:00:02. > :00:12.infection. Those are the latest headlines.
:00:12. > :00:24.
:00:24. > :00:30.Central bank Chiefs blame investors for market turmoil as they herald
:00:30. > :00:34.the end of easy money in China and the US.
:00:34. > :00:44.Brazil's President unveils a referendum and big spending plans
:00:44. > :00:46.
:00:46. > :00:51.after days of protests throughout the country.
:00:51. > :00:55.In just a moment we will have more on those protests in Brazil, but
:00:55. > :01:00.first this our one of America's top central bankers has called them
:01:00. > :01:05.feral hogs, investors to risk causing turmoil in the financial
:01:05. > :01:08.markets. Last week they sparked a sell-off around the world and on
:01:08. > :01:12.Monday Shanghai sort of -- Shanghai's stock market was hit by
:01:12. > :01:15.the sharpest fall for four years. The violent reactions followed
:01:15. > :01:20.signals from the US and China but the era of cheap and plentiful
:01:20. > :01:26.money that followed the financial crisis is now drawing to an end.
:01:26. > :01:32.Our correspondent has the latest from Shanghai. What is happening on
:01:32. > :01:40.the markets in China today? More pain following those large
:01:40. > :01:43.Woolworths yesterday -- those large falls yesterday. The market is
:01:43. > :01:49.definitely seeing and reading things more and more Cloverleaf
:01:49. > :01:53.day-by-day. This is now the 5th straight day of falls on the
:01:53. > :01:56.Shanghai composite benchmark index. What triggered this last week were
:01:56. > :02:01.these reports of a credit crunch, China's very own version of what
:02:01. > :02:09.happened during the financial crisis a few years ago. There are
:02:09. > :02:14.headlines today talking of China's Frankenstein economy. The shock
:02:14. > :02:18.last week that China now may be ending the Iraq of easy money,
:02:18. > :02:24.pouring in liquidity and following the shock that it may not be able
:02:24. > :02:28.to. It cannot wean its economy of the supply of easy money. All this
:02:28. > :02:32.really highlighting the very difficult position that China's
:02:32. > :02:37.economic policy makers are now in. As you say, the central bank
:02:37. > :02:41.sending out this clear message that the era of cheap money is now over.
:02:41. > :02:49.But his is also part of a plan to try and read out these poorly-
:02:49. > :02:55.performing days in China? The so- called shadow banking industry?
:02:55. > :02:57.Everybody now recognises that there is a real risk. China's credit
:02:57. > :03:03.bubble has grown up to an extraordinary level over the last
:03:03. > :03:07.five years. Much of it is off balance sheet in the shadow banking
:03:07. > :03:11.section. People have been saying for a long time that it is very
:03:11. > :03:20.difficult to assess the real risk. Nobody can really have a clear idea
:03:20. > :03:25.of the quantity of Credit but also the quality of it as well. It was
:03:25. > :03:30.that sort of accounting declared debt being shifted to places where
:03:30. > :03:34.it was much harder to get a sense of it and it caused the global
:03:34. > :03:38.financial crisis. People are beginning to worry that we could
:03:38. > :03:42.see something similar unwinding here in China. The government is
:03:42. > :03:49.trying to get on top of it. It is making that very clean some of its
:03:49. > :03:52.policy statements. The difficult thing is that it is the model of
:03:52. > :03:56.China's economic growth. Pouring big money into infrastructure
:03:56. > :04:01.projects has kept the economy ticking along. They have to move
:04:01. > :04:04.into something more sustainable, Aiken -- an economy based on
:04:04. > :04:11.consumer spending for example. The transition will be difficult and
:04:11. > :04:21.painful. It will be very pain on the market does continue
:04:21. > :04:21.
:04:21. > :04:26.Let's move on to another of the top stories. One of the world's most
:04:27. > :04:31.famous gun makers access it has been a record year. Smith and
:04:31. > :04:34.Wesson is expected to report bumper profits late on Tuesday, but
:04:34. > :04:44.renewed calls for stricter gun legislation in the US could make
:04:44. > :04:48.
:04:48. > :04:52.the success short-lived. During -- this man runs this New
:04:52. > :04:58.York City gun range. They is is a little bit newer. It is the 1911
:04:58. > :05:02.series. More less designed to be like a government weapon. They also
:05:02. > :05:07.sell guns. This been more among their more popular brand. People
:05:07. > :05:17.know the names to some Western and they trusted. These are definitely
:05:17. > :05:24.police officers use them. It is not just Smith and Wesson that is seen
:05:25. > :05:28.record profits. Interest in guns is on the rise. In 2012, more than 19
:05:28. > :05:38.million people applied for a background check to purchase a gun
:05:38. > :05:38.
