | :03:14. | |
on this information. Especially from three agencies. Standard and | :03:14. | :03:19. | |
Poor's, Fitch and Moody's. They are expected to provide the rating and | :03:19. | :03:26. | |
quality. Particularly at the troublekph level. -- trouble they | :03:26. | :03:32. | |
level. Everybody looks for excuses. Depressed people who came under the | :03:32. | :03:39. | |
hammer or was of course the ratings agencies. They are pretty small. | :03:39. | :03:45. | |
When you think of the huge, trillions of trillions of dollars | :03:45. | :03:50. | |
of global debt, to be reliant upon an agency is like asking Libor to | :03:50. | :03:56. | |
be reliant on the British banks. their job is to say whether a | :03:56. | :04:00. | |
product is safe and whether the rating is good. They gave good | :04:00. | :04:05. | |
ratings to the subprime mortgage products. If you run expert and | :04:05. | :04:08. | |
spent a long time researching them, perhaps you would think they would | :04:08. | :04:13. | |
think, no, no, No This is not a good product. Many would say they | :04:13. | :04:20. | |
are not in the -- are in the pockets of clients. But I do not | :04:20. | :04:25. | |
think the role of the ratings agency is powerful enough. If the | :04:26. | :04:29. | |
Department of Justice and other people are successful in are suing | :04:29. | :04:33. | |
these people, companies who own these things are not big enough to | :04:33. | :04:39. | |
be able to cope with it. It is like everything else. If somebody does | :04:39. | :04:42. | |
not tell you the information that you need correctly, it is difficult | :04:42. | :04:48. | |
for those companies to assess. But the information that was imparted | :04:48. | :04:52. | |
around the world was hopeless. There is no other word. Absolutely | :04:52. | :04:59. | |
inadequate. This story is in today's papers. We will talk about | :04:59. | :05:03. | |
it later. As well as the other stories in the papers today. That | :05:03. | :05:07. | |
is later on. Taking a look at some more business stories. | :05:07. | :05:12. | |
Once a giant in the Our World industry, BP has spent the past few | :05:12. | :05:16. | |
years selling billions of dollars of assets to pay for its part in | :05:16. | :05:21. | |
the 2010 Our World spill in the Gulf of Mexico. It spent some $24 | :05:21. | :05:27. | |
billion on clean-up and compensation. Later today it is | :05:27. | :05:31. | |
expected to report a 20% drop in profits in the 4th quarter of last | :05:31. | :05:36. | |
year. The company needs to come up with a new strategic focus if it | :05:36. | :05:43. | |
hopes to rebuild itself. BP estimates that it will | :05:43. | :05:46. | |
eventually spend $42 billion on cleaning up after the disaster. | :05:46. | :05:52. | |
Paying compensation claims and findings for pollution. To raise | :05:52. | :05:57. | |
cash, it has sold off assets. Those are profits. It is thought they | :05:57. | :06:01. | |
will be 20% lower than they were a year ago. The disaster has left BP | :06:01. | :06:08. | |
a shadow of his former self. Five years ago it was worth $212 billion. | :06:08. | :06:13. | |
It was one of the world's biggest energy firms. Now it is worth only | :06:13. | :06:23. | |
$141 billion. It is now chad -- second tier. The strategy is shrewd | :06:23. | :06:30. | |
to grow. They have done the shrink part of it. There will not be | :06:30. | :06:34. | |
significant growth in production this year. We could start to see | :06:34. | :06:40. | |
some of the benefits of the strategy in 2014. And how can BP | :06:40. | :06:46. | |
rebuild itself as an international oil major? It does not have the | :06:46. | :06:54. | |
cash to do so. But what it has to do -- done is produce a lot of | :06:54. | :07:02. | |
exploration licences. Brazil, Australia and India. Developing | :07:02. | :07:09. | |
deep water oil prospects. That will set us up for the long-term. Given | :07:09. | :07:13. | |
that its emphasis has been on rebuilding the reputation for | :07:13. | :07:19. | |
safety, let us hope that will stand it in good stead. BP also has high | :07:19. | :07:24. | |
hopes in Russia, which has agreed to take a 20% stake in a national | :07:24. | :07:32. | |
oil firm. The deal is due to be sold next year. BP hopes this will | :07:32. | :07:36. | |
lead to more business in Russia. But it is Russia's government that | :07:36. | :07:40. | |
will decide how much it can do there. So much depends on whether | :07:40. | :07:45. | |
the executives can keep in with the rulers. | :07:45. | :07:51. | |
Taking a look at it company that had a good year in 2012. It was | :07:51. | :07:54. | |
good what theatre. It rebounded strongly from the previous year, | :07:54. | :07:59. | |
when it was hit by the tragic earthquake in Japan. In the hour, | :07:59. | :08:06. | |
it should report its latest earnings. We have not quite got the | :08:06. | :08:16. | |
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numbers yet. What are they expected to say? The strong rebound is a | :08:18. | :08:22. | |
sign that it has reclaimed the title of the world's largest auto | :08:22. | :08:27. | |
maker from General Motors. Sales are said to drive Toyota's earnings | :08:27. | :08:33. | |
today. China, the world's largest auto market was a big problem. But | :08:33. | :08:38. | |
sales started to pick up in January. North America continues to be a | :08:38. | :08:45. | |
bright spot. Sales topped 2.2 million units in the US last year. | :08:45. | :08:50. | |
Several models continue to be extremely popular with American | :08:50. | :08:56. | |
buyers. China is still a weak spot. It is down 15% amid tensions | :08:56. | :09:04. | |
between Japan and China over the islands. We have seen a turnaround. | :09:05. | :09:11. | |
Sales rose. 23.5 % gain compared to a year ago. The first rise since | :09:11. | :09:18. | |
June. If you are talking about Rio de's rivals, the likes of Nissan | :09:18. | :09:23. | |
and Honda, they have been recovering since October but have | :09:23. | :09:27. | |
not yet regained prior levels. In their bid to regain their leading | :09:27. | :09:31. | |
position, these Japanese companies have taken a series of measures in | :09:31. | :09:36. | |
recent months, including offering larger discounts on new cars and | :09:36. | :09:40. | |
compensation for owners whose cars were damaged during protests during | :09:40. | :09:47. | |
the territorial dispute. We will take a look at the numbers | :09:47. | :09:56. | |
when we get them. Time to take a look at the markets. I have to save, | :09:56. | :10:00. | |
the eurozone fear factor has returned in a major way. We are | :10:00. | :10:05. | |
seeing a bit of a sell-off. The interest on debt in Spain and Italy | :10:05. | :10:12. |