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sanctions. Those are the latest headlines from BBC World News. Time | :00:02. | :00:12. | |
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now for the money news with Sally Hugo Chavez dies. Be transformed | :00:23. | :00:28. | |
Venezuela's economy, what next for the oil-rich state? -- heat. | :00:28. | :00:32. | |
Sluggish growth, persistent unemployment and a political | :00:32. | :00:42. | |
:00:42. | :00:47. | ||
deadlock. But US shares still hit a Welcome, you're with World Business | :00:47. | :00:53. | |
Report. I'm Sally Bundock. Also in the programme, we're going to look | :00:53. | :00:57. | |
at a Sharp's shares, their rising sharply on news of a white knight | :00:57. | :01:03. | |
in the wings. -- they are. As you've been hearing, Venezuelan | :01:03. | :01:06. | |
President Hugo Chavez has died after a long battle with cancer. | :01:06. | :01:11. | |
During more than 14 years in office he transformed Venezuela into a | :01:11. | :01:15. | |
socialist state. He was fortunate to be in power during a surge in | :01:15. | :01:20. | |
oil prices. When he took office prices for Venezuelan crude were | :01:20. | :01:25. | |
less than $9 a barrel and surged more than ten times that to around | :01:25. | :01:30. | |
$126 a barrel in 2008. Hugo Chavez took control of the oil fields more | :01:30. | :01:35. | |
than a decade ago and that paid for a nationalisation fries seeing the | :01:35. | :01:45. | |
:01:45. | :01:45. | ||
state take control of almost every industry -- drive. I'm joined by | :01:45. | :01:50. | |
Neil Atkinson, who worked for Venezuela's main oil company, for | :01:50. | :01:58. | |
19 years. Thank you for joining us. You have an insight into his legacy. | :01:58. | :02:02. | |
Been your introduction you hit one of the nails on the head, when | :02:02. | :02:07. | |
Chavez came to power in 1999 the oil price was around $10 a barrel - | :02:07. | :02:13. | |
- in. A decade later it got to nearly $150 a barrel. That huge | :02:13. | :02:17. | |
increase in wealth, that huge increase in oil revenues, gave | :02:17. | :02:21. | |
Chavez the opportunity to basically spray money around Venezuela's | :02:21. | :02:25. | |
initially giving money to poorer sections of society, to support | :02:25. | :02:29. | |
projects which clearly were necessary and were needed, but as | :02:29. | :02:34. | |
the years went by it became increasingly obvious that the | :02:34. | :02:38. | |
watchwords of the Chavez years were basically waste, incompetence and | :02:38. | :02:42. | |
corruption. Sadly when you go to Venezuela today and you look at the | :02:42. | :02:46. | |
physical infrastructure of the country, you read about the quite | :02:46. | :02:50. | |
extraordinary crime rate. It's the murder capital of the world these | :02:50. | :02:54. | |
days. And you mentioned the lack of food staples in the shops, the | :02:54. | :03:00. | |
economic legacy of Hugo Chavez is actually pretty sorry. When you | :03:00. | :03:06. | |
left the company, you say you left a company in chaos. It was a | :03:06. | :03:12. | |
smaller version of the big picture. One of the criticisms that was made | :03:12. | :03:16. | |
about the company was that it was a state within a state. In some | :03:16. | :03:20. | |
respects it was because the national oil company prior to the | :03:20. | :03:25. | |
Chavez era was by any standards a very well run company, especially | :03:25. | :03:29. | |
by the standards of national oil companies. That time there was a | :03:29. | :03:32. | |
major investment programme planned which would have increased | :03:32. | :03:37. | |
Venezuela's oil and gas production capacity, and Venezuela could have | :03:37. | :03:41. | |
been producing twice the amount it does today. Since Hugo Chavez came | :03:41. | :03:47. | |
to power, you could almost say it has been looted. Oil production in | :03:47. | :03:50. | |
Venezuela has been falling in recent years, and certainly | :03:50. | :03:56. | |
struggling to keep up. What now? Obviously Hugo Chavez has died, he | :03:56. | :04:00. | |
has this legacy that he's left behind and he's been in power for a | :04:00. | :04:04. | |
very long time. It will be quite a job, won't it, to turn things | :04:05. | :04:10. | |
around and change things? Who's in the wings to take over. Buys | :04:10. | :04:14. | |
President Maduro is the favourite to be the ruling party candidate -- | :04:14. | :04:18. | |
vice-president. Is difficult to see how Chavez can be replaced. -- it's | :04:19. | :04:24. | |
difficult. This is like the : phenomenon in Argentina. It will be | :04:24. | :04:29. | |
hard for somebody to live up to Chavez's charisma, and his | :04:29. | :04:33. | |
undeniable hold on the affections of a large section of Venezuelan | :04:33. | :04:37. | |
society. We know we will find as the election comes and goes and the | :04:37. | :04:41. | |
months unfold we will have to look to the army as one of the key | :04:41. | :04:48. | |
indicators as to where the direction will be. It is a story | :04:48. | :04:53. | |
and situation that we will keep our eyes on on World Business Report. | :04:53. | :04:57. | |
The Dow Jones industrial average closed at an all-time high on | :04:57. | :05:03. | |
Tuesday. The main share market beat the previous record set in October | :05:03. | :05:07. | |
2007 before the global economic downturn. Given the current | :05:07. | :05:11. | |
political stalemate over the budget in the US and the slowness of the | :05:11. | :05:18. | |
recovery, why such exuberance? Michelle has more from New York. | :05:18. | :05:24. | |
From the opening bell... stocks roared ahead. The Dow Jones | :05:24. | :05:26. | |
Industrial Average, which tracks the performance of some of the | :05:26. | :05:32. | |
biggest names in corporate America, climbed more than 125 points during | :05:32. | :05:37. | |
the day to close at a record high. A huge achievement after the losses | :05:37. | :05:41. | |
triggered by the financial crisis. Psychologically it's very important. | :05:41. | :05:46. | |
It's an indicator to the rest of the world that the equities in the | :05:46. | :05:49. | |
stock market is a safe thing. You need to put your money to work in | :05:49. | :05:55. | |
the stock market. Investors were cheered by a statements about | :05:55. | :06:00. | |
spending from the Chinese and a positive report on America's | :06:00. | :06:03. | |
service sector -- by statements. There's no doubt Wall Street has | :06:03. | :06:07. | |
come a long way to reach this historic day. From the credit | :06:07. | :06:11. | |
crisis to the collapse of Leeman brothers and to Europe's debt | :06:11. | :06:18. | |
crisis. -- Lehman Brothers. But the optimism shared inside his building | :06:18. | :06:23. | |
is not shared by most Americans. With all the dramas people in this | :06:23. | :06:28. | |
Manhattan shopping district were not feeling too celebratory. | :06:28. | :06:35. | |
I'm still poor. I have no money. It's very hard. Specially with jobs, | :06:35. | :06:40. | |
it's very hard to get a job. -- especially. Do you think the | :06:40. | :06:46. | |
economy is getting better? No. Jobs are still hard at the moment. | :06:46. | :06:51. | |
Unemployment is up. It's definitely not getting better. I'm a retailer, | :06:51. | :06:55. | |
it's turning round but very slowly. I'm in the wine and spirits | :06:55. | :06:59. | |
business, it's turning round very slowly but I'm happy because I | :06:59. | :07:03. | |
making lots in the stock market. might want to thank those inside | :07:03. | :07:07. | |
this building for the strength of the market. The unusual steps taken | :07:07. | :07:11. | |
by America's central bank have helped to boost stock market prices. | :07:11. | :07:15. | |
The question now is will the recovery be strong enough to | :07:15. | :07:25. | |
:07:25. | :07:25. | ||
maintain those games once these support is withdrawn? -- games. | :07:25. | :07:31. | |
Thank you for joining us. What do you make of this, given the state | :07:31. | :07:35. | |
of the economy in the US these markets are out of control, aren't | :07:35. | :07:41. | |
they? To a certain degree. Some people would even say the prices | :07:41. | :07:47. | |
could even be artificial. I would say that the biggest driver behind | :07:47. | :07:51. | |
this recovery on Wall Street has been the continued central bank | :07:51. | :07:54. | |
activism by the Federal Reserve's by supporting the economy through | :07:55. | :08:00. | |
increased stimulus -- Federal Reserve. And the ultra-low rates | :08:00. | :08:04. | |
keeping a favourable environment for investors, to increase their | :08:04. | :08:09. | |
appetite for risk. But as you said it is out of control. It doesn't | :08:09. | :08:15. | |
match up with the US economy. It is a slow, gradual recovery in place. | :08:15. | :08:20. | |
Some could say it may even stall at some point given the US sequesters, | :08:20. | :08:25. | |
the spending cuts. That's one of the big concerns go wing-forward. | :08:25. | :08:30. | |
Whenever we see these record highs being hit and markets rallying in | :08:30. | :08:37. | |
this way, we think just around the corner there will be a big reaction. | :08:37. | :08:41. | |
-- going forward. Absolutely. Some could say the sequester itself | :08:41. | :08:45. | |
could be a positive catalyst because the Federal Reserve have | :08:46. | :08:53. | |
pledged to keep an accommodative rates remain stubbornly high. If | :08:53. | :09:00. | |
the US economy stalls unemployment will remain very high, and that | :09:00. | :09:08. | |
would be positive. Markets. -- positive. Markets. The problem is | :09:08. | :09:16. | |
Europe and China. So there are issues going forward, though. I | :09:16. | :09:20. | |
think investors should celebrate right now. Are right, thank you for | :09:20. | :09:25. | |
joining us. -- all right. Australia's economy | :09:25. | :09:29. | |
continues to grow at a healthy rate in the final three months of last | :09:29. | :09:36. | |
year. It crewman at an annual rate of 3.1%. -- it grew at. Australia's | :09:36. | :09:41. | |
also seemed growing demand for its farm products like beef. -- also | :09:41. | :09:47. | |
seen. Shares in a Sharp surge in Tokyo today. At one stage they were | :09:48. | :09:53. | |
up almost 20% -- in Sharpe. They are potentially in talks with | :09:53. | :10:00. | |
Samsung over a future investments - - in Shah. -- over future | :10:00. | :10:05. | |
investments. -- in Sharp. Let's show you those numbers for the | :10:05. | :10:10. | |
markets. Let's enjoy it while it lasts, but a cautionary tale. | :10:10. | :10:14. |