:05:38. > :05:42.here in the US. That is an increase That despite the shootings at a
:05:42. > :05:47.cinema in the aura Colorado last July. And an elementary school in
:05:47. > :05:51.Newtown, Connecticut last December. Since then the Obama Administration
:05:51. > :05:55.has repeatedly called for stricter gun legislation. If you want to buy
:05:55. > :05:58.a gun, whether it is from a licensed dealer or a private seller,
:05:58. > :06:04.you should at least have to show you're not a Phelan or somebody
:06:04. > :06:09.legally prohibited from buying one. This is common sense. The threat of
:06:09. > :06:13.tougher legislation doesn't appear to be harming gun makers. We have
:06:13. > :06:18.seen this before. Think about tobacco. There has been all kinds
:06:18. > :06:21.of threats about tobacco and these are still among the most probable
:06:21. > :06:27.companies in the market. While it might have the stock price, they
:06:27. > :06:35.are making lots of money in terms of cashflow and economic profit
:06:35. > :06:39.from revenue. We're Americans. This country was founded upon the gun.
:06:39. > :06:45.It is another item that we like to have. It is our right to have
:06:45. > :06:53.firearms. With so many Americans believing gun ownership is a right,
:06:53. > :06:58.companies like Smith and Wesson will always have customers. The
:06:58. > :07:03.President of Brazil has unveiled plans for a $23 billion programme
:07:03. > :07:06.to improve public transport and a referendum on political reform.
:07:06. > :07:10.Dilma Rousseff may be announced that late on Monday following a day
:07:10. > :07:15.of proof -- following days of protests across the country.
:07:15. > :07:25.Brazilians are angry about the escalating costs of hosting the
:07:25. > :07:30.
:07:30. > :07:35.football World Club and the Olympics. We seem to have something
:07:35. > :07:40.of a contradiction here. Presidential elections coming up
:07:40. > :07:44.next year in Brazil. On the one hand, the President is promising to
:07:44. > :07:48.cut spending and yet here she is promising to pump more money into
:07:48. > :07:53.the public transport systems and infrastructure across Brazil. Matej
:07:53. > :07:59.Vanko I think the President has put herself in a difficult position.,
:07:59. > :08:03.one end she has unveiled this pact which includes increasing the
:08:03. > :08:09.amount of spending for the transport sector, but on the other
:08:09. > :08:14.hand she has also promised fiscal responsibility and controlling
:08:14. > :08:19.inflation. In 2014, when elections come in, you expect the Government
:08:19. > :08:23.to increase public spending and that would have an impact on
:08:23. > :08:28.inflation. It is something that would be very difficult for the
:08:28. > :08:35.government to balance. Of all, the key issue with this proposal that
:08:35. > :08:42.she made yesterday is that she would also need to deliver fast.
:08:42. > :08:46.The President proposed a referendum for the calling of a constituent
:08:46. > :08:52.assembly, which in theory will gather all the concerns of the
:08:52. > :08:57.protesters, including corruption, transparency and better spending
:08:57. > :09:00.from the Government. The problem is this will need to go through
:09:00. > :09:04.Congress and the President doesn't manage to get disapproved in
:09:04. > :09:07.Congress and if this resident -- referendum is not organised before
:09:08. > :09:15.the elections, it could look as if she is not in control of the
:09:15. > :09:19.proposals she is making. For her to get through, she would need to pass
:09:19. > :09:25.is very fast. All of these proposals really need to be seen in
:09:25. > :09:33.the political concepts of these are looming elections in 2014. Here is
:09:33. > :09:38.what -- is what she is putting on the table what Brazil needs?
:09:38. > :09:42.Definitely. Infrastructure bottlenecks has been one of the
:09:42. > :09:46.main constraints for economic growth in Brazil. There are not and
:09:46. > :09:54.the problems related to public transport, but also a key shortages
:09:54. > :10:00.in terms of highways, ports. One of the big problems is there are
:10:00. > :10:08.several on paved roads in Brazil and this is what heavy taxation,
:10:08. > :10:18.bureaucratic bottlenecks. And the issue of corruption. corruption is
:10:18. > :10:21.That's all from me. I think we have That's all from me. I think we have
:10:22. > :10:26.a quick look at the market for you now. This is the view in Asia at
:10:27. > :10:29.the moment, as we were saying. The Chinese market and did